Highgold drills 74.1 m of 17.9 g/t Au at Johnson
Highgold Mining Inc. has released assay results for the first two holes of a 15,000-metre drill program currently under way at its flagship Johnson Tract gold project in Alaska. Results are reported for drill holes that targeted the lower and northeast side of the JT Deposit. Wide intervals of high-grade mineralization were intersected in both holes (Table 1 and Figure 1). A complete list of assay sample results for the JT20-092 intersection is provided in Table 2.
Read MoreSignificant new JT Deposit expansion drill intersections Drill HoleFrom(meters)To(meters)Length(meters)ETW(meters)Au(g/t)Ag(g/t)Cu% Zn% Pb% AuEq(g/t) JT20-092 269.4 343.5 74.1 37.1 17.89 7.1 0.487.28 1.31 23.8 Including 317.5 331.5 14.0 7.0 53.22 8.1 0.192.34 0.59 55.31 JT19-093 256.9 300.4 43.5 28.0 1.35 12.1 1.988.54 0.80 9.9 Including 256.9 275.0 18.1 11.8 1.22 11.7 2.4714.911.14 14.5
Notes: Estimated true width (“ETW”) is the width of the mineralized interval measured perpendicular to average dip of the zone. Length-weighted intervals are uncapped and calculated based on a 2 g/t gold equivalent cut-off. Gold equivalent (“AuEq”) is calculated by the same formula and assumptions used to report the JT Deposit NI43-101 Resource (effective date April 29, 2020) with metal prices of $1350/oz gold, $16/oz silver, $2.80/lb copper, $1.20/lb zinc, $1.00/lb lead and does not consider metal recoveries.
“HighGold’s 2020 drill program has started right where we left off last season with the intersection of exceptional widths of high-grade mineralization,” commented President and CEO Darwin Green. “These intersections continue to confirm and expand the mineralized zone and, more importantly, include higher-grade mineralization than the closest neighboring drill holes. The results also support our exploration model which suggests that the lower part of the known JT Deposit, the thickest and highest-grade portion, is open to expansion. One drill rig continues to systematically test this resource expansion target, while two other drill rigs remain focused on surrounding targets including the high-priority NE Offset area.”
Discussion of Drill Results
Drill hole JT20-092 tested an area below the last hole of the 2019 season with the objective of better defining the down-dip extent of the JT Deposit and confirming a subzone of very high-grade gold. Hole JT20-092 successfully intersected 74.1 meters grading 17.89 g/t gold, 7.1 g/t silver, 0.48% copper, 7.28% zinc and 1.31% lead (23.8 g/t AuEq; estimated true width 37.1m). The gold grade of this intersection (17.89 g/t) is 79% higher than JT19-90, located approximately 15 to 20 meters up-dip, which returned 75.1 meters grading 10.01 g/t gold, 6.0 g/t silver, 0.57% copper, 9.36% zinc and 1.11% lead (estimated true width 40.6m). The zone of thick high-grade mineralization is open to expansion and remains a focus of ongoing drilling.
Hole JT20-093 intersected strong base metal grades along the open northeast edge of the JT Deposit, including 43.5 meters grading 1.98% copper, 8.45% zinc and 1.35 g/t gold (9.9 g/t AuEq; estimated true width of 28.0m). This drill intersection expanded both the width and up-dip extent of the mineralized zone in the area that was tested.
Location of the new drill intersections are presented on a long section in Figure 1.
Drill Progress Update
A total of 8,000 meters (15 holes) out of a planned minimum 15,000 meters has been completed to date. This includes the completion of eight drill holes at the JT Deposit expansion targets, four drill holes at the NE Offset target, and three drill holes at the North Trend target. Assay results are pending for all but the first two drill holes reported in this news release. Assay turnaround times are significantly longer than normal due to a large increase in sample volumes at sample preparation facilities and analytical labs following a rapid industry-wide resurgence in mineral exploration, further compounded by impacts related to government and industry mandated Covid-19 policies. The Company is working with its commercial laboratory contractors to shorten turn-around times; however, neither the Company nor the labs can give accurate guidance on timing for the receipt of future assay results.
About HighGold
HighGold is a mineral exploration company focused on high-grade gold projects located in North America. HighGold’s flagship asset is the high-grade Johnson Tract Gold (Zn-Cu) Project located in accessible Southcentral Alaska, USA that contains an Indicated Resource of 2.14 Mt grading 10.93 g/t gold equivalent (AuEq) for 750,000 ounces AuEq and an additional Inferred Resource of 0.58 Mt grading 7.16 g/t gold equivalent for 134,000 ounces AuEq (for additional details see notes below and Technical Report titled “Initial Mineral Resource Estimate for the Johnson Tract Project, Alaska” dated June 15, 2020) along with excellent exploration potential indicated by several other prospects over a 12-kilometer strike length. The Company also controls a portfolio of quality gold projects in the greater Timmins gold camp, Ontario, Canada that includes the Munro-Croesus Gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Golden Perimeter properties. HighGold’s experienced Board and senior management team, are committed to creating shareholder value through the discovery process, careful allocation of capital, and environmentally/socially responsible mineral exploration.
Ian Cunningham-Dunlop, P.Eng., VP Exploration for HighGold Mining Inc. and a qualified person (“QP”) as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.
Complete list of sample results for drill hole JT20-092 intersection of 74.1 meters grading 17.89 g/t gold, 7.1 g/t silver, 0.48% copper, 7.28% zinc, 1.31% lead (Part 1) From(meters)To(meters)Length(meters)Au(g/t)Ag(g/t)Cu% Zn% Pb% AuEq(g/t) 269.4 270.4 1.0 0.16 2.4 0.2416.350.03 10.5 270.4 271.3 0.9 0.53 23.7 1.7245.617.06 34.6 271.3 271.7 0.4 0.09 1.2 0.071.87 0.19 1.4 271.7 272.7 1.0 2.38 35.5 0.4244.088.46 34.6 272.7 273.7 1.0 4.64 18.7 0.5553.634.00 40.4 273.7 274.7 1.0 25.30 10 0.7921.801.66 40.7 274.7 275.7 1.0 6.09 6.2 0.4322.402.23 21.6 275.7 276.7 1.0 9.55 5.4 0.4217.351.11 21.3 276.7 277.5 0.8 8.69 4.2 0.2511.350.66 16.3 277.5 278.3 0.8 5.46 13.9 0.3643.904.92 35.4 278.3 279.3 1.0 4.74 2 0.086.43 0.29 8.9 279.3 280.3 1.0 9.39 3.4 0.128.53 0.48 15 280.3 281.3 1.0 3.45 2.7 0.063.32 0.95 6.1 281.3 282.3 1.0 2.25 8.2 2.168.61 1.06 11.2 282.3 283.3 1.0 8.90 20.7 2.408.03 0.54 17.7 283.3 284.3 1.0 22.20 4.8 0.267.75 0.28 27.5 284.3 285.1 0.8 2.05 1.4 0.122.54 0.26 3.9 285.1 285.6 0.5 0.08 0.3 0.060.52 0.09 0.5 285.6 286.8 1.2 1.06 5 0.715.75 1.52 6.4 286.8 287.3 0.5 7.58 3.2 0.146.08 0.83 11.9 287.3 288.0 0.7 1.24 1.5 0.064.60 0.28 4.3 288.0 289.0 1.0 32.30 18.6 3.089.81 2.65 44.2 289.0 290.0 1.0 6.46 22.8 0.5319.9513.40 26.4 290.0 291.0 1.0 32.70 41.1 0.9534.065.54 58.1 291.0 292.0 1.0 2.25 27.3 1.2624.408.53 23.6 292.0 293.0 1.0 7.38 15.9 0.9214.306.64 21 293.0 294.0 1.0 8.71 3.4 0.3215.500.06 18.7 294.0 295.0 1.0 0.96 0.6 0.070.56 0.05 1.4 295.0 296.0 1.0 10.10 2.6 0.092.10 0.99 12 296.0 297.0 1.0 5.91 2.8 0.234.70 1.48 9.9 297.0 298.0 1.0 12.15 4.8 0.6511.250.48 20.2 298.0 299.0 1.0 8.69 20.2 3.662.10 0.18 15.5 299.0 300.0 1.0 8.98 2.9 0.491.04 0.05 10.4 300.0 301.0 1.0 2.87 1.6 0.580.52 0.04 4.1 301.0 302.0 1.0 28.50 10.3 2.020.81 0.24 32.1 302.0 303.0 1.0 31.30 7.3 1.180.61 0.28 33.6 303.0 304.0 1.0 54.00 8.3 0.220.99 0.93 55.5 304.0 305.0 1.0 22.30 3.9 0.321.92 0.30 24.1 Complete list of sample results for drill hole JT20-092 intersection of 74.1 meters grading 17.89 g/t gold, 7.1 g/t silver, 0.48% copper, 7.28% zinc, 1.31% lead (Part 2) From(meters)To(meters)Length(meters)Au(g/t)Ag(g/t)Cu% Zn% Pb% AuEq(g/t) 305.0 306.0 1.0 46.00 6.8 0.301.951.96 48.7 306.0 307.0 1.0 15.75 2.8 0.200.450.06 16.4 307.0 308.0 1.0 26.80 4.3 0.251.890.14 28.4 308.0 309.0 1.0 5.80 4 0.412.450.10 8 309.0 310.0 1.0 2.77 1.8 0.150.530.03 3.3 310.0 311.0 1.0 5.02 8.4 0.157.695.85 13 311.0 312.0 1.0 4.31 3.5 0.425.172.06 9.1 312.0 313.0 1.0 2.98 1.4 0.210.940.34 4 313.0 314.0 1.0 2.80 1.1 0.100.410.11 3.3 314.0 315.0 1.0 11.90 1.7 0.120.510.09 12.4 315.0 315.5 0.5 2.18 0.3 0.080.130.01 2.4 315.5 316.5 1.0 5.55 1.7 0.180.820.34 6.5 316.5 317.5 1.0 12.55 3.2 0.351.360.43 14.1 317.5 318.5 1.0 25.50 5.8 0.343.530.40 28.4 318.5 319.5 1.0 43.10 7.7 0.301.770.54 45 319.5 320.5 1.0 17.45 3.6 0.291.000.16 18.6 320.5 321.5 1.0 27.50 7.8 0.141.403.26 30.3 321.5 322.5 1.0 0.45 0.3 0.071.200.29 1.4 322.5 323.5 1.0 91.30 10 0.331.600.33 93 323.5 324.5 1.0 179.00 22.6 0.234.410.55 182.6 324.5 325.5 1.0 122.00 18.4 0.231.470.59 123.7 325.5 326.5 1.0 8.57 1.6 0.061.340.22 9.6 326.5 327.5 1.0 43.90 7.4 0.133.500.45 46.5 328.5 329.5 1.0 15.65 2.5 0.101.500.19 16.8 329.5 330.5 1.0 80.90 11.8 0.216.100.47 85.3 330.5 331.5 1.0 27.90 4.5 0.091.800.47 29.4 331.5 332.5 1.0 2.96 1.1 0.081.170.48 4 332.5 333.5 1.0 3.55 1 0.332.580.04 5.6 333.5 334.5 1.0 0.35 0.7 0.182.230.04 2 334.5 335.5 1.0 1.20 1.3 0.435.760.01 5.3 335.5 336.5 1.0 0.25 0.3 0.061.900.00 1.5 336.5 337.5 1.0 5.71 1.2 0.191.420.00 6.9 337.5 338.5 1.0 0.43 0.3 0.111.010.00 1.2 338.5 339.5 1.0 13.95 1.8 0.040.620.00 14.4 339.5 340.5 1.0 7.28 1.2 0.120.660.00 7.9 340.5 341.5 1.0 1.67 0.6 0.070.120.00 1.9 342.5 343.5 1.0 3.50 0.9 0.200.680.00 4.2
* Gold equivalent (“AuEq”) is calculated by the same formula and assumptions used to report the JT Deposit NI43-101 Resource (effective date April 29, 2020) with metal prices of $1350/oz gold, $16/oz silver, $2.80/lb copper, $1.20/lb zinc, $1.00/lb lead and does not consider metal recoveries.
Additional notes:
Starting azimuth and dip for drill holes JT19-092 and 093 are 306/-79.2 and 310/-82. Samples of drill core were cut by a diamond blade rock saw, with half of the cut core placed in individual sealed polyurethane bags and half placed back in the original core box for permanent storage. Sample lengths typically vary from a minimum 0.5 meter interval to a maximum 2.0 meter interval, with an average 1.0 to 1.5 meter sample length. Drill core samples are shipped by air and transport truck in sealed woven plastic bags to ALS Minerals sample preparation facility in Fairbanks, Alaska for sample preparation and from there by air to ALS Minerals laboratory facility in North Vancouver, BC for analysis. ALS Minerals operate according to the guidelines set out in ISO/IEC Guide 25. Gold is determined by fire-assay fusion of a 50 g sub-sample with atomic absorption spectroscopy (AAS). Samples that return values >100 ppm gold from fire assay and AAS are determined by using fire assay and a gravimetric finish. Samples with visible gold or suspected of having exceptionally high grade are submitted for metallic screen gold analysis on a larger sub-sample. Various metals including silver, gold, copper, lead and zinc are analyzed by inductively-coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion. The elements copper, lead and zinc are determined by ore grade assay for samples that return values >10,000 ppm by ICP analysis. Silver is determined by ore grade assay for samples that return >100 ppm.
