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News Article | February 21, 2017
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CALGARY, ALBERTA--(Marketwired - Feb. 21, 2017) - BACANORA MINERALS LTD. ("Bacanora" or the "Company") (TSX VENTURE:BCN)(AIM:BCN), the Canadian and London listed resource developer focused on building an international lithium company, is pleased to announce that it has entered into a definitive agreement (dated February 17, 2017) to acquire a 50% interest in, and joint operational control of, the Zinnwald Lithium Project ("Zinnwald" or the "Project") in southern Saxony, Germany from SolarWorld AG ("SolarWorld"), the largest solar panel producer in Europe. This is in line with management's vision to become a global lithium operator focused on projects with significant value accretion potential and defined markets at both the product and geographic levels. Bacanora Chairman Mark Hohnen stated, "Zinnwald is a strategic asset located in close proximity to a thriving market for lithium and energy products. The Project fits with both our corporate strategy to develop and operate integrated lithium projects to produce high value lithium products, and also the commercial overlay which drives our acquisition strategy." "Sonora continues to sit at the heart of our portfolio and having produced battery grade lithium carbonate from our 100% owned pilot plant ahead of finalizing off-take agreements in Asia, we are committed to bringing this into production. However, Zinnwald provides us with exposure to an exciting new geographic market and adds hard rock mineralization to our portfolio. We believe that with an ownership structure that is accretive to Bacanora, Zinnwald will further facilitate our ambition of becoming an independent global lithium operating group." The Zinnwald Lithium Project is located in southeast Germany, some 35 km from Dresden and adjacent to the border of the Czech Republic and within 5km of the town of Altenberg and 50 km of the town of Freiberg. The Project is located in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium at different times over the past 300 years. The strategic location of the Project allows immediate access to the German automotive and downstream lithium chemical industries. The Zinnwald Project and leases are held by SolarWorld Solicium GmbH, a 100% owned subsidiary of SolarWorld AG, the largest solar panel producer in Europe. The Project has a historical resource estimate dated 1st October 2014 which was reported in accordance with the PERC Code1, comprised of Measured, Indicated and Inferred Resources.2 A Qualified Person (under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")) has not done sufficient work to confirm the historical estimate; hence Bacanora is not treating the historical estimate as current Mineral Resources or Mineral Reserves. However, Bacanora believes that the historical work at Zinnwald and the geological context of the deposit support the case for investing in further work to investigate the Mineral Resource and its potential for economic extraction. SRK Consulting (UK) Ltd has briefly reviewed the historical work at Zinnwald and adjacent properties and is working with the Company to test the historical estimate and develop a future resource. It is expected that additional infill drilling and an updated geological and grade model will allow current Mineral Resources to be reported, following which a new technical report is expected to be prepared in accordance with NI 43-101 and AIM Note for Mining and Oil & Gas Companies standards. In 2014, SolarWorld AG also completed a technical report on the Project, prepared in accordance with the PERC Code.3 Bacanora has reviewed the foregoing report (a copy of which has been published by SolarWorld AG on its website) and relied upon it in ascribing its internal valuations for the Project and the negotiation of the transaction terms. Bacanora's investment into the Zinnwald Project gives the potential to provide entry into the fast-growing European lithium market whereas the Sonora project continues to focus on off-take markets in Asia. In addition, the location of Zinnwald, adjacent to existing downstream German lithium chemical infrastructure and automotive manufacturing capacity, has the potential to allow the Zinnwald Project to focus on the production of higher value, downstream lithium products, which typically command premium pricing as compared to lithium carbonate products. Martin Pittuck of SRK Consulting (UK) Limited is the Qualified Person pursuant to NI 43-101 and the AIM Note for Mining and Oil & Gas Companies who has reviewed and approved the technical contents of this announcement. Bacanora is a Canadian and London listed minerals explorer (TSX VENTURE:BCN)(AIM:BCN). The Company explores and develops industrial mineral projects, with a primary focus on the Sonora Lithium Project. The Company's operations are based in Hermosillo in northern Mexico and it currently has two significant projects under development in the state of Sonora. The Sonora Lithium Project, which consists of ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State. The Company, through drilling and exploration work to date, has established an Indicated Mineral Resource (in accordance with NI 43-101) of 4.5 million tonnes (LCE) and 2.7 million tonnes Inferred.4 A PFS completed in Q1 20165 demonstrated the economics associated with becoming a 35,000 tpa lithium carbonate and 50,000 tpa SOP producer in Mexico. Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to completion of a Feasibility Study in respect of the Zinnwald Project within 18 to 24 months; earning of a 50% interest in the Zinnwald Project by Bacanora; conducting of infill drilling and updating of geological and grade model; preparation of a new technical report; potential future exercise of option to acquire the remaining 50% balance of the Zinnwald Project and the finalization of off-take agreements in Asia. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: commodity price volatility; general economic conditions in Canada, the United States, Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information. 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. 1 PERC Code means the Pan European Code for Reporting of Exploration Results, Mineral Resources and Reserves prepared by the Pan-European Reserves and Resources Reporting Committee, as amended. 2 The foregoing estimates were set forth in a report dated October 1, 2014, prepared by G.E.O.S. Ingenieurgesellschaft mbH and Technical University Bergakademie Freiberg on behalf of SolarWorld Solicium GmbH and entitled, "Zinnwald Lithium Project, Report According to PERC Standard". 3 See report dated October 1, 2014, prepared by G.E.O.S. Ingenieurgesellschaft mbH and Technical University Bergakademie Freiberg on behalf of SolarWorld Solicium GmbH and entitled, "Zinnwald Lithium Project, Report According to PERC Standard". 4 See Amended Mineral Resource Estimate for the Sonora Lithium Project, Mexico, April 2016. The lead author of the amended report is Mr. Martin Pittuck (MSc., C.Eng., FGS, MIMMM) of SRK Consulting (UK) Limited ('SRK'). A copy of this report is available under Bacanora's corporate profile at www.sedar.com. 5 See Technical Report on the Pre-Feasibility Study for the Sonora Lithium Project, Mexico, 15 April 2016. The authors of the PFS are Ausenco Limited, SRK and Independent Mining Consultants Inc. A copy of this report is available under Bacanora's corporate profile at www.sedar.com.


DENVER, COLORADO and VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 13, 2017) - Sandspring Resources Ltd. (TSX VENTURE:SSP) (OTCQX:SSPXF) ("Sandspring" or the "Company") is pleased to announce completion of the 2016 exploration program ("2016 Program") at its measured and indicated 6.9 million ounce resource Toroparu Gold Deposit ("Toroparu")(1) in Guyana, South America. Sona Hill: The 2016 Program for drilling at the Sona Hill Satellite Deposit ("Sona Hill") consisted of 8,084 metres ("m") of infill and step out drilling. The results of the first 20 infill holes (2,776m) were reported in a November 3, 2016 Press Release. Highlights from results of the remaining 4,568m infill and 740m step-out drilling program at Sona Hill include 7.89 g/t Au over 13.5m in Sona Hill Drill Hole ("SOD")081 (infill), 39.56 g/t Au over 10.5m in SOD090 (infill), 3.58 g/t Au over 14.6m in SOD097 (infill), 1.94 g/t Au over 28.5m in SOD100 (infill), 2.49 g/t Au over 15.7m in SOD-107 (step-out), and 4.91 g/t Au over 3.0m in SOD109 (step-out). Wynamu Hill: The 2016 Program for Wynamu Hill consisted of 1,127m of drilling. Highlights from the discovery of gold mineralization in saprolite and fresh rock include 1.18 g/t Au over 19.5m in Wynamu Drill Hole ("WYD") 003 and 7.51 g/t Au over 21.5m in WYD013. To view the Drill Prospect Location Map, please visit the following link: http://media3.marketwire.com/docs/1085715a.pdf 2016 Program: The 2016 Program also included completion of geochemical and geophysical surveys west of Sona Hill, and infill geochemical sampling at the Otomung concession, which is located 25 km to the northwest of Toroparu. Rich Munson, CEO states: "We are very pleased to have completed the 2016 Program on schedule and within budget and to be able to report both continuing positive results at Sona Hill and the presence of an additional potential satellite deposit at Wynamu Hill. We are further encouraged that these near-surface systems contain areas of higher grade mineralization and remain open at depth and on strike, providing the potential for gold-only satellite deposits in proximity to existing reserves that could have a meaningful impact on the development of Toroparu. Exploration success to the southeast of Toroparu at Sona Hill, to the northwest at Wynamu Hill, and encouraging results from geochemical surveys at Otomung further supports our geologic model for the area, and we expect the detailed evaluation of the results will support further exploration efforts in these areas as well as the other high priority gold features within the 20 km by 7 km regional hydrothermal alteration halo surrounding Toroparu." The Company has received all assay results from the 68 core holes (8,084m) drilled within the Sona Hill Prospect during the 2016 Program, which included 64 infill and 4 step out boreholes. Results from the first 20 infill boreholes (SOD042-SOD061, 2,776m) were announced in the November 3, 2016 press release. Highlights of the remaining infill boreholes (SOD062 through SOD105) and the step-out boreholes (SOD106 through SOD109) are presented in the list below. A total of 12,585m of diamond drill cores has been recovered from the 109 boreholes drilled on the Sona Hill Gold Satellite Deposit to date. Hard rock mineralization was first discovered at Sona Hill in 2012 during follow-up exploration of ten gold geochemical anomalies clustered around Toroparu. Drill programs at Sona Hill have focused on the opportunity to add higher grade resources in proximity to the existing Toroparu deposit reserves (see Sandspring press releases dated February 3, 2016, August 17, 2016, and November 3, 2016) by exploring the mineralization located within the hanging wall of a north-south oriented west dipping low angle shear structure. The Sona Hill mineralized system remains open at depth and along strike. A complete list of gold drill intercepts from boreholes SOD062 to SOD109 is provided as Exhibit 1 to this Press release. Prospect Location Maps are provided as Exhibits 2 and 3, and the Sona Hill Drill Hole Location Map as Exhibit 4. Highlights from the 2016 Wynamu Hill Drill Program are based on assay results from a small exploration core drilling program of 1,127m conducted at the end of the 2016 drilling campaign. Fourteen boreholes were drilled to an average depth of 80m each. The gold anomalous feature at Wynamu Hill was first identified during regional geochemical surveys conducted in 2012. A 2013 geochemistry campaign confirmed the gold anomaly, which forms a NNE oriented, 1 km long - 500m wide feature of continuous 100+ ppb values, including a dozen high values of >500 ppb. Initial air-core test holes conducted in 2014 confirmed the presence of gold in saprolite and upper layers of bedrock. A complete list of gold drill intercepts