Vancouver, British Columbia–(Newsfile Corp. – August 1, 2023) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to announce the execution of a binding term sheet with Franco-Nevada Corporation (“Franco-Nevada”) for the joint acquisition of newly created precious metals and copper royalties sourced by EMX (the “Agreement”). Franco-Nevada will contribute 55% (up to US$5.5 million) and EMX will contribute 45% (up to US$4.5 million) towards the royalty acquisitions, with the resulting royalty interests equally split (i.e. 50/50). The initial term is for three years from the signing date, or until the maximum contributions totaling US$10 million from both companies have been met, and may be extended if mutually agreed by both companies.
EMX and Franco-Nevada believe that royalty financing capital is sorely needed in an exploration sector where equity capital is difficult to source. The Agreement allows EMX to direct a large amount of capital towards the royalty generation aspect of its business model, and Franco-Nevada to participate in exploration stage royalty financing opportunities identified by EMX. Franco-Nevada is already an EMX shareholder (6.1% fully diluted), having made a $10 million private placement to facilitate the Company’s purchase of additional royalty interests in the Caserones copper (molybdenum) mine in Chile last year (see EMX news release dated April 14, 2022). In parallel with EMX’s royalty acquisition, Franco-Nevada also purchased a royalty interest in Caserones.
Commercial Terms Overview. Pursuant to the terms of the Agreement dated June 27, 2023, EMX will source newly created precious metals royalties (“Precious Metals Royalties”) and/or copper royalties (“Copper Royalties”, and together with Precious Metals Royalties, “Royalties” and each a “Royalty”) exclusively for the benefit of EMX and Franco-Nevada (jointly the “Parties”). The Royalties will be for all minerals from mining projects having primary economic metal(s) that are precious metals or copper, but the Agreement will not apply to the purchase of existing third-party royalty interests or exploration lands.
The material Agreement terms are (all dollar amounts are in U.S. dollars (USD)):
Franco-Nevada will contribute 55% and EMX will contribute 45% of the purchase price of all Royalties, with such Royalties being equally split (i.e. 50/50) between each Party. Franco-Nevada will commit up to $5.5 million and EMX will commit up to $4.5 million for the acquisition of Royalties, totaling $10 million from both Parties (the “Capital Commitment”).
To illustrate the above, for a new 1% Royalty with a $1 million dollar purchase price, Franco-Nevada would contribute $550 thousand and EMX would contribute $450 thousand, with each Party receiving a 0.5% Royalty.
EMX will be responsible for managing all Royalty transaction sourcing, asset analysis, due diligence review, contract negotiations and other related activities in connection with the acquisition of Royalties.
The Agreement will expire upon the earlier of: (i) the contribution of the full Capital Commitment; or (ii) the date that is three years after the execution of the Agreement (the “Initial Term”), subject to extension upon mutual agreement of the Parties.
Discussion. The Agreement with Franco-Nevada is expected to accelerate the growth of the Company’s royalty portfolio by allowing EMX to direct a larger amount of capital towards new royalty acquisitions through exploration royalty financing or other entrepreneurial means. EMX’s assets currently include over 250 exploration and early stage royalty generation projects, in addition to six producing and eleven advanced royalty properties. The Company has active programs and important assets in North America (the western U.S., Canada, and Mexico), South America (Chile, Peru, and Argentina), Europe (Fennoscandia, Serbia and the other Balkans), western Asia (Turkey), Africa (Morocco and Botswana), and Australia. From these countries and regions, the Company manages its portfolio utilizing in-country or in-region exploration teams, consultants, and advisers. EMX’s search for new royalty opportunities will be led in the western hemisphere by Chief Geologist, Dr. David Johnson, in the eastern hemisphere by General Manager of Exploration, Dr. Eric Jensen, and globally by General Manager of Corporate Development, Thomas Mair.
The precious metals and copper focused search for new royalties leverages EMX’s experience in assessing opportunities for these commodities. The Company’s portfolio is principally comprised of gold (59%) and copper (21%) assets, with battery (e.g., cobalt, nickel, etc.) and other metals (e.g., lead, zinc, etc.) accounting for the remaining 20%. The Company’s current portfolio provides a strong base from which to source new royalties for both companies.
EMX is well positioned to source new royalty opportunities under the Agreement. In particular, the EMX – Franco-Nevada initiative well-suited for the acquisition of new royalties from companies that have promising precious metals or copper projects, but are confronted by the current challenging environment for exploration funding. Interested third parties are encouraged to see www.EMXroyalty.com for more information regarding key management contacts, as well as the Company’s portfolio and business strategy.
Qualified Person. Michael P. Sheehan, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, and also trade on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
About Franco-Nevada. Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges.
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 973-8585 Dave@emxroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 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
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 quarter ended March 31, 2023 (the “MD&A”), and themost recently filed Annual Information Form (“AIF”) for the year ended December 31, 2022, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
Edmonton, Alberta–(Newsfile Corp. – July 31, 2023) – Grizzly Discoveries Inc. (TSXV: GZD) (FSE: G6H) (OTCQB: GZDIF) (“Grizzly” or the “Company”) is pleased to announce that crews have been mobilized to the Rock Creek camp and have commenced work at Midway, Copper Mountain and the Imperial target areas within the Greenwood Precious and Battery Metals Project.
Geological and prospecting crews have commenced prospecting, geological mapping, rock and soil sampling within the Greenwood Project. The intent is to prepare these target areas for drilling later this year. The Company is awaiting land use permits for conducting drilling and trenching at the Midway Mine area as well as drilling at Copper Mountain, Imperial and potentially the Sappho target areas (Figure 1).
The geological and prospecting crew has made a new discovery of sulphide in a quartz vein zone on an extension to the Mabel Jenny structural zone in the Copper Mountain project area. Figures 2 and 3 outline a new road cut from which a rock grab sample collected in 2022 returned 7.5 grams per tonne gold (g/t Au), 54 g/t silver (Ag), 2.04% zinc (Zn) and 0.067% Cu. The new logging road cut has been dug out and cleaned up with a number of new samples collected (Figure 2). The road cut is approximately 150 m northwest of the Mabel Jenny historical workings (Figure 3). Another 2022 rock grab sample collected about 100 m further northwest yielded 1.01 g/t Au.
Figure 2: New discovery of a quartz vein breccia zone with sulphide about 150 m northwest of Mabel Jenny. Click here for video clip: Quartz vein breccia zone with sulphide
A single drillhole in the area of the Mabel Jenny workings intersected a propylitic to argillic altered quartz diorite with pervasive pyrite, quartz veining and localized breccia zones. The 178 m hole returned up to 0.21 g/t Au over 42.8 m with a core of 0.4 g/t Au across 18.2 m core length, but more importantly every sample was anomalous with gold, with not a single sample returning less than detection background gold.
The geological crews have collected approximately 1,200 soil samples and 200 rock samples from the Midway and Copper Mountain areas to date. Assays results will be reported as they become available.
Figure 3: Samples and drillholes on backdrop of HLEM and Geology.
The goal of the current fieldwork is to improve the targeting for the late summer – fall drilling campaigns at a number of precious metal and battery metal targets across the property and continue to develop a pipeline of high priority precious metal and battery metal targets that are all permitted and ready for a long 2023 drilling campaign in order to prioritize these assets into those that can deliver future mineral resources with additional drilling, eventually leading to some form of economic studies and scenarios that might be able to take advantage of local toll treating opportunities that exist in the Greenwood – Republic region.
Brian Testo, President and CEO of Grizzly Discoveries stated, “We are extremely excited with the progress that our prospecting team has made to date. The new discovery of a quartz vein breccia zone near the Mable Jenny target is an excellent start to the 2023 exploration season. Grizzly plans to pursue this and a number of high grade gold – silver showings and historical mines within our current 160,000+ acre land holdings in the Greenwood District. We have numerous prospective zones that could potentially result in additional new discoveries along with the multiple historical mining production showings that Grizzly intends to drill and advance.”
2023 Exploration Update for Greenwood
Additional drilling is warranted in 2023 at both the Dayton and Motherlode North target areas in order to follow-up the anomalous results of the 2022 drilling program. In addition, there other targets at Motherlode North in the vicinity of the Motherlode Pit, the Greyhound Pit and the Great Hopes crown grant that have yet be drill tested.
Drilling and trenching permit applications have been submitted for the 2023 season for the Midway, Sappho, Copper Mountain and Imperial target areas.
Additional permit applications for drilling at the Crown Point and the Overlander-Mt Attwood areas are in preparation and will be submitted in the near future.
The Midway area is being targeted for copper-gold skarn and epithermal gold-silver.
At Midway, selective rock grab and composite rock grab samples from outcrop collected from the Midway Mine-Picturestone area, with 4 of 7 rock grab samples from outcropping mineralization
in the Midway Mine historical pit yielded a range of 12.05 g/t (or 0.351 ounces per ton [oz/t]) Au up to 70.8 g/t (2.065 oz/t) Au (See Company news release dated October17, 2022).
Three (3) of the 7 selective rock grab samples from the Midway Mine pits yielded from 1,360 g/t Ag (39.7 oz/t Ag) up to 2,140 g/T Ag (62.4 oz/t Ag) (see the Company news release dated October 17, 2022).
All highly anomalous samples are from outcrop and characterized by the presence of abundant pyrite, arsenopyrite with visible galena and sphalerite in a siliceous chalcedonic host. The mineralization is hosted in polymetallic veins that display the presence of Pb, Zn, Cu, arsenic (As) and antimony (Sb) and are likely epithermal in nature.
A selective rock grab sample from outcrop 200 m west of the main Midway Mine yielded 15.85 g/t Au (0.462 oz/t Au) and 1,530 g/T Ag (44.6 oz/t Ag), illustrating that there is potential for additional high-grade mineralization in the area.
The Sappho area is being targeted for copper-gold-PGEs skarn and porphyry type targets associated with an alkalic intrusion and several diorite intrusions south of Greenwood near the US border.
At least five new showings of copper oxide/sulphide mineralization were found during the 2022 program at the Sappho Target.
Previous surface sampling and drilling by Grizzly at the Sappho area has yielded significant anomalous copper, gold, silver along with platinum and palladium.
Numerous rock grab samples have yielded greater than 1% copper, 1 g/t gold, 1 g/t platinum and 1 g/t palladium (see Company news release dated November 3, 2022).
Historical drilling (by the Company) has yielded up to 0.31% Cu, 0.75 g/t Au, 0.34 g/t Pt, 0.39 g/t Pd and 6.57 g/t Ag over 6.5 m core length in skarn at Sappho in 2010.
Quality Assurance and Control
Rock and soil samples were analyzed at ALS Global Laboratories (Geochemistry Division) in Vancouver, Canada (an ISO/IEC 17025:2017 accredited facility). Gold was assayed using a fire assay with atomic emission spectrometry and gravimetric finish when required (+10 g/t Au). Rock grab and rock chip samples from outcrop/bedrock are selective by nature and may not be representative of the mineralization hosted on the project.
The sampling program was undertaken by Company personnel under the direction of Michael B. Dufresne, M.Sc., P.Geol., P.Geo. A secure chain of custody is maintained in transporting and storing of all samples.
The technical content of this news release and the Company’s technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., P.Geo., who is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange focused on developing its approximately 66,000 ha (approximately 165,000 acres) of precious and base metals properties in southeastern British Columbia. Grizzly is run by a highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.
On behalf of the Board,
GRIZZLY DISCOVERIES INC. Brian Testo, CEO, President
Suite 363-9768 170 Street NW Edmonton, Alberta T5T 5L4
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.
Caution concerning forward-looking information
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
VANCOUVER, BC / ACCESSWIRE / July 31, 2023 / Metallic Minerals Corp. (TSX.V:MMG)(OTCQB:MMNGF)(“Metallic Minerals” or the “Company”) is pleased to announce an updated National Instrument 43-101 Mineral Resource Estimate representing a 25% increase in contained metal based on an additional 1,730 meters of diamond drilling completed at its La Plata project in 2022. Inferred mineral resources at the Allard deposit now total 1,211 million pounds of copper (“Mlbs”) and 17.6 million ounces (“Moz”) of silver in a constrained model with 147.3 million tonnes at an average grade of 0.41% Copper Equivalent (“CuEq”) (0.37% Cu and 3.72 g/t Ag) using a 0.25% CuEq cut-off grade (See Table 1 notes).
Metallic Minerals Corp., Monday, July 31, 2023, Press release picture
The expansion from the inaugural resource to the current 1,317 Mlbs CuEq is largely driven by the major discovery in drill hole LAP22-04 (drilled in 2022), which intersected 816 meters of 0.41% CuEq recovered (0.30% Cu, 2.47 g/t Ag, 0.038 g/t Au, 0.055 g/t Pd and 0.093 g/t Pd) bottoming in 5.39% CuEq recovered over 5.2 m (2.44% Cu, 18.7 g/t Ag, 5.0 g/t Au+PGE). Follow-up drilling is currently underway to test the extent of this newly discovered high-grade mineralization, and at the time of this news release, the first offset drill hole was drilling in porphyry mineralization and had reached approximately 500 m depth.