The Company has a robust QAQC program that includes the insertion of blanks, standards and duplicates.
The Indicated Resource of 2.14 Mt grading 10.93 g/t gold equivalent (AuEq) is comprised of 6.07 g/t Au, 5.8 g/t Ag, 0.57% Cu, 0.80% Pb and 5.85% Zn. The Inferred Resource of 0.58 Mt grading 7.16 g/t gold equivalent is comprised of 2.05 g/t Au, 8.7 g/t Ag, 0.54% Cu, 0.33% Pb, and 6.67% Zn. Gold Equivalent (“AuEq”) is based on assumed metal prices and 100% recovery and payabilities for Au, Ag, Cu, Pb, and Zn. Assumed metal prices are US$1350/oz for gold (Au), US$16/oz for silver (Ag), US$2.80/lb for copper (Cu), US$1.00/lb for lead (Pb), and US$1.20/lb for zinc (Zn) and are based on nominal 3-year trailing averages as of April 1, 2020.
Galway Metals drills 16 m of 4.1 g/t Au at Clarence
Galway Metals Inc. has released assay results from drilling on the west side of the Richard zone at the company’s Clarence Stream project in southwestern New Brunswick, Canada.
Read MoreThe latest results are highlighted by:Hole 106 intersected 54.7 grams per tonne (g/t) Au over 2.5 metres (m), including 191.0 g/t Au over 0.5m Visible Gold (VG) (previously released), plus 0.9 g/t Au over 54.2m (VG at 200.45m assayed 14.6 g/t Au over 0.5m), plus 10.0 g/t Au over 4.5m, starting at vertical depths of 86m, 196m, and 330m below surface, respectively (Figure 3).The VG at 200.45m is 30m west of an intersection of 44.1 g/t Au over 9.5m (within 10.6 g/t Au over 47.0m) in hole 87. The 10.0 g/t Au over 4.5m is the deepest intersection in the Richard Zone and is generally in-line with the deepest intersects in hole BL20-88 at the neighboring George Murphy Zone that returned 6.5 g/t Au over 14.05m and 4.9 g/t Au over 2.35m at vertical depths of 321m and 335m, respectively.Hole 109 is the first of 5 new holes located 100 metres west of the Richard Zone (Figure 4, and Figure 5). It intersected 4.1 g/t Au over 16.0m, including 22.7 g/t Au over 1.0m, and 65.7 g/t Au over 0.5m, plus 1.0 g/t Au over 14.0m, including 7.6 g/t Au over 1.0m, plus 1.3 g/t Au over 5.0m (VG assayed 2.2 g/t), including 3.4 g/t Au over 1.0m starting at a vertical depths of 180m, 221m, and 155m below surface. The other 4 holes are pending assays.
Robert Hinchcliffe, President and CEO of Galway Metals, said, "The Richard Zone has been extended 100 metres west with continuous mineralization now over 400 metres along strike. It has also been extended to depths in-line with the deepest intersections in the George Murphy Zone, and all Zones at Clarence Stream remain open at depth, along strike and laterally. With $22M in cash, Galway's recently expanded 75,000m drill program is fully-funded through the end of 2021. Our aim is to not only expand the existing zones, but to also continue making new discoveries to further demonstrate that Clarence Stream is an important new gold district in North America."
Hole 109 is the first of 5 new holes located 100 metres west of the previous western limit of the Richard Zone; the rest are pending assays (Figure 5). The mineralization lines up nicely with the main (middle) vein. Hole 106 also intersected the main (middle) vein with 0.9 g/t Au over 54.2m, and an interpreted splay structure that returned an interval of 10.0 g/t Au over 4.5m. This latter intersection is the deepest in the Richard Zone. The southern zone (previously-released 54.7 g/t Au over 2.5m) was also intersected in hole 106, and this intersection is interpreted to be the western extension of the discovery hole intersection that returned 7.3 g/t Au over 36.7m, located 184m to the east. Hole 94 was drilled out of the western plunge of the zones, and so missed the mineralization.
Galway's drill program over the next several months is to utilize 5 rigs, up from 3, in the following ways:to continue drilling the 2 gaps between the George Murphy, Richard and Jubilee Zones;to tighten drill spacings in these zones – generally to 50 metres for inclusion in the Q1/21 resource update;to follow-up on the recent new discovery that returned 186.5 g/t Au over 0.6m located 950m SW and along strike of the western-most intersection of the Jubilee Zone;to follow-up on the recent new discovery that returned 13.4 g/t Au over 12.95m located 320 metres NE of a previously-reported new vein intersection of 11.4 g/t Au over 2.0m, including 43.5 g/t Au over 0.5m, which is part of several new veins that had been discovered 75 metres north of the George Murphy Zone (GMZ) and will also be followed up, andwildcat drilling will also take place north of the North Zone, east and north of the GMZ, the new properties acquired in August (following up on historical intersections of 5.2 g/t Au over 2.5m and 3.7 g/t Au over 3.0m, etc., 20 km west of the South Zone), and on the 4km+ high-grade gold-in-soil anomaly beginning 1km on strike to the SW of the new 186.5 g/t Au over 0.6m discovery.
Assay ResultsHole ID From(m)To(m) Intercept(m)Intercept(m) TW(Unknown if not noted)Aug/t RICHARD ZONE GWM-20BL-10680.0 81.0 1.0 0.7 0.6** 87.3 89.8 2.5 1.8 54.7** incl. 87.8 88.3 0.5 0.4 46.1** incl. 88.3 88.8 0.5 0.4 191.0 VG** incl. 88.8 89.8 1.0 0.7 13.5** 146.3 200.5 54.2 38.5 0.9 incl. 151.85 153.351.5 1.1 6.9 incl. 158.0 159.0 1.0 0.7 2.2 incl. 175.0 177.0 2.0 1.4 2.5 incl. 180.0 181.0 1.0 0.7 3.0 incl. 200.0 200.5 0.5 0.4 14.6 213.0 214.0 1.0 1.0 226.0 227.0 1.0 0.5 243.0 244.0 1.0 1.3 246.0 247.0 1.0 0.5 262.0 263.0 1.0 1.5 269.0 272.0 3.0 0.7 274.0 275.0 1.0 0.9 287.75 288.3 0.55 0.6 304.5 306.0 1.5 1.9 336.0 340.454.45 10.0 incl. 336.0 337.0 1.0 42.0 347.0 348.0 1.0 2.5 367.0 370.0 3.0 0.6 GWM-20BL-1090 128.0 PENDING 166.0 171.0 5.0 1.3 incl. 170.0 171.0 1.0 3.4 174.0 175.0 1.0 0.6 181.0 182.0 1.0 0.7 193.0 209.0 16.0 4.1 incl. 196.0 197.0 1.0 22.7 incl. 206.0 206.5 0.5 65.7 237.0 251.0 14.0 1.0 incl. 240.0 241.0 1.0 7.6 271.0 350.0 PENDING GWM-20BL-94 99.0 100.0 1.0 1.1 137.0 138.0 1.0 0.6 338.0 339.351.35 0.7
New Brunswick Junior Mining Assistance Program
Galway would like to acknowledge financial support from the New Brunswick Junior Mining Assistance Program, which partially funded drilling of the GMZ, Jubilee, and Richard Zones.
Geology and Mineralization
The recent discovery of the Richard Zone in hole 12 contains elevated levels of bismuth, arsenopyrite, and antimony, in multiple quartz veins, with tungsten in the vicinity. This is similar to other Clarence Stream deposits, which can be characterized as intrusion-related quartz-vein hosted gold deposits. Richard Zone contains multiple zones of quartz veining with sulfides and sericite alteration. In general, mineralization at Clarence Stream consists of 10-70% quartz stockworks and veins with 1-5% fine pyrite plus pyrrhotite plus arsenopyrite plus stibnite in sericite altered sediments. The Jubilee mineralization consists of 2%-5% disseminated pyrite, sphalerite, galena, arsenopyrite, chalcopyrite, and pyrrhotite in sediments with white to smoky grey quartz veining. Locally there is up to 10% sphalerite and semi-massive galena veinlets. The 2.5 km trend that hosts the GMZ, Richard and Jubilee Zones contains a mineralized mafic intrusive locally – similar to the South Zone, which currently hosts most of the property's last reported gold resources (September 2017). A more complete description of Clarence Stream's geology and mineralization can be found at http://www.galwaymetalsinc.com.
Review by Qualified Person, Quality Control and Reports
Michael Sutton, P.Geo., Director and VP of Exploration for Galway Metals, is the Qualified Person who supervised the preparation of the scientific and technical disclosure in this news release on behalf of Galway Metals Inc. All core, chip/boulder samples, and soil samples are assayed by Activation Laboratories, 41 Bittern Street, Ancaster, Ontario, Canada, who have ISO/IEC 17025 accreditation. All core is under watch from the drill site to the core processing facility. All samples are assayed for gold by Fire Assay, with gravimetric finish, and other elements assayed using ICP. The Company's QA/QC program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at one per 20 samples. Approximately five percent (5%) of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99%.Figure 1: Plan Map of the George Murphy, Richard and Jubilee ZonesImage: https://galwaymetalsinc.com/wp-content/uploads/2020/09/Figure-1-1-300×182.jpgFigure 2: Plan Map of the Richard ZoneImage: https://galwaymetalsinc.com/wp-content/uploads/2020/09/Figure-2-300×232.jpgFigure 3: Section C of the Richard Zone Image: https://galwaymetalsinc.com/wp-content/uploads/2020/09/Figure-3-300×232.jpgFigure 4: Section E of the Richard Zone Image: https://galwaymetalsinc.com/wp-content/uploads/2020/09/Figure-4-300×232.jpgFigure 5: Longitudinal Section BImage: https://galwaymetalsinc.com/wp-content/uploads/2020/09/Figure-5-300×232.jpg
Fiore Gold’s Pan Mine Receives Mine Operator Safety Award from Nevada Mining Association for Fifth Consecutive Year
VANCOUVER, BC / ACCESSWIRE / September 9, 2020 / FIORE GOLD LTD. (TSXV:F)(OTCQB:FIOGF)(FSE:2FO) (“Fiore” or the “Company”) is pleased to announce that the Pan Mine has been awarded the 2020 Nevada Mining Association (“NVMA”) Mine Operator Safety Award in the small mines category (Nevada Mining Association Announces 2020 Operator Safety Awards). The Pan Mine also received this award in 2019, 2018, 2017 and 2016.
Read MoreThe NVMA Safety Awards are based on performance in the previous calendar year. Awards are given to the top mines in designated categories based on their safety rate, which is calculated through a formula that factors the number of employees on site, number of hours worked in 2019, penalties for lost-time accidents, number of reportable incidents, and lost-time days.
In addition to the award, the Pan Mine is proud to have completed 216,453 total site man-hours worked through Q3 fiscal 2020 with no reportable environmental incidents and zero lost-time injuries.
Andy Britton, Pan Mine’s General Manager, commented, “Even though we have achieved record quarterly and monthly production during the year, the rigor around employee safety and environmental stewardship is paramount. These two principals continue to be foundational cornerstones of our company culture.”
Ross MacLean, Fiore Gold Chief Operating Officer added, “I am extremely proud of our team at the Pan Mine for receiving the 2020 Nevada Mining Association Safety Award for the fifth consecutive year. This has been a particularly challenging year as we battled concerns with COVID-19 to maintain a safe and environmentally sound operation. It is worth recognizing that we have had a similarly stellar environmental performance for over 5 years. This recognition also reflects our ongoing partnership with our contract miner, Ledcor, and their commitment to maintaining high safety and environmental standards at Pan. The team at Pan is proud of their past performance and is always looking forward to continuously improving the health, safety and environmental standards.”
Corporate Strategy
Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:
- grow gold production at the Pan Mine while also growing the reserve and resource base;
- advance exploration and development of the nearby Gold Rock project; and
- acquire additional production or near-production assets to complement our existing operations.
About the Nevada Mining Association
The Nevada Mining Association is comprised of operating mining companies; exploration companies; suppliers of industry equipment, goods, and services; and individuals interested in sustaining the industry. The Nevada Mining Association champions a business environment that fosters mineral exploration, development, and production in Nevada using safe and environmentally conscious methods. For more information, visit www.nevadamining.org.
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.
Los Andes finds Vizcachitas mineralization extensions
Los Andes Copper Ltd. has provided an update on the geological mapping and geophysics work programs conducted on the company’s Vizcachitas project.
Read MoreThe geological and geophysical work programs have demonstrated evidence of extensions to known mineralization to the north, east and southeast of the current resources.
Over the past months, a program of geological mapping, geochemical sampling, and induced polarization (IP)/resistivity and magnetotelluric (MT) surveys has been completed.
The geological mapping has shown that the phyllic shell extends 750 metres to the north of the current resources, indicating the potential for mineralized systems to extend farther north than currently drilled. The mapping also showed sheeted D-type veinlets extending north around 1,000 metres toward breccia Roja and to the east of the resources.
Surface geochemical rock sampling confirmed that breccia Roja and the area within the phyllic shell have the same geochemical signature as the area of the current resources. This indicates that the area is part of the same intrusive complex and that the northern extension is likely associated with the same mineralizing system as the area of the current resources.
A total of 15 line kilometres of IP/resistivity and MT data were captured. The data show good correlation to the current resource model reflecting the central core and intermineral intrusives. The conductive resistivity extends 750 metres to the north of last drill hole in the north, to the east of the current resources and also to the east along the Campamento fault that defines the southern limit of the deposit.
