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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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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Revival Gold intersects 0.94 g/t Gold over 54 meters at arnett and 20.1 g/t Gold over 2.1 meters at beartrack

Revival Gold Inc. (TSXV: RVG, OTCQB: RVLGF – http://www.commodity-tv.net/…) (“Revival Gold” or the "Company"), a growth-focused gold exploration and development company, announces results from the final four holes of the Company’s 2018 core drill programs at the Arnett (“Arnett”) and adjacent Beartrack (“Beartrack”) gold projects located in Lemhi County, Idaho.

Highlights

  • AC18-16D and AC18-17D in the Haidee area at Arnett intersected 64 g/t Au over 15.3 meters1 and 0.94 g/t Au over 54.3 meters1, respectively;
  • BT18-221D in the Joss area at Beartrack intersected 1 g/t Au over 2.1 meters1 within 6.65 g/t Au over 8.2 meters1; and,
  • BT18-222D in the South Pit area at Beartrack intersected 79 g/t Au over 16.3 meters1.

1 Drilled width; estimates of true width and down-hole positions of mineralization are presented in the table below.

“AC18-16D and AC18-17D, the last and most northerly two holes drilled along strike in the Haidee area during the 2018 program at Arnett, intersected significant widths of near surface oxide gold mineralization”, said Hugh Agro, President & CEO. “At Beartrack, in the Joss area, BT18-221D cut some of the best gold grades encountered on the project to-date. Together, these results underscore the exciting potential and broad scope for follow-up exploration activity we see for Beartrack-Arnett in 2019”.

Details

Results from the final two core holes (AC18-16D and AC18-17D) of the six-hole 2018 program at Arnett and final two core holes (BT18-221D and BT18-222D) from the fifteen-hole 2018 program at Beartrack are presented below:

Mineralization in the Haidee area at Arnett remains open along strike to the south and north, as well as down dip to the west. Mineralization often occurs as visible native gold within oxidized pyrite which results in highly variable assay values.  This nugget effect is present, even when larger samples sizes (two assay-tonne) are used.  For this reason, Revival Gold intends to follow-up its conventional two assay-tonne fire assays at Haidee with metallic screen assays of larger-than-normal pulps.

Figure 1 illustrates a plan view at Arnett showing the mineralized envelope in the Haidee area, the eleven core holes drilled by Meridian Gold Inc. in 1997 and the six core holes completed by Revival Gold in 2018. 

Mineralization at Beartrack remains open to the south of Joss, north along strike between the South Pit and Ward’s Gulch area and into the North Pit.

Figure 2 illustrates an up-to-date north-west facing long-section view at Beartrack showing the current Beartrack mineral resource block model (see “Mineral Resource Estimate, Beartrack Property, Lemhi County, Idaho, United States”, dated July 12th, 2018, for further details) as well as the location and results of all fifteen drill holes completed at Beartrack in 2018.

A follow-up phase of drilling and metallurgical test work for Beartrack-Arnett is being planned. Revival Gold expects to initiate preparatory work on an updated resource estimate later this year.

QA/QC Program

Quality Assurance/Quality Control consists of the regular insertion of duplicates, blanks and certified reference standards into the sample stream.  Check samples will be submitted to an umpire laboratory at the end of the drilling program.  Sample results are analyzed immediately upon receipt and all discrepancies are investigated.  Samples are submitted to the ALS Minerals sample preparation facility in Elko, Nevada.  Gold analyses are performed at the ALS Minerals laboratory in Reno, Nevada and multi-element geochemical analyses are completed at the ALS Minerals laboratory in Vancouver, British Columbia.  ALS Minerals is an ISO 17025:2005 accredited lab.

Gold assays for the Beartrack Project are determined by Fire Assay and AAS on a 30-gram nominal sample weight (Au-AA25).  For shallow holes targeting leachable mineralization, gold is also determined by cyanide leach with an AAS finish on a nominal 30-gram sample weight (Au-AA13).  Multi element geochemical analyses are completed on selected drill holes using the ME-MS 61 method.  Sample preparation for the Beartrack Project is using the Prep 31 method, which involves the preparation of a 250-gram pulp.

Gold assays for the Arnett Project are determined by Fire Assay and AAS on a 50-gram nominal sample weight (Au-AA24).  For some of the Arnett holes, gold is also determined by cyanide leach with an AAS finish on a nominal 30-gram sample weight (Au-AA13).  Multi element geochemical analyses are completed on selected drill holes using the ME-MS 61 method.  Sample preparation for the Arnett Project is using the Prep 31B method, which involves the preparation of a 1,000-gram pulp.

Steven T. Priesmeyer, C.P.G., Vice President Exploration, Revival Gold Inc., is the Company’s designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and approved its scientific and technical content.

About Revival Gold Inc.

Revival Gold Inc. is a growth-focused gold exploration and development company. The Company has the right to acquire a 100% interest in Meridian Beartrack Co., owner of the former producing Beartrack Gold Project located in Lemhi County, Idaho. Revival also owns rights to a 100% interest in the neighbouring Arnett Gold Project.

In addition to its interests in Beartrack and Arnett, the Company is pursuing other gold exploration and development opportunities and holds a 51% interest in the Diamond Mountain Phosphate Project located in Uintah County, Utah.

Revival Gold has approximately 42 million shares outstanding and had a working capital balance of $2.3 million as at September 30th, 2018. Additional disclosure of the Company’s financial statements, technical reports, material change reports, news releases and other information can be obtained at www.revival-gold.com or on SEDAR at www.sedar.com.

For further information, please visit www.revival-gold.com or contact:

Andrea Totino, Investor Relations Manager, Tel: (416) 366-4100, Email: info@revival-gold.com

Cautionary Statement

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 news release.

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than 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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White Gold Corp. Makes New Discovery on Betty Property Along the Extension of the Coffee Creek Fault

White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the "Company” – http://www.commodity-tv.net/c/search_adv/?v=298689 ) is pleased to announce Rotary-Air-Blast (“RAB”) drill results from its Betty property located in Yukon, Canada, with numerous drill holes across several target areas encountering near surface gold mineralization. The gold mineralization was encountered along the eastern extension of the Coffee Creek fault which hosts the adjacent Coffee deposit owned by Goldcorp Inc. (TSX: G, NYSE: GG) currently being developed as an open pit and heap leach gold mine with commercial production anticipated to begin in 2021. These results represent a new discovery on a previously undrilled target, discovered through the Company’s systematic and data driven regional exploration program backed by partners Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM) and Kinross Gold Corp (TSX: K, NYSE: KGC). 

Maps to accompany this news release can be found at http://whitegoldcorp.ca/investors/exploration-highlights/.

