Bluestone Announces Additional Drill Results

Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company" – http://www.commodity-tv.net/c/search_adv/?v=298837 ) is pleased to announce additional infill drill results from resource conversion drilling underway at its high-grade Cerro Blanco Gold project. The focus of the ongoing infill drill program is to upgrade the Inferred Resources into Measured and Indicated Resources.

Bluestone recently announced results of a Feasibility Study on the high-grade Cerro Blanco Gold project (see press release January 29, 2019) where one of the principle recommendations for optimizing and further enhancing the project was through potential conversion of a portion of the 360,000 ounces of Inferred Resources to Measured and Indicated Resources through infill drilling (currently ongoing), which will be followed by an updated mineral resource and mine plan.

Two LM-75 diamond drill rigs are currently situated within the North Zone of the Cerro Blanco underground workings and are targeting specific veins in the upper part of the Cerro Blanco resource that can be converted to the Indicated Resource category by infill drilling.

The primary focus of the program is to upgrade the Inferred Resources identified during the previous infill drill program completed in 2018. In addition, this program is also designed to define new resources along known veins in the mine plan that extend outside of the current resource envelope.

David Cass, Vice President of Exploration commented, “The infill drilling program has been designed to strategically target key veins with upgrading resource categories. To date, the program has had an excellent success rate with every key intercept expected to have a positive impact on future project economics, with intercepted veins showing remarkable consistency and continuity, validated by optimum hole orientations reflected in the drilled true widths.”

Hole UGCB18-109 and UGCB18-110 were both drilled from the same underground platform at a positive angle (+35 and +51 degrees respectively). The principle objective of these holes was conversion or extension of veins VN_01, 02 and 03 from Inferred to Indicated Resources. UGCB18-109 intercepted all targeted veins as planned with VN_02 assaying 3.3 meters at 27.9 g/t. Hole UGCB18-110 intersected veins VN_02 and VN_03 with the former assaying 2.0 meters at 10 g/t Au (see table).

Additionally, a new vein, located in the footwall of vein VN_01 was intercepted at 33.7 meters in both holes ( 1.0 meter at 8.5 g/t Au and 1.0 meter at 19.9 g/t Au) and correlates with intercepts drilled in holes UGCB18-101 and UGCB18-106 that assayed 1.95 meters at 12.6 g/t Au and 1.0 meter at 12.4 g/t Au respectively (see press releases January 9th and January 24th, 2019). This new vein is outside of the current resource and will be referred to as VN_18 in future updated resource models.

Drilling is continuing and further results will be reported as received. A plan view showing drill hole locations can be accessed by clicking HERE.

Quality Analysis and Quality Control

Assay results listed within this release were performed by Inspectorate Laboratories (“Inspectorate”), a division of Bureau Veritas, which are ISO 17025 accredited laboratories.  Logging and sampling are undertaken on site at Cerro Blanco by Company personnel under a QA/QC protocol developed by Bluestone. Samples are transported in security-sealed bags to Inspectorate, Guatemala City, Guatemala, for sample preparation.  Sample pulps are shipped to Inspectorate Laboratories in Vancouver, BC, Canada or Reno, NV, USA, and assayed using industry-standard assay techniques for gold and silver. Gold and silver were analyzed by a 30-gram charge with atomic absorption and/or gravimetric finish for values exceeding 5 g/t Au and 100 g/t Ag. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material, and replicate samples. Quality control is further assured by Bluestone’s QA/QC program, which involves the insertion of blind certified reference materials (standards) and field duplicates into the sample stream to independently assess analytical precision and accuracy of each batch of samples as they are received from the laboratory.  A selection of samples is submitted to ALS Chemex Laboratories in Vancouver for check analysis and additional quality control.

Qualified Person

David Cass, P.Geo., Vice President Exploration, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and verified that the technical information set out above in this news release is accurate and therefore approves this written disclosure of the technical information.

About Bluestone Resources

Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned Cerro Blanco Gold and Mita Geothermal projects located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.

Forward Looking Statements

This press release contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”).  All statements, other than statements of historical fact, that address activities, events or developments that Bluestone Resources Inc. (“Bluestone” or the “Company”) believes, expects or anticipates will or may occur in the future including, without limitation: the conversion of the inferred mineral resources; increasing the amount of measured mineral and indicated mineral resources; the proposed timeline and benefits of further drilling; the proposed timeline and benefits of the Feasibility Study; statements about the Company’s plans for its mineral properties; Bluestone’s business strategy, plans and outlook; the future financial or operating performance of Bluestone; capital expenditures, corporate general and administration expenses and exploration and development expenses; expected working capital requirements; the future financial estimates of the Cerro Blanco Project economics, including estimates of capital costs of constructing mine facilities and bringing a mine into production and of sustaining capital costs, estimates of operating costs and total costs, net present value and economic returns; proposed production timelines and rates; funding availability; resource estimates; and future exploration and operating plans are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to Bluestone and often use words such as “expects”, “plans”, “anticipates”, “estimates”, “intends”, “may” or variations thereof or the negative of any of these terms.

All forward-looking statements are made based on the Company’s current beliefs as well as various assumptions made by them and information currently available to them.  Generally, these assumptions include, among others: the ability of Bluestone to carry on exploration and development activities; the price of gold, silver and other metals; there being no material variations in the current tax and regulatory environment; the exchange rates among the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent with current levels; the presence of and continuity of metals at the Cerro Blanco Project at estimated grades; the availability of personnel, machinery and equipment at estimated prices and within estimated delivery times; metals sales prices and exchange rates assumed; appropriate discount rates applied to the cash flows in economic analyses; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable financing; anticipated mining losses and dilution; success in realizing proposed operations; anticipated timelines for community consultations and the impact of those consultations on the regulatory approval process.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Bluestone. Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; risks and uncertainties related to expected production rates, timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain or maintain necessary licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining development activities; risks and uncertainties related to the accuracy of mineral resource estimates and estimates of future production, future cash flow, total costs of production and diminishing quantities or grades of mineral resources; risks associated with geopolitical uncertainty and political and economic instability in Guatemala; risks and uncertainties related to interruptions in production; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; uncertain political and economic environments and relationships with local communities; variations in rates of recovery and extraction; developments in world metals markets; risks related to fluctuations in currency exchange rates; as well as those factors discussed under “Risk Factors” in the Company’s Amended and Restated Annual Information Form.

Any forward-looking statement speaks only as of the date on which it was made, and except as may be required by applicable securities laws, Bluestone disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Bluestone believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.  There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Non-IFRS Financial Performance Measures

The Company has included certain non-International Financial Reporting Standards (“IFRS”) measures in this new release. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

All-in sustaining costs

The Company believes that all-in sustaining costs (“AISC”) more fully defines the total costs associated with producing gold.

The Company calculates AISC as the sum of refining costs, third party royalties, site operating costs, sustaining capital costs and closure capital costs all divided by the gold ounces sold to arrive at a per ounce amount. Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus non-sustaining capital.

Total cash costs

Total cash costs is a common financial performance measure in the gold mining industry but has no standard meaning. The Company reports total cash costs on a gold ounce sold basis. The Company believes that, in addition to measures prepared in accordance with IFRS, such as revenue, certain investors can use this information to evaluate the Company’s performance and ability to generate operating earnings and cash flow from its mining operations. Management uses this metric as an important tool to monitor operating cost performance.

Total cash costs include (cost of sales such as mining, processing, maintenance and site administration, royalties, selling costs and by-product credits) to arrive at total cash costs per ounce of gold sold. Other companies may calculate this measure differently.

AISC and total cash costs reconciliation

ASIC and total cash costs are calculated based on the definitions published by the World Gold Council (“WGC”) (a market development organization for the gold industry comprised of and funded by 18 gold mining companies from around the world). The WGC is not a regulatory organization.

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Uranium Energy Corp Outlines Development Plans in Preparation for the Mid-2019 U.S. Government National Security Action on Uranium Imports

Uranium Energy Corp (NYSE American: UEC, the “Company” or “UEC” – http://www.commodity-tv.net/c/search_adv/?v=298360) is pleased to provide the following letter to its shareholders from President and CEO, Amir Adnani.

Dear Shareholders,

2019 is lining up to be among the most eventful years in UEC’s 14-year history. The fundamental improvements in the uranium market appear likely to continue, following last year’s increase in the spot price to $29/lb. Additionally, the U.S. Government’s probe into foreign imports impacting domestic nuclear fuel cycle capabilities could be significant for the Company by accelerating demand for U.S. mined uranium.

With 98 operating reactors, the U.S. has the largest nuclear fleet in the world with annual requirements of about 45 million pounds of uranium per year.  In contrast, U.S. mines are projected to produce less than 400,000 pounds in 2019, not enough for even one reactor. 

The U.S. Government has launched an investigation into this over-dependence on foreign uranium as a national security matter and a final decision to enact U.S. quotas or other possible remedies is expected by mid-2019.  The potential for quotas would require a meaningful portion of U.S. demand to be supplied by domestic production, which could yield a premium for U.S. mined uranium. Fortunately, and as reported by the U.S. Geological Survey, there are abundant uranium resources that can be developed in states such as Wyoming and Texas.

In this context, we are prioritizing the advancement of our fully permitted Reno Creek ISR Project in Wyoming and development drilling at our Burke Hollow ISR Project in South Texas.  UEC has a potential U.S. production profile of 4 million pounds per year.  Reno Creek is permitted at 2 million pounds per year and our Hobson processing facility, the hub of our South Texas operations, has a capacity of 2 million pounds per year. UEC is ideally positioned to be part of an overall solution to promote growth in U.S. uranium mining with our environmentally friendly and low-cost in-situ recovery (ISR) projects.

Burke Hollow ISR Project – Advancing Development

UEC has made final preparations for the drilling and installation of monitoring wells at the proposed Production Area Authorization One (“PAA-1”) at the Burke Hollow ISR Project in Bee County, Texas. 

The Company has selected drilling and heavy equipment contractors with start-up planned for the beginning of March.  Initial plans include drilling approximately 20 holes to delineate several lightly-drilled areas for optimum monitor well ring design. The drill rigs will shift to drilling and installation of 120 monitor wells upon completion of the delineation holes. 

In 2013, UEC discovered uranium ore trends at the Burke Hollow Project, one of the only new discoveries in the U.S. over the past decade.  Resources at the project have increased with every drilling campaign, resulting in the delineation of a major uranium orebody which extends over 5 miles along its trend length.  To date, a 2.4-mile long mineralized trend has been defined, which will constitute the initial Production Area at Burke Hollow.  A large monitor well ring will encompass the proposed PAA-1, in accordance with regulatory requirements from the Texas Commission on Environmental Quality (“TCEQ”). 

Reno Creek Advancement – Largest Permitted, Undeveloped ISR Project in the U.S.