The Allard deposit resource remains completely open to expansion laterally and to depth. Future mineral resource estimates will add gold, platinum and palladium to the copper and silver resource with additional drilling. These metals were not previously assayed for in historic drilling but add significant value to the recent drill intercepts. Furthermore, the greater La Plata copper-silver-gold-PGE project remains underexplored and open to new discoveries of both additional copper porphyry centers, as well as high-grade epithermal silver, gold and telluride mineralization that were the focus of historic mining in the district.
Highlights
Inferred mineral resources at the Allard deposit now total 1,211 million pounds of copper and 17.6 million ounces of silver in a constrained model with 147.3 million tonnes at an average grade of 0.41% CuEq (0.37% Cu and 3.72 g/t Ag) using a 0.25% CuEq cut-off grade.
Contained copper equivalent metal has increased by 25% to 1,317 million pounds and the overall grade of the deposit also increased 5% to 0.41% CuEq.
Significant upside exists for both increases in equivalent grade and precious metal ounces due to limited historic assaying for gold, platinum and palladium. These metals, which are found in high concentrations in the 2022 drilling but are not included in the current resource estimate, are anticipated to be added with additional drilling. The precious metals component of LAP22-04 (silver, gold, platinum, and palladium) can add 50% or more in equivalent value above the copper only values in that hole.
The Allard resource remains open to expansion at depth and along strike with the discovery drill hole LAP22-04 being the easternmost hole drilled in the deposit.
Sixteen (16) untested potential porphyry centers have been identified on the greater La Plata project area, as well as target areas with potential for significant high-grade epithermal silver, gold and telluride mineralization.
Resource expansion drilling in 2022 totaled 1,780 m bringing the project total to 16,930 m in 59 drill holes.
An NI 43-101-compliant technical report on the 2023 La Plata Resource will be filed on Sedar.com within 45 days.
Scott Petsel, Metallic Minerals’ President, states, “The current expansion of the La Plata resource is an early first step in realizing the true potential of the project and the fact that we were able to achieve a 25% increase over the inaugural resource with a modest amount of drilling in 2022 speaks to the well mineralized yet underexplored nature of the project. Hole LAP22-04 resulted in the discovery of new, extremely rich mineralization that is unconstrained to the east, north and at depth and clearly requires follow-up drilling to understand the true size and nature of the Allard resource. Metallic Minerals in collaboration with our strategic investor Newcrest Mining is excited to pursue expansion on this discovery in 2023 and have secured a drill capable of penetrating well beyond the current resource extent. The continuity of mineralization starting from surface, coupled with the very high grades at depth, represent significant upside to both scale and grade in future resource updates. We expect considerable expansion of the contained precious metals and copper with subsequent drilling and envision the potential scale for a Tier 1 asset. In addition, numerous high-priority untested targets have been identified outside of the resource area that we hope to begin testing in 2023.”
Table 1 – 2023 Updated La Plata Inferred Mineral Resource Estimate at a Base Case Cut-off Grade of 0.25% CuEq with Grade and Contained Metal Sensitivity Analysis at Various CuEq Cut-off Grades.
Class
CuEq (%)
Tonnes
Cu
Ag
CuEq (%)
Cut-off
Grade (%)
Mlbs
Grade (g/t)
Ounces
Grade (%)
Mlbs
Inferred
0.15
212,243,000
0.32
1,480
3.24
22,131,000
0.34
1,613
Inferred
0.20
187,173,000
0.34
1,391
3.42
20,597,000
0.37
1,515
Inferred
0.25
147,344,000
0.37
1,211
3.72
17,604,000
0.41
1,317
Inferred
0.30
116,438,000
0.41
1,041
3.95
14,783,000
0.44
1,130
Inferred
0.35
87,871,000
0.44
854
4.20
11,861,000
0.48
925
The Allard deposit mineral resource estimate (the “2023 Resource Estimate”) generally respects industry standard practices as recently established by the CIM in the Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). The classification of the 2023 Resource Estimate is consistent with current CIM Definition Standards for Mineral Resources and Mineral Reserves (2014).
Completion of the 2023 Resource Estimate involved the assessment of a validated database, which included all data for surface and underground sampling completed through the fall of 2022, as well as a three-dimensional (“3D”) mineral resource model, a topographic surface model, models of the underground workings and underground channel samples, and available written reports. SGS used 59 drillholes and 2 channels, and 17,215 m of data from 1959 to 2022 to delineate the Allard deposit.
Inverse Distance squared (“ID2“) restricted to a mineralized domain is used to Interpolate grades for the main elements of interest including Cu (ppm) and Ag (g/t) into a block model.
Based on a review of the project location and size, geometry, and continuity of mineralization of the Allard deposit, and its spatial distribution, it is envisioned that the Allard deposit may be mined using a large-scale underground bulk mining method.
The 2023 Resource Estimate is reported at a base case cut-off grade of 0.25% CuEq, based on metal prices of $3.75/lb Cu and $22.50/oz Ag, assumed metal recoveries of 90% for Cu and 65% for Ag, a mining cost of US$5.30/t rock and processing and G&A cost of US$11.50/t mineralized material. CuEq % = Cu % + (Ag g/t x Ag price/gram).
The values in the 2023 Resource Estimate table reported above and below the base-case cut-off 0.25% CuEq should not be misconstrued with a Mineral Resource Statement. The values are only presented to show the sensitivity of the block model estimates to the selection of the base case cut-off grade.
All figures are rounded to reflect the relative accuracy of the estimate. Totals may not add or calculate exactly due to rounding.
The 2023 Resource Estimate is presented undiluted and in situ, constrained by a continuous 3D wireframe model (the constraining volume) and below topography, and is considered to have reasonable prospects for eventual economic extraction.
The 2023 Resource Estimate is not a Mineral Reserve as it does not have demonstrated economic viability. The Inferred Mineral Resource in the 2023 Resource Estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
A fixed specific gravity value of 2.60 g/cm3 is used to estimate the Mineral Resource tonnage from a block model volume.
Composites of 3.05 m in length, constrained to the Allard domain, are used for the resource estimation procedure. Grades for Cu and Ag were interpolated into blocks by the ID2 calculation method.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that most of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
La Plata Property Overview
Metallic Minerals’ La Plata project covers 44 square kilometers 20 km north of Mancos, Colorado, within the historic La Plata mining district, that is in the southwest portion of the prolific Colorado Mineral Belt. The La Plata project is easily accessible by highways and improved gravel roads and is near significant power transmission lines.
The La Plata district has a long and rich history of mining with the first silver deposits discovered in the 1700s by Spanish explorers. High-grade silver and gold production has been documented from the 1870s through the early 1940s from mineralized deposits at over 90 individual mines and prospects1. From the 1950s to 1970s, major miners, including Rio Tinto (Bear Creek) and Freeport-McMoRan (Phelps Dodge), explored the district focusing on the significant potential for bulk-tonnage disseminated and stockwork hosted mineralization2. Freeport-McMoRan retained ownership of claims in the district until 2002 when they sold their holdings to the current underlying vendors during the lows of the last metal price cycle.
A total of 17,215 meters in 59 drill holes has been drilled on the property from the 1950s to present, this drilling has demonstrated the presence of a large multi-phase porphyry system with copper, silver, gold with more recent discoveries highlighting the potential for significant PGEs, rare earth minerals and tellurium. This large-scale mineralized system is associated with a 10 km2 strongly magnetic signature with intense hydrothermal alteration. Surrounding the central porphyry system is an associated high-grade silver and gold-rich epithermal system measuring at least 8 km by 2 km that hosts 56 identified mineralized veins, replacement, and breccia structures. Historical production from some of these high-grade structures included bonanza grades for silver and gold.
Copper mineralization with associated silver, gold, platinum, and palladium is hosted by a large-scale, Late Mesozoic age, alkalic porphyry system with related silver, gold, telluride epithermal vein, breccia and replacement deposits hosted in adjacent sedimentary rocks. Porphyry copper systems are some of the largest sources of copper and precious metals production worldwide and are frequently cornerstone Tier 1 assets for the major mining companies. The sub-type of porphyry systems, known as alkalic porphyry deposits, commonly contain higher-grade precious metal content like at La Plata and can demonstrate significant scale.
Figure 1 – La Plata Cross Section with Significant Drill Intervals and Mineralized Grade Shells
Metallic Minerals Corp., Monday, July 31, 2023, Press release picture
Critical Minerals
The Allard deposit at La Plata is a significant potential source of copper and silver, both important industrial metals used for modern technologies broadly and particularly in renewable and clean energy applications. Recent and historical work has also demonstrated that the broader La Plata district is also a potential source of other critical minerals identified by the U.S. Government as requirements for economic and national security3. Drilling by Metallic Minerals in 2022 returned multi-gram intervals of platinum group elements with individual grades up to 5 g/t platinum and palladium, as well as critical minerals such as vanadium, and rare earth elements. Tellurium, another element on the critical mineral list, was a by-product of historic high-grade gold and silver production in the district. The potential for these critical minerals to add additional economic value to the La Plata project will be evaluated as part of ongoing exploration efforts.
U.S. Geological Survey Earth Mapping Resources Initiative
The U.S. Geological Survey (“USGS”) is funding the Colorado Geological Survey for geological studies in the La Plata Mountains as part of the Earth Mapping Resources Initiative. The work to be carried out by the Colorado Geological Survey includes geologic mapping as well as geochemical and mineralogical studies in the La Plata Mining District to generate a greater understanding of the area’s potential to host critical minerals. See USGS news release dated January 25, 2023.
About SGS Geological Services
SGS Geological Services has an experienced and respected mining team focused on the domestic and international mining industry. The team has considerable experience in estimation and modeling of deposits of all types and practical and theoretical experience having realized hundreds of assessments for clients. The SGS team consists of a multi-disciplinary group of qualified persons with a strong understanding of the disclosure requirements for Mineral Resources set out in the NI 43-101 Standards of Disclosure for Mineral Projects (2016), CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and a strong understanding of the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines 2019.
About Metallic Minerals
Metallic Minerals Corp. is a leading exploration and development stage company focused on copper, silver, gold, and other critical minerals in the La Plata mining district in Colorado, and silver and gold in the high-grade Keno Hill and Klondike districts of the Yukon. Our objective is to create shareholder value through a systematic, entrepreneurial approach to making exploration discoveries, growing resources, and advancing projects toward development.
At the Company’s La Plata project in southwestern Colorado, the new 2023 NI 43-101 mineral resource estimate identifies a significant porphyry copper-silver resource containing 1,211 Mlbs copper and 17.6 Moz of silver. Results from 2022 expansion drilling providing the basis for the updated resource, included the longest and highest-grade interval ever encountered at La Plata and one of the top intersections for any North American copper project in the past several years. In May 2023, the Company announced a 9.5% strategic investment by Newcrest Mining Limited to accelerate the advancement of the Company’s La Plata project. In the 2023 Fraser Institute’s Annual Survey of Mining Companies, Colorado ranked 5th globally for investment attractiveness and 2nd in the USA.
In Canada’s Yukon Territory, Metallic Minerals has consolidated the second-largest land position in the historic high-grade Keno Hill silver district, directly adjacent to Hecla Mining Company’s (“Hecla”) operations, with more than 300 Moz of high-grade silver in past production and current M&I resources. Hecla, the largest primary silver producer in the USA and third largest in the world, completed the acquisition of Alexco Resource Corp and its Keno Hill operations in September 2022. Hecla is targeting to start production at the Keno Hill operations by Q3 2023. Metallic Minerals is anticipating the announcement of inaugural mineral resource estimate at Keno Silver in the second half of 2023.
The Company is also one of the largest holders of alluvial gold claims in the Yukon and is building a production royalty business by partnering with experienced mining operators, including Parker Schnabel of Little Flake Mining from the hit television show, Gold Rush, on the Discovery Channel.
All of the districts in which Metallic Minerals operates have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits in the region, as well as having large-scale development, permitting and project financing expertise. The Metallic Minerals team has been recognized for its environmental stewardship practices and is committed to responsible and sustainable resource development.
1) Eckel, USGS Prof Paper 219, Geology and Ore Deposits of the La Plata Mining District, 1949.
2) Bear Creek Mining (now Rio Tinto), Humble Oil (now Exxon) and Phelps Dodge (now Freeport-McMoRan) company reports.
4) The US Geological Survey has released a list of 50 critical minerals that the US economy requires for economic and national security. Earth Mapping Resources Initiative.
Qualified Persons
The La Plata copper-silver project 2023 mineral resource estimate was prepared by Allan Armitage, P. Geo., of SGS Geological Services, an independent Qualified Person, in accordance with the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) with an effective date of July 10, 2023. Armitage conducted a site visit to the property on August 13, 2021, and again on April 18 and 19, 2023. Jeff Cary, CPG, a qualified person for the purposes of National Instrument 43-101, has reviewed and approved the technical disclosure not pertaining to the resource estimate contained in this news release. Mr. Cary is a Senior Geologist and La Plata Project Manager for Metallic Minerals.
