From the offices of Amir Adnani: Scott Melbye, our executive VP just returned from the Nuclear Energy Institute Uranium Fuel Conference in Boston. His takeaways are indicative of improving fundamentals that are driving the uranium market:
There was a strong turnout for this conference that focuses solely on nuclear fuel cycle issues. Continuing the trend of recent industry meetings, a number of attendees from the investment community were also present.
Cameco’s care and maintenance of the McArthur River mine was also a leading topic of conversation, particularly their ongoing procurement activity focused on the backfilling of customer contract commitments from open market purchases. While the price is already up over 60% from the 12-year low, they advised their purchasing program is still only in the early stages. They have increased their targeted purchase volumes expecting to buy 1-3 million pounds additionally by years-end and 10-12 million pounds in 2019.
UxC gave an unusually upbeat presentation on the uranium market, titled “Market on the Mend” noting global nuclear energy generation in 2018 has now surpassed the level of global nuclear power output that existed pre-Fukushima. They also stated 2018 has been a key year on the supply side with accelerated rebalancing of fundamentals due to the massive cuts to global production and increased investor purchases of uranium. They added that this was the first time since 2010 that global reactor demand and supplies fell back into balance (and deficit) as a result.
While Enricher underfeeding has contributed to oversupply of the uranium market over the past several years, both Urenco and Tenex confirmed the 20 million lbs. per year source of supply has peaked and is slated to decline. All expansion plans have been scrapped and older centrifuges are being taken off-line and decommissioned. The return of Japanese demand and supplies to other new entrants is contributing to the fuller utilization of existing capacity for enrichment activities and less for uranium creation.
In meetings with most of the utilities present, discussions centered around the Department of Commerce section 232 on foreign imports. This has put off some procurements plans on hold until the outcome is more clear, but the utilities acknowledge that their uncommitted requirements are rising in the coming years and a renewed procurement cycle needs to take place.
Finally, keynote speaker, Michael Shellenberger made a number of compelling arguments for nuclear in the global energy debate:
Over the past 40 years, nuclear energy has been shown to be the safest form of generating electricity, having saved over 1.8 million lives, compared to alternatives.
Nuclear power scaled up over this time to provide 6% of global electricity at a cost of $1.8 trillion, whereas, solar and wind has taken $2 trillion to scale up to provide only 3% of global energy.
Germany, which has increased its share of renewables while phasing out nuclear power, produces 10 times more CO2 per unit of energy than nuclear-heavy France, and German energy is twice as expensive as France’s.
In summary, this was an upbeat conference with a positive tone compared to recent years and encouraging for a continued recovery in the uranium price. Best, Amir Amir Adnani | President & CEO URANIUM ENERGY CORP NYSE AMERICAN: UEC | www.uraniumenergy.com
CITIC Metal and Zijin Mining invested more than C$800 million to advance Ivanhoe’s three world-scale mine projects in Southern Africa
Ivanhoeannounced the MakokoDiscovery on its 100%-owned Western Foreland exploration licences near Kamoa-Kakula– the company’s third major copper discovery in the DRC
Toronto, Ontario–(Newsfile Corp. – November 8, 2018) – Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) today announced its financial results for the third quarter ended September 30, 2018. All figures are in U.S. dollars unless otherwise stated. Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the development of new mines at the Kamoa-Kakula copper discovery in the Democratic Republic of Congo (DRC) and the Platreef platinum-palladium-nickel-copper-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-lead mine, also in the DRC.
Highlights
On September 19, 2018, China-based CITIC Metal Co., Ltd. (CITIC Metal) completed a long-term, strategic cooperation and investment agreement that saw its direct subsidiary, CITIC Metal Africa Investments Limited (CITIC Metal Africa), invest C$723 million ($555 million) to advance Ivanhoe’s three projects in Southern Africa. Under the terms of the investment agreement, CITIC Metal Africa acquired a 19.5% stake in Ivanhoe Mines through a private placement at a price of C$3.68 per share.
Also on September 19, 2018, Zijin Mining Group Co., Ltd. (Zijin Mining), Ivanhoe’s joint-venture partner at the Kamoa-Kakula Project, exercised its anti-dilution rights at a price of C$3.68 per share, generating additional proceeds for Ivanhoe of C$78 million (approximately US$60 million). This resulted in Zijin retaining a 9.7% ownership stake in Ivanhoe Mines – its level of ownership prior to the completion of CITIC Metal Africa’s strategic investment.
Pursuant to the terms of the strategic cooperation and investment agreement with CITIC Metal, Yufeng “Miles” Sun, President of CITIC Metal Group Limited, and Tadeu Carneiro, former Chief Executive Officer of Brazil-based Companhia Brasileira de Metalurgia e Mineração (CBMM), have joined the Ivanhoe Mines Board of Directors. Mr. Sun and Mr. Carneiro were nominated by CITIC Metal. Mr. Carneiro is an independent director of Ivanhoe Mines.
On October 1, 2018, Ivanhoe announced the Makoko Copper Discovery on its 100%-owned Western Foreland exploration licences, near Kamoa-Kakula in the DRC. Makoko, Ivanhoe’s third major copper discovery in the DRC, shows geological characteristics identical to the tier-one Kamoa-Kakula Discoveries. Drilling is continuing on other Western Foreland targets.
Underground development at the planned initial mine at Kakula is making steady progress and is expected to reach the high-grade copper mineralization later this year. The service and conveyor declines each have been advanced more than 1,000 metres through underground development work. The 3,535-metre decline development contract is scheduled to be completed by the end of 2018.
A pre-feasibility study (PFS) for phase 1 of the Kamoa-Kakula Project is underway and is expected to be completed early in 2019. The planned initial, six-million-tonne-per-annum (Mtpa) mine and concentrator at Kakula is estimated to have an initial capital cost of $1.2 billion. Subsequent expansions and a smelter can be funded from cash flows or project finance. Ivanhoe and Zijin Mining are exploring options to accelerate building of the first two mines at Kamoa-Kakula, and the potential for expanding production to 18 Mtpa, and beyond.
A total of 25,298 metres of drilling was completed at Kakula, Kakula West and Kamoa North and surrounding areas during Q3 2018, increasing the total drilling completed during the first nine months of 2018 to 62,224 metres.
On July 30, 2018, Ivanhoe announced a new Mineral Resource estimate for the Kipushi Mine in the DRC that increased zinc-rich Measured and Indicated Mineral Resources by 16%, from 10.2 million tonnes to 11.8 million tonnes.
The new estimate also increased Kipushi’s zinc grade from 34.89% to 35.34%. In addition, the mine’s copper-rich Measured and Indicated Resources have increased by 40% from 1.6 million tonnes to 2.3 million tonnes, with a slight increase in the copper grade from 4.01% to 4.03%.
The updated Mineral Resource will be used in the preparation of the Kipushi definitive feasibility study (DFS), which is expected early in 2019. The DFS will update and refine the findings of the PFS issued last December. Similar to the PFS, the DFS will focus on the initial mining of Kipushi’s Big Zinc Zone.
The December 2017 PFS analyzed the plan to bring Kipushi’s Big Zinc Zone into production in less than two years, with a life-of-mine, average annual production rate of 225,000 tonnes of zinc and cash costs of $0.48 per pound of zinc. The planned return to production would establish Kipushi as the world’s highest-grade, major zinc mine.
On October 8, 2018, Ivanhoe announced that the sinking of Shaft 1 at the Platreef platinum-palladium-nickel-copper-gold discovery in South Africa reached the top of the Flatreef orebody, at a depth of approximately 780 metres. Sinking has reached a depth of 809 metres and will continue to its planned final depth of 982 metres. The Platreef mining team delivered the first ore from the underground mine development to surface stockpiles for metallurgical sampling.
The estimated thickness of the mineralized reef (T1 & T2 mineralized zones) at Shaft 1 is 26 metres, with grades of platinum-group metals ranging up to 11 grams per tonne (g/t) 3PE (platinum, palladium and rhodium) plus gold, as well as significant quantities of nickel and copper. The 26-metre intersection will yield approximately 3,000 tonnes of ore, estimated to contain more than 400 ounces of platinum-group metals.
Surface construction for Platreef’s Shaft 2 is progressing. Blasting and excavation of a box cut to a depth of approximately 29 metres below surface is underway. Construction of a concrete hitch for the headframe is expected to be completed early in 2019.
Based on the findings of an independent, DFS issued in July 2017, the Platreef Mine is projected to be Africa’s lowest-cost producer of platinum-group metals, with a cash cost of $351 per ounce of platinum, palladium, rhodium and gold, net of by-products, including sustaining capital costs.
At the end of Q3 2018, Kamoa-Kakula had recorded 11.27 million work hours free of lost-time injuries, Kipushi 1.72 million work hours, and Platreef 666,009 work hours.
Principal projects and review of activities
1. Platreef Project 64%-owned by Ivanhoe Mines South Africa
The Platreef Project is owned by Ivanplats (Pty) Ltd (Ivanplats), which is 64%-owned by Ivanhoe Mines. A 26% interest is held by Ivanplats’ historically-disadvantaged, broad-based, black economic empowerment (B-BBEE) partners, which include 20 local host communities with a total of approximately 150,000 people, project employees and local entrepreneurs. In April 2018, Ivanplats reconfirmed its Level 3 status in its fourth verification assessment on a B-BBEE scorecard. A Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation and Japan Gas Corporation owns a 10% interest in Ivanplats, which it acquired in two tranches in 2010 and 2011 for a total investment of $290 million.
The Platreef Project hosts an underground deposit of thick, platinum-group metals, nickel, copper and gold mineralization on the Northern Limb of the Bushveld Igneous Complex in Limpopo Province, approximately 280 kilometres northeast of Johannesburg and eight kilometres from the town of Mokopane.
On the Northern Limb, platinum-group metals mineralization is hosted primarily within the Platreef, a mineralized sequence that is traced more than 30 kilometres along strike. Ivanhoe’s Platreef Project, within the Platreef’s southern sector, is comprised of two contiguous properties: Turfspruit and Macalacaskop. Turfspruit, the northernmost property, is contiguous with, and along strike from, Anglo Platinum’s Mogalakwena group of mining operations and properties.
Since 2007, Ivanhoe has focused its exploration and development activities on defining and advancing the down-dip extension of its original discovery at Platreef, now known as the Flatreef Deposit, which is amenable to highly mechanized, underground mining methods. The Flatreef area lies entirely on the Turfspruit and Macalacaskop properties, which form part of the company’s mining right.
Health and safety at Platreef
At the end of Q3 2018, the Platreef Project reached a total of 666,009 lost-time, injury-free hours worked in terms of South Africa’s Mine Health and Safety Act and Occupational Health and Safety Act. It has been four months since the last lost-time injury occurred at the Platreef Project, which continues to strive toward its workplace objective of an environment that causes zero harm to employees, contractors, sub-contractors and consultants.
Shaft 1 now extends to a depth of 800 metres below surface
Shaft 1 reached the top of the high-grade Flatreef Deposit (T1 mineralized zone) at a depth of 780.2 metres below surface in September 2018. The Platreef mining team has delivered the first ore from the underground mine development to surface stockpiles for metallurgical sampling. The estimated thickness of the mineralized reef (T1 & T2 mineralized zones) at Shaft 1 is 26 metres, with grades of platinum-group metals ranging up to 11 grams per tonne (g/t) 3PE (platinum, palladium and rhodium) plus gold, as well as significant quantities of nickel and copper. The 26-metre intersection will yield approximately 3,000 tonnes of ore, estimated to contain more than 400 ounces of platinum-group metals.