UEC is directing an independent Preliminary Feasibility Study (“PFS”) for its Reno Creek ISR project in order to expedite upcoming construction in advancing the project towards production.  The study will be accomplished in accordance with National Instrument 43-101 (“NI 43-101”) and its related guidelines and will be based on the recently updated NI 43-101 Resource Report announced in our January 15, 2019 press release.  That report estimates a Measured and Indicated mineral resource of 26 million pounds of uranium (“U3O8”) at a weighted average grade of 0.041% U3O8 contained within 32 million tons and an Inferred mineral resource of 1.49 million pounds U3O8 at a weighted average grade of 0.039% U3O8 contained within 1.92 million tons.*

The PFS will incorporate design criteria provided with UEC expertise and will be reviewed and supplemented with preliminary designs and cost estimates for project components from a qualified consulting engineering firm.

Uranium Market Improvement

Fundamentals in the uranium market are continuing to improve as we have reported over the last two years. One of the primary drivers has been the market price remaining below most producer’s production costs.  While prices have strengthened, this disequilibrium persists and is likely to continue being a strong driver supporting much higher prices. A direct result of this factor has been significant production cuts, resulting in more than 30 million pounds of annual production removed from the market since 2016.

In 2018, spot uranium prices rose about 20% year over year and more than 40% from last April.  Record transaction volume of more than 88 million pounds was reported in the spot market, almost 60% percent greater than the previous record established in 2011.  Producer buying has tripled since 2017 and the investment community has re-entered the market, taking large blocks of material out of circulation, enhancing the already bullish supply-demand picture. 

Global nuclear energy generation in 2018 returned to pre-Fukushima levels.  Meanwhile, long-term contracting by utilities remained suppressed, reaching a six-year low in 2018. This adds to the tightening demand coil that should be released as older term contracts roll out of supplier and utility portfolios and inventory is drawn down.  All these factors coupled with growing global demand bodes well for continued rebalancing and price appreciation in the uranium markets.

Government Investigation on National Security Impacts of Imported Uranium

For U.S. producers, uranium demand from U.S. utilities may become more robust as an outcome of the current national security investigation on uranium. This action was initiated as a result of the extreme dependency of the U.S. on imported uranium, with 2019 anticipated to show U.S. production at less than 1% of the nation’s reactor requirements.  The investigation is expected to result in a decision from the U.S. Government by mid-2019.  While no definitive outcome is clear at this point, a premium for U.S. mined uranium could easily evolve.

UEC remains actively engaged in industry discussions regarding the investigation and we will continue our efforts on Capitol Hill to revitalize the industry.  We meet regularly with bipartisan members of Congress, Committees, the White House and various government agencies to discuss matters relating to the U.S. uranium industry.  Several members of our senior management team are involved with this effort, including our Chairman, Spencer Abraham, former Secretary of Energy in the George W. Bush Administration.  Secretary Abraham wrote an Op-Ed article this past year published by USA Today, outlining the national security necessity for a strong domestic industry. This insightful article may be accessed at https://usat.ly/2PQfx3K.

Corporate Development Portfolio

A pillar of our three-prong strategy during the extended bear market in uranium has been to make accretive acquisitions.  As a result, the Company controls a pipeline of Resource and Preliminary Economic Assessment-stage projects in Arizona, Colorado, and Paraguay.*

In 2018, UEC was instrumental in the launch of Uranium Royalty Corp (“URC”) and is the largest shareholder, owning ~34% of this company. URC is the largest investor and a strategic partner of Yellow Cake PLC listed in London.  URC is working towards an IPO in 2019 and is seeking to emulate, with uranium, the very successful royalty and streaming business model that has emerged in the base and precious metals sectors.

The UEC portfolio also includes the Alto Parana Titanium Project in Paraguay, one of the highest-grade and largest undeveloped Ferro-Titanium deposits in the world (total Inferred resource has been estimated at 4.94 billion tonnes grading 7.41% titanium oxide and 23.6% iron oxide at a 6% TiO2 cut-off).*  While we are prioritizing capital expenditures for U.S. projects in the first half of 2019, we are also in planning phases to commission a new Preliminary Economic Assessment at Alto Parana as part of our monetization strategy.

As the year unfolds, we will provide additional perspective once the decisions associated with the U.S. Government’s investigation have been made. When the U.S. industry begins to ramp-up, it will need quality people, infrastructure, resources and permits, the four key ingredients that UEC already has in place. 

We appreciate your ongoing support of our long-term business strategy to become the leading U.S. uranium producer.  Please feel free to reach our Investor Relations department at 1-866-748-1030 or info@uraniumenergy.com with any questions or comments that you might have as the year develops. Visit our website at UraniumEnergy.com and follow us on Twitter @UraniumEnergy to keep current on all our activities.

Yours truly,

“Amir Adnani”

President & CEO

About Uranium Energy Corp

Uranium Energy Corp (UEC) is a U.S.-based uranium mining and exploration company.  In South Texas, the Company’s hub-and-spoke operations are anchored by the fully-licensed Hobson Processing Facility which is central to the Palangana, Burke Hollow and Goliad ISR projects.  In Wyoming, UEC controls the Reno Creek project which is the largest permitted, pre-construction ISR uranium project in the U.S.  Additionally, the Company controls a pipeline of uranium projects in Arizona, New Mexico and Paraguay, a uranium/vanadium project in Colorado and one of the highest-grade and largest undeveloped Ferro-Titanium deposits in the world, located in Paraguay.  The Company’s operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and was reviewed by Clyde L. Yancey, P.G., Vice President-Exploration for the Company, a Qualified Person under NI 43-101.

Safe Harbor Statement

*   The mineral resources referred to herein have been estimated in accordance with the definition standards on mineral resources of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101 and are not compliant with U.S. Securities and Exchange Commission (the “SEC”) Industry Guide 7 guidelines.  In addition, measured mineral resources, indicated mineral resources and inferred mineral resources, while recognized and required by Canadian regulations, are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Accordingly, we have not reported them in the United States. Investors are cautioned not to assume that any part or all of the mineral resources in these categories will ever be converted into mineral reserves. These terms have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. In particular, it should be noted that mineral resources which are not mineral reserves do not have demonstrated economic viability. It cannot be assumed that all or any part of measured mineral resources, indicated mineral resources or inferred mineral resources will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. Investors are cautioned not to assume that any part of the reported measured mineral resources, indicated mineral resources or inferred mineral resources referred to herein are economically or legally mineable.

Except for the statements of historical fact contained herein, the information presented in this letter constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this letter.

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Zinc One Announces Positive Initial Resource Estimate at Bongará Zinc Mine Project, Peru

Zinc One Resources Inc. (TSX-V: Z; OTC Markets: ZZZOF; Frankfurt: RH33 – “Zinc One” or the “Company” – http://www.commodity-tv.net/c/search_adv/?v=298394) announces the first National Instrument 43-101 (“NI 43-101”) Mineral Resource estimate for its Bongará Zinc Mine project in north-central Peru.  The estimate was prepared for the Company by Watts Griffis and McOuat Limited (“WGM”).  A supporting NI 43-101 technical report will be available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.zincone.com within 45 days of this release.

The estimate consists of an Indicated Mineral Resource of 812,000 tonnes averaging 18.9% Zn containing 339,000,000 lbs of Zn at a 10% Zn cut-off and an Inferred Mineral Resource of 1,339,000 tonnes averaging 16.8% Zn containing 496,000,000 lbs of Zn at a 10% Zn cut-off.

Greg Crowe, Director of Zinc One, stated, “This initial Mineral Resource estimate quantifies the amount of high-grade zinc in an area of known near-surface mineralization along a 1.4-kilometre trend. Further, geologic mapping and surface sampling confirms the potential of the larger Bongará Zinc Mine project to host additional significant zinc mineralization.   Overall, the area of the new mineral resource estimate occupies only a small area along the strike of eight kilometres of prospective stratigraphy.  In 2019, we plan to carry out additional drilling that includes upgrading the confidence level of the currently defined Inferred Mineral Resources and to expand the overall resource at nearby undrilled high-priority targets located between Mina Chica and Mina Grande Norte and northwest of Mina Chica at Campo Cielo.”

The Bongará Zinc Mine project contains an 8-kilometre trend with known near-surface, high grade zinc mineralization.  Very little systematic exploration has been completed along this trend, except for drilling at the Cristal Project (northwest end of the trend) that identified a body of high-grade zinc mineralization. This provides an exciting opportunity to discover zinc-rich deposits in future exploration campaigns.

The zinc mineralization at the Bongará Zinc Mine project is classified as a Mississippi Valley-type (“MVT”) deposit and is mostly hosted by strongly dolomitized brecciated limestones beds. The mineralization can also occur as tabular bodies with irregular boundaries, which is a characteristic of that mineralization encountered along the periphery of breccias, especially at Mina Chica. The original MVT sulphide mineralization has been oxidized and now occurs as hydrozincite (zinc-oxide mineral), smithsonite (zinc-carbonate mineral), hemimorphite (zinc-silicate mineral), and zinc-aluminum-iron silicates.  

The former Bongará Mine operated during 2007-08, successfully producing zinc from this type of mineralization using a Waelz kiln for processing.  The kiln does not require copious amounts of water and an electrical grid, and the waste product is slag that can be used as road material, among other things, thus precluding a permanent tailings storage facility and minimizing initial and sustaining capital outlays.

Qualified Persons

The technical content of this news release has been reviewed, verified and approved by Al Workman, P.Geo., senior geologist and Vice-President of WGM and John Reddick, P.Eng, senior WGM Associate resource modelling engineer, both Qualified Persons under National Instrument 43-101.  WGM is an independent firm of consulting geologists and engineers that have visited the project regularly since 2014.  WGM assisted Zinc One in designing, monitoring, and auditing its quality control program.

About Zinc One Resources Inc.

Zinc One’s key assets are the Bongará Zinc Mine Project and the Charlotte-Bongará Zinc Project in north-central Peru.  The Bongará Zinc Mine Project was in production from 2007 to 2008 but was closed due to the Global Financial Crisis and the concurrent decrease in the zinc price. Past production included >20% zinc grades and recoveries over 90% from surface and near-surface zinc-oxide mineralization. High-grade, zinc-oxide mineralization is known to outcrop between the mined area and the Charlotte-Bongará and Cristal Project areas, which are over six kilometres to the north-northwest and where past drilling also intercepted various near-surface zones with high-grade zinc as well. 

Additional Information

Monica Hamm
VP, Investor Relations
Zinc One Resources Inc.
Phone: (604) 683-0911
Email: mhamm@zincone.com
www.zincone.com

In Europe:
Swiss Resource Capital AG
Jochen Staiger
info@resource-capital.ch
www.resource-capital.ch

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Zinc One cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by many material factors, many of which are beyond their respective control. Such factors include, among other things: risks and uncertainties relating to Zinc One’s limited operating history, its proposed exploration and development activities on the Bongará Zinc Oxide Mine Project and the need to comply with environmental and governmental regulations.  Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Zinc One does not undertake to publicly update or revise forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Bluestone Announces Positive Feasibility Study at Cerro Blanco Gold Project – 34% After-Tax IRR and AISC of US$579/oz

Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company" – http://www.commodity-tv.net/c/search_adv/?v=298745 ) is pleased to announce the results of the Independent Feasibility Study (“Feasibility Study”) prepared in accordance with National Instrument 43-101 (“NI 43-101”) for its 100% owned high-grade Cerro Blanco Gold project (the “Project”). The Feasibility Study demonstrates that the Project represents a robust, rapid pay-back, high-grade underground mining operation.

