Moneta’s Golden Highway PEA pegs posttax NPV at $236M
Moneta Porcupine Mines Inc. has released the excellent results from the company’s preliminary economic assessment (PEA) of the South West deposit at its 100-per-cent-owned Golden Highway project, located in Timmins, Ont. 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 More
South 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.
“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.”
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$):
The Project economics are most sensitive to revenue drivers (gold prices, gold grade and recovery). Operating and capital cost sensitivities are similar.
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
- 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.
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.
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.
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.
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.
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 dore 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
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.
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.
CONFERENCE CALL NUMBER
Toll Free Dial-In Number: (833) 772-0367
International Dial-In Number: (343) 761-2596
Please send your questions to management at larmstrongatmonetaporcupine.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 within 45 days and on SEDAR.
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
The Company holds a 100% interest in 6 core gold projects strategically located along the Destor-Porcupine Fault Zone in the Timmins Gold Camp with over 85 million ounces of past gold production. The projects consist of the Golden Highway, North Tisdale, Nighthawk Lake, DeSantis East, Kayorum and Denton projects. The Golden Highway Project covers 12 kilometres of prospective ground along the DPFZ of which 4 km hosts the current 43-101 mineral resource estimate comprised of an indicated resource of 676,900 ounces gold contained within 5.11 Mt at 4.12 g/t Au and a total of 1,386,600 ounces gold contained within 10.78 Mt at 4.00 g/t Au in the inferred category at a 2.60 g/t Au at South West and 3.00 g/t Au cut-off for the other deposits.
Maple Gold recaps H1 2020 drilling at Douay
Maple Gold Mines Ltd. has provided a recap of its exploration programs during the first half of 2020 and an outlook on exploration work planned at its Douay gold 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
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.
Key Drill Results from Winter 2020 Drill Campaign Hole Zone Length (m) From To Interval Au g/t DO-20-280 W. Porphyry 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 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 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 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 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 531 585 527.0 530.5 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-20-269 531 717 694.0 699.2 5.2 1.50 DO-20-275 Nika 348 180.0 181.0 1.0 5.30 DO-20-275 288.0 298.0 10.0 0.61 DO-20-279 Nika 285 64.0 90.0 26.0 0.50 Including 73.0 79.0 6.0 0.95 DO-20-282 Nika 450 96.0 103.0 7.0 0.59 DO-20-273 E Porphyry 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 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.
The scientific and technical data contained in this press release was reviewed and prepared under the supervision of Fred Speidel, M. Sc, P. Geo., Vice-President Exploration, of Maple Gold. Mr. Speidel is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Speidel has verified the data related to the exploration information disclosed in this news release through his direct participation in the work.
Quality Assurance (QA) and Quality Control (QC)
Maple Gold implements strict Quality Assurance (“QA”) and Quality Control (“QC”) protocols at Douay covering the planning and placing of drill holes in the field; drilling and retrieving the NQ-sized drill core; drill-hole surveying; core transport to the Douay Camp; core logging by qualified personnel; sampling and bagging of core for analysis; transport of core from site to the ALS laboratory in Val d’Or, QC; sample preparation for assaying; and analysis, recording and final statistical vetting of results. For a complete description of protocols, please visit the Company’s QA/QC page on the website.
About Maple Gold
Maple Gold Mines Ltd. controls the 357-square-kilometre Douay Gold Project located within the prolific Abitibi Greenstone Belt in northern Quebec, Canada. The Project has an established National Instrument 43-101 gold resource of 422,000 ounces in the Indicated category (8.6Mt grading 1.52 g/t Au) and 2.35 million ounces in the Inferred category (71.2Mt grading 1.03 g/t Au) with significant potential for resource expansion and new discoveries. The Project benefits from exceptional infrastructure access and the Company is currently focused on carrying out aggressive exploration programs to expand and update the known resource.
Almaden waits for SEMARNAT’s response re court decision
The second district court in Puebla has issued a decision in respect of the incident filed by Almaden Minerals Ltd.’s Mexican subsidiary on Feb. 4, 2020.Read More
As reported previously by the company (see press release dated Feb. 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 (amparo) regarding certain of the company’s mineral concessions that 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 the company’s press release dated Feb. 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, Congress, the 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.
About Almaden Minerals Ltd.
Almaden Minerals owns 100 per cent of the Ixtaca project in Puebla state, Mexico, subject to a 2-per-cent net smelter return royalty held by Almadex Minerals Ltd. The Ixtaca gold-silver deposit was discovered by Almaden in 2010.