for boreholes WYD-001 through WYD-014 can be found in Exhibit 1 to this press release. Prospect Location Maps are provided in Exhibits 2 and 3, and the Wynamu Hill Drill Location Plan Map in Exhibit 5. The Wynamu Hill mineralized system remains open at depth and along strike. At Sona Hill gold mineralization is characterized by abundant pyrite occurrence and the larger hydrothermal alteration halos contain abundant finely disseminated magnetite. As part of the Sona Hill 2016 Program, an 18 line-km IP (Induced Polarization, pole-dipole) and magnetics geophysical survey was conducted over the saprolite geochemical survey grid that was established in 2012 west of Sona Hill. This ground geophysics program focused on possible extensions to the west of the mineralization at Sona Hill at depth in the low angle shear zone associated with intense hydrothermal alteration. Concurrently, a saprolite geochemical survey was filled in to a tighter 100m by 50m grid over the same area to add data to the exploration efforts. All the data is currently being processed for interpretation. The Sona Hill IP Geophysical Program and Infill Saprolite Geochemistry Survey location map is provided in Exhibit 6. The Toroparu deposit and surrounding gold anomalies lie at the southern edge of a large bending zone in the Puruni Shear Corridor, a regional feature that can be traced more than 100km into the prolific Venezuelan Gold District. Sandspring's geological model suggests that the northern part of this regional flexure may contain a similar structural pattern as Toroparu and a favourable geological context for gold mineralization within the Otomung Concession area. (see Exhibit 2) An elongated low magnetic feature was identified by a previous airborne geophysical survey conducted over the Otomung Concession area. Geochemical surveys completed in 2015 on a 1000m x 100m grid identified anomalous gold features in the low magnetic feature. The 2016 geochemical survey at Otomung included an infill survey in which 660 samples were collected on a 250m x 100m grid over the anomalous gold features identified in the 2015 geochemical survey. In addition, 305 samples were collected from a 30 km² area extending the 2015 1000m x 100m regional grid to the northwest boundary of the concession. Location Maps are provided in Exhibits 2 and 7. The drill results from Sona Hill have been delivered to our consulting engineers, SRK - Denver, and we expect to publish an initial resource for Sona Hill during the first calendar quarter of 2017. Sandspring is evaluating further exploration work at Wynamu Hill, Otomung and other exploration targets within the regional hydrothermal alteration halo surrounding Toroparu. Sandspring is pleased to announce the appointment of Jessica Van Den Akker as Chief Financial Officer of the Company. Ms. Van Den Akker is a Chartered Professional Accountant (CA) with over 11 years' experience in the resource sector. She gained extensive experience through a Canadian audit firm providing reporting and accounting assurance services to publicly traded companies, primarily in natural resources. Ms. Van Den Akker is a graduate of Simon Fraser University where she received a Bachelor of Business Administration. The Board has accepted the resignation of Harpreet Dhaliwal and would like to thank her for her contributions to the Company as CFO and wish her well in her future endeavours. Exhibit 1: Complete List of gold drill intercepts for Sona and Wynamu Hill Analytical testing and reporting of quantitative assays for the results reported in this press release was performed independently by Bureau Veritas Mineral Laboratories Vancouver, Canada. Bureau Veritas Commodities Canada Ltd. is an ISO9001: 2008 accredited laboratory. A system of blanks, standards and duplicates were added to the Toroparu sample stream by the Company to verify accuracy and precision of assay results, supplementing a variety of internal quality assurance/quality control ("QA/QC") tests performed by Bureau Veritas Mineral Laboratories. The technical information in this document has been reviewed and approved by Mr. Lucas W. Claessens, P.Geo. and Pascal van Osta, P.Geo., both Senior Exploration Consultants for Sandspring Resources Ltd., who have experience with the style of mineralization under consideration and are Qualified Persons under National Instrument 43-101. On behalf of the Board of Directors of Sandspring Resources Sandspring Resources Ltd. is a Canadian junior mining company currently moving toward a definitive feasibility study for the multi-million ounce Toroparu Project in the Guyana, South America. A prefeasibility study completed in May 2013 (NI 43-101 Technical Report, Prefeasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana, dated May 24, 2013 completed by SRK Consulting (U.S.), Inc., available on SEDAR at www.sedar.com) outlined the design of an open-pit mine producing more than 200,000 ounces of gold annually over an initial 16-year mine life. Sandspring and Silver Wheaton have entered into a gold and silver purchase agreement for the Toroparu Project. Additional information is available at www.sandspringresources.com or by email at info@sandspringresources.com. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The drill program and sampling protocol is managed by Sandspring under the supervision of Lucas W. Claessens, P.Geo. and Pascal Van Osta, P.Geo. The diamond drill holes are drilled at HQ and NQ sizes and core recovery to date has averaged 94%. Half core is cut by rock saw and is generally sampled using 1.5 m meter intervals. Analytical testing and reporting of quantitative assays for the results reported in this press release was performed independently by Bureau Veritas Mineral Laboratories in Vancouver, Canada. Bureau Veritas Commodities Canada Ltd. is an ISO9001: 2008 accredited laboratory. Gold analyses reported in this release was performed by standard fire assay (FA450) using a 50-gram charge with atomic absorption finish and a gravimetric finish for assays greater than 10 grams per tonne. Samples from the geochemical survey were submitted for analysis of ICP 37 elements (including gold) AQ252 30 gram (Aqua Regia digestion - Ultratrace ICP-MS analyses). A system of blanks, standards and duplicates were added by the Company to the sample streams to verify accuracy and precision of assay results, supplementing a variety of internal QA/QC tests performed by Bureau Veritas Mineral Laboratories. The half core samples were securely transported by Sandspring personnel from the project site to the Bureau Veritas sample preparation facility in Georgetown, Guyana. This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "potential", "suggesting", "indicating", "will", "plans" and similar expressions are intended to identify forward-looking information and/or statements. Forward-looking statements and/or information are based on a number of material factors, expectations and/or assumptions that Sandspring has used to develop such statements and/or information, but which may prove to be incorrect. Although Sandspring believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Sandspring can give no assurance that such expectations will prove to be correct. Such information and/or statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results and/or events to differ materially from those anticipated in such forward-looking information and/or statements including, without limitation: the speculative nature of mineral exploration and development; risks associated with the uncertainty of exploration results and estimates; results from drilling and exploration activities and Sandspring's ability to identify additional gold mineralization; Sandspring's ability to successfully advance the Toroparu Gold Project toward feasibility; Sandspring's future plans; the availability of financing and/or cash flow to fund current and future plans and expenditures; the impact of increasing competition; fluctuating commodity prices; the general stability of applicable economic and political environments; the general continuance of current industry conditions; uncertainty regarding the market price for gold, silver and copper; uncertainty of conducting operations under a foreign regime; uncertainty of obtaining all applicable regulatory approvals and related timing matters; Sandspring's dependence on management personnel; and/or certain other risks detailed from time-to-time in Sandspring's public disclosure documents. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.


TORONTO, Feb. 23, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) today announced its year-end 2016 Mineral Resources and Reserves estimations. In the Proven and Probable Reserves category (Table 1), contained gold (“Au”) increased by approximately 10%, contained silver (“Ag”) decreased by 40%, and contained antimony (“Sb”) decreased by 7%.  In the Measured and Indicated Resource category (Table 2), contained gold increased by approximately 15%, contained silver decreased by 14%, and contained antimony decreased by 16%. All dollar amounts in this press release are in U.S. dollars unless otherwise noted. Table 1: Mineral Reserves as of December 31, 2016 and 2015 Table 2: Mineral Resources, Inclusive of Mineral Reserves, as of December 31, 2016 and 2015 Details of the Mineral Resources and Reserves estimates at each property are related below. They were prepared or verified by the following independent third parties: Roscoe Postle Associates Inc. (“RPA”) at Björkdal and Cerro Bayo, and SRK Consulting (Australasia) Pty Ltd. (“SRK”) at Costerfield. The estimate of Mineral Resources at the Challacollo project has not changed from 2014. The year-end 2016 estimates of Mineral Resources and Reserves for the Cerro Bayo and Costerfield mines will be fully documented in independent Technical Reports to be filed on www.sedar.com and the Mandalay website www.mandalayresources.com within 45 days of this press release.  The year-end 2016 estimates of Mineral Resources and Reserves for the Björkdal mine were obtained by depleting the recently published third party estimate with an effective date of September 30, 2016 (see press release of December 15, 2016) for production during the fourth quarter of 2016. The December announcement was fully supported by the independent Technical Report filed on January 27, 2017 on www.sedar.com and the Mandalay website www.mandalayresources.com. Mark Sander, President and CEO of Mandalay, commented, “I am pleased to report that Mandalay’s aggregate consolidated Resources and Reserves position, expressed as ounces of gold equivalent calculated at year-end 2016 resource and reserve reporting metal prices (see footnotes to tables in this release), remained nearly unchanged from the year before, calculated at the same metal prices. We currently have 1,024,000 ounces of gold equivalent in Proven and Probable Reserves and 2,229,000 ounces of gold equivalent in Measured and Indicated Resources inclusive of Reserves. This excellent overall result included significant additions at Björkdal due to exploration success, offset by reductions at Cerro Bayo due to reductions in estimated reserves along Delia SE vein in light of recent development sampling.  The financial impact of the reserve reduction at Cerro Bayo has already been taken into account in the $10 million impairment charge announced with our 2016 full-year results on February 16, 2016. Mandalay’s total 2016 investment in exploration of $13.7 million generated a total of 153,000 ounces of gold equivalent in Reserve additions including the effect of the Reserve reduction at Delia SE.  