Darren Klinck, President and CEO commented, “The Feasibility Study outlines a robust development-ready, underground gold mine with a modest capital expenditure demonstrating superior economics.  The mine plan supports the original conviction that the Project can be developed into a small footprint, low impact operation that will provide significant opportunities for local stakeholders and generate attractive returns for investors. Furthermore, over the next six months as we optimize the project and work to establish adequate project financing, we will see significant opportunity to continue with our objective to upgrade Inferred Resource ounces and then update the mine plan to incorporate potential meaningful mine life extension, further enhancing project economics.”

Feasibility Study Highlights

Unless otherwise indicated, all dollar amounts are stated in U.S dollars (“$”). Base case was completed at a gold price of $1,250/oz and a silver price of $18/oz.

  • Average annual production of 146,000 ounces gold over the first three years of production.
  • Average life of mine (“LOM”) all-in sustaining costs (“AISC”) of $579/oz (net credits), which would place the Project in the bottom end of the lowest quartile of the global cost curve.
  • Average annual free cash flow of $91 million (CAD$117 million) per year over the first three years of production.
  • After-tax internal rate of return (“IRR”) of 34%.
  • Net present value (“NPV”) of $241 million after-tax (CAD$309 million).
  • Initial capital of $196 million with an after-tax payback period of 2.1 years.
  • Life of mine production of approximately 902,000 ounces over 8-year mine life.
  • Proven & Probable Mineral Reserves of 940,000 ounces of gold and 3.6 million ounces of silver (3.4 million tonnes at 8.5 g/t Au and 32.2 g/t Ag). The Feasibility Study excludes an additional 357,000 ounces of Inferred Resources (1.4 million tonnes at 8.1 g/t Au and 23.6 g/t Ag).

“The Feasibility Study is a major milestone on the path to development for the Project. In a very short 18 months, we have assembled a terrific team in Guatemala and Canada, completed a significant amount of technical work, and delivered a Feasibility Study that demonstrates a materially de-risked project with attractive economics. Advancing the Cerro Blanco Project represents a tremendous opportunity to our many stakeholder groups including local communities in Guatemala, government partners, and our shareholders,” commented Darren Klinck, President and CEO.

A corporate video presentation discussing the Feasibility Study is available for viewing by clicking this LINK or by visiting the Bluestone website, www.bluestoneresources.ca.

Project Enhancement Opportunities

Although Bluestone considers the Feasibility Study as providing a robust basis for moving forward with attractive returns and payback, opportunities have been identified to further enhance the Project economics and optimize the engineering. The Company intends to focus on the following opportunities over the next six months in parallel with project financing initiatives:

  • Mine life extension through the potential conversion of a portion of the 360,000 ounces of Inferred Resources (per the press release dated September 11, 2018) to Measured and Indicated Resources through infill drilling (currently ongoing), followed by an updated mineral resource and mine plan.
  • Potential resource growth from step-out drilling along existing veins that extend beyond the current resource envelope (currently ongoing).
  • Identification of new high-grade veins during infill drilling program underway as illustrated in the press release dated January 9, 2019.
  • Further optimization of the mine plan and sequencing through basic engineering and trade-off study review.
  • Review opportunities to optimize backfilling assumptions including evaluating alternatives to paste fill which could reduce capital and operating expenditure.
  • Preliminary test work in evaluating the potential of using ore sorting technologies was very successful and highlighted an opportunity as a cost-effective method to help reduce potential dilution and enhance the production profile by allowing new areas of the orebody to be economically mined.

A drilling program is currently underway as announced on November 13, 2018 and ongoing results will be incorporated into an updated resource estimate in Q3 2019 followed by an updated Feasibility Study.

Cerro Blanco Feasibility Study

The Feasibility Study provides a compilation of the geological, engineering, and hydrology work performed by the previous owners between 1997 and 2017, as well as work undertaken by Bluestone. The results of the Feasibility Study incorporate the infrastructure in place, including 3.2 kilometers of underground development decline, fully functional water treatment plant, maintenance shops, warehouse and office facilities, and a total of 580 holes and over 128,000 meters of drilling.

Bluestone engaged a consortium of independent consultants, led by JDS Energy & Mining Inc., an international engineering firm with extensive experience in both the construction and operation of mining projects. The Feasibility Study was supported by additional leading consultants with expertise in various fields, including: Capuano Engineering, Hatch Ltd., Kirkham Geosystems Ltd., and Stantec Inc.

An independent Technical Advisory Committee (“TAC”) was established to act as a peer review over key technical aspects of the Feasibility Study. The TAC is a group of internationally recognized technical experts who have been engaged with management and the Engineering Area Leads throughout the Feasibility Study. Chaired by Alf Hills, the additional TAC members are Scott Donald (Water Management, Hydrogeology, and Groundwater Modelling), Allan Moss (Mining and Geotechnical), Roger Nendick (Processing and Infrastructure), Robert Sim (Resource Estimation), and Dr. Ward Wilson (Water and Tailings Management).

Comparison to the February 2017 Preliminary Economic Assessment (PEA)

The February 2017 PEA presented a scenario at the time of acquisition with the information available from the previous owners. Since Bluestone acquired the Project, a comprehensive review of the geology and structural controls of the deposit has been completed and formed the basis for the new resource estimate (see press release dated September 11, 2018). This included an infill drilling program undertaken as part of the resource estimate update exercise and was successful in refining the resource model thereby confirming the understanding of the deposit. Dewatering, ventilation, and cooling are important aspects of the mine design at the Project and were investigated in detail with the Feasibility Study. A fully calibrated numerical ground water model was developed, allowing for a comprehensive assessment of the hydrogeological regime and optimization of the underground mine dewatering requirements, and development of a site-wide water balance. Precedents from existing mining operations that manage and control similar underground mining environments were benchmarked against and have validated Bluestone’s assumptions and approach.

Key differences between the PEA and Feasibility Study include:

  • Total ounces in the mineral resource remain virtually unchanged; however, slightly fewer ounces converted into the mine plan with the refined resource model. An infill drilling program is currently underway to convert Inferred Resources into Measured and Indicated Resources.
  • Operating costs were affected with a shift in the split of mining methods driven from the new mine plan, resulting in an increase to the amount of cut and fill mining.
  • With a better understanding of the groundwater conditions, operating costs increased to ensure the mine dewatering could be fully and properly managed in parallel with the mine plan. In addition, enhanced ventilation has been included to ensure underground mine air quality and temperature are consistently managed.
  • Additional pre-production and sustaining capital requirements are also necessary for dewatering infrastructure.

FEASIBILTY STUDY DETAILS

Geology and Mineral Resource Estimate

The Project is a classic hot springs-related, low sulphidation epithermal gold-silver deposit comprising a system of moderate to steeply dipping quartz-adularia-calcite veins. The Mineral Resource estimate has a footprint of 800 x 400 meters between elevations of 525 meters and 200 meters above sea level. The bulk of the high-grade veins occur as two upward-flared vein arrays (North and South Zones) that converge at depth into master feeder veins, that appear to define a positive flower structure. Most of the veins are hosted in a gently dipping sequence of siltstones, limestones, conglomerates, and andesitic tuffs (Mita Unit) that are overlain by approximately 100 meters of silicified conglomerates and sinter beds (Salinas Unit) representing an un-eroded paleosurface that forms the low-lying hill at the Project. The Salinas rocks are host to a tabular zone of low-grade disseminated gold and silver mineralization.

The updated Mineral Resource estimate is the result of 128,220 meters of drilling at the project (580 drill holes) by previous operators and Bluestone, including 104 holes (18,033 meters) drilled from underground. The Mineral Resource estimate is based on a new and robust geological and structural model, supported by over 3 kilometers of underground infrastructure.

The Mineral Resource estimate was disclosed in a press release dated September 11, 2018.

Mineral Reserves and Mining

The estimated Mineral Reserves presented by reserve class are shown in the following table. The overall diluted gold grade of the mineralized material going to the mill is estimated at 8.5 g/t.

These Mineral Reserves support an initial 8-year mine life. An infill drill program is currently underway (as per the press release dated November 13, 2018) that is targeting the conversion of Inferred Resources into Measured and Indicated Resources. The Project deposit is expected to be accessed by the existing 3.2 kilometers of underground development. The current decline will serve as the primary access to the mine for personnel, materials, and haulage of mineralized material to the plant site. Annual ore production of up to 460,000 tonnes is planned from a combination of long-hole stoping and cut and fill mining methods.

Dewatering, ventilation, and cooling are important aspects of the mine design at the Project. The water in the immediate mine area will be lowered by a series of surface and underground dewatering wells. Any remaining water underground will be captured and pumped to surface through the collection at underground sumps. Currently, approximately 40% of the Mineral Reserves sit above the water table and are accessible through the 3.2 kilometers of lateral underground development. Precedents from existing mining operations that manage and control similar underground mining environments have validated Bluestone’s approach and assumptions.

In addition to the existing surface dewatering wells, a series of new dewatering wells are planned to draw down the water around the deposit. A portion of the mine water will be treated and discharged, and the balance disposed of through a series of new reinjection wells.

Initial estimates of dewatering rates to meet the needs of the mine plan were estimated from a detailed numerical ground water model, which included steady state and transient state calibration.

The number of wells required to achieve the desired dewatering will comprise five of the existing wells and eight new dewatering wells.

Processing

The Feasibility Study is based on a process plant capable of treating 1,250 tonnes per day of ore. The comminution circuit includes three-stage crushing and two stage ball mill grinding to produce a target grind size of 80% passing 50 microns. Processing will incorporate a rate of 460,000 dry tonnes per year at an average feed grade of 8.5 g/t gold and 32.2 g/t silver.  Based on recent test work, the optimized flowsheet includes pre-oxidation, a 48-hour leach circuit, followed by a 6-hour carbon-in-pulp adsorption circuit with expected recoveries of 96% gold and 85% silver.

Capital & Operating Costs

Initial capital to fund construction and commissioning is estimated at $196 million. The Project benefits from a significant amount of underground development already in place, a water treatment plant, maintenance and warehouse facilities, offices, and communications. The project is located eight kilometres from the Pan American Highway and an under-utilized electrical substation.

Infrastructure

The Project is located approximately 160 kilometers southeast of Guatemala City. The site is accessible via the Pan-American Highway (CA1) through the town of Asunción Mita. Existing infrastructure is in place to provide year-round access, a new 5 kilometer-long access road and 8.2 kilometer power transmission line will be installed as part of the construction of the Project. The topography is flat with rolling hills. Guatemala has 400 kilometers of coastline, with the closest deep-water port (Puerto Quetzal) on the Pacific Ocean, which is connected by good highway access to the Project.