Highlights Include:

  • At the Betty Ford target, BETFRDRAB18-002 returned 1.08 g/t Au over 50.29m from 4.57m depth, including 2.24 g/t Au over 9.41m from 19.81m depth with the top 25.91m of the hole showing oxidized mineralization and additional shallow mineralization encountered in other holes along trend.
  • At Betty White target, gold mineralization was intersected in every hole with individual results ranging from trace to 3.61 g/t Au.
  • Gold mineralization encountered across multiple target areas highlights the large-scale potential of the mineralized system, with additional targets remaining undrilled.
  • The Betty property is contiguous to the Coffee project owned by Goldcorp and hosted in the same regional structure, with very limited drill testing performed on the Betty property to date.
  • Additional results from the JP Ross and White Gold properties are in progress and will be announced in due course.

“The discovery on the Betty Ford target is a very significant finding, intersecting over 50 meters of near surface gold mineralization at grades comparable to the adjacent Coffee project, along trend and with structural similarities. We are also very encouraged with the discovery of gold mineralization encountered on other targets across the Betty property which indicates the presence of a broader gold system,” stated Jodie Gibson, VP Exploration. “The Betty property remains underexplored and we believe that this preliminary shallow drill program has just scratched the surface of the mineral potential along the very prospective Coffee Creek fault. Furthermore, this marks the fourth new discovery by our team this season, further increasing confidence in our exploration methodology and providing greater understanding of the regional geology and the prospects for additional discoveries. We look forward to applying our effective and efficient exploration techniques across our land package which now totals over a million acres in the White Gold District.”

Betty Property

The Betty Property is located 58km SW of the Golden Saddle deposit and 62km SSW of the Vertigo discovery along the continuation of the Coffee Creek fault. 145km SW of Dawson City, the property is contiguous to both Goldcorp’s Coffee and Western Copper and Gold’s Casino properties to the east. The property consists of a 12km trend of anomalous gold in soils (trace to 7,288 ppb Au) associated with both intrusion-related and structurally controlled style gold targets. Historic RC drilling from the property include results(1) of 7.1 g/t Au and 209 g/t Ag over 13.7m from hole BETR12-022, 29.8 g/t Au over 3.1m from hole BETR12-012, and 1.5 g/t Au over 21.3m from hole BETR12-007.

2018 Exploration

The 2018 drill program on the Betty property consisted of 1,827m drilled over 28 holes on 6 target areas. Additional exploration work included the collection of 916 soil samples, 103km2 of LiDAR surveys and geologic mapping and prospecting. Results ranged from trace to 4.59 g/t Au, with the most significant results encountered on the Ford and White target areas.

Ford Target

The Ford target is located in the centre of the Betty property, near the crest of an E-W oriented ridge and consists of a 950m x 200m zone of strongly anomalous gold in soils ranging from trace to 1,962 ppb Au. Drilling on the Ford target consisted of 504m of shallow (<100m) RAB drilling over 6 holes covering a 220m x 160m area within the central portion of the soil anomaly and was designed to follow up on a series of interpreted E-W trending structures in the area. The most significant results were returned from the southern end of the anomaly in drill holes BETFRDRAB18-001 to 003.

BETFRDRAB18-001 – Az: 180, Dip: -60o, Depth: 100.58m

BETFRDRAB18-001 was the eastern most hole drilled in the area and returned 24.39m of 0.94 g/t Au from 19.81m depth; including 10.67m of 1.26 g/t from 19.81m depth. The hole was drilled based on an interpreted E-W oriented structure in the area based on soil geochemistry and historic geophysical surveys.

BETFRDRAB18-002 – Az: 180, Dip: -60o, Depth: 100.58m

BETFRDRAB18-002 was drilled 103m to the west of BETFRDRAB18-001 and was targeting the same interpreted structure. The hole returned 50.29m of 1.08 g/t Au from 4.57m depth; including 19.81m of 1.63 g/t Au from 10.67m depth.

BETFRDRAB18-003 – Az: 000, Dip: -60o, Depth: 100.58m

BETFRDRAB18-003 was drilled to the north from the same drill site as BETFRDRAB18-002. The hole appears to have intersected the edge of the mineralized zone intersected in holes 001 & 002 above, returning 13.72m of 0.75 g/t Au from surface.

Mineralization in all three holes consists of strongly quartz-sericite altered biotite gneiss with quartz veining and is strongly oxidized to approximately 26m depth; transitioning to disseminated pyrite at depth.  The mineralization is currently interpreted to occur along an E-SE trending, steeply dipping, structure that is open along strike in both directions and at depth. Individual assays from the Ford ranged from trace to 4.59 g/t Au, and is “gold only” with no significant geochemical associations. 

White Target

The White target is located approximately 730m downhill to the south of the Ford target and consists of a 150m x 2,000m, NE trending zone of strongly anomalous gold in soils ranging from trace to 1,266 ppb Au. Drilling on the White target consisted of 605m of shallow (<100m) RAB drilling over 7 holes covering 670m of strike length within the central portion of the soil anomaly. Anomalous gold mineralization was intersected in every hole with individual results ranging from trace to 3.61 g/t Au.

The mineralization is hosted within quartz-biotite schist and is associated with a NE-SW trending, steeply south dipping, fault zone and adjacent fractures interpreted as a splay of the Coffee Creek Fault; located 800m to the north. Individual structures are associated with silicification, brecciation, and minor quartz veining within a broader halo of pervasive sericite alteration. The gold mineralization correlates with strongly elevated arsenic and antimony; has been traced from surface to 90m depth; and is open along strike and at depth. Strong oxidation is noted up to 50m depth, with partial oxidation extending to over 90m depth. 

About White Gold Corp.

The Company owns a portfolio of 21,218 quartz claims across 34 properties covering over 423,000 hectares representing over 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t gold and 282,490 ounces Inferred at 1.70 g/t gold as set forth in the technical report entitled “Independent Technical Report for the White Gold Project, Dawson Range, Yukon, Canada”, dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Goldcorp Inc. with a M&I gold resource (2) of 3.4M oz and Western Copper and Gold Corporation’s Casino project which has P&P gold reserves(2) of 8.9M oz Au and 4.5B lb Cu. For more information visit www.whitegoldcorp.ca.

(1) See Ethos Gold Corp News Release dated June 26, 2012, available on SEDAR
(2) Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.

