Bluestone Announces Additional Drill Results

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

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

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

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

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

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

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

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

Quality Analysis and Quality Control

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

Qualified Person

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

About Bluestone Resources

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

Forward Looking Statements

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

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

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

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

Non-IFRS Financial Performance Measures

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

All-in sustaining costs

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

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

Total cash costs

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

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

AISC and total cash costs reconciliation

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

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

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

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

Feasibility Study Highlights

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

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

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

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

Project Enhancement Opportunities

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

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

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

Cerro Blanco Feasibility Study

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

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

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

Comparison to the February 2017 Preliminary Economic Assessment (PEA)

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

Key differences between the PEA and Feasibility Study include:

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

FEASIBILTY STUDY DETAILS

Geology and Mineral Resource Estimate

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

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

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

Mineral Reserves and Mining

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

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

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

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

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

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

Processing

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

Capital & Operating Costs

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

Infrastructure

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

Corporate Social Responsibility and Economic Benefits

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

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

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

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

Next Steps

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

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

Technical Information

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

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

About Bluestone Resources

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

Forward Looking Statements

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

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

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

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

Non-IFRS Financial Performance Measures

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

 

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

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

  1. Introduction

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

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

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

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

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.  

  1. Company

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

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

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

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

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

  1. Idaho-Maryland project

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

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

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

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

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

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

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

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

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

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

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

  1. Drill Results

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  1. Conclusion

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

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

Disclaimer:

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

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Endeavour Silver Provides 2019 Production and Cost Guidance, Production Forecast 4.4-5.2 Million oz Silver and 46,200-52,200 oz Gold, for 8.1-9.4 Million oz Silver Equivalent

Endeavour Silver Corp. (TSX: EDR, NYSE: EXK – http://www.commodity-tv.net/c/search_adv/?v=298293) released today the 2019 production and cost guidance for its four silver-gold mines in Mexico, the Guanacevi mine in Durango state, the Bolanitos and El Cubo mines in Guanajuato state and the El Compas mine now being commissioned in Zacatecas state.  The Company also provided its 2019 capital and exploration budgets for the four mines and several exploration and development projects.

2019 Production and Cost Guidance Highlights

In 2019, consolidated silver and gold production is estimated to be about 10% lower than 2018.  Silver production is expected to range from 4.4 to 5.2 million ounces (oz) and gold production is anticipated be in the 46,200-52,200 oz range. Silver equivalent production should approximate 8.1-9.4 million oz using a 80:1 silver:gold ratio.  Endeavour estimates its consolidated cash cost will be slightly higher year-on-year at $8.50-9.50 per oz silver and the all-in sustaining cost (AISC) will be equal to or slightly lower than 2018 at $15-16 per oz silver, both net of the gold byproduct credit.

Cash costs are expected to increase slightly in 2019 compared to 2018, primarily at El Cubo, whereas reduced capital expenditures in 2019 should result in lower all-in sustaining costs year-on-year, based on lower 2019 precious metal production and using lower estimated metal prices of $15.50 per oz silver and $1,240 per oz gold. The 2019 sustaining capital budget is lower than 2018 due to lower sustaining capital expenditures at El Cubo.  The 2019 exploration budget for the operating mines is also lower as the focus shifts towards growth projects such as Parral.

Bradford Cooke, Endeavour CEO, commented, “We expect to improve our operating performance this year, especially at Guanacevi where the development of two new high-grade orebodies should facilitate higher production and lower costs, and at El Compas, which should achieve commercial production this quarter.  However, El Cubo production will scale back to about half that of 2018, in order to give our exploration group more time to explore for new resources.

“We expect Guanacevi to return to full plant capacity in H2, 2019, we have a substantial ore stockpile now at El Compas to fill that plant to capacity, and we are pursuing opportunities to fill the El Cubo plant with new sources of ore in 2019.  Meanwhile, we await the final permit, debt financing and board decision so we can commence development of our Terronera project, which has the potential to become our largest and lowest cost mine.”

Operating Mines

At Guanaceví, the mine continued to face operational challenges in 2018. The remaining reserves at the two operating mines, Porvenir Norte and Santa Cruz, are now deeper, narrower, lower grade and higher cost than prior years. In 2018, Endeavour completed the permitting and initial development of two new shallower, wider, higher grade, lower cost orebodies, Milache and Santa Cruz Sur (SCS).  By year-end, three mine levels were being developed in mineralization at Milache, with development ore being trucked to the plant.  A new mine access ramp was collared at SCS in late 2018 to facilitate development of the orebody in 2019.  The Milache and SCS production rates are expected to climb each quarter to their respective 300-400 tpd capacities by mid-year, first to fill the plant to its 1200 tpd capacity and then to steadily displace the higher cost production at Porvenir Norte and Santa Cruz. 