Dynacor Gold to pay 1.5-cent dividend Oct. 5
Dynacor Gold Mines Inc. has declared a dividend payment of 1.5 cents per common share, which will be payable on Oct. 5, 2020, to shareholders of record as of the close of business on Sept. 18, 2020. This dividend represents the 9th quarterly dividend payment made to shareholders.Read More
The 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.
Dynacor is a dividend-paying gold production corporation headquartered in Montreal, Canada. The corporation is engaged in production through the processing of ore purchased from the ASM (artisanal and small-scale mining) industry. At present, Dynacor produces and explores in Peru, where its management team has decades of experience and expertise. In 2019, Dynacor produced 80,677 ounces of gold.
Dynacor produces environmental and socially responsible gold through its PX IMPACTtrademark gold program. A growing number of supportive firms from the fine luxury jewelry, watchmakers and investment sectors are paying a small premium to our customer and strategic partner for this PX IMPACTtrademark gold. The premium provides direct investment to develop health and education projects to our small-scale artisanal miner’s communities.
Enviroleach receives processing test results
Enviroleach Technologies Inc. has provided the following corporate update regarding its electronic waste and mining business initiatives.Read More
Enviroleach continues to pursue and develop commercial relationships in the primary and secondary metals sectors for its patented metal recovery technology. In the primary metals sector the Company is focused on opportunities for the recovery of gold from concentrates and ores including In-Situ Recovery. In the secondary metals sector the focus is the recovery of gold and other metals from electronic waste ("E-Waste").
Bulk Test Results on E-Waste Material
Between December 2019 and June 2020, the Company processed 32 individual test lots of E-Waste with a combined weight of over 215,900 lbs at its processing facility. The results of these tests confirmed:
- The efficacy of the Enviroleach processes with average metal recoveries in excess of 90%;
- Reagent consumption and processing costs; and
- Plant processing capacity at the targeted rate of 1 tonne per hour.
As a result of this test, the following target metals recovered and shipped to smelters and refiners:
- 196 troy ounces of Gold
- 1,360 troy ounces of Silver
- 25 troy ounces of Palladium
- 15.7 tonnes of Copper
Test Results on Mining Concentrates
In 2020, the Company has processed gold bearing concentrates for a number of mining clients. These tests demonstrated the efficacy and scalability of the Enviroleach leach process and the recovery and reusability of the leach solution. The tests resulted in the production of 462 ounces of gold from concentrates with gold recoveries over 95%.
Commercial Relationships and Partnerships
Further to Enviroleach’s June 15th Corporate Update, the Company continues to develop commercial relationships for the application of its technology and is in discussions with numerous potential suppliers, licensees, partners and gold mining companies worldwide.
COVID-19 Pandemic Effects
The COVID-19 pandemic has had a devastating effect on the E-Waste recycling sector. The global E-Waste supply chain has been severly disrupted due to decreased access to supply and logistics challenges. This global disruption impacted Enviroleach's operations, notably the previously announced staged production rate increase to full plant capacity.
In response to this unprecedented operating environment, Enviroleach is working to expand its supply chain with marketing initiatives targeting domestic and international recyclers. Due diligence is now underway with several potential suppliers in accordance with E-Waste recycling industry best practices.
About Enviroleach Technologies Inc.
Enviroleach Technologies is engaged in the development and commercialization of environmentally-friendly formulas and technologies for the treatment of materials in the primary and secondary metals sectors. Using its proprietary non-cyanide, water-based, neutral pH treatment process Enviroleach extracts precious metals from ores, concentrates, and E-Waste.
Backed by the momentum of a first-class staff of scientists and engineers, tens of thousands individual tests and assays, independent validations, strategic partners and tens of thousands of hours in research and development, Enviroleach's technology is emerging as a potential new standard for the provision of eco-friendly methods for the hydrometallurgical extraction of precious metals in both the mining and E-Waste sectors. Further information is available on the Enviroleach web site: https://Enviroleach.com
Altus Strategies’ Grainger acquires 29,000 shares
Altus Strategies PLC was informed on Sept. 9, 2020, of the following director share dealings:Read More
- On 3 to 8 September 2020, Matthew Grainger (Executive Director), purchased a total of 29,000 Ordinary Shares at a weighted average price of 65.72p per share via his Self Invested Personal Pension Plan; and on 3 to 8 September 2020, Matthew Grainger’s wife, Mrs Anna Grainger sold an equivalent 29,000 Ordinary Shares at a weighted average price of 62.42p per share.