Our 2016 discovery cost was $90 per ounce of gold equivalent. “At Björkdal, we substantially increased Mineral Resources and Reserves in both the open pit and underground mines. The increase is due to continuing evolution of our understanding of the fundamental geology of the deposit, made possible by the careful factual observations and insightful interpretations of our team and supported by significant investment in drilling. As well, the methodology for conversion of Mineral Resources to Mineral Reserves has improved to more closely match the actual mining practices we are implementing. We believe that Mineral Resources and Reserves at Björkdal will continue to grow significantly, building on the recent positive exploration results in the second half of 2016 that were announced on January 27, 2017. “At Costerfield, we extended and infilled Mineral Resources along the N, Cuffley and Brunswick lodes, although drill results did not support enough increase in Mineral Resources and Reserves to completely replace depletion. We obtained excellent drill intercepts in and around the Brunswick deposit but not quite enough Measured and Indicated Resource to convert the Brunswick lode into financially viable reserves. We are focused in the near-term on infilling and extending our drilling along the lode to upgrade more resources to Indicated, yielding more benefit for the required capital investment and resulting conversion to Mineral Reserves. “At Cerro Bayo, we added Resources and Reserves along the Branca vein, but incurred more-than-offsetting decreases resulting from the impact of detailed development sampling along the Delia SE vein. While the limits of ore grades at shallow development levels of the vein approximated the drilling-based block model, the deepest three levels have exposed more internal waste in the mineralized shoot than was previously expected. Mineral Resources and Reserves at Cerro Bayo were also negatively impacted by higher cut-off grades linked to the shorter mine life along Delia SE. We have accelerated the rate of development of the Coyita vein to reach high-grade ore and will be able to begin drilling in late 2017 under the middle of Laguna Verde as that area becomes accessible.  We look forward to the possibility of gaining back some of our 2016 reserve losses in the central Coyita vein, in the northern part of the high-grade Branca vein and in the high-grade Yasna Inflection zone which have, up until now, been unreachable by drilling from the shore.” Dr. Sander concluded, “At Challacollo, we carried out exploration drilling at several entirely new targets over the course of 2016. That drilling was not successful at identifying potentially significant silver or gold mineralization and no new technical report was necessary.  Developments in early 2017 include receipt of our water exploration permit, a key milestone towards demonstrating a feasible project when the presence of adequate water to support the operation is confirmed by drilling later this year.” During 2016, Björkdal drilled 35,981 metres of core and reverse circulation exploration holes for a total expenditure of $3.98 million. In addition, underground operations completed 5,385 metres of on-vein development, which was mapped and sampled in detail according to our grade control protocols. Mandalay released the Björkdal Mineral Resource and Reserve update on December 15, 2016, with an effective date of September 30, 2016. The Technical Report detailing this update was filed on www.sedar.com on January 27, 2017.  The Mineral Resources and Reserves estimates effective September 30, 2016 have been depleted though to December 31, 2016 to yield the Björkdal year-end Resource and Reserve estimation. Table 3:  Mineral Resources at Björkdal, Inclusive of Mineral Reserves, as of December 31, 2016 Table 4:   Mineral Reserves at Björkdal, as of December 31, 2016 Notes: 1.     Mineral Reserves are estimated as of September 30th, 2016, and depleted for production through December 31st, 2016. 2.     CIM definitions were followed for Mineral Reserves. 3.     Open Pit Mineral Reserves are based on mine designs carried out on an updated resource model, applying a block dilution of 75% at 0.2 g/t Au.  A cut-off grade of 0.4 g/t Au was applied. 4.     Underground Mineral Reserves are based on mine designs carried out on an updated resource model. Minimum mining widths of 3.5 m for stopes (after dilution) and 3.8 m for development were used.  Dilution was applied by adding 0.5 m on each side of stopes and adding 10% to development.  Extraction was assessed at 95% for stopes and 100% for development.  A cut-off grade of 1.00 g/t Au was applied. An incremental cut-off grade of 0.4 g/t Au was used for development material. 5.     Stockpile Mineral Resources are estimated at a cut-off grade of 0.40 g/t Au and are based upon surveyed volumes supplemented by production data. 6.     Mineral Reserves are estimated using an average long-term gold price of US$1,200/oz, and an exchange rate of 8.4 SEK/US$. 7.     Tonnes and contained gold are rounded to the nearest thousand. 8.     Totals may appear different from the sum of their components due to rounding. 9.     The Independent Qualified Persons for the Björkdal Mineral Reserve estimate are Ian Weir, P.Eng., RPA (for open pit reserves) and David Robson, P.Eng., RPA (for underground reserves), who are Qualified Persons as defined by NI 43-101. The net increase of 156,000 ounces of gold in Probable Reserves for 2016 relative to 2015 included mining depletion of 55,900 ounces of gold during 2016. Therefore, a total of 211,900 ounces of gold were added to reserves for the 2016 exploration spend of $3.98 million reported above. The exploration cost of adding those reserves was $18.78 per ounce of gold. Costerfield 2016 Updated Mineral Resources and Reserves                             During 2016, Mandalay drilled 32,662 metres of diamond core for $4.67 million. In addition, the Company completed 4,533 metres of on-vein operating development with mine sampling, mostly in N and Cuffley lodes. Drill core was logged and sampled by Costerfield geologists, who also performed mine sampling.  All samples were sent to Onsite Labs in Bendigo, Victoria, Australia, for sample preparation and assay. Site geological and metallurgical personnel have implemented a QA/QC process that includes the regular submission of standard reference materials, duplicates and blanks with drill and face samples submitted for assay. Standard reference materials have been certified by Geostats Pty Ltd. Core and mine sampling data were entered into Datamine software and composited to true vein width. Gold accumulation, antimony accumulation and true vein width were estimated into a two dimensional block model for each lode using ordinary kriging and inverse distance (where the abundance of data was insufficient for ordinary kriging). Gold and antimony vein grades were back calculated using estimated accumulated assay data over true vein width. Where vein true widths are less than 1.2 metres, vein grades were diluted to a minimum mining width of 1.2 metres using dilution grades of zero gold and zero antimony. Where true vein widths were greater than 1.2 metres, vein grades were not diluted. Mineral Resources were estimated at a cut-off grade of 3.5 grams per tonne gold equivalent using metal prices of $1,400 per ounce gold and $10,000 per tonne antimony.  Gold equivalent is calculated using the formula Au Eq. = Au + (Sb x 1.76) where Sb is in % and Au is in g/t based on 1.2 metre diluted grades. Table 5: Mineral Resources at Costerfield, Inclusive of Mineral Reserves, as of December 31, 2016 From the Mineral Resource, a mine plan was designed based only on Measured and Indicated Resource blocks using predominantly the cemented rock fill, blast hole stoping method. A cut-off grade of 4.0 grams per tonne gold equivalent and minimum stoping width of 1.2 metres were used, with planned and unplanned dilution at zero grade. Financial viability of Proven and Probable Mineral Reserves was demonstrated at metal prices of $1,200 per ounce gold and $8,000 per tonne antimony. Table 6: Mineral Reserves at Costerfield, as of December 31, 2016 Notes:     1.   Mineral Reserves estimated as of December 31, 2016, and depleted for production through to December 31, 2016.     2.   Tonnes and contained Au (oz) are rounded to the nearest thousand; contained Sb (t) rounded to nearest hundred.      3.   Totals are subject to rounding error.     4.   Lodes have been diluted to a minimum mining width of 1.2 m for stoping and 1.8 m for ore development.     5.   A cut-off grade of 4.0 g/t Au Eq. is applied.     6.   Commodity prices applied are; Au price of $1,200/oz, Sb price of $8,000/t and exchange rate USD:AUD of 0.75.     7.   The Au Eq. value is calculated using the formula: Au Eq. = Au g/t + 1.64 * Sb %.     8.   The Mineral Reserve is a subset, a Measured and Indicated only schedule, of a Life of Mine Plan that includes mining of Measured, Indicated and Inferred Resources.     9.   The Mineral Reserve estimate was prepared by Chloe Cavil who is a full-time employee of Mandalay Resources and was independently verified by Peter Fairfield, FAusIMM, CP (Mining) who is a full-time employee of SRK Consulting who is a Qualified Person as defined by NI 43-101. The net decrease of 17,000 ounces gold in Proven and Probable Reserves for 2016 relative to 2015 consists of a total of 46,000 ounces depleted from the 2015 Reserves, which has been positively offset by the addition of 29,000 ounces added by resource conversion and mining re-evaluation.  The 1,400 tonne net decrease in antimony Reserves consists of 5,500 tonnes depleted from the 2015 Reserves, offset by the 4,100 tonnes added by resource conversion and mining re-evaluation.  The 29,000 ounce gold addition to reserves and the 4,100 tonne antimony addition amounts to 56,300 ounces of gold equivalent calculated at the reserve prices of $1,200 per ounce gold and 8,000 per tonne antimony. This addition was accomplished at an average discovery cost of $82.90 per ounce gold equivalent. During 2016, Mandalay drilled 35,400 metres of diamond core for $3.1 million. This drilling was conducted to support the conversion of Inferred Resources within the known vein deposits to Indicated Resources and to drill test near-mine and new targets, in the Laguna Verde, Cerro Bayo and Brillantes areas.  In addition, the Company completed 5,400 metres of underground on-vein development with face sampling, mostly in the Delia NW, Delia SE, Trinidad, and Coyita. Drill core was logged and sampled by Cerro Bayo geologists, who also performed face sampling.  All samples were delivered to the Cerro Bayo site laboratory for sample preparation and analysis.  Site geological and metallurgical personnel continue to maintain a quality assurance and quality control (QA/QC) process that includes the regular submission of standard reference materials, duplicates, and blanks with drill and face samples submitted for assay. Standard reference materials have been certified by CDN Resources Laboratories Ltd. Core and mine sample data were entered into Vulcan software and vein boundaries were interpreted manually in a wireframe model. Wireframes of the Delia SE vein were substantially more restricted in the 2016 update than previously due to assays from development sampling on the vein.  For each vein, gold values for the diamond drill holes and channel samples were capped at a range of 10 grams per tonne to 50 grams per tonne; silver values were capped at a range of 700 grams per tonne to 5,000 grams per tonne before compositing across the vein width.  A bulk density of 2.63 tonnes per cubic metre was used.  Grades for gold and silver for each resource block were estimated by the inverse distance cubed method.  Parent block (width x 1 metre x 1 metre) and sub-block (0.1 metre x 1 metre x 1 metre) sizes were used with a resultant block size of the vein width x 1 metre x 1 metre. Mineral Resources were reported at a cut-off grade of 162 grams per tonne silver equivalent (using metal prices of $1,400 per ounce gold and $24 per ounce silver) over a minimum vein width of 1.2 metres.  Silver equivalent is calculated using the formula Ag Eq. = Ag + (Au x 58.25) where Ag and Au are in grams per tonne. Table 7: Mineral Resources at Cerro Bayo, inclusive of Mineral Reserves, as of December 31, 2016 Notes: 1.   Mineral Resources estimated as of December 31, 2016 and depleted for production through December 31, 2016. 2.   Mineral Resources stated according to CIM definitions and include Mineral Reserves. 3.   Tonnes, contained Ag, and contained Au are rounded to the nearest thousand. 4.   Totals may be different from the sum of their components due to rounding. 5.   A 162 g/t Ag Eq. cut-off grade over a minimum mining width of 1.2 m is applied where Ag Eq. is calculated at an Ag price of US$24/oz and Au price of US$1,400/oz.  The Ag Eq. value is calculated using the formula: Ag Eq. = Ag g/t + (58.25 x Au g/t). 