Forward-Looking Statements
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, statements about expected results of operations, royalties, cash flows, financial position and future dividends as well as financial position, prospects, and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, unsuccessful operations, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration, development of mines and mining operations is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Vancouver, British Columbia–(Newsfile Corp. – July 24, 2023) – Ridgeline Minerals Corp. (TSXV: RDG) (OTCQB: RDGMF) (FSE: 0GC0) (“Ridgeline” or the “Company”) is pleased to announce the commencement of the Company’s diamond core drill program at the Selena project (“Selena”). Selena is host to a silver (“Ag”) – gold (“Au”) – lead (“Pb”) – zinc (“Zn”) carbonate replacement (“CRD”) style discovery located in White Pine County, Nevada (Figure 1).
The drill program has been designed to follow-up on bonanza grade CRD intercepts drilled at the Chinchilla zone in 2022, with highlights including 6.1 meters (“m”) grading 480 grams per tonne (“g/t”) Ag, 12.0% Pb, 6.4% Zn, and 0.1 g/t Au in SE22-045 and 0.5 m grading 1,793 g/t Ag, 2.2% tungsten (“W”) and 0.5% copper (“Cu”) in SE22-039 (see January 24, 2023 press release HERE). The program will complete up to six (6) core holes for a total of 3,000 m with results to be released as they are received (Figure 2).
Mike Harp, Vice President, Exploration commented, “Last year’s program delivered the best intercepts in the project’s history. It also confirmed our theory that core drilling would significantly upgrade historical reverse circulation assay results, indicating substantial upside as we convert historically drilled RC intercepts to core. Our 2023 program will build off that success and focus on expanding the high-grade mineralization at two known “chimney” or feeder structures that make up the core of the Chinchilla Zone. We will also drill the lower half of the Guilmette Limestone host rocks, which we believe have potential to host multiple stacked CRD horizons adjacent to known chimney structures.”
Selena Project Selena is located in White Pine County, Nevada, approximately 64 kilometers (“km”) north of the town of Ely, NV. The project shares a property boundary with the Butte Valley project, a US $33M earn-in agreement between Freeport-McMoRan and Falcon Butte Minerals. The 100% owned project is comprised of 39 square kms of highly prospective exploration ground including Ridgeline’s shallow-oxide Ag-Au-Pb-Zn Chinchilla discovery. Subsequent drilling has continued to highlight the potential for high-grade CRD type mineralization (Ag-Au-Pb-Zn ±Cu) between Chinchilla and the Butte Valley Cu-Au-Ag porphyry located directly west of the property. (View the Selena VRIFY Deck Here)
Figure 1: Plan view map showing location of the Selena project which sits directly adjacent to the Butte Valley Porphyry, a US $33M earn-in exploration agreement between Freeport-McMoRan and Falcon Butte Minerals
Figure 2: X-Section C-C’ with scaled plan view map showing past Chinchilla zone intercepts and proposed chimney and manto targets to be tested beneath known high-grade CRD intercepts
QAQC Procedures Samples are submitted to American Assay Laboratories (AAL) of Sparks, Nevada, which is a certified and accredited laboratory, independent of the Company. Samples are prepared using industry-standard prep methods and analysed using FA-PB30-ICP (Au; 30 g fire assay) and ICP-5AM48 (48 element Suite; 0.5 g 5-acid digestion/ICP-MS) methods. AAL also undertakes its own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration. Ridgeline’s QA/QC program includes regular insertion of CRM standards, duplicates, and blanks into the sample stream with a stringent review of all results completed by the Company’s Qualified Person, Michael T. Harp, Vice President, Exploration.
Technical information contained in this news release has been reviewed and approved by Michael T. Harp, CPG. the Company’s Vice President, Exploration, who is Ridgeline’s Qualified Person under National Instrument 43-101 and responsible for technical matters of this release.
About Ridgeline Minerals Corp. Ridgeline is a discovery focused gold-silver explorer with a proven management team and a 192 km² exploration portfolio across six projects in Nevada and Idaho, USA. More information about Ridgeline can be found at www.RidgelineMinerals.com.
On behalf of the Board “Chad Peters” President & CEO
Further Information: Chad Peters, P.Geo. President & CEO Ridgeline Minerals Corp. (775) 304-9773 | info@ridgelineminerals.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Note regarding Forward-Looking Statements Statements contained in this press release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-Looking Information includes, but is not limited to, the anticipated benefits of the Earn-In Agreement and the transaction contemplated thereby. The words “potential”, “anticipate”, “meaningful”, “discovery”, “forecast”, “believe”, “estimate”, “expect”, “may”, “will”, “project”, “plan”, “historical”, “historic” and similar expressions are intended to be among the statements that identify Forward-Looking Information. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by the Forward-Looking Information. In preparing the Forward-Looking Information in this news release, Ridgeline has applied several material assumptions, including, but not limited to, assumptions that TSX Venture Exchange approval will be granted in a timely manner subject only to standard conditions; the current objectives concerning the Project can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner; and that all requisite information will be available in a timely manner. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of Ridgeline to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, risks related to dependence on key personnel; risks related to unforeseen delays; risks related to historical data that has not been verified by the Company; as well as those factors discussed in Ridgeline’s public disclosure record. Although Ridgeline has attempted to identify important factors that could affect Ridgeline and may cause actual actions, events, or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Ridgeline does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
VANCOUVER, BC / ACCESSWIRE / July 28, 2023 / Blackwolf Copper and Gold Ltd. (“Blackwolf”, or the “Company”) (TSXV:BWCG)(OTC PINK:BWCGF) is pleased to announce the launch of the maiden drill program at the Cantoo Mountain Project (“Cantoo”) in Southwest Alaska. The Cantoo Property is located adjacent to the Canadian border and the historic Premier Gold Mine that is currently in redevelopment. Initial drill holes could be in excess of 700 meters to test the multiple structures. This marks the first modern exploration effort at Cantoo since the 1920s and the first ever diamond drill program testing Multiple stacked shallow-dipping vein structures and breccia, including a 30m (100ft) wide vein. During preliminary sampling, Blackwolf uncovered a significant 30-meter (100ft) vein exhibiting high-grade results of up to 30.4g/t Gold, 2860 g/t Silver, and 5.8% Copper outcropping at surface. The initial drill program is planned to cover up to 2000 meters in 4 drill holes over a 1.5 month period with Initial results expected early September.
Morgan Lekstrom, CEO and Director of Blackwolf, commented, “We are proud to commence this drill program, a testament to our commitment to unlocking the potential of this promising location. Cantoo stands out as one of the most compelling untested drill targets in the Golden Triangle. Notably, it lies just approximately 600 meters away from the Premier Mine on the Canadian side of the border. As we know, geology transcends boundaries and borders, and in this prolific region, which is also home to the renowned Brucejack Mine (acquired in 2021 for $2.8 Billion) and numerous other significant mining endeavors, we are poised to unveil the hidden treasures that lie beneath its surface.”
Blackwolf Copper and Gold Ltd, Friday, July 28, 2023, Press release picture
Figure 1: Sampling Results and Drill Plan
Blackwolf Copper and Gold Ltd, Friday, July 28, 2023, Press release picture
Photo 1: Drill pad under construction
Market Making Agreement
Blackwolf is also pleased to announce that it has retained PI Financial Corp. (“PI”) to trade the securities of Blackwolf on the TSX‐V for the purposes of maintaining an orderly market. In consideration of the services provided by PI, the Company will pay PI a monthly cash fee of $5,000 for a minimum term of six months and renewable thereafter. Blackwolf and PI are unrelated and unaffiliated entities. PI will not receive shares or options as compensation. The capital used for market making will be provided by PI.
QA/QC AND QUALIFIED PERSON
The analytical work on the Hyder project will be performed by MSALABS a certified, analytical services provider, at its laboratory in Langley, British Columbia. All samples will be prepared using procedure PRP-910 (dry, crush to 70% passing 2mm, riffle split off 250g, pulverize split to better than 85% passing 75 microns) and analyzed by method FAS-111 (30g fire assay with AAS finish) and IMS-130 (0.5g, aqua regia digestion and ICP-AES/MS analysis). Any samples containing >10g/t Au were reanalyzed using method FAS-415 (30g Fire Assay with gravimetric finish). Samples containing >100 ppm Ag and/or >1% Cu, Pb, & Zn are reanalyzed using method ICF-6 (0.2g, 4-acid digest and ore grade ICP-AES analysis). Samples containing >1000 g/t Ag were reanalyzed using method FAS-418 (30g fire assay with AAS finish) and samples containing >20% Pb were reanalyzed using method STI-8Pb (volumetric titration).
The reported work was completed using industry standard procedures, including a quality assurance/quality control (“QA/QC”) program consisting of the insertion of certified standard, blanks and duplicates into the sample stream. The Qualified Person has reviewed the data and detected no significant QA/QC issues.
Andrew Hamilton, P.Geo., Consultant to the Company, is a Qualified People under NI 43-101, will oversee the 2023 Program and has reviewed and approved the scientific and technical content of this release.
About Blackwolf Copper & Gold Ltd.
The Company holds a 100% interest in the high-grade Niblack copper-gold-zinc-silver VMS project, located adjacent to tidewater in southeast Alaska as well as five Hyder Area gold-silver and VMS properties in southeast Alaska and northwest British Columbia in the Golden Triangle, including the high-priority wide gold-silver veins at the Cantoo Property. Blackwolf’s founding vision is to be an industry leader in transparency, inclusion and innovation. Guided by our Vision and through collaboration with local and Indigenous communities and stakeholders, Blackwolf builds shareholder value through our technical expertise in mineral exploration, engineering and permitting. For more information on Blackwolf, please visit the Company’s website at www.blackwolfcopperandgold.com.
On behalf of the Board of Directors of Blackwolf Copper & Gold Ltd.
“Morgan Lekstrom” CEO and Director
For more information, contact:
Morgan Lekstrom 250-574-7350 (Mobile) 604-343-2997 (Office) rm@bwcg.ca
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.
Cautionary Statement Regarding Forward-Looking Information
All statements, trend analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding anticipated benefits of the Transaction, the closing of the Transaction, the Company’s position in the Golden Triangle and the Company bringing greater awareness to the Company and engaging with current and future shareholders are forward-looking statements. Although Blackwolf believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Blackwolf can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in Blackwolf’s periodic filings with Canadian securities regulators, and assumptions made with regard to: the ability of Blackwolf and Optimum (the “Companies”) to complete the Transaction; the Companies’ ability to secure the necessary shareholder, securityholder, legal and regulatory approvals required to complete the Transaction; and the Companies’ ability to achieve the synergies expected as a result of the Transaction. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Important factors that could cause actual results to differ materially from Blackwolf’s expectations include risks associated with the business of the Companies; risks related to the satisfaction or waiver of certain conditions to the closing of the Transaction; non-completion of the Transaction; risks related to reliance on technical information provided by the Companies; risks related to exploration and potential development of the Companies’ projects; business and economic conditions in the mining industry generally; fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risk factors as detailed from time to time and additional risks identified in the Companies’ filings with Canadian securities regulators on SEDAR in Canada (available at www.sedar.com). Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.
VANCOUVER, British Columbia, July 27, 2023 (GLOBE NEWSWIRE) — West Red Lake Gold Mines Ltd.(“West Red Lake Gold” or “WRLG” or the “Company”) (TSXV: WRLG)(OTCQB: WRLGF) is pleased to announce the appointment of independent director, Hugh Agro, to the Company’s board of Directors.
Mr. Agro, B.Sc., MBA, P.Eng.(non-practising) has over 35 years of leadership and business experience in the mining industry. Since 2017, Mr. Agro has served as President & CEO and Director of Revival Gold Inc., a U.S. focused gold exploration and development company. Prior to Revival Gold Inc., Mr. Agro co-founded Carbon Arc Capital Investments Inc., a private-equity backed investor in mining and metals and served as Executive Vice President, Strategic Development with Kinross Gold Corporation. At Kinross, Mr. Agro was a member of the Executive Leadership Team and responsible for strategic and operational leadership of Kinross’ growth initiatives including corporate development, global exploration and commercial activities in Russia. Previously, Mr. Agro held senior executive positions with Placer Dome and in investment banking with Deutsche Bank’s Global Metals and Mining Group. Mr. Agro has served on the Board and Audit Committees of Victoria Gold Corp., Chantrell Ventures and Americas Silver Corp. and currently serves as a Director of Fort Berens Estate Winery Ltd., an award-winning winery located in British Columbia, Canada. Mr. Agro holds a Bachelor of Science in Mining Engineering from Queen’s University (1989) and MBA Finance from UBC & London Business School (1997).
The appointment of Mr. Agro follows the resignation of Mr. Rob van Egmond from its Board of Directors effective 26, 2023. The Company would like to thank Mr. van Egmond for his contributions to the Company’s success to date.
Shane Williams, President and CEO comments, “We are delighted to welcome Hugh Agro to the West Red Lake Gold team. His qualifications and skillset expand the Board’s expertise as he brings a wealth of experience in executive leadership, strategy, technical expertise and finance. He will be a significant contributor to the expansion and development of West Red Lake Gold’s future.”
The Company has granted 400,000 stock options to Mr. Agro, which vest over a three year period with 25% vesting in 3 months from the grant date and 25% vesting on the first, second and third anniversary of the grant date at an exercise price of $0.69 and will be exercisable for a 5 year period expiring July 26, 2028.