QA/QC

The analytical work for the 2018 program has been performed by Bureau Veritas Commodities Canada Ltd., an internationally recognized analytical services provider, at its Vancouver, British Columbia laboratory.  Sample preparation was carried out at its Whitehorse, Yukon facility. All GT Probe, RAB, RC, and diamond core samples were prepared using procedure PRP70-250 (crush, split and pulverize 250 g to 200 mesh) and analyzed by method FA430 (30g fire assay with AAS finish) and AQ200 (0.5g, aqua regia digestion and ICP-MS analysis). Samples containing >10g/t Au were reanalyzed using method FA530 (30g Fire Assay with gravimetric finish). Metallic-screen analysis may also be utilized if coarse gold mineralization is encounter (FS600).

The work was completed using industry standard procedures, including a quality assurance/quality control (QA/QC) program consisting of the regular insertion of certified standards and blanks into the sample stream. The qualified person detected no significant QA/QC issues during review of the data.

Qualified Person

Jodie Gibson, P.Geo. and Vice President of Exploration for the Company is a “qualified person” as defined under National Instrument 43-101 (“NI 43-101”) and has reviewed and approved the content of this news release. 

Cautionary Note Regarding Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", “proposed”, "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated benefits to the Company and its shareholders respecting the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the White Gold, Betty and other properties; future growth potential of the Company, including whether any further mineral resources will be established in accordance with NI 43-101 at any of the Company’s properties; exploration results; and future exploration plans.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as 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 materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the Betty, White Gold and other properties; failure to expand or identify any additional mineral resources; the preliminary nature of metallurgical test results; uncertainties relating to future financing; fluctuations in securities and currency markets and commodity prices; change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); employee and indigenous relations; availability of necessary licenses, permits and approvals; the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; title to properties; and those factors described under the heading "Risks and Uncertainties" in the Company’s most recently filed management’s discussion and analysis. Although the forward-looking statements contained in this news release are based upon what management of the Company believes to be reasonable assumptions, t here 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. Accordingly, readers should not place undue reliance on forward-looking statements. 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.

Neither the TSX Venture Exchange (the “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 news release.

Contact Information:
David D’Onofrio
Chief Executive Officer
White Gold Corp.
(416) 643-3880
ir@whitegoldcorp.ca

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

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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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Tax Loss Buying Opportunity: Avrupa Minerals Finally Converts To Hybrid Prospect Generator Model And Starts Drilling Flagship Alvalade Project By Itself

1. Introduction

As Avrupa Minerals (AVU.V) was experiencing delays in finalizing their option agreement on their Portuguese projects with a major copper producer, time was running out on one of their most important claims. A certain amount of exploration work had to be completed on their flagship project Alvalade by the end of 2018, so Avrupa decided to raise the necessary cash on their own, in order to initiate the intended drill program. Although the share price resides at all time low levels which means dilution is at its worst, the amount and share structure allow for this, and this is actually a blessing in disguise in my view. It is the first time that Avrupa, always a classic, full-on prospect generator, turns towards a hybrid prospector generator model, instead of relying on JV partner paying for most of the expenses.

The classic prospect generator model is a relatively risk- and dilution free way of operating exploration projects, but on the other hand a prospect generator needs a very successful discovery before investors reward it with substantial share price appreciation, and most of the time the agenda of the majority JV partner isn’t aligned with the minority junior and its shareholders. On top of that it is often very difficult to determine the value of a minority share of such a project as it is controlled and defined (internal resource estimates, studies etc.) by an outside party. With Alvito coming back and Alvalade being drilled now, Avrupa outright owns 100% of both projects, and gets to benefit in full when drilling provides positive outcomes.

If this is the case, they might raise more money at hopefully higher share prices, and advance things even further by themselves. Personally I prefer this scenario as it provides the possibility for a real multi-bagger, considering the current market cap and share structure. This hybrid prospect generator model with some self financing of flagship projects was also the very reason for me to finally start covering Avrupa, as I am not a big fan of pureplay prospect generators, considering reasons mentioned above. In this analysis I will discuss the potential of their projects, and potential impact on valuation if things go as planned.

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.

2. The company

Avrupa Minerals is a Canadian exploration and development company focused on creating shareholder value through advancing base metal projects in Europe. Their company model is a modified prospect generator model, as management decided to finance and drill their flagship project Alvalade themselves. Avrupa’s most important projects, Alvalade and Alvito, are located in south Portugal. Alvalade is located in the prospective Iberian Pyrite Belt (IPB), the largest iron/copper/zinc massive sulfide belt in the world. The Alvito Project is located in the adjacent Ossa Morena Zone, and the target there is an iron oxide copper gold deposit.

The company has 2 more projects in this country, which ranks 11 out of 91 for the Policy Perception Index (PPI) according to the most recent Fraser Institute Survey of Mining Companies. The PPI is the most important figure of this survey, as it indicates the mining friendliness of a jurisdiction, which encompasses corruption, permitting, speed of administrative processing, politics, local sentiment, etc. Besides Portugal, Avrupa also has two exploration projects in Kosovo and one in Germany, and has reviewed a few Moroccan copper prospects.

The management team has industry veteran CEO Paul Kuhn at the helm, who, as a geologist, has several decades of experience ranging from exploration to production. He has been exploring for gold, silver, base metals, uranium and phospate, and has been involved in several significant discoveries, including polymetallic, gold and copper-gold deposits in Turkey, of which the most significant ones were Tac, Corak and Cöpler (now owned by Alacer Gold). Kuhn was also the CEO of the former owner of the Portuguese projects now owned by Avrupa, and came over in 2010 when Avrupa bought these projects.

Another key figure is Executive Chairman Mark Brown who founded Avrupa Minerals in 2008, as President of Pacific Opportunity Capital, his family fund which is basically an incubator for many junior mining companies. Their most successful exit was Rare Element Resources. Brown was the CFO of Miramar Mining and Eldorado Gold before he joined his father John Brown to build out Pacific Opportunity Capital. He is the largest shareholder with 13.4M shares (13% of O/S) and regularly supports the stock at lows.

Avrupa Minerals has its main listing on the main board of the TSX Venture, where it’s trading with AVU.V as its ticker symbol. With an average volume of about 101,524 shares per day, the company’s trading pattern is reasonably liquid at the moment, and I expect this to improve when drilling results will start to come in during Q1, 2019.

The company currently has 93.8M shares outstanding (fully diluted 152.1M), 41M warrants (the majority is due @C$0.15 or more, of which 23.6M warrants are expiring on July 4, 2019 and July 12, 2020) and several option series to the tune of 7.3M options in total, the majority priced at C$0.10 and expiring from July 15, 2020 onwards. Avrupa sports a tiny market capitalization of C$5.16M based on the December 21 share price of C$0.055. The company is basically controlled by management, as 46% is held closely by management, Board of Directors and insiders. When the current C$1.5M financing @C$0.05 with a full warrant will be closed, which is expected in the next weeks, Avrupa will have a working capital position of about C$1.4M. A first tranche of C$0.5M was already closed at November 9, 2018.