Following the transactions as described above, Mr Grainger’s total shareholding has remained unchanged at 2,085,566 Ordinary Shares, representing 2.98% of the Company’s issued share capital respectively.
The information set out below is provided in accordance with the requirements of Article 19(3) of the EU Market Abuse Regulation No. 596/2014.
Notification and public disclosure of transactions by PMDRS and persons closely associated with them.
Purchases Price Volume 0.6655 pounds 10,000 0.6590 pounds 10,000 0.6360 pounds 2,500 0.6495 pounds 3,000 0.65 pounds 3,500 Sales Price Volume 0.65 pounds 10,000 0.63 pounds 2,500 0.62 pounds 5,000 0.60 pounds 10,000 0.6175 pounds 1,500
e)Aggregated information Aggregated volume29,000 shares Pricepounds sterling0.6242 (sale price) pounds sterling0.6572 (purchase price)f)Date of the transactions03 – 08 September 2020g)Place of the transactionsAIM
About Altus Strategies Plc
Altus Strategies is a London (AIM: ALS) and Toronto (TSX-V: ALTS) listed mining royalty company generating a diversified and precious metal focused portfolio of assets. The Company’s focus on Africa and differentiated approach, of generating royalties on its own discoveries as well as through financings and acquisitions with third parties, has attracted key institutional investor backing. The Company engages constructively with all stakeholders, working diligently to minimise its environmental impact and to promote positive economic and social outcomes in the communities where it operates. For further information, please visit http://www.altus-strategies.com.
HPQ-Silicon Resources does not say why stock is down
HPQ-Silicon Resources Inc. is issuing this press release in response to recent market activity. HPQ-Silicon does not usually comment on stock price and trading activity; however, given recent activity and inquiries from investors, the company would like to confirm that everything material about the company’s operations has been disclosed and that HPQ-Silicon is on target to produce its strongly sought-after nanosilicon powders and nanowires for delivery and testing to battery industry parties in December.Read More
The company also confirms the Sept. 3, 2020, closing of the $2.7-million non-brokered private placement, announced on Sept. 1, 2020. As a result of this financing, HPQ-Silicon has never been as well financed to push forward on its nanosilicon initiatives for the battery sector and other renewable energy applications, from which HPQ-Silicon has announced two NDAs (non-disclosure agreements).
“HPQ Purevap quartz reduction reactor and HPQ Nano Purevap nanosilicon reactor processes are unique processes that will allow us to deliver to advanced materials companies and battery manufacturers a cost-competitive, tailor-made product that can replace graphite in batteries and thereby allow the deployment of truly powerful, next-generation lithium-ion batteries,” said Bernard Tourillon, president and chief executive officer of HPQ-Silicon. “These processes open up unique, multibillion-dollar business opportunity for HPQ and PyroGenesis as we strive to deliver the critical silicon nanomaterials required by the surging lithium-ion battery market and other large renewable energy markets.”
Interest in Purevap nanosilicon reactor game-changing, low-cost potential
Research indicates that replacing graphite with nanosilicon powders could allow the manufacturing of high-performance lithium-ion batteries to deliver an almost-10-fold increase in anode capacity, inducing a 20-per-cent-to-40-per-cent gain in the energy density of the next generation of lithium-ion batteries. Silicon nanomaterial potential to meet the energy storage demand of the future is undeniable and is generating massive investments.
Despite the strong research and investment in silicon nanomaterial, current manufacturing processes to make nanosilicon powders are not scalable or commercially viable. By December, 2020, HPQ-Silicon will be on the starting blocks of demonstrating a process that can address both the scalability and cost hurdles required by the industry.
About HPQ-Silicon Resources Inc.
HPQ-Silicon Resources is a Canadian producer of innovative silicon solutions based in Montreal. The company is building a portfolio of unique, high-value specialty silicon products needed for the coming renewable-energy revolution.
Frontier Lithium begins PEA study for PAK
Frontier Lithium Inc. has commenced a preliminary economic assessment study (PEA) of vertically integrated operations to produce lithium hydroxide chemicals from the PAK lithium project. This study will demonstrate the Project’s full potential by leveraging its high quality, low impurity resource to produce premium spodumene concentrates and to introduce Frontier as a future fully-integrated, lithium hydroxide supplier to the emerging electric vehicle and lithium battery market.Read More
Frontier has engaged WSP Canada Inc. (TSX:WSP) to work closely with the Company and its technology partner XPS Expert Process Solutions (“XPS”), a Glencore company, in leading the PEA. WSP is one of the largest engineering firms in Canada and has a mining division maintaining independent consulting geologists and engineers. Frontier is targeting completion of the PEA in this calendar year 2020.