In addition, 100,000 DSUs have been granted to Mr. Agro which will vest on the first anniversary of the grant date of July 26, 2023.
Further to its news release of July 6, 2023, the Company is pleased to announce that due to excess demand, it has increased its non-brokered flow-through private placement financing to $7,000,000 by the issuance of up to 10,000,000 flow-through shares at $0.70 per flow-through share (the “Offering”). The Offering is subject to TSXV approval. The Company intends to use the proceeds from the Offering for the exploration and advancement of its properties in Red Lake, Ontario.
ABOUT WEST RED LAKE GOLD MINES
West Red Lake Gold Mines Ltd. is a mineral exploration company that is publicly traded and focused on advancing and developing its flagship Madsen Gold Mine and the associated 47 Km2 highly prospective land package in the Red Lake district of Ontario. The highly productive Red Lake Gold District of Northwest Ontario, Canada has yielded over 30 million ounces of gold from high-grade zones and hosts some of the world’s richest gold deposits. WRLG also holds the wholly owned Rowan Property in Red Lake, with an expansive property position covering 31 Km2 including three past producing gold mines – Rowan, Mount Jamie and Red Summit.
ON BEHALF OF WEST RED LAKE GOLD MINES LTD.
“Shane Williams”
Shane Williams President & 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.
Certain statements contained in this news release constitute “forward-looking statements”. When used in this document, the words “anticipated”, “expect”, “estimated”, “forecast”, “planned”, and similar expressions are intended to identify forward-looking statements or information. These statements are based on current expectations of management, however, they are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this news release. Readers are cautioned not to place undue reliance on these statements. West Red Lake Gold Mines Ltd. does not undertake any obligation to revise or update any forward- looking statements as a result of new information, future events or otherwise after the date hereof, except as required by securities laws.
Costa Fuego Copper-Gold Project Preliminary Economic Assessment (PEA)1 Outlines One of World’s Lowest Capital Intensity, Major Copper Developments
Strong Economics: Costa Fuego PEA delivers using an 8% discount rate and long-term metal price assumptions of US$3.85/lb copper (Cu) and US$1,750/oz gold (Au)
Base-case post-tax Net Present Value (NPV8%) of US$1.10 Billion (approximately, within a range of US$733 Million to US$1.46 Billion) and Internal Rate of Return (IRR) of 21% (approximately, within a range of 17% to 25%)
Low Start-up Capital: US$1.05 Billion estimated, resulting in fast 3.5-year payback. Initial phases of open pit mining fully fund development of a bulk underground operation
Low Capital Intensity: One of the lowest capital intensities of global copper development projects
Approximately 112 ktpa Average CuEq2 Production Rate: Including 95 kt Cu and 49 koz Au during primary production (first 14 years) at C1 Cash Cost[3] of US$1.33/lb (estimated, net of by-product credits)
Initial Mine Life: 16-years with 1.41 Mt Cu and 718 koz Au produced for total revenue of approximately US$13.52 Billion and total free cash flow of approximately US$3.28 Billion (post-tax, after operating costs, capital costs, and royalties)
US$15 Million Investment Agreement with Osisko Gold Royalties
Strong endorsement from a leading North American royalty-streaming group with funds to be used to advance the Costa Fuego Pre-feasibility Studies (PFS), resource growth drilling programmes and general project advancement.
30,000 m drilling program across multiple targets to commence shortly
Single, Large Pit Scenario for Cortadera being studied in H2 2023
Strong Cash balance of $26 million
__________________________
1 The PEA is preliminary in nature and includes 3% of production feed from Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves (NI 43-101) or Ore Reserves (JORC 2012), and there is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves or Ore Reserves do not have demonstrated economic viability. References to “Mineral Reserves” in this announcement include Ore Reserves (JORC 2012). See page 39 for additional cautionary language. 2 The copper-equivalent (CuEq) annual production rate was based on the combined processing feed (across all sources) and used long-term commodity prices of: Copper US$3.85/lb, Gold US$1,750/oz, Molybdenum US$17/lb, and Silver US$21/oz; and estimated metallurgical recoveries for the production feed to the following processes: Concentrator (87% Cu, 56% Au, 37% Ag, 58% Mo), Oxide Leach (55% Cu only), & Low-grade Sulphide Leach (40% Cu only). 3 See page 16 for full non-IFRS measures disclaimer.
Hot Chili’s Managing Director and Chief Executive Officer Mr Christian Easterday is responsible for this announcement and has provided sign-off for release to the ASX and TSXV.
The Preliminary Economic Assessment referred to in this report is equivalent to a Scoping Study under JORC Code (2012) reporting guidelines. It has been undertaken for the purpose of initial evaluation of a potential development of the Costa Fuego Copper Project in Chile. It is a preliminary technical and economic study of the potential viability of the Costa Fuego Copper Project. The PEA outcomes, production target and forecast financial information referred to in the report are based on low level technical and economic assessments that are insufficient to support estimation of Ore Reserves. The PEA is presented in US dollars to an accuracy level of +/- 35%. While each of the modifying factors was considered and applied, there is no certainty of eventual conversion to Ore Reserves or that the production target itself will be realised. Further exploration and evaluation and appropriate studies are required before Hot Chili will be in a position to estimate any Ore Reserves or to provide any assurance of any economic development case. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the PEA.
Of the Mineral Resources scheduled for extraction in the PEA production plan, approximately 97% are classified as Indicated and 3% as Inferred during the 18-year evaluation period. The Company has concluded that it has reasonable grounds for disclosing a production target which includes a small amount of Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Inferred Mineral Resources comprise 2.5% of the production schedule in the first four years of operation. The viability of the development scenario envisaged in the PEA does not depend on the inclusion of Inferred Mineral Resources.
The Mineral Resources underpinning the production target in the PEA have been prepared by a competent person in accordance with the requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the ASX announcement of 31 March 2022. Hot Chili confirms that it is not aware of any new information or data that materially affects the information included in that release and that all material assumptions and technical parameters underpinning the estimate continue to apply and have not been changed.
To achieve the outcomes indicated in the PEA, including reaching Definitive Feasibility Study (“DFS”) stage, funding in the order of US$1.10 Billion will be required, including pre-production and working capital and assumed financing charges. Investors should note that that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key assumptions is that the funding for the Project will be available when required. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Hot Chili’s existing shares. It is also possible that Hot Chili could pursue other value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper Project, sale of further royalties and/or streaming rights, sale of non-committed offtake rights, and sale of non-core assets.
This report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PEA.
SUMMARY OF OPERATIONAL ACTIVITIES
Costa Fuego Copper-Gold Project Preliminary Economic Assessment (PEA)1 Outlines One of World’s Lowest Capital Intensity, Major Copper Developments
The Costa Fuego PEA has been prepared by Wood Australia Pty. Ltd. as an update to the historical Productora 2016 Pre-Feasibility Study (the “2016 PFS”). It follows significant regional consolidation and a near quadrupling of the Company’s resource inventory with the addition of the Cortadera porphyry resource, and the San Antonio high-grade satellite resource. The expanded resource base provided the opportunity to lift the scale of development for a combined development hub (Costa Fuego) and optimise infrastructure required to transport these resources to a proposed centralised processing plant at Productora. The PEA therefore presents a materially different project to that contemplated in the 2016 PFS.
The Costa Fuego PEA presents the largest copper development project listed on the Australian Securities Exchange (ASX). Already the ASX’s largest copper development resource, the PEA confirms Costa Fuego as having the largest potential copper production in the exchange’s development pipeline, (refer to ASX Announcement “Costa Fuego PEA Presentation”, released 28th June 2023, slide 51 “New Material Copper Supply”) at a time when the ASX is losing its significant copper-players, with Oz Minerals taken over by diversified-miner BHP and Newcrest under takeover by US-based Newmont.
The strong economics of Costa Fuego are described below in Table 1, using financial assumptions of an 8% discount rate and long-term metal price assumptions for the base case of US$3.85/lb copper (Cu) and US$1,750/oz gold (Au).
__________________________
1 The PEA is preliminary in nature and includes 3% of production feed from Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves (NI 43-101) or Ore Reserves (JORC 2012), and there is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves or Ore Reserves do not have demonstrated economic viability. References to “Mineral Reserves” in this announcement include Ore Reserves (JORC 2012). See page 19 for additional cautionary language.
Table 1. Copper Price Ranges: Lower-, Base-, and Upper-Case Scenarios1,2
Project Metric
Units
Copper Price
Lower(US$3.50/lb)
Base(US$3.85/lb)
Upper(US$4.20/lb)
Pre-Tax
NPV8%
US$M
1,046
1,540
2,029
IRR
%
19 %
24 %
29 %
Post-Tax
NPV8%
US$M
733
1,100
1,463
IRR
%
17 %
21 %
25 %
Annual Average Revenue
US$M
779
845
911
Annual Average EBITDA
US$M
384
445
506
Annual Average Free Cash Flow
US$M
226
271
315
Payback period (From First Production)
years
4.25
3.50
3.25
Post-Tax NPV8% /Start-up Capital
0.7
1.1
1.4
Within the base-case scenario of the PEA, the positive economics shown in Table 2 outline a project that leverages its low-elevation advantage to achieve low start-up capital costs and consequently one of the lowest capital intensities of global copper development projects at this scale. Annual average revenue of around US$845 Million allow the project to achieve a fast 3.5-year payback on the back of initial open pit mining that fully funds the project expansion and development of underground bulk mining.
______________________________
1 Certain terms of measurement used in this news release are not performance measures reported in accordance with International Financial Reporting Standards (“IFRS”). Non-IFRS terms measures used such as “Cash Cost”, “All-in Sustaining Costs”, “C1”, “Expansion Costs”, “Free Cashflow” and “All-in costs” are included because these statistics are measures that management uses internally to evaluate performance, to assess how the Project ranks against its peer projects and to assess the overall effectiveness and efficiency of the contemplated mining operations. These performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
2 The PEA is preliminary in nature and includes 3% of production feed from Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves, and there is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. See page 19 for additional cautionary language.
Table 2: Costa Fuego PEA1Economic Highlights2– Base Case
Project Metric
Units
Estimated Value
Financial Measures
Pre-tax
Cu US$3.85/lb
NPV8%
US$M
1,540
IRR
%
24
Post-tax
Cu US$3.85/lb
NPV8%
US$M
1,100
IRR
%
21
Payback period (from start of operations)
years
3.5
Open Pit Strip Ratio
W/P
1.8
Post-tax NPV/Start-up Capex
Ratio
1.1
Capital Costs Costs2
Total Pre-production Capital Expenditure
US$M
1,046
Expansion
US$M
708
Sustaining
US$M
1,014
Total
US$M
2,768
Operating Costs2
C1
$/lb Cu
1.33
Total Cash Cost (net by-products and including royalties)
$/lb Cu
1.43
All-in-Sustaining Cost
$/lb Cu
1.74
All-In Cost LOM
$/lb Cu
2.31
Mine Life & Metal Production
Primary Mine Production Including Ramp-up
years
14
Mine Life (Life of Mine Processing)
years
16
Primary Mine Production – Average Annual Copper Equivalent Metal[9]
kt
112
Primary Mine Production – Average Annual Copper Metal
kt
95
Primary Mine Production – Average Annual Gold Metal
koz
49
Following the pre-production Capital Cost of around US$1.05 Billion, operations are expanded to access the remaining deposits at an estimated Capital Cost of US$708 Million, with Sustaining Capital Costs bringing the total project Capital Cost to around US$2.77 Billion. Capital Cost incorporated a 20% contingency, with further contingency applied to the mining pit shells, which were developed using a copper price of US$3.30/lb to hedge against downside price risk impacting the production feed inventory.
Operating costs for Costa Fuego average (estimated net of by-products) a C1 Cash Cost of US$1.33/lb of copper, with an approximate average production rate of 112 ktpa CuEq4: Including 95 kt Cu and 49 koz Au during primary production (first 14 years).
__________________________
1 The PEA is preliminary in nature and includes 3% of production feed from Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves, and there is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. See page 39 for additional cautionary language.
2 Certain terms of measurement used in this news release are not performance measures reported in accordance with International Financial Reporting Standards (“IFRS”). See page 40 for full non-IFRS measures disclaimer.
3 Includes Payability
4 The copper-equivalent (CuEq) annual production rate was based on the combined processing feed (across all sources) and used long-term commodity prices of: Copper US$3.85/lb, Gold US$1,750/oz, Molybdenum US$17/lb, and Silver US$21/oz; and estimated metallurgical recoveries for the production feed to the following processes: Concentrator (87% Cu, 56% Au, 37% Ag, 58% Mo), Oxide Leach (55% Cu only), & Low-grade Sulphide Leach (40% Cu only).