As can be seen in the chart, the current financing had a big impact on the share price, as interested parties for the full warrant routinely sell their shares when they hear of an upcoming capital raise in order to buy back lower into the financing, and get the coveted warrants for free. Other factors not helping Avrupa were news about the JV partner giving up on Alvito, deteriorating general mining sentiment, and tax loss selling which usually peaks mid-December. All things considered, it seems the share price has bottomed, and I view these levels as an excellent buying opportunity as I will elaborate on this later on.

3. The hybrid prospect generator model

Avrupa Minerals uses a hybrid prospect generator model as mentioned, after it used a pure prospect generator model since inception. The business model of a prospect generator consists of buying or optioning exploration projects at an early stage or even with a historic resource, do first stages of exploration before drilling, and try to joint venture with much larger companies, usually producers, in order to have their intended drill program financed by these larger companies. There is never a free lunch, so the prospect generator usually ends up as a minority JV partner, surrendering most of the project in return. I called it a hybrid as Avrupa decided to raise money and drill Alvalade themselves, as the company had to spend a certain amount of exploration dollars (in this case euro’s) within a certain timeframe.

This can still be a very profitable business for a junior when advancing a project into a resource could be successful, as we have seen with for example Reservoir Minerals at Timok. Reservoir held on to a pretty big stake in Timok along the way, but in most cases the junior converts into a 10-20% minority JV partner, or this small stake gets converted into a royalty. If exploration programs are not providing the desired success for the majority partner, the project often returns completely to the minority partner again, as a "tested and killed" opportunity. But often this doesn’t have to mean that the project is worthless, as the stakes for a major are often much higher before it moves needles for them. A junior could very well still generate a company building flagship asset out of such a drilled project, which could attract medium sized producers instead of majors with high demands.

There are some advantages and disadvantages to the prospect generator model. In favor of this model is the spread-out risk over an entire portfolio of exploration projects, usually between 3-5 active at the same time, compared to the usual single asset juniors, which have much more binary outcomes from drill programs. The budgets are provided by the majority partners in the JVs, which prevents more dilution when raising money by the junior itself.

Avrupa management estimates that 65% of all exploration and claim holding costs since 2011 are financed by the majority partners throughout, so they had to raise about 35% themselves, which helps the share structure meaningfully of course. This percentage of self-financing was lowered even further to about 20% for 2018 according to management, but will rise of course again as the company financed the current drill program of Alvalade by themselves. Investors in prospect generators are usually long-term investors, as there is no quick buck to be made. On the other hand, there isn’t as much downside like with a single asset junior as well, when a drill program on the first project doesn’t indicate a future deposit.

The most important disadvantage for a prospect generator is the difficulty of the valuation of the company for investors. On top of this, the junior is always dependent on the majority JV partner regarding determining drill programs, timelines, reports and continuation of the JV. The interests of the junior are not always aligned with the majority partner’s interests as well. Sometimes the majority partner has reasons to keep drilling success or a resource or economic profitability as limited as possible, sometimes even below agreed terms on thresholds etc, so in case of a buyout it has to pay the junior as little as possible.

Besides all this, a key aspect of good prospect generator management is the necessary ability to identify eligible projects and find majority partners for them. In other words they have to be excellent geologists and networkers. Considering the fact that Avrupa has been able to do exploration/drilling programs consistently since 2011 with large JV partners, it seems they fit the bill just nicely in this regard.

4. Projects

As mentioned earlier, Avrupa Minerals has a portfolio of projects in Europe, to be more specific in Germany, Kosovo and Portugal, and is working on things in Morocco, but the focus is clearly in Portugal at the moment, so I will predominantly discuss these projects.

The project in Germany called Erzgebirge is a very early stage gold-tungsten JV project, and currently shelved. I am not sure if any new serious mining outside the current brown coal mines have any chance of succeeding in Germany, as mining sentiment in this country is very negative according to German mining executives managing Canadian-listed companies I know who have no agenda in this whatsoever. The company had this project reviewed by a German engineering firm before they acquired the project, and told me this firm noticed no such issues. Notwithstanding this, as a Dutchman living less than 100km away from the German border, I can relate to this negative sentiment towards mining or any large-scale landscape disturbance or industrial activity, and wouldn’t expect too much from this project.

The Slivovo project in Kosovo was the former flagship project of Avrupa, before Alvalade. This small 99 koz @4.8g/t gold project is in the end stage of a typical prospect generator cycle, as the majority JV partner Byrnecut owns very close to 90% of the project now. It completed a PFS study, but the results of this are not public. As soon as Byrnecut reaches this 90% threshold, Avrupa’s interest in the project will be converted automatically into a 2% NSR royalty. At the moment Byrnecut is in the process of selling Slivovo, which would imply a welcome cash infusion for Avrupa.

Avrupa Minerals owns huge land packages in Portugal, amounting to 1,475 km2 in total (after mandatory size reductions), consisting of flagship project Alvalade, Marateca, Mertola and Alvito. With these claims, Avrupa controls a significant part of the Iberian Pyrite Belt (IPB) in Portugal. The white colored areas on the map above represent the IPB. The IPB is the largest of its kind in the world for massive sulfides, as this table shows: Figure 5. Massive sulphide regions

A refinement of the last map shows several trends within the IPB: Figure 6. IPB

The flagship Alvalade claims are shown in red, and are part of the Aljustrel Trend and Neves Corvo Trend. If we zoom in even more, we see the other licenses of Avrupa in Portugal on the IPB: Figure 7. Avrupa claims

Avrupa Minerals signed a non-binding LOI with a large North American base metal producer in March 2018, in order to option out Alvalade, Marateca and Mertola. This producer can earn in 51% on all projects by spending about C$20M over 3 years. The majority of this, C$15M, will be spent on Alvalade, a copperzinc VMS project, involving exploration and drilling, and after this period the producer would have to produce a Feasibility Study before 2024, for another 24% on Alvalade. However, the finalization has been delayed so far without a clear outlook on an agreement, but significant exploration funding has to be completed before the end of Q4 2018 in the case of Alvalade, and Q2 2019 in the case of Mertola, to keep the claims in good standing, (to the tune of C$ 750K for Alvalade and C$ 600K for Mertola). So Avrupa management decided to raise their own cash and started drilling of their own at Alvalade.

The potential partner has to spend less on Marateca (C$3M over the first 2 years) and Mertola (C$1.5M before 2020). On a side note: in Portugal every mining project is subject to a 3% NSR, in addition to corporate taxes of 21%.