Trevor Walker, President and CEO commented, “The recent increase in the Project resource size and strong metallurgical results coupled with encouraging progress on current bench-scale lithium chemicals test work should provide the basis for a positive PEA outcome. The PEA will include a vertically integrated spodumene mining, milling and downstream lithium hydroxide production facility. The decision to pursue the vertically integrated model is being driven by strong lithium demand outlook, growing need for higher quality battery raw materials and very encouraging hydrometallurgical progress with ongoing evaluation test work. The PEA (under NI 43-101 standards) will build on the foundation set by our rare ability to produce high quality Technical grade spodumene concentrate and will highlight the potential of a vertically integrated operation in the Great Lakes region of Northern Ontario.”
Frontier also announces that certain insiders and consultants (the “Optionees”) of the Company have agreed to cancel an aggregate of 8,050,000 stock options held by optionees. Upon cancellation, the Company will have 2,816,666 stock options outstanding under the Plan, of which there are 500,000 stock options exercisable at a price of $0.24 per common share expiring on April 28, 2021 and 2,316,666 stock options exercisable at a price of $0.30 per common share expiring on November 11, 2024.
About Frontier Lithium
Frontier Lithium is a Sudbury based, publicly listed, junior mining company with the largest land position in an emerging premium lithium mineral district located in the Great Lakes region of northern Ontario. The company maintains 100% interest in the PAK Lithium Project which contains one of North America’s highest-grade, large tonnage hard-rock lithium resources in the form of a rare low-iron spodumene. The Project has significant upside exploration potential. Frontier is a pre-production business targeting the manufacturing of battery quality lithium hydroxide in the Great Lakes Region to support electric vehicle and battery supply chains in North America and globally. Frontier maintains a tight share structure with management ownership approximately 30% of the Company.
Southern Silver shareholders elect 8 directors at AGM
The following directors were re-elected at Southern Silver Exploration Corp.’s annual general meeting held on Sept. 4, 2020: Lawrence Page, Q.C., D. Roger Scammell, Eugene Spiering, Nigel Bunting, Larry Buchanan, Peter Cheesbrough, Gina Jones and Donald Head. In addition, the shareholders re-appointed Smythe LLP, Chartered Accountants, as auditor of Southern Silver and approved Southern Silver’s rolling incentive stock option plan pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. The plan is subject to TSX Venture Exchange acceptance.Read More
Shareholders also approved the purchase of Electrum Global Holdings L.P.’s 60% ownership interest in Southern Silver Holdings Limited and indirect 60% interest in the Cerro Las Minitas Property located in Durango, Mexico. More details of this transaction are included in the Company’s news release of June 22, 2020 as well as in the information circular for the annual general meeting filed on SEDAR. This transaction is subject to TSX Venture Exchange acceptance and is expected to close shortly.
At the annual general meeting, shareholders also resolved to adopt a Shareholder Rights Plan to ensure the fair treatment of all Southern Silver shareholders in the event of an unsolicited take-over bid for the outstanding common shares of the Company. In the event that a take-over bid should occur, the Shareholder Rights Plan provides a mechanism to ensure that shareholders have adequate time to properly evaluate and assess it without facing undue pressure or coercion. The Shareholder Rights Plan also provides the board of directors with additional time to consider any take-over bid and, if applicable, to explore alternative transactions in order to maximize shareholder value. Accordingly, the Shareholder Rights Plan is not designed to prevent take-over bids that treat the Company’s shareholders fairly. A copy of the Shareholder Rights Plan Agreement will be available under Southern Silver’s profile on SEDAR at http://www.sedar.com. Reference should be made to the full text of the plan for the details of its provisions. The Shareholder Rights Plan is subject to TSX Venture Exchange acceptance.