At Bolañitos, mine production and plant throughput are forecast slightly below 1,200 tpd, similar to the two previous years with production coming from six working areas, with the bulk of production coming from the LL-Asunción and Plateros vein orebodies. Ore grades are expected to be slightly lower than 2018, offset by improved recoveries.

At El Cubo, exploration in 2018 did not replace the depleted reserves, so the Company plans to reduce the production rate in 2019 to approximately half its 1,500 tonne per day capacity.  The lower production rate will result in higher operating costs.  Accordingly, the Company has initiated layoffs to reflect the lower production rate in 2019.  The mine will continue to run at three shifts per day but the plant will move to one shift per day. Some idled mining equipment at El Cubo was transferred to the El Compas mine in Zacatecas to facilitate their mine plan in 2019. Grades are expected to be 10% lower than 2018, while recoveries are expected to remain consistent with 2018.

At El Compas, the ball mill pinion failed in late December, which brought plant operations to a halt. However, mining operations continued and the ore stockpile now exceeds 19,000 tonnes.  Management expects to recommence plant operations after the new pinion is installed, process the stockpile and declare commercial production during the current quarter.

Operating Costs

Cash costs, net of gold by-product credits, are expected to be $8.50-$9.50 per oz of silver produced in 2019. Consolidated cash costs on a co-product basis are anticipated to be $11.50-$12.50 per oz silver and $900-$1,000 per oz gold.

All-in sustaining costs, net of gold by-product credits, in accordance with the World Gold Council standard, are estimated to be $15.00-$16.00 per oz of silver produced. When non-cash items such as stock-based compensation are excluded, AISC are forecast to be in the $14.50-$15.50 range.

Direct operating costs are estimated to be in the range of $85-$90 per tonne.

Management has assumed a $15.50 per oz silver price, $1,240 per oz gold price, and 20:1 Mexican peso per US dollar exchange rate for its 2019 cost forecasts.

Capital Budget

In 2019, Endeavour plans to invest $20.6 million on capital projects primarily on sustaining capital at the four operating mines, and $1.8 million in growth capital to maintain the exploration concessions and cover corporate infrastructure.  At current metal prices, the sustaining capital investments will be covered by operating cash flow and current cash.

At Guanacevi, a capital budget of $10.6 million is planned for 2019, to primarily advance 7.0 kilometres (km) of mine access at the North Porvenir, Santa Cruz, Milache and SCS mines.

At Bolañitos, a capital budget of $4.2 million is planned for 2019, including $3.4 million on mine development to access reserves and resources in six working veins. An additional $0.8 million will be invested to support site infrastructure, raise the tailings dam, and fund office equipment and building improvements.

At El Compas, a capital budget of $4.0 million is planned for 2019, including $2.7 million on mine development to further advance the Compas vein and access the Orito vein. An additional $1.3 million is planned for supporting site infrastructure, including plant and mine improvements.

At El Cubo, no capital budget was allocated as all underground development is now included in the operating expenditures until further reserves are defined.

The Company is still awaiting receipt of the final dumps and tailings permit needed to advance the Terronera project to a development decision.  Upon receipt of these final permits, and assuming a positive board production decision and appropriate debt financing, management will release the anticipated 2019 growth capital budget for Terronera.

Exploration Budget

In 2019, the Company plans to drill 30,000 metres and spend $9.8 million on brownfields and greenfields exploration and development engineering across its portfolio of properties. At the four existing mines, 18,500 metres of core drilling are planned at a cost of $3.1 million. For the exploration and development projects, expenditures of $5.7 million are planned to fund 11,500 metres of core drilling and advance engineering studies at Terronera and Parral, for which the Company recently published updated NI 43-101 resource estimates, and drilling of three new projects in Chile. Another $1 million will be allocated to projects on an as needed basis during the year.

In summary, 2019 is shaping up to be a transformational year for Endeavour, as the focus shifts from turning around old mines to building new mines and reloading the exploration and development pipeline.

Growth Outlook Webinar

Next week, Endeavour’s CEO, Bradford Cooke and Vice President of Exploration, Luis Castro will host a live, two-hour, audio and powerpoint webcast on Endeavour’s Growth Outlook, with presentations on each of the Company’s exploration and development projects followed by Question and Answer periods on Thursday, January 31, 2019 starting at 10am PT (1:00pm ET). This webinar will also provide detailed disclosure on a new Chilean exploration portfolio. 

Participants can join the live webcast at  http://www.edrsilver.com/2019explorationstrategywebcast.  The PowerPoint presentation will also be available on the homepage of the Company’s website and under the Investor Relations, Events section. Participants can also listen to the audio by dialing the numbers below. No pass-code is necessary.

Toll-free in Canada and the US: 1-800-319-4610

Local Vancouver: 604-638-5340

Outside of Canada and the US: + 604-638-5340

The webcast will be archived and made available for replay the Company’s website at www.edrsilver.com under the Investor Relations, Events section.