The Alvito IOCG (iron ore, copper, gold) project, which was part of a JV with OZ Minerals, was returned to Avrupa in October 2018 after the 2018 drill program wasn’t successful enough for the majority partner, generating low grade (0.100.20% Cu) copper intercepts. However, Avrupa did identify a 20 km2 area within the 300 km2 license that appears to have good potential for a copper gold deposit. Enough work has been done to keep the claims in good standing during 2019, so Avrupa can search for a new JV partner without being in a hurry.

The most interesting projects are Alvalade and Mertola, as both contain former mines with historic resources. Avrupa sees an opportunity to review these pastproducing mines along the lines of the Aljustrel story: a metamorphosis from a defunct pyrite mine to a world class polymetallic mine. Another pillar of their strategy is the application of a modern era exploration model to an old district, repeating the Neves Corvo (operating copper-zinc mine of Lundin, 70km away) story, which already resulted in discoveries at Sesmarias and Monte da Bela Vista.

The Alvalade project consists out of two formerly producing mines, Lousal and Caveira, and two exploration targets: Sesmarias and Monte da Bela Vista. All have seen sampling and drilling in the recent past, and the massive sulfide discovery at Sesmarias, about 7 km away from Lousal, is the current focus of management, as it believes it could be an extension of the nearby reclaimed Lousal mine, which, for now, is a mining museum.

This former mine produced gold and silver from pyrite ore, and historic data indicates that only 15-20Mt of mineralized material has been mined of a total estimated orebody of about 50Mt. Besides the gold and silver, this deposit reportedly contains 0.7% Cu, 1.4% Zn and a bit of lead (Pb), which could point towards a possibly economic deposit of 30-35Mt according to management. The Lousal mine is situated on the Alvalade license. The museum is owned by the Lousal foundation, and the government has provided funding and support for a remediation project there. However, this foundation is open to discussion about exploration in/around the mine area. The next phase of work would include verification and upgrade of the deposit.

Avrupa had an mining engineer do a cursory informal study, which indicated an economic project at current metal prices with a 50Mt, 20 year LOM, 2-2.5Mt/y underground mine at a grade of 2% CuEq, and a capex of US$800-850M. No NPV or IRR numbers were disclosed by management. According to management, it is important to note that the mine produced only iron sulfide (pyrite) for the business of sulfuric acid production for the fertilizer industry during the 20th century, and was never explored for copper and zinc “impurities”. Management expects that exploration for copper and zinc within the iron sulfide mass will be instrumental in upgrading the deposit.]

For now, Avrupa intends to prove up an estimated target of 20-25Mt @ 2%CuEq for starters.

On a side note, with stories like this I am immediately interested in knowing what happened to the copper and zinc in the historically processed ore, as they were only looking for iron sulfides at the time. According to management, some copper and zinc was undoubtedly extracted at the smelter, but miners mined away from higher grade copper and zinc areas in the mine. The Alvalade project has been optioned out twice by Avrupa, to Antofagasta and Colt Resources. Antofagasta returned it as it didn’t meet their thresholds, although it discovered Sesmarias, and Colt went bankrupt.

The other project that has a historic resource estimate is the Mertola copper/zinc project. The closed Sao Domingo mine reportedly has a historic resource of 2730Mt @1.25% Cu, 3.0% Zn and 1.0% Pb, which is about 2.5% CuEq, contained in a single sulfide lense, unusual for the IPB, as normally there are more lenses. Therefore, the company will design an exploration and drilling program to search for them.

Sampling between Caveira and Lousal indicates that there might be a continuous, prospective mineralized zone in the Pyrite Belt rocks. This is a high priority exploration target for management.

The company has apparently lots of targets to chose from, but after close examination of data they picked the Sesmarias target to delineate further first.

5. Sesmarias Exploration

Avrupa Minerals has started drilling very recently at Sesmarias. Targets were based on drill/sampling results generated by the 2 earlier JVs involving Antofagasta and Colt Resources. Management distinguished four distinctive target zones, which are indicated on this map: Figure 11. Sesmarias target zones

As the blue lines are fault lines, it will be clear that a structural logic of displaced zones can be conceptualized, but it will take a larger amount of drilling to determine/define these mineralized zones. The target zones are described by the company like this:

• Eastern Basin – Off-hole EM conductor suggests steeply dipping massive sulfide target.

• Southern Offset – The displacement of the SES010 massive sulfide body; target constrained geologically by previous drilling.

• Western Syncline – Structural and geophysical target; western limb of Sesmarias anticline rolls over into a syncline under younger rocks and further to the west an anticline which is “exposed” by magnetic anomaly: thus a repeat of mineralized section.

• Northern Deep – Historic drilling along a NE-SW fence shows increasing thickness and grade of semi-massive to massive sulfide material at depth; known sulfides lie in proper stratigraphic horizon, but have never been tested at depth.

Drilling by Antofagasta outlined mineralized zones with several economic polymetallic intercepts, mostly dominated by copper. Highlights of this program looked like this:

• SES002 – 10.85 meters @ 1.81% Cu; 75.27 ppm Ag; 2.57% Pb; 4.38% Zn; 0.13% Sn

• SES006 – 1.5 meters @ 1.66% Cu; 54 ppm Ag; 2.30% Pb; 3.66% Zn; 0.091% Sn — mineralization cut off by faulting

• SES008 – 5.0 meters @ 0.64% Cu; 36.8 ppm Ag; 0.94% Pb; 1.54% Zn – mineralization cut off by faulting

• SES009 – 2.3 meters of massive pyrite (not analyzed)

• SES010 – 57.85 meters @ 0.45 g/t Au; 25.1 g/t Ag; 0.32% Cu; 0.61% Pb; 1.95% Zn

Delineation of a resource is not very easy in this area yet, as the geology is interfered by lots of faults, as can be seen here in this hand-drawn map by the company geologists (dotted lines are faults, small crosses are diamond drill holes, squares are sample locations, I added all the colored items): Figure 12. Sesmarias lenses, sampling, drill holes, targets

This program resulted in the interpretation of two mineralized conceptual lenses, discovered by SES002 and SES010, indicated on the map in dark green. The Colt JV resulted in the SES010 lense having a longer strike length to the north (about 400m long, 175m deep and 25-30m wide), based on a few solid assays: Figure 13. Colt drill results

This lense alone already would generate 400 x 30 x 175m = 2.1M m3, at a gravity of 4.0t/m3 for massive sulfides this could result into 8.4Mt @ 1.7% CuEq, which is a decent start. According to the map and to CEO Paul Kuhn, he sees potential for a 2km mineralized strike length, and there might be more as an offset at SES002. If these zones are continuously mineralized as the 400m zone, Avrupa is looking at 25-50Mt @1.5-1.7% CuEq. As this is a VMS zone, chances are that there are more mineralized bodies, as they typically appear in clusters. Other features of VMS deposits are the location of copper near the feeder structure and zinc farther away from the copper zones, and smaller deposits near surface when larger deposits can extend to great depths.