The following officers were re-appointed subsequent to the annual general meeting: Lawrence Page, Q.C. as President, Robert Macdonald as Vice President, Exploration, Graham Thatcher as Chief Financial Officer, and Arie Page as Corporate Secretary.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious metal exploration and development company with a current focus on the discovery of world-class mineral deposits in north-central Mexico and the southern USA. Our specific emphasis is on the 100% owned Cerro Las Minitas, silver-lead-zinc project, located in the heart of Mexico’s Faja de Plata, which hosts multiple world-class mineral deposits such as Penasquito, San Martin, Naica and Pitarrilla. We have assembled a team of highly experienced technical, operational and transactional professionals to support our exploration efforts in developing the world class Cerro Las Minitas project into a premier, high-grade, silver-lead-zinc mine. Our property portfolio also includes the Oro porphyry copper-gold project located in southern New Mexico, USA. The Company engages in the acquisition, exploration and development either directly or through joint-venture relationships in mineral properties in major jurisdictions.
Mountain Province shareholders elect seven directors
The nominees listed in the management proxy circular for the 2020 annual general and special meeting of shareholders have been elected as directors of Mountain Province Diamonds Inc. Detailed results of the vote for the election of directors at the annual meeting held virtually on Sept. 9, 2020, are set out in the attached table.Read More
Nominee Votes for % for Votes withheld % withheld Jonathan Comerford 84,967,999 97.54% 2,146,759 2.46% Stuart Brown 84,965,619 97.53% 2,149,139 2.47% Brett Desmond 84,971,898 97.54% 2,142,860 2.46% Karen Goracke 85,003,253 97.58% 2,111,505 2.42% Tom Peregoodoff 84,100,517 96.54% 3,014,241 3.46% Dean Chambers 85,002,214 97.57% 2,112,544 2.43% Ken Robertson 85,001,864 97.57% 2,112,894 2.43%
At the annual meeting, KPMG LLP was reappointed as auditor of the company at remuneration to be fixed by the directors. The company’s long-term equity incentive plan together with all unallocated options, rights and other entitlements thereunder were reapproved by a majority of shareholders.
About Mountain Province Diamonds Inc.
Mountain Province Diamonds is a 49-per-cent participant with De Beers Group in the Gahcho Kue diamond mine located in Canada’s Northwest Territories. The Gahcho Kue joint venture property consists of several kimberlites that are actively being mined, developed and explored for future development. The company also controls 67,164 hectares of highly prospective mineral claims and leases immediately adjacent to the Gahcho Kue joint venture property that include an indicated mineral resource at the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.
Excellon completes share consolidation
Excellon Resources Inc.’s consolidation, completed in connection with the company’s planned listing on the New York Stock Exchange and as described in its Sept. 8, 2020, press release, is now effective.Read More
The trading symbol for the company’s shares on the Toronto Stock Exchange will remain EXN. The trading symbol for the company’s shares on the OTC has changed to EXLLFD for a period of 20 trading days after the consolidation was effected or until the company’s shares start trading on the NYSE, whichever comes first.
Excellon’s shares are expected to trade on the NYSE under the ticker symbol EXN. Subject to the approval of the NYSE and the satisfaction of all applicable listing and regulatory requirements, the company expects its shares to commence trading on the NYSE by the end of September. A trading date will be announced once all regulatory requirements are satisfied. The trading on the OTC will cease concurrent with the NYSE listing.
About Excellon Resources Inc.
Excellon’s vision is to create wealth by realizing strategic opportunities through discipline and innovation for the benefit of its employees, communities and shareholders. The company is advancing a precious metals growth pipeline that includes: Platosa, Mexico’s highest-grade silver mine since production commenced in 2005; Kilgore, a high-quality gold development project in Idaho with strong economics and significant growth and discovery potential; and an option on Silver City, a high-grade epithermal silver district in Saxony, Germany, with 750 years of mining history and no modern exploration. The company also aims to continue capitalizing on current market conditions by acquiring undervalued projects.
Millrock drills 1.19 m of 0.76 g/t Au at 64North
Millrock Resources Inc. has provided an update on drilling and other exploration activities at its 64North gold project. Exploration work is being funded and managed by Resolution Minerals in a collaborative arrangement with Millrock as the project operator. The 64North Gold Project is a very large tract of claims in Alaska’s emerging Goodpaster Gold District. Drilling has been ongoing since early June and continues at present.Read More
The current drilling program is focused on the Aurora, Echo, and Reflection targets, all of which are adjacent to and generally west of the Pogo Mine property, which is owned and operated by Northern Star Resources Ltd. Northern Star has previously reported a gold resource of 5.95 million ounces of gold in a series of veins grading 9.6 grams per tonne gold. More than four million ounces of gold has already been mined at Pogo and Northern Star has recently announced a new gold discovery called the Goodpaster deposit a short distance away from the mutual claim boundary. Millrock cautions that mineralization on the nearby Northern Star property is not necessarily indicative of gold mineralization hosted on the Company’s property. Presently, Millrock and Resolution are testing the Aurora Target southwest of the Goodpaster deposit held by Northern Star. Northern Star has recently indicated they will devote $21 million to perform delineation drilling at Goodpaster.