Corporate Social Responsibility and Economic Benefits

Bluestone is a values-based company where environmental and community stewardship are integral to our core values. We live in the communities we operate in and follow best practices to minimize impacts to the environment. The Project and local team have been part of the local community for over a decade and Bluestone is active in engaging with the stakeholders around the Project. 

The development of the Project is expected to provide substantial economic benefits to Guatemala, both locally and at a national level. During the 18 to 24-month construction period, the Project is expected to generate direct employment of 500+ people, and once in operation, direct employment of 400+ people. It is estimated that during production the mine will inject approximately $60 million annually and contribute approximately $500 million to the Guatemalan economy through direct employee wages, consumables, taxes, and royalties. In addition, the project is expected to generate several hundred additional indirect jobs with local suppliers and service providers.

A key priority will be to train and develop skills of the local workforce as the Project advances which is in-line with Bluestone’s philosophy of working with our stakeholders and communities.

In 2018 Bluestone engaged a third -party consultant to lead an updated social baseline assessment as well as an IFC performance gap assessment. Bluestone is committed to following best practices and international standards.

Next Steps

With the Feasibility Study now completed, Bluestone will advance the Project toward development over the next few quarters. Key next steps include:

  • Optimization and trade-off studies to be undertaken.
  • Infill drilling as part of the resource conversion and expansion program currently underway.
  • Commence engineering and design activities.
  • Update resource estimate and mine plan.
  • Advance project financing activities.

Technical Information

The Technical Report summarizing the results of the Feasibility Study is being prepared in accordance with NI 43-101 and will be filed under the Company’s profile on SEDAR within 45 days of this press release. The Qualified Persons have reviewed and verified that the technical information in respect to the Feasibility Study in this press release is accurate and approve the written disclosure of such information.

Other than as set forth above, all scientific and technical information contained in this press release has been reviewed, verified, and approved by David Gunning, P.Eng., a mining engineer, and the Vice President Operations, or David Cass, P.Geo., and the Company’s Vice President Exploration, both Qualified Persons under NI 43-101.

About Bluestone Resources

Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned Cerro Blanco Gold and Mita Geothermal projects located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.

Forward Looking Statements

This press release contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”).  All statements, other than statements of historical fact, that address activities, events or developments that Bluestone Resources Inc. (“Bluestone” or the “Company”) believes, expects or anticipates will or may occur in the future including, without limitation: the conversion of the inferred mineral resources; increasing the amount of measured mineral and indicated mineral resources; the proposed timeline and benefits of further drilling; the proposed timeline and benefits of the Feasibility Study; statements about the Company’s plans for its mineral properties; Bluestone’s business strategy, plans and outlook; the future financial or operating performance of Bluestone; capital expenditures, corporate general and administration expenses and exploration and development expenses; expected working capital requirements; the future financial estimates of the Cerro Blanco Project economics, including estimates of capital costs of constructing mine facilities and bringing a mine into production and of sustaining capital costs, estimates of operating costs and total costs, net present value and economic returns; proposed production timelines and rates; funding availability; resource estimates; and future exploration and operating plans are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to Bluestone and often use words such as “expects”, “plans”, “anticipates”, “estimates”, “intends”, “may” or variations thereof or the negative of any of these terms.

All forward-looking statements are made based on the Company’s current beliefs as well as various assumptions made by them and information currently available to them.  Generally, these assumptions include, among others: the ability of Bluestone to carry on exploration and development activities; the price of gold, silver and other metals; there being no material variations in the current tax and regulatory environment; the exchange rates among the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent with current levels; the presence of and continuity of metals at the Cerro Blanco Project at estimated grades; the availability of personnel, machinery and equipment at estimated prices and within estimated delivery times; metals sales prices and exchange rates assumed; appropriate discount rates applied to the cash flows in economic analyses; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable financing; anticipated mining losses and dilution; success in realizing proposed operations; anticipated timelines for community consultations and the impact of those consultations on the regulatory approval process.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Bluestone. Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; risks and uncertainties related to expected production rates, timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain or maintain necessary licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining development activities; risks and uncertainties related to the accuracy of mineral resource estimates and estimates of future production, future cash flow, total costs of production and diminishing quantities or grades of mineral resources; risks associated with geopolitical uncertainty and political and economic instability in Guatemala; risks and uncertainties related to interruptions in production; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; uncertain political and economic environments and relationships with local communities; variations in rates of recovery and extraction; developments in world metals markets; risks related to fluctuations in currency exchange rates; as well as those factors discussed under “Risk Factors” in the Company’s Amended and Restated Annual Information Form.

Any forward-looking statement speaks only as of the date on which it was made, and except as may be required by applicable securities laws, Bluestone disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Bluestone believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.  There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Non-IFRS Financial Performance Measures

The Company has included certain non-International Financial Reporting Standards (“IFRS”) measures in this new release. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

 

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Rise Gold Slowly But Surely Progressing High Grade Idaho-Maryland Project

By the https://www.criticalinvestor.eu/

  1. Introduction

After a year which saw not a lot of enthusiasm in the mining sector to put it mildly, topped off by a resulting brutal tax loss selling season, sentiment for mining and gold in particular seems to be recovering, so in my view it is time to look at one of the more remarkable gold exploration stories around. Rise Gold (RISE:CSE, RYES:OTCQB), a small junior headquartered in Vancouver, is looking to find gold in, around and below the past-producing high grade Idaho-Maryland gold mine in California, US.  This project contains a considerable historic (2002) high grade estimate done by Amec Foster Wheeler of 0.4Moz @ 9.1g/t Au M&I and 0.9Moz @12.7g/t Au Inf, or a more recent one by Pease in 2009, estimating 472koz @10g/t Au M&I, and 1Moz @12g/t Au Inf.

Personally I consider Amec by far the most reputable engineering firm globally, and therefore I mention their estimate, although it is firmly outdated. Of course both estimates aren’t NI43-101 compliant as both are not recent enough, using today’s QA/QC procedures, but it provides a first indication of mineralized potential. These estimates are historic, non-compliant and outdated, but aren’t hot air at all in my opinion, as the Idaho-Maryland Mine had to halt production in 1954 when it was nowhere near depletion.

The company has analyzed all available historic data, constructed all sorts of (3D) models, maps and sections, defined targets, raised cash and has completed their 2018 drill program, and is setting up for their 2019 drill program after raising C$2.5M in the last quarter. As Rise has to drill pretty deep most of the time (600-1800m), progress hasn’t always been easy and quick, but as the company doesn’t seem to have any problem reeling in strategic investors like Yamana and Southern Arc, the quest for gold continues. Let’s see what the potential is for investors.  

 All presented tables are my own material, unless stated otherwise.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.  

  1. Company

Rise Gold Corp is a US exploration and development company with Canadian headquarters, focused on creating shareholder value through advancing a gold project in California. The company is developing an exploration strategy for its fully owned Idaho-Maryland gold project, a former past producing mine located in Grass Valley, California, US.

Rise Gold currently has 145.99M shares outstanding (fully diluted 240.709M), 80.06M warrants (the majority is due @C$0.10-0.15),and several option series to the tune of 14.51M options (C$0.18 on average) in total, which gives it a market capitalization of C$10.95M based on a January 17th share price of C$0.075. The company has no trouble raising cash despite its CSE listing, as it raised C$0.35M in September 2018, and C$2.5M in November 2018. As a consequence, their treasury contains about C$3M at the moment, which is enough for this year’s drill program. Waning mining sentiment and few results didn’t go unnoticed for Rise shareholders, as can be seen here:

Although gold has seen significant gains on a dropping US Dollar, and sentiment improved somewhat as usual after tax loss selling season, Rise hasn’t been following suit quite typically. One reason for this could be that the company is still flying very much under the radar, but the share price also seemed to experience support from the November raise, bringing on board intermediate producer Yamana Gold and seeing Southern Arc reinforcing their holdings in Rise. That way the share price was prevented to drop off mid-December as most mining stocks did, but on the other hand wasn’t able to recover lost ground as there wasn’t much lost ground to make up for. In my view at such lows it seems the bottom is in at C$0.05, and any significant drill result could very well support a higher share price soon, as the market cap is still small at around C$10M.

The management team is led by President and CEO Ben Mossman, who knows all about underground gold mines in North America with over 15 years of experience as a mining engineer under his belt (Snap Lake Mine for DeBeers Canada, Bellekeno Mine for Alexco Resource Corp). Since Southern Arc bought into their first strategic position, several positions have been filled by staff related to Southern Arc, not only in the Board of Directors but also management and the advisory team. This could evolve into a nice potential one-two, where maybe Southern Arc gets the benefits of a higher return at a hypothetical Yamana buyout. Key person in all this is John Proust, CEO of Southern Arc. Interesting names are director Bob Gallagher and former director and current advisor Alan Edwards.  

Last but not least is director Thomas Vehrs, who is a huge asset in determining the right exploration strategy. Holding a PhD in geology, Dr. Thomas Vehrs is a highly regarded and experienced exploration geologist with over 40 years of experience in the Americas. For the past ten years, Dr. Vehrs held the position of VP Exploration for C$740M market cap Fortuna Silver Mines.

  1. Idaho-Maryland project

Rise Gold has one project, the Idaho-Maryland Gold project, located in Grass Valley, Nevada Country, in the state of California, US. Grass Valley deposits are classified as a gold quartz vein type deposit, often higher grade and extending at great depths. California didn’t exactly build the best reputation as a mining friendly jurisdiction over the years, caused predominantly by permitting issues. Because of it, the state is ranked #61 out of 91 jurisdictions worldwide on the Policy Perception Index by the latest Fraser Survey at the moment, which basically reflected 2017. However, a lot has changed since Trump took over, as he is pro-mining and anti-permitting. Furthermore, a few mines have been permitted in the last few years in California, also before Trump, Nevada County would be the lead agency and not California State, and in addition to this the project is located on private land, which makes permitting much easier compared to federal (BLM) land, as stated in the technical report:

"The Project area is covered by private land and no permits or consultations with the US Bureau of Land Management (BLM) or the US Forest Service (USFS) would be required."

Because of all this I view permitting risk for Rise Gold as manageable.

The former Idaho-Maryland Mine has a long past behind it. The mine was reportedly the second largest gold mine in the United States in 1941, producing up to 129,000 oz gold per year before being forced to shut down by the US government in 1942 due to World War II, as workforce was needed in war efforts. Significant production after the war-time shutdown never occurred.

As mentioned earlier, there is a historic resource estimate completed in 2002 by Amec, using a cut-off grade of 3g/t Au (for correct and full disclosure see company documents, as one cannot rely on a historic resource estimate):

A few more historic resource estimates have been completed since then, the most recent being the one by Pease in 2009.  They estimated 472koz @10g/t M&I, and 1Moz @12g/t Au Inf, based on a 1.44 Mine Call Factor multiplier (the grade at the mill head was much higher than the sampling grade, so a correction factor was applied). No historic, non NI43-101 compliant resource estimate can ever be relied upon as mentioned, aso keep this in mind.