6.   The Independent Qualified Person for the Cerro Bayo Mineral Resource estimate is Rosmery Julia Cardenas Barzola, P.Eng., RPA, who is a Qualified Person as defined by National Instrument NI 43-101. 7.   A bulk density of 2.63 t/m³ was used. From the Mineral Resource, a mine plan was designed based only on Measured and Indicated Resource blocks using the blast hole stoping method currently employed at the mine. A cut-off grade of 219 grams per tonne silver equivalent and a minimum stoping width of 2.4 metres were used, with planned and unplanned dilution at zero grade. The cut-off grade has increased from 164 grams per tonne silver equivalent used previously due to increased development requirements to sustain mine production from more spatially disperse Mineral Resources. Financial viability of Proven and Probable Mineral Reserves was demonstrated at metal prices of $18 per ounce silver and $1,200 per ounce gold. Table 8:  Mineral Reserves at Cerro Bayo as of December 31, 2016 The resources and reserves have decreased at Cerro Bayo due to changes to more restrictive wireframes and higher cut-off grades. The new resource wireframes are smaller than previously interpreted for some veins due to new drilling and face sampling data that encountered more internal waste and also reduced the overall extent of mineralization. There was a net decrease of 6.0 million ounces of silver and 70,000 ounces of gold in Proven and Probable Reserves for 2016 relative to 2015.  This decrease includes mine production in 2016 of 2.1 million ounces of silver and 16,000 ounces of gold and the combined impacts of the increased cut-off grade and adjustments to the resource estimation and classification criteria made on the basis of additional geological data obtained during 2016. These decreases were partially offset by the addition of 141,000 ounces of silver and 1,000 ounces of gold added from infill drilling in the Branca vein. No new Resource and Reserve estimate was conducted at Challacollo during 2016.  For completeness, the 2014 Mineral Resource estimate is summarized in Table 9 below. Table 9: Mineral Resources at Challacollo Silver Project as of December 31, 2016 All Qualified Persons listed below have read and approved the contents of this news release as it pertains to the Mineral Resource and Mineral Reserve estimates disclosed in this news release. For Björkdal: The Mineral Resource Estimate was carried out under the supervision of Reno Pressacco, P.Geo., an employee of RPA and independent of Mandalay Resources Corporation. He is a Qualified Person for the purpose of National Instrument 43-101. The Mineral Reserve Estimate was carried out under the supervision of Ian Weir, P. Eng., (for open pit reserves) and David Robson, P.Eng., (for underground reserves). Both are employees of RPA and are independent of Mandalay Resources Corporation.  They are Qualified Persons for the purposes of NI 43-101. For Cerro Bayo: The Mineral Resource Estimate was carried out under the supervision of Rosmery Julia Cardenas Barzola, P.Eng., an employee of RPA and independent of Mandalay Resources Corporation. She is a Qualified Person for the purpose of National Instrument 43-101. The Mineral Reserve Estimate was carried out under the supervision of Normand Lecuyer, P. Eng., an employee of RPA and independent of Mandalay Resources Corporation.  He is a Qualified Person for the purposes of NI 43-101. For Costerfield: The Mineral Resource Estimate was carried out under the supervision of Danny Kentwell, FAusIMM, an employee of SRK Consulting and independent of Mandalay Resources Corporation. He is a Qualified Person for the purpose of National Instrument 43-101. The Mineral Reserve Estimate was carried out under the supervision of Peter Fairfield, FAusIMM, an employee of SRK Consulting and independent of Mandalay Resources Corporation. He is a Qualified Person for the purposes of NI 43-101. For Challacollo: Michael Collins, P.Geo., a full time employee of Mining Plus and a Qualified Person under NI 43-101 supervised and takes responsibility for the Mineral Resource Estimate and has approved the technical and scientific information in the Challacollo section of this press release. This news release contains "forward-looking statements" within the meaning of applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 30, 2016, a copy of which is available under Mandalay’s profile at www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.


News Article | February 23, 2017
Site: www.marketwired.com

DENVER, COLORADO and VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 23, 2017) - Sandspring Resources Ltd. (TSX VENTURE:SSP)(OTC PINK:SSPXF) ("Sandspring" or the "Company") is pleased to report the maiden mineral resource estimate ("Resource Estimate") for its discovery at Sona Hill, deposit located 5 km southeast of the Toroparu Gold Project ("Toroparu")(1) in Guyana, South America. The estimate was completed at a variety of cut off grades by SRK Consulting (U.S.) Inc. ("SRK") and the details are presented in the following table: http://media3.marketwire.com/docs/SandspringLocationMap.pdf The resource estimate is based on analytical and geological data from 12,585 metres ("m") of diamond drill core recovered from the 109 deposit specific boreholes drilled to date and reported in news releases on February 3, 2016, November 3, 2016, and February 13, 2017. Rich Munson, CEO states: "We are very pleased to announce the maiden resource estimate for the Sona Hill Satellite Deposit. Sona Hill adds significant shallow gold-only resources in proximity to the existing reserves reported in the pre-feasibility study for Toroparu. The results from Sona Hill and the new discovery at Wynamu Hill that were reported on February 13, 2017 clearly warrant the continuation of systematic exploration of our property position surrounding Toroparu, including the eight-additional high-priority gold features within the 20 km by 7 km regional hydrothermal alteration halo surrounding Toroparu. Our geologic team, that continues to be led by Werner Claessens and Pascal van Osta, consultants to the Company, is working with SRK on additional drill programs to increase the confidence classification of Sona Hill resources, as well as looking at programs to further delineate mineralization at Wynamu Hill and explore for additional satellites within our concession boundaries. Our technical team, which continues to be led by Greg Barnes, our Executive Vice President, with assistance from Yani Roditis as a consultant to the Company, will simultaneously be advancing the final feasibility study for Toroparu over the course of 2017. Because Sona Hill adds significant shallow gold-only resources in both Saprolite and Fresh Rock (the "New Resource") in proximity to the existing reserves at Toroparu, on-going feasibility work will examine the potential impacts on the economic parameters of the project by including this higher grade New Resource in the overall mine plan and the initial Saprolite mining phase, as detailed in the 2013 Toroparu Pre-Feasibility Study." To view the maps please click the following link: http://media3.marketwire.com/docs/SandspringMaps.pdf The Sona Hill deposit, hosted by intrusives of intermediate composition, is a typical lode-gold vein system, which developed in the hanging wall above a low angle, west dipping shear zone. This fault feature forms the highly deformed and intensely altered contact zone between the intrusives and an underlying acid volcanic sequence. Gold- Pyrite mineralization occurs mainly within and at the border of tourmaline-feldspar bearing quartz veins, which are surrounded by intense bleaching and alteration halos. Areas of higher grade mineralization occur frequently throughout the resource area, with more than 80% of gold mineralization contained in rock from 0 to 160m below surface. Mineralization at Sona Hill remains open at depth and along strike. The results of ground geophysical and infill geochemical surveys conducted in 2016, which focused on a 1000 x 1500 m area due west of Sona Hill, are being analyzed for evidence of possible extensions of mineralization in this direction (see February 13, 2017 Press Release). The Sona Hill drill geologic model was developed in Leapfrog 3D modeling software utilizing geologic information from the 109 drill holes. The 109 deposit specific boreholes were drilled over a 1,000m x 300m area on the west flank of Sona Hill from 2014-2016. The resource estimate is based on data from 12,585m of diamond drill core recovered from the 109 deposit specific boreholes drilled to date. The Sona Hill mineral resource estimate was independently estimated by SRK Consulting (U.S.) Inc. ("SRK") as a potentially open-pit satellite deposit to Toroparu. The geologic and assay data were used to model a mineralized shell in Leapfrog Geo® software. The mineralized shape is based on continuity established with 6m composites, and incorporated anisotropy from a generalized average trend of mineralized quartz veins as well as local down-hole point-data structural orientations of veins. The mineralized veins (down-hole point data) have an average strike of 228°azimuth dipping on average 41°(NW). The drill core assay length was 1.5m and the gold assay were composited to 2.5m intervals within the mineralized wireframes and capped at 18g/t Au. A block model was constructed in Datamine Studio3® mining software package ("Datamine"), using a 10m x 10m x 5m standard block size and sub-blocking with a variable "z" value at the fresh rock-saprolite surface. Variogram analysis on 2.5m composites was undertaken, with reasonable continuity results, but no preferred orientation of mineralization observed; given the distribution of drilling and the geometry of the mineralization this was not un-expected. Therefore, the point data of structural vein orientations were used with the dynamic anisotropy option in Datamine, and search orientations interpolated into each block. The average interpolated orientation is azimuth 248°with a dip of 41°NW. Gold grades were interpolated using ordinary kriging constrained within the mineralized shape. Average Bulk Density values based on measurements of Sona Hill core are 1.65 for oxidized saprolite and 2.84 for fresh rock. Validation of model accuracy was based on comparing results from kriging with inverse distance and nearest neighbor grade estimates, which shows very similar results, and visual review on sections. Confidence classification is based on a minimum of 5 composites, with a maximum of two composites from any one hole and search distances of 25m x 50m x 50m for Indicated. Inferred classification used a minimum of one composite with a search distance of 50m x 100m x 100m. The effective date of the resource estimate is February 21, 2017. All resources in the mineral resource statement are in-pit resources reported within a Whittle optimized pit shell above an economic cut-off grade of 0.31 g/t Au. The optimized pit shell was determined using Indicated and Inferred resources, a gold price of US$1,400/oz. Au, an average metallurgical recovery of 92% for gold, an average mining cost of US$1.80/t, processing + G&A costs of US$11.88/t, and pit slope angles of 45 degrees. These parameters are similar to those used in the 2013 SRK Pre- Feasibility Study for the Toroparu Deposit. Analytical testing and reporting of quantitative assays for holes SOD001-SOD109 was performed independently by Bureau Veritas Mineral Laboratories Vancouver, Canada. Bureau Veritas Commodities Canada Ltd. is an ISO9001: 2008 accredited laboratory. A system of blanks, standards and duplicates were added to the Toroparu sample stream by the Company to verify accuracy and precision of assay results, supplementing a variety of internal quality assurance/quality control ("QA/QC") tests performed by Bureau Veritas Mineral Laboratories. The statistical analysis, geologic modelling and resource estimation were prepared by Frank Daviess, RM SME and MAusIMM., and Allan Moran, AIPG CPG, SRK Associates, who are Qualified Persons under National Instrument 43-101. Other scientific and technical content related to drilling in this news release is approved by Mr. Lucas W. Claessens, P.Geo. and Pascal van Osta, P.Geo., both Senior Exploration Consultants for Sandspring Resources Ltd., who are Qualified Persons under National Instrument 43-101. On behalf of the Board of Directors of Sandspring Resources Ltd. Sandspring Resources Ltd. is a Canadian junior mining company currently moving toward a feasibility study for the multi-million ounce Toroparu Project in Guyana, South America. A prefeasibility study completed in May 2013 (NI 43-101 Technical Report, Prefeasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana, dated May 24, 2013 completed by SRK Consulting (U.S.), Inc., available on SEDAR at www.sedar.com) outlined the design of an open-pit mine producing more than 200,000 ounces of gold annually over an initial 16-year mine life. Sandspring and Silver Wheaton have entered into a gold and silver purchase agreement for the Toroparu Project. Additional information is available at www.sandspringresources.com or by email at info@sandspringresources.com. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The drill program and sampling protocol is managed by Sandspring under the supervision of Lucas W. Claessens, P.Geo., and Pascal Van Osta, P.Geo. The diamond drill holes are drilled at HQ and NQ sizes and core recovery to date has averaged 94%. Half core is cut by rock saw and is generally sampled using 1.5 m meter intervals. Analytical testing and reporting of quantitative assays for the results reported in this press release was performed independently by Bureau Veritas Mineral Laboratories in Vancouver, Canada. Bureau Veritas Commodities Canada Ltd. is an ISO9001: 2008 accredited laboratory. Gold analyses reported in this release were performed by standard fire assay (FA450) using a 50 gram charge with atomic absorption finish and a gravimetric finish for assays greater than 10 grams per tonne. Samples from the geochemical survey were submitted for analysis of ICP 37 elements (including gold) AQ252 30 gram (Aqua Regia digestion - Ultratrace ICP-MS analyses). A system of blanks, standards and duplicates were added by the Company to the sample streams to verify accuracy and precision of assay results, supplementing a variety of internal QA/QC tests performed by Bureau Veritas Mineral Laboratories. The half core samples were securely transported by Sandspring personnel from the project site to the Bureau Veritas sample preparation facility in Georgetown, Guyana. This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "potential", "suggesting", "indicating", "will", "plans" and similar expressions are intended to identify forward-looking information and/or statements. Forward-looking statements and/or information are based on a number of material factors, expectations and/or assumptions that Sandspring has used to develop such statements and/or information, but which may prove to be incorrect. Although Sandspring believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Sandspring can give no assurance that such expectations will prove to be correct. Such information and/or statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results and/or events to differ materially from those anticipated in such forward-looking information and/or statements including, without limitation: the speculative nature of mineral exploration and development; risks associated with the uncertainty of exploration results and estimates; results from drilling and exploration activities and Sandspring's ability to identify additional gold mineralization; Sandspring's ability to successfully advance the Toroparu Gold Project toward feasibility; Sandspring's future plans; the availability of financing and/or cash flow to fund current and future plans and expenditures; the impact of increasing competition; fluctuating commodity prices; the general stability of applicable economic and political environments; the general continuance of current industry conditions; uncertainty regarding the market price for gold, silver and copper; uncertainty of conducting operations under a foreign regime; uncertainty of obtaining all applicable regulatory approvals and related timing matters; Sandspring's dependence on management personnel; and/or certain other risks detailed from time-to-time in Sandspring's public disclosure documents. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.


News Article | February 13, 2017
Site: globenewswire.com

VANCOUVER, British Columbia, Feb. 13, 2017 (GLOBE NEWSWIRE) -- B2Gold Corp. (TSX:BTO) (NYSE MKT:BTG) (NSX:B2G) (“B2Gold” or the “Company”) is pleased to announce positive exploration results for its Kiaka and Fekola projects in West Africa (Burkina Faso and Mali, respectively). All dollar figures are in United States dollars unless otherwise indicated. Following recent successes by the regional exploration programs in Burkina Faso and Mali, B2Gold has budgeted $19.95 million in 2017 for ongoing exploration of the Company’s West African projects, an increase of $2.65 million over the 2016 budget. B2Gold has recently increased the footprint of known mineralization at the Toega prospect, as part of the Kiaka deposit regional exploration program in Burkina Faso. In 2016, a total of 19,433 metres of combined reverse circulation and diamond drilling was completed, to better define the limits of this discovery and to explore the immediate area for additional mineralization. Last year’s drilling expanded the known extents of mineralization at Toega to over 900 metres long, by up to 425 metres wide, with intersections of variable thickness occurring as deep as 250 metres below surface. Mineralization remains open down dip and down plunge at Toega. Drilling is ongoing. Due to the increased size of the Toega zone, the Company now expects to release the initial mineral resource for Toega in the third quarter of 2017. Gold mineralization in the Toega zone is hosted by an easterly-dipping metasedimentary sequence, overprinted by shallowly northeast plunging folds. Mineralized intervals in excess of 100 metres of core length (e.g. NKRD020, 125 m at 1.66 g/t gold) are localized in a plunging, high-grade “keel” to the mineralization, which may be related to structural thickening by folding. Mineralized zones are characterized by disseminated pyrite, pyrrhotite, rare chalcopyrite and locally, by fine visible gold, in association with quartz veining. Note: Bedrock-hosted intervals reported above are >0.3 g/t gold, with a maximum of 5 m internal waste. Intervals reported are core lengths. True width is estimated to be between 85% and 90% of core length. A follow-up program of 5000 metres of diamond drilling is currently underway at Toega, with additional assay results pending. More drill results will be released as they become available. Based on the positive results to date, B2Gold is undertaking initial mineral resource modeling. Once mineral resource estimates are available, in-house evaluations will commence to determine whether Toega constitutes a potential source of higher-grade feed for the Kiaka deposit or potentially a standalone project. Metallurgical, environmental and social baseline studies were initiated at Toega in 2016, and these programs are planned to continue throughout 2017. The 2017 development budget for Toega is $0.84 million. The Kiaka project is located in southcentral Burkina Faso, approximately 140 kilometres southeast of the capital Ouagadougou. Kiaka is one of the largest undeveloped gold resources in West Africa, and contains measured mineral resource estimates of 27.3 million tonnes at 1.09 g/t gold for 953,000 ounces; indicated mineral resource estimates of 96.8 million tonnes at 0.96 g/t gold for 2.99 million ounces; and inferred mineral resource estimates of 27.3 million tonnes at 0.93 g/t for 815,000 ounces1. Further engineering studies were completed in 2016 to assess the optimum throughput rate for the Kiaka project and upgrading projected capital and operating costs. The current plan is to update the mineral-resource block model later this year based on ongoing drilling and then use that model as the basis for additional project evaluation. This will include re-evaluating project economics and the potential impact of higher-grade ore being added from the Toega zone. The 2017 development budget for Kiaka is approximately $2.7 million. B2Gold’s technical team believes that the large Fekola project has the potential to host additional large Fekola-style gold deposits. The Company’s work to date has identified multiple targets. The Kiwi zone adjoins mineralization currently contained within the proposed pit limits of the Fekola deposit. Extending north from the pit for approximately 640 metres, Kiwi hosts near-surface gold mineralization, which has recently been infilled with an additional 18 reverse circulation drill holes, totalling approximately 2400 metres. Assay results are pending. This near-surface exploration, combined with the planned follow up of FKD_188 at depth (4.60 m at 11.80 g/t gold from 240.10 metres - refer to B2Gold news release dated June 29, 2016), is part of an initiative to advance near-term exploration targets that are proximal to existing and planned Fekola mine infrastructure, with the goal of increasing the Fekola mine life. Within the Fekola region, exploration has defined a significant zone of saprolite-hosted gold mineralization across two contiguous target areas known as Anaconda and Adder. At present, the footprint of the combined Anaconda-Adder saprolite zone extends over 4.5 kilometres of strike and up to 500 metres wide at Anaconda and up to 200 metres wide at Adder. Within these zones, saprolite occurs in flat-lying horizons varying from several metres to over 40 metres thick. Mineralized intervals within the saprolite are variable in thickness, but across both zones average approximately 13.5 metres in true width. In 2016, 72,671 metres of combined aircore, reverse circulation and diamond drilling were completed. At both Anaconda and Adder, drilling has been completed on 40 metre x 40 metre spaced centres and locally, infilled by reverse circulation and/or diamond holes at either 20 metre x 20 metre, or 5 metre x 5 metre centres to test the short range variability of mineralization. A program of select aircore hole twinning by PQ diameter diamond core was completed in late 2016/early 2017. The initial results of the twin diamond drilling program favourably confirm the results of previous aircore drilling. Note: Saprolite-hosted intervals reported above are >0.2 g/t gold, with a maximum of 3 m internal waste. Assays are uncapped. Intervals reported are core lengths and may locally include minor amounts of gold-bearing laterite from the regolith profile. The Anaconda zone has the potential to be a low-cost operation due to shared infrastructure and services from the nearby Fekola mine; soft “free digging” ore, requiring no drilling and blasting; an unusually low strip ratio; and very low milling requirements, due to the large percentage of fines in the highly-weathered material. Preliminary in-house estimates indicate that Anaconda could potentially produce between 80,000 and 100,000 ounces per year, for several years. A conceptual engineering study is underway for Anaconda. Fekola capital and operating cost information is being used as a basis for the cost estimates. A base case of four million tonnes per year will be developed, and then larger and smaller cases will be factored depending on the estimated mineral resource. Metallurgical test programs have been completed and will form the basis of the design criteria for the processing plant. Environmental and social baseline studies are underway and will continue throughout 2017. The development budget for Anaconda is approximately $2.2 million for 2017. At Anaconda and Adder, exploration for Fekola-type gold-bearing structures in the underlying bedrock is ongoing. The 2016 exploration program has potentially identified several of the bedrock structures that have weathered to create the extensive zone of saprolite-hosted gold mineralization at Anaconda and Adder. Drilling has intersected intervals of sulphide-related gold mineralization up to 22 metres in length in the bedrock underlying both the Adder and Anaconda target areas. The full extent of these mineralized structures is currently unknown and is subject to follow-up drilling that is ongoing. Note: Bedrock-hosted intervals reported above are >0.6 g/t gold, with a maximum of 5 m internal