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

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward‑looking statements and information herein include but are not limited to statements regarding Endeavour’s anticipated performance in 2019, including production forecasts, cost estimates and metal price estimates, and the timing and results of mine expansion and development and receipt of various permits. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; metal prices; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.

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

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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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Endeavour Silver Reports High Grade Silver-Gold Intersections in Multiple Veins From 2018 Drill Program at the Bolanitos Mine, Guanajuato, Mexico

Endeavour Silver Corp. (NYSE: EXK; TSX: EDR – http://www.commodity-tv.net/c/search_adv/?v=298293) reports high grade silver-gold intersections in multiple veins from the 2018 drill program at the Bolanitos mine in Guanajuato, Mexico. A total of 55 drill holes from surface and 11,000 metres were completed by the end of October on seven different vein targets, all of which are located within four kilometres of the Bolanitos plant (view longitudinal sections for Herradura, Plateros and San Miguel).

Drilling highlights include high silver-gold grades in two parallel veins at the San Miguel target just north of the plant, such as 1,415 grams per tonne (gpt) silver and 2.25 gpt gold over a 1.1 m true width (46.2 oz per short ton (opT) silver equivalent (AgEq) over 3.6 feet (ft) in hole MG-06. Another highlight comes from the Arcangel vein, part of the La Luz vein system, and includes 138 gpt silver and 13.2 gpt gold over a true width of 1.2 m (32.8 opT silver equivalent over 3.9 ft) in hole LZU-17.

Luis Castro, Vice President, Exploration for Endeavour Silver, commented, “These step-out drill results have outlined several new mineralized areas and provided extensions to known areas, with potential for new resources to extend the mine life at Bolanitos. Specifically, San Miguel is a newly discovered vein to the North East, that is more extensive than previously recognized. Drilling has now wrapped up at Bolanitos for the year and a new resource estimate is expected in January.”

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

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward‑looking statements and information herein include but are not limited to statements regarding Endeavour’s anticipated performance in 2018 including changes in mining and operations and the timing and results of various activities. The Company does not intend to, and does not assume any obligation to, update such forward-looking statements or information, other than as required by applicable law.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices, operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.

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

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First Cobalt Continues to Show Continuity of Mineralization at Iron Creek

First Cobalt Corp. (TSX-V: FCC; ASX: FCC; OTCQX: FTSSF) (the “Company” – http://www.commodity-tv.net/c/search_adv/?v=298244) is pleased to report that drill results from its Iron Creek Cobalt Project in Idaho, USA extend mineralization at depth and demonstrate additional mineralization between the two known zones as well as in the footwall of the Waite Zone.

Highlights

– Broad widths of high grade mineralization continue to be intercepted in the eastern portion of the current resource area

  • 3m of 0.31% Co and 0.31% Cu in ICS18-06B
  • 1m of 0.32% Co and 0.20% Cu in ICS18-05 (true widths)

– Massive sulphide intercepts between the main zones, including 6m of 1.12% Co within 5.3m of 0.49% Co (true width), enhance the continuity and size of higher grade cobalt mineralization near the underground workings

– Mineralization extended an additional 50m below the central portion of the current resource area at grades comparable to the resource estimate

– Three drill rigs on site to accelerate timing of updated resource estimate in early 2019

Trent Mell, President & Chief Executive Officer, commented:

“Today’s results infill and extend mineralization at depth between the eastern and western extents of the known resource area. We also continue to intercept higher grade mineralization between the two main zones. These results confirm the continuity and consistency of mineralization predicted by our geological model and add further support for the development vision for the future of the project as we build towards the updated resource estimate in early 2019.”

Drilling is ongoing to extend the strike length of the mineralized zone from over 500 metres to over 1,000 metres and test down dip extensions of known cobalt-copper zones from 150 metres to over 300 metres below surface. Results reported today include three holes in the central portion of the Iron Creek resource and three holes at the eastern margin of the known resource (Figures 1 and 2).

Surface drilling from the eastern side of the resource continues to intercept higher grades of mineralization in the No Name Zone, including 32.3m at 0.31% Co and 0.31% Cu in ICS18-06B and 21.1m at 0.32% Co and 0.20% Cu in ICS18-05 (true widths), improving the consistency of higher grade cobalt and copper mineralization within Adit#1 where massive sulphides were extracted for metallurgical testing.

True thickness estimated from 3D geological model also considering drill holes on strike. Cobalt equivalent is calculated as %CoEq = %Co + (%Cu/10) based on US$30/lb Co and US$3/lb Cu. No metallurgical recoveries were applied to either metal as it is expected that the metallurgical recoveries will be similar for both metals. Flotation tests support the Company’s opinion that both cobalt and copper are of sufficient grade to be recovered.