The underground workings of the former Idaho-Maryland Mine are flooded, and it would cost a lot of time and money to dewater this just for drilling, as the underground workings are extensive. The company had the New Brunswick shaft inspected with a remote operated vehicle to a depth of 701m (full depth over 1,000m), to see if it was intact.

It appeared the shaft was open over the inspected length, and the woodwork appeared to be in good condition. This could be important for future development, being either deep drilling or mine development, as constructing a new shaft is a costly business (for this size and depth easily a US$40-50M).The historic hoisting capacity was 75t/h, so this means a full-time 1,800tpd which would be more than enough for such an operation. Management thinks this can be increased if needed at today’s standards, without the need to widen the shaft. Notwithstanding all this, as underground workings are flooded, exploration needs to take place from surface, demanding deep drilling which is expensive although management elected to buy 2 drill rigs for C$611k in June 2018 to save on ongoing drilling costs, one of them among the most powerful rigs available on the market these days.

Rise Gold also bought quite a bit of land surrounding the Mine for different future mine purposes, as can be seen here:

To get a bit of an impression about the Idaho-Maryland Mine itself, here is a 3D view of the different underground workings, ranging from surface to a depth of -1650ft  (about -550m), with the mined out historic mineralization in red and magenta:

Some of the deepest drill results are reported from below 1800m. Please note that the nearby former Empire-Star Mine had underground workings going as deep as 1,600m, which is almost as deep. This Mine was shut down due to a labour strike, and also contained significant reserves, and is still owned and shelved by Newmont.

  1. Drill Results

As the operators were mining 3 separate, rich veins (Idaho #1 and #3, Brunswick) and ramping up to double the production to 250,000oz before WWII halted everything in the past, it will be understandable that numerous exploration targets in and around the mine workings were already identified during and after operation in those days.

The 2002 Amec report lists the characteristics of typical orogenic gold deposit types, as Idaho-Maryland falls in this category, and here are some very relevant and interesting highlights:

1.Tabular fissure veins in more competent host lithologies, veinlets, and stringers forming stockworks in less competent lithologies. Typically occur as a system of en echelon veins on all scales."

2."Vein systems may be continuous along a vertical extent of 1-2 km with minor change in mineralogy or gold grade; mineral zoning does occur, however, in some deposits."

Orogenic gold deposits can also have their disadvantages, as they can be hard to delineate, also due to possible nugget effects and narrow veins at depth. Fortunately for Rise Gold, Idaho-Maryland is something special in this regard:

3."Past production at the Idaho-Maryland Mine has demonstrated significant vertical and horizontal continuity of the veins. The great vertical extents of veins of similar gold deposits, such as the adjacent Empire Mine, suggests extensions of the #1 Vein, 3 Vein system, and the Brunswick Veins to depth and there exists potential for significant stockwork-style mineralization within the Brunswick Block."

Keep the remarks about stringers, en echelon veins, vertical extent of 1-2 km, and great vertical and horizontal continuity of veins in mind, when actual drill results will be discussed later on.

As the Idaho-Maryland system is probably too deep and complex to drill out completely (to Reserves) from surface, the strategy of Rise Gold will be exploration and in the end delineation to Indicated and Inferred Resources, probably on a grid spacing of 50m. Drill costs are estimated by the company at ~$140/m all-in, now that they own the rigs themselves. Otherwise the costs would have been US$240-300/m all-in. Because of considerable depth, managementmay use directional drilling, with a few widely spaced, deep motherholes first after which multiple branch holes will be drilled.

The currently most significant exploration targets identified at the Idaho-Maryland Gold Project are in untested ground below the historic mine workings. These targets are extensions of the Idaho #1 Vein, Brunswick, 3 Vein System, and the Crackle Zone.

The Crackle Zone, a concept initiated by renowned geologist and Hall of Famer Alan Bateman a long time ago, could prove to be the theory that might propel the Idaho-Maryland project into Tier I territory if correct. It basically envisions a converging feeder structure to all currently know mineralized zones, located below them and continuing at depth.

The size of this wedge could have an average width of 400m, average thickness of 5m and a length of 900m, creating a volume of 31.6M m3. Based on a gravity of 2.75t/m3, the Crackle Zone target could be 5Mt, which is sizeable of course. If this Zone indeed proves to be the converging point of the other zones, I wouldn’t be surprised if the total resource could pan out to be 1-2Moz or even larger.

Let’s see what results the drilling has provided us so far. The first results that came back are shown here:

It was a narrow intercept, but very high grade, in line with historic mineralization, which is in large part narrow vein based. This is how things typically look down below:

According to management, the first deep hole was aimed at the Idaho #1 target, designed to be drilled between the mined stopes (voids) on the Brunswick veins so that the crew wouldn’t have to drill through open voids which can be difficult. Unfortunately they missed as the hole deviated into the other direction than expected, and a new hole was drilled.   

The news release also contained a pretty interesting bit of information:

“Assay data from the Drillhole indicates that the highest gold grades in the composites are located in the wall rocks immediately adjacent to the quartz vein, rather than in the quartz veins themselves.

The Company’s observation that the wall rocks of the quartz veins hosts high grade gold could have major implications to the interpretation of the historic data from the mine. In most cases, the historic operator reported drill core and channel sample assay results for only intersections of quartz and rarely conducted sampling of the adjacent material. If there are important gold values in the adjacent wall rock, the historic sampling would have greatly underreported the gold grades of the mineralized veins.”

If the engineering firms like Amec and Pease also used quartz vein based mineralization for their estimates, things could get fascinating as drilling progresses.

The concept of mineralization being located close to the (mined out) quartz veins appeared to continue with the next set of drill results, especially at the Brunswick East Block target veins:

“Drill hole B-18-04 was the first drill hole to test below the multiple parallel veins mined on the eastern side of B1600 level. This drill hole intersected four veins with significant gold values.

On the B32 Vein, an intercept of 8.0 gpt gold over 4.0 m was intersected east of the historic mine workings, between the B1300 and B1450 levels. In addition to the downdip potential of the B32 Vein, this intercept highlights the potential of significant mineralized material remaining in the levels above B1600 level, in and around the historic mine workings and stopes.

On the B10 Vein, two closely spaced veins assayed 4.0 gpt gold over 2.8 m and 4.4 gpt gold over 3.0 m. The two intercepts are located immediately below the B1600 level. Historic mining (stoping) occurred along the B1600 level, immediately above the intercepts.”

For clarity, the mentioned 1600 number is 1,600 feet below ground level, which is slightly over 500m. The results above are an example of the mentioned en echelon vein sets, and there are many of those, mined and currently being discovered. Because of these results, management expects that former operators have left a lot of mineralization at these levels, which aren’t very deep relatively speaking.

The next drill result also handled the Brunswick vein system, and reported B-18-05, again containing multiple mineralized intercepts, indicating several stacked veins:

Visible gold was also detected in the B40 vein, and management was excited to see wider mineralization as well. The average grade of this vein didn’t surpass economic viability in itself, but it could be an interesting “pathfinder” vein, leading up to better mineralization. This hole returned more mineralization at great depth:

These intercepts are both economic although very narrow. Again, the minimum mining width is 2m, so average grades of 46g/t and 30.5g/t over 2m is very good.

It got CEO Mossman to comment on the results like this:

“These deep drill intercepts demonstrate the large exploration potential of the Idaho-Maryland Gold Project. To be able to hit deep high-grade gold mineralization with a single blind hole speaks to the great strength of this gold system. Rise has intersected multiple zones of important gold mineralization in all five holes completed to date. This deposit is known for hosting exceptionally continuous gold veins and every drill hole reinforces our belief that the Idaho-Maryland is one of the most exciting high-grade gold projects in America.”

Usually with these very short intercepts it is a case of nuggety mineralization, but as Amec mentioned in their reported, the type of mineralization of these deposits tends to be very continuous and extends very deep. This is exactly what we are seeing now, and this gets management excited as well.

To get a bit of a visual on the results so far, here is a section:

It might be that Rise Gold hit the earlier mentioned converging feeder structure at depth, as conceptualized by Bateman many years ago. In a long section also including the latest intercepts, things are shown like this:

This is all very encouraging in my view. Bit by bit the story gets more and more interesting, only reinforced further by the latest set of results, released on December 13, 2018:

For the first time the company intercepted the earlier mentioned stringers with visible gold, and again when recalculating the high grade 0.5m intercept for a minimum 2m mining width the resulting grade is very economic at 547.5g/t. An intercept of 6.8m @ 149.3g/t would have been very good as it implies more continuity (veins have a tendency to pinch and swell a lot), but the beauty of this type of geology is that the continuity is very good. As the shorter intercept (0.5m @2190g/t) contains more gold than the longer intercept (6.8m @149.3g/t) which it is part of, I asked CEO Mossman for an explanation. He stated that they rounded the widths in the news release to one decimal. The work done at site is in feet. So this interval was 1.5 ft which is 0.457 m. Since the assay is so high this couple centimeters causes the rest of the interval to show as a negative grade in a calculator. We will post the results to 2 decimals in the future. I pasted the interval into the doc below so you can see the entire detail.:………..

On a map, the location of the latest drill results of the 52 Vein target can be visualized:

Not all results are that good, but keep in mind that the nearby historic results (6.1m@ 4.1g/t, 13.3m@ 5.4g/t and 9.1m@ 16.5g/t) are certainly economic, providing a vein strike length of at least 100m at this location.

This drilling at depth takes up a lot of time and resources, but if Rise Gold manages to come close to the historic resource estimates, let’s say they prove up 1Moz of high grade mineralization, a re-rating can be expected, as their EV per oz would be in the range of US$10-15/oz, assuming more dilution. The average for this metric for explorers with a resource currently hovers around US$45/oz, according to this Haywood Securities table, part of their most recent Weekly Dig update:

This table contains outliers in both directions, so I believe this figure to be pretty accurate. If the directional drilling of Rise Gold proves to be successful, and a 1Moz is in the cards, then I don’t see a reason why this stock wouldn’t at least double from here. Management is convinced there is much more gold left in the old underground workings and below this, it’s up to them to show the world what the Idaho-Maryland really contains at depth.

  1. Conclusion

After completing  11,610 m of drilling, it appears that Rise Gold is hitting gold everywhere it looks. This in itself is pretty rare, and especially the economic intercepts at depth indicate large mineralized potential. Historic resource estimates point into the direction of 1Moz, but management thinks there could be more. The Rise Gold story with its roots in the fascinating, distant past is coming together nicely now, after hitting lots of veins, acquiring two rigs, raising lots of cash, attracting two strategic parties of which one is well-known producer Yamana Gold, and assembling a very experienced group of people. Because of the deep exploration, things will likely not advance very quickly, but with this type of backing there will be no shortage of financial and technical support, and Rise Gold should be able to advance Idaho-Maryland slowly but surely into a significant deposit in my view.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter in order to get an email notice of my new articles soon after they are published.