waste. Intervals reported are core lengths. Approximately one kilometre to the east of Anaconda and Adder, new mineralization has also been intersected in the Mamba zone. Previously, saprolite-hosted gold mineralization was reported for Mamba (refer to B2Gold’s news release dated June 29, 2016), but recent exploration in this area has shown the potential for significant bedrock-hosted gold mineralization. Note: Bedrock-hosted intervals reported above are >0.6 g/t gold, with a maximum of 5 m internal waste. Intervals reported are core lengths. The primary laboratory for the Fekola regional program is SGS Laboratories in Bamako, Mali, where samples are prepared and analysed using 50g fire assay with atomic absorption finish and/or gravimetric finish. Bureau Veritas in Abidjan, Cote d'Ivoire, is the umpire laboratory. The primary laboratory for the Kiaka regional program is ALS Minerals Laboratories in Ouagadougou, Burkina Faso, where samples are prepared and analysed using 50g fire assay with atomic absorption finish and/or gravimetric finish. Quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the core, reverse circulation and aircore drilling sample strings. The results of the control samples are evaluated on a regular basis with batches re-analysed and/or resubmitted as needed. All results stated in this announcement have passed B2Gold's quality assurance and quality control ("QA/QC") protocols. Tom Garagan, Senior Vice President Exploration, is the Qualified Person as defined under National Instrument 43-101, who has reviewed and approved the contents of this news release. Headquartered in Vancouver, Canada, B2Gold Corp. is one of the fastest-growing gold producers in the world. Founded in 2007, today B2Gold has four operating mines, one mine under construction and numerous exploration projects in various countries, including Nicaragua, the Philippines, Namibia, Mali and Burkina Faso. Construction of B2Gold’s Fekola mine in southwest Mali is on budget, and ahead of schedule and is planning for an October 1, 2017 production start. As a result, B2Gold is well positioned to maintain its low-cost structure and growth profile. 1 The mineral resource estimate for the Kiaka project was prepared as of January 8, 2013 by Ben Parsons, MSc, MAusIMM (CP), principal consultant for SRK Consulting (UK) Limited, a Qualified Person as defined under NI 43-101. The estimate reflects the attributable mineral resources based on B2Gold’s 81% interest in the Kiaka project. Mineral resources are estimated using best practices as defined by the CIM and reporting of mineral resources is compliant and in accordance with the disclosure requirements of NI 43-101. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Mineral resource numbers have been rounded to reflect the accuracy of the estimates and numbers may not add due to rounding.


News Article | March 2, 2017
Site: www.marketwired.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 2, 2017) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca" or the "Company") is pleased to provide an update on the ongoing Pre-Feasibility Study (the "PFS") on its Block 14 Gold Project ("Block 14" or the "Project") in the Republic of the Sudan. The PFS is progressing well with most of the component parts completed. However, due to the delay in receipt of laboratory test results, the PFS is now expected to be finished and reported by June, 2017. As part of the PFS, a series of four production scale boreholes have been drilled across the HA8 aquifer, 55km north of the proposed process plant location. Pump testing of these boreholes, as supervised by the Company's consultants, GCS Water and Environmental Consultants, has confirmed that the aquifer is able to accommodate the 1.8 Mtpa throughput scenario used in the PEA, dated July 26, 2016. Part of the PFS involves the investigation of employing alternative tailings disposal methods to maximize water recovery towards achieving a process plant throughput of up to 2.4 Mtpa. At the same time, the Company is mobilizing a second geophysical survey towards expanding the footprint of the current water resource with the aim of identifying additional water for the Project and the region as a whole. PFS work to date suggests that a throughput level of 2.4 Mtpa optimizes project economics. A filtered tailings option and/or the discovery of more water gives optionality in achieving that throughput level. Based on results from a 1,420m diamond core drilling programme designed by SRK Consulting (UK) Ltd., and subsequent analysis of geotechnical logging and laboratory test work, the pit slope design criteria has been revised from that employed in the PEA. The geotechnical work now supports an increase in the overall slope angle of the pits by at least 8° (from 43° to 51°), with a concomitant reduction in waste stripping. As detailed in the February 2, 2017 news release, MPR Geological Consultants have completed an updated Mineral Resource Estimate for the Project following the completion of 7,062m of infill drilling conducted as part of the PFS. The updated Mineral Resource Estimate, using a cut-off grade of 1.0 g/t, comprises an Indicated Resource of 30.6 Mt grading 1.82g/t for 1.792 Moz of gold and an Inferred Resource of 9.7 Mt grading 1.7g/t for an additional 0.536 Moz. In comparison to the previous estimate (July 2016), Indicated Resources have increased by 10% or 159 koz and Inferred Resources have decreased by 15% or 98 koz. The drilling was directed within the PEA design shells and has reduced the Inferred Resources within those shells to less than 3% of total material. Accordingly, the infill programme has successfully confirmed and expanded the PEA resource estimate. Metallurgical test work is running behind schedule due to internal, analytical issues at the metallurgical laboratory. The consultant, SGS, has assured the Company that all test work is now scheduled for completion by the end of March 2017. Commenting on these updates at Block 14, Rick Clark, CEO and Director of Orca, said, "The confirmation of the project water supply at HA8 is a critical tick on the path to production for Block 14. Further, we expect the project to be materially enhanced by the ability to increase the production throughput rate. The geotechnical results will also improve the economics of the project by reducing the strip ratio. The delay in the completion of the PFS is unfortunate but it is important that we have complete confidence in the metallurgical data forming the basis of the PFS." Orca Gold Inc. is a Canadian public company engaged in the acquisition and exploration of mineral properties in North and West Africa. Orca's principal asset is the Block 14 gold project, located in northern Sudan (near the border with Egypt). A PEA was completed on the Block 14 project in 2016 and an updated resource estimate was announced in February 2017. Orca Gold recently announced a deal with Kinross whereby Orca will acquire all of Kinross' property rights and interests in the West African country of Côte d'Ivoire. Upon closing of this transaction Kinross will own an 8.6 % interest in Orca. Orca intends to immediately commence exploration on this very prospective property package. The Company is listed on the TSX Venture Exchange under the symbol "ORG". The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to National Instrument 43-101. Mr. Stuart is the President of the Company and a Chartered Geologist and Fellow of the Geological Society of London. The Mineral Resource estimate was carried out by Nic Johnson of MPR Geological Consultants of Perth, Western Australia who is considered to be independent of Orca Gold Inc. Mr. Johnson is a member in good standing of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the commodity, style of mineralization under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43‐101. Mr. Johnson consents to the inclusion in this press release of the information, in the form and context in which it appears. Samples used for the results described herein are prepared and analyzed by fire assay using a 50 gram charge at the ALS Chemex facility at Rosia Montana in Romania in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted. This press release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws, including statements regarding Orca's (the "Company", the "Corporation", "we" or "our") plans and expectations relating to the Block 14 project ("Block 14") in northern Sudan and the Pre-Feasibility Study ("PFS") currently being conducted by the Corporation. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning mineral resource estimates may also be deemed to constitute "forward-looking statements" to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. The assumptions, risk and uncertainties outlined below are non-exhaustive. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Corporation, or industry results, may vary materially from those described in this presentation. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "expects", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "potential", "possible" or variations thereof or stating that certain actions, events, conditions or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements and forward-looking information are not guarantees of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including without limitation, assumptions about the following (the "Forward-Looking Factors"): future prices of gold and other metals; successful exploration, development, and production of Block 14; the timing and completion of the PFS; performance of contractual obligations by counterparties; operating conditions; political stability; obtaining governmental approvals and financing on time; financial projections and budgets; obtaining licenses and permits; government regulation of the Corporation's mining activities; environmental risks and expenses; market conditions; the securities market; price volatility of the Corporation's securities; currency exchange rates; foreign mining tax regimes; insurance and uninsured risks; financial projections and results; competition; availability of sufficient capital, infrastructure, equipment and labour; dependence on key personnel; dependence on outside parties; conflicts of interest; litigation; land title issues; local community issues; estimation of mineral resources; realization of mineral resources; timing and amount of estimated future production; the life of Block 14; reclamation obligations; changes in project parameters as plans continue to be evaluated; and anticipated costs and expenditures and our ability to achieve the Corporation's goals. While we consider these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies, many of which are based on factors and events that are not within the control of the Corporation and there is no assurance they will prove to be correct. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation known and unknown risks, uncertainties and other factors relating to the Forward-Looking Factors above, and those factors disclosed under the heading "Risk Factors" in the Corporation's documents filed from time to time with the securities regulators in the provinces of Canada. In addition, a number of other factors could cause the actual results, performance or achievements of the Corporation to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, and there is no assurance that the actual results, performance or achievements of the Corporation will be consistent with them. For further details, reference is made to the risk factors discussed or referred to in the Corporation's annual and interim management's discussion and analyses on file with the Canadian securities regulatory authorities and available electronically on the SEDAR website at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events, results, performance or achievements to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause actions, events, results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements and information are made or given as at the date of this presentation and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities law. The reader is cautioned not to place undue reliance on forward-looking statements or forward-looking information. 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.