In general, recent results from drilling within the known resource area has identified several lenses of cobalt mineralization between the main massive sulphide horizons as well as within the hangingwall of the No Name Zone and footwall of the Waite Zone. Disseminated sulphides are also prevalent around the massive sulphide horizons, representing lower grade cobalt halos with potential for extraction by bulk mining methods (Figure 1). Future drilling in this area will continue to define the extent of the broader, lower grade zones of mineralization as well as target the massive sulphide horizons in the centre of this zone.

Assay results reported today from the central portion of the resource confirm grade and thickness of mineralization to approximately 50 metres below the known resource area, as well as infilling some gaps where historically, cobalt mineralization was considered sparse and limited to locally disseminated pyrite.

Two underground holes were drilled from Adit#2, IC18-24 and IC18-25, to test the upper portion of the Waite Zone and both returned comparable cobalt and copper grades to those of the Inferred Resource estimate. Hole IC18-24 was included in the September 2018 resource estimate while IC18-25, reported here, confirms grade and thickness of mineralization to approximately 50m below the known resource estimate (Figure 3). Drill holes from surface were designed to test the down dip extension of both the No Name and Waite mineralized horizons. Holes ICS18-01 and ICS18-04 confirm mineralization extends below the current resource estimate and mineralization remains open at depth. At depth, both holes also demonstrate metal zoning with higher grade copper concentrated in the hangingwall and higher grade cobalt in the footwall of the No Name Zone. In the Waite Zone, cobalt is prevalent over copper.

The three holes drilled at the eastern margin of the resource tested cobalt and copper grade as well as thickness of mineralization (Figure 4). Drill hole ICS18-05 encountered lenses of massive pyrite in the No Name Zone as well as immediately below the No Name Zone, with grades up to 1.03% Co over 1.4m and 1.12% Co over 1.6m (true widths) respectively. Similarly, hole ICS18-06B returned a relatively thick interval in the No Name Zone, as noted above. Higher grade copper sulphide lenses were also intersected immediately below the No Name Zone. Both holes infill an area of higher grade cobalt-copper mineralization extending 150m along strike of Adit#1 where massive sulphides were extracted for metallurgical testing. Hole ICS18-07 tested the down-dip extension of mineralization of both recognized zones where only few holes currently exist.

Iron Creek Property

First Cobalt announced on September 26, 2018 an Inferred Resource estimate at Iron Creek of 26.9 million tonnes grading 0.11% cobalt equivalent (0.08% Co and 0.30% Cu containing 46.2 million pounds of cobalt and 176.2 million pounds of copper) under a base case scenario pit constrained and deeper mineral resource. An alternative underground-only scenario results in 4.4 million tonnes grading 0.23% Co and 0.68% Cu (0.30% CoEq) using a cutoff underground grade of 0.18% CoEq and containing 22.3 million pounds of cobalt and 66.7 million pounds of copper. The Inferred Resource is based on drilling over a strike length of approximately 500 metres and a dip extent of over 150 metres. Preliminary metallurgical testing concludes that simple flotation methods are applicable, yielding recoveries of 96% for cobalt and 95% for copper in rougher floatation.

The Iron Creek property consists of patented mining claims surrounded by unpatented mining claims covering an area of 1,698 acres. Significant infrastructure is in place to support multiple drills and underground activity. Historic underground development includes 600 metres of drifting in three adits and an all-weather road connecting the project to a state highway.

Cobalt-copper mineralization at Iron Creek mineralization occurs within an east-west trending zone. Higher grade mineralization is contained along two horizons, the No Name and Waite Zones, that are roughly parallel and dip roughly 75° to the north, remaining open at depth and open along the east and west strike extensions. The No Name Zone and the Waite Zone have true widths between 10m and 30m. Mineralization also occurs between the No Name and Waite Zones as 1m to 5m pods.

Cobalt-copper mineralization occurs as semi-massive and disseminated pyrite and chalcopyrite along stratabound bands within finely layered meta-sedimentary rocks consisting of interbedded argillite and quartzite. Thin veins of sulfide minerals also cut the bands and meta-sedimentary rocks. Quartzite units make up the hangingwall and footwall to the mineralized meta-sedimentary horizon. This stratigraphic sequence has been mapped at surface and by drilling to extend along strike for at least two kilometres. The principal mineral assemblage consists of pyrite, chalcopyrite, pyrrhotite, and magnetite with much lesser quantities of native copper and arsenopyrite locally.

Quality Assurance and Quality Control

First Cobalt has implemented a quality control program to comply with industry best practices for sampling, chain of custody and analyses. Blanks, duplicates and standards are inserted at the core processing site as part of the QA/QC program. Samples are prepared and analyzed by American Assay Laboratories (AAL) in Sparks, Nevada. Over 15% of the samples analyzed are control samples consisting of checks, blanks, and duplicates inserted by the Company; in addition to the control samples inserted by the lab. Drill core samples are dried, weighed crushed to 85 % passing -6 mesh, roll crushed to 85% passing -10 mesh, split 250 gram pulps, then pulverized in a closed bowl ring pulverizer to 95 % passing -150 mesh, then analyzed by a 5 acid digestion for ICP analysis. All samples have passed QA/QC protocols.