The company is using exploration techniques I didn’t know before, among those are the mise-a-la-masse (MALM) Figure 14. Drilling at Alvalade geophysical survey, which is an electrical downhole scan, and the ionic leach geochemical method, which is a cheap sampling method but much more sensitive compared to usual soil sampling, as it measures metal gas ions. So far the MALM scan indicated a 300m long anomaly along the SES010 lense, past drillhole SES022, which they are drilling now at 150m step out increments along strike to the north-west. Drilling has started 150 meters past SES022. Avrupa is planning the same for the zone starting at SES008, drilling step outs to the north and south from there.

Management is planning to drill Monte da Bela Vista after this, and they think this could be the feeder system of it all at depth. The following map gives an indication of location and size of this target: Figure 15. Monte de Bela Vista targets

In red is visible what management perceives as the potential remaining resource of Lousal. As can be seen, the Monte da Bela Vista targets are substantial on their own as well. A drill program is currently being designed and will be executed after drilling is completed at Sesmarias, time and funding permitting. The program has to be completed by mid January.

6. Conclusion

Avrupa Minerals has finally decided not to be completely dependent on JV partners anymore, as the current JV deal takes too long to finalize, and would jeopardize the good standing of their flagship Alvalade. C$0.5M is already raised, another C$1M is planned to close soon. The targets that are going to be explored in Portugal aren’t small so a lot of cash is needed, and management is aiming at nothing less than finding a replica of the nearby Aljustrel deposit which is successfully being mined for base metals at the moment.

Avrupa has several options to emulate this, and they are starting out by drilling Sesmarias, which could be the missing half of the next door former Lousal Mine. If they succeed in defining a 20+ Mt @ 2%CuEq resource, which should be economic according to management and a rather large project for a tiny junior like Avrupa, a re-rating could be a very real possibility. Especially since the markets are suffering from tax loss selling at the moment, sending lots of stocks to 52-week lows like Avrupa, it looks like a very interesting buying opportunity. And finally, have a Merry Christmas and a Happy New Year!

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, and follow me on Seekingalpha.com, 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, and currently has a long position in this stock. Avrupa Minerals is a sponsoring company. All facts are to be checked by the reader. For more information go to www.avrupaminerals.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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White Gold Corp. Extends Discovery Hole to 22.5 g/t Gold and 154.0 g/t Silver over 30.5m, New Trench Results of 66.39 g/t Gold and 302 g/t Silver over 5m, including 109.9 g/t Gold and 486.4 g/t Silver over 3m Confirm Zone Continuity on Vertigo, JP Ross

White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the "Company) is pleased to announce additional Reverse Circulation (“RC”) drill results and trenching results from the Vertigo target on the JP Ross property, Yukon, Canada. These results included a significant extension of the discovery Reverse-Air-Blast (“RAB”) drill hole which extended the mineralization at depth and encountered a deeper zone of high-grade gold. The trenching performed further defined the mineralization at Vertigo and will allow the previously identified gold zones to be extrapolated to additional drill targets.

Maps to accompany this news release can be found at http://whitegoldcorp.ca/investors/exploration-highlights/

Highlights Include:

  • JPRVERRC18-013 returned 18.59 g/t Au and 188.8 g/t Ag over 6.10m from 24.38m depth, including 59.5 g/t Au and 439 g/t Ag over 1.52m from 27.43m depth. The hole also encountered an additional zone of mineralization at 44.2m depth, returning 6.82 g/t Au over 4.57m, including 18.5 g/t Au over 1.52m from 44.2m depth. Drilled as a continuation of previously announced RAB hole JPRVERRAB18-0014, the overall intercept is 22.47 g/t Au over 30.46m from surface with individual samples ranging from 2.00 to 60.4 g/t Au and trace to 388 g/t Ag.
  • 3 trenches completed, each encountering significant mineralization, including trench JPRVERTR18-002 which returned results of 66.39 g/t Au and 302 g/t Ag over 5m, including 109.93 g/t Au and 486.4 g/t Ag over 3m.
  • Trenching has identified a continuous body of high-grade mineralization that has been traced over 55m strike length which extends to a minimum of 30m depth based on drill testing conducted. This structure is one of at least 12 mineralized structures identified on the Vertigo target to date within a 1,500m x 650m target area.
  • Additional drilling, prospecting and soil sampling has also been conducted along the 14km structural trend that hosts the Vertigo discovery with the goal of identifying similar high-grade gold mineralization. Results for this exploration work will be released in due course.

“Spectacularly high-grade gold values are consistently being obtained from the Vertigo Trend and these trench results confirm our model of strong structural control. We have successfully defined the trend and dip of the gold-bearing zones only a few months after initial discovery. These results provide further understanding of the Vertigo and show that the mineralization is more extensive than previously understood.” stated Rob Carpenter, Director of the Company. “The trenching has given us key insights into the direction and orientation of the high-grade mineralization which we have leveraged to complete prospecting work outside of the main target area and we look forward to presenting these results in due course. Our 2019 program will aim to extend the geometry of these shallow gold zones with our ultimate goal being to illustrate the continuity of grade and trend. The scale and footprint of the Vertigo zones and alteration haloes suggest the system may represent the most robust gold system discovered to date in the White Gold District.”

Extension of Discovery Drill Hole

Discovery hole JPRVERRAB18-014 intersected 23.44 g/t Au and 144.75 g/t Ag over 24.38m from surface, ending in mineralization and was extended with an RC drill to 79.25m. JPRVERRC18-013 (Az: 180, Dip: -60, Depth: 24.38 – 71.63) was drilled as the continuation of previously announced RAB hole JPRVERRAB18-014. The hole returned 6.10m of 18.59 g/t Au and 188.80 g/t Ag from 24.38m depth; including 59.5 g/t Au and 439.00 Ag over 1.52m from 27.43m depth. Combined with JPRVERRAB-014 the overall intercept is 22.47 g/t Au and 154.00 g/t Ag over 30.46m from surface with individual 1.52m samples ranging from 2.00 – 60.4 g/t Au.