Current shaft depth is 809 metres and sinking is continuing through the mineralized reef. The 750-metre-level station was successfully developed, with steelwork and concrete construction ongoing. The station will provide initial, underground access to the high-grade orebody, enabling mine development to proceed during the construction of Shaft 2. With a hoisting capacity of six million tonnes a year, Shaft 2 will become the mine’s main production shaft and will allow access for the first raise-bore shaft that will provide ventilation to the underground workings during the mine’s ramp-up phase.
As shaft sinking advances, two additional stations will be developed at mine-working depths of 850 metres and 950 metres. Shaft 1 is expected to reach its projected, final depth of 982 metres below surface in early 2020. Shaft 1 ultimately will become the primary ventilation intake shaft during the project’s initial, four-Mtpa production case.
Figure 1: Members of the PlatreefProject team and its South African sinking contractor,
Aveng Mining, in Shaft 1 at the intersection of the Flatreef Deposit.
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Shaft 2 early-works construction progressing
Shaft 2, to be located approximately 100 metres northeast of Shaft 1, will have an internal diameter of 10 metres. It will be lined with concrete and sunk to a planned, final depth of more than 1,104 metres below surface. It will be equipped with two, 40-tonne, rock-hoisting skips capable of hoisting a total of six million tonnes of ore a year – the single largest hoisting capacity at any mine in Africa.
The headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation. The first seven blasts for Shaft 2’s box cut were successfully completed, with the last two remaining blasts expected to take place before the end of 2018. The blasting will enable the excavation of the box cut to a depth of approximately 29 metres below surface and the construction of the concrete hitch (shaft collar foundation) for the 103-metre-tall concrete headgear that will house the shaft’s permanent hoisting facilities and support the shaft collar. Excavation of the box cut and construction of the hitch foundation is expected to be completed in early 2019, enabling the beginning of the pre-sink that will extend 84 metres below surface.
Figure 2: Shaft 2 box-cut excavation in progress.
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Underground mining to incorporate highly productive, mechanized methods
Ivanhoe plans to develop the Platreef Mine in phases. The initial annual production rate of four Mtpa is designed to establish an operating platform to support future expansions. This is expected to be followed by a potential doubling of production to eight Mtpa, and then a third expansion phase to a steady-state 12 Mtpa, which would establish Platreef among the largest platinum-group-metals mines in the world.
The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. Shaft 2 will provide primary access to the mining zones; secondary access will be via Shaft 1. During mine production, both shafts also will serve as ventilation intakes. Three additional ventilation exhaust raises are planned to achieve steady-state production.
Planned mining methods will use highly productive, mechanized methods, including long-hole stoping and drift-and-fill mining. Each method will utilize cemented backfill for maximum ore extraction. The ore will be hauled from the stopes to a series of internal ore passes and fed to the bottom of Shaft 2, where it will be crushed and hoisted to surface.
The current mine plan has been improved beyond earlier projections in the 2015 PFS mine plan by optimizing stope design, employing a declining Net Smelter Return (NSR) strategy and targeting higher-grade zones early in the mine’s life. This strategy has increased the grade profile by 23% on a 3PE+Au basis in the first 10 years of operation and by 10% during the life of the mine.
Platreef project financing continuingto advance
Ivanhoe continues to advance the arrangement of project financing for the development of the Platreef Project. Negotiation of a term sheet is progressing well with the Initial Mandated Lead Arrangers (IMLAs), which are KfW IPEX-Bank, a 100% subsidiary of the German promotional bank KfW; Swedish Export Credit Corporation; Nedbank Limited (acting through its Nedbank Corporate and Investment Banking division); and Societe Generale Corporate & Investment Banking.
In October 2018, Export Development Canada (EDC) advised Ivanhoe that it would not renew its IMLA mandate, as it is currently reviewing its market position for South Africa. EDC informed Ivanhoe that its decision was not, based on the due diligence completed to date, related to any specific concern it had with the company or the Platreef Project. In addition preliminary discussions are underway with leading South African financial institutions regarding the financing of the black economic empowerment partners’ contribution to the development capital which would thereby reduce the amount that would otherwise have to be contributed by Ivanhoe on their behalf.
Long-term supply of bulk water secured for the Platreef Mine
On May 7, 2018, Ivanhoe announced the signing of a new agreement to receive local, treated water to supply most of the bulk water needed for the first phase of production at Platreef. The Mogalakwena Local Municipality has agreed to supply a minimum of five million litres of treated water a day for 32 years, beginning in 2022, from the town of Mokopane’s new Masodi Treatment Works. Initial supply will be used in Platreef’s ongoing underground mine development and surface infrastructure construction.
Under terms of the agreement, which is subject to certain suspensive conditions, Ivanplats will provide financial assistance to the municipality for certified costs of up to a maximum of R248 million (approximately $19.6 million) to complete the Masodi treatment plant. Ivanplats will purchase the treated wastewater at a reduced rate of R5 per thousand litres for the first 10 Ml/day to offset a portion of the initial capital contributed.
Development of human resources and job skills
Work progressed on the implementation of Ivanhoe’s Social and Labour Plan (SLP). The company has pledged a total of R160 million ($13 million) during the first five years, culminating in November 2019. The approved plan includes R67 million ($6 million) for the development of job skills among local residents and R88 million ($7 million) for local economic development projects.
2. Kipushi Project 68%-owned by Ivanhoe Mines Democratic Republic of Congo
The Kipushi copper-zinc-germanium-lead mine, in the DRC, is adjacent to the town of Kipushi and approximately 30 kilometres southwest of Lubumbashi. It is located on the Central African Copperbelt, approximately 250 kilometres southeast of the Kamoa-Kakula Project and less than one kilometre from the Zambian border. Ivanhoe acquired its 68% interest in the Kipushi Project in November 2011; the balance of 32% is held by the state-owned mining company, La Générale des Carrières et des Mines (Gécamines).
Health, safety and community development
At the end of Q3 2018, the Kipushi Project had achieved a total 1,724,816 work hours free of lost-time injuries. On September 16, 2018, it had been a year since a lost-time injury had occurred at the Kipushi Project.
The Kipushi Project operates a potable-water station to supply the municipality with water. This includes power supply, disinfectant chemicals, routine maintenance, security and emergency repair of leaks to the primary reticulation. The Kipushi Project also installed and commissioned new overhead powerlines to the pump station. Other community development projects continued during Q3 and included the Kipushi women’s literacy project.
Kipushi Mineral Resources
The Kipushi Project’s current Mineral Resource estimate was updated with an effective date of June 14, 2018, and was prepared by the MSA Group, of Johannesburg, South Africa, in compliance with 2014 CIM Definition Standards.
Zinc-rich Measured and Indicated Mineral Resources, primarily in the Big Zinc Zone, total 11.78 million tonnes at grades of 35.34% zinc, 0.80% copper, 23 g/t silver and 64 g/t germanium, at a 7% zinc cut-off – containing an estimated 9.2 billion pounds of zinc. Zinc-rich Inferred Mineral Resources total an additional 1.14 million tonnes at grades of 33.77% zinc, 1.24% copper, 12 g/t silver and 62 g/t germanium. The Inferred Mineral Resources are contained partly in the Big Zinc Zone and partly in the Southern Zinc Zone.
Copper-rich Measured and Indicated Mineral Resources contained in the adjacent Fault Zone, Fault Zone Splay and Série Récurrente Zone total an additional 2.29 million tonnes at grades of 4.03% copper, 2.85% zinc, 21 g/t silver and 19 g/t germanium, at a 1.5% copper cut-off – containing 144 million pounds of copper. Copper-rich Inferred Mineral Resources in these zones total an additional 0.44 million tonnes at grades of 3.89% copper, 10.77% zinc, 19 g/t silver and 55 g/t germanium.
The new Mineral Resource estimate incorporates Ivanhoe’s second phase of underground drilling at Kipushi that was completed in 2017.
Pre-feasibility study for Kipushi completed in December 2017; definitive feasibility study underway
The Kipushi Project’s PFS, announced by Ivanhoe Mines on December 13, 2017, anticipated annual production of an average of 381,000 tonnes of zinc concentrate over an 11-year, initial mine life at a total cash cost of approximately $0.48 per pound of zinc.
Highlights of the PFS, based on a long-term zinc price of $1.10 per pound, include:
After-tax net present value (NPV) at an 8% real discount rate of $683 million.
After-tax real internal rate of return (IRR) of 35.3%.
After-tax project payback period of 2.2 years.
Pre-production capital costs, including contingency, estimated at $337 million.
Existing surface and underground infrastructure allows for significantly lower capital costs than comparable greenfield development projects.
Life-of-mine average planned zinc concentrate production of 381,000 dry tonnes per annum, with a concentrate grade of 59% zinc, is expected to rank Kipushi, once in production, among the world’s largest zinc mines.
Estimated life-of-mine average cash cost of $0.48 per pound of zinc is expected to rank Kipushi, once in production, in the bottom quartile of the cash-cost curve for zinc producers internationally.
The planned primary mining method for the Big Zinc Deposit in the PFS is sublevel, long-hole, open stoping, with cemented backfill. The crown pillars are expected to be mined once adjacent stopes are backfilled using a pillar-retreat mining method. The Big Zinc Deposit is expected to be accessed via the existing decline and without any significant new development. The main levels are planned to be at 60-metre vertical intervals, with sublevels at 30-metre intervals.
Geology and exploration
Work is focused on additional information required for the ongoing feasibility study as well as planning the geological delineation drilling for the underground mine development. The design criteria targeted areas along the edge of the Big Zinc, which presently are inaccessible from the historic workings.
Figure 3: BukasaLengesha, a boilermaker at Kipushi, inspecting the recently installed ore-loading flask at the bottom of Shaft 5.
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Significant progress has been made in modernizing the Kipushi Mine’s underground infrastructure as part of preparations for the mine to resume commercial production. In Q3 2018, the Kipushi Project successfully completed initial, pre-production testing as part of the equipment commissioning process for the new, large-capacity rock crusher that has been installed 1,150 metres below surface. The Sandvik jaw crusher has a maximum capacity of 1,085 tonnes an hour. The 54-tonne machine was re-assembled and installed in the crusher chamber after it was disassembled on surface and its pieces were lowered down Shaft 5, which is the Kipushi Mine’s main production shaft.
Ivanhoe completed the upgrading of a significant amount of underground infrastructure at the Kipushi Project, including a series of vertical mine shafts to various depths, with associated head frames, as well as underground mine excavations. A series of crosscuts and ventilation infrastructure still are in working condition. The underground infrastructure also includes a series of pumps to manage the influx of water into the mine.
Figure 4: Kipushi’s new primary rock crusher at the mine’s 1,150-metre level. The crusher was successfully cold-commissioned in September.
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Shaft 5 is eight metres in diameter and 1,240 metres deep. It now has been upgraded and re-commissioned. The main personnel and material winder has been upgraded and modernized to meet international industry standards and safety criteria. The Shaft 5 rock-hoisting winder now is fully operational, with new head- and tail-ropes also installed. The two newly manufactured rock conveyances (skips) and the supporting frames (bridles) have been installed in the shaft to facilitate the hoisting of rock from the main ore and waste storage silos feeding rock on the 1,200-metre level.
The main haulage way on the 1,150-metre level between the Big Zinc access decline and Shaft 5 rock load-out facilities has been resurfaced with concrete so the mine now can use modern, trackless, mobile machinery.
With the underground upgrading program nearing completion, the project’s focus now will shift to modernizing and upgrading Kipushi’s surface infrastructure to handle and process Kipushi’s high-grade zinc and copper resources.