The Costa Fuego life-of-mine processing runs for 16-years, producing an estimated 1.41 Mt of copper and 718 koz of gold (plus 22 kt of molybdenum and 1.7 Moz of silver) for total revenue of approximately US$13.52 Billion and total free cash flow of approximately US$3.28 Billion (post-tax, after operating costs, capital costs, and royalties)
Revenues from the PEA metal payload are described in Table 3 below, with 85% of revenue deriving from copper. Costa Fuego is highly leveraged to the copper price, with analysis identifying that for every US$0.10/lb increase above US$ 3.85/lb Cu price, US$100 Million (approximately) is added in post-tax NPV8%
Table 3: Costa Fuego Revenue Breakdown1
LOM Revenue Contribution
Revenue (US$M)
% of Total
Copper in Concentrate
10,342
76 %
Copper Cathode
1,218
9 %
Gold
1,132
8 %
Molybdenum
799
6 %
Silver
32
0.2 %
Total
13,523
100 %
Hot Chili has been systematic in its approach to de-risking the project with over a decade of work in consolidating the deposits and securing infrastructure easements and surface rights. Costa Fuego is one of the very few projects globally that holds a granted water permit, approval for power connection to the national grid and the necessary easement corridors for water and power infrastructure that would support the advancement of the project to construction.
30,000 m drilling program across multiple targets to commence shortly
The Company plans to rapidly begin drilling high priority growth targets proximal to the current resource. Drilling will also test promising greenfield targets as shown in Figure 1. Further strategic regional consolidation options are concurrently being pursued, with mineral resource estimate upgrades expected in Q4 2023 and H1 2025.
_________________________________
1 Includes Payability
Figure 1. Exploration Growth Targets Across the Costa Fuego Project
Figure 1. Exploration Growth Targets Across the Costa Fuego Project (CNW Group/Hot Chili Limited)
Figure 2. Cortadera Porphyry Expansion Targets1
Figure 2. Cortadera Porphyry Expansion Targets (CNW Group/Hot Chili Limited)
Figure 2. Cortadera Porphyry Expansion Targets (CNW Group/Hot Chili Limited)
______________________________________
1 Refer to announcement dated 28th August 2019 for further information regarding Induced Polarisation (IP/MT– MIMDAS) Survey. * Resource Copper Equivalent (CuEq) considers assumed commodity prices and average metallurgical recoveries for the Mineral Resource from testwork. See Page 43 for complete Mineral Resource disclosure of Costa Fuego.
Single, Large Pit Scenario for Cortadera being studied in H2 2023
The Company is investigating a large single open pit scenario for Cortadera (no underground block cave) with the potential to materially increase processing feed inventory and mine-life.
This scenario would necessitate a second PEA, studied while refining of the model inputs for metallurgy, geotechnical engineering and hydrogeology, to be incorporated into the Pre-feasibility. Once both PEA scenarios are assessed, the Company would select a single scenario to complete the final stages of its PFS for Costa Fuego, which is expected to be completed by H2 2024.
SUMMARY OF CORPORATE ACTIVITIES
US$15 Million Investment Agreement with Osisko Gold Royalties
The significant investment by Osisko provides strong endorsement from one of North America’s leading royalty-streaming groups. The key elements of the royalty agreement, which closed in late July, are:
US$15 million in funds for growth and development with the investment (Royalty Consideration) to be used to advance the Costa Fuego Pre-Feasibility Studies (PFS), resource growth drilling programmes and for the general advancement of the Project
Clear “look-through” value given the Osisko NSR is equivalent to a 1.12% CuEq1 NSR royalty across payable metals for US$15 million and Hot Chili’s market capitalisation at the time of announcing the royalty was US$80 million
Buyback rights if a change of control event occurs prior to the fourth anniversary of Closing. The Osisko NSR can be reduced to 0.5% NSR royalty on copper and 2.5% NSR royalty on gold
Osisko to have a Right of First Offer (ROFO) with respect to the sale of any future royalty, stream, or similar interests by Hot Chili
Development and Growth Funding
The Investment by Osisko has strengthened the Company’s cash position to approximately A$26 million and the project is now fully funded for the next 12 to 18 months to deliver the next steps in its growth and development plan, (refer Figure 3) including:
Commencement of 30,000 m drill program – preparations well-advanced, drilling operations set to commence in the coming week.
Completion of Costa Fuego resource upgrade by late 2023.
Delivery of Costa Fuego PFS by H2 2024 – The Company has already considerably advanced its PFS (approximately 80% complete) with minimal expenditure required for completion.
____________________________
1 CuEq considers assumed commodity prices and average metallurgical recoveries from test work. See qualifying statements on page 19.
Figure 3. Costa Fuego Project Roadmap1
Figure 3. Costa Fuego Project Roadmap (CNW Group/Hot Chili Limited)
Figure 4. Location of the Costa Fuego Project Regionally in Relation to Key Infrastructure
Figure 4. Location of the Costa Fuego Project Regionally in Relation to Key Infrastructure (CNW Group/Hot Chili Limited)
______________________________
1 The Mining Project delivery schedule mentioned herein is subject to various risks inherent to the mining industry, and external factors beyond the control of the project stakeholders, including but not limited to, geological and processing challenges, government policies, permits, or regulations, fluctuations in commodity prices, or market conditions. These external factors can impact the Project timeline and potentially result in delays. The delivery schedule provided is based on the best estimates and assumptions available at the time of its creation, and the Project team is committed to minimising disruptions and implementing mitigation measures to the best of their abilities. However, the effectiveness of these measures in avoiding delays cannot be guaranteed.
Drill Results Reported for Costa Fuego in Quarter 2 2023
No further drilling has been completed in Q2, subsequently there are no details to report.
Additional ASX Disclosure Information
ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.
ASX Listing Rule 5.3.3 – Schedule of Mineral Tenements as at 30 June 2023
The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.
ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.
ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totaled $151,667. This is comprised of directors’ salaries and superannuation of $151,667.
Health, Safety, Environment and Quality
Field operations during the period included geological reconnaissance activities, core-testing and logging, field mapping, and sampling exercises across the Cortadera, El Fuego and Productora landholdings. El Fuego field activities are run from the Cortadera operations centre and safety statistics are combined for reporting.
No safety incidents were recorded during the quarter. The Company’s HSEQ quarterly performance is summarised in Table 3 below.
Hot Chili’s sustainability framework ensures an emphasis on business processes that target long-term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems. There is no greater importance than ensuring the safety of our people and their families.
Table 3 HSEQ Quarter 1 2023 Performance and Statistics
Deposit
Productora
Cortadera
Las Cañas
Timeframe
Q2 2023
Cum.
Q2 2023
Cum.
Q2 2023
Cum.
LTI events
0
0
0
6
0
1
NLTI events
0
2
0
5
0
1
Days lost
0
0
0
152
0
23
LTIFR index
0
0
0
24
0
170
ISR index
0
0
0
596
0
3,898
IFR Index
0
39
0
43
0
339
Thousands of manhours¹
2.1
51.2
7.9
257
0
5.9
Incidents on materials and assets
0
0
0
0
0
0
Environmental incidents
0
0
0
0
0
0
Headcount²
4
11
15
37
0
21
Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR per million-manhours. Safety performance is reported on a monthly basis to the National Mine Safety Authority on a standard E-100 form; (1) manhours; (2) Average monthly headcount (3) Cumulative statistics since April 2019.
Tenement Changes During the Quarter
During the Quarter, the Company has renewed the mining exploration concessions Porfiada I (replaces Porfiada I, which expired on June, 14th, 2023), Porfiada II (replaces Porfiada II, which expired on July, 5th, 2023), Porfiada III (replaces Porfiada III, which expired on June, 15th, 2023) and Porfiada IV (replaces Porfiada IV, which expired on July, 5th, 2023).
The Company’s existing tenements are detailed in the table below.
Table 4. Current Tenement (Patente) Holdings in Chile as at 30 June 2023
Cortadera Project
License ID
HCH % Held
HCH % Earning
Area (ha)
Agreement Details
MAGDALENITA 1/20
100% Frontera SpA
100
ATACAMITA 1/82
100% Frontera SpA
82
AMALIA 942 A 1/6
100% Frontera SpA
53
PAULINA 10 B 1/16
100% Frontera SpA
136
PAULINA 11 B 1/30
100% Frontera SpA
249
PAULINA 12 B 1/30
100% Frontera SpA
294
PAULINA 13 B 1/30
100% Frontera SpA
264
PAULINA 14 B 1/30
100% Frontera SpA
265
PAULINA 15 B 1/30
100% Frontera SpA
200
PAULINA 22 A 1/30
100% Frontera SpA
300
PAULINA 24 1/24
100% Frontera SpA
183
PAULINA 25 A 1/19
100% Frontera SpA
156
PAULINA 26 A 1/30
100% Frontera SpA
294
PAULINA 27A 1/30
100% Frontera SpA
300
CORTADERA 1 1/200
100% Frontera SpA
200
CORTADERA 2 1/200
100% Frontera SpA
200
CORTADERA 41
100% Frontera SpA
1
CORTADERA 42
100% Frontera SpA
1
LAS CANAS 16
100% Frontera SpA
1
LAS CANAS 1/15
100% Frontera SpA
146
CORTADERA 1/40
100% Frontera SpA
374
LAS CANAS ESTE 2003 1/30
100% Frontera SpA
300
CORROTEO 1 1/260
100% Frontera SpA
260
CORROTEO 5 1/261
100% Frontera SpA
261
ROMERO 1 AL 31
100% Frontera SpA
31
PURISIMA
100% Frontera SpA
20
NSR 1.5%
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited
Productora Project
License ID
HCH % Held
HCH % Earning
Area (ha)
Agreement Details
FRAN 1, 1-60
80% SMEA SpA
220
FRAN 2, 1-20
80% SMEA SpA
100
FRAN 3, 1-20
80% SMEA SpA
100
FRAN 4, 1-20
80% SMEA SpA
100
FRAN 5, 1-20
80% SMEA SpA
100
FRAN 6, 1-26
80% SMEA SpA
130
FRAN 7, 1-37
80% SMEA SpA
176
FRAN 8, 1-30
80% SMEA SpA
120
FRAN 12, 1-40
80% SMEA SpA
200
FRAN 13, 1-40
80% SMEA SpA
200
FRAN 14, 1-40
80% SMEA SpA
200
FRAN 15, 1-60
80% SMEA SpA
300
FRAN 18, 1-60
80% SMEA SpA
273
FRAN 21, 1-46
80% SMEA SpA
226
ALGA 7A, 1-32
80% SMEA SpA
89
ALGA VI, 5-24
80% SMEA SpA
66
MONTOSA 1-4
80% SMEA SpA
35
NSR 3%
CHICA
80% SMEA SpA
1
ESPERANZA 1-5
80% SMEA SpA
11
LEONA 2A 1-4
80% SMEA SpA
10
CARMEN I, 1-50
80% SMEA SpA
222
CARMEN II, 1-60
80% SMEA SpA
274
ZAPA 1, 1-10
80% SMEA SpA
100
ZAPA 3, 1-23
80% SMEA SpA
92
ZAPA 5A, 1-16
80% SMEA SpA
80
ZAPA 7, 1-24
80% SMEA SpA
120
CABRITO, CABRITO 1-9
80% SMEA SpA
50
CUENCA A, 1-51
80% SMEA SpA
255
CUENCA B, 1-28
80% SMEA SpA
139
CUENCA C, 1-51
80% SMEA SpA
255
CUENCA D
80% SMEA SpA
3
CUENCA E
80% SMEA SpA
1
CHOAPA 1-10
80% SMEA SpA
50
ELQUI 1-14
80% SMEA SpA
61
LIMARÍ 1-15
80% SMEA SpA
66
LOA 1-6
80% SMEA SpA
30
MAIPO 1-10
80% SMEA SpA
50
TOLTÉN 1-14
80% SMEA SpA
70
CACHIYUYITO 1, 1-20
80% SMEA SpA
100
CACHIYUYITO 2, 1-60
80% SMEA SpA
300
CACHIYUYITO 3, 1-60
80% SMEA SpA
300
LA PRODUCTORA 1-16
80% SMEA SpA
75
ORO INDIO 1A, 1-20
80% SMEA SpA
82
AURO HUASCO I, 1-8
80% SMEA SpA
35
URANIO, 1-70
0 %
0 %
350
25-year Lease AgreementUS$250,000 per year (average for the 25 year term); plus 2% NSR all but gold; 4% NSR gold; 5% NSR non-metallic
JULI 9, 1-60
80% SMEA SpA
300
JULI 10, 1-60
80% SMEA SpA
300
JULI 11 1/60
80% SMEA SpA
300
JULI 12 1/42
80% SMEA SpA
210
JULI 13 1/20
80% SMEA SpA
100
JULI 14 1/50
80% SMEA SpA
250
JULI 15 1/55
80% SMEA SpA
275
JULI 16, 1-60
80% SMEA SpA
300
JULI 17, 1-20
80% SMEA SpA
100
JULI 19
80% SMEA SpA
300
JULI 20
80% SMEA SpA
300
JULI 21 1/60
80% SMEA SpA
300
JULI 22
80% SMEA SpA
300
JULI 23 1/60
80% SMEA SpA
300
JULI 24, 1-60
80% SMEA SpA
300
JULI 25
80% SMEA SpA
300
JULI 27 1/30
80% SMEA SpA
150
JULI 27 B 1/10
80% SMEA SpA
50
JULI 28 1/60
80% SMEA SpA
300
JULIETA 5
80% SMEA SpA
200
JULIETA 6
80% SMEA SpA
200
JULIETA 7
80% SMEA SpA
100
JULIETA 8
80% SMEA SpA
100
JULIETA 9
80% SMEA SpA
100
JULIETA 10 1/60
80% SMEA SpA
300
JULIETA 11
80% SMEA SpA
300
JULIETA 12
80% SMEA SpA
300
JULIETA 13, 1-60
80% SMEA SpA
298
JULIETA 14, 1-60
80% SMEA SpA
269
JULIETA 15, 1-40
80% SMEA SpA
200
JULIETA 16
80% SMEA SpA
200
JULIETA 17
80% SMEA SpA
200
JULIETA 18, 1-40
80% SMEA SpA
200
ARENA 1 1-6
80% SMEA SpA
40
ARENA 2 1-17
80% SMEA SpA
113
ZAPA 1 – 6
80% SMEA SpA
6
GSR 1%
JULIETA 1-4
80% SMEA SpA
4
Note. SMEA SpA is subsidiary company – 80% owned by Hot Chili Limited, 20% owned by CMP (Compañía Minera del Pacífico)
El Fuego Project
Licence ID
HCH % Held
HCH % Earning
Area (ha)
Exploration and Expenditure Commitment- Payments
Santiago 21 al 36
90% Frontera SpA
76
90% (HCH)-10% (Arnaldo del Campo) JV.6-year term.USD 300,000 already paid.USD 300,000 to be paid by September 7, 2023USD 6,600,000 final exercise payment to be paid by September 7, 2024.