Qualified and Competent Person Statement

Dr. Frank Santaguida, P.Geo., is the Qualified Person as defined by National Instrument 43-101 who has reviewed and approved the contents of this news release. Dr. Santaguida is also a Competent Person (as defined in the JORC Code, 2012 edition) who is a practicing member of the Association of Professional Geologists of Ontario (being a ‘Recognised Professional Organisation’ for the purposes of the ASX Listing Rules). Dr. Santaguida is employed on a full-time basis as Vice President, Exploration for First Cobalt. He has sufficient experience that is relevant to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code.

About First Cobalt

First Cobalt is a North American pure-play cobalt company whose flagship asset is the Iron Creek Cobalt Project in Idaho, USA, which has Inferred mineral resources of 26.9 million tonnes grading 0.11% cobalt equivalent. The Company’s other assets include 50 past-producing mines in the Canadian Cobalt Camp and the only permitted cobalt refinery in North America capable of producing battery materials.

On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer

For more information visit www.firstcobalt.com

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

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

Cautionary Note Regarding Estimates of Resources

Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. The estimate of mineral resources may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. The mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s "2014 CIM Definition Standards on Mineral Resources and Mineral Reserves" incorporated by reference into NI 43-101. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Economic Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work on the stated resources will lead to mineral reserves that can be mined economically. An Inferred Mineral Resource as defined by the CIM Standing Committee is "that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration."

Cautionary Note Regarding Forward-Looking Statements

This news release may contain forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects‘, “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the management discussion and analysis and other disclosures of risk factors for First Cobalt, filed on SEDAR at www.sedar.com. Although First Cobalt believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, First Cobalt disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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Orsu Metals reports multiple gold-mineralized intercepts in drill holes and trenches at Adit 5, Sergeevskoe Gold Project, Russia

Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) is delighted to announce drilling results from 15 drill holes and 3 trenches at Adit 5, as part of the extended 12,500 meters (‘m’) drilling program at its Sergeevskoe Gold Project in Russia. The program is designed to deliver an estimation of a maiden resource in Q4 2018.  

Highlights:

  • Fifteen drill holes and three trenches within a 450×250 m area at Adit 5 revealed 15 northwest- to northeast-striking gold-mineralized veins
  • The gold grade of mineralized intervals in drill holes at Adit 5 varies from 52 g/t Au to 3.07 g/t Au over a variable drill width of 2 to 21.8 m in primary quartz-sulfide veins, with higher grade mineralization, grading up to 6.49 g/t Au over 11.5 m, intercepted in oxidized material in trenches

Dr. Alexander Yakubchuk, Director of Exploration of Orsu commented: “Instead of finding the historically anticipated presence of 4 to 5 northwest-trending gold-quartz-sulfide veins at Adit 5, Orsu identified gold in 15 closely-spaced fan-shaped northwest to northeast-striking mineralized zones within a 450×250 m area. The vein swarms in the west and east of Adit 5 are grading on average between 0.52 g/t Au and 3.07 g/t Au over a variable drill width of 2 to 21.8 m to a depth of 100-200 m. The combined drill width of some closely spaced gold-mineralized veins, intercepted in individual drill holes varies from 4 to 61 m. In the north, mineralization at Adit 5 almost orthogonally joins the eastern part of Zone 23, therefore occurring on the southeastern flank of Zone 23. Orsu believes that gold mineralization at Adit 5 significantly expands the resource potential for the forthcoming NI43-101 estimate”.

Dr Sergey V Kurzin, Executive Chairman of Orsu, commented: “Results from the Adit 5 zone nicely complement the adjacent Zone 23 area, the backbone of the Sergeevskoe project, and will likely add to Orsu’s maiden mineral resource estimate. Our drilling contractors completed the work last week and are demobilizing now. Our geological team expects to receive all pending assays shortly and, supported by Orsu’s competent person, Wardell Armstrong International will immediately get down to work of estimating the maiden NI43-101 resource.”

The license of the Sergeevskoe Gold Project occurs immediately east from the Alexandrovskoe open pit and gold plant owned by Zapadnaya Gold Mining Ltd and to the west from the +6 Moz Klyuchevskoe gold deposit licensed to Sun Gold Mining (Figure 1)[1]. Orsu owns a 90% interest in the Sergeevskoe Gold Project (see Orsu press-release December 1, 2017).

Orsu has now received assay results for all 2018 drill holes and trenches at Adit 5. The quartz-tourmaline-sulfide veins are hosted primarily in the pre-mineral Permian granite intrusion, often controlled by the contacts of Jurassic diorite porphyry and granodiorite porphyry dykes.