3. Kamoa-KakulaCopper Project 39.6%-owned by Ivanhoe Mines Democratic Republic of Congo
The Kamoa-Kakula Copper Project, a joint venture between Ivanhoe Mines and Zijin Mining, has been independently ranked as the largest copper discovery ever made on the African continent – with adjacent prospective exploration areas within the Central African Copperbelt in the Democratic Republic of Congo. The project is approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi.
Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining in December 2015 for an aggregate consideration of $412 million. At the time, Kamoa Holding held a 95% interest in the Kamoa Project. In addition, Ivanhoe sold a 1% share interest in Kamoa Holding to privately-owned Crystal River Global Limited (Crystal River) for $8.32 million – which Crystal River will pay through a non-interest-bearing, 10-year promissory note. Since the conclusion of the Zijin transaction in December 2015, each shareholder has been required to fund expenditures at the Kamoa-Kakula Project in an amount equivalent to its proportionate shareholding interest in Kamoa Holding.
A 5%, non-dilutable interest in the Kamoa-Kakula Project was transferred to the DRC government on September 11, 2012, for no consideration, pursuant to the 2002 DRC mining code. Following the signing of an agreement with the DRC government in November 2016, in which an additional 15% interest in the Kamoa-Kakula Project was transferred to the DRC government, Ivanhoe and Zijin Mining now each hold an indirect, 39.6% interest in the Kamoa-Kakula Project, Crystal River holds an indirect 0.8% interest and the DRC government holds a direct 20% interest. Kamoa Holding holds an 80% interest in the project.
Health and safety at Kamoa-Kakula
At the end of Q3 2018, the Kamoa-Kakula Project had achieved a total of 11,271,678 work hours free of lost-time injuries. It has been approximately seven years since the last lost-time injury occurred at the project. This outstanding achievement reflects the dedication and safety-focused culture of the entire Kamoa-Kakula exploration and development teams.
Kamoa-Kakula Mineral Resources
Ivanhoe issued an updated Mineral Resource estimate for the Kamoa-Kakula Project on February 26, 2018. It included an updated Kakula Mineral Resource estimate and was prepared by Ivanhoe Mines under the direction of Amec Foster Wheeler E&C Services Inc., of Reno, USA, in accordance with the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves. The Qualified Persons for the Kamoa-Kakula Mineral Resource estimate are Dr. Harry Parker, RM, SME, and Gordon Seibel, RM, SME, both of Amec Foster Wheeler E&C Services Inc.
Indicated Mineral Resources for the combined Kamoa-Kakula Project now total 1,340 million tonnes grading 2.72% copper, containing 80.7 billion pounds of copper at a 1.0% copper cut-off grade and a minimum thickness of three metres. Kamoa-Kakula also has Inferred Mineral Resources of 315 million tonnes grading 1.87% copper and containing 13.0 billion pounds of copper, also at a 1.0% copper cut-off grade and a minimum thickness of three metres.
The Kakula estimate covers a mineralized strike length of 13.3 kilometres and is based on results from approximately 151,000 metres of drilling in 271 holes completed by December 31, 2017. Indicated Mineral Resources total 585 million tonnes at a grade of 2.92% copper, containing 37.7 billion pounds of copper at a 1% copper cut-off. At a 2% copper cut-off, Indicated Mineral Resources total 330 million tonnes at a 4.07% copper grade, containing 29.6 billion pounds of copper. At a 3% copper cut-off, Indicated Mineral Resources total 174 million tonnes at a grade of 5.62% copper, containing 21.5 billion pounds of copper.
Inferred Mineral Resources total 113 million tonnes at a grade of 1.90% copper, containing 4.7 billion pounds of copper at a 1% copper cut-off. At a 2% copper cut-off, Inferred Mineral Resources total 44 million tonnes at a 2.59% copper grade, containing 2.5 billion pounds of copper. At a 3% copper cut-off, Inferred Mineral Resources total nine million tonnes at a grade of 3.66% copper, containing 0.7 billion pounds of copper.
The average true thickness of the selective mineralized zone (SMZ) at a 1% copper cut-off is 10.1 metres in the Indicated Mineral Resources area and 6.7 metres in the Inferred Mineral Resources area. At a higher 3% copper cut-off, the average true thickness of the SMZ is 4.7 metres in the Indicated Mineral Resources area and 3.3 metres in the Inferred Mineral Resources area.
The Kakula Mineral Resources are defined within a total area of 24.9 square kilometres at a 1% copper cut-off. At the same cut-off grade, the areal extent of Indicated Mineral Resources is 19.4 square kilometres and the areal extent of the Inferred Mineral Resources is 5.5 square kilometres. The Kakula Discovery remains open for significant expansion in multiple directions, while the remainder of the southern parts of the Kamoa-Kakula mining-licence area is virtually untested.
KakulaPFS currently underway
A PFS for phase 1 of the Kamoa-Kakula Project is underway. The study is considering a six-Mtpa mine and concentrator at Kakula, and is expected to be completed early in 2019.
Underground development progressing at the Kakula Deposit
Each of the twin declines at Kakula had been advanced more than 1,000 metres from the portal face toward the mineralized zone at the end of Q3 2018. Construction of the 1,050-metre-level dam has started and is planned to be commissioned by mid-2019. The next priority will be the drifts to the development tip and bottom of Ventilation Shaft 1, which will be developed via raise boring. The 3,535-metre decline development contract is scheduled to be completed by the end of 2018.
The detailed design and tenders for the conveyor system for the main decline, the development tip and west tip one are well advanced. The earthworks design for the surface conveyor drive station has been completed and construction is due to start shortly. All tenders for major conveyor components, including steelwork, drives, belting and pulleys, have been received and are being adjudicated. Tenders for the rock breaker and apron feeders have been adjudicated. Adjudication for the steelwork fabrication has been completed and the order will be placed shortly. Commissioning of the conveyor system is planned to be completed by September 2019.
Contract discussions have been concluded for construction of Ventilation Shaft 1 by raise boring. Bottom access to the shaft is expected via the Kakula declines by January 2019 and reaming of the shaft is expected to start in February 2019.
Exploration activities continue at Kakula and Kamoa North
Exploration drilling during Q3 2018 was split between Kakula and Kamoa North, with 25,298 metres drilled during the quarter in 66 holes. A total of 21 holes were completed in Kamoa North.
Drilling at Kamoa North focused on continued testing of previously identified, shallow, high-grade trends that were not fully evaluated in the 2017 program. The results of this program are due to be released when the final assays are returned. Exploration has continued at Kakula, with known mineralization remaining open and unconstrained to the north of Kakula West.
Regional geophysical surveys
The seismic survey to complete the final part of seismic transects toward the northern part of the area was completed early in Q3 2018. Vertical seismic profiles (VSPs), were completed down a number of boreholes during the quarter. VSPs are used to calibrate the seismic survey and facilitate a more accurate conversion of travel time of the seismic signal to depth below surface.
Ongoing upgrading work enables Mwadingusha power station to supply 32 megawatts of clean electricity to national grid
In January 2018, Ivanhoe announced that ongoing upgrading work at the Mwadingusha hydropower plant in the DRC had almost tripled the plant’s interim power output from 11 to 32 megawatts (MW). This represents 45% of the plant’s designed capacity. Three of Mwadingusha’s six generators now have been modernized. The remaining three generators are due to be upgraded and fully operational by the end of 2019 – restoring the plant to its installed output capacity of approximately 71 MW of power.
The work at Mwadingusha, part of a program to eventually overhaul and boost output from three hydropower plants, is being conducted by engineering firm Stucky, of Lausanne, Switzerland, under the direction of Ivanhoe Mines and its joint-venture partner, Zijin Mining, in conjunction with the DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL). Once fully reconditioned, the three plants will have a combined installed capacity of approximately 200 MW of electricity for the national grid, which is expected to be more than sufficient for the Kamoa-Kakula Project.
The Kansoko Mine, Kakula Mine and Kamoa camp have been connected to the national hydroelectric power grid since the completion of a 12-kilometre, 120-kilovolt, dual-circuit power line between Kansoko and Kakula last December. The design of permanent, 11-kilovolt reticulation to the vent shafts and mine has started, which includes substations, overhead lines and surface cables.
Figure 5: Engineers inspecting pipes (penstocks) feeding water to turbines driving generators inside the Mwadingusha hydroelectric power plant
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The Kamoa-Kakula Sustainable Livelihoods program is committed to sustainable development in the communities within the project’s footprint.
The main objective of the livelihoods program is to enhance food security and the living standards of the people who reside within the project’s footprint. The program is mainly implemented through fish farming and food crops, including farming of maize (corn) and vegetables, plus poultry production and beekeeping.
Additional, non-farming-related activities for Q3 2018 included education and literacy programs; the completion of a new school at the Muvunda village; a community water program; the continuation of the brick-making program; the creation of unskilled job opportunities; and the completion of the Kakula mine resettlement project.
Figure 6: Fabrice Mazeze with fresh tomatoes produced in the livelihoods vegetable garden.
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Figure 7: Community adult literacy program at Kamoa-Kakula, sponsored by Kamoa Copper and Ivanhoe Mines and implemented in partnership with Alfa Congo, a non-profit, non-governmental organization based in Kinshasa.
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4. Western Foreland Exploration Project 100%-owned by Ivanhoe Mines Democratic Republic of Congo
Exploration continuing on Ivanhoe’s 100%-owned Western Foreland exploration licences west of Kamoa-Kakula
Ivanhoe’s DRC exploration group is targeting Kamoa-Kakula-style copper mineralization through a regional drilling program on its 100%-owned Western Foreland exploration licences, located to the north and west of the Kamoa-Kakula Project.
During Q3 2018, the team commissioned two extra rigs for its dry-season exploration drilling campaign. Three rigs began drilling north and west of Kamoa at the Kamilli, Mbali and Kiala targets, with one remaining at Makoko. A total of 8,895 metres in 17 diamond drill holes were completed during the quarter.
Four holes have been completed at Kiala and a further eight at Kamilli and Mbali. Detailed geological interpretation and assay results are pending. Drilling continued at Makoko throughout the quarter; 11 holes were completed.
Figure 8: HéritierTshiminyiKatembo, a driller with Ivanhoe’s contractor, Titan Drilling, examinesa piece of drill core from the Makoko area on Ivanhoe’s 100%-owned Western Foreland exploration licences.
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On October 1, 2018, Ivanhoe announced the Makoko Copper Discovery on its 100%-owned Western Foreland Exploration licences, near Kamoa-Kakula in the DRC. The Makoko Discovery is Ivanhoe’s third major copper discovery in the DRC and shows characteristics identical to Ivanhoe’s tier-one Kamoa-Kakula Discoveries.
Selected drill holes at the Makoko Discovery include:
DD004 (the Makoko discovery hole) intersected 3.94 metres (true width) of 5.46% copper, at a 2.0% copper cut-off, and 3.94 metres (true width) of 5.46% copper at a 1.0% copper cut-off, from a downhole depth of 306 metres.
DD010 intersected 3.21 metres (true width) of 6.78% copper, at a 2.0% copper cut-off, and 3.95 metres (true width) of 5.81% copper at a 1.0% copper cut-off, from a downhole depth of 441 metres.
DD017 intersected 3.19 metres (true width) of 6.49% copper at a 2.0% copper cut-off, and 4.64 metres (true width) of 4.88% copper, at a 1.0% copper cut-off, from a downhole depth of 471.7 metres.
DD025 intersected 3.00 metres (true width) of 7.61% copper at a 2.0% copper cut-off, and 3.00 metres (true width) of 7.61% copper, at a 1.0% copper cut-off, from a downhole depth of 406 metres.