Disclaimer:

The author is not a registered investment advisor. Rise Gold is a sponsoring company. All facts are to be checked by the reader. For more information go to www.risegoldcorp.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

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Endeavour Silver Updates 2018 Mineral Reserve and Resource Estimates

Endeavour Silver Corp. (TSX: EDR, NYSE: EXK – http://www.commodity-tv.net/c/search_adv/?v=298293) reports updated NI 43-101 Mineral Reserve and Resource Estimates for its operating mines and exploration and development projects in Mexico. Endeavour owns and operates three silver mines in Mexico, the Guanacevi mine in Durango state and the Bolanitos and El Cubo mines in Guanajuato state. 

Last year, the Company developed and is now commissioning a fourth mine, El Compas in Zacatecas state.  Endeavour plans to commence development of the Terronera project in Jalisco state and continue with exploration, economic assessment and permitting of the Parral Project in Chihuahua state in 2019.

2018 Mineral Reserve and Resource Highlights (Compared to December 31, 2017)

  • Silver Proven and Probable Mineral Reserves increased 38% to 46.3 million ounces (oz)
  • Gold Proven and Probable Mineral Reserves increased 35% to 426,700 oz
  • Silver equivalent Proven and Probable Mineral Reserves of 80.4 million oz (80:1 silver:gold ratio)
  • Silver Measured and Indicated Mineral Resources decreased 25% to 27.3 million oz
  • Gold Measured and Indicated Mineral Resources decreased 20% to 290,400 oz
  • Silver equivalent Measured and Indicated Mineral Resources of 50.5 million oz
  • Silver Inferred Mineral Resources increased 9% to 58.0 million oz
  • Gold Inferred Mineral Resources remained flat at 301,300 oz
  • Silver equivalent Inferred Mineral Resources 82.1 million oz

Bradford Cooke, CEO of Endeavour, stated, “We continued to enjoy exploration success in 2018, primarily at Guanacevi, Terronera and Parral.  Mineral Reserves increased at Terronera due to infill drilling at depth and the inclusion of the high-grade La Luz vein.  Mineral Reserves also increased at Guanacevi, as Milache was incorporated into the mine plan, partly offset by reduced Mineral Reserves at El Cubo.  Mineral Resources increased sharply at Parral thanks to drilling of the San Patricio vein system, partly offset by reduced Mineral Resources at El Cubo.”

“In 2019, we will once again focus our exploration efforts on growing Mineral Resources and replacing Mineral Reserves at each mine-site as well as expanding Mineral Resources at Parral and other greenfields projects.  At Terronera, we will turn our attention from Mineral Resource expansion to mine development as it has the potential to become our largest and lowest cost mine.”

Mineral Reserve and Resource Discussion

Proven and Probable silver and gold Mineral Reserves increased year on year by 38% and 35% respectively to 46.3 million oz silver and 426,700 oz gold. On a silver equivalent basis, Mineral Reserves now total 80.4 million oz (at a silver to gold ratio of 80:1). The increased Mineral Reserves are mainly due to in-fill drilling and a robust economic assessment at Terronera, which expanded the Indicated Mineral Resources and converted them to Probable Mineral Reserves, and development of the Milache orebody at Guanacevi, where Indicated Mineral Resources were converted to Probable Mineral Reserves.  Excluding the Terronera Mineral Reserves, silver and gold Mineral Reserves at the operating mines increased by 46% and decreased by 2% respectively, notwithstanding significantly reduced Mineral Reserves at El Cubo.

Measured and Indicated silver and gold Mineral Resources declined by 25% and 23% respectively to 27.3 million oz silver and 290,400 oz gold. The decrease in Measured and Indicated Mineral Resources was mainly the result of conversion to Mineral Reserves at the existing operations.  Total Inferred silver Mineral Resources increased by 9% due to the success of the 2018 drilling at Parral, where Inferred Mineral Resource Estimates for silver and gold increased 55% and 49% respectively.

Mineral Reserve and Resource Estimates at December 31, 2018(1-16)

Notes:  

  1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
  2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
  3. The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  4. Mineral Resources are exclusive of and in addition to Mineral Reserves.
  5. Guanacevi Mineral Resource and Mineral Reserve cut-off grades are based on a 218 g/t silver equivalent for Santa Cruz Sur of Guanacevi and 222 g/t silver equivalent for Santa Cruz, Porvenir and Milache of Guanaceví; Metallurgical recoveries were 83.0% silver and 85.0% gold for Guanaceví
  6. Bolañitos,Mineral Resource and Mineral Reserve cut-off grades are based on a 158 g/t silver equivalent. Metallurgical recoveries were 84.3% silver and 87.7% gold for Bolañitos
  7. El Cubo Mineral Resource and Mineral Reserve cut-off grades are based on a 196 g/t silver equivalent for Area II (that comprises Dolores Mine) of El Cubo and 217 g/t silver equivalent for Areas I&IV (that comprise Santa Cecilia and San Nicolas Mines) of El Cubo. Metallurgical recoveries were 87.0% silver and 86.7% gold for El Cubo.
  8. El Compas Mineral Resource and Mineral Reserve cut-off grades are based on a 3.38 g/t gold equivalent. Metallurgical recoveries were 83.0% silver and 85.0% gold for El Compas
  9. Mineral Resource cut-off grades for Terronera was 150 g/t silver equivalent and the Mineral Reserve cut-off grades for Terronera and La Luz Deposits were 160 g/t and 216 g/t silver equivalent respectively.
  10. Mineral Resource and Mineral Reserve cut-off grades are based on a 150 g/t silver equivalent for Guadalupe y Calvo and Parral Properties.
  11. Mining recoveries of 93% were applied for Guanaceví, Bolañitos and El Compas, 88% for El Cubo and 95% for Terronera for Mineral Reserve Estimate calculations. Minimum mining widths were 0.8 metres for Mineral Reserve Estimate calculations.
  12. Dilution factors for Mineral Reserve Estimate calculations averaged 24% for Guanaceví, Bolañitos and El Compas, 53% for El Cubo and 10% for Terronera. Dilution factors are calculated based on internal stope dilution calculations and external dilution factors of 15% for cut and fill mining and 30% for long hole mining at Guanaceví, 28% and Bolañitos and 54% for long mining at El Cubo.
  13. Silver equivalent grades are based on a 75:1 silver:gold ratio and calculated including only silver and gold.
  14. Probable Mineral Reserves for Terronera includes the Terronera and La Luz Deposits.
  15. Inferred Mineral Resources for Terronera includes the Terronera, La Luz and Real Alto Area.
  16. Indicated and Inferred Mineral Resources for "Parral (new)" includes the Colorada, Palmilla and San Patricio areas.
  17. The La Colorada structure (Parral) does not contain gold on an economic scale.
  18. Price assumptions for Guanaceví, Bolañitos, El Cubo and El Compas are US$17.26/oz for silver, US$1,232/oz for gold, US$0.82/lb for lead and US$0.90/lb for zinc.
  19. Price assumptions for Terronera are US$17/oz for silver, US$1,275/oz for gold.
  20. Price assumptions for Parral are US$17/oz for silver, US$1,250/oz for gold.
  21. Figures in tables are rounded to reflect estimate precision; small differences generated by rounding are not material to the estimates.

Godfrey Walton, M.Sc., P.Geo., President and COO of Endeavour, is the Qualified Person who reviewed and approved the technical information contained in these Mineral Reserve and Resource Estimates. A Quality Control sampling program of reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish.

The Mineral Resource Estimates for Terronera, and Parral were undertaken by Independent Qualified Persons Eugene Puritch, P.Eng., FEC, CET, Yungang Wu, P.Geo., and David Burga, P.Geo of P&E Mining Consultants Inc. Mr. Puritch has reviewed and approved the technical content of this press release with respect to the Terronera and new Parral.

 The Cometa property in Parral which is part of the Lead-Zinc portion of the table is based on a Technical report titled NI 43-101 Technical Report audit of the Mineral Resource Estimate for the Parral Project, Chuhuahua State, Mexico and filed Dec 15, 2010 and authored by William Lewis, B.Sc., Charley Z. Murahwi M.Sc. MAusIMM and Dibya Kanti Mukhopadhyay M.Sc. MAusIMM. This report is separate from the Parral Properties described by P&E Mining Consultants Inc.

About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently commissioning its fourth mine at El Compas, advancing a possible fifth mine at the Terronera mine project and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer.  Our philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp. 

Website: www.edrsilver.com

Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward‑looking statements and information herein include but are not limited to statements regarding Endeavour’s reserves and resources and its anticipated performance in 2019, Mineral Resource and Reserve Estimates, and the timing and results of various future activities. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited to changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; the reliability of Mineral Resource and Reserve Estimates risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, the reliability of Mineral Resource and Reserve Estimates, mining operations will operate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

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New 3D Geological Model highlights multiple higher-grade mineralised zones untested below shallow depth at Douay Project

Maple Gold Mines Ltd. (“Maple Gold” or the “Company”) (TSX-V: MGM, OTCQB: MGMLF; Frankfurt: M3G – http://www.commodity-tv.net/c/search_adv/?v=298248) has created a new 3D geological and structural model for its Douay gold project, located on the prolific Casa Berardi Deformation Zone near Val d’Or, Quebec. The Douay deposit currently contains 2,759,000 ounces Au in the inferred category and a further 479,000 ounces Au indicated using a 0.45 g/t Au cut-off grade (Micon 2018)[1]. The Micon 2018 resource does not include the new drill data from the winter 2018 campaign, and is open along strike and down dip. The new 3D model will improve targeting of additional resources in subsequent drill campaigns and forms the foundation for an updated resource estimate.

  • New 3D model based on historical and new exploration results and re-interpretation of the existing and new mineralised envelopes, highlights numerous zones of higher-grade mineralisation throughout the 6km strike length of the Douay deposit (see Figures 1, 2)
  • The higher-grade zones are variably plunging and structurally-controlled by northwest-southeast striking Douay faults and east-west trending faults of the Casa Berardi Deformation Zone (CBDZ)
  • The down-plunge continuity of higher-grade zones has to-date been tested only to shallow depth – the average drill-hole depth at Douay is only ~230m vertical – providing excellent potential for resource expansion to depth (Fig. 2)
  • Additional mineralisation controls and orientations are related to the morphology of more local structures, syenite intrusions and their contacts

Matthew Hornor, Maple Gold’s President and CEO, commented: “Having a more thorough set of structural interpretations and a new 3D geological model establishes a foundation more in line with the standards of a major gold company and marks an important internal milestone for our technical team.”

Fred Speidel, VP, Exploration, added: These new products have strongly encouraged us to pursue down-plunge extensions of higher-grade zones that continue below the current average depth of drilling at Douay. They will also allow us to more accurately target these higher grade zones in our subsequent drill programs.”  