Additionally, there is a second zone of mineralization within JPRVERRC18-013, returning 6.82 g/t Au and 6.80 g/t Ag over 4.57m from 44.20m depth; including 18.5 g/t Au and 12.90 g/t Ag over 1.52m from 44.20m depth. A summary table of holes RAB14/RC13 is presented below:

Interpretation of the results is ongoing and there is not currently enough information to estimate true thickness of the mineralized zones.

Trenching Results

A program consisting of 3 trenches covering 63m was conducted on the Vertigo to follow up on near surface, high-grade gold mineralization intersected in previously reported RAB (JPRVERRAB18-014) and RC (JPRVERRC18-006) drill holes. All the trenches were excavated to bedrock using a low impact, heliportable, excavator. Bedrock depths ranged from approximately 1 – 1.5m depth, and continuous 1m channel samples were collected from bedrock at the bottom of the trenches. Individual assays for trench samples ranged from trace to 157.7 g/t Au and from trace to 718 g/t Ag. Highlights are summarized below:

Mineralization within the trenches consists of a series of lode style quartz veins, up to 1m thick, with disseminated to massive arsenopyrite-galena-pyrite and, locally, visible gold. These occur within a broader zone of brecciation and strong sericite alteration over 5-7m thickness and form a continuous body of high-grade mineralization that has been traced over 55m strike length and to minimum of 30m depth in RAB/RC drilling conducted in the area. Additional, subparallel zones of fracture -controlled mineralization, quartz veining, and/or brecciation extend up to 30m beyond the “high-grade core.” Overall, the mineralization is interpreted to occur along a NW striking, steeply south dipping structural zone that is open along both strike and dip. This structure is one of at least 12 mineralized structures identified on the Vertigo to date within a 1,500m x 650m WNW trending area and additional trenching and follow up diamond drilling will be conducted across all known target structures in 2019. 

JPRVERTR18-001:

JPRVERTR18-001 is located 5m west of JPRVERRAB18-014 and its continuation RC18-013, and is oriented to the south. The trench was 12m in length and returned 16.94 g/t Au and 67.9 g/t Ag over 7m from 1m down the trench; including 23.29 g/t Au and 113.7 g/t Ag from 2m down the trench.

JPRVERTR18-002:

JPRVERTR18-002 is located 6m east of Trench 1 and oriented to the south. The trench was 22m in length and returned 66.39 g/t Au and 302 g/t Ag over 5m from 4m down the trench; including a 3m core of 109.93 g/t Au and 486.4 g/t Ag from 5m down the trench. An additional zone of mineralization was also intersected 11m south of the upper intercept and returned 50.5 g/t Au and 80.6 g/t Ag over 1m from 20m down the trench.

JPRVERTR18-003:

JPRVERTR18-003 is located approximately 40m to the southeast of JPRVERTR18-003 and oriented to the south. The trench was 29m in length and returned 20.79 g/t Au and 107.1 g/t Ag over 8m from 15m down the trench; including 32.28 g/t Au and 157 g/t Ag over 5m from 18m down the trench. An additional zone of mineralization was also intersected 9m south of the upper intercept returning 7.05 g/t Au and 48.9 g/t Ag over 2m from 27m down the trench.

Vertigo Target – JP Ross Property

The Vertigo Target is on the JP Ross property which is comprised of 2,850 quartz claims covering over 57,000 hectares with at least 14 known target areas and numerous placer gold bearing creeks.  Previously announced drill results on the Vertigo target range from trace to 56.25 g/t Au over 3.05m within a broader intercept of 17.34 g/t Au over 10.67m from 3.05m depth (JPRVERRAB18-001); 45.00 g/t Au over 3.05m from 1.52m depth, within a broader intercept of 9.65 g/t Au over 15.24m (JPRVERRAB18-011); and 23.44 g/t Au over 24.37m (JPRVERRAB18-014). Additional exploration in the area also encountered multiple high-grade grab samples including 139.9 g/t, 135.6 g/t and 132.9g/t Au defining a strike length of approximately 1.5km on the Vertigo target along a 12km mineralized trend. The Vertigo Target is located approximately 25km north of the Company’s flagship White Gold property and is within 2km of an existing road accessible from Dawson City. Recently staked and acquired claims adjacent to the property are situated within a prolific placer mining camp where coarse placer gold is common.

To date, at least 12 mineralized structures are recognized on the Vertigo target over a 1,500m x 650m area, and consist of W-NW trending, steeply dipping zones of quartz veining, brecciation, and fracture-controlled mineralization with disseminated to vein-controlled pyrite-arsenopyrite-galena and, locally, visible gold mineralization. Drill testing to date has validated the mineralization over 500m of strike length which is open along strike and at depth.

About White Gold Corp.

The Company owns a portfolio of 21,218 quartz claims across 34 properties covering over 423,000 hectares representing over 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t gold and 282,490 ounces Inferred at 1.70 g/t gold as set forth in the technical report entitled “Independent Technical Report for the White Gold Project, Dawson Range, Yukon, Canada”, dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Goldcorp Inc. (TSX: G, NYSE:GG) with a M&I gold resource(1) of 4.1M oz and Western Copper and Gold Corporation’s Casino project which has P&P gold reserves(1) of 8.9M oz Au and 4.5B lb Cu. For more information visit www.whitegoldcorp.ca.

(1)           Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.

QA/QC

The analytical work for the 2018 program has been performed by Bureau Veritas Commodities Canada Ltd., an internationally recognized analytical services provider, at its Vancouver, British Columbia laboratory.  Sample preparation was carried out at its Whitehorse, Yukon facility. All GT Probe, RAB, RC, and diamond core samples were prepared using procedure PRP70-250 (crush, split and pulverize 250 g to 200 mesh) and analyzed by method FA430 (30g fire assay with AAS finish) and AQ200 (0.5g, aqua regia digestion and ICP-MS analysis). Samples containing >10g/t Au were reanalyzed using method FA530 (30g Fire Assay with gravimetric finish). Metallic-screen analysis may also be utilized if coarse gold mineralization is encounter (FS600)

The work was completed using industry standard procedures, including a quality assurance/quality control (QA/QC) program consisting of the regular insertion of certified standards and blanks into the sample stream. The qualified person detected no significant QA/QC issues during review of the data.

Qualified Person

Jodie Gibson, P.Geo. and Vice President of Exploration for the Company is a “qualified person” as defined under National Instrument 43-101 (“NI 43-101”) and has reviewed and approved the content of this news release. 

Cautionary Note Regarding Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", “proposed”, "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated benefits to the Company and its shareholders respecting the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the White Gold and other properties; future growth potential of the Company, including whether any further mineral resources will be established in accordance with NI 43-101 at any of the Company’s properties; exploration results; and future exploration plans.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as 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 materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the White Gold and other properties; failure to expand or identify any additional mineral resources; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the White Gold properties and the Company’s other properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mineral exploration and mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described under the heading "Risks and Uncertainties" in the Company’s most recently filed management’s discussion and analysis. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. 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.

