Metals Update 14/04/2021

Euro Sun Mining files Colnic, Rovina study on SEDAR

Euro Sun Mining Inc. has filed the National Instrument 43-101-compliant technical report supporting the definitive feasibility study (DFS) on the Colnic and Rovina open pits — the initial phase of development of its Rovina Valley gold and copper project in Romania. Included in the Technical Report is an updated mineral resource estimate and the maiden mineral reserve statement for the open pit deposits, namely Colnic and Rovina, incorporating feasibility level operating parameters and metal price update for the resources. All amounts are in US dollars unless otherwise indicated.

The Technical Report titled NI 43-101 TECHNICAL REPORT ON THE ROVINA VALLEY PROJECT IN ROMANIA dated April 14, 2021 was prepared by Nicholas Dempers, Principal Process Engineer, New SENET Pty; David Thompson, Principal Mining Engineer DRA Projects (PTY) Ltd; Sivanesan Subramani, B.Sc. Geo, Caracle Creek International Consulting MINRES; Robert Cross, P.Eng., P.Geo. Geological Engineer Klohn Crippen Berger (KCB) (Canada); Carlos Diaz, MASc, B.Eng., KCB Canada; Andrew Hovey, BSc Earth Sciences, RPGEO, KCB, Brisbane; Richard Lawrence B.Sc, Phd, Lawrence Consulting Ltd; Kevin Leahy, BSc (Hons), PhD, CGeol, SiLC Technical Director, Environmental Resource Management Ltd.

The Rovina Valley Project consists of two open pit gold-copper deposits, Colnic and Rovina, and the underground Ciresata gold-copper deposit. The DFS is focused on the exploitation of the two open pit operations. The Ciresata underground deposit is expected to be phased in following the completion of the Colnic and Rovina pits.

HIGHLIGHTS

Average annual gold equivalent production of 146,000 ounces in year 1-10, consisting of 106,000 ounces of gold and 19 million pounds of copper per annum

Average AISC of $790/gold equivalent ounces in years 1-10

Initial capex is expected to be $399 million (including $12.7 million in pre-strip)

Pre-Tax NPV5% of $447 million with an IRR of 21.3% and Post-Tax NPV5% of $359 million with an IRR of 19.2% at $1,550/oz gold and $3.30/lb copper

Processing 21,000 tonnes per day incorporating simple flotation and dry stack tailings

Phase 1 production of over 1.3 million ounces of gold and 400 million lbs of copper (185k tonnes) over 16.8 years

Scott Moore, Euro Sun’s CEO states, “With the filing of the NI 43-101 compliant study, Euro Sun can now begin detailed project finance discussions with international banks and credit funds as well as off-take agreements with smelters to optimize the funding package for our initial phase of development at the Rovina Valley Project. We have initiated our Strategic Environmental Assessment this month and look forward to providing ongoing updates on the advancement in permitting relating to all associated approvals required to begin construction.”

Table 1: Definitive Feasibility Highlights
 
 DFS Phase 1 Highlights                          Life of Mine   First 10 Years
Gold price                                             $1550/oz              
Copper price                                           $3.30/lb              
Processing Rate                                 21,000 tonnes per day        
Mine Life                                        16.8 Years                  
Average annual gold equivalent production     132,000 ounces   146,000 ounces
Average annual gold production                 81,000 ounces   106,000 ounces
Average annual copper production         24.3 million pounds19 million pounds
All-in sustaining costs                        $813/oz Au eq    $790/oz Au eq
                                                                             
Pre-strip Capital                              $12.7 million                 
Initial Capital                               $386.6 million                 
Total Initial Capital                         $399.2 million                 
Sustaining Capital                             $47.7 million                 
                                                                             
Pre-Tax NPV (5% discount rate)                  $447 million                 
Pre-Tax IRR                                           21.3 %                 
Post-Tax NPV (5% discount rate)               $359.3 million                 
Post-Tax IRR                                          19.2 %                 


The Technical Report can be found on the Company’s website at http://www.eurosunmining.com and under the Company’s profile on SEDAR at http://www.sedar.com.

In connection with the filing of the Technical Report, the Company has also filed an amended and restated annual information form dated April 14, 2021, which now references the Technical Report and updates certain non-material information found under the heading “Mineral Projects Environmental” and includes an updated risk factor under the heading “Environmental and other Regulatory Requirements”.

Tinka drills 12 m of 3.05% Sn at Ayawilca

Tinka Resources Ltd. has released tin assays from the 7,600-metre, 21-hole, 2020/2021 drill program recently completed at the Ayawilca project in central Peru.