The Northwestern Fault divides the Adit 5 area into western and eastern domains with dextral strike-slip sense of movement between them, interpreted based on truncation and offset of the dykes (Figure 2). Using the dykes as markers, the minimum displacement can be estimated in 100 m at least.

The orientation of the quartz-tourmaline-sulfide veins in the Adit 5 West domain is northwestern to northern, whereas in the Adit 5 East domain their strike is predominantly northeastern. Orsu identified 15 mineralized veins in each domain. Some of them may represent offset continuation of the same veins in the two domains.

Although the mineralization becomes narrow southward, it remains open in that direction and downdip. The gold-mineralized veins are widening to the north towards the eastern part of Zone 23, where veins in both Zone 23 and Adit 5 are truncated by the Shirotnyi Fault. In addition, north of the Shirotnyi fault are the gold-mineralized veins of the southern part of Klyuchi West, already reported for the drill holes SDH18-25, 26, 27, 28 (see Orsu press release July 16, 2018). Orsu drilled additional holes to test the downdip extent of mineralization, with results pending.

In Adit 5 West domain, the veins are steeply-dipping, with the westernmost veins dipping to the southwest (Figure 3). They reveal a propeller-like shape along the strike. There is increase in grade downdip even in comparison with the trenches, although in oxide is the widening of mineralized intervals, which also reveal supergene enrichment and higher gold grade.

In Adit 5 East domain, the veins are also steep (Figure 4), broadly northwest- to north-dipping. There is widening of mineralization in oxide zone, which developed down to 25-30 m from surface. In hypogene mineralization, the drilling demonstrated that the width of veins doubles at deeper levels. The mineralization remains open downdip.

The above interpretations are based on selection of the previously and newly-reported mineralized intervals, based on a 0.5 g/t Au cut-off for compositing, with maximum 2 m length of 0.3-0.5 g/t Au mineralization included into a mineralized interval. Composited intervals in drill holes are presented uncapped (Table 1).

Quality Assurance – Quality Control (“QA/QC”)

Thorough QA/QC protocols are followed on the project including insertion of duplicate, blank and standard samples in all trenches. Duplicate samples were inserted after every 20 samples. All standard samples were inserted once per 20 samples. Blanks were also inserted once per 20 samples and consisted of the previously assayed barren granitoid rocks.

Drill core samples were submitted directly to the SGS Vostok laboratories in Chita, Russia, which are independent from Orsu, for sample preparation and analysis. Analysis for Au is performed using fire assay method with atomic absorption (“AA”) finish and with a gravimetric finish for samples exceeding 10 g/t Au. Results published are from the gravimetric finish if above 10 g/t Au and from the AA finish if lower than 10 g/t Au.

Qualified Person

This release and the technical data reported have been reviewed and approved by Alexander Yakubchuk, Director of Exploration of the Company, also a Qualified Person as defined in NI 43-101.

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.

Cautionary Statement:
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

For further information, please contact:
Alexander Yakubchuk, Director of Exploration, Orsu Metals Corporation
Doris Meyer, Corporate Secretary, Orsu Metals Corporation
Tel: +1-604-536-2711 ext 6
www.orsumetals.com 

[1] Business Standard, a leading Indian daily newspaper, reported on 21 September 2018 that “Chinese company China National Gold will invest about $420 million in the development of the Klyuchevskoye gold deposit in Russia, while another $65 million will be invested by India’s SUN Gold. The annual production volume is expected at about 6.5 metric tons of gold per year, the Russian Industry and Trade Ministry reported.”

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TerraX purchases the Tom Mine and Sickle Properties

TerraX Minerals Inc. (TSX-V: TXR; Frankfurt: TX0; OTC Pink: TRXXF – http://www.commodity-tv.net/…) is pleased to announce the purchase of a 100% interest in the Tom Mine (6 sq km)and Sickle (2 sq. km) properties from Altamira Gold Corp. These properties increase the area of the YCGP from 772 square kilometers to 780 square kilometers. A map of the property locations is available here.

As part of the agreement, TerraX will pay Altamira a total of $25,000 cash and 250,000 shares of TerraX. Altamira will retain a 2% NSR royalty. The agreement is subject to the approval of the TSX-V exchange and is expected to close by the end of September.

David Suda, the Chief Executive Officer and President of TerraX stated "While results from our summer exploration program continue to fill our pipeline of focused targets; our team continues to build the world class land package. We are pleased to have completed and amicable transaction with Altamira."