The geological, geochemical and geophysical results all show the potential of extensions to known mineralization to the north, east and southeast of the current resource estimate. These new data in conjunction with the historical data will be used to outline drill priorities that will be carried out as part of the prefeasibility study (PFS) drill program.
Antony Amberg, chief executive officer and chief geologist of Los Andes, commented: “I am very excited with the results of this work program. The geological, geochemical and geophysical data have all demonstrated evidence of extensions to known mineralization to the north, east and southeast of the of the current resource estimate. This confirms our belief that the project has the potential to continue to grow as we advance the PFS study.”
Fernando Porcile, executive chairman of Los Andes, commented: “We successfully carried out a geological mapping and geophysics program over the winter season, where strict COVID-19 measures were implemented in order to protect our employees and the local community. The results of the program have confirmed our expectations and demonstrate the potential for extensions of the current mineralization. We continue to progress the PFS and this data will be used to outline priorities for the drill program.”
Roscan Gold recovers 90% of Au from Mankouke South
Roscan Gold Corp. has provided information on bottle roll test work recently completed on crushed rejects of diamond drill samples from the Mankouke South target. Test work has been completed at ALS Laboratory in Ouagadougou, Burkina Faso in August 2020 and recorded an overall metallurgical recovery of 90% from 139 samples (Table 1).
Read MoreThe preliminary test work (bottle roll) in 2020 was focused on defining the cyanide recoveries that are expected from the Mankouke South project material. Additional work is still required for the metallurgical process at Mankouke South, but no significant metallurgical issues related to gold recovery have been identified from the work to date.
Nana Sangmuah, President and CEO, stated, “Preliminary metallurgical testing shows high recoveries of up to 96.5% in the Mankouke South Target. Further metallurgical test work will be completed in 2021 to determine the variation in gold recoveries between the oxide, transition zones and fresh rock.
We are very excited and encouraged about these initial results, which clearly indicate the potential to recover the gold in a conventional manner.”
Lithology Code WeatheringFresh Rock (py %)Recovery (%)No. of Samples Laterite Laterite 92.8 7 Greywacke Saprolite No fresh pyrite 96.5 45 Greywacke/Shale Saprolite No fresh pyrite 91.6 4 Greywacke Saprolite With fresh pyrite 84.0 57 Greywacke/Shale Saprolite With fresh pyrite 82.0 12 Polymitic BrecciaFresh 90.5 14 Total 90 139 Table 1: Summary of Preliminary Metallurgical Result for Mankouke South
Gregory Isenor, P.Geo., a Qualified Person as defined by National Instrument 43-101, reviewed the bottle roll test work completed at ALS, and this news release. Gregory Isenor, P.Geo., an Officer and Director of Roscan, has reviewed and approved the scientific and technical disclosure in this news release.
Moneta Announces Positive Results from Preliminary Economic Assessment Study on South West Deposit
Toronto, Ontario–(Newsfile Corp. – September 9, 2020) – Moneta Porcupine Mines Inc. (TSX: ME) (OTC Pink: MPUCF) (FSE: MOP) (“Moneta” or the “Company”) is pleased to announce the excellent results from the Company’s Preliminary Economic Assessment (“PEA”) of the South West deposit at its 100% owned Golden Highway Project located in Timmins, Ontario. The PEA study demonstrates robust economics and is based on a stand-alone, owner-operated mine and mill with an 11-year mine life which produced an after-tax Net Present Value (“NPV”) of C$236 million using a 5% discount rate. The financial model shows an after-tax Internal Rate of Return (“IRR”) of 30% and a capital payback period of 3.4 years. All amounts are shown in Canadian dollars unless otherwise stated.
Read MoreSouth West Deposit PEA Highlights
- After Tax Net Present Value at a 5% discount rate (“NPV5%”) of C$236 million and after-tax Internal Rate of Return (“IRR”) of 30% at US$1,500/oz gold and exchange rate of US$0.77/C$
- C$371 million after tax cash flow over the life of mine
- 75,700 ounces annual production during full production for 719,000 ounces total gold production
- Peak gold production of 85,700 ounces per annum
- Cash cost of US$590 per ounce and all in sustaining cost of US$747 per ounce gold
- Highly leveraged to the gold price with after tax NPV5% of C$423 million and 47% IRR at US$1,900 per ounce gold
- Initial capital of C$144 million, and sustaining capital of C$136 million
- After-tax discounted pay-back of 3.4 years, with an 11 year mine life
- Attractive alternative Toll Milling development option with after-tax NPV5% of C$197 million and IRR of 44% at US$1,500 gold with initial capital costs of C$65 million
- Potential to expand production from additional deposits located on the Golden Highway Project
“We are extremely pleased with the positive results from this preliminary economic assessment of the South West deposit and its robust project economics including an NPV of C$236 million and IRR of 30% at US$1,500 ounce gold and a 5% discount rate,” commented Gary O’Connor, CEO. “The PEA study which assumed underground extraction of our South West deposit only has shown the potential to produce up to 85,700 ounces per annum for a total of 719,000 ounces life of mine at an attractive cash cost of US$590 per ounce, with low initial capital of C$144 million repaid over 3.4 years. The excellent economics are afforded by the project’s location in Canada’s most prolific gold mining camp, Timmins Ontario, with extensive existing infrastructure and experienced and available services and workforce. The South West deposit would generate C$371 million after tax cash flow over the life of mine. We will now be able to focus on expanding the adjacent deposits and discovering new zones of gold mineralization to continue to add value to the Golden Highway Project with a growing resource base. In addition to our base case development plan, we also have a highly attractive development option which involves minor initial capital expenditure, shorter development time line and negates the need to permit and build our own processing plant and associated infrastructure assuming Toll Milling of the ore.”
Mr. O’Connor commented, “In addition to the highly successful PEA on our South West deposit, we have 5 additional gold deposits on the Golden Highway project and have discovered three new mineralized areas, Westaway, Halfway and South Basin in 2020, of which a maiden resource for Westaway is planned for this year. During 2020 we have doubled the footprint of continuous mineralization from 2 kilometres to 4 kilometres at Golden Highway. In addition, we have discovered regional scale potential with gold mineralization discovered over 1.2 km on the southern margins of the South Basin with a potential strike length of 12 km.”
PEA: TECHNICAL INPUT AND FINANCIAL RESULTS SUMMARY
Table 1 – Technical Inputs and Financial Assumptions
Economics | Pre-Tax | Post-Tax | |
Net present value (NPV5%) | C$ million | $368.2 | $236.4 |
Internal rate of return (IRR) | % | 39.2 % | 29.7 % |
Payback Period (undiscounted) | years | 2.9 years | 3.4 years |
LOM avg. annual cash flow | C$ million | $66.9 | $ 48.6 |
LOM cumulative cash flow (undiscounted) | C$ million | $556.3 | $371.3 |
LOM Average cash costs | US$ per ounce | US$590 | |
LOM Average AISC – All in Sustaining Costs | US$ per ounce | US$747 | |
LOM Average AIC – All in Costs | US$ per ounce | US$902 | |
Initial Capital Costs | C$ Million | C$144.2 | |
Sustaining Capital Costs (LOM) | C$ Million | C$135.7 | |
Profitability Index | NPV/Initial Capital | 1.64 | |
Peak Investment | C$ million | C$114.3 | |
Gold price assumption | US$ per ounce | US$1,500 | |
Exchange rate | US$/C$ | 0.77 | |
Royalty | per ounce | nil | |
Mine life | years | 11 | |
Mill Head Grade (diluted) and Recovery | g/t Au, % | 3.93 g/t Au, 94.2% | |
Average annual mining rate | tonnes/day (tpd) | 1,750tpd | |
Average annual gold production | thousand ounces/yr | 76Koz/pa | |
Total LOM recovered gold | thousand ounces | 719.2koz |
The average annual mining rate and gold production is calculated for years 3 to 11 of mining when mining is at full production rates. All other parameters are measured for life of mine (LOM) and include the 2 year ramp up period. No royalties or encumbrances are attributed to any of the South West deposit.
The PEA was prepared in accordance with National Instrument 43-101 (“NI 43-101“) by Micon International Limited (“Micon”) of Toronto, Canada with an effective date of September 09, 2020. The Company will file the PEA on SEDAR at http://www.sedar.com in accordance with NI 43-101 within 45 days.
This preliminary economic assessment 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 preliminary economic assessment will be realized.
GOLD PRICE SENSITIVITIES
The following table demonstrates the post-tax sensitivities of NPV and IRR to gold price per ounce. The base case, highlighted in the table below, assumes US$1,500 per ounce of gold and an exchange rate of 0.77 (US$/C$):
Table 2: Gold Price Sensitivities
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Figure 1: Sensitivities Chart
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The Project economics are most sensitive to revenue drivers (gold prices, gold grade and recovery). Operating and capital cost sensitivities are similar and are also presented in Figure 1.
OPPORTUNITIES
The PEA outlined several initiatives that may enhance the Project including:
- Potential to mine additional ounces from the current resource estimate from the developed underground infrastructure with more selective mining
- Opportunity to drill out additional gold mineralization from underground not currently in the mineral resource estimate
- Include lower grade gold mineralized haloes and veins systems not currently in the resource model which will lower the amount of dilution
- With modelling of lower grade veins and haloes, development through these areas could potentially be processed through the mill. Current mine plan assumes the development in these areas carries no grade
- Optimize the metallurgical recoveries with more test work to potentially increase the overall gold recoveries
- The possibility of increasing the tonnes mined per year with longer/additional mining shifts
- Additional mineral resources located adjacent to South West and currently the focus of ongoing exploration and resource updates by Moneta are not covered in this PEA. Additional resources and mine plans have the potential to significantly increase production from the project
- Optimization of the mine plan and mine production schedule to potentially decrease costs and increase production
NEXT STEPS
- The South West resource requires additional infill drilling to upgrade inferred resources to measured and indicated categories
- Continue and expand the current environmental base line studies and data collection
- Drill known open extensions of the resource to expand the potential size of the South West deposit
- Additional metallurgical recovery and environmental test work is required to better define the process flow sheet
- Drill out adjacent gold deposits to enable additional resources to be considered in any further development plans
- Drill test exploration targets to continue to grow the resource base
- Hydrological and geotechnical studies will be required
- Commence pre-feasibility level mine engineering and development studies upon completion of resource expansion and infill drill programs
MINE PRODUCTION SCHEDULE
The PEA at South West considers underground mining utilizing ramp access with longitudinal long hole stoping mining methods. The initial development of the access ramp is to be performed by contractors with mine development and ore production transitioning to 100% owner owned operations in year 2. Two years have been scheduled for the ramp-up of production with the full production rate of 1,750 tpd being achieved in year 3. Full production occurs for 9 years for a total of 11 years mine life with average production of 75,700 ounces per year during full production, peaking in year 5 with 85,700 ounces of gold produced.
A minimum mining width of 3.00 m is used for the longitudinal long hole stoping mining planned, with 20 m between sub-levels and 15 m long stopes planned. The average width of stopes is approximately 8.0 m. Dilution of 0.5 m on both the footwall and hanging wall of stopes is added with no grade.
Table 3: Mine Production Schedule
Year | -1 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Totals |
Tonnes (t) | 213 | 462 | 603 | 621 | 620 | 617 | 622 | 621 | 621 | 621 | 417 | 6,035 |
Grade (g/t) | 3.93 | 4.05 | 3.91 | 3.90 | 4.57 | 3.73 | 3.56 | 3.95 | 4.19 | 3.70 | 3.77 | 3.93 |
Contained Au | 26.8 | 60.1 | 75.9 | 77.8 | 91.0 | 73.9 | 71.2 | 78.8 | 83.6 | 73.7 | 50.4 | 763.5 |
Recovery (%) | 94.2% | 94.2% | 94.2% | 94.2% | 94.2% | 94.2% | 94.2% | 94.2% | 94.2% | 94.2% | 94.2% | 94.2% |
Recovered Au | 25.3 | 56.6 | 71.5 | 73.3 | 85.7 | 69.7 | 67.1 | 74.3 | 78.8 | 69.4 | 47.5 | 719.2 |
Figure 2: Annual Gold Production Chart
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Table 4: Mine Production Technical Details
Mine Plan Summary | ||
Mine Life | Years | 11 |
Including Ramp-up | Years | 2 |
Mining rate | tpd | 1,750 |
Height between sub-levels | m | 20.00 |
Minimum mining width | m | 3.00 |
Length of stopes | m | 15.00 |
Dilution | m | 0.5 / 0.5 |
Average width of stopes | m | ~8.00 |
Dilution grade | g/t Au | 0.00 |
Cut-off grade | g/t Au | 2.60 |
Total mill-feed mined | Million tonnes | 6.035 |
Diluted Grade | g/t Au | 3.93 |
Contained Ounces | Thousand ounces | 763.49 |
Recovered ounces | Thousand ounces | 719.21 |
OPERATING COSTS
Owner operating costs were developed from first principles. Initial access development will be contracted and contractor rates were based on written quotes. Owner mining is assumed for all ore production and associated development. Ore is brought to the surface by means of a 4.0 m x 4.5 m access ramp utilizing 30 t trucks.
Table 5: Operating Cost Summary
Operating Costs | ||
Cost Centre | LOM (C$MM) | (C$/t) |
Mining | $393.2 | $65.16 |
Processing | $112.9 | $18.70 |
G&A | $36.8 | $6.10 |
Total | $542.9 | $89.96 |
Figure 3: Cash flow and Operating Cost Chart
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CAPITAL COSTS
Initial capital costs include a 15% contingency on direct and indirect costs. The initial capital costs also include owner’s costs, EPCM costs, first fills, insurance and indirect costs. Sustaining costs include a 10% contingency on underground development costs.