While the focus of the 2020-2021 drill program was on resource definition of zinc-silver mineralization, significant tin mineralization was also intercepted in several of the drill holes. Of note, Tinka has discovered a new zone of high-grade tin mineralization at South Ayawilca, immediately adjacent to the highest grade zinc resource. This is the first time that tin mineralization of such high grade has been discovered at South Ayawilca. Tin mineralization was intersected in eight adjacent drill holes, including seven of the recent holes, in zones that typically contain very minor or no zinc mineralization. The tin mineralization is believed to be hosted by multiple, flat-dipping lenses with each lens up to 12 metres in thickness and with horizontal dimensions of approximately 200 metres, remaining open to the north. Tin mineralization in hole A21-187 (12 metres grading 3.1% tin) occurs 40 metres above zinc mineralization in the same hole (4.1 metres grading 17.7% zinc) (link to news release). Tin occurs as cassiterite (SnO2), the most common ore-forming mineral of tin. Refer to maps in Figures 1 and 2 for the location of the tin mineralization.

Tin is traditionally used as a solder and for tin plating of other metals but it also is a key metal in new applications such as autonomous and electric vehicles, renewable energy, energy storage, and advanced computing. Tin has the highest value of the major base metals and is currently trading at around US$27,000 per tonne or 3 times the value of copper and 9 times the value of zinc (source).

Drill Highlights:

Tin results – South Area:

Hole A21-18712.0 metres @ 3.05% tin from 262.0 metres depth, including2.0 metres @ 5.43% tin from 266.0 metres depth.

Hole A21-1852.0 metres @ 1.25% tin from 332.0 metres depth; and7.0 metres @ 0.78% tin from 373.0 metres depth;

Hole A21-1844.5 metres @ 0.54% tin from 286.4 metres depth;

Hole A20-1772.2 metres @ 0.63% tin from 317.0 metres depth;

Hole A20-1764.0 metres @ 0.66% tin from 300.0 metres depth;

Hole A20-1744.0 metres @ 1.03% tin from 348.0 metres depth;

Hole A20-1733.9 metres @ 0.96% tin from 253.1 metres depth;

Hole A17-063*11.0 metres @ 1.81% tin from 275.0 metres depth.

Zinc results – South Area:

Hole A21-18416.6 metres @ 5.0% zinc & 12 g/t silver from 281.8 metres depth.

True thicknesses of the tin and zinc intersections above are estimated to be at least 90% of the downhole thicknesses. Tin intervals are calculated at a 0.5% Sn cut-off. *Result was partially announced in an earlier drill program.

President and CEO of Tinka, Dr. Graham Carman, stated: "While Ayawilca is best known for its large and high-grade Zinc Zone resource, the property also hosts a Tin Zone resource which is mostly located at deeper levels along a northeastern trend away from the highest grade zinc deposit at South Ayawilca. The new discovery of tin at South Ayawilca is potentially very important as a complement to the zinc deposit, as it is the first time we have encountered such high grades of tin immediately adjacent to one of the best zones of zinc at the property, an area which would likely be prioritized in the early years of a future mining operation. This new style of tin mineralization appears to be different to that observed previously in the deeper part of the Tin Zone at Central Ayawilca – the new style contains what appears to be ‘clots’ of coarse-grained cassiterite mineral grains (see photographs of the tin mineralization in Figure 3). The Company is immediately prioritizing mineralogical test work of this exciting new discovery, including gravitational separation of the cassiterite which has a very high density compared with most other minerals including sulphides."

"All significant intersections of zinc-silver and tin in the 2020-2021 program have now been reported. Two holes followed up on a high-grade shallow zinc-silver intersection at 100 metres depth in A20-177 (holes A21-188 and 189) hosted by sandstone overlying the main carbonate host rock. Only narrow mineralized structures were encountered. Tinka geologists interpret that the high-grade zinc-silver veins hosted in the sandstone have variable thicknesses and may have different orientations which require tighter drill spacing to be adequately tested."

"Now that the drill results are fully reported, the Company is advancing Ayawilca towards a resource update and an updated Preliminary Economic Assessment by early Q3 2021."

Tin Mineralization in Drill hole A21-187

Tin mineralization in hole A21-187 is 12 metres in downhole thickness (which approximates true width) and hosted by massive sulphides consisting of pyrrhotite (magnetic iron sulphide) and lesser pyrite with minor quartz, carbonates and other silicates. Tin minerals occur as clots and disseminations of cassiterite (SnO2) within the pyrrhotite matrix and are commonly associated with carbonate infillings. See photos of the tin mineralized drill core in Figure 3.

Tables 1 and 2 highlight the details of the recent drill results for tin, and zinc-silver-lead intersections, respectively.

Table 3 presents a summary of all drill hole collars in the 2020-2021 program.