DD046 intersected 7.44 metres (true width) of 7.81% copper at a 2.0% copper cut-off, and 9.39 metres (true width) of 6.51% copper, at a 1.0% copper cut-off, from a downhole depth of 523.51 metres.
The initial discovery hole at Makoko, DD004, was drilled in September 2017; follow-up and infill drilling has been ongoing since then. Drilling to date at Makoko has defined a flat-lying, near-surface stratiform copper deposit, similar to the Kamoa and Kakula deposits. The structure contour map indicates that the mineralized formation in the Makoko area is within 1,000 metres of surface. The majority of the drilling to date at Makoko has intersected the copper-rich zone between 400 metres and 800 metres below surface. The mineralized zone at Makoko strikes approximately south-southeast. It has been tested over a strike length of 4.5 kilometres and a dip extent of between one and two kilometres. Copper mineralization remains open both along strike and down dip.
Figure 9: Drilling locations at Ivanhoe’s Makoko Discovery.
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The Grand Conglomerate unit (coarse-grained clastic sedimentary rock), the base of which hosts copper mineralization in the Western Foreland area, underlies the majority of the area covered by Ivanhoe’s exploration licences, with the base of the unit interpreted to be generally within 600 metres of surface.
At the nearby Kakula Discovery, the highest copper grades are associated with a siltstone-sandstone unit occurring within the Grand Conglomerate, located approximately one metre above the top of the Mwashia sandstone unit. Mineralization at Kakula consistently is bottom loaded, with grades increasing down-hole toward the contact between the host Grand Conglomerate and the underlying sandstone unit.
Copper mineralization at the Makoko Discovery similarly is located at the base of the Grand Conglomerate, just above the contact with the underlying Roan footwall rocks. This location is consistent with copper mineralization seen in earlier drilling into the Kakula Discovery and elsewhere in the Western Foreland area.
High-grade copper intersections at Makoko are associated with a rhythmically-banded, fine-grained siltstone-sandstone unit similar to the siltstone-hosted mineralization at Kakula, although at Makoko the host package of rocks also includes zones of reworked diamictite. The siltstone-rich zones appear to have been controlled by the underlying basin architecture at the time of deposition.
Sulphide copper mineralization generally is fine-grained and shows typical downward vertical zonation of chalcopyrite to bornite to chalcocite, similar to Kakula. The dominant copper sulphide mineral at Makoko tends to be bornite.
Selected quarterly financial information
The following table summarizes selected financial information for the prior eight quarters. Ivanhoe had no operating revenue in any financial reporting period and did not declare or pay any dividend or distribution in any financial reporting period.
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Review of the three months ended September 30, 2018, vs. September 30, 2017
The company recorded a total comprehensive loss of $7.9 million for Q3 2018 compared to a total comprehensive loss of $21.2 million for the same period in 2017. Exploration and project expenditure for Q3 2018 amounted to $2.4 million and was $9.2 million less than for the same period in 2017 ($11.6 million). The decrease in exploration and project expenditure was the main reason for the decrease in the total comprehensive loss and is attributable to the capitalization of costs incurred at the Kipushi Project subsequent to the finalization of its PFS in December 2017.
With the focus at the Kipushi and Platreef projects being on development and the Kamoa-Kakula Project being accounted for as a joint venture, the total $2.4 million exploration and project expenditure in the three months ended September 30, 2018, related to exploration at Ivanhoe’s 100%-owned Western Foreland exploration licences. In Q3 2017, $10.8 million of the total $11.6 million exploration and project expenditure related to the Kipushi Project.
The company’s share of losses from the Kamoa Holding joint venture increased from $6.8 million in Q3 2017 to $7.8 million in Q3 2018. The following table summarizes the company’s share of the comprehensive loss from Kamoa Holding for the three months ended September 30, 2018, and for the same period in 2017:
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The costs associated with mine development are capitalized as development costs in Kamoa Holding, while the exploration expenditure is expensed. Capitalization of costs at Kakula commenced during Q2 2017, coinciding with the start of the Kakula box cut. Expenditure attributable to exploration at Kamoa North, Kakula West and in the saddle area between Kakula West and Kakula still is expensed.
The interest expense in the Kamoa Holding joint venture relates to shareholder loans where each shareholder is required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The company is advancing Crystal River’s portion on its behalf in return for an increase in the promissory note due to Ivanhoe.
Finance income for the three months ended September 30, 2018, amounted to $12.1 million, and was $4.1 million more than for the same period in 2017 ($8.0 million). The increase mainly was due to interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $10.4 million in 2018, and increased by $3.3 million as the accumulated loan balance increased.
Review of the ninemonths ended September 30, 2018, vs. September 30, 2017
The company’s total comprehensive loss of $42.0 million for the nine months ended September 30, 2018, was $4.5 million higher than for the same period in 2017 ($37.5 million). The increased loss mainly was due to an exchange loss on translation of foreign operations of $23.9 million for the nine months ended September 30, 2018, resulting from the weakening of the South African Rand by 14% from December 31, 2017, to September 30, 2018, compared to an exchange gain on translation of foreign operations recognized in the same period of 2017 of $1.4 million.
Exploration and project expenditure for the nine months ended September 30, 2018, amounted to $6.6 million and was $22.9 million less than for the same period in 2017 ($29.5 million). Exploration and project expenditure for the nine months ended September 30, 2018, related to Ivanhoe’s 100%-owned Western Foreland exploration licences, while $28.4 million for the same period in 2017 related to the Kipushi Project.
Finance income for the nine months ended September 30, 2018, amounted to $33.4 million, and was $9.8 million more than for the same period in 2017 ($23.6 million). The increase mainly was due to interest earned on loans to the Kamoa Holding joint venture to fund operations that amounted to $28.7 million in 2018, and increased by $9.4 million as the accumulated loan balance increased.
The company’s share of losses from the Kamoa Holding joint venture increased to $21.7 million for the nine months ended September 30, 2018, from $17.3 million for the same period in 2017. The following table summarizes the company’s share of the comprehensive loss of Kamoa Holding for the nine months ended September 30, 2018, and for the same period in 2017:
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Financial positionas atSeptember 30, 2018 vs. December31, 2017
The company’s total assets increased by $576.4 million, from $1,271.3 million as at December 31, 2017, to $1,847.7 million as at September 30, 2018. The increase mainly was due to the proceeds received on completion of the equity investment by CITIC Metal Africa Investments Limited (CITIC Metal Africa) and Zijin exercising its anti-dilution rights, for gross proceeds of $555 million and $60 million respectively.
Cash and cash equivalents and short-term deposits increased by $358.1 million and $116.2 million respectively. The company utilized $8.3 million of its cash resources in its operations, which includes interest of $2.9 million received during the nine months ended September 30, 2018.
The company’s investment in the Kamoa Holding joint venture increased by $44.5 million from $552.4 million as at December 31, 2017, to $596.9 million as at September 30, 2018, with each of the current shareholders funding the operations equivalent to their proportionate shareholding interest. The company’s portion of the Kamoa Holding joint venture cash calls amounted to $37.4 million during the nine months ended September 30, 2018, while the company’s share of comprehensive loss from the joint venture amounted to $21.7 million.
The net increase of property, plant and equipment amounted to $64.1 million, with a total of $92.4 million being spent on project development and to acquire other property, plant and equipment. Of this total, $40.6 million and $50.9 million pertained to development costs and other acquisitions of property, plant and equipment at the Platreef Project and Kipushi Project respectively.
The main components of the additions to property, plant and equipment at the Platreef and Kipushi projects for the nine months ended September 30, 2018, and for the same period in 2017, are set out in the following table:
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The company’s total liabilities increased by $1.3 million to $61.1 million as at September 30, 2018, from $59.8 million as at December 31, 2017.
Liquidity and capital resources
The company had $539.5 million in cash and cash equivalents and $116.2 million in short-term deposits as at September 30, 2018. At this date, the company had consolidated working capital of approximately $646.7 million, compared to $181.9 million at December 31, 2017.
On September 19, 2018, Ivanhoe announced the completion of a major strategic equity investment totalling C$723 million ($555 million) in Ivanhoe Mines by CITIC Metal Africa, a direct subsidiary of CITIC Metal Co., Ltd. (CITIC Metal), one of China’s leading international resources companies. Ivanhoe Mines issued 196,602,037 common shares to CITIC Metal Africa through a private placement at a price of C$3.68 per share. Zijin exercised its anti-dilution rights, generating additional proceeds for Ivanhoe of C$78 million ($60 million). The exercise by Zijin of its anti-dilution rights also was at a price of C$3.68 per share.
The Platreef Project’s restricted cash, which were funds of $290 million invested by the Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation and Japan Gas Corporation, has been fully utilized and the project’s current expenditure is being funded solely by Ivanhoe as the Japanese consortium has elected not to contribute to current expenditures. Since the Platreef Project’s restricted cash was fully utilized, the company has contributed a total of $10.0 million on behalf of the Japanese consortium.
Since December 8, 2015, each shareholder in Kamoa Holding has been required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The company is advancing Crystal River’s portion on its behalf in return for an increase in the promissory note due to Ivanhoe.
The company’s main objectives for 2018 at the Platreef Project are the continuation of Shaft 1 construction, securing a bulk-water supply and completion of early-works construction of Shaft 2. At Kipushi, the principal objectives are the completion of the feasibility study and continued upgrading of mining infrastructure. At the Kamoa-Kakula Project, priorities are the continuation of decline construction at Kakula and the completion of a PFS for Kakula. The company has budgeted to spend $13 million on further development at the Platreef Project; $25 million at the Kipushi Project; $3 million on regional exploration in the DRC; and $5 million on corporate overheads for Q4 2018 – as well as its proportionate funding of the Kamoa-Kakula Project, expected to be $32 million for Q4 2018.
The company has a mortgage bond outstanding on its offices in London, United Kingdom, of £3.2 million ($4.2 million). The bond is fully repayable on August 31, 2020, secured by the property and incurs interest at a rate of LIBOR plus 1.9% payable monthly in arrears. Only interest will be payable until maturity.
In 2013, the company became party to a loan payable to ITC Platinum Development Limited, which had a carrying value of $26.6 million as at September 30, 2018, and a contractual amount due of $32.2 million. The loan is repayable once the Platreef Project has residual cashflow, which is defined in the loan agreement as gross revenue generated by the Platreef Project, less all operating costs attributable thereto, including all mining development and operating costs. The loan attracts interest of LIBOR plus 2% calculated monthly in arrears. Interest is not capitalized. The difference of $5.6 million between the contractual amount due and the fair value of the loan is the benefit derived from the low-interest loan.
This news release should be read in conjunction with Ivanhoe Mines’ Q3 2018 Financial Statements and Management’s Discussion and Analysis report available at www.ivanhoemines.com and at www.sedar.com.
Qualified Person
Disclosures of a scientific or technical nature in this news release have been reviewed and approved by Stephen Torr, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Torr is not considered independent under NI 43-101 as he is Ivanhoe Mines’ Vice President, Project Geology and Evaluation. Mr. Torr has verified the technical data disclosed in this news release.
Ivanhoe has prepared a current, independent, NI 43-101-compliant technical report for the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project, which are available under the company’s SEDAR profile at www.sedar.com:
The Kamoa-Kakula 2018 Resource Update dated March 23, 2018, prepared by OreWin, Amec Foster Wheeler, MDM (Technical) Africa, Stantec Consulting International and SRK Consulting (South Africa), covering the company’s Kamoa-Kakula Project.