Holes 20AU001 and 20AU002 have been previously reported. Holes 20AU003 and 20AU004 are reported in this press release. Holes 20AU005 and 20AU006 have been recently completed and hole 20AU007 is in progress.
Assay Results Hole ID’s 20AU03 and 20AU04
Assays from Aurora drill holes 20AU003 and holes 20AU004 indicate minor gold mineralization as detailed below. The alteration observed in the drill core matched the CSAMT and ZTEM geophysics anomalies. The Company is encouraged by the strong alteration, presence of gold, para-gneiss host rocks, and presence of sulfides indicating the strong fertility of the system.
Intervals Hole 20AU003:
- 0.86m at 0.35 g/t Au from 19m depth;
- 0.86m at 0.44 g/t Au from 423m depth.
Intervals Hole 20AU004:
- 0.78m at 0.41 g/t Au from 522m depth;
- 1.19m at 0.76 g/t Au from 762m depth.
A ZTEM/MAG airborne geophysical survey and a ground-based CSAMT survey were recently completed. Conductive zones were identified in areas where geochemical anomalies and gold-anomalous intersections had been identified by prior explorers. A field team of geologists is presently conducting sampling and mapping operations.
Earn-In Agreement Terms
Resolution can earn up to a 60% interest in the 64North Gold Project through exploration expenditures of US$20 million, payment of US$200,000 cash, and issuance of 38 million Resolution shares. The minimum commitment for 2020 is US$5.0 million. The partners are developing plans for further drilling and other exploration to be carried out in fall of 2020. Other details of the agreement between Millrock and Resolution are documented in Millrock’s announcement made on December 16, 2019.
Quality Control and Quality Assurance
Millrock adheres to stringent Quality Assurance/Quality Control (“QA/QC”) standards. Drill core samples are kept in a secure location at all times. For this program two laboratories were used; some samples were sent to ALS Chemex prep laboratory in Fairbanks, Alaska USA, and others were sent to Bureau Veritas also in Fairbanks, Alaska. Representative half-core samples underwent sample preparation in Fairbanks. Prepared samples sent to ALS Chemex were subsequently analyzed at ALS Chemex laboratories in Whitehorse, Yukon, Canada. Gold was analyzed by Fire Assay (specifically ALS code Au-AA25) by fire assay and AAS using a gram nominal sample weight). Prepared samples sent to Bureau Veritas were sent to the Bureau Veritas laboratory in Reno, Nevada (BV code FA430/AA). The following QA/QC protocols were been adopted for this program: 1) Duplicates created as coarse crush duplicates on every 50th sample (2% insertion) in the sample preparation process at the laboratory, and 2) Blank material inserted at a rate of 2 blanks per 100 samples (2% insertion) and 3) Standards/Certified Reference Material (CRM’s) every 20th sample (5% insertion) plus additional random insertions at the supervising geologist’s discretion. All results from duplicates, blanks, and standards were reviewed and found to be accurate and within acceptable tolerances
The scientific and technical information disclosed within this document has been prepared, reviewed, and approved by Gregory A. Beischer, President, CEO, and a director of Millrock Resources. Mr. Beischer is a qualified person as defined in NI 43-101.
About Millrock Resources Inc.
Millrock Resources is a premier project generator to the mining industry. Millrock identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is recognized as the premier generative explorer in Alaska, holds royalty interests in British Columbia, Canada, and Sonora State, Mexico, and is a significant shareholder of junior explorer ArcWest Exploration Inc. and has a shareholding in Resolution Minerals Limited. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, and Altius, as well as junior explorers Resolution, Riverside and PolarX.
Brixton Metals samples up to 36.9 g/t Au at Thorn
Brixton Metals Corp. has provided an update on its newly expanded now 2,600-square-kilometre mineral tenure Thorn gold-copper-silver project, located in the Golden Triangle of northwestern British Columbia.Read More
Drilling is ongoing with 3,025m within 16 core holes on the West and Central Outlaw Gold targets completed and 3 deep holes planned for the Camp Creek porphyry target
5,418 soil and 1,282 rock samples have been collected. Field work is ongoing with an emphasis on the newly acquired Trapper and Metla zones.