About Ayawilca: The Zinc Zone contains an estimated 1.8 billion pounds of zinc and 5.8 million ounces silver in Indicated Mineral Resources, and 5.6 billion pounds zinc and 25.2 million ounces silver in Inferred Mineral Resources, while the Tin Zone contains an estimated 200 million pounds of tin in Inferred Mineral Resources (see news release dated November 26, 2018). The Colquipucro Silver Zone contains an estimated 14.3 million ounces silver in the Indicated category and 13.2 million ounces silver in the Inferred category as potentially open-pittable resources (see Technical Report dated July 2, 2019).

Summary of significant tin results from the 2020-2021 drill program at Ayawilca
Drill HoleFrom mTo m  Interval mSn %Cu %Ag ppmZn % 
A20-173   252.10256.003.90      0.960.0312    4.10 
A20-174   288.00290.002.00      1.000.063     0.10 
and       348.00352.004.00      1.030.2017    0.23 
A20-176   300.00304.004.00      0.660.058     <0.01
A20-177   317.00319.202.20      0.630.066     2.10 
A21-184   286.40290.904.50      0.540.0415    8.39 
A21-185   332.00334.002.00      1.250.057     0.56 
and       373.00380.007.00      0.780.2531    0.33 
A21-187   262.00274.0012.00     3.050.055     0.05 
incl      266.00268.002.00      5.430.047     0.02 
A17-063*  275.00286.0011.00     1.810.046     0.01 
and       327.40332.004.60      3.080.5253    19.08
and       369.00374.505.50      1.220.2216    0.05 

* Drill hole results were partially released November 3rd, 2017.

All intersections are &amp;#8216;manto&#39; style and true thicknesses are estimated to be at least 90% of downhole thicknesses.

Summary of significant new zinc results from the 2020-2021 drill program at Ayawilca
Drill HoleFrom mTo (m)Interval mZn % Pb %Ag ppmIn ppm
A21-184   174.10174.400.30      48.450.1649    422   
and       178.00182.704.70      7.36 0.2032    64    
and       281.80298.4016.60     5.03 0.0212    96    
A21-186   132.70133.901.20      33.620.50938   35    
A21-188   118.20119.501.30      4.51 0.0717    15    
A21-189   NSR                                        

Fiore Gold produces 10,915 oz of Au in fiscal Q2

Fiore Gold Ltd. has released preliminary production results for the company’s fiscal second quarter of 2021 (quarter ending March 31, 2021) from its Pan open-pit mine in White Pine county, Nevada. All dollar figures are in United States dollars unless otherwise noted.

Highlights:

  • Q2 gold production of 10,915 ounces, a 19% increase compared to Q1 2021 as heap leach pH levels improved during the quarter
  • Gold loaded to carbon, which is reflective of gold production, trended upward through the quarter with monthly figures of 3,294 ounces in January, 3,483 ounces in February and 4,155 ounces in March
  • Gold sales of 10,884 ounces at an average realized price of $1,770 per ounce
  • Mined ore production in Q2 of 12,351 tons per day with the stripping ratio of 1.6:1.0 and grade of 0.013 ounces/ton (“opt”) or 0.45 grams per tonne (“g/t”)
  • The Pan heap leach pad expansion project is progressing well with first ore expected to be placed on the new portion of the pad in fiscal Q3
  • Following the completion of the Gold Rock Preliminary Economic Assessment, we are conducting a program of resource expansion, metallurgical, geotechnical and condemnation drilling in support of a Gold Rock Feasibility Study. Drill results announced during the quarter were headlined by 45.7 metres of 2.01 g/t gold (150 ft at 0.059 opt) and 42.7 metres of 1.17 g/t gold (140 ft at 0.034 opt).
  • Closing cash balance of $17.5 million at March 31, 2021, a reduction in cash from December 31, 2020 as we continue to invest in the expansion of the Pan heap leach pad to accommodate added mine life, and in on-going drilling and Feasibility Study activities to advance Gold Rock.
  • 81,542 man-hours worked in Q2 with no lost time injuries and no reportable environmental incidents.

Tim Warman, Fiore’s CEO commented, “We advanced on a range of fronts in Q2 and were particularly pleased to see normal gold production levels resuming as Q2 progressed. Our team responded well to the leach pad issues we experienced in Q1 with the application of additional lime, bringing the leach solution pH back towards optimal levels for effective gold leaching. Through the quarter, we have also made good progress on Pan’s leach pad expansion and look forward to the positive impact on gold recovery when we place first ore on the new pad in fiscal Q3. And finally, we are very excited by the continued exploration success from drilling at Gold Rock. The progress continues to support our key goal of operating Pan and Gold Rock in unison, doubling our production organically in Nevada.”