Santiago 37 al 43
90% Frontera SpA
26
Santiago A, 1 al 26
90% Frontera SpA
236
Santiago B, 1 al 20
90% Frontera SpA
200
Santiago C, 1 al 30
90% Frontera SpA
300
Santiago D, 1 al 30
90% Frontera SpA
300
Santiago E, 1 al 30
90% Frontera SpA
300
Prima Uno
90% Frontera SpA
1
Prima Dos
90% Frontera SpA
2
Santiago 15 al 19
90% Frontera SpA
25
San Antonio 1 al 5
90% Frontera SpA
25
Santiago 1 AL 14 Y 20
90% Frontera SpA
75
Mercedes 1 al 3
90% Frontera SpA
50
Kreta 1 al 4
90% Frontera SpA
16
Mari 1 al 12
90% Frontera SpA
64
PORFIADA VII
90% Frontera SpA
300
PORFIADA VIII
90% Frontera SpA
300
PORFIADA IX
90% Frontera SpA
300
PORFIADA X
90% Frontera SpA
200
PORFIADA A
90% Frontera SpA
200
PORFIADA B
90% Frontera SpA
300
PORFIADA C
90% Frontera SpA
300
PORFIADA D
90% Frontera SpA
300
PORFIADA E
90% Frontera SpA
300
PORFIADA F
90% Frontera SpA
300
PORFIADA G
90% Frontera SpA
200
CORTADERA 1
100% Frontera SpA
200
CORTADERA 2
100% Frontera SpA
200
CORTADERA 3
100% Frontera SpA
200
CORTADERA 4
100% Frontera SpA
200
CORTADERA 5
100% Frontera SpA
200
CORTADERA 6
100% Frontera SpA
300
CORTADERA 7, 1-20
100% Frontera SpA
93
SAN ANTONIO 1
100% Frontera SpA
200
SAN ANTONIO 2
100% Frontera SpA
200
SAN ANTONIO 3
100% Frontera SpA
300
SAN ANTONIO 4
100% Frontera SpA
300
SAN ANTONIO 5
100% Frontera SpA
300
DORO 1
100% Frontera SpA
200
DORO 2
100% Frontera SpA
200
DORO 3
100% Frontera SpA
300
SANTIAGO Z 1/30
100% Frontera SpA
300
100% HCH Purchase Option AgreementUSD 200,000 already paid.USD 400,000 to be paid by January 22, 2024.NSR 1.5%
PORFIADA I
100% Frontera SpA
300
PORFIADA II
100% Frontera SpA
300
PORFIADA III
100% Frontera SpA
300
PORFIADA IV
100% Frontera SpA
300
PORFIADA V
100% Frontera SpA
200
PORFIADA VI
100% Frontera SpA
100
SAN JUAN SUR 1/5
90% Frontera SpA
10
90% (HCH) Option AgreementUSD 150,000 already paidUSD 4,000,000 by June 1, 2024.
SAN JUAN SUR 6/23
90% Frontera SpA
90
CHILIS 1
100% Frontera SpA
200
CHILIS 2
100% Frontera SpA
200
CHILIS 3
100% Frontera SpA
100
CHILIS 4
100% Frontera SpA
200
CHILIS 5
100% Frontera SpA
200
CHILIS 6
100% Frontera SpA
200
CHILIS 7
100% Frontera SpA
200
CHILIS 8
100% Frontera SpA
200
CHILIS 9
100% Frontera SpA
300
CHILIS 10
100% Frontera SpA
200
CHILIS 11
100% Frontera SpA
200
CHILIS 12
100% Frontera SpA
300
CHILIS 13
100% Frontera SpA
300
CHILIS 14
100% Frontera SpA
300
CHILIS 15
100% Frontera SpA
300
CHILIS 16
100% Frontera SpA
300
CHILIS 17
100% Frontera SpA
300
CHILIS 18
100% Frontera SpA
300
SOLAR 1
100% Frontera SpA
300
SOLAR 2
100% Frontera SpA
300
SOLAR 3
100% Frontera SpA
300
SOLAR 4
100% Frontera SpA
300
SOLAR 5
100% Frontera SpA
300
SOLAR 6
100% Frontera SpA
300
SOLAR 7
100% Frontera SpA
300
SOLAR 8
100% Frontera SpA
300
SOLAR 9
100% Frontera SpA
300
SOLAR 10
100% Frontera SpA
300
SOLEDAD 1
100% Frontera SpA
300
SOLEDAD 2
100% Frontera SpA
300
SOLEDAD 3
100% Frontera SpA
300
SOLEDAD 4
100% Frontera SpA
300
CF 1
100% Frontera SpA
300
CF 2
100% Frontera SpA
300
CF 3
100% Frontera SpA
300
CF 4
100% Frontera SpA
300
CF 5
100% Frontera SpA
300
CHAPULIN COLORADO 1/3
100% Frontera SpA
3
PEGGY SUE 1/10
100% Frontera SpA
100
DONA FELIPA
100% Frontera SpA
50
ELEANOR RIGBY 1/10
100% Frontera SpA
100
CF 6
100% Frontera SpA
200
CF 7
100% Frontera SpA
100
CF 8
100% Frontera SpA
200
CF 9
100% Frontera SpA
100
MARI 1
100% Frontera SpA
300
MARI 6
100% Frontera SpA
300
MARI 8
100% Frontera SpA
300
FALLA MAIPO 2 1/10
100% Frontera SpA
99
FALLA MAIPO 3 1/8
100% Frontera SpA
72
FALLA MAIPO 4 1/26
100% Frontera SpA
26
ARBOLEDA 7 1/2
Option AMSA
234
100% HCH Purchase Option AgreementUSD 1,500,000 to be paid by November 15, 2024
NAVARRO 1 41/60
Option AMSA
81
NAVARRO 2 21/37
Option AMSA
78
MONICA 21/40
Option AMSA
85
MONICA 41/52
Option AMSA
39
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited
Qualifying Statements
Costa Fuego Combined Mineral Resource (Effective Date 31st March 2022)
Costa Fuego Combined Mineral Resource (Effective Date 31st March 2022) (CNW Group/Hot Chili Limited)
1 Mineral Resources are reported on a 100% Basis – combining Mineral Resource estimates for the Cortadera, Productora and San Antonio deposits. All figures are rounded, reported to appropriate significant figures, and reported in accordance with the Joint Ore Reserves Committee Code (2012) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definition, as required by National Instrument 43-101.
2 The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón Limitada (a 100% subsidiary of Hot Chili Limited), and 20% owned by CMP Productora (a 100% subsidiary of Compañía Minera del Pacífico S.A (CMP)).
3 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón Limitada, which is a 100% subsidiary of Hot Chili Limited.
4 The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón Limitada, which is a 100% subsidiary of Hot Chili Limited) and has an Option Agreement with a private party to earn a 90% interest.
5 The Mineral Resource estimates in the tables above form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.
6 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera and San Antonio – Weighted recoveries of 82% Cu, 55% Au, 82% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). Productora – Weighted recoveries of 84% Cu, 47% Au, 47% Mo and 0% Ag (not reported). CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm). Costa Fuego – Recoveries of 83% Cu, 53% Au, 69% Mo and 23% Ag. CuEq(%) = Cu(%) + 0.52 x Au(g/t) + 0.00039 x Mo(ppm) + 0.0027 x Ag(g/t).
7 Resource Copper Equivalent (CuEq) grades are calculated based on the formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu recovery). The base case cut-off grade for mineral resources considered amenable to open pit extraction methods at the Cortadera, Productora and San Antonio deposits is 0.21% CuEq while the cut-off grade for mineral resources considered amenable to underground extraction methods at the Cortadera deposit is 0.3% CuEq.
8 Mineral resources are not mineral reserves and do not have demonstrated economic viability. These Mineral Resource estimates include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration.
9 The effective date of the estimate of Mineral Resources is March 31st, 2022. Refer to ASX Announcement “Hot Chili Delivers Next Level of Growth” (“Resource Announcement”) for JORC Code Table 1 information related to the Costa Fuego Resource Estimate (MRE) by Competent Person Elizabeth Haren, constituting the MREs of Cortadera, Productora and San Antonio (which combine to form Costa Fuego). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in the Resource Announcement and all material assumptions and technical parameters stated for the Mineral Resource Estimates in the Resource Announcement continue to apply and have not materially changed.
10 Hot Chili Limited is not aware of political, environmental or other risks that could materially affect the potential development of the Mineral Resources
Competent Person’s Statement- Exploration Results
Exploration information in this Report is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Disclaimer
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 report.
This report is to be used by the recipient for informational purposes only and does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of Hot Chili Limited (“Hot Chili” or the “Company”). Each recipient should perform its own independent investigation and analysis of Hot Chili, and the information contained in this report is not a substitute therefore. Hot Chili makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this report or in any other written or oral communication transmitted to any recipient by any party. Except for liability that cannot be disclaimed by law, by accepting this Document, the recipient agrees that neither Hot Chili nor any of its officers, directors, employees, or representatives has any liability for any representations or warranties, express or implied, contained in, or for any omissions from, this report or any such other written or oral communication from any person.
Certain information contained herein is based on, or derived from, information provided by independent third-party sources. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information.
This report should not be considered as a recommendation from any person to purchase any securities. Each person for whom this report is made available should consult its own professional advisors in making its own independent investigations and assessment and, after making such independent investigations and assessments, as it deems necessary, in determining whether to proceed with any investment in the Company.
Technical Report
For readers to fully understand the information in this report, they should read the PEA Technical Report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) (to be available on www.sedar.com or at www.hotchili.net.au within 45 days of June 30, 2023) in its entirety, including all qualifications, assumptions, limitations and exclusions that relate to the information set out in this report that qualifies the technical information contained in the PEA. The PEA is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this report is subject to the assumptions and qualifications contained in the PEA.
Qualified Persons – NI 43-101
The PEA was compiled by Wood Australia Pty Ltd with contributions from a team of independent Qualified Persons within the meaning of Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43 -101”). The scientific and technical information contained in this report pertaining to Coast Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101:
Ms Elizabeth Haren (MAUSIMM (CP) & MAIG) of Haren Consulting – Mineral Resource Estimate
Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd – Metallurgy
Mr Piers Wendlandt (PE) of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis
Farzard Kossari (PE) of Wood Pty Ltd – Cost Estimation
Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
The independent qualified persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information.
Disclosure regarding mine planning and infrastructure has been reviewed and approved by Mr Grant King, FAUSIMM, Hot Chili’s Chief Operations Officer, and a Qualified Person within the meaning of NI43-101.
Competent Persons – JORC
The information in this report that relates to Mineral Resources for the Costa Fuego Project is based on information compiled by:
Ms Elizabeth Haren (MAUSIMM (CP) & MAIG) of Haren Consulting – Mineral Resource Estimate
Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd – Metallurgy
Mr Piers Wendlandt (PE) of Wood Pty Ltd – Market Studies and Contracts, and Economic Analysis
Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
Ms Haren, Mr David, Mr Wendlandt, Mr Kossari and Mr von Wielligh have sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and as Qualified Persons under NI43-101.
For further information on the Costa Fuego Project, refer to the technical report titled “NI 43-101 Resource Report for the Costa Fuego Copper Project Located in Atacama, Chile”, dated May 13, 2022 with an effective date of March 31, 2022, which is available for review on SEDAR (www.sedar.com) under Hot Chili’s issuer profile.
Cautionary Note for U.S. Investors Concerning Mineral Resources
National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Technical disclosure contained in this report has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission (“SEC”) and resource information contained in this press release may not be comparable to similar information disclosed by domestic United States companies subject to the SEC’s reporting and disclosure requirements.