Trade-off studies were evaluated to include “lease-to-purchase” options for mining equipment. The lease to purchase equipment does result in lower initial capital and higher IRR’s but returned lower NPV valuations and higher cash costs of production. The lease to purchase remains an attractive development option to reduce initial capital costs.
Table 6: Capital Cost Summary
Capital Costs | |
Cost Centre | C$MM |
Mining Equipment | 6.05 |
Auxiliary | 43.64 |
Processing | 40.39 |
Infrastructure | 21.50 |
In-directs | 15.68 |
Contingency | 16.91 |
Total Initial Capital | 144.16 |
Sustaining Capital (LOM) | 135.72 |
Closure | 10.00 |
Total Capital Costs | 289.88 |
SOUTH WEST MINERAL RESOURCE ESTIMATE UPDATE
The mineral resource estimate for South West was updated by Micon for the PEA. The same geological interpretation and geological wireframes were used as per the November 2019 mineral resource update. No additional drilling has been performed by Moneta at South West since the November 2019 resource. Due to the updated economic parameters used in the PEA, the cut-off grade for the South West resource was changed from 3.0 g/t Au to 2.6 g/t Au, assuming US$1,250 per ounce gold. The current PEA only assessed the economics of producing gold from the South West deposit and did not evaluate the adjacent deposits on the Golden Highway Project.
Table 7: Golden Highway Project Mineral Resource Estimate
Deposit Name |
Cut-off Used (Au g/t) |
Indicated | Inferred | ||||
Tonnes (t) |
Grade (g/t) |
Ounces (oz) |
Tonnes (t) |
Grade (g/t) |
Ounces (oz) |
||
South West | 2.6 | 4,530,000 | 4.07 | 592,400 | 9,607,000 | 4.01 | 1,237,900 |
Windjammer South | 3.0 | 364,000 | 4.19 | 49,100 | 173,000 | 4.59 | 25,500 |
55 | 3.0 | 216,000 | 5.11 | 35,400 | 327,000 | 4.31 | 45,300 |
West Block | 3.0 | – | – | – | 301,000 | 3.23 | 31,200 |
Discovery | 3.0 | – | – | – | 108,000 | 4.12 | 14,300 |
Windjammer North | 3.0 | – | – | – | 265,000 | 3.80 | 32,400 |
Total | 5,110,000 | 4.12 | 676,900 | 10,781,000 | 4.00 | 1,386,600 |
Notes:
- Mineral Resource Estimates are reported at a cut-off grade of 3.00 g/t Au for an underground mining scenario, except for the South West zone which used the cut-off determined in this PEA (2.6 g/t). The cut-off grade was calculated at a gold price of US$1,250 per ounce, an exchange rate of US$/C$ of 0.75 and operational assumptions outlined in Section 14 of this report. The cut-off for the South West zone was derived by calculations presented in the mining sections of this report.
- The resource estimate is supported by statistical analysis with different high-grade capping applied to each of the deposits ranging from 6.0 g/t Au to 37.0 g/t Au on 1-m composites.
- The mineral resources presented here were estimated with a block size of 10 m x 5 m x 10 m utilizing sub-blocks of variable size as required, and constrained within geological wire frames with a minimum width of 1.50 m, except for the South West update. There the mineral resources were estimated using a sub-blocked model with a parent block size of 15 m x 5 m x 15 m and child block size down to 5 m x 1 m x 5m utilizing these sub-blocks as required and constrained within geological wire frames with a minimum width of 1.50 m. The cells are estimated by Ordinary Kriging using the appropriate variogram model of each structure with individual search ellipsoids.
- The mineral resources presented here were estimated by Micon International Limited using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definitions and Standards on Mineral Resources and Reserves.
- Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, market or other relevant issues.
- The quantity and grade of reported Inferred Resources are somewhat uncertain in nature and there has not been sufficient work to define these Inferred Resources as Indicated or Measured Resources.
- There are no historical underground voids from mining including shafts, ramps drifts or stopes in any of the deposit areas.
- Tonnage estimates are based on bulk densities individually measured and calculated for each of the deposit areas, averaging 2.78 tonnes per cubic metre for the total resource. Resources are presented as undiluted and in situ.
- The mineral resource estimates for South West and West Block are dated September 09, 2020. All other zones are dated January 15, 2019. The effective date for the drill hole database used to produce this updated mineral resource estimate for South West and West Block is November 26, 2019 and November 19, 2018 for the other zones. Tonnages and ounces in the tables are rounded to the nearest thousand and hundred respectively. Numbers may not total precisely due to rounding.
- At the present time, Micon does not believe that the mineral resource estimate is materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
METALLURGY
Gold recoveries in the processing plant are based on metallurgical recovery test work performed by SGS-Lakefield Laboratory Limited, based in Ontario, Canada performed in 2012 and 2019. Historical metallurgical recovery test-work conducted by Newmont Gold and Barrick in the 1990’s was also reviewed. An average gold recovery of 94.2% is used for the owner build scenario assuming the inclusion of a gravity gold recovery circuit in the process flow sheet to capture coarse gold with 24 hour cyanide leaching of the gravity tails after crushing and grinding, based on the results of test work completed to date.
INFRASTRUCTURE
The Golden Highway project, in which the South West deposit is located, is located 100 km east of Timmins, Ontario adjacent to a major sealed highway, Highway 101. A 5 km access road from the highway affords access to the proposed portal site. High tensile electrical power grids occur within 5 km of the proposed site and carry sufficient power to supply several mining operations in the area. Water is locally available, as is building aggregate.
The proposed base case development option involves the construction of an ore stockpile pad, a 1,750 tpd processing plant with sufficient crushing, grinding and leach capacity to process the ore and recover gold into doré bars. For this option a tailings dam with capacity of approximately 6.0 million tonnes is required to be constructed at site. No camp is required due to the proximity of major population centres with significant local mine contracting and technical expertise.
ALTERNATIVE DEVELOPMENT OPTION: TOLL MILLING
Table 8: Toll Milling Development Option: Technical Inputs and Financial Assumptionsn
Economics | Pre-Tax | Post-Tax | |
Net present value (NPV5%) | C$ million | $306.2 | $196. 9 |
Internal rate of return (IRR) | % | 63.9 % | 43.8 % |
Payback Period (Undiscounted) | years | 2.2 years | 3.1 years |
LOM avg. annual cash flow | C$ million | $47.8 | $ 33.4 |
LOM cumulative cash flow (undiscounted) | C$ million | $446.9 | $296.2 |
LOM Average cash costs | US$ per ounce | US$796 | |
LOM Average AISC – All in Sustaining Costs | US$ per ounce | US$938 | |
LOM Average AIC – All in Costs | US$ per ounce | US$1009 | |
Initial Capital Costs | C$ Million | C$64.5 | |
Sustaining Capital Costs (LOM) | C$ Million | C$127.4 | |
Profitability Index | NPV/Initial Capital | 3.05 | |
Peak Investment | C$ million | 38.9 | |
Gold price assumption | US$ per ounce | US$1,500 | |
Exchange Rate | US$/C$ | 0.77 | |
Mine Life | years | 11 | |
Mill Grade (diluted) and Recovery | g/t Au, % | 3.93 g/t Au, 92.2% | |
Average annual mining rate | tonnes/day (tpd) | 1,750 tpd | |
Average annual gold production | thousand ounces/yr | 74Koz/pa | |
Total LOM recovered gold | million ounces | 704Koz |
The PEA also reviewed the option to process the mined resource at South West utilizing an existing processing plant in the Timmins mining camp. This scenario assumed the same mine plan and production rate with trucking to an existing processing plant and payment of a toll milling rate for the processing of ore and recovery of gold. Primary crushing is included in the costs and no gravity gold recovery circuit is assumed to be used in this option resulting in an average life of mine gold recovery rate of 92.2%. The same underground development capital costs are used as well as the same mine development infrastructure, but no processing plant and no tailings storage facility is assumed in the development plan. The toll treating options would allow for a faster development time with fewer permitting requirements, less construction time and lower capital requirements to develop the toll milling option.
Table 9: Toll Milling Development Option: Gold Price Sensitivities
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Table 10: Toll Milling Development Option: Operating Costs
Operating Costs | ||
Cost Centre | LOM (C$MM) | (C$/t) |
Mining | $393.24 | $65.16 |
Processing | $289.68 | $48.00 |
G&A | $35.77 | $5.93 |
Total | $718.70 | $119.09 |
WEBCAST DETAILS
Management will host a webcast and conference call to discuss the results of the PEA on September 10, 2020 at 10:30 am ET. Please refer to the details below to join the conference call or the webcast.
Please send your questions to management at larmstrong@monetaporcupine.com or at 647-456-9223.
A replay of the conference call will be available at 1:30 pm on the Company’s website and by calling (800) 585-8367 or (416) 621-4642.
Further details on the PEA and the complete PEA study document will be found on the Company’s website at www.monetaporcupine.com/investors within 45 days and on SEDAR.com
INDEPENDENT QUALIFIED PERSONS
The Preliminary Economic Assessment was prepared for Moneta by independent Qualified Persons (QP’s) under National Instrument 43-101 from Micon International Ltd of Toronto, Canada. The independent QP’s have reviewed and approved the content of this press release and include:
- B. Terrence (Terry) Hennessey, P.Geo., Senior Economic Geologist and Vice President
- Richard Gowans, P.Eng., President and Principal Metallurgist
- Barnard Foo, P.Eng., M.Eng., MBA, Senior Mining Engineer
- Christopher A. Jacobs, C.Eng, MIMMM, Vice President and Mining Economist
- David Makepeace, M.Eng., P.Eng., Senior Geologist/Environmental Engineer
Tinka prepares for 7,000 m drilling at Ayawilca
Tinka Resources Ltd. has provided an update on exploration activities at its 100-per-cent-owned Ayawilca zinc-silver project in Peru. Preparations are underway for a ~7,000 metre drill program consisting of approximately 20 diamond drill holes. Three drill rigs are expected to mobilize to site and commence drilling by the end of September 2020. The program will target areas where earlier drilling identified high grade zinc and silver mineralization, often outside of the known resources.
Read MoreMost of these zones lie adjacent to the Colquipucro Fault, an important north-northwest trending regional structure (Figures 1 and 2). It is anticipated that the drill program will be completed in early 2021, subject to potential delays as a result of the COVID-19 pandemic. A framework of stringent health and safety measures has been implemented, which includes protocols to prevent the spread of COVID-19, and, as a result, the timing of the start and completion of the drill program may vary.
The 2020 drill program will focus on a combination of resource step-out drilling in areas where mineralization remains open to increase resources, and infill drilling to upgrade the category of the Ayawilca resources in areas of high grade mineralization. Priority targets include:West Ayawilca: Step-out holes down-dip of previous drill hole intersections, which include 10 metres grading 665 g/t silver, 1.4% zinc and 1.9% lead in drill hole A18-131 (not included in resource estimate) and 31.9 metres grading 9.6% zinc & 19 g/t silver in hole A18-118 (included in inferred resource) (see news releases dated October 15, 2018, and May 24, 2018).West Ayawilca: Infill drilling to upgrade Inferred resources into Measured or Indicated categories (approximately 50% of program). Current Inferred resource includes drill hole intercepts such as 10.4 metres grading 44.0% zinc & 43 g/t silver in hole A18-129 (see news release dated June 26, 2018).The Colqui Silver Zone: Step-out holes are planned to test for possible down-dip extensions of the oxide silver mineralization. Previous drill hole highlights include 128 metres grading 91 g/t silver in CDD4, and 52 metres grading 155 g/t silver in hole CDD43 (see Figure 3).
The Ayawilca Zinc Zone (sulphide) contains an estimated 1.8 billion pounds zinc and 5.8 million ounces silver in the Indicated category, and 5.6 billion pounds zinc and 25.2 million ounces silver in the Inferred category (see news release dated November 26, 2018). The Colqui Silver Zone (oxide) contains an estimated 14.3 million ounces silver in the Indicated category and 13.2 million ounces silver in the Inferred category, with mineralization starting from surface (see link to Technical Report dated July 2, 2019).
Tinka has in place a rigorous health protocol including extensive COVID-19 testing and monitoring of its employees, contractors and community workers. Lodgings at the Ayawilca camp have been increased to accommodate additional personnel including community workers, adhering to strict social distancing guidelines and minimizing movement. A doctor and an ambulance are available at site at all times with appropriate testing and monitoring equipment. Tinka has also hired a consulting specialist doctor based in Lima to assist with clinical diagnoses and the follow-up of suspect COVID-19 cases. The objective is to avoid COVID-19 infections at the Ayawilca camp site, and to keep our workers and communities safe.
President and CEO of Tinka, Dr. Graham Carman, stated: "Tinka is excited to reinitiate its drill programs at Ayawilca. We have some great targets, including possible extensions of the Zinc Zone, as well as silver-rich areas not yet included in the resource estimate at West Ayawilca, and at the Colqui Silver Zone. We believe there is significant silver upside which is not currently realized. We are taking all necessary steps to minimise health risks to our employees and communities with strict health protocols in place. The health and wellbeing of our employees and neighbours is of paramount importance, and our team has gone to great lengths to ensure that the coming program is executed with as low risk as possible."On behalf of the Board,”Graham Carman”Dr. Graham Carman, President & CEOInvestor Information: http://www.tinkaresources.comRob Bruggeman 1.416.884.3556rbruggeman@tinkaresources.comCompany Contact:Mariana Bermudez 1.604.699.0202info@tinkaresources.com
FPX’s Baptiste PEA pegs NPV at $1.72-billion (U.S.)