The Platreef 2017 Feasibility Study Technical Report dated September 4, 2017, prepared by DRA Global, OreWin, Amec Foster Wheeler, Stantec Consulting, Murray & Roberts Cementation, SRK Consulting, Golder Associates and Digby Wells Environmental, covering the company’s Platreef Project.
The Kipushi 2017 Prefeasibility Study Technical Report dated January 25, 2018, prepared by OreWin, The MSA Group, SRK Consulting (South Africa) and MDM (Technical) Africa, covering the company’s Kipushi Project.
These technical reports include relevant information regarding the effective dates and the assumptions, parameters and methods of the mineral resource estimates on the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release in respect of the Platreef Project, Kipushi Project and Kamoa-Kakula Project.
Information contacts
Investors
Bill Trenaman +1.604.331.9834
Media
North America: Bob Williamson +1.604.512.4856 South Africa: Jeremy Michaels +27.82.772.1122
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results and speak only as of the date of this release.
Such statements include without limitation, the timing and results of: (i) statements regarding Shaft 1 providing initial underground access to the high-grade orebody at the Flatreef Deposit; (ii) statements regarding Shaft 1 reaching the planned, final depth at 982 metres below surface in early 2020; (iii) statements regarding the timing of Shaft 2 development, including that excavation of the box cut and construction of the tower hitch foundation are expected to be completed by early 2019 and that Shaft 2 will be sunk to a final depth of more than 1,104 metres; (iv) statements regarding the operational and technical capacity of Shaft 1; (v) statements regarding the internal diameter and hoisting capacity of Shaft 2; (vi) statements regarding the company’s plans to develop the Platreef Mine in three phases: an initial annual rate of four million tonnes per annum (Mtpa) to establish an operating platform to support future expansions; followed by a doubling of production to eight Mtpa; and then a third expansion phase to a steady-state 12 Mtpa; (vii) statements regarding the planned underground mining methods of the Platreef Project, including long-hole stoping and drift-and-fill mining; (viii) statements regarding supply of treated water from the town of Mokopane’s new Masodi treatment plant, including that it will supply five million litres of treated water a day for 32 years; (ix) statements regarding the timing and completion of a pre-feasibility study for a six Mtpa mine and concentrator at Kakula early in 2019; (x) statements regarding the timing, size and objectives of drilling and other exploration programs for 2018 and future periods; (xi) statements regarding exploration on the Western Foreland exploration licences; (xii) statements regarding completion of the twin declines at Kakula by the end of 2018; (xiii) statements regarding the timing and completion of a definitive feasibility study at the Kipushi Project; (xiv) statements regarding expected expenditure of $13 million on further development at the Platreef Project; $25 million at the Kipushi Project; $3 million on regional exploration in the DRC; and $5 million on corporate overheads for Q4 2018 – as well as its proportionate funding of the Kamoa-Kakula Project, expected to be $32 million for Q4 2018; (xv) statements regarding Platreef projecting it to be Africa’s lowest-cost producer of platinum-group metals; and (xvi) statements regarding the construction of a 1,050-metre-level-dam at the Kakula deposit to be commissioned in mid-2019.
As well, all of the results of the pre-feasibility study of the Kamoa-Kakula Project and preliminary economic assessment of development options for the Kakula deposit, the feasibility study of the Platreef Project and the pre-feasibility study of the Kipushi Project, constitute forward-looking statements or information, and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine-life estimates, cash-flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects. Furthermore, with respect to this specific forward-looking information concerning the development of the Kamoa-Kakula, Platreef and Kipushi projects, the company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper, nickel, zinc, platinum, palladium, rhodium and gold; (vi) the availability of equipment and facilities necessary to complete development; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint-venture partners with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies; and (xv) political factors.
This release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Estimates of Mineral Reserves provide more certainty but still involve similar subjective judgments. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the company’s projects, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource or Mineral Reserve estimates may have to be re-estimated based on: (i) fluctuations in copper, nickel, zinc, platinum group elements (PGE), gold or other mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates and/or changes in mine plans; (vi) the possible failure to receive required permits, approvals and licences; and (vii) changes in law or regulation.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed below and under the “Risk Factors” section and elsewhere in the company’s Q3 2018 Financial Statements and Management’s Discussion and Analysis, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.
The company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth in the “Risk Factors” section and elsewhere in the company’s Q3 2018 Financial Statements and Management’s Discussion and Analysis.
VANCOUVER, BC / ACCESSWIRE / November 7, 2018 / Sandstorm Gold Ltd. (“Sandstorm Gold Royalties” or “Sandstorm”) (NYSE American: SAND) (SSL.TO) will release its 2018 third quarter results on Wednesday, November 14, 2018 after markets close.
A conference call will be held on Thursday, November 15, 2018 starting at 8:30am PDT to further discuss the third quarter results. To participate in the conference call, use the following dial-in numbers and conference ID, or join the webcast using the link below:
Local/International: (+1) 201 389 0899 North American Toll-Free: (+1) 877 407 0312 Conference ID: 13684537 Webcast URL https://bit.ly/2RHxZN4 ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine. Sandstorm has acquired a portfolio of 188 royalties, of which 20 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold royalties.
VANCOUVER, British Columbia (AP) _ NexGen Energy Ltd. (NXE) on Tuesday reported a loss of $14.7 million in its third quarter.
The Vancouver, British Columbia-based company said it had a loss of 5 cents per share.
The company’s shares closed at $2.34. A year ago, they were trading at $1.96.
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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on NXE at https://www.zacks.com/ap/NXE
Vancouver, British Columbia–(Newsfile Corp. – November 5, 2018) – Pacific Empire Minerals Corp. (TSXV: PEMC) (OTCQB: PEMSF) (“Pacific Empire”, “PEMC” or the “Company”), a hybrid prospect generator focused in British Columbia, is pleased to announce that it has received approval to begin trading its common shares on the OTC Markets Group’s OTCQB Venture Market in the United States under the symbol “PEMSF”. Pacific Empire’s common shares will begin trading on the OTCQB Marketplace on November 6, 2018 and will continue to trade on the TSX Venture Exchange.
The OTCQB is recognized as an established public financial market for international companies, including natural resource companies in the exploration industry, to trade in the U.S. The OTCQB Venture Market offers companies the opportunity to build their visibility, expand their liquidity and diversify their shareholder base on an established, public market. The OTCQB offers transparent trading in early stage, exploration companies and provides annual verification and certification of management to investors thereby improving their level of information and trading experience.
Brad Peters, Pacific Empire’s President and CEO, stated, “We are pleased to be listed on the OTCQB, as this provides an opportunity to attract a broader base of international investors. Trading on the OTCQB will expand the company’s presence to new and existing shareholders in the United States with a transparent trading platform. Admission to the OTCQB exchange is part of our strategy to introduce the company to a wide range of institutional and retail investors in the United States.
About Pacific Empire Minerals Corp.
PEMC is an exploration company based in Vancouver, British Columbia, that employs a “hybrid prospect generator” business model. By integrating the project generator business model with low-cost reverse circulation drilling, the company is able to leverage its portfolio by identifying, and focusing on, the highest quality projects for partnerships and advancement.
ON BEHALF OF THE BOARD,
“Brad Peters“ President and Chief Executive Officer
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.
Forward-Looking Statements
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TORONTO, Nov. 05, 2018 (GLOBE NEWSWIRE) — Sprott Inc. (SII.TO) will host a conference call on Monday, November 12, 2018 at 10:00 a.m. ET to discuss its 2018 third quarter results. Peter Grosskopf, CEO of Sprott will host the call with Kevin Hibbert, CFO of Sprott. The Company plans to release its financial results at 7:00 a.m. ET the same day.
Conference Call Details To participate in the call, please dial (855) 458-4215 ten minutes prior to the scheduled start of the call and provide conference ID1985987. A taped replay of the conference call will be available until Monday, November 19, 2018 by calling (855) 859-2056, reference number 1985987. The conference call will be webcast live at www.sprott.com and https://edge.media-server.com/m6/p/35ysaejp
About Sprott Inc. Sprott is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the US and Asia, the Corporation is dedicated to providing investors with best-in-class investment strategies that include Exchange Listed Products, Alternative Asset Management and Private Resource Investments. The Corporation also operates Merchant Banking and Brokerage businesses in both Canada and the US. Sprott is based in Toronto with offices in New York, Carlsbad and Vancouver and its common shares are listed on the Toronto Stock Exchange under the symbol (SII.TO). For more information, please visit www.sprott.com
Investor contact information: (416) 943-4394 or ir@sprott.com.
Michael Rowley, president and CEO of Group Ten Metals sits down with Maurice Jackson of Proven and Probable to discuss his companies exploration for platinum, palladium, nickel, copper and cobalt in the Stillwater area of Montana. This is part 2 of a 3 part series introduction into the value proposition of the Metallic Group of Companies. Important Note: Enclosed is a Financing Opportunity of Accredited Investors.