News Article | February 24, 2017
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CALGARY, ALBERTA--(Marketwired - Feb. 24, 2017) - West High Yield (W.H.Y.) Resources Ltd. (the "Company") (TSX VENTURE:WHY) announces that the Company will be exhibiting in Booth 2923, at this year's Prospectors and Developers Association of Canada (PDAC) 2017 Convention in Toronto, Ontario, March 5 - 8, 2017. The Company continues to pursue additional financing for completion of the environmental base line, environmental assessment study and mine plan development for its magnesium project. In June 2016, the Company commenced work on the environmental study, stakeholder engagement, and mine plan development on the Company's Record Ridge South Magnesium Property as required by the Environmental Assessment Certification and Mine Permit application processes. The Company engaged SRK Consulting (Canada) Inc. (Vancouver) and Greenwood Environmental Inc. (Vancouver) to work on these projects. The Company also engaged Drinkard Metalox, Inc. of Charlotte, North Carolina to perform a series of hydrometallurgical tests on the Company's magnesium ore to evaluate magnesium processing and recovery alternatives. The Company has incurred expenses of approximately $1.5 million on the above projects to date and looks forward to financing and continuation through 2017. The Company issued its Preliminary Economic Assessment on the Record Ridge South Magnesium Property in South Eastern British Columbia on June 4, 2013, which is available under the Company's profile on the System for Electronic Document Analysis and Retrieval and can be accessed through the internet at www.sedar.com. On February 6, 2017, the Company received an additional loan of up to $200,000 from Big Mountain Development Corp. Ltd., a related party (the "Lender"). The loan bears interest at the rate of 8% per annum and is secured by a pledge to and in favour of the Lender of all of the Company's present and after acquired property. On February 17, 2017, the Company secured an additional 402 hectares which is contiguous to the Company's existing mineral and crown granted claims in British Columbia bringing the Company's total mineral and crown grants claims to 8,314 hectares. West High Yield is a publicly traded junior mining exploration company focused on the acquisition, exploration and development of mineral resource properties in Canada with a primary objective to locate and develop economic gold, nickel and magnesium properties. This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning its proposed business plans and operations. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company can give no assurance that they will prove to be correct. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, skilled personnel and supplies; changes in tax laws; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. 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 press release.


News Article | February 15, 2017
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- Historical hole located 500 meters east of the deposit returned 31.94 g/t gold over 3.5 meters VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 13, 2017) - Columbus Gold Corp. (TSX:CGT)(OTCQX:CBGDF) ("Columbus") is pleased to announce that a drilling program commenced on February 10th, at Columbus Gold's 100% owned Montagne d'Or Gold deposit in French Guiana. Montagne d'Or hosts Indicated mineral resources of 3.9 million ounces (contained within 83.2 million tonnes grading 1.45 g/t gold) and Inferred mineral resources of 1.1 million ounces (contained within 22.4 million tonnes grading 1.55 g/t gold) using a cut-off grade of 0.4 g/t gold (refer to News Release dated April 21, 2015).* In anticipation of the forthcoming completion of a Bankable Feasibility Study on the Montagne d'Or gold deposit, an exploration focused drilling program is being carried-out to assess expansion potential. The program will consist of 36 core holes, for a total 5,520 meters, designed as a first pass investigation of exploration targets on strike of, and in very close proximity of the currently defined mineral resources that form the deposit. Three separate targets will be tested outside of the deposit envelope: In addition, within the Montagne d'Or deposit envelope one hole (hole 01) will test the depth extension of the gold mineralization. To date the vertical depth of drilling has averaged only about 250 meters. Please refer to the following map for the locations of the target areas and planned drill holes: One deep drill hole (hole 01), 750 meters in length will test the down-dip extent of the principal UFZ and secondary LFZ mineralized zones on drill section 2890mE, within the west-central segment of the deposit. This segment displays the best continuity and average grade of the gold mineralized envelopes within the drilled-out area. The UFZ is projected to be intersected at -350 meters of vertical depth from surface (-100m ASL elevation), 100 meters below the intersection of 2.88 g/t gold over 67.0 meters obtained in hole MO-12-72, on drill section 3010mE at 250 meters of vertical depth (0m ASL elevation). A cross section is available at the following link: Magnetic, electromagnetic and radiometric airborne geophysical survey data has traced the prospective volcano-sedimentary sequence hosting the Montagne d'Or gold deposit for up to 5 km to the west. Twenty-three (23) holes on four drill fences, located on sections 2200mE, 2000mE, 1600mE and 1150mE, are planned to test the soil-gold anomaly and rock chip gold values obtained along the western projection of the drill-defined mineral resources. The planned drill fences represent 200, 400, 800 and 1,250 meter step-outs from the western limit of the Montagne d'Or mineral resources at 2400mE. Drill hole fences 1600mE and 1150mE are located on an exclusive exploration permit ("PER") granted to Columbus recently in July 2016 (refer to news release dated July 27th, 2016). Drill hole fences 2200mE and 2000mE (holes 02 to 13) will test the principal UFZ and secondary LFZ zones at 200-meter spacing along strike from drill section 2400mE. The holes will also test the WSW extent of an ENE-trending gold mineralized structure intersected in historical hole MO-97-29 and MO-97-30, which returned intercepts of 10.96 g/t gold over 3.0 meters and 11.58 g/t gold over 4.5 meters, respectively. Drill hole fence 1600mE (holes 14 to 19) was designed to traverse the entire thickness of the prospective volcano-sedimentary sequence, 800 meters on strike from the Montagne d'Or mineral resources. The area geology is masked by a layer of displaced material (landslide) originating from the upper elevations of a massif to the south. Note that the truncation of the soil-gold anomaly over this area is a result of the landslide cover. Drill hole fence 1150mE (holes 20 to 24) will the test the soil-gold anomaly and rock chip gold values obtained from sulphide mineralized volcanics exposed in drainages. The mineralized material type is comparable to the mineralized type at the Montagne d'Or deposit. Drill hole fence 25 to 30 will traverse a broad northwesterly-aligned soil-gold anomaly. The geochemical anomaly, located 500 meters to the east of the eastern limit of the Montagne d'Or mineral resources, straddles the boundary between mining concession C02/46 and an exclusive exploration permits ("PER") granted to Columbus in July 2016. Holes 31 to 33, on the same fence as holes 25 to 30, will investigate a cross-cutting WNW-ESE aligned soil-gold anomaly. The highest values within the Gustave soil-gold anomaly are centered on a quartz vein uncovered at the southwest limit of the trend, referred to as the "Gustave" vein. The Gustave vein, oriented N40°W and dipping 60° to the NE, was tested with two core holes in historical drilling in 1997 (MO-97-47 and -48). An intersection of 31.94 g/t gold over 3.5 meters was returned in hole MO-97-48 within the immediate wall of the vein. Drill holes 34, 35 and 36 will investigate soil-gold anomalies obtained on prominent linear N-S, NNE and NNW-aligned topographic highs, where quartz vein debris is exposed along the flanks. The ridges are interpreted to be cored by resistant quartz veins. Within Columbus' claim block, these structural orientations are known to host quartz-gold veins and stockworks, such as at the Élysée prospect, located 10 km to the west-northwest of the Montagne d'Or deposit. A mining work declaration ("DOTM") and a mining work authorization ("AOTM") to conduct the drilling program on concession C02/46 (Montagne d'Or) and the adjoining Bernard and Cigaline exclusive exploration permits ("PER") were submitted to the Regional Directorate for the Environment, Development and Housing ("DEAL"), which regulates mining and exploration activities in French Guiana. Columbus has been authorized to commence drilling operations. A Preliminary Economic Assessment ("PEA")** for the Montagne d'Or deposit was completed by SRK Consulting (U.S.) Inc. in July 2015 (refer to News Releases dated July 8, 2015 and August 4, 2015). The PEA estimates approximately 273,000 ounces of gold produced per year in the first 10 years of production at an All-In Sustaining Capital Cost per ounce of US$711, and a mined head-grade of 2.0 g/t gold. A Bankable Feasibility Study is scheduled to be completed in the first quarter of 2017. The study is being funded by Nord Gold S.E. pursuant to which they can earn a 55.01% interest in the Montagne d'Or deposit. Rock Lefrançois, Chief Operating Officer for Columbus and Qualified Person under National Instrument 43-101, has reviewed this news release and is responsible for the technical information reported herein. * Mineral resources that are not mineral reserves do not have demonstrated economic viability. ** The PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The PEA estimates economic results using a US$1,200/oz gold price, and an NPV 8%. Initial Capital Costs are estimated at US$366 million for a 13-year mine life. For the first 11 years, the annual recovered gold production is approximately 265,000 oz/year. The NPV 8% changes by approximately US$1.1 million per dollar change in gold price; and makes taxation assumptions on the French tax code. ON BEHALF OF THE BOARD, This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting Columbus: the expected completion of a feasibility study; the expected exploration potential provided by the new exploration permits; the extent of and anticipated timeline to complete an exploration program under the new permits; expected drill targets, depths and testing to be conducted; the estimation of mineral resources; the realization of mineral resource estimates; the realization of the expected economics of the Montagne d'Or deposit; and general exploration plans. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including: the actual results of current and future exploration activities; changes in project parameters and/or economic assessments as plans continue to be refined; future prices of metals; possible variations of mineral grade or rates of recovery; ability to acquire necessary permits and other authorizations; environmental compliance; cost increases; availability of qualified workers and drill equipment; competition for mining properties; risks associated with exploration projects including, without limitation, the accuracy of interpretations; mineral reserve and resource estimates (including the risk of assumption and methodology errors and ability to complete a new resource estimate by the proposed target date or at all); the ability to meet proposed schedules for the completion of metallurgical tests; the ability to complete the feasibility study by the stated deadline or at all; dependence on third parties for services; non-performance by contractual counterparties; title risks; risks associated with Nord Gold S.E. electing not to exercise its option; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: that the proposed drilling program will be completed in full and to plan; the assumptions contained in Columbus' Preliminary Economic Assessment are accurate and complete; that the mineral resource update is positive; that the results of the Feasibility Study will be positive; general business and economic conditions; the timing and receipt of required approvals and permits; the availability of financing; power prices; the ability to procure equipment and supplies including, without limitation, drill rigs; and ongoing relations with employees, partners, optionees and joint venturers. The foregoing list is not exhaustive and Columbus undertakes no obligation to update any of the foregoing except as required by law.