FPX Nickel Corp. has received positive results from the 2020 preliminary economic assessment (PEA) for the Baptiste project at its wholly owned Decar nickel district in central British Columbia. The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) by BBA Inc. of Montreal, Canada with work on mine planning and tailings by Stantec Inc. of Vancouver, Canada.
Read MoreProduction and Economic Highlights
Mine life of 35 years and after-tax payback of 4.0 years After-tax net present value (“NPV”) (8%) of US$1.72 billion and internal rate of return (“IRR”) of 18.3% Average nickel production of 99 million lbs. per year Average C1 operating costs of US$2.74/lb nickel and all-in sustaining costs (“AISC”) of US$3.12/lb nickel Average US$481 million of annual earnings before royalties, taxes and depreciation
Cautionary Statement: The PEA is preliminary in nature and 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. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the conclusions or results as reported in the PEA will be realized.
“This PEA establishes Baptiste as a premier large-scale nickel project,” commented FPX Nickel’s President and CEO, Martin Turenne. “The Project has the potential to be a significant global nickel operation, with a multi-generational operating life and average annual production of 99 million pounds of contained nickel. Baptiste’s enormous scale, combined with low C1 operating costs of US$2.74/lb, has the potential to deliver robust operating margins throughout the nickel price cycle, generating average earnings (before royalties, taxes and depreciation) of US$481 million per year and an after-tax NPV of US$1.7 billion. With its proximity to zero-carbon hydroelectric power, the fact that its nickel product can bypass smelters for direct sale to end users, and the carbon-absorbing properties of Baptiste host rock, the Project is well positioned to address the growing market demand for environmentally sustainable nickel production.”
The Company has also identified a number of optimization opportunities to be investigated in the next phase of project development, including but not limited to:
Potential suitability of Baptiste nickel products for the electric vehicle battery market Sale of by-product iron ore concentrate or pellets Additional drilling to expand the Baptiste Deposit, which remains open with strong grades at depth over the entire mineralized footprint Potential discovery of additional large-scale nickel deposits within the 245 square kilometre Decar Nickel District on three known targets, most notably at the Van target Ongoing research in collaboration with the University of British Columbia on the ability of Baptiste waste rock and tailings to naturally sequester atmospheric carbon dioxide (“CO2 “)
With its lengthy mine life and rapid payback, Baptiste ranks favourably among global development-stage nickel projects, providing potential exposure to multiple cycles in the nickel market while efficiently repaying upfront capital. Figure 1 demonstrates the strategic value of Baptiste in comparison to other pre-production nickel projects, as expressed by its high ratio of projected mine life (35 years) to after-tax payback period (4 years).
Figure 1 {ᆎ –} Comparison of Global Nickel Projects is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ac76086b-b582-473e-9414-b10ee68223bc
Source: Company economic studies; see Table 11 below.
Overview of PEA Results and Assumptions
The Baptiste PEA demonstrates the potential for establishing a greenfield open-pit mine and an on-site magnetic separation and flotation processing plant, using conventional technology and equipment. At a throughput rate of 120,000 tonnes per day (or 43.8 million tonnes per year), annual production is projected to average 99 million pounds nickel contained in ferronickel (“FeNi”) briquettes at C1 operating costs of US$2.74 per pound of nickel. It is anticipated that the Baptiste FeNi briquette will be sold directly to stainless steel producers and garner 98% of the London Metal Exchange (“LME”) nickel price, in line with payabilities earned by standard FeNi products in the global marketplace.
All amounts are in United States dollars unless otherwise specified; table totals may not sum due to rounding.
Table 1 {᜘ –} Baptiste Project PEA Results and Assumptions (all in US$)
Results Pre-tax NPV (8% discount rate) $2.93 billion Pre-tax IRR 22.5% Payback period (pre-tax) 3.5 years After-tax NPV (8% discount rate) $1.72 billion After-tax IRR 18.3% Payback period (after-tax) 4.0 years Net cash flows (after-tax, undiscounted) $8.73 billion C1 operating costs 1 $2.74/lb nickel AISC costs 2 $3.12/lb nickel Assumptions Processing throughput 120,000 tonnes per day Mine life 35 years Life-of-mine stripping ratio (tonnes:tonnes) 0.40:1 Life-of-mine average annual nickel production 99 million lbs. Nickel price 3 $7.75/lb Baptiste product payability (% of nickel price)98% Pre-production capital expenditures $1.67 billion Sustaining capital expenditures $1.11 billion Exchange rate 0.76 US$/C$
C1 operating costs are the costs of mining, milling and concentrating, on-site administration and general expenses, metal product treatment charges, and freight and marketing costs less the net value of by-product credits, if any. These are expressed on the basis of per unit nickel content of the sold product.
AISC of all-in sustaining costs comprise the sum of C1 costs, sustaining capital, royalties and closure expenses. These are expressed on the basis of per unit nickel content of the sold product.
Nickel price based on the average of six long-term analyst forecast prices.
Capital Costs
The total pre-production capital costs, including direct costs, indirect costs and contingency was estimated at $1.67 billion. This represents the pre-production capital expenditure required to support start-up of operations in year 1. The capital cost related to the implementation of in-pit tailings deposition in year 22 was estimated at $103 million. This is the capital expenditure specifically required to allow for finer primary grinding (resulting in improved nickel recovery) and for pumping tailings to the mined-out pits for in-pit deposition, and other associated costs (see further discussion under Metallurgy and Mineral Processing and Tailings Management below). Sustaining capital costs (which excludes the capital cost related to the implementation of finer primary grinding and in-pit deposition) were estimated at $1.01 billion. These costs include items such as mine equipment fleet additions and replacements, facilities additions and improvements and costs relating to tailings storage facility and surface water management which are incurred over the life-of-mine (“LOM”).
Capital Costs In-Pit Tailings PreProduction Deposition (Year 21) Sustaining Total LOM Category US$ million US$ million US$ million US$ million Direct Costs Mobile Equipment $155 - $354 $509 Tailings $138 $15 $534 $687 Mine and tailings site preparation $96 - $90 $186 Mineral processing $610 $88 $18 $717 Off-site infrastructure $64 - - $64 On-site infrastructure $66 - $7 $73 Total direct costs $ 1,129 $ 103 $ 1,003 $ 2,235 Indirect costs $292 - $8 $300 Contingency $254 - - $254 Total project capital costs $ 1,675 $ 103 $ 1,012 $ 2,789
Operating Costs
Table 3 presents a summary of the estimated average operating costs for the initial Phase 1 (Years 1 to 21), Phase 2 (Years 22 to 35, during which period the Project will adopt finer primary grinding and in-pit tailings deposition) and for the life-of-mine, expressed in US$/tonne of dry material processed (milled).
Table 3 {⶟ –} Total Estimated Phase and Average LOM Operating Costs (US$/t milled) Estimated average LOM operating costsPhase 1(Years 1-21)Phase 2 (Years 22-35)Average (LOM) Mining $2.28 $2.66 $2.43 Mineral processing $2.71 $2.91 $2.79 Product transport $0.19 $0.18 $0.19 Rail terminal and access road $0.05 $0.05 $0.05 General site services $0.62 $0.62 $0.62 General and administration $0.25 $0.25 $0.25 Total operating costs $ 6.09 $ 6.66 $ 6.32
Table 4 presents estimated phase and average LOM operating costs stated on a per unit of nickel production basis.
Table 4 {ㆦ –} C1 costs and AISC costs (US$/lb nickel) Phase 1(Years 1-21)Phase 2 (Years 22-35)Average (LOM) C1 costs $2.61 $2.94 $2.74 AISC costs $3.13 $3.11 $3.12
Mineral Resource Estimate
The PEA incorporates an updated 2020 resource estimate for the Baptiste Deposit including all data from the 83 surface drillholes completed since 2010 and 2,053 samples from a re-sampling program of 2010/2011 drill core that was carried out in 2012. The estimate is geologically constrained within four mineralized domains and is reasonably comparable among different estimation methods (i.e., ordinary kriging, inverse distance squared weighting, nearest neighbour).
The 2020 resource model comprises a large, delta shaped volume that measures approximately 3.0 km in length and 150 to 1,080 m in width and extends to a depth of 540 m below the surface. The Baptiste Deposit remains open at depth over the entire system and is covered by an average of 12 metres of overburden.
Table 5: 2020 Baptiste Deposit Pit-Constrained Mineral Resource Estimate * Category Tonnes (000's)Davis Tube Recoverable ("DTR") Nickel Content % Ni Tonnes Ni Pounds Ni (000's) Indicated 1,995,873 0.122 2,434,965 5,368,173 Inferred 592,890 0.114 675,895 1,490,092
* See Notes for Tables 5 and 6 below.
2020 Baptiste Deposit Block Model Tonnage and Grades Reported at a Range of Cut-off Grades (Base Case 0.06% DTR Ni) * Cut-off Grade (DTR Ni %) Indicated Inferred Tonnes (000's)DTR Ni Grade (%)Tonnes (000's)DTR Ni Grade (%) 0.02 2,076,969 0.119 750,633 0.098 0.04 2,055,578 0.120 659,900 0.107 0.06 1,995,873 0.122 592,890 0.114 0.08 1,871,412 0.126 499,993 0.122 0.10 1,617,364 0.131 399,801 0.130
* Notes for Tables 5 and 6:
Updated mineral resource estimate prepared by GeoSim Services Inc. using ordinary kriging with an effective date of September 9, 2020. Davis Tube magnetically-recovered (“DTR”) nickel is the nickel content recovered by magnetic separation using a Davis Tube, followed by fusion XRF to determine the nickel content of the magnetic fraction; in effect a mini-scale metallurgical test. The Davis tube method is the global, industry standard metallurgical testing apparatus for recovery of magnetic minerals. Indicated mineral resources are drilled on approximate 200 x 200 metre drill spacing and confined to mineralized lithologic domains. Inferred mineral resources are drilled on approximate 300 x 300 metre drill spacing. An optimized pit shell was generated using the following assumptions: US $6.35 per pound nickel price; a 45degree pit slope; assumed mining recovery of 97% DTR Ni and process recovery of 85% DTR Ni, an exchange rate of $1.00 CAN = $0.76 US; and mining costs of US$2.75 per tonne, processing costs of US$4.00 per tonne. A US$1.00 per tonne minimum profit was also imposed to exclude material close to the break-even cut-off. A base case cut-off grade of 0.06% DTR Ni represents an in-situ metal value of approximately US$7.00 per tonne which is believed to provide a reasonable margin over operating and sustaining costs for open-pit mining and processing. Totals may not sum due to rounding. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Mining
The PEA mine plan is based on the mineral resource estimate and its underlying geological block model. The mine plan envisions a three-phased open pit mine development, with the Phase 1 pit covering the first 21 years of mine life. During this phase, tailings will be deposited in an external tailings storage facility (“TSF”). The Phase 2 and 3 pits expand laterally towards the northwest and northeast from the Phase 1 pit, providing mill feed for years 22 to 35, allowing tailings to be placed in the mined-out Phase 1 pit. A pit rim dam will be constructed in year 25 to allow access from the phase 3 pit to the plant and to accommodate the additional tailings that will be stored in the Phase 1 and Phase 2 pits after they are mined out.
Mining will be conducted using conventional truck and shovel methods. Large-scale open pit mining will provide the mineral processing plant feed at a rate of 120,000 tonnes per day, or 43.8 million tonnes per annum. Annual mine production of mill feed and waste will peak at 80.1 Mt/a with a life-of-mine stripping ratio of 0.40:1 including preproduction (0.32 during the first 10 years of operation, and 0.22 over the first 16 years of operation). Ultimate pit quantities with corresponding DTR nickel grades are shown in Table 7.
Table 7 {䟷 –} Ultimate Design Pit Quantities Material ClassificationTonnage (Mt)Grade (% DTR Ni) Indicated 1,326 0.124% Inferred 177 0.102% Total for processing 1,503 0.121 % Waste rock 540 Overburden 55 Total waste 596 Total material mined 2,098 Stripping ratio (LOM) 0.40 :1
Note: Mineral resources are not mineral reserves and do not have demonstrated economic viability
Pit phasing (Phases 1 through 3) was developed to maximize grade early in the mine life, with a starter pit being developed at the beginning of Phase 1 to target a shallow higher-grade zone of nickel mineralization. A production schedule showing tonnage and grade by mining phase is presented in Table 8.
Table 8 {䰜 –} Mining Schedule by Phase Material Classification Tonnage (Mt)Grade (% DTR Ni) Phase 1 (Years 1-21) Indicated 803 0.128% Inferred 42 0.114% Total for processing {䶁 –} Phase 1 845 0.127 % Phases 2 and 3 (Years 22-35) Indicated 523 0.117% Inferred 135 0.099% Total for processing {仔 –} Phases 2 and 3 658 0.113 % Total for processing {伟 –} LOM 1,503 0.121 %
Note: Mineral resources are not mineral reserves and do not have demonstrated economic viability
Metallurgy and Mineral Processing
The metallurgical testwork for the PEA was performed at ALS in Kamloops, British Columbia and was focused on the following: Magnetic separation tests at a range of primary grind sizes (P80 from 57 microm to 360 microm); Magnetic cleaning tests to 25 microm final regrind size; Flotation testwork on the magnetic cleaner concentrate under various conditions and reagent additions; Mineralogical assessment of the head sample and some products generated in the testwork.