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Original Source: https://www.streetwisereports.com/article/2018/11/02/on-the-search-for-platinum-group-metals-in-montana.html Maurice Jackson: Welcome to Proven & Probable. I’m your host, Maurice Jackson. Joining us today is Michael Rowley, president and CEO of Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTCQB), which is known for platinum, palladium, nickel, copper and cobalt in the Stillwater district in Montana. This interview is the second of a three-part series introducing the value proposition for the Metallic Group of Companies comprising Metallic Minerals, Group Ten Metals and Granite Creek Copper. These are three separate leading exploration companies, each with a different metal of focus, but with a common approach to business under the proven management of the Metallic Group. Earlier we interviewed Greg Johnson to talk about Metallic Minerals and its exciting high-grade silver projects in the Yukon. Today we turn our focus to a second company in the Metallic Group, Group Ten Metals, a leading explorer for platinum, palladium, nickel, copper and cobalt in the world-famous Stillwater district in Montana. Mr. Rowley, for someone new to the story who is Group Ten Metals, what is your flagship project, and what is the thesis you are attempting to prove? Michael Rowley: Group Ten is a leading explorer for platinum group metals—these include platinum, palladium and rhodium, along with nickel, copper and cobalt. Our flagship project is the Stillwater West project where we have consolidated a very large land position alongside Sibanye-Stillwater’s three producing mines in the heart of the Stillwater Igneous Complex in Montana. It’s one of the world’s premier platinum and palladium producers and is one of the only platinum group metal producing mines outside of South Africa or Russia. Geologically, Stillwater is a large, layered, mineral-rich magmatic system, very similar to the Bushveld complex in South Africa, which hosts over 75% of the world’s platinum, as well as enormous quantities of copper, nickel, gold and other metals. We see the potential for large-scale disseminated and high-sulphide PGE-nickel-copper type deposits similar to the multi-100-million-ounce deposits in the Platreef district of the northern limb of the Bushveld Complex, and we are the first to apply the new geological models from the Platreef district to the Stillwater district, despite these well-known similarities. In addition to bringing the land position together with a wealth of data, we have also assembled a truly world-class team, to which we recently added one of the most celebrated Platreef geologists, Dr. David Broughton of Ivanhoe. Maurice Jackson: Please share where in Montana the Stillwater West Project is located, and provide us some historical context. Michael Rowley: The project is located in south-central Montana where we adjoin the three producing Stillwater mines, which were bought by Sibanye, a South African gold producer, in 2017 for $2.2 billion. The district is famous for the size and grade of its palladium-platinum mines, which are the highest grade in the world, and the largest outside of Africa and Russia with over 14 million ounces of past production, and over 80 million ounces of resources still in the ground. The PGMs occur along with nickel and copper sulphide, so these are also nickel and copper mines. Historically, the district, including our block of claims, was also mined for high-grade nickel, copper, chrome and other metals such as cobalt. The history at Stillwater parallels the developments at the Bushveld Complex in South Africa, so they share more than geology in that regard. Both districts were recognized over 100 years ago for their mineral riches, and both supported a number of mines for varying commodities. And, in both districts, the discovery of high-grade “reef-type” platinum group metal deposits in the 1970s produced large-scale operations that were the sole focus of exploration efforts until the 1990s when regulatory changes forced a release of mineral rights to other operators. In Montana, these changes were in the form of amended U.S. claim fees, while in South Africa it was the end of apartheid. In South Africa, the resulting exploration efforts lead to the development of Anglo American’s Mogalakwena Mines, a giant at over 265 Moz PGMs and a very profitable operation that is the largest open-pit platinum mine in the world. Adjacent to that, Ivanhoe is now building the Platreef mine on the same system with over 112 Moz platinum plus substantial nickel and copper values. We are the first operators to consolidate the lower Stillwater Complex under one owner, to recognize the similarities of the two systems, and to bring a focused exploration program for Platreef-type deposits to the Stillwater complex in Montana. Maurice Jackson: Group Ten is exploring for platinum, palladium, nickel, copper and cobalt in a world-class district; compare and contrast how your deposits compare to similar districts like South Africa’s Bushveld, and also your neighbors in Montana at Sibanye-Stillwater. Michael Rowley: The Bushveld and Stillwater complexes are both layered magmatic systems, which means that they were both created when enormous amounts of metal-rich magma cooled, forming these massive districts nearly 3 billion years ago. As a result, both districts have high-grade PGM-Ni-Cu deposits in the upper layers and they also have lower zones where magmas where allowed to mix, creating thick intervals of sulphide mineralization enriched in PGMs. At Bushveld, two basic types of mines have been developed for these two deposit types: narrow high-grade PGM mines on two reef-type deposits, and more recently bulk mining operations in the Platreef district such as Anglo’s Mogalakwena mines and Ivanhoe’s underground mechanized operation. At Stillwater the operating mines have focused on narrow, high-grade reef-style deposits. These are the highest grade in the industry, but no systematic effort has been undertaken to explore for and develop Platreef-style mineralization. Group Ten Metals is now exploring in the lower part of the complex for potential large-scale Platreef deposits in the Stillwater district, following the parallels of the same type of settings in South Africa that have produced the Platreef deposits. Maurice Jackson: Mr. Rowley, we’ve covered some good background on the Stillwater West Project, walk us through the project. Michael Rowley: Let’s begin with some of our claim holdings in the Stillwater district and some of the existing resources and operations there. As you can see on the Regional Claims Map, Group Ten’s Stillwater West land position, shown in yellow and orange, is a large 25-km-long claim block located directly adjacent to Sibanye’s three operating Stillwater mines (shown in grey). Proximity to the existing mines provides access to infrastructure such as roads from the west and from the northeast. Maurice Jackson: What can you share with us regarding the geology and the potential that we have at the Stillwater West project? Michael Rowley: This is a layered magmatic system, and layering is visible in the geologic map of the Stillwater Complex, as it shows the J-M reef deposit—this is the world’s highest-grade major PGE deposit at 16 g/t, and, at 80 Moz, the largest outside of South Africa and Russia. Looking at the cross-section of the Stillwater Complex shown on the District Geology figure, this layering is clearly visible. Layers of metal-rich magma were laid down at formation, and then the whole system was later tipped up 60 degrees, which is more amenable to both mining and exploration as mineralization starts right at surface. Like the Bushveld complex in South Africa, narrow reef deposits occur in the middle and upper layered portions of the igneous system, while the lower portion of the complex, shown here in orange, purple and light blue, are the basal layers where magma mixed with pre-existing rock, created large, disseminated and massive sulphide deposits such as those in the Platreef district in South Africa. Though it was previously recognized these areas had significant nickel and copper mineralization, this is the first time the potential for large PGM deposits with nickel and copper have been recognized, and the similarities to the large deposits in South Africa make this a very exciting exploration target for Group Ten. Maurice Jackson: What can you share with us regarding geophysics? Michael Rowley: A geophysical survey measuring the electrical conductivity of the rocks was conducted over the entire property. High metal contents in the rocks would make them highly conductive so this survey gives a very good indication of metal sulphide content of the mineralization that hosts the PGMs, copper and nickel. This type of geophysics is one of the main targeting tools used by companies exploring for metal sulphide deposits and maps the PGE-Ni-Cu targets, as shown in the top half of slide 8. The survey results indicate seven very large highly conductive targets across the lower part of the complex (highlighted by large blue ellipses as Platreef-type deposits), and five high-grade reef type targets (highlighted by red ellipses), above the lower part of the complex, where they would be expected. Surface and drill results confirm that these conductors are mineralized with PGMs, nickel and copper, and that a good relationship exists between conductivity and metal content. However, Group Ten will be the first company to systematically drill test these targets in the basal zone for these types of deposits. The strongest conductive targets have yet to be tested, so these are very exciting priority targets for us. Note that the main part of the property is over 20 km long, and that these individual targets are 3 to 6 kilometers in length each, large enough individually to contain a deposit the size of Ivanhoe’s or Anglo American’s Platreef deposits! Maurice Jackson: What do we know about the soil geochemistry? Michael Rowley: In addition to the geophysics, we have identified very high levels of metals in soils covering an 18-kilometer-long area with high levels of platinum, palladium, nickel and copper. These elevated metals in soils correlate well with the geophysical targets and the shape of the underlying geology. Group Ten’s work in 2018 was the first property-wide effort to target large-scale Platreef-type systems in the lower Stillwater Complex and to see this combination of large scale geochemical and geophysical targets is very rare. Maurice Jackson: Tell us a bit more about these geologic targets that you have identified. Michael Rowley: Below is a picture of some of the core from our property showing strong sulphide mineralization with PGE-Ni-Cu-Co values in the lower part of the Stillwater Complex. We have identified two primary target types: the high-grade “reef-type” type deposits that are being currently mined by Sibanye-Stillwater and the Platreef-type that Group Ten is targeting based on evidence in the data, and geologic parallels with the Bushveld in South Africa. Maurice Jackson: What do we know about the styles of mineralization in this kind of geologic environment? Michael Rowley: In terms of mineralization and mineralization type, slide 11 presents and compares reef type and Platreef-type targets. The Reef type deposits are presented in the brown color box and photos, and we’ve taken the Merensky and the J-M Reef as examples, one from Bushveld and one from Stillwater. Very high grade, very narrow thickness. On the right hand side of the slide are some good pictures showing what it’s like to operate in these mines. Merensky happens to be flat lying, and the mines are deep and expensive to operate. It is expected that many of these marginal Merensky mines will close due to their high costs, which should drive platinum prices in the coming years, with continued reduction of supply even as demand for platinum and palladium continue to grow. The lower picture on the right shows mining of the J-M Reef deposits at Stillwater, at a 60 degree angle that’s more amenable to mining. The key take-away from this slide is the scale of the Platreef-style deposits shown in the grey box in the lower left of the slide with the picture of Mogalakwena mine. The thicknesses that we see in the mineralization, and the contained metal in these deposits—these are very large and economically attractive bulk mining operations. It’s worth noting that Anglo American’s Platreef Mogalakwena Mines are the largest and most profitable platinum mines in the world. Ivanhoe’s adjoining Platreef Mine is going to be a very high-tech underground bulk mining operation that looks similarly very economically attractive, and that’s potential that we see at Stillwater West. Maurice Jackson: The Stillwater West is considered a large brownfields exploration property; how is this important in terms of the potential for exploration discovery and development? Michael Rowley: Brownfields is a term for a property that is in an area that has had past discoveries and/or production. So this in contrast to a greenfields property, which is outside of proven mining areas. Many people don’t realize that the majority of exploration dollars spent in the mining industry go to exploration around existing mines because it is one of the best places to make new discoveries and to rapidly be developed and produced using existing infrastructure. The adage is “the best place to find a mine is right next to an existing one.” In this case, at Stillwater, we have consolidated the district alongside three operating mines owned by Stillwater-Sibanye and are exploring in this same highly productive geologic environment, significantly increasing the probability of making new discoveries and potentially allowing for rapid development of low capital deposits because they are near surface and have the benefit of existing roads, power and other infrastructure already in the district. Maurice Jackson: Group Ten has other assets in its portfolio. Where are these located, and please provide us with some historical background. Michael Rowley: Following the Metallic Group model of acquiring quality assets in districts during the low parts of the metals price cycle, Group Ten has another PGE nickel copper project in the Kluane belt of the Yukon. This adjoins Nickel Creek Platinum’s Wellgreen project. World-class geology, and excellent potential for scale and grade there. We are seeing good interest in this asset as well but it’s at an earlier stage than the Stillwater asset. We also have the Black Lake/Drayton gold project, which adjoins First Mining’s Goldlund project and Treasury Metals Goliath project in the Rainy River belt of Ontario. We have several groups looking at this project as it is a 30-kilometer-long belt of productive geology that sits between two multi-million-ounce gold deposits. We’ve consolidated an impressive land position and database during the bear market and this is a very active exploration district. Maurice Jackson: What work have you done this year, and how do you prioritize them alongside your flagship Stillwater West project? Michael Rowley: Work programs at Kluane were focused on target refinement with an eye to adding value and assisting some of the parties from whom we have had expressions of interest. Similarly, in Ontario our work has consisted of refining targets and presenting the potential of the project to the groups we have under CA looking at a possible acquisition or partnership. Maurice Jackson: You are just wrapping up exploration for this season at Stillwater West so when should we expect to see the next results from this year’s work? Michael Rowley: This was only our first year on the ground at Stillwater and yet, because of the amount of information we have including surface sampling, mapping, drilling and geophysics we have already identified 12 major targets on the property. In addition, we have re-logged over 11,000 meters of core that is in our possession, some of which was assayed incompletely, or never assayed at all, and certainly never looked at with the bulk tonnage model we are using. Those results, and the new 3D models they will drive, are expected to give us a lot of news flow over the next several months as we detail the information in each of our target zones with the objective to develop and refine the targets for drilling and to focus on those areas that we may be able to rapidly advance towards new resources. Maurice Jackson: What is management’s philosophy, are you looking to build mines or are you focused on exploration? Michael Rowley: We are very much focused on the opportunity to make discoveries and to rapidly advance those to resource definition, as shown on slide 13. This stage can be one of the greatest periods for value creation in mining for investors. It’s not uncommon that the value that’s created in that initial discovery and resource development phase may not be exceeded again until these projects actually go