[1] Micon 2018: NI 43-101 Technical Report Mineral Resource Estimate for the Douay Gold Project
https://maplegoldmines.com/images/pdf/2018/Douay_NI_43_101_Technical_Report_March_2018.pdf

Additional updates pertaining to the new 3D model, pending resource estimate update and new priority drill targets will be provided shortly.

Qualified Person

The scientific and technical data contained in this press release was reviewed and prepared under the supervision of Fred Speidel, M. Sc, P. Geo., Vice-President Exploration, of Maple Gold. Mr. Speidel is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Speidel has verified the data related to the exploration information disclosed in this news release through his direct participation in the work.

Quality Assurance (QA) and Quality Control (QC)

Maple Gold implements strict Quality Assurance (“QA”) and Quality Control (“QC”) protocols at Douay covering the planning and placing of drill holes in the field; drilling and retrieving the NQ-sized drill core; drill-hole surveying; core transport to the Douay Camp; core logging by qualified personnel; sampling and bagging of core for analysis; transport of core from site to the analytical laboratory; sample preparation for assaying; and analysis, recording and final statistical vetting of results. For a complete description of protocols, please visit the Company’s QA/QC page on the website at: http://maplegoldmines.com/index.php/en/projects/qa-qc-qp-statement

About Maple Gold

Maple Gold is an advanced gold exploration and development company focused on defining a district-scale gold project in one of the world’s premier mining jurisdictions. The Company’s ~389 km² Douay Gold Project is located along the Casa Berardi Deformation Zone (55 km of strike) within the prolific Abitibi Greenstone Belt in northern Quebec, Canada. The Project benefits from excellent infrastructure and has an established gold resource3 that remains open in multiple directions. For more information please visit www.maplegoldmines.com.

ON BEHALF OF MAPLE GOLD MINES LTD.

“Matthew Hornor”
B. Matthew Hornor, President & CEO

For Further Information Please Contact:

Mr. Joness Lang
VP, Corporate Development
Cell: 778.686.6836
Email: jlang@maplegoldmines.com

In Europe:
Swiss Resource Capital AG
Jochen Staiger
info@resource-capital.ch
www.resource-capital.ch

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

Forward Looking Statements:

This news release contains “forward-looking information" and “forward-looking statements” (collectively referred to as “forward-looking statements”) within the meaning of applicable Canadian securities legislation in Canada, including statements about the prospective  mineral potential of the Porphyry Zone, the potential for significant mineralization from other drilling in the referenced drill program and the completion of the drill program. Forward-looking statements are based on assumptions, uncertainties and management’s best estimate of future events. Actual events or results could differ materially from the Company’s expectations and projections. Investors are cautioned that forward-looking statements involve risks and uncertainties. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding timing and completion of the private placement. When used herein, words such as “anticipate”, “will”, “intend” and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are based on certain estimates, expectations, analysis and opinions that management believed reasonable at the time they were made or in certain cases, on third party expert opinions. Such forward-looking statements involve known and unknown risks, and uncertainties and other factors that may cause our actual events, results, performance or achievements to be materially different from any future events, results, performance, or achievements expressed or implied by such forward-looking statements. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Maple Gold Mines Ltd.’s filings with Canadian securities regulators available on www.sedar.com or the Company’s website at www.maplegoldmines.com. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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Uranium Energy Corp Announces New and Consolidated NI 43-101 Mineral Resources* at the Reno Creek ISR Project, Wyoming

  • New and expanded M&I mineral resources rank the Project as the largest permitted, pre-construction in-situ recovery (“ISR”) uranium project in the U.S.
  • First time that the major mineralized trends of the Reno Creek ISR Project have been consolidated within the Eastern Pumpkin Buttes District of the Powder River Basin.
  • Considerable ISR exploration and expansion potential within open mineralized trends based on available historical drilling.
  • Added resources benefit from existing production permits in place.

Uranium Energy Corp (NYSE American: UEC, the “Company” or “UEC” –  http://www.commodity-tv.net/c/search_adv/?v=298723 ) is pleased to announce the Company has completed an updated National Instrument 43-101 Standards of Disclosure for Mineral Properties (“NI 43-101”) resource estimate for its Reno Creek ISR Project (“Reno Creek” or the “Project”).  

The Project is in the Powder River Basin, Wyoming, and now includes the consolidation and inclusion of the former North Reno Creek project (“North Reno Creek”) into the Company’s Reno Creek Project. *  The report is entitled “Technical Report and Audit of Resources of the Reno Creek ISR Project, Campbell County, Wyoming, USA” dated December 31, 2018 as prepared for the Company by Behre Dolbear, an internationally recognized mining consulting firm (the “Report”). 

The Report estimates a Measured and Indicated (“M&I”) mineral resource of 26 million pounds of uranium (“U3O8”) at a weighted average grade of 0.041% U3O8 contained within 32 million tons, and an Inferred mineral resource of 1.49 million pounds U3O8 at a weighted average grade of 0.039% U3O8 contained within 1.92 million tons. *

Amir Adnani, President and CEO, stated, “For decades, the Reno Creek uranium district has been unable to reach its full potential due to fractured ownership.  Through a string of accretive acquisitions over the past 24 months, UEC has successfully consolidated the key project areas, clearing the path for this substantial new resource, with the benefit of being covered under our existing production permit.  We’re executing on contrarian acquisitions during difficult years in the uranium market and have amassed a production profile of low-cost and fully permitted ISR projects.  Combining Reno Creek with the Company’s South Texas ISR projects, positions UEC to lead a renaissance in U.S. uranium production via the ISR mining method, which is globally recognized for being low cost and environmentally friendly.”

The Company completed the acquisition of the North Reno Creek project in May 2018 (press release dated May 3, 2018), and since that time has been focused on updating resources, consolidating permits, merging databases and locating all Project related information into a newly opened office in Glenrock, Wyoming, near the Project. 

The Company contracted Behre Dolbear, an internationally recognized mining consulting firm, to complete the Report on the Project.  The Report will be filed on SEDAR within 45 days of the date of this press release.  Henceforth, Reno Creek and North Reno Creek will be considered as one project in terms of resource reporting, permitting and pre-production planning.  The M&I resource estimate for the Project is presented in Table 1: *

Figure 1 shows the location of the entire 19,769-acre Reno Creek property area. 

Figure 2 shows the 6,053-acre permit area covered by Permit 824, Reno Creek ISR Project Permit to Mine, issued by the Wyoming Department of Environmental Quality (“WDEQ”) on July 17, 2015 (the “Permit”), and associated mineralized trends.  A Source and By Product Materials License for Reno Creek was issued in February 2017 from the U.S Nuclear Regulatory Commission (“NRC”), supported by a Final Environmental Impact Statement and Record of Decision, to permit production of up to 2 million pounds U3O8 per year.

On September 30, 2018, the State of Wyoming became an NRC Agreement State, which gives the State the authority to regulate in-situ recovery facilities in Wyoming.  From this date forward, UEC will only be required to work with the State WDEQ for Permit revisions, which will streamline the process to include the North Reno Creek resources under the existing Permit.

About Reno Creek

The Reno Creek Project is in the Powder River Basin of northeast Wyoming, one of the most prolific uranium producing regions in the U.S. and the home of five ISR uranium mining operations: Cameco’s Smith Ranch/Highland and North Butte, Uranium One’s Willow Creek, Energy Fuels’ Nichols Ranch and Strata’s Lance project.  The Project is less than 10 miles from the nearest town of Wright, Wyoming with a population of 1,800.  Substantial historical exploration, development and permitting work has been completed on the Reno Creek property, beginning in the late 1960s and continuing to present.  Approximately 10,000 uranium exploration drill holes have been completed within and near the Project area by various operators over this time.

Currently, Company geologists are reviewing the historical data to assess the development of additional resources along 12 miles of partially defined mineralized trends within the currently held acreage.  Development of a conceptual mining plan to support a revised Preliminary Feasibility Study is underway and the Company is planning on completing this document in 2019.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and was reviewed by Robert D. Maxwell, CPG, a consultant for the Company and a Qualified Person under NI 43-101.

About Uranium Energy Corp

Uranium Energy Corp is a U.S.-based uranium mining and exploration company with additional titanium and vanadium assets.  The Company’s fully-licensed Hobson Processing Facility is central to all its uranium projects in South Texas, including the Palangana ISR mine, the permitted Goliad ISR project and the development-stage Burke Hollow ISR project.  In Wyoming, UEC controls the permitted Reno Creek ISR uranium project. Additionally, the Company controls a pipeline of advanced-stage uranium projects in Arizona, Colorado, New Mexico and Paraguay. The Company also controls a large high-grade titanium project in Paraguay and significant vanadium resources in combination with its Slick Rock uranium project in Colorado. The Company’s operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining.

*Notice to U.S. Investors

The mineral resources referred to herein have been estimated in accordance with the definition standards on mineral resources of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101 and are not compliant with U.S. Securities and Exchange Commission (the “SEC”) Industry Guide 7 guidelines.  In addition, measured mineral resources, indicated mineral resources and inferred mineral resources, while recognized and required by Canadian regulations, are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC.  Accordingly, we have not reported them in the United States.  Investors are cautioned not to assume that any part or all of the mineral resources in these categories will ever be converted into mineral reserves.  These terms have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.  It should be noted that mineral resources which are not mineral reserves do not have demonstrated economic viability.  It cannot be assumed that all or any part of measured mineral resources, indicated mineral resources or inferred mineral resources will ever be upgraded to a higher category.  In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies.  Investors are cautioned not to assume that any part of the reported measured mineral resources, indicated mineral resources or inferred mineral resources referred to herein are economically or legally mineable.

Safe Harbor Statement

Except for the statements of historical fact contained herein, the information presented in this news release and oral statements made from time to time by representatives of the Company are or may constitute “forward-looking statements” as such term is used in applicable United States and Canadian laws and including, without limitation, within the meaning of the Private Securities Litigation Reform Act of 1995, for which the Company claims the protection of the safe harbor for forward-looking statements.  These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.  Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and should be viewed as forward-looking statements.  Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage.  Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.  There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.  Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.  Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected.  Many of these factors are beyond the Company’s ability to control or predict.  Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company’s filings with the Securities and Exchange Commission.  The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.  Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.  This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities.

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Share purchase warrant expiry and delisting

GoldMining Inc. (the "Company" or "GoldMining") (TSX: GOLD; OTCQX: GLDLF – http://www.commodity-tv.net/c/search_adv/?v=298668) announces the expiry and delisting of its share purchase warrants ("Warrants"), which had an exercise price of $0.75 per common share and an expiry date of December 31, 2018, from the Toronto Stock Exchange and OTCQX.

The Company has 137,376,318 shares issued and outstanding. Currently, the Company has cash of $9.2 million and no debt.

Amir Adnani, Chairman of GoldMining, commented: "Our currently budgeted expenditures for 2019 are approximately $5 million. These will be focused on low-cost project development activities, particularly at our São Jorge project in Pará State, Brazil, and Yellowknife project in the Northwest Territories, Canada. Our gold project portfolio presently stands at global measured and indicated resources of 9.5 million ounces gold (12.4 million ounces gold equivalent) and inferred resources of 11.7 million ounces gold (14.2 million ounces gold equivalent) (see Table below for details). We remain attentive to the pursuit of further accretive and quality acquisitions."