A conceptual mineral processing flowsheet was developed as the basis for the PEA. The process flowsheet is based on traditional grinding, magnetic separation and flotation processes. Unit operations in this flowsheet include crushing and grinding, magnetic separation, magnetic concentrate re-grinding to 25 microns (P80), further magnetic cleaning stages, followed by rougher and cleaner flotation stages to produce a final nickel concentrate grading 63% nickel.
The metallurgical testwork results indicated that at a primary grind of 300 microm, it is possible to produce a 63% nickel concentrate with a nickel recovery of 85% of the DTR nickel feed grade. In Year 22, when in-pit tailings deposition is implemented, a finer primary grind of 170 microm can be achieved through the addition of a third ball mill resulting in a DTR nickel recovery of 90%.
Subsequent to the flotation process, the 63% nickel concentrate is dewatered, filtered to a filter cake and briquetted into a final saleable ferronickel product. The flotation process also produces a magnetite-rich tailings stream which has the potential to be sold or further valorized as a saleable iron ore product. For the PEA, no by-product revenues have been recognized for the potential sale of this magnetite-rich product.
Product Marketing
Metallurgical testwork performed for the PEA Study has shown that the Baptiste Project can produce a clean, high-grade, ferronickel concentrate through a conventional mineral processing flowsheet. The FeNi concentrate, agglomerated in briquette form, constitutes the final saleable product generated by the Project for consumption by stainless steel producers. The projected product specification for the Baptiste briquettes is presented in Table 9.
Table 9: Projected Product Specification for Baptiste FeNi Briquettes Elements and Minerals Content Ni 60-65% Fe (total) 30-32% Awaruite (Ni3Fe alloy) 77-83% Metallic Fe in awaruite 19-21% Magnetite (Fe3O4) 13-18% Co 1% typical Cu 0.7% typical P 0.02% typical S 0.6% typical MgO 1% typical SiO2 1.5% typical Cr2O3 0.4% typical
The selling price to be obtained from the sale of the Baptiste FeNi briquettes to stainless steel producers will generally be a function of two variables: (1) the LME nickel price and (2) a discount or premium to the LME nickel price, based on the market positioning of the Baptiste FeNi briquettes in relation to competing sources of nickel feedstock to stainless producers, including stainless steel scrap, nickel pig iron, standard FeNi and Class 1 nickel briquettes or cathode. The selling price determined by the analysis of these two components is the price used for the economic analysis performed for the PEA.
A long-term LME base nickel price assumption of $7.75 per pound is assumed in the PEA which is consistent with the average long-term nickel price of forecasts provided by six base metals analysts. In order to assess the potential payability for the Baptiste product, stated as a percentage of the LME base price, the following sources of information were considered:
The results of the Company’s preliminary product market testing undertaken with stainless steel and ferronickel producers; Preliminary market feedback based on informal discussions with nickel consumers and traders, including an independent consultant to the Company and representatives of large international trading houses specializing in nickel products; Benchmarking with typical specifications for standard FeNi and nickel pig iron (“NPI”) products from various producers; Historic premium / discount data for standard FeNi.
The analysis, in consideration of the aforementioned information sources, concluded that a discount of 2% applied to the LME nickel price provides a reasonable assumption for determining the selling price to be used for the PEA.
Off-Site Infrastructure
The Decar District site access road, having a total length of 121 km, consists of an existing paved road segment and an existing forestry service road (“FSR”). A new 110-m span bridge and a new 4.5 km FSR segment will be required to access the property. Also, upgrades will be required to an existing 20-m span bridge and to 12 km of existing FSR segments.
A road-to-rail transfer facility is proposed to be constructed off-site in the vicinity of the existing CN Rail branch line. The transfer facility is to be used primarily for transloading containerized FeNi briquettes onto railcars for transport to the Prince Rupert port terminal for eventual delivery to ports in Asia. The FeNi briquettes will be loaded into containers at the mine site and trucked by the Company to the transfer facility. The Project will, on average, produce about 72,000 tonnes of FeNi briquettes annually, or an average of approximately 200 tonnes per day.
Electric power to the Project will be provided through a new hydro-electric power transmission line with a capacity of 120 MW and a transmission voltage of a single, 230 kV circuit. The proposed power transmission line is based on a tie-in point located approximately 98 km from the Project.
Tailings Management
The proposed tailings disposal strategy for the Baptiste Project is based on two phases. For Phase 1, spanning from years 1 to 21, tailings are disposed of within a conventional external tailings storage facility. The proposed external TSF is proposed to be constructed using the centerline construction method with a downstream slope of 3H:1V. It will be constructed primarily with cycloned sand tailings generated in the mineral processing plant and designed to retain tailings produced during the first 21 years of production based on the mine schedule. Geotechnical design criteria are based on regional experience as no site investigations related to the TSF structures have been completed to date.
Thereafter, tailings are proposed to be disposed within the exhausted open pit based on an in-pit disposal strategy. Upon completion of mining of the Phase 1 pit in year 21, the pit would then start being backfilled with tailings produced while processing material mined in the Phases 2 and 3 pits, starting in year 22. A pit rim dam will be required in order to accommodate the tailings produced while mining the Phase 3 pit to the end of the 35-year mine life.
Sensitivity Analysis
A sensitivity analysis was performed on a pre-tax and after-tax basis, whereby pre-production capital cost, annual operating costs and product selling price were individually varied between +/-20% to determine the impact on the Project’s IRR and NPV at an 8% discount rate. Results are presented in Table 10.
Table 10 {濒 –} Sensitivity Analysis Sensitivity -20% -10% Base Case +10% +20% Operating Costs Pre-Tax NPV $3,449 M$3,188 M$2,927 M $2,666 M$2,406 M IRR 24.6 % 23.6 % 22.5 % 21.5 % 20.4 % After-Tax NPV $2,057 M$1,889 M$1,721 M $1,552 M$1,384 M IRR 19.9 % 19.1 % 18.3 % 17.4 % 16.5 % Capital Costs Pre-Tax NPV $3,233 M$3,080 M$2,927 M $2,774 M$2,621 M IRR 27.2 % 24.6 % 22.5 % 20.8 % 19.2 % After-Tax NPV $2,002 M$1,862 M$1,721 M $1,579 M$1,437 M IRR 22.4 % 20.1 % 18.3 % 16.7 % 15.3 % Ni Selling Price Pre-Tax NPV $1,426 M$2,177 M$2,927 M $3,678 M$4,428 M IRR 15.7 % 19.2 % 22.5 % 25.7 % 28.6 % After-Tax NPV $750 M $1,237 M$1,721 M $2,202 M$2,680 M IRR 12.8 % 15.6 % 18.3 % 20.7 % 23.0 %
At the LME spot nickel price of $6.86/lb. (closing price on September 7, 2020), the Project’s after-tax IRR and NPV (8% discount rate) would be 15.2% and US$1.16 billion, respectively.
Project Opportunities
Several project optimization opportunities requiring further study have been identified which may further enhance project economics, including the following:
Electric Vehicle Battery Application: Based on batch pressure leach tests performed on a sample of Baptiste flotation concentrate, it is expected that the nickel-cobalt leach solution produced will be an ideal feedstock for the production of nickel sulphate and cobalt sulphate for the electric vehicle (“EV”) battery market. These positive test results provide the Company with an opportunity to pursue an alternative marketing route for part of its nickel production, which would allow the Company to become a player in the EV battery value chain. As the Project advances, this opportunity will need to be supported with more testwork and a validation of process economics.
Sale of Iron Ore Concentrate: The process flowsheet developed in the PEA generates a flotation tailing with a high iron content (in the form of magnetite), which can potentially be marketable as a magnetite iron ore concentrate and generate additional financial benefit to the Project. A detailed logistics and marketability analysis to further develop this opportunity is required to incorporate the potential benefit of this product stream into the Project’s economics.
Mineral Exploration: Assay results of outcropping bedrock samples have defined a promising drill-ready target at the Van target, which is located 6 km north of the Baptiste Deposit at similar elevations, and accessible via logging roads. These results demonstrate that the surface expression of the Van target is larger in area and similar in DTR nickel values to the Baptiste Deposit. A drill program is recommended for the Van target to test its potential to comprise a standalone deposit to complement the Baptiste Deposit.
CO2 Sequestration: Laboratory testing by researchers from the University of British Columbia has demonstrated that the Baptiste Deposit’s mineralization can absorb significant quantities of carbon dioxide when exposed to air through a natural process of mineral carbonation. FPX is undertaking further research in collaboration with UBC to assess and advance the potential development of a low-carbon or carbon-neutral operation at Baptiste (see FPX Nickel news release dated September 1, 2020). The potential benefits of carbon sequestration have not been incorporated into the present PEA.
Webinar
The Company’s management will host a live webinar on Thursday, September 10 at 1:00 p.m. Eastern (10:00 a.m. Pacific) to provide an overview of the PEA results and to answer questions from participants. Participants can access the live webinar at the following link: https://zoom.us/j/99574244901
Notes Regarding the PEA
The PEA was produced by a team of independent consultants who possess extensive expertise in their respective fields. Further details on the contributors can be found in the Qualified Persons section of this news release.
The effective date of the 2020 PEA is September 9, 2020 and a technical report relating to the PEA will be filed on SEDAR within 45 days of this news release.
Notes Regarding Figure 1
Information in Figure 1 regarding the mine life and payback period of global nickel projects is taken from company reports and economic studies, as shown in Table 11 below.
Maple Gold Provides Exploration Update and Outlook at Douay Gold Project
Montreal, Quebec–(Newsfile Corp. – September 9, 2020) – Maple Gold Mines Ltd. (TSXV: MGM) (OTCQB: MGMLF) (FSE: M3G) (“Maple Gold” or the “Company“) is pleased to provide a recap of its exploration programs during the first half of 2020 and an outlook on exploration work planned at its Douay Gold Project (the “Project”) in northern Quebec, Canada.
Read More“Our exploration team achieved excellent assay results across multiple zones during our winter 2020 program and the data will be used to design upcoming drill campaigns to uncover higher grade targets and to expand and upgrade the known resources at Douay,” stated Matthew Hornor, President and Chief Executive Officer. “Maple Gold has a massive 357-square-kilometre land package with the opportunity to establish a district-scale gold project in the heart of the Abitibi Gold Belt. With our recently closed C$4.75 million financing, we are fully funded to execute on our exploration plans with the aim of completing an updated resource estimate in 2021.”
Summary of H1 Exploration Results
From January to March 2020, Maple Gold completed a 4,370-metre drill campaign where 11 of the 14 holes drilled intersected higher-than-deposit-average-grade gold mineralization (see Figure 2). Key results from the winter 2020 drill program is included in Table 1. Highlights include:
- Porphyry Zone: Hole DO-20-281 intercepted 75 metres of 1.23 g/t Au, including 31 metres of 1.61 g/t Au; and hole DO-20-283 intercepted 17 metres of 1.91 g/t Au and 7 metres of 1.06 g/t Au at end-of-hole (see news from May 27 and June 10, 2020). These results were obtained from the western part of the Porphyry zone (“Western Porphyry”), which includes the largest block of indicated resources outside of the Douay West Zone, and confirmed the presence of some of the longest, most continuous, intrusive-hosted intercepts on the Project. This zone will be a key focus for the Company’s subsequent exploration campaigns to add near-surface, higher-grade ounces and upgrade the resource category in the area.
- NW Zone: A single site (DO-20-272) was drilled to test the western continuity of a near-surface historical intercept near the northwest edge of the current resource conceptual pit as defined by the RPA 2019 NI 43-101 report. Results surpassed those of the historical hole with several significant intercepts obtained from top of bedrock including 3.4 metres of 3.60 g/t Au followed by 20 metres of 1.15 g/t Au, the former starting from 39.6 metres downhole and the latter from 50.0 metres downhole. These intercepts were significant as they not only indicated the potential for expanded near-surface and higher grade resources in the NW Zone, but also the potential presence of similar additional mineralization along this relatively sparsely drilled contact area both to the west and to the east. This contact at the NW Zone marks a major lithotectonic boundary, with significantly younger sedimentary rocks to the north in fault contact with older basaltic rocks to the south. This geological setting is comparable to that of nearby deposits at Casa Berardi and Vezza which contain higher-grade gold mineralization ranging between 5.0 to 6.0 g/t Au. There are multiple drilling gaps within this geological setting along the northern flank of the resource with a total cumulative length of approximately 3.5 kilometres that will be further explored.
- 531 Zone: Hole DO-20-262X established a third higher-grade area in this zone after it intercepted 3.5 metres of 5.96 g/t Au, including 1.7 metres of 11.35 g/t Au (see news from March 16, 2020). The 531 zone appears geologically similar to the higher-grade Douay West Zone and geophysical surveys completed earlier this year at 531 Zone support the Company’s interpretation that this zone is open laterally and to depth.