Chairman and CEO of Brixton Metals, Gary R. Thompson stated, “We are excited about the number of high grade gold-silver-copper samples that have been collected so far this season at the newly expanded Thorn district-scale property. The scale of the mineralized system at the Thorn District is remarkable. We are about halfway through our 5000-6000m drill program for this season and are keen to receive the upcoming assay results. We have completed drilling at the Outlaw Gold Zone and are now starting to drill the Camp Creek Porphyry Cu-Au target.”
Brixton has completed 3,025m within 16 core holes on the West Outlaw and Central Outlaw Gold Target. Results shall be released as they are received from the assay lab. No previous drilling was conducted on the Outlaw West target. It was in 2018, where the first high gold numbers were collected of up to 39.4 g/t Au from a rock grab sample. Additional soil and rock sampling in 2020 returned up to 68.8 g/t Au from rock grab sample, and soil and rock samples have defined a gold anomaly of 500m by 750m in an east-west trend, see Figure 3 above. If the drilling is successful, this would represent a new discovery. The objective of drilling on the Central Outlaw Zone is to expand surface gold mineralization in a north-south direction and to expand gold mineralization to the east to a 700m strike. The gold mineralization in the Central Outlaw Zone forms a tabular body up to 60m thick with a shallow easterly plunge, hosted by interbeds of siltstone and graywacke.
Now that the Company has consolidated the Trapper claims, it can build on the Trapper Gold Trend through additional geochemical surveys, geological mapping and drilling.
Three deep holes between 600-1000m max depth each are planned on the Camp Creek Porphyry target. The proposed hole on IP line 600 is targeting a high chargeability anomaly that suggests porphyry mineralization of higher grade than that encountered by hole THN19-162 located 400m to the north given its closer proximity to a potential sulphides-rich porphyry centre (please see Figure 5 below).
Mr. Antonio Celis, M.Sc., P.Geo., who is a qualified person as defined by National Instrument 43-101, has reviewed and approved the information in this press release.
About Brixton Metals Corporation
Brixton is a Canadian exploration and development company focused on the advancement of its gold, copper and silver projects toward feasibility. Brixton wholly owns four exploration projects, the Thorn copper-gold-silver and the Atlin Goldfields projects located in NWBC, the Langis-HudBay silver-cobalt projects in Ontario and the Hog Heaven silver-gold-copper project in NW Montana, USA. Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB and in the USA OTCQB market under the ticker symbol BBBXF. For more information about Brixton please visit our website at http://www.brixtonmetals.com .
Allegiant to Commence 15,000 Metre Drill Program at Eastside
RENO, Nev., Sept. 10, 2020 (GLOBE NEWSWIRE) — Allegiant Gold Ltd. (“Allegiant” or the “Company”) (AUAU: TSX-V) (AUXXF: OTCQX) is pleased to announce that a 15,000 metre, 80 hole drill program is scheduled to commence at the 100% owned Eastside gold project in Nevada on or about September 15th, 2020.Read More
Eastside has significant expansion potential. The drilling at Eastside is designed to test additional targets, confirm and expand the resources at the Castle Zone, and increase ounces at the Original Zone which currently hosts a current Inferred Mineral Resource of 1,094,000 gold-equivalent (“AuEq”) ounces utilizing a US$1,550/ounce gold price and a US$19.67/ounce silver price*. Eastside also hosts a near surface historical* oxide gold resource totalling an additional 273,173 ounces (see press release of January 27, 2020)*.
Peter Gianulis, CEO of Allegiant Gold, commented: “This highly anticipated drilling program has the potential to position Eastside as a leading gold exploration and development project in Nevada. An updated 43-101 resource estimate will be carried-out immediately following completion of drilling.”
MAP OF EASTSIDE
Allegiant has contracted Boart Longyear to carry-out the drill program. Drilling will commence first at the Boss Pit within the Castle Zone on the south end of the Eastside Project. Boss produced approximately 30,000 ounces gold for a privately-owned company from an open pit and heap leach in the 1980’s. No historical records are available for the 1980’s Boss mining and leaching.
The 273,173 ounce gold historical resource at Castle does not include any ounces from the mineralization at the Boss pit. During detailed geologic mapping Allegiant recognized that gold mineralization possibly continues into the walls of the pit. Allegiant geologists sampled the pit walls in mid-2020, with a series of 10 feet (3m.) continuous samples taken along the walls and cutting across the more obvious structures as near perpendicular as possible. The upcoming drill program is designed to extend this mineralization both laterally and below the existing pit.