All amounts in this report are in U.S. dollars unless otherwise noted.
Non IFRS Financial Performance Measures
“Total Cash Cost”, “All-in Sustaining Cost”, “All-in cost LOM”, “C1”, and “Free Cashflow” are not performance measures reported in accordance with International Financial Reporting Standards (“IFRS”). These performance measures are included because these statistics are key performance measures that management uses to monitor performance. Management uses these statistics to assess how the Costa Fuego Project compares against its peer projects and to assess the overall effectiveness and efficiency of the contemplated mining operations. These performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
Scientific and Technical Information
The scientific and technical information contained in this document was reviewed and approved by Ms Kirsty Sheerin, a Member of the Australian Institute of Geoscientists, Hot Chili’s Resource Development Manager and a qualified person for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Ms Sheerin has undertaken extensive data verification and is satisfied with the exploration, sampling, security, and QA/QC procedures employed by Hot Chili for Costa Fuego and that their results are sufficient to produce data suitable for the purposes described in the technical report titled “NI 43-101 Resource Report for the Costa Fuego Copper Project Located in Atacama, Chile”, dated May 13, 2022 with an effective date of March 31, 2022, as well as for public reporting purposes subsequent to the technical report.
Sampling, Analysis and Data Verification
A fixed cone splitter was used to create two nominal 12.5% samples (Sample “A” and “B”), along with the large bulk reject sample. The “A” sample is always taken from the same sampling chute, and comprises the primary sample submitted to the laboratory. The “B” samples were retained for use as the field duplicate sample. The coarse residues were collected into large plastic bags and were retained on the ground near the drillhole collar, generally in rows of 50 bags.
All RC drillhole sampling was executed at two metre intervals for Costa Fuego. Within logged mineralisation zones, the 2-metre sample (“A” sample) was submitted. Outside the main mineralised zones (as determined by the logging geologist), 4-metre composites were created from scoops of 2-metre sample residues over this interval. The composited 4-metre samples were analysed first and, if required, the individual and original 2-metre “A” samples comprising this 4-metre interval were sent for analysis. This ensured that no mineralisation was missed while minimising analytical costs. The same procedure was applied to RC drilling undertaken across Productora, however, drillhole sampling was executed at 1-metre intervals.
At Costa Fuego, the majority of diamond core has had systematic half-core sampled at 2-metre intervals. Half-core was chosen as the preferred sampling method to ensure a representative sample was submitted for analysis, while also retaining half-core for review of lithology and mineralisation, and for further test work as required.
Prior to the cutting and sample process, two additional samples are also taken for Costa Fuego being Density and Geotechnical samples.
Density samples are selected every 30 metres if the geological conditions allow it and are provided to the laboratory for testwork.
Geotechnical samples are taken for tests including triaxial (one sample per 250 m) and uniaxial tests (one sample per 50 m).
Once assigned a sample number, individual samples to be sent to ALS laboratories were sealed using a staple gun and accompanied by three identical sample tickets (one stapled to plastic bag to identify any tampering/breakage of seal prior to opening at the laboratory in preparation and another placed in the bag). Any broken staple seals on samples were to be notified by ALS to Hot Chili. No sealed bags were reported as being opened or broken by ALS.
For both RC and diamond samples, sample bags were placed inside larger plastic bags and delivered by a dedicated truck to the ALS analytical laboratory in Coquimbo (Chile) for sample preparation and routine analysis.
Following analysis at ALS, the RC and diamond drilling coarse rejects were returned to site and stored in sequence in plastic bags under shade cloth at Hot Chili’s nearby Productora core farm. The laboratory pulps were returned and stored at the Productora core farm where they are stored in organised, dry and safe storage containers.
Hot Chili has strict chain of custody security procedures for all samples sent to and from the analytical laboratories.
The ALS analytical laboratory in Coquimbo (Chile) completed all sample preparation and specific gravity test work, while ALS Santiago (Chile) completed all gold analysis, and ALS Lima (Peru) completed all other multielement analysis for the Cortadera assays used in the resource estimate. Hot Chili has implemented rigorous sample preparation and analytical procedures for both RC and diamond core samples, following consultation with ALS in Chile, to ensure that mineralised assays were reported with a high degree of confidence and a wide range of appropriate commodities were assessed.
Samples have been analysed by certified laboratories in Chile and Lima, Peru by standard analytical techniques including:
Copper, silver and molybdenum were analysed by 4-acid digestion (Hydrochloric-Nitric- Perchloric-Hydrofluoric) followed by evaluation using Inductively Coupled Plasma – Optical Emission Spectrometry (“ICP-OES”) or Atomic Absorption Spectrometry (“AAS”);
Copper results > 10,000 ppm were analysed by “ore grade” method Cu-AA62 (upper limit 40% Cu);
Samples within the oxide and transitional weathering domains (as determined by geologists’ logging) were analysed for “soluble copper” (upper limit 10% Cu) to detect the leachability of copper oxide minerals within these domains; and
Gold was analysed by 30 or 50 g lead-collection Fire Assay, followed by ICP-OES or AAS.
The verification of input data included the use of company QA/QC blanks and reference material, field and laboratory duplicates, umpire laboratory checks and independent sample and assay verification.
The Qualified Person has assessed the drillhole database validation work and QAQC undertaken by Hot Chili and was satisfied the input data could be relied upon for the estimation of Indicated and Inferred Classified Mineral Resources.
All laboratories used are independent of Hot Chili and the work is performed under a commercial arrangement.
Forward Looking Statements
This report contains certain statements that are “forward-looking information” within the meaning of Canadian securities legislation and Australian securities legislation (each, a “forward-looking statement”). Forward-looking statements reflect the Company’s current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company’s control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this report should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “may”, “plan”, “potential”, “project”, “should”, “will”, “would” and similar expressions are intended to identify forward-looking statements.
The forward-looking statements within this report are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this report. In addition, this report may contain forward-looking statements attributed to third-party industry sources, the accuracy of which has not been verified by the Company.
In this report, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; expected cash inflows; the ability of the Company to expand mineral resources beyond current mineral resource estimates; the results and impacts of current and planned drilling to convert inferred mineral resources to indicated, to extend mineral resources and to identify new deposits; the timing and results of the planned 30,000m drill program; the results of planned update to current mineral resource estimates; the Company’s ability to convert mineral resources to mineral reserves; the outcome of the review of a possible large pit scenario at Cortadera, including the economics thereof and the comparison with the existing PEA scenario; the timing and results of the planned updated PEA (if completed) and the PFS; opportunities for growth in mineral projects; the ability of the Company to secure necessary infrastructure; the terms and conditions related to use of existing port and electrical infrastructure, including the ability to access renewable energy sources; the timing and outcomes of this current and future planned economic studies; the timing and outcomes of regulatory processes required to obtain permits for the development and operation of the Costa Fuego Project as contemplated in this and future planned economic studies; whether or not the Company will make a development decision and the timing thereof; the ability of the Company to consolidate additional landholdings around its project; estimates of cost; and estimates of planned exploration.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this report, including, but not limited to, the following material factors: operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company’s operations in Chile; changes in estimates of mineral resources of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this report and elsewhere in the Company’s public disclosure record.
Although the forward-looking statements contained in this report are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this report, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this report to provide investors with a more complete perspective on the Company’s future operations, and such information may not be appropriate for other purposes. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company’s most recent Annual Report, which is available on SEDAR (www.sedar.com) under the Company’s issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The forward-looking statements contained in this report are expressly qualified by the foregoing cautionary statements and are made as of the date of this report. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire report and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity
Hot Chili Limited
ABN
Quarter ended (“current quarter”)
91 130 955 725
30 June 2023
Consolidated statement of cash flows
Current quarter $A’000
Year to date (12 months) $A’000
1.
Cash flows from operating activities
–
–
1.1
Receipts from customers
1.2
Payments for
(2,577)
(13,816)
(a) exploration & evaluation
(b) development
–
–
(c) production
–
–
(d) staff costs
(680)
(2,089)
(e) administration and corporate costs
(735)
(3,390)
1.3
Dividends received (see note 3)
–
–
1.4
Interest received
31
160
1.5
Interest and other costs of finance paid
–
–
1.6
Income taxes paid
–
–
1.7
Government grants and tax incentives
–
–
1.8
Other (provide details if material)
–
–
1.9
Net cash from / (used in) operating activities
(3,961)
(19,135)
2.
Cash flows from investing activities
–
–
2.1
Payments to acquire or for:
(a) entities
(b) tenements
(286)
(1,518)
(c) property, plant and equipment
–
–
(d) exploration & evaluation
–
–
(e) investments
–
–
(f) other non-current assets
–
–
2.2
Proceeds from the disposal of:
–
–
(a) entities
(b) tenements
–
–
(c) property, plant and equipment
–
–
(d) investments
–
–
(e) other non-current assets
–
–
2.3
Cash flows from loans to other entities
–
–
2.4
Dividends received (see note 3)
–
–
2.5
Other (provide details if material)
–
–
2.6
Net cash from / (used in) investing activities
(286)
(1,518)
3.
Cash flows from financing activities
–
–
3.1
Proceeds from issues of equity securities (excluding convertible debt securities)
3.2
Proceeds from issue of convertible debt securities
–
–
3.3
Proceeds from exercise of options
–
–
3.4
Transaction costs related to issues of equity securities or convertible debt securities
–
–
3.5
Proceeds from borrowings
–
–
3.6
Repayment of borrowings (CMP option)
–
–
3.7
Transaction costs related to loans and borrowings
–
–
3.8
Dividends paid
–
–
3.9
Other (provide details if material)
–
–
3.10
Net cash from / (used in) financing activities
–
–
4.
Net increase / (decrease) in cash and cash equivalents for the period
4.1
Cash and cash equivalents at beginning of period
7,389
23,722
4.2
Net cash from / (used in) operating activities (item 1.9 above)
(3,961)
(19,135)
4.3
Net cash from / (used in) investing activities (item 2.6 above)
(286)
(1,518)
4.4
Net cash from / (used in) financing activities (item 3.10 above)
–
–
4.5
Effect of movement in exchange rates on cash held
45
118
4.6
Cash and cash equivalents at end of period
3,187
3,187
5.
Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
Current quarter $A’000
Previous quarter $A’000
5.1
Bank balances
2,036
4,740
5.2
Call deposits
1,151
2,649
5.3
Bank overdrafts
5.4
Other (provide details)
5.5
Cash and cash equivalents at end of quarter (should equal item 4.6 above)
3,187
7,389
6.
Payments to related parties of the entity and their associates
Current quarter $A’000
6.1
Aggregate amount of payments to related parties and their associates included in item 1
152
6.2
Aggregate amount of payments to related parties and their associates included in item 2
–
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.
7.
Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.
Total facility amount at quarter end $A’000
Amount drawn at quarter end $A’000
7.1
Loan facilities
–
–
7.2
Credit standby arrangements
–
–
7.3
Other (please specify)
–
–
7.4
Total financing facilities
–
–
7.5
Unused financing facilities available at quarter end
7.6
Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have beenentered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.
8.
Estimated cash available for future operating activities
$A’000
8.1
Net cash from / (used in) operating activities (item 1.9)
(3,961)
8.2
(Payments for exploration & evaluation classified as investing activities) (item 2.1(d))
–
8.3
Total relevant outgoings (item 8.1 + item 8.2)
(3,961)
8.4
Cash and cash equivalents at quarter end (item 4.6)
3,187
8.5
Unused finance facilities available at quarter end (item 7.5)
–
8.6
Total available funding (item 8.4 + item 8.5)
3,187
8.7
Estimated quarters of funding available (item 8.6 divided by item 8.3)
0.80
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8
If item 8.7 is less than 2 quarters, please provide answers to the following questions:
8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
Answer: Yes. The company has executed a US$15 million Investment Agreement with Osisko Gold Royalties Limited (“Osisko”). See ASX announcement dated 28 June 2023.
8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
Answer: Completion of the Agreement and the receipt of US$15 million (“Royalty Consideration”) by the Company as announced 26 July 2023.
8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
Answer: Yes. The receipt of the Royalty Consideration from Osisko will be applied to the commencement of drilling activities across multiple growth targets and the completion and delivery of the resource upgrade in H2 2023 and the PFS for Costa Fuego in H2 2024.
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.
Compliance statement
This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
This statement gives a true and fair view of the matters disclosed.
Date: ……………..28 July 2023…………………………………..
Authorised by: ………..By the Board…………………………………………….. (Name of body or officer authorising release – see note 4)
Notes
1.
This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2.
If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3.
Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4.
If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.
5.
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Hot Chili Limited logo (CNW Group/Hot Chili Limited)
PERTH, Australia, July 26, 2023 /CNW/ – Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) (“Hot Chili” or the “Company”) is pleased to announce that it has closed its previously announced transaction with Osisko Gold Royalties Ltd (“Osisko”), pursuant to which Hot Chili received proceeds of US$15 million in exchange for the sale of a 1.0% Net Smelter Return (NSR) royalty on copper and a 3% NSR royalty on gold (the “Investment”) across the Company’s Costa Fuego Copper-Gold Project (“the Project”) located 600 km north of Santiago, at low elevation (<1,000 m) in the coastal range of the Atacama Region, Chile.