Figure 1: Map of drill plan on residual total magnetic intensity image showing distribution of winter 2020 drillholes
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/3077/63426_maplegold1enhanced.jpg
Maple Gold also completed holes at the Nika Zone and southeastern part of the Porphyry Zone (“SE Porphyry”), with several notable intercepts but less significant results relative to other zones. Final assay results included several lower-grade assays consisting of over 10-to-15-metre intervals of 0.5 g/t Au. This includes hole DO-20-273 which intercepted 10.5 metres of 0.52 g/t Au followed by 14 metres of 0.54 g/t Au, including 3 metres of 1.20 g/t Au. Further downhole, two additional higher-grade intercepts were cut including 6.7 metres of 1.07 g/t Au and 3.8 metres of 1.49 g/t Au. Due to the greater geological complexity at these targets and excellent results obtained from other zones, the Nika and SE Porphyry areas will be less of a focus for the Company in the near term.
In addition to its drilling program, the Company’s modern Induced Polarization (“IP”) winter program has been proven effective at detecting causative sources to depths of 500 metres and has generated very promising IP anomalies. This work not only supported the Company’s target concept at the 531 Zone, but also showed a new open anomaly on trend with the Main Zone, and detailed a now drill-ready regional discovery target located approximately 4 kilometres to the northeast of the known deposit (NE Target). As a result, the Company expects to continue expanding its IP program to cover the margins of the current resource area as well as more conceptual targets further afield. Details of promising results from all areas as well as resulting targets will be released once final interpretations are completed.
Finally, an Artificial Intelligence study with CGI is ongoing to generate gold prospectivity maps and provide additional target areas to validate and rank in advance of the Company’s next phases of drilling (see news from July 7). Preliminary results from this work is expected shortly and will also be considered for the fall 2020 drill campaign.
Outlook on H2 Exploration
The Company is pursuing an integrated, two-fold exploration strategy at its Douay Project consisting of:
1) Defining and drill-testing discovery targets: Due to the proximity of the Project to the high-grade and past producing Vezza mine (~0.5Moz of 6.0 g/t Au) and Eagle-Telbel mine (1.15Moz @ 6.5 g/t Au) — located 12 kilometres and 1 kilometre from the Douay property boundary, respectively — potential for new higher-grade discoveries at Douay is considered excellent. While mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Project, the Company continues to expand its IP program to detail new discovery targets in search of higher-grade gold zones in the area.
Fall 2020 drilling campaign: a 3,000-metre program, expected to commence in October, is planned and will focus primarily on drill testing new discovery targets with the potential for higher grade mineralization. Permits for several drill sites are already in hand, with additional sites having been requested in early August (additional program details will be released in the coming weeks).
2) Advanced definition of near-surface, higher-grade potential starter pit areas: Results from the Western Porphyry and NW Zones obtained during the H1 work program support the Company’s objective of expanding known near-surface, higher-than-deposit-average grade gold accumulations that the Company views as potential starter pit areas. The Western Porphyry, NW and Douay West zones are expected to form part of a key subset of the total contained ounces in terms of initial focus for economic analysis and conceptual mine planning.
Winter 2021 drilling campaign: A program consisting of over 10,000 metres is being planned and will take place from January to April 2021. Drill targets are being planned and will mainly be focused on the above priority areas that have the potential to unlock significant value with further step-out and infill drilling (see Figure 2).
Once the fall and winter drilling programs have been completed, the Company expects to prepare an updated resource estimate and to initiate preliminary economic study work in 2021.
Figure 2: Drill plan on Residual Total Magnetic Intensity image showing Fall 2020 (red/white dots) and Winter 2021 Target Areas (light blue outline). The response reflects different rock and alteration types. Fall 2020 sites, not all of which will be drilled, are exploration targets on higher ground. Three sites on the NE IP target are located approximately 4 kilometres to the east of this map.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/3077/63426_c2eef61114834b03_002full.jpg
Table 1: Key Drill Results from Winter 2020 Drill Campaign
Hole | Zone | UTME | UTMN | Azimuth | Plunge | Length (m) | From | To | Interval | Au g/t |
DO-20-280 | W. Porphyry | 705875 | 5491138 | 360 | -55 | 327 | 88.0 | 92.0 | 4.0 | 1.14 |
DO-20-280 | 141.0 | 145.0 | 4.0 | 0.96 | ||||||
DO-20-281 | W. Porphyry | 705938 | 5490930 | 359 | -58 | 294 | 107.0 | 271.0 | 164.0 | 0.86 |
Including | 108.0 | 183.0 | 75.0 | 1.23 | ||||||
Including | 108.0 | 113.0 | 5.0 | 1.79 | ||||||
Including | 121.0 | 136.0 | 15.0 | 1.32 | ||||||
Including | 152.0 | 183.0 | 31.0 | 1.61 | ||||||
DO-20-281 | 183.0 | 233.0 | 50.0 | 0.30 | ||||||
DO-20-281 | 233.0 | 271.0 | 38.0 | 0.85 | ||||||
Including | 233.0 | 236.0 | 3.0 | 1.32 | ||||||
Including | 257.0 | 262.0 | 5.0 | 1.71 | ||||||
Including | 268.0 | 271.0 | 3.0 | 1.67 | ||||||
DO-20-283 | W. Porphyry | 705933 | 5490921 | 359 | -58 | 300 | 162.0 | 166.0 | 4.0 | 1.04 |
DO-20-283 | 189.0 | 206.0 | 17.0 | 1.91 | ||||||
Including | 189.0 | 193.0 | 4.0 | 1.67 | ||||||
Including | 195.0 | 201.0 | 6.0 | 2.28 | ||||||
including | 202.0 | 205.0 | 3.0 | 3.17 | ||||||
including | 203.0 | 204.0 | 1.0 | 5.25 | ||||||
DO-20-283 | 293.0 | 300.0 | 7.0 | 1.06 | ||||||
DO-20-272 | NW | 704774 | 5492404 | 360 | -55 | 75.8 | 39.0 | 40.0 | 1.0 | 6.45 |
DO-20-272 | 60.8 | 66.0 | 5.2 | 0.85 | ||||||
DO-20-272A | NW | 704772 | 5492402 | 360 | -60 | 408.0 | 39.6 | 43.0 | 3.4 | 3.64 |
DO-20-272A | 39.6 | 43.0 | 3.4 | *3.59 | ||||||
Including | 40.2 | 41.9 | 1.7 | 6.62 | ||||||
Including | 40.2 | 41.9 | 1.7 | *6.53 | ||||||
Including | 41.3 | 41.9 | 0.6 | 10.27 | ||||||
DO-20-272A | 50.0 | 70.0 | 20.0 | 1.15 | ||||||
Including | 51.0 | 54.0 | 3.0 | 1.96 | ||||||
Including | 62.0 | 70.0 | 8.0 | 1.34 | ||||||
DO-20-262-X | 531 | 709046 | 5489923 | 358.2 | -59.1 | 585 | 527.0 | 530.5 | 3.5 | 5.96 |
DO-20-262-X | 527.0 | 530.5 | 3.5 | *4.24 | ||||||
Including | 528.0 | 529.7 | 1.7 | 11.35 | ||||||
Including | 528.0 | 529.7 | 1.7 | *7.82 | ||||||
Including | 528.0 | 528.7 | 0.7 | 18.58 | ||||||
DO-20-269 | 531 | 709035 | 5489875 | 352 | -70 | 717 | 694.0 | 699.2 | 5.2 | 1.50 |
DO-20-275 | Nika | 705185 | 5491595 | 358.5 | -51.5 | 348 | 180.0 | 181.0 | 1.0 | 5.30 |
DO-20-275 | 288.0 | 298.0 | 10.0 | 0.61 | ||||||
DO-20-279 | Nika | 705302 | 5491610 | 1.9 | -47 | 285 | 64.0 | 90.0 | 26.0 | 0.50 |
Including | 73.0 | 79.0 | 6.0 | 0.95 | ||||||
DO-20-282 | Nika | 705266 | 5491560 | 357.7 | -59.2 | 450 | 96.0 | 103.0 | 7.0 | 0.59 |
DO-20-273 | E Porphyry | 707793 | 5490085 | 0.6 | -52.3 | 531 | 164.0 | 174.5 | 10.5 | 0.52 |
DO-20-273 | 195.0 | 209.0 | 14.0 | 0.54 | ||||||
Including | 195.0 | 198.0 | 3.0 | 1.20 | ||||||
DO-20-273 | 451.0 | 457.7 | 6.7 | 1.07 | ||||||
Including | 453.0 | 456.8 | 3.8 | 1.49 | ||||||
DO-20-273 | 474.9 | 480.2 | 5.3 | 0.50 | ||||||
DO-20-278 | E Porphyry | 707810 | 5490375 | 2.1 | -50.1 | 207 | 137.0 | 150.0 | 13.0 | 0.50 |
Including | 143.0 | 147.0 | 4.0 | 0.90 |
All intercepts represent downhole lengths, with true widths generally 75-95% of downhole lengths
*Represents intervals that include assays capped at 10 g/t Au.
Excellon produces 198,458 oz AgEq from Platosa in July
Excellon Resources Inc. has provided an operations update following the resumption of mining and milling activities at its Mexican operations in mid-June, 2020.
Read More“We realized strong production in July after restarting the Platosa Mine in mid-June and that trend continued through August,” stated Brendan Cahill, President & CEO. “The cost reduction measures we implemented in Q2 are delivering results, even prior to the pending switch to a private electricity supplier. Underground exploration has resumed at Platosa and we are about to resume surface drilling on potential extensions to the Platosa resource and the Jaboncillo and PDN targets north of the mine. With silver prices at 10 year highs, we expect to have positive cashflow from our Platosa operation going forward.”
July 2020 Production Results Production in Dry Metric Tonnes (DMT)July 2020 Tonnes Mined from Platosa 7,044 Tonnes Processed* 7,408 Ore Grades Silver (g/t) 528 Lead (%) 5.85 Zinc (%) 7.66 Recoveries Silver (%) 92.4 Lead (%) 85.7 Zinc (%) 77.6 Metal Production** Silver (oz) 116,324 Lead (lb) 972,066 Zinc (lb) 818,730 AgEq (oz)** 198,458 Average July 2020 Commodity Prices Silver ($) 20.42 Lead ($) 0.82 Zinc ($) 0.98
* Processed tonnes includes June 2020 stockpile
** Subject to final settlement prices and assays with concentrate purchaser/AgEq ounces calculated using average July 2020 metal prices
Cost reduction measures at Platosa included material reductions to the workforce, changes to shift schedules and mining methods, and the renegotiation of treatment charges on zinc concentrates. The changes to shift schedules resulted in a more productive operation despite reductions in the workforce; as a result, the Company continues to benefit from lower operating costs and higher commodity prices. The shift to a private electricity provider is expected to be completed in the third quarter, with further reductions to operating costs expected in Q4.
COVID-19 Mitigation and Response Plans
On the restart of operations, following the government-mandated suspension of non-essential business activities in Q2, the Company provided two days of safety and COVID-19 exposure prevention training, reorganized the workforce and implemented more efficient work schedules and various ventilation, mining method and other business improvements. COVID-19 prevention, hygiene and safety measures, health screening, travel restrictions, contact tracing, testing and quarantine protocols are in place and have so far proven effective in protecting the workforce from confirmed COVID-19 cases that originated from community spread.
To date there has been no material impact to production or shipment of concentrate from any of the Company’s operations as a result of COVID-19. Additionally, there has been no significant disruption to the supply chain of the Company’s operations. Excellon continues to monitor and implement business continuity measures to mitigate and minimize to the extent possible any potential impacts of the pandemic that might emerge in our operations, procurement and commercial activities.
Almaden Announces Court Decision in respect of Environmental Permit Application for the Ixtaca Precious Metals Project, Mexico
VANCOUVER, British Columbia, Sept. 09, 2020 (GLOBE NEWSWIRE) — Almaden Minerals Ltd. (“Almaden” or “the Company”; TSX: AMM; NYSE American: AAU) is pleased to report that the second district court in Puebla (the “Court”) has issued a decision in respect of the “incident” filed by Almaden’s Mexican subsidiary on February 4 of this year.
Read MoreAs reported previously by the Company (see press release of February 27, 2020), Almaden’s subsidiary filed this “incident” to challenge an October, 2019 decision by Mexico’s environmental authority (“SEMARNAT”) to suspend its review of the Ixtaca project’s environmental permit application (“MIA”) until resolution of legal proceedings (the “Amparo”) regarding certain of the Company’s mineral concessions which encompass the area of the Ixtaca project. In April 2019, a lower court ruling in the Amparo found Mexico’s mineral title system unconstitutional. That ruling has been appealed by each of the Mexican Congress, Senate, Secretary of Economy and mining authorities, as well as Almaden as an interested Party. These appeals are in the process of being studied for resolution (for further discussion of the Amparo, see press release of February 27, 2020).
By filing the “incident”, the Company wished to demonstrate that SEMARNAT is not a party to the Amparo and therefore its decision to suspend the permitting process should be revisited, as SEMARNAT has no legal basis to link its administrative review of the MIA to the Amparo.
In its recent decision, the Court dismissed the “incident” principally on the basis that SEMARNAT is not a party to the Amparo. Furthermore, in a related communication with SEMARNAT, the Court also confirmed that the existence of the Amparo does not prevent SEMARNAT from resolving the MIA permit application and that SEMARNAT is free to act within its jurisdiction and authority in respect of the MIA review. The Ministry of the Economy, the Mining Authorities, the Congress, Senate, and the Office of the Presidency all made submissions to the Court as part of this decision.
The Company awaits a response from SEMARNAT to the Court decision. Almaden will update shareholders when it has more information regarding the impact of this decision on SEMARNAT’s review of the MIA permit.