Recent 2020 mapping and sampling by Allegiant geologists of the Boss pit walls indicates that more gold mineralization remains at Boss. Continuous chip sampling across several broad structures exposed in the pit walls produced a number of notable results, including:
110 feet (33.3 m.) of width yielded 0.98 g/t gold on a deeper bench in the south/southwest pit wall.
80 feet (24.2 m.) width of 1.93 g/t gold from an upper bench on the south side of the pit.
Two zones of 10 feet (3 m.) of 1.71 g/t gold and an additional 50 feet (15.1 m.) of 1.65 g/t gold on the uppermost bench of the east/southeast side of the pit.
40 feet (12.1 m.) of 0.52 g/t gold on the upper bench of the north/northwest side of the pit
50 feet (15.1 m.) of 0.76 g/t on the bench just below the above on the north/northwest side of the pit.
In addition, Allegiant mapping and surface sampling (0.1 to 3.9 g/t gold) has indicated a northerly-trending structural zone running along the eastern pit margin and extending at least 300 meters north of the pit to the edge of alluvial cover, and possibly 200 m. or more south of the pit, also under alluvial cover. This zone will be tested by a series of angled drill holes.
Allegiant plans to complete a minimum of thirty drill holes in the upcoming drilling program near the Boss pit, totaling 5,450 m. Additional drilling may be added with favorable results. Allegiant’s goal is to produce a 43-101 considering the whole Castle area, including Boss, in late 2020.
On completion of drilling at Boss, drilling will continue at the Original Zone and several new targets will be tested.
Historical Estimate*: Castle Claim Block
The Castle claims cover an area of 9.6 sq. km and are located 13 km south of the Original Zone but still within the Eastside property. The Castle claims are covered by shallow alluvium of 10-30 metres with potential for increased resources and contain a near surface historical** oxidized resource estimate of 273,173 gold ounces as outlined in the table below:
* The updated resource estimate (“Updated Resource Estimate and NI 43-101 Technical Report, Eastside and Castle Gold-Silver Project Technical Report, Esmeralda County, Nevada”) was conducted by Mine Development Associates (“MDA”) of Reno, Nevada with an effective date of December 30, 2019. Contained pit-constrained Inferred Resources of 1,094,000 AuEq ounces at 57,050,000 tonnes at 0.60 g/t AuEq (gold-equivalent ounces were calculated by ALLEGIANT using a silver/gold ratio of 80:1) In accordance with NI 43-101 the MDA Technical Report dated January 24, 2020 will be filed on SEDAR. This report builds on and supersedes the NI 43-101 reports of Ristorcelli (December 2016) and Ristorcelli (July 2017) titled “Resource Estimate and Technical Report, Eastside Gold-Silver Project, Esmeralda County, Nevada” prepared for Allegiant with an Effective Date of July 25, 2017. A copy of the Eastside Technical Report can be found on SEDAR at www.sedar.com.
** The historical resource estimate for the Castle claims was completed by James D. Greybeck, Senior Geologist for Cordex Exploration Co. in April 1999, under the direction of Andy B. Wallace, then Manager of Cordex Exploration Co. and Vice President of Rayrock Mines, Inc. This report and data used in its preparation has been recently reviewed by Andy B. Wallace for the purpose of this press release under his obligations a Qualified Person for ALLEGIANT. Drill data used for Greybeck’s report was from Cordex Exploration Co., Kennecott Exploration, Houston Oil and Minerals, Falcon Exploration, and Mintek Resources which data is on file in the offices of Cordex Exploration Co. The data is judged relevant and reliable by Andy B. Wallace. The resource was termed a “Geologic Resource” at the time of Greybeck’s report, which was in line with current practice for the time. Greybeck prepared geological cross sections and calculated the resource by hand, using a polygonal method with a lower cut-off of .005 opt Au (0.17 g/t Au). Where drilling was closely spaced gold values were interpolated between cross sections using weighted averages projected 50 feet on either side of the cross section. ALLEGIANT plans additional drilling to confirm Greybeck’s interpretations and to fill in gaps in the drilling. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. ALLEGIANT is not treating the historical estimate as current mineral resources or mineral reserves.
Allegiant owns 100% of 10 highly-prospective gold projects in the United States, 6 of which are located in the mining-friendly jurisdiction of Nevada. Four of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.