About GoldMining Inc.

GoldMining is a public mineral exploration company focused on the acquisition and development of gold assets in the Americas. Through its disciplined acquisition strategy, GoldMining now controls a diversified portfolio of resource-stage gold and gold-copper projects in Canada, U.S.A., Brazil, Colombia and Peru. Additionally, GoldMining owns a 75% interest in the Rea Uranium Project, located in the Western Athabasca Basin of Alberta, Canada.

Technical Disclosure

Investors are cautioned not to assume that any part or all of the mineral deposits in the "measured", "indicated" and "inferred" categories will ever be converted into mineral reserves with demonstrated economic viability or that inferred mineral resources will be converted to the measured and/or indicated categories through further drilling.  In addition, the estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of pre-feasibility or feasibility studies.

Paulo Pereira, President of GoldMining Inc. has reviewed and approved the technical information contained in this news release. Mr. Pereira holds a Bachelors degree in Geology from Universidade do Amazonas in Brazil, is a Qualified Person as defined in National Instrument 43-101 and is a member of the Association of Professional Geoscientists of Ontario.

Forward-looking Statements

This document contains certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its business and future events, including expectations respecting budgeted expenditures and its acquisition strategy. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the markets in which it operates. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including: the inherent risks involved in the exploration and development of mineral properties, the potential for delays in exploration or development activities, accidents and equipment breakdowns, title and permitting matters, labour and other legal disputes, fluctuating metal prices, unanticipated costs and expenses and uncertainties relating to the availability and costs of financing needed in the future. These risks, as well as others, including those set forth in the Company’s annual information form for the year ended November 30, 2017 and other filings with Canadian securities regulators, which are available under the Company’s profile at www.sedar.com, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

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Tax Loss Buying Candidate Kutcho Copper Completes 2018 Drill Program; FS Scheduled For Q2 2019

  1. Introduction

Although Kutcho Copper remains under the radar of most it seems, it doesn’t seem to lose a lot of time, and continues doing the heavy lifting in order to advance their flagship project, the Kutcho high grade copper-zinc project in British Columbia, Canada. Backed by a financial package arranged with Wheaton Precious Metals, Kutcho completed their 2018 drilling and exploration campaign at the end of October as planned (winterbreak), and is processing all data now. A Feasibility Study (FS) is planned for the end of Q2, 2019. Their blockchain initiative MineHub isn’t shelved either, and management intends to publish a news release with current developments and partner names within a few weeks from now.  

All presented tables are my own material, unless stated otherwise.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.

Please note: the views, opinions, estimates or forecasts regarding Kutcho’s performance are those of the author alone and do not represent opinions, forecasts or predictions of Kutcho or Kutcho’s management. Kutcho has not in 

any way endorsed the information, conclusions or recommendations provided by the author.

  1. Update

The Kutcho Copper project appears to be managed very timely and professionally, but the markets fail to recognize what exactly is being done here. With a profitable (post-tax IRR of 28% @$2.75/lb copper, @$1.10/lb zinc) project that has a post-tax 2017 PFS NPV8 of C$265M, which is 18 times bigger than its current market cap, Kutcho deserves better instead of this chart in my view: 

Figure 2. Share price over 1 year period

As mentioned in former analysis, the share price indeed went down last week at the peak of tax loss selling as expected, and one seller even brought down the stock to C$0.20 by then, which was a golden buying opportunity in my view. CEO Sorace didn’t like the cheap pricing of the last few months at all, and had a shareholder rights plan adopted by the Board of Directors (BoD), shareholders and the TSX Venture. According to the accompanying news release, this is what it was about:

"The SRP has been adopted to ensure, to the extent possible, that all shareholders of the Company are treated fairly and equally in connection with any unsolicited take-over bid or other acquisition of control of the Company, and that the Board is provided with adequate time to consider and evaluate such a take-over bid or other acquisition and, if appropriate, identify, develop and negotiate any value-enhancing alternatives. Furthermore, the SRP will allow the Board to pursue, if appropriate, other alternatives to maximize shareholder value and to allow additional time for competing bids to emerge."

In short, it gives management and BoD time and options to fight a hostile take over attempt. Such an attempt isn’t unrealistic, as there are very few economic copper deposits around, and the outlook for the metal is still very robust.

The copper price remains sideranging at US$2.68/lb Cu, as trade war concerns seem to dominate commodity demand, and zinc trades at US$1.16/lb Zn. The fundamentals for copper are still very strong for the next 3 years, with a 5-10Mt deficit expected by 2021. Zinc is developing/behaving differently, as it is less fragmented as a market, warehouse inventories have impact, smelters have even more impact on pricing and basically control the zinc market anyway.

Whereas competing base metal prices are falling left and right as far as profitability of their projects is concerned, the Kutcho project isn’t losing any profitability at the moment as the base case metal prices were almost set at today’s prices. It is very rare to see this happening for a base metal project these days, and shows the strength of its economics. Updating of tonnage is on its way, and will likely be a significant improvement regarding the current 10.4Mt. Improving recoveries of copper and zinc, higher metal prices and further optimization of for example mine plan and opex could help economics even more. As the Canadian Dollar loses strength toward the US Dollar as the Canadian economy is dependent on the dropping oil price, FX effects might help as well in the future. 

In the meantime, Kutcho has been busy on all fronts.

  1. Exploration results

Their 2018 drill program involving nearly 11,000m ( 7,000m of geotechnical drilling and 3,850m of infill/expansion, both at the Main Zone and Esso) has been completed at the end of October of this year, and the FS data collection has been completed mid October, all according to plan. Metallurgical results are expected in February 2019.

I would like to highlight a number of assays and sections from a series of news releases involving the 2018 drill program. For a better understanding, here is a 3D model of the 3 deposits Main, Sumac and Esso: 

Figure 3. 3D model

Looking at the orebodies in a bit more detail, the plan and 3D section including drill holes are represented like this (taken from the 2017 PFS): 

Figure 4. Solids

And as a reminder, here is a table that indicates the increased tonnage at Main by lowering the cut-off grade from 1.5% Cu to 1.0% Cu:

Figure 5. Main Zone resource

The 2017  Main Zone Reserves figure shows 8.1Mt @ 2.59% CuEq, but in my view this is likely to increase towards a pretty conservatively estimated 11Mt figure after using the lowered cut-off. The Esso resource figures stand at 2.3Mt @4.05% CuEq Probable Reserve, the Esso M&I resource stands at 2.4Mt @ 4%, so there was hardly any dilution when converting from resources to reserves at Esso so far. Therefore, total Probable Reserves are likely going to 13.4Mt just based on this data.

The Sumac Inferred Resource stands at 4.8Mt @1.7%CuEq.

Let’s have a look at the results.

First of all there was a very strong infill intercept on Esso:

Figure 6. Esso drill results

This intercept can be seen here:

Figure 7. KC18-038-W1

Infill intercepts don’t look spectacular but they are also adding tonnes as they can fill in areas that are outside the existing circles of influence of the current resource estimate. Such a hole is capable of adding 40-50kt for example.

Further drilling at Esso delivered an extension at depth, indicating a new high grade stringer zone, although of relatively limited size and grade. My estimate about this is that it could add 300-500kt if it extends over a length of 200-300m alongside the edge of the current deposit. A table with highlights of Esso and Main drilling looks like this: 

Figure 8. Esso and Main Zone results

Drill hole KC18-225-W1 can be seen here in this section:

Figure 9. KC18-225-W1

Together with these Esso results, numerous Main assays showed great continuity of mineralization, as can be observed for example in this section, and will undoubtedly add tonnage:

Figure 10. KC18-239

The next set of reported results indicated further confirmation of continuity and high grade, as can be seen in the following table and section: 

Figure 11. Main Zone results

Figure 12. KC18-235

The confirmation of the high grade parts of Main is a nice to have, but not very important, as most assays are spread out evenly for copper, with a coefficient of variation (CV) of 0.9 which is very good. Usually, a CV of 2.0 is a base level, and values above 5 are seen as risky. The solid distribution can be observed in this chart taken from the 2017 PFS:

Figure 13. Copper assay distribution

It is good to see the Main Zone seems to hold up well for higher grade mineralization though. For illustration purposes, the distribution of high grade pods looks like this:

Figure 14. Grade models

The next set of results on Main indicated an extension of mineralization of 50m down dip, along strike over a 250m distance, represented by hole KC18-282:

Figure 15. Main Zone results

As can be seen in the next section, it is a thin extension and probably the end of the mineralized orebody, but still capable of adding 250-500kt:

Figure 16. KC18-282

Further step out drilling at Main at depth confirmed the earlier mentioned 250m wide extension of 40-50m along strike, for example by KC18-285, and other holes like KC18-277 which didn’t intercept economic mineralization at 25-30m further along strike from the last mineralized hole indicated the boundary at depth for Main in my view, limiting further potential at depth. Here is the table:

Figure 17. Main Zone results

Here are the sections, indicating KC18-277 and KC18-285:

Figure 18. KC18-277

Figure 19. KC18-285

Of course it is never easy to guesstimate as a non-geologist what the additional tonnage could be without all results and the necessary software at my fingertips, but in my view an estimated 13.4Mt after lowering the cut-off could be increased by a conservatively estimated 0.5-1Mt expansion, and another 0.5-1Mt because of infill drilling. The upcoming resource update could therefore show larger Reserves, to the tune of an estimated 15Mt, which will result in an increased NPV8 of course.

Figure 20. Sensitivity analysis

I am curious if Kutcho can come close to my estimated 15Mt or even higher. This is below my initial estimate of 20Mt, but it is already a deeply undervalued play, as an after tax NPV8 of C$265M based on just 10.4Mt is 18 times current market cap as mentioned. C$314M is 21 times market cap, and C$361M is 24 times market cap. You just don’t see such numbers involving solid projects around very often, if ever.

  1. Conclusion

Kutcho Copper is priced as if there are serious issues, but there seems to be none, as permitting is going smoothly with very good working relationships with the First Nations, and drill results at the very least seem to confirm PFS mineralization so far.

It puzzles me, it puzzles management, which felt it could do no else than protecting the company with a shareholder rights plan, as Kutcho wasn’t set up to let it go early on the cheap. When mining sentiment turns, this company should be one to benefit, as in my opinion its fundamentals are among the strongest of all mining projects out there. As the stock seems to have bottomed out during tax loss selling season in mid December, I see Kutcho Copper as a solid buying opportunity. 

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website www.criticalinvestor.eu, in order to get an email notice of my new articles soon after they are published.

Disclaimer:

The author is not a registered investment advisor, currently has a long position in this stock, and Kutcho Copper is a sponsoring company. All facts are to be checked by the reader. For more information go to www.kutcho.ca and read the company’s profile and  official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.  

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