into production, often times many years later. Maurice Jackson: Switching gears, I’ve learned from some of the most respected names in the natural resource space—Rick Rule, Doug Casey, Jayant Bhandari, Mickey Fulp, Bob Moriarty—that the people running the business are equally, if not more important, than the latent material in the ground. Mr. Rowley, please introduce us to your board of directors and management team, and what unique skill sets do they bring to Group Ten Metals? Michael Rowley: The quality of the Stillwater asset in particular has enabled us to attract a remarkable team. Dr. Craig Bow, who was part of the original discovery at Stillwater, is back leading the team now. Dr. Dave Broughton, of course of Ivanhoe, awarded for the discovery of the Platreef deposit and other world-class mines for Ivanhoe, just recently joined as senior technical advisor. They both are very excited about the potential here, and are experts in this type of deposit. In addition, we have a number of experienced team members who have worked in this region for decades. It‘s a great group of people to work with. And of course the Metallic Group management team, Greg Johnson, Gregor Hamilton, Bill Harris, myself, all of us veterans are of the industry. The team brings great depth of experience with specialized expertise in PGM and nickel systems. Maurice Jackson: Tell us about your share structure, options and warrants. Michael Rowley: It’s early days, we have a market cap of about $8 million, and about 44 million shares outstanding. Key point is we have $3 million of both in the money warrants that are callable and that’s after bringing in about $800,000 worth of those to date. Maurice Jackson: What is your burn rate? Michael Rowley: Presently it is about $50,000 per month. That includes our technical team and we do a good job of keeping costs down by sharing office and other back office expenses with the Metallic Group companies. Maurice Jackson: Do you have institutional investors at this point? Michael Rowley: We have a couple of mining-focused institutional funds with one out of Europe and one out of Toronto and a great set of high net worth investors. Maurice Jackson: What is the float? Michael Rowley: It’s pretty tightly held so probably about 20 million shares, and we turn over about one or two million shares per month. Maurice Jackson: Mr. Rowley, multilayered question, what is the unanswered question for Group Ten Metals, when should we expect results, and what will determine success? Michael Rowley: We have a lot to report through coming months as we continue the work to refine the highest priority drill targets for 2019. We have over 11,000 meters of core that has been re-logged and in places re-sampled, we have completed a comprehensive program of surface mapping and sampling and are integrating the drill information along with the surface work and geophysics. We will be reporting a large number of assay results over coming months from our 2018 programs and are excited to be able to begin 3D modelling of the geophysics and drilling towards developing a predictive 3D geologic model of the lower Stillwater Complex targets. Maurice Jackson: Mr. Rowley, in the introduction we alluded to the Metallic Group of Companies, please tell more about this. Michael Rowley: Group Ten Metals is part of a collaboration of leading exploration companies with some common directors between the companies and a similar approach to business. The Metallic Group of Companies includes Metallic Minerals TSX-V: MMG, which is focused on high-grade silver in the Yukon Territory; Group Ten Metals focused on platinum and palladium along with nickel and copper, in the Stillwater District, of Montana; and the newest company to join the group, Granite Creek Copper, as a newly launched copper focused exploration company with an exciting project right next door to a high-grade copper producer in the Carmacks District of the Yukon. These three companies have each focused on acquiring large blocks of brownfield holdings during the low part of the metal price cycle, adjacent to operating mines with infrastructure and facilities already in place in the districts. All three companies have multiple targets that have potential for major new discoveries, and are focused on large-scale targets that would be of interest to the major mining companies. We are applying new technologies to the extensive historical data on these projects that allow us to fast-track target development and refinement and drive rapid advancement to the resource delineation stage. In each of these situations with these operating mines next door, there is an opportunity to be able to fast track development on these targets by utilizing the existing infrastructure in their respective districts. There is also the potential for partnering with those operators or, if we’re successful in discovering very large scale deposits, to see interest by other larger companies. The Metallic Group of Companies are reducing costs by having a common admin group and CFO, as well as allowing us to have a deeper technical team with some specialists that can be shared across the group. It’s an exciting group of companies with a common philosophy. Our objective is to build real value for the Metallic Group investors going forward. Maurice Jackson: Finally, what did I forget to ask? Michael Rowley: I think that was a very comprehensive overview of Group Ten, and thank you for it. Perhaps in closing, I’d like to touch on a couple of catalysts ahead. On the industry side, we mentioned South Africa and the costs of mining there and the expected closure of a lot of those high-cost platinum mines. It has been a well-established pattern of falling PGM production out of South Africa year-on-year and the CPM Group’s work out of New York indicates that a lot of mine closures are expected soon, in 2019 and 2020. This is going to have a huge effect on platinum prices, because 75% of the world’s PGMs comes out of those reef deposits in South Africa. It’s also worth noting that we have significant nickel, copper and cobalt, which are such important metals for the rapidly growing battery and technology metals space. We are very bullish on these metals after a seven-year bear market. With most commodity price cycles running four to six years, we believe that the upside opportunity in these metals moving into the next cycle ahead could be very significant. Lastly, the fact that the Stillwater West project is a U.S.-based project adjoining these world-class, enormous PGM mines in Montana, with all the existing infrastructure in place can allow us to fast track our progress there. Maurice Jackson: In our first interview, we shared that there was a financing opportunity for accredited investors. Please share the details with us. Michael Rowley: We recently announced that we are in the process of completing the initial offering for our newly created copper company, Granite Creek Copper. Maurice Jackson: For someone listening that wants to get more information on Group Ten Metals, the website address is www.grouptenmetals.com. And as a reminder Group Ten Metals trades on the TSX-V:PGE and on the OTCQB:PGEZF. For direct inquiries please contact Chris Ackerman at 604-357-4790 ext. 1 and he may also be reached at info@grouptenmetals.com And last but not least please visit our website provenandprobable.com, where we interview the most respected names in the natural resources space. You may reach us at contact@provenandprobable.com. Michael Rowley of Group Ten Metals, thank you for joining us today on Proven and Probable. Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
Disclosure: 1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Proven and Probable disclosures are listed below. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click herefor important disclosures about sponsor fees. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734. The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.
Original Source: http://www.321gold.com/editorials/moriarty/moriarty103118.html Bob Moriarty Archives Oct 31, 2018 I just got back from an interesting visit to Ireland. From 1975 to 1985 I was working flying small aircraft to new owners all over the world. Gander Newfoundland and Shannon Ireland were natural jumping off points for ferry pilots. The distance between the two via a great circle route is 1922 nautical miles. Give me five minutes and a glance at a wind chart and I could generate a flight plan from memory. I must have flown it 150 times and stayed in Shannon 80-100 times. And after I flew under the Eiffel Tower I was smart enough to continue on to Shannon from Paris. Forty years ago Ireland was a different world than today. In 1841 the population was over 8.1 million people. It was one of the most densely populated countries in Europe. After the famine from 1845 until about 1850the population was cut in half and has only now grown back up to 4.8 million. All that I saw during the 1970s and 1980s was a land without opportunity. For a century Ireland’s biggest export was its young people. I remember reading something in one of my trips that 47% of the GDP went for cigarettes and booze. It was a land without hope. I’m not a EU fan. It was ill conceived and I think doomed to failure. However Ireland benefited greatly. While we were driving around the country visiting different projects it seemed the construction industry was booming. The hotels were inexpensive and comfortable. The food was magnificent. In the 1970s I used to say that in Ireland all you ate were boiled potatoes, boiled meat and boiled carrots. The only way to tell the difference was the color. The carrots were pale yellow and the meat was a dismal gray. Everything tasted exactly the same, carrots, meat and potato. It was dismal then but dismal no more. Lithium was popular in early 2018 after a short rally from December of 2017 until February of 2018. Redzone Resources soared from $.20 in early December to $.75 a share in January. Redzone with 23 million shares was doing very well. A lack of news and a dull stock market for resources has brought the share price back to as low as $.10 recently even in the face ofgood exploration progress. I talked to Redzone management and learned they were announcing an option on a major lithium project in Ireland. Since I was traveling to the country to see a young and upcoming zinc company I managed to fit in visits to both companies during the same week. On October 23rd Redzone announced an option for up to 90% of a highly potential lithium property in Ireland. What they call the North West Leinster lithium project is not really a Plan B for the company. An extraordinary opportunity jumped up and company president Michael Murphy jumped on it. Ireland has an interesting and long history with lithium. I visited the project with Wilson Robb last week. A year ago he had been chatting with someone at the geological survey for Ireland and casually asked if anything interesting had opened up. And the North West Leinster Lithium project literally fell into his hands for the cost of two years property payments. He looked around the industry for a good junior to vend the property into and discovered Redzone. The deal makes a lot of sense. All of the money goes into the ground and REZ can earn up to 90%. The option requires REZ to spend 1 million Euros within two years to earn 51% of the property. They can earn a further 24% by spending another 2 million Euros within five years. And the last 15% requires a PEA from Redzone and a cash/stock payment to the vendor of 500,000 Euros. A Chinese lithium producer named Ganfeng Lithium has been in a JV with a Canadian junior named International Lithium on a project just to the Southeast of the North West Leinster property. Ganfeng Lithium has agreed to spend $10 million to earn 79% of ILC’s Avalonia project. ILC has two drills turning on the project and has intersections of up to 2.23% Li2O over 23 meters. That is a home run intercept. The Irish government seems to be highly mining friendly and has conducted various regional geological studies over the years and made the information freely available. Clearly the potential as shown in the government surveys suggests the North West Leinster project to have even more potential than the ILC Avalonia project. So Redzone is picking up an option on a superior lithium project over a Chinese lithium producer funded project and doing so at 1/3 of the price. With Redzone share price in the dumps but still with almost $1 million in the kitty, I suggested to Michael Murphy that he start drilling off his Arizona project but conduct the basic groundwork in Ireland prior to drilling as soon as possible. If you like lithium, you should be looking at Redzone. They are now a two-pronged fork. The second company I visited last week in Ireland is named Group Eleven Resources (ZNG-V). I’m not a big fan of the name but I am a big fan of both the commodity and the company. Group Eleven is a zinc company and zinc is both in short-term and long-term shortage. Mines are being shut down and the industry realized years ago that we need to be opening new zinc mines as old mines become deleted. Bart Jaworski is the tactical genius behind Group Eleven. He saw the dismal state of the resource markets back in 2015 and realized that even the majors were dumping projects in order to clean up their balance sheets. He wanted to rationalize zinc production in Ireland and succeeded. He put together a giant package of three major projects any of which would be considers as having company making potential. The majors were literally giving projects away. He was smart enough to convince Mag Silver to back him politically and financially and managed a major coup in putting the three properties together. We visited all three last week. Normally I believe I can do a better job at communication than the companies I deal with. I don’t care if they are poor at communication as long as they are good at either exploration or mining but in the case of Group Eleven I want anyone interested in zinc to visit the site and spend a lot of time there. The site is wonderful and covers everything about zinc and their company. Glencore Plc. has a major zinc property in Ireland they call Pallas Green near Group Eleven’s Stonepark zinc property. Glencore has 145,000 employees and does $200 billion a year in turnover. Mining is a tiny part of the Glencore stable yet the company has almost a 44 million ton resource at Pallas Green with two drills turning now. They have had as many as eight rigs working. It’s a major project of them. Group Eleven’s Stonepark is higher grade and closer to the surface. There is no way Glencore is going to start a mine at Pallas Green without doing a deal with Group Eleven. Stonepark is a JV with a local Irish company eager to move the project forward. They are fully funded for this year’s exploration program and will have drill results coming out for months. The second major project for ZNG is Ballinalack made up of a 60% interest for Group Eleven and 40% for a Chinese company with a name so meaningless to western readers that I wouldn’t write it. The Chinese company is one of the largest zinc producers in China and needs more feed. The last but not least project for ZNG is their Silvermines project that is not a silver property, it’s a lead, zinc property but located near a historic silver mine from the 17th century. It is 100% owned by Group Eleven. Exploration on the project was primitive and in the case of all three major projects, modern exploration should be far more effective. I’m a giant fan of both Redzone and Group Eleven. Redzone still has $900,000 in the bank. Group Eleven is well cashed up with $3.5 million in the till. We need a lot more lithium and while lithium companies abound, most are flogging dead horses. Redzone has a past producing mine in Arizona and a wonderful project in Ireland next to another lower grade project that a lithium producer has made a $10 million work commitment to. Group Eleven has brilliant management and their technical team is second to none in Ireland. I love both companies. Redzone and Group Eleven are both advertisers. I have bought shares in the open market for both companies. As a shareholder naturally I am biased. Do your own due diligence. Redzone Resources REZ-V $0.13 (Oct 30, 2018) REZZF-OTCBB 23.4 million shares Redzone Resources website Group Eleven Resources ZNG-V $0.14 (Oct 30, 2018) GRLVF-OTCQB 59.8 million shares Group Eleven Resources website ### Bob Moriarty President: 321gold Archives 321gold Ltd
TORONTO, Oct. 30, 2018 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE MKT) today announces that it filed a technical report under Canadian Securities Administrators’ National Instrument 43-101 Standard of Disclosure for Mineral Projects for its 90% owned Wheeler River Project in Saskatchewantitled “Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada” dated October 30, 2018 with an effective date of September 24, 2018.