The Tom Mine was a gold producer in the Yellowknife gold district from 1985-1997. The Tom and C vein systems were accessed by ramp to 122 vertical metres over 300 metres of strike length. The Tom Mine production was milled at the Ptarmigan Mine (January 12, 2018 press release) so separate production records for the Tom Mine are not available. The Tom Mine gold ore has the same characteristics as the Ptarmigan Mine which is free milling with reported recovery of 94%. When the mine closed in 1997 the veins were still open at depths below the current mine workings. (Source: The Operational History of Mines in the Northwest Territoies, R. Silke, 2009; and Treminco Resources Limited, Annual report 1990). The southern portion of the property is contiguous with the Ptarmigan Gold Mine property. TerraX has no liability for any remediation of the previous mine site.

The Sickle property is underlain by the Walsh Lake sediments, which are host to TerraX’s Mispickle Zone (September 22, 2016, press release). Several historic gold showings occur on the property with gold values up to 4 g/t.

David Suda, the Chief Executive Officer and President of TerraX stated "While results from our summer exploration program continue to fill our pipeline of focused targets; our team continues to build the world class land package. We are pleased to have completed and amicable transaction with Altamira."

Joseph Campbell, the Executive Chairman of the Board of TerraX, stated "The purchase of the Tom Mine property gives TerraX access to another gold bearing vein system similar to the past producing Ptarmigan Mine, which TerraX owns. The property is also near paved road access to Yellowknife and high-tension powerlines that are connected to the past producing Ptarmigan Gold Mine. The purchase of the Sickle property gives TerraX an additional 5 kilometers of strike length in the gold bearing Walsh Lake sediments."

The technical information contained in this news release has been approved by Joseph Campbell, the Executive Chairman of the Board of TerraX, who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects."

About the Yellowknife City Gold Project

The Yellowknife City Gold ("YCG") project encompasses 780 sq km of contiguous land immediately north, south and east of the City of Yellowknife in the Northwest Territories. Through a series of acquisitions, TerraX controls one of the six major high-grade gold camps in Canada. Being within 10 km of the City of Yellowknife, the YCG is close to vital infrastructure, including all-season roads, air transportation, service providers, hydroelectric power and skilled tradespeople.

The YCG lies on the prolific Yellowknife greenstone belt, covering 70 km of strike length along the main mineralized break in the Yellowknife gold district, including the southern and northern extensions of the shear system that hosted the high-grade Con and Giant gold mines. The project area contains multiple shears that are the recognized hosts for gold deposits in the Yellowknife gold district, with innumerable gold showings and recent high-grade drill results that serve to indicate the project’s potential as a world-class gold district.

For more information on the YCG project, please visit our web site at www.terraxminerals.com.

On behalf of the Board of Directors

"JOSEPH CAMPBELL"

Joe Campbell

Executive Chairman of the Board

For more information, please contact:

Samuel Vella

Manager of Corporate Communications

Phone: 604-689-1749

Toll-Free: 1-855-737-2684

svella@terraxminerals.com

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.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, the results of financing efforts, the completion of due diligence and the results of exploration activities – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

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Bluestone Unternehmens-Update

Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company" – http://www.commodity-tv.net/c/search_adv/?v=298564) is pleased to provide the following corporate update on the recent progress of the Company.

John Robins, Executive Chairman commented, “In just over 15 months since acquiring the Cerro Blanco Gold and Mita Geothermal projects, Bluestone has advanced from what was effectively a shell company to one that is rapidly advancing these high-quality projects. Bluestone has successfully assembled an executive team with extensive development and Latin American experience; the skills necessary to advance these projects to maximize value for our many stakeholder groups including local communities in Guatemala, government partners, and our supportive shareholders.”

A Feasibility Study led by JDS Energy & Mining Inc. was initiated on the Cerro Blanco Gold project in late 2017 and is well advanced. Shortly after commencing the Feasibility Study, Bluestone management assembled a Technical Advisory Committee (“TAC”) to act as a peer review over key technical aspects of the study as it progresses. Bluestone was very fortunate to establish a group of internationally recognized technical experts who have been engaged with management and the JDS area leads over the past nine months on the Feasibility Study. Chaired by Alf Hills, the additional TAC members are Scott Donald (Hydrology), Allan Moss (Mining), Roger Nendick (Processing and Infrastructure), Robert Sim (Resource Estimation), and Dr. Ward Wilson (Waste Management).  

Darren Klinck, President & CEO commented, “It is very rare that a Company the size of Bluestone looks to establish a peer review (TAC) over a technical study such as this, and even rarer to have access to an esteemed group with such a diverse and international base of experience. This approach is consistent with our objective to leverage past experiences with new technology and innovation to ensure long-term success and viability for the Company and its stakeholders.”  

A comprehensive review of the geology and structural controls of the deposit was completed as a basis for an updated resource estimate. This program entailed the re-logging of drill core and detailed surface and underground structural mapping led by UK-based consultants, Specialised Geological Mapping Ltd. This work resulted in a better understanding of the deposit and has been a key foundation in the development of the vein models and guiding infill drilling and exploration for new high-grade veins. Preliminary geology domain and vein wireframes are complete and have validated the work of the structural study. Final models will be adjusted with surface and underground drilling and sample results as part of the updated resource estimate expected imminently.