Neither the TSX Venture Exchange (the “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 news release.

Contact Information:

David D’Onofrio
Chief Executive Officer
White Gold Corp.
(416) 643-3880
ir@whitegoldcorp.ca

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

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Nordic Gold Completes 1,234 Ounce First Pour

NORDIC GOLD CORP. (TSX-V: NOR) ("Nordic" or the "Company") today announced the successful completion of the first pour of gold at its wholly owned Laiva Mine near Raahe in Finland.  A total of 1,234 ounces of doré was poured.

On October 11, 2018 Laiva received written approval for startup and mining started on August 5, 2018.

The company acquired Laiva Mine in December 2017 for approximately $25 million in cash and shares. Since that time the company has completed an updated NI-43-101 Resource calculation, completed a PEA, recruited an experienced management team to operate the mine, completed all necessary permitting and approvals to operate. The company has also completed all the necessary plant maintenance and recommissioning.

Michael Hepworth, President and Chief Executive Officer said, “The first pour is a critical but vital step in returning Laiva to commercial production. The last 18 months has been focused on using past production data and learning from this information. Many fixes have been implemented and as we move towards commercial production further improvements will be implemented to ensure appropriate economics and efficiencies. The team at the mine has done an outstanding job of getting back to production in an incredibly short timeframe. From care and maintenance to production in around 11 months is something everyone can be very proud of.”

Nordic’s first pour of gold was livestreamed at 10.20am EST on 30th November 2018. Interested investors can watch video of this first pour at www.nordic.gold

About the Company

Nordic Gold Corp. is a junior mining company with a near production gold mine in Finland.   The Laiva Gold Mine is fully built, fully permitted and financed to production via a gold forward sale agreement.  Production is scheduled to start in the 4th quarter of 2018.  

A recently released PEA was conducted by John T. Boyd Company of Denver, Colorado (“Boyd”).

Other Highlights include:

  • Pre-production capex $7,115,103.
  • 75,981 ounces of average annual gold production at a cash cost of $863 per ounce and AISC of $974 per ounce.
  • Measured mineral resources of 355,000 tonnes at 1.132 g/t Au and Indicated mineral resources of 3,442,000 tonnes at 1.248 g/t Au.
  • Inferred mineral resources of 9,030,000 tonnes at 1.531 g/t Au.
  • Mill grade of 1.45 grams per tonne with a recovery of 90.4%.
  • Life of Mine production of 456,600 ounces gold over a 6-year mine life.

The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that PEA results will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

As previously announced, when Nordic acquired the Laiva Gold Mine, the Company was granted, €131,716,248 in tax loss provisions which may be used to offset future taxes should taxable income be earned in Finland prior to expiration of the tax loss carry forwards.  The tax loss provisions expire between 2020 and 2028 (see the Company’s audited financial statements for the year ended January 31, 2018 for detailed disclosure of the expiration schedule). The recognition of the tax loss carry-forwards has a material impact on the economic assessment of the Laiva Gold Mine project and are contingent upon the Company achieving taxable net income per Finnish tax laws.

Nordic Gold’s management has identified several opportunities outside of the scope of the mine plan studied in the PEA, which could further improve the mine plan and the economics of the project. Most important of these being the three additional 100% owned exploration properties close to the mine. Nordic is currently conducting magnetic surveys on all of the company’s properties. All three properties are fully permitted for exploration.

The report also identifies near mine targets for exploration as potentially 3.2 to 5.1 million tonnes grading at 1.25 to 1.45 grams per tonne. This estimate is based on drilling beneath the south and north pits at depths up to 250 m below surface and is open at depth.  Further infill and step-out drilling is required to test these targets.  Grade estimate is based on assuming the same weighted average grade of the measured, indicated and inferred resources reported in the Boyd report.  The report also identifies a target in the eastern extension as potentially 0.85 to 3.2 million tonnes grading 1.25 to 1.45 grams per tonne.  This estimate is based on three to five mineralized zones of 200 m to 300 m length, 50 m to 75 m vertical extent and 10 m width.  Drilling has identified multiple mineralized zones up to 750 m from the north pit that extend to depths of at least 100 m.  Grade estimate is based on intercepts of reconnaissance drilling and the weighted average grade of the measured, indicated and inferred resources reported in the Boyd report. The exploration targets are conceptual in nature as there has been insufficient exploration work to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.  The economics of the PEA do not include these exploration opportunities. 

Mineral Resources:

Mineral Resources were prepared by JT Boyd (Nordic Press Release August 21, 2017).

  1. The effective date of the estimate is August 9, 2017.
  2. The mineral resources presented here were estimated using a block model with a block size of 9 m by 9 m by 9 m sub-blocked to a minimum of 3 m by 3 m by 3 m using ID3 methods for grade estimation. All mineral resources are reported using an open pit gold cut-off of 0.40 g/t Au.  
  3. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.
  4. 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 expected to be upgraded to an Indicated Mineral Resource with continued exploration.
  5. Other than an economic pit shell no attempt has been made to apply a mining dilution or a mining recovery factor.
  6. Mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), CIM Standards on Mineral Resources and Reserves, Definition and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  7. Numbers may not add due to rounding.

Disclosure: Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the risks and uncertainties associated with a production decision.  The Company has not completed a feasibility study on, nor has the Company completed a mineral reserve estimate at the Laiva Gold Mine and as such the financial and technical viability is higher risk than if this work had been completed.  Based on historical engineering and geological reports, historical production data and current engineering work completed or in process by Nordic Gold, the Company intends to move forward with the development of this asset. The Company further cautions that it is not basing any production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and therefore there is a much greater risk of failure associated with its production decision. In addition, readers are cautioned that inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.

Nordic Gold currently has one highly prospective property in British Colombia. The Star Property is currently operated under a Joint Venture agreement between Nordic (49%) and Prosper Gold. (TSX-V: PGX) (51%).

Qualified Person

The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101 and a director of the Company.

About Pandion Mine Finance, LP

Pandion Mine Finance, LP is the general partner of PFL Raahe Holdings LP and is a mining-focused investment firm backed by MKS PAMP Group and Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.

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 release

Advisory Regarding Forward Looking Statements

This news release contains forward-looking statements. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. While the Company has based these forward-looking statements on its expectations about future events as at the date those statements were prepared, the statements are not a guarantee of the Company’s future performance.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. 

The Company’s forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release.  Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.

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