The technical report is posted on the Company’s website at www.denisonmines.com and is available under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml. This report supports the disclosure made by the Company in its news release dated September 24, 2018 (the “News Release”) and there are no material differences contained in the technical report from the information previously disclosed in the News Release.
As outlined in the News Release, the PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits. The high-grade Phoenix deposit is designed as an In-Situ Recovery (“ISR”) mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River. The Gryphon deposit is designed as an underground mining operation, utilizing a conventional long hole mining approach with processing of mine production assumed at Denison’s 22.5% owned McClean Lake mill.
Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million. The base-case economic analysis assumes uranium sales are made at UxC Consulting Company, LLC’s (“UxC”) annual estimated spot price for mine production from the Phoenix deposit (from ~US$29/lb U3O8to US$45/lb U3O8), and a fixed price for mine production from the Gryphon deposit (US$50/lb U3O8).
Using the same price assumed for the project’s 2016 Preliminary Economic Assessment (“2016 PEA”), a fixed uranium price of US$44/lb U3O8 (“PEA Reference Case”), the PFS produces a combined pre-tax project NPV of $1.41 billion – representing roughly 275% of the $513 million pre-tax project NPV estimated in the 2016 PEA.
Pre-Feasibility Study Highlights
Phoenix delivers exceptional operating costs and manageable initial capex with ISR
Mine life
10 years (6.0 million lbs U3O8 per year on average)
Probable reserves(1)
59.7 million lbs U3O8 (141,000 tonnes at 19.1% U3O8)
Average cash operating costs
$4.33 (US$3.33) per lb U3O8
Initial capital costs
$322.5 million
Base case pre-tax IRR(2)
43.3%
Base case pre-tax NPV8%(2)
$930.4 million
Base case price assumption
UxC spot price(3) (from ~US$29 to US$45/lb U3O8)
Operating profit margin(4)
89.0% at US$29/lb U3O8
All-in cost(5)
$11.57 (US$8.90) per lb U3O8
(1)
See below for additional information regarding Probable reserves;
(2)
NPV and IRR are calculated to the start of pre-production activities for the Phoenix operation in 2021;
(3)
Spot price forecast is based on “Composite Midpoint” scenario from UxC’s Q3’2018 Uranium Market Outlook (“UMO”) and is stated in constant (not-inflated) dollars;
(4)
Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue. Operating costs exclude all royalties, surcharges and income taxes;
(5)
All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.
Gryphon leverages existing infrastructure and provides additional low-cost production
Mine life
6.5 years (7.6 million lbs U3O8 per year on average)
Probable reserves(1)
49.7M lbs U3O8 (1,257,000 tonnes at 1.8% U3O8)
Average cash operating costs
$15.21 (US$11.70)per lb U3O8
Initial capital costs
$623.1 million
Base case pre-tax IRR(2)
23.2%
Base case pre-tax NPV8%(2)
$560.6 million
Base case price assumption
US$50 per pound U3O8
Operating profit margin(3)
77.0% at US$50/lb U3O8
All-in cost(4)
$29.67 (US$22.82) per lb U3O8
(1)
See below for additional information regarding Probable reserves;
(2)
NPV and IRR are calculated to the start of pre-production activities for the Gryphon operation in 2026;
(3)
Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue. Operating costs exclude all royalties, surcharges and income taxes;
(4)
All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.
Selection of ISR mining method for high-grade Phoenix deposit – Following the completion of the 2016 PEA, the Company evaluated 32 alternate mining methods to replace the high-cost Jet Bore Mining System (“JBS”) assumed for the Phoenix deposit in the 2016 PEA. The suitability of ISR mining for Phoenix has been confirmed by significant work completed in the field and laboratory – including drill hole injection, permeability, metallurgical leach, agitation, and column tests. Results demonstrate high rates of recovery in both extraction (+90%) and processing (98.5%) following a simplified flow sheet that precipitates uranium directly from the uranium bearing solution (“UBS”), without the added costs associated with ion exchange or solvent extraction circuits.
Novel application of established mining technologies – Given the unique geological setting of the Phoenix deposit, straddling the sub-Athabasca unconformity in permeable ground, the project development team has combined the use of existing and proven technologies from ISR mining, ground freezing, and horizontal directional drilling to create an innovative model for in situ uranium extraction in the AthabascaBasin. While each of the technologies are well established, the combination of technologies results in a novel mining approach applicable only to deposits occurring in a similar geological setting to Phoenix – which now represents the first deposit identified for ISR mining in the Athabasca Basin.
Environmental advantages of ISR mining at Phoenix – The Company’s evaluation of the ISR mining method for Phoenix has also identified several significant environmental and permitting advantages, namely the absence of tailings generation, the potential for no water discharge to surface water bodies, and the potential to use the existing Provincial power grid to operate on a near zero carbon emissions basis. In addition, the use of a freeze wall, to encapsulate the ore zone and contain the mining solution used in an ISR operation, eliminates common environmental concerns associated with ISR mining and facilitates a controlled reclamation of the site. Taken together, the Phoenix operation has the potential to be one of the most environmentally friendly mining operations in the world. Owing largely to these benefits, consultation with regulatory agencies and stakeholder communities, to date, has been encouraging regarding the use of ISR mining.
The PFS has been completed in accordance with NI 43-101, Canadian Institute of Mining, Milling and Petroleum (CIM) standards and best practices, as well as other standards such as the AACE Cost Estimation Standards.
Wheeler River Project
The Wheeler River project is the largest undeveloped uranium project in the eastern portion of the Athabasca Basin region in northern Saskatchewan, Canada. The project is situated in close proximity to important regional infrastructure, including the Provincial electrical transmission grid and an all-season Provincial highway. Since Denison became the operator of the project in 2004, two high-grade uranium deposits have been discovered and now account for combined Mineral Reserves and Mineral Resources (100% Basis) as follows:
Probable Mineral Reserves of 109.4 million pounds U3O8
Deposit
Classification
Tonnes
Grade
Lbs U3O8
Phoenix
Probable
141,000
19.1%
59.7 million
Gryphon
Probable
1,257,000
1.8%
49.7 million
Total
Probable
1,398,000
3.5%
109.4 million
Notes:
(1)
Reserve statement is as of September 24, 2018;
(2)
CIM definitions (2014) were followed for classification of mineral reserves;
(3)
Mineral reserves for the Phoenix deposit are reported at the mineral resource cut-off grade of 0.8% U3O8. The mineral reserves are based on the block model generated for the May 28, 2014 mineral resource estimate. A mining recovery factor of 85% has been applied to the mineral resource above the cut-off grade;
(4)
Mineral reserves for the Gryphon deposit are estimated at a cut-off grade of 0.58% U3O8 using a long-term uranium price of USD$40/lb, and a USD$/CAD$ exchange rate of 0.80. The mineral reserves are based on the block model generated for the January 30, 2018 mineral resource estimate. The cut-off grade is based on an operating cost of CAD$574/tonne, milling recovery of 97%, and 7.25% fee for Saskatchewan royalties;
(5)
Mineral reserves include diluting material and mining losses;
(6)
Mineral reserves are stated at a processing plant feed reference point;
(7)
Numbers may not add due to rounding.
Indicated Mineral Resources (inclusive of Reserves) of 132.1 million pounds U3O8 (1,809,000 tonnes at an average grade of 3.3% U3O8); plus
Inferred Mineral Resources of 3.0 million pounds U3O8(82,000 tonnes at an average grade of 1.7% U3O8).
The PFS does not include any economic analysis based on estimated Inferred Mineral Resources.
The project is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Company Limited (“JCU”) (10%).
Qualified Persons
The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.
The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran, MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.
For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison, please see Denison’s Annual Information Form dated March 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90.0% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in the Athabasca Basin also include a 22.5% ownership interest in the McClean Lake joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 65.45% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison.
Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or the negatives and / or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. In particular, this press release contains forward-looking information pertaining to the results of, and estimates, assumptions and projections provided in, the PFS, including future development methods and plans, market prices, costs and capital expenditures; the Company’s current plans with respect to the commencement and completion of an EA and feasibility study on the project; assumptions regarding Denison’s ability to obtain all necessary regulatory approvals to commence development; Denison’s percentage interest in its projects and its agreements with its joint venture partners; and the availability of services to be provided by third parties. Statements relating to “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison faces certain risks, including the inability to permit or develop the project as currently planned, the unpredictability of market prices, the use of mining methods which are novel and untested in the AthabascaBasin, events that could materially increase costs, changes in the regulatory environment governing the project lands, and unanticipated claims against title and rights to the project. Denison believes that the expectations reflected in this forward-looking information are reasonable but there can be no assurance that such statements will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the “Risk Factors” in Denison’s Annual Information Form dated March 27, 2018 available under its profile at www.sedar.com and its Form 40-F available at www.sec.gov/edgar.shtml. These factors are not, and should not be construed as being exhaustive.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in its expectations except as otherwise required by applicable legislation.
Vancouver, British Columbia–(Newsfile Corp. – October 30, 2018) – EMX Royalty Corporation(TSXV: EMX) (NYSE American: EMX) (the “Company“ or “EMX“) is pleased to announce that it has received its initial cash distribution of US $65.15 million from IG Copper LLC’s (“IGC”) sale of the Malmyzh copper-gold porphyry project (“Malmyzh” or the “Project”). IGC sold Malmyzh to Russian Copper Company (“RCC”) for US $200 million, of which US $190 million has been released from escrow1. The remaining US $10 million from the sale is being held in escrow, and subject to certain conditions, cash distributions of up to US $4 million will be made to EMX as funds are released from escrow over the next 12 months.
EMX’s strategic investment in IGC resulted from the Company’s recognition of Malmyzh in 2011 as an early-stage opportunity with excellent discovery potential. EMX took a disciplined investment approach by backing IGC’s initiatives to steadily advance the Project over the years, and when market conditions allowed, maximized value for EMX’s shareholders and IGC’s investors by supporting the sale of Malmyzh to RCC. The Malmyzh sale is a milestone event for EMX, and the Company enthusiastically looks forward to future successes in building value for its shareholders.
About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX receiving pre-production payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments. Please see www.EMXroyalty.com for more information.
About IGC. IGC, a privately held company, is led by President and CEO Thomas E. Bowens, and includes key personnel with a track record of exploration discovery and project development in the Russian Far East.
-30-
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 979-6666 Email: Dave@EMXroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 Email: SClose@EMXroyalty.com
Neither the 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.
1 See EMX news release dated October 11, 2018.
Forward-Looking Statements
This news release may contain “forward looking statements“ that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures,timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,““intend,““expect,““anticipate,““will“, “believe“,“potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company‘s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the sixmonth periodthat ended onJune 30, 2018(the“MD&A”), and themost recently filed Form 20-F for the year ended December 31, 2017,actual events may differ materially from current expectations. More information about the Company, including the MD&A, the 20-F and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
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