An infill drill program was completed by Bluestone that focused on under-drilled areas and new targets adjacent to the resource envelope. The program was successful in refining the resource model that is nearing completion. A total of approximately 11,000 meters was drilled from both surface and from the 3.2 km of underground workings at Cerro Blanco, representing the first drilling on the project since 2012.

Significant broad intervals of gold and silver mineralization were intercepted as outlined in press releases dated April 17, 2018, May 15, 2018 and May 30, 2018, highlights include (true widths):
 

  • 5 meters at 5.8 g/t Au and 18.6 g/t Ag
  • 7 meters at 5.5 g/t Au and 17.2 g/t Ag
  • 3 meters at 16.0 g/t Au and 29.1 g/t Ag
  • 0 meters at 15.0 g/t Au and 32.5 g/t Ag
  • 1 meters at 16.2 g/t Au and 20.6 g/t Ag
  • 0 meters at 17.2 g/t Au and 94.9 g/t Ag
  • 3 meters at 32.7 g/t Au and 79.6 g/t Ag
  • 0 meters at 16.7 g/t Au and 105.4 g/t Ag
  • 3 meters at 14.3 g/t Au and 68.5 g/t Ag

Darren Klinck, President and CEO commented, “The infill drilling program achieved its objective and enhanced our confidence in the continuity of the high-grade veins and geologic model. Results validated our understanding and interpretation of the new geological interpretation of the deposit and will be fundamental to the updated resource estimate expected shortly. In addition, the resource estimation work continues to highlight low-grade envelopes surrounding the high-grade veins and disseminated mineralization in cover rocks which adds to the total inventory of ounces at the Cerro Blanco Gold project. The low-grade disseminated resource first outlined in the PEA last year will also be updated and, while not the focus of the Feasibility Study, is expected to demonstrate resources at lower cut-off grades identified to date at the Cerro Blanco Gold project.”

Generative exploration work continues and a detailed exploration, mapping, and targeting exercise was carried out to identify high priority exploration drill targets outside the current high-grade deposit footprint. An initial drill program on some of these targets recently commenced.

Mobile underground mining equipment was acquired from the Marlin mine and has been utilized for underground mining and development activities associated with the underground exploration program. Additionally, 12 MW of CAT generators and associated transformers and switch gear were purchased and delivered to site for future use.

Flow testing of select geothermal wells was completed at the Mita Geothermal project. Equipment was installed onsite and four geothermal wells were tested for power generation capabilities. Multiple wells were flow tested for extended durations. The data collected fed into a new reservoir calculation that is expected to demonstrate an economic geothermal resource, as well as an estimated power generation capacity for a potential first phase project. Further drilling and follow up on the deeper reservoir, projected beneath the Mita geothermal concession, could have the potential to increase the projected power generation capabilities in the future.

Further studies are ongoing in this area in conjunction with synergies from the Cerro Blanco Gold project. Bluestone envisions a staged approach, with Phase 1 being a smaller operation that could supplement power requirements to the mine or be sold into the privatized national grid. A larger development could then be examined in the future as a Phase 2.

Several initiatives establishing business processes in human resources, risk management, and health and safety commenced as part of preparations for advancement beyond completion of the Feasibility Study. In addition to working with expert consultants and non-government organizations to enhance and broaden our stakeholder management and engagement priorities, Bluestone is pleased to have commenced work with local and international industry-leading partners to help bolster the Company’s capacity. The Company undertook an exercise to engage the workforce in Guatemala and in Canada to establish a vision, mission, and corporate values. This initiative was very well received and has formed an important part of the fabric of our values-based organization.

As part of the Company’s capital markets initiatives, the Company’s common shares were listed on the OTCQB Venture under the symbol "BBSRF" and are DTC eligible. This is consistent with the goal of increasing the liquidity and convenience of trading within the U.S. market place.  Additionally, Bluestone now has six brokerage firms providing research coverage on the Company demonstrating the quality of the assets and confidence in the strategy at Bluestone.

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. The Cerro Blanco Gold project economics, as disclosed in the Company’s Cerro Blanco Preliminary Economic Assessment which is available at www.sedar.com, and updated mineral resource estimate for Cerro Blanco, indicate a robust project with an expected nine-year mine life producing 952,000 ounces of gold and 3,141,000 ounces of silver. Initial capital expenditures estimated in the PEA to fund construction and commissioning is estimated at US$170.8 million with all-in sustaining cash costs (as defined per World Gold Council guidelines, less corporate general and administration costs) estimated to be US$490 per ounce of gold produced. The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.

On Behalf of Bluestone Resources Inc.

"Darren Klinck"

Darren Klinck | President, Chief Executive Officer & Director

 

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

Qualified Person

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

Cautionary Language

The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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.

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 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 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; risks relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; 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.

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