Hot Chili Limited logo (CNW Group/Hot Chili Limited)
The Investment by Osisko has strengthened the Company’s current cash position to approximately A$26 million, demonstrated strong look-through value of the Project’s economics (see the Company’s announcement dated 28th June 2023, entitled “Hot Chili Announces PEA for Costa Fuego”) and provided another significant endorsement of Hot Chili’s Costa Fuego project from one of North America’s leading royalty-streaming groups (see the Company’s announcement dated 28th June 2023, entitled “Hot Chili Announces US$15 Million Investment Agreement with Osisko Gold Royalties”).
The Company is now well funded to deliver the next steps in its growth and development plan, including:
Commencement of 30,000 m drill program – preparations well-advanced; drilling operations set to commence in the coming weeks.
Completion of Costa Fuego resource upgrade by late 2023
Delivery of Costa Fuego pre-feasibility study (“PFS”) in H2 2024 – The Company has already considerably advanced its PFS (approximately 80% complete) with minimal expenditure required for completion
Hot Chili’s Managing Director Mr Christian Easterday commented, “We are very pleased to have closed the Investment with Osisko Gold Royalties enabling the Company to advance the project without the dilution of a share issuance.”
“Costa Fuego is globally relevant, being one of only a handful of projects with potential to deliver near-term, meaningful, new copper supply into a looming global copper supply shortage.”
The Company looks forward to providing updates on the Company’s next steps shortly.
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
Hot Chili’s Managing Director and Chief Executive Officer Mr Christian Easterday is responsible for this announcement and has provided sign-off for release to the ASX and TSXV.
This document contains certain “forward-looking statements” and “forward-looking information” concerning the business, operations and financial performance and condition of Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the timing and ability, if at all, for the completion of the PFS; the timing and ability, if at all, to complete a resource upgrade at Costa Fuego; timing of the commencement of the Company’s 30,000m drill programme; permitting and legal processes in relation to mining permitting and approvals; estimated production and mine life of the various mineral projects of the Company; the ability to obtain permits for operations; synergies; the realisation of mineral resource estimates; the benefits of the development potential of the properties of the Company; the future price of minerals, including gold, copper, and silver; the estimation of mineral reserves and resources; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterised by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may”, “should” or “will” occur. Forward-looking statements are based on the opinions and estimates of the Company at the date the statements are made and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the results of the Company’s preliminary economic assessment and planned PFS, as well as future economic studies, the results of the planned 30,000m drill programme and their impact on mineral resources and the economic studies, variations in ore grade or recovery rates, changes in market conditions, risks relating to the availability and timeliness of permitting and governmental approvals; risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.
The Company cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail and are cautioned not to place undue reliance on forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or the Company’s estimates or opinions should change except as required by applicable securities laws. Any comparative market information is as of a date prior to the date of this document.
Disclaimer
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 news release.
This document (the “Document”) is to be used by the recipient for informational purposes only and does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of Hot Chili Limited (“Hot Chili” or the “Company”). Each recipient should perform its own independent investigation and analysis of Hot Chili, and the information contained in this Document is not a substitute therefore. Hot Chili makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this Document or in any other written or oral communication transmitted to any recipient by any party. Except for liability which cannot be disclaimed by law, by accepting this Document, the recipient agrees that neither Hot Chili nor any of its officers, directors, employees, or representatives has any liability for any representations or warranties, express or implied, contained in, or for any omissions from, this Document or any such other written or oral communication from any person.
Certain information contained herein is based on, or derived from, information provided by independent third-party sources. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information.
This Document should not be considered as a recommendation from any person to purchase any securities. Each person for whom this Document is made available should consult its own professional advisors in making its own independent investigations and assessment and, after making such independent investigations and assessments, as it deems necessary, in determining whether to proceed with any investment in the Company.
Update on Underground and Regional Exploration Opportunities
Figure 1
Recent Underground Drilling
Figure 2
Property Map with Exploration Target Locations
Figure 3
Dimples Sampling (Gold)
Figure 4
Dimples Sampling (Copper)
YERINGTON, Nev., July 26, 2023 (GLOBE NEWSWIRE) — Nevada Copper (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) today provides an update on its 2023 regional and underground exploration plans and recent exploration results at its approximate 36 square mile Pumpkin Hollow property located in Yerington, NV.
Randy Buffington, President & CEO, commented, “The Pumpkin Hollow property is a significant land package, in a well-known copper belt, in a strong mining jurisdiction and with substantial mineral resources already identified. These recent underground drill results indicate expansion to known copper mineralization. Additionally, our review of historical data, coupled with recent surface sampling and analysis, has identified several targets of interest that warrant follow-up. Our team is currently focused on bringing the underground back into operation, including completion of the remaining capital projects, and advancing development activities, both of which are well underway. The planned start-up of milling operations and concentrate sales in Q3 2023 is on track with targeted nameplate milling rates of 5,000 tons per day expected to be achieved by the end of 2023. With a significant portion of the property located on private land, we are in a rare position to quickly take advantage of growth opportunities once we achieve steady state underground operations.”
2023 Underground Drilling Highlights
Approximately 31,500 feet of drilling planned (approximately US$5 million program).
Approximately 4,900 feet drilled to date with one drill rig, and a second drill rig recently deployed.
Results of drilling indicate mineralization extension in the ES zone (see Figure 1), including 36.5 feet of 2.46% copper within a larger interval of 99 feet of 1.4% copper (Cu) in hole NC23U-007. Other notable results include:
DDH ID
From (ft)
To (ft)
Length (ft)
Cu %
Ag gpt
Au gpt
NC23U-002
14
24
10
1.62
14.200
0.251
NC23U-002
294
304.8
10.8
1.76
8.402
0.132
NC23U-004
60
70
10
1.63
11.600
0.316
NC23U-005
128
143
15
1.26
9.913
0.267
NC23U-006
68.4
79.8
11.4
1.27
5.738
0.165
NC23U-007
246
344.5
98.5
1.4
3.558
0.144
including
300
336.5
36.5
2.46
5.342
0.318
NC23U-008
123.5
155
31.5
1.59
4.342
0.264
NC23U-008
425
435
10
1.56
3.250
0.190
NC23U-008
445
480
35
1.82
3.986
0.291
NC23U-009
188
203
15
1.32
1.433
0.087
gpt = grams per tonne; Ag = silver
The 2023 East North (EN) and East South (ES) underground drill program began in the first quarter of 2023 and is focused on stope definition drilling and near-mine resource expansion targets. Drilling is expected to continue in the ES and EN zone through the remainder of the year. The deposit remains open in all directions.
The Pumpkin Hollow property has not been extensively explored in the past as the Company was focused on developing the known mineral resources, resulting in the development of the underground mine and advancement of the open pit project. Recent drone magnetic surveys have identified several high-quality targets of interest. Surface reconnaissance targeting these high-quality areas demonstrates that these targets have the potential to host additional independent mineralized systems, outside of the existing deposits.
New Area Identified in Pumpkin Hollow Site Wide Exploration – Dimples
Nevada Copper has identified a new exploration target, the Dimples target, located just south of the proposed open pit area in the southern area of the property (Figure 2). Analysis of recent surface grab samples has returned encouraging results including gold values of up to 61 gpt gold (Au). A total of 55 grab samples have been collected in 2023 with 42 of those samples returning gold values greater than 0.1 gpt Au and 14 samples being greater than 1 gpt Au, in quartz rich veins within granodiorite porphyry (Figure 3). Higher-grade copper was identified in eleven samples, with values greater than 1.0% Cu (Figure 4). High-grade copper rich zones are found in the granodiorite porphyry veins as well as skarns within metavolcanics. The Mesozoic rocks in the area are dominated by granodiorite porphyries and metavolcanics.
Additional News from the Copper Ridge Target
Surface sampling results from surface outcrops and prospect pits in the Copper Ridge area have indicated a potential for high-grade copper, highlighted by grades including 5.03% and 5.43% Cu. The Copper Ridge property is located north of the main Pumpkin Hollow property covered by 103 hectares through unpatented and patented claims. The target was mined for high-grade copper in the early 1900’s through several adits as well as a 122-meter inclined shaft.
The 2023 program is designed to follow-up on historic reconnaissance work completed in the early 1990s by a major copper company and has the potential to provide additional high-grade feed for the existing underground mill. A total of 70 historic and new rock samples were collected to confirm and extend the known mineralization along the vein and dike structures in the Yerington Batholith granodiorites. Forty-four samples assayed greater than 0.1% copper. Samples greater than 2.0% Cu were summarized in Table 1 of the Company’s February 13th, 2023, news release.
Follow-up trenching and a reverse circulation drill program are planned to further evaluate these high potential targets.
The grades identified in this press release are conceptual in nature as there has not been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the delineation of a mineral resource.
Qualified Person The technical information and data in this news release has been reviewed by Greg French, C.P.G., VP Exploration of Nevada Copper, who is a non-independent Qualified Person within the meaning of NI 43-101.
Quality Assurance and Quality Control The analytical work referred to herein was performed by American Assay Labs (AAL) located in Sparks, Nevada. AAL is an ISO/IEC 17025 accredited laboratory. The Samples were crushed so that >80% passes 10 mesh, followed by pulverizing to >90% passes 75 < 150 mesh. Prepared samples were run using a three-acid digestion process and conventional ICP-AES analysis. Gold determination was via standard atomic absorption (AA) finish 30-gram fire-assay (FA) analysis. Blank, standard and duplicate samples were routinely inserted and monitored for quality assurance and quality control.
The historic analytical work was performed by Chemex Labs Inc. and ALS Minerals, currently ALS Geochemistry (ALS) located in Nevada. ALS is an ISO/IEC 17025 accredited laboratory. The samples were crushed so that >80% passes 10 mesh, followed by pulverizing split to < 150 mesh. Prepared samples were run using an acid digestion process and conventional ICP-AES analysis. Gold determination was via standard atomic absorption (AA) finish 30-gram fire-assay (FA) analysis.
Nevada Copper detected no significant QA/QC issues during review of the data and is not aware of any sampling or other factors that could materially affect the accuracy or reliability of the data referred to herein.
About Nevada Copper
Nevada Copper (TSX: NCU) is the owner of the Pumpkin Hollow copper project located in Nevada, USA with substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade Underground Mine and processing facility, which is expected to restart milling operations in 2023, and a large-scale open pit PFS stage project.
Randy Buffington President & CEO
For additional information, please see the Company’s website at www.nevadacopper.com, or contact:
Tracey Thom | Vice President, IR and Community Relations tthom@nevadacopper.com +1 775 391 9029
Figure 1 – Recent Underground Drilling
Recent Underground Drilling
*Grey holes – assays pending
Figure 2 – Property Map with Exploration Target Locations
Property Map with Exploration Target Locations
Figure 3 – Dimples Sampling (Gold)
Dimples Sampling (Gold)
Figure 4 – Dimples Sampling (Copper)
Dimples Sampling (Copper)
Cautionary Language on Forward Looking Statements This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, are forward-looking statements. Such forward-looking information and forward-looking statements specifically include, but are not limited to, statements that relate to future exploration and the potential outcome of exploration programs, development and restart and ramp-up plans and activities at the Underground Mine and the timing in respect thereof.
Forward-looking statements and information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information should not be read as guarantees of future performance and results. They are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Such risks and uncertainties include, without limitation, those relating to: results of exploration programs, requirements for additional capital and no assurance can be given regarding the availability thereof; the ability of the Company to complete the restart and ramp-up of the Underground Mine within the expected cost estimates and timeframe; the impact of COVID-19 on the business and operations of the Company; the state of financial markets; history of losses; dilution; adverse events relating to milling operations, construction, development and restart and ramp-up, including the ability of the Company to address underground development and process plant issues; ground conditions; cost overruns relating to development, construction and restart and ramp-up of the Underground Mine; loss of material properties; interest rate increases; global economy; limited history of production; future metals price fluctuations; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labour disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; title matters; regulatory approvals and restrictions; increased costs and physical risks relating to climate change, including extreme weather events, and new or revised regulations relating to climate change; permitting and licensing; dependence on management information systems and cyber security risks; volatility of the market price of the Company’s securities; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those risks discussed in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2022 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 20, 2023. The forward-looking statements and information contained in this news release are based upon assumptions management believes to be reasonable, including, without limitation: no adverse developments in respect of the property or operations at the project; no material changes to applicable laws; the restart and ramp-up of operations at the Underground Mine in accordance with management’s plans and expectations; no material adverse impacts from COVID-19 going forward; the Company will be able to obtain sufficient additional funding to complete the restart and ramp-up of the Underground Mine, no material adverse change to the price of copper from current levels; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.
The forward-looking information and statements are stated as of the date hereof. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information and statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. Specific reference is made to “Risks and Uncertainties” in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2022 and “Risk Factors” in the Company’s Annual Information Form dated March 20, 2023, for a discussion of factors that may affect forward-looking statements and information. Should one or more of these risks or uncertainties materialize, should other risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results and events may vary materially from those described in forward-looking statements and information. For more information on the Company and the risks and challenges of its business, investors should review the Company’s filings that are available at www.sedar.com.
The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