American Creek’s JV Partner Tudor Gold Discovers a Significant New Gold-Silver-Copper Mineralized System at the Perfectstorm (PSZ) at Treaty Creek, as Well as, Expands the Goldstorm Mineralization Along the Northeast Axis to 1100 Meters
Drill Hole GS-20-73 Expands the 300 Horizon with a 229.5 Meter Intercept Averaging 1.506 Gpt AuEq Within a 775.5 Meter Interval Averaging 0.932 Gpt AuEq.
Drill Hole GS-20-66 Expands the CS-600 System 100 Metres to the Southeast with a 75 Meter Intercept Averaging 2.150 Gpt AuEq.
Read MoreCardston, Alberta–(Newsfile Corp. – September 9, 2020) – American Creek Resources Ltd. (TSXV: AMK) (“the Corporation”) is pleased to report that its JV partner Tudor Gold Corp announced today that it has completed the third set of diamond drill holes at our JV flagship property, Treaty Creek located in the heart of the Golden Triangle of Northwestern British Columbia. Diamond drilling is progressing very well with six diamond drill rigs currently working on the Goldstorm Zone which is on-trend from Seabridges’ KSM Project to the southwest.
Three drill holes have intersected the newly discovered gold-dominant PSZ System located approximately 2 kilometers southwest of the Goldstorm Zone. These diamond drill holes targeted a 1.5 kilometer-wide geophysical anomaly (magnetometer high). Tudor Gold has discovered this new thrust-hosted porphyry-style gold-copper-silver bearing system on trend, and approximately 4 km northeast from Seabridges’ Iron Cap Deposit, which is located at the southwestern boundary of the Tudor Claim block.
Furthermore, diamond drilling on the Goldstorm System has successfully expanded the mineralization to the northeast, southwest and southeast as well to depth. The Goldstorm System 300 Horizon has now been traced for 1100 meters along the northeast axis.
Goldstorm Drilling Highlights include:
- Five diamond drill holes are reported from Goldstorm, all having hit their intended targets with favorable results listed in Table l.
- The best intercept was from drill hole GS-20-73 on Section 110+00 NE that cut 775.5 metres (29.0m to 804.5 m) averaging 0.932 gpt AuEq containing an enriched portion that averaged 1.506 gpt AuEq over 229.5 meters (519.5m to 749.0 m). This was a southwest offset to drill hole GS-20-57 that averaged 1.40 gpt AuEq over 217.5 meters (544.5 to 762.0 meters) within an overall composite averaging 0.845 gpt AuEq over 973.05m (34.50 to 1007.55 meters). (GS-20-57 was collared on Section 110+00 but deviated drastically to the northeast and the lower portion plotted on Section 111+00 NE leaving a gap in the drill model which GS-20-73 has now filled).
- A second longer intercept from GS-20-73 includes material that averaged 0.828 gpt AuEq from a 949.5 meter intercept (29.0 to 978.5 meters) but the hole was abandoned at 980 meters due to safety concerns with the drill platform so hole GS-20-73 WAS STOPPED IN MINERALIZATION. However, the results from entire hole composites are extremely consistent between GS-20-57 (0.845 gpt AuEq over 973.05 meters) and GS-20-73 (0.827 gpt AuEq over 949.5 meters).
- Drill hole GS-20-73 is undercut by GS-20-65; a remarkable 348 meter intercept of 2.120 gpt AuEq within a larger 930 meter intercept of 1.161 gpt AuEq (Press Release July 27th, 2020), which is currently the best intercept on the project to-date.
- Tudor expanded the CS-600 Zone 100m to the southeast on Section 109+00 NE with a 75 meter intercept averaging 2.150 gpt AuEq in hole GS-20-66.
- GS-20-67 on Section 114+00 NE deviated drastically to the north thereby extending the length of the northeast axis of the 300 Horizon to 1100 meters. This hole also ended in mineralization with the last 15 meters (1325m to 1340m) averaging 0.905 gpt AuEq within a strong quartz stockwork zone similar to the DS-5 stockwork system found at the bottom of GS-19-47 (243 meters averaging 0.996 gpt AuEq). See Section 114+00 NE attached below.
- Notable increase to silver grades occurred within GS-20-73. A 78 meter intercept (534.5m to 612.5m) had elevated silver grades averaging 26.3 gpt Ag associated with 1.588 gpt gold.
Tudor Gold’s Vice President of Project Development, Ken Konkin, P.Geo., states: “We are very pleased to have intersected significant gold-copper-silver porphyry-related mineralization within a large magnetic anomaly called Perfectstorm (PSZ). This magnetic anomaly is located along a relatively evenly spaced frequency of large deposits following the Treaty-Sulphuretes Thrust Fault, approximately mid-way between the Iron Cap Deposit to the southwest and our Goldstorm System to the northeast. Results obtained from PS-20-01 and PS-20-02 on Section 89+00 NE demonstrate the consistency within these two drill holes completed off the same drill pad. PS-20-01 intersected 0.594 gpt AuEq over 133.5 meters while PS-20-02 intersected 151 meters of 0.621 gpt AuEq. The third PSZ System drill hole was a 300 meter step-out to the southwest and this hole (PS-20-03) intersected 220.5 meters of 0.402 gpt AuEq on Section 86+00 NE. The results suggest that the system is open to expansion to the southwest and to the northwest. The exploration target area is at least 1.5 kilometers long and 500-800 meters wide. We are very excited to see the results confirming that large mineralized polymetallic systems occur at a predictable frequency along the Sulphuretes-Treaty Thrust Fault belt. We are planning an aggressive diamond drill-hole program for 2021 to further expand the limits of the PSZ System’s potential mineralization, searching for the center of the metal pile as we have successfully done with the Goldstorm System.”
The two tables below provide the complete list of composite results from the eight drill holes reported, as well as the drill hole data including hole location, elevation, depth, dip and azimuth. Perfectstorm Sections 86+00 NE and 89+00 NE with Goldstorm Sections 109+00 NE, 110+00 NE and 114+00 NE are attached below along with corresponding plan maps (also available on the Company’s website).
Table l Gold equivalent composite values from five Goldstorm Zone holes and three PSZ drill holes.
Section | HOLE | Horizon | From | To | Interval (m) |
Au (gpt) |
Ag (gpt) |
Cu (ppm) |
AuEq (gpt) |
109+00 NE | GS-20-66 | 300H+CS600 | 6.0 | 529.5 | 523.5 | 0.673 | 1.86 | 425 | 0.758 |
109+00 NE | GS-20-66 | including 300H | 7.5 | 156.5 | 149.0 | 0.941 | 3.29 | 190 | 1.008 |
109+00 NE | GS-20-66 | including CS-600 | 454.5 | 529.5 | 75.0 | 2.075 | 1.87 | 352 | 2.150 |
109+00 NE | GS-20-68 | 300 | 4.85 | 798.0 | 793.15 | 0.521 | 1.73 | 127 | 0.561 |
109+00 NE | GS-20-68 | including 300H | 4.85 | 62.0 | 57.15 | 1.026 | 1.11 | 60 | 1.048 |
109+00 NE | GS-20-68 | & including 300H | 221.0 | 536.0 | 315.0 | 0.744 | 1.82 | 135 | 0.785 |
109+00 NE | GS-20-72 | 300H | 4.5 | 730.5 | 726.0 | 0.475 | 1.53 | 97 | 0.507 |
110+00 NE | GS-20-73 | 330H | 29.0 | 804.5 | 775.5 | 0.842 | 5.47 | 160 | 0.932 |
110+00 NE | GS-20-73 | or 330H | 29.0 | 978.5 | 949.5 | 0.749 | 4.67 | 152 | 0.828 |
110+00 NE | GS-20-73 | including | 29.0 | 80.0 | 51.0 | 1.276 | 6.52 | 168 | 1.379 |
110+00 NE | GS-20-73 | & including | 519.5 | 749.0 | 229.5 | 1.338 | 11.94 | 170 | 1.506 |
114+00 NE | GS-20-67 | 300H | 62.0 | 68.0 | 6.0 | 1.799 | 0.88 | 100 | 1.824 |
114+00 NE | GS-20-67 | and 300H | 126.5 | 908.0 | 781.5 | 0.486 | 2.99 | 238 | 0.557 |
114+00 NE | GS-20-67 | including 300H | 321.5 | 591.5 | 270.0 | 0.618 | 5.20 | 492 | 0.754 |
114+00 NE | GS-20-67 | and 300 | 1325.0 | 1340.0 | 15.0 | 0.860 | 1.64 | 175 | 0.905 |
89+00 NE | PS-20-01 | Main | 240.0 | 373.5 | 133.5 | 0.483 | 2.75 | 527 | 0.594 |
89+00 NE | PS-20-01 | including | 240.0 | 320.5 | 80.5 | 0.573 | 4.11 | 775 | 0.737 |
89+00 NE | PS-20-02 | Main | 265.5 | 416.5 | 151.0 | 0.514 | 3.16 | 469 | 0.621 |
89+00 NE | PS-20-02 | including | 300.5 | 350 | 49.5 | 0.781 | 6.71 | 648 | 0.957 |
86+00 NE | PS-20-03 | Main | 152.0 | 372.5 | 220.5 | 0.293 | 1.78 | 591 | 0.402 |
86+00 NE | PS-20-03 | including Upper | 152.0 | 171.5 | 19.5 | 0.885 | 0.82 | 160 | 0.919 |
86+00 NE | PS-20-03 | including Lower | 348.5 | 371 | 22.5 | 0.846 | 3.73 | 340 | 0.942 |
- All assay values are uncut and intervals reflect drilled intercept lengths.
- HQ and NQ2 diameter core samples were sawn in half and typically sampled at standard 1.5m intervals
- The following metal prices were used to calculate the Au Eq metal content: Gold $1322/oz, Ag: $15.91/oz, Cu: $2.86/lb. Calculations used the formula Au Eq g/t = (Au g/t) + (Ag g/t x 0.012) + (Cu% x 1.4835). All metals are reported in USD and calculations do not consider metal recoveries. True widths have not been determined as the mineralized body remains open in all directions. Further drilling is required to determine the mineralized body orientation and true widths.
Table lI Drill Hole Data

To view an enhanced version of Table II, please visit:
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Walter Storm, President and CEO, stated: “We are delighted to see continued success from the Treaty Creek drill program. Not only are we getting excellent results from all the drill holes completed this year, we have also discovered a new mineralized system at Perfectstorm. This demonstrates the remarkable potential that our flagship property holds. However, we must now focus all our exploration efforts on completing the drilling at Goldstorm. We intend to continue our 150 meter step-outs to the northeast on Section 115+50 NE as well as expand the drilling to the southeast and northwest along Sections 110+00 NE, 111+00 NE, 112+50 NE and 114+00 NE. The Goldstorm System remains open in all directions and at depth.”
Tudor Gold Corp and our associated service companies have taken extreme measures to maintain the highest professional standards while working within COVID-19 health and safety protocols. Only essential personnel are permitted to enter the camp and staging areas. Of those who are at the project site and staging site, we have strict daily monitoring of the workers’ temperatures and general health conditions. We have a certified paramedic at the staging area to examine all in-coming and out-going Tudor personnel and all service providers.
QA/QC
Drill core samples were prepared at MSA Labs’ Preparation Laboratory in Terrace, BC and assayed at MSA Labs’ Geochemical Laboratory in Langley, BC. Analytical accuracy and precision are monitored by the submission of blanks, certified standards and duplicate samples inserted at regular intervals into the sample stream by Tudor Gold personnel. MSA Laboratories quality system complies with the requirements for the International Standards ISO 17025 and ISO 9001. MSA Labs is independent of the Company.
Qualified Person
The Qualified Person for Tudor’s news release for the purposes of National Instrument 43-101 is Tudors Vice President Project Development, Ken Konkin, P.Geo. He has read and approved the scientific and technical information that forms the basis for their disclosure contained in their news release. The Qualified Person for this news release is James A. McCrea, P. Geo., for the purposes of National Instrument 43-101. While American Creek has not independently confirmed Tudors information, Mr. McCrea has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.
Treaty Creek JV Partnership
The Treaty Creek Project is a Joint Venture with Tudor Gold owning 3/5th and acting as operator. American Creek and Teuton Resources each have a 1/5th interest in the project creating a 3:1 ownership relationship between Tudor Gold and American Creek. American Creek and Teuton are both fully carried until such time as a Production Notice is issued, at which time they are required to contribute their respective 20% share of development costs. Until such time, Tudor is required to fund all exploration and development costs while both American Creek and Teuton have “free rides”.
Treaty Creek Background
The Treaty Creek Project lies in the same hydrothermal system as Pretium’s Brucejack mine and Seabridge’s KSM deposits with far better logistics.
Sulphurets Hydrothermal System
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Dynacor Declares Its Q3-2020 Quarterly Dividend
MONTREAL, Sept. 09, 2020 (GLOBE NEWSWIRE) — Dynacor Gold Mines Inc. (TSX: DNG) (Dynacor or the Corporation) is pleased to announce the declaration of a dividend payment of CA $0.015 per common share which will be payable on October 5, 2020, to shareholders of record as of the close of business on September 18, 2020. This dividend represents the 9th quarterly dividend payment made to shareholders.
Read MoreThe Corporation’s quarterly dividend qualifies as an “eligible dividend” for Canadian income tax purposes.
The payment and increase of dividends are at the discretion of the Board and will depend on the Corporation’s financial results, cash requirements, prospects and other factors deemed relevant by the Board.