TORONTO, ONTARIO--(Marketwired - Feb. 28, 2017) - Red Pine Exploration Inc. (TSX VENTURE:RPX) ("Red Pine" or the "Company") has received partial results for holes SD-16-45 to SD-17-49 from its on-going drilling program at the Wawa Gold Project. Quentin Yarie, President and Chief Executive Officer of Red Pine states, "It is exciting that our expectations of discovering a high-grade zone in the northern extension of the Surluga Deposit were met with the results of SD-16-45. Extending and defining this shallow high-grade zone, beginning 98 metres below surface will have positive impacts on the Surluga Deposit inferred resource2. Exploration work in the Darwin-Grace mine area is uncovering exceptional near surface targets in the vicinity of the old mine with visible gold1 observed in four holes and the discovery of two new shear zones with quartz veins containing visible gold. The discoveries made in the area indicate that the structure hosting the mine is larger and more fertile than initially anticipated." Drilling Results Holes SD-16-44, SD-16-45 and SD-16-46 were drilled to test the depth extension of mineralization encountered at surface in the Surluga Road Shear Zone (see November 11, 2016 News Release), in an area extending north of the Surluga Deposit previously untested by drilling. The high-grade intersection in SD-16-45 occurs down-dip from the quartz vein networks intercepted in SD-16-44 that ran 1.61 g/t gold over 26.25 metres (Figure 1). Information obtained from SD-16-45 will assist in targeting higher grade intersections north of the current resource. Furthermore, Hole SD-16-45 intersected a fold closure zone within the Jubilee Shear Zone. Fold closures represent zones of dilation which act to channel ore forming fluids. As a result, they are often associated with zones of maximum grade/thickness in many gold deposits around the world. Another fold closure zone was intersected previously by Red Pine in Hole SD-14-04 that contained 8.03 g/t gold over 23.03 metres (calculated true width). Drilling further south suggests that the Darwin-Grace mine may be part of a larger deformation zone than previously anticipated. This under-explored area of brittle-ductile deformation is associated with quartz veins containing visible gold1 which extend over 10-20 meters downhole. Red Pine's recent logging/mapping initiatives reveal a series of stacked mineralized deformation zones up to 15 meters-long hosted within relatively less deformed zones. These zones may not have been identified by previous operators as the telltale L-tectonite fabric they are associated with are challenging to recognize in drill core and at surface. Figure 2. Location of drill holes near the Darwin-Grace Mine in relationship to the Surluga Deposit: http://media3.marketwire.com/docs/7123p2.jpg On-going Drilling Program The on-going diamond drill program is focused on expanding the Surluga Deposit, defining the gold structures of the Wawa Gold Corridor and quantifying the structures associated with the historic mines of the property. On-site Quality Assurance/Quality Control ("QA/QC") Measures Drill core samples were transported in security-sealed bags for analyses at Activation Laboratories Ltd. in Timmins, Ontario and to SGS in Cochrane, Ontario. Individual samples are labeled, placed in plastic sample bags and sealed. Groups of samples are then placed into durable rice bags and then shipped. The remaining coarse reject portions of the samples remain in storage if further work or verification is needed. Red Pine has implemented a quality-control program to comply with best practices in the sampling and analysis of drill core. As part of its QA/QC program, Red Pine inserts external gold standards (low to high grade) and blanks every 20 samples in addition to random standards, blanks, and duplicates. Qualified Person Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release. About Red Pine Exploration Inc. Red Pine Exploration Inc. is a gold and base-metals exploration company headquartered in Toronto, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "RPX". Red Pine has a 60% interest in the Wawa Gold Project with Citabar LLP holding the remaining 40% interest. Red Pine is the Operating Manager of the Project and is focused on expanding the existing gold resource on the property. For more information about the Company visit www.redpineexp.com. 2NI 43-101 inferred resource of 1,088,000 ounces of gold at a 1.71 grams per tonne (g/t) using a 0.40 g/t gold cut-off grade for pit-constrained and 2.50 g/t gold cut-off grade for underground-constrained resources, contained in 19.82 million tonnes open along strike and at depth. The Cut-off grades are based on a gold price of US$1,250 per once and a gold recovery of 95 percent (Mineral Resource Statement*, Surluga-Jubilee Gold Deposit, Wawa Gold Project, Ontario, SRK Consulting (Canada) Inc (effective May 26, 2015)). The report is available on www.SEDAR.com under Red Pine's profile. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This News Release contains forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.


TORONTO, ONTARIO--(Marketwired - Feb. 23, 2017) - Argonaut Gold Inc. (TSX:AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce that its wholly-owned subsidiary, Minera Real Del Oro, S.A. de C.V., has entered into an agreement with Desarrollos Mineros El Aguila, S.A. de C.V. ("El Aguila"), a wholly-owned subsidiary of Fresnillo Plc ("Fresnillo") whereby Argonaut will acquire 420 hectares pursuant to a mineral concession (the "San Juan Concession") owned by El Aguila covering known projections of El Castillo mineralization (the "Transaction"). In addition, the parties have entered into an agreement whereby portions of other adjacent concessions may be used by Argonaut for leach pads, ponds and overburden sites, subject to the terms of such agreement. All dollar amounts are expressed in United States dollars unless otherwise specified. Under the terms of the Transaction, Argonaut has agreed to pay El Aguila cash consideration of $26 million, half of which is payable today upon the execution of the Transaction and the remainder on or before December 15, 2017. Currently, Argonaut holds the surface rights to the San Juan Concession. Over the past three years Argonaut and Fresnillo have collaborated as Fresnillo completed 34,510 metres of exploration drilling in 132 drill holes. The Company reviewed these results and has found evidence that the El Castillo mineral system continues onto the San Juan Concession to the northeast and south of the original El Castillo concession boundaries. The Company believes that the acquisition of the San Juan concession has the potential to positively impact its production profile and notes the recently published three-year production outlook (see press release dated February 16, 2017) does not include any allowance for the impact of this acquisition. Pete Dougherty, President & CEO commented: "We are excited to have entered into an agreement that is beneficial to both parties. We will now be able to mine the remaining mineralization on our side of the concession boundary as we move the pit wall back onto the San Juan Concession. This, coupled with the known mineralization on the San Juan Concession, allows us the opportunity to expand the pit even farther. We have increased our footprint in the area threefold going from approximately 200 hectares to over 620 hectares. We believe this is a very strategic acquisition, as it means El Castillo has the potential to be an important part of our future production." Tom Burkhart, Vice President of Exploration stated: "The acquisition of the San Juan Concession greatly enhances our opportunity to extend mine life at El Castillo. We are excited to have acquired this concession, as it hosts significant drill intercepts close to the pit boundaries and may allow us to capture mineralization within our resources but not in the current mine plans due to slope angles. We expect to commence shortly on an approximate $2 million detailed infill program within areas of mineralization to increase drill hole density from its current 50 to 75 metre spacing. Once our infill drill program has been completed and analyzed, we will be in a position to update the mineral resource statement for El Castillo." To view plan view maps, cross sections, drill hole locations and results above a 0.15 g/t cutoff in relation to the El Castillo mine, visit: http://www.argonautgold.com/gold_operations/drill_results/ Table 1 below illustrates selected results from Fresnillo's drill program. All reported intervals are within the oxide zone: The Company has reviewed the sampling procedures utilized by Fresnillo during its drilling programs on the San Juan Concession. Drill samples are transported to the preparation laboratory of ALS-Chemex Labs Inc. in Chihuahua, Mexico where samples are prepared and pulps sent for assay in the laboratory of ALS-Chemex in Vancouver, British Columbia. Samples are analyzed for gold by fire assay and atomic absorption finish. For silver, samples use a multi-element inductively coupled plasma (ICP) assay. The practices are standard Quality Assurance/Quality Control sample procedures similar to those used by Argonaut. This includes the insertion of sample standards, blanks and duplicates as well as systematic check assaying by a second accredited laboratory. The technical information relating to exploration activities disclosed in this news release was prepared under the supervision of, and reviewed and verified by, Thomas Burkhart, Argonaut Gold's Vice President of Exploration and Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects. For further information on the El Castillo mine, please see the technical report on the El Castillo mine titled "NI 43-101 Technical Report on Resources and Reserves, Argonaut Gold Inc., El Castillo Mine, Durango State, Mexico", dated February 24, 2011 (effective date of November 6, 2010), prepared by SRK Consulting (U.S.), Inc. for Argonaut Gold (the "El Castillo Report"). The El Castillo Report is available electronically on Argonaut's website at www.argonautgold.com or on SEDAR under Argonaut's issuer profile at www.sedar.com. The Company is not aware of any legal, political, environmental or other risks that could materially affect the potential development of the project other than those set out in the annual information form of Argonaut for the financial year ended December 31, 2015 (dated March 16, 2016) filed on SEDAR under Argonaut's issuer profile at www.sedar.com. Please see below under the heading "Cautionary Note Regarding Forward-looking Statements" for further details regarding risks facing the Company. Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo mine and the construction stage San Agustin project in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada. The Company also has several exploration stage projects, all of which are located in North America. This press release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the business, operations and financial performance and condition of Argonaut Gold. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the acquisition by Argonaut of the San Juan Concession; the ability of the San Juan Concession to extend mine life at El Castillo; the potential for further mine expansion along the El Castillo mineral corridor; the reliability of geological interpretations; the timing and ability of Argonaut to mine the remaining mineralization on its side of the boundary a move the pit wall back onto the San Juan Concession; the timing and ability to implement a more exhaustive infill program surrounding the existing Fresnillo drilling on the San Juan Concession; planned investment of approximately $2 million in additional exploration on the San Juan Concession; the significance of drill intercepts; the timing and ability of the Company to provide an updated mineral resource statement, if at all; the timing and amount of estimated future production; economics of production; estimated production and mine life of the various mineral projects of Argonaut; the future price of gold and silver; estimation of mineral resources at mineral projects of Argonaut; the realization of mineral reserve and resource estimates; the receipt of necessary permits; the benefits of the development potential of the properties of Argonaut and currency exchange rate fluctuations. Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include Argonaut being unable to complete the acquisition of the San Juan Concession; the ability of geological interpretations and drill results to predict mineralization; the ownership of surface rights covering mineral concessions; variations in metal grades; variations in recovery rates; the possibility of project cost overruns or unanticipated costs and expenses' permitting delays; changes in market conditions; risks relating to international operations; fluctuating metal prices and currency exchange rates; changes in project parameters; labour disputes and other risks of the mining industry; failure of plan; and equipment or processes to operate as anticipated. These factors are discussed in greater detail in the annual information form of Argonaut for the financial year ended December 31, 2015 (dated March 16, 2016) and the management's discussion and analysis of Argonaut for the three and nine months ended September 30, 2016 (dated November 2, 2016), both of which are filed on SEDAR under Argonaut's issuer profile at www.sedar.com and also provide additional general assumptions in connection with these statements. Argonaut cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Argonaut believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed.

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