TORONTO, Dec. 29, 2021 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to review its 2021 exploration success along the Appleton Fault Zone and to give an update on plans for 2022 at its 100% controlled Kingsway project near Gander, Newfoundland. The Kingsway project is located in the highly prospective central Newfoundland gold belt.
Drilling In early April, 2021 LabGold began a 10,000-metre diamond drilling program began at Kingsway, testing the Big Vein target where visible gold in quartz vein boulders was found in late 2020. The drilling program was increased to 50,000 metres in June following completion of two private placements.
Between the start of drilling in April and the break for the festive season in December, a total of 26,767 metres were drilled in 116 holes primarily at Big Vein. Drilling at the new “Pristine” target began in November and nine holes totalling 2,229 metres have been drilled to date. Assays have been received for 56% of samples submitted to the laboratory or approximately 15,000 metres of core.
Highlights from the drilling program include high grade intersections of 276.56 g/t Au over 0.5m in hole K-21-31 and 75.86 g/t Au over 1m in hole K-21-49 from the Big Vein zone and 44.08 g/t Au over 4.28m in hole K-21-39, and 128.51 over 1.12g/t Au in hole K-21-47 from the HTC Zone.
Regional Exploration
LabGold continued its systematic exploration along the Appleton Fault Zone during 2021, using prospecting, mapping, geophysics, soil and till sampling to great effect with two significant results.
Prospecting following up coincident structures and geochemical anomalies led to the discovery of the Golden Glove occurrence on the east side of the Appleton Fault Zone approximately 3.4km southwest of Big Vein. The occurrence consists of an outcrop of quartz vein containing visible gold that assayed from 2.99 g/t Au to 338.08 g/t Au. Soil sampling, ground magnetics and VLF-EM have been carried out in the Golden Glove area to assist in drill targeting with results expected early in the new year.
Two till samples taken approximately 700 metres northeast (down ice) of Big Vein returned 165 and 311 gold grains of which 96% and 83%, respectively were pristine. The large number of pristine grains in these samples indicates a short transport distance suggesting a source other than Big Vein closer to the sample locations. Follow up work in the area immediately up ice of these samples found quartz veins containing pyrite and arsenopyrite. Diamond drilling at this “Pristine” target began in November and assays from the first holes are pending.
Numerous other gold anomalies were uncovered along the Appleton Fault Zone that will be aggressively followed up during 2022 to define additional targets for drilling.
Financings During the year, the Company raised $24.8 million at an average price of $0.81 in two private placements with Mr. Eric Sprott and New Found Gold. As at December 24,2021, the Company had $30.8 million in cash and a market cap of $124.5 million.
Outlook for 2022
LabGold will continue to explore the entire 12km strike length of the Appleton Fault Zone during 2022 including:
Continued diamond drilling at Big Vein and the “Pristine” target testing along strike and at depth.
Initial drilling at Golden Glove following receipt of survey results and drill permit.
Upgrading of gold anomalies and generation of new targets using the same techniques that produced discoveries during 2020 and 2021.
“2021 was an exciting year for us as the LabGold team built on the exploration success achieved in 2020. The drilling at Big Vein demonstrated the presence of high grade epizonal style gold mineralization at Kingsway and the discovery of visible gold at Golden Glove and pristine gold grains at the “Pristine” target reinforces the prospectivity of the Appleton Fault Zone,” said Roger Moss, President and CEO of Labrador Gold. “Given the number of gold anomalies we have uncovered along the 12km length of the Appleton Fault Zone 2022 is shaping up to be another year of discovery for LabGold. Many assays remain outstanding from 2021 which, together with our continued drilling, will result in a steady flow of news next year. With over $30 million in cash and no debt the Company is well capitalized for its planned exploration programs. I would like to express my thanks to the LabGold exploration team for their commitment to the project and to the Newfoundland government for their continued support and assistance. Finally, to our shareholders, we wouldn’t be here without you, and we look forward to sharing with you what we expect to be another year of discovery in 2022.”
QA/QC
True widths of the reported intersections have yet to be calculated. Assays are uncut. Samples of HQ and NQ split core are securely stored prior to shipping to Eastern Analytical Laboratory in Springdale, Newfoundland for assay. Eastern Analytical is an ISO/IEC17025 accredited laboratory. Samples are routinely analyzed for gold by standard 30g fire assay with ICP (inductively coupled plasma) finish with samples containing visible gold assayed by metallic screen/fire assay. The company submits blanks and certified reference standards at a rate of approximately 5% of the total samples in each batch.
Qualified Person
Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this release.
The Company gratefully acknowledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.
About Labrador Gold Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.
In early 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the Gander area of Newfoundland. The three licenses comprising the Kingsway project cover approximately 12km of the Appleton Fault Zone which is associated with gold occurrences in the region, including those of New Found Gold immediately to the south of Kingsway. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water. LabGold is drilling a projected 50,000 metres targeting high-grade epizonal gold mineralization along the Appleton Fault Zone following encouraging early results. The Company has approximately $32 million in working capital and is well funded to carry out the planned program.
The Hopedale property covers much of the Florence Lake greenstone belts that stretches over 60 km. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Work to date by Labrador Gold show gold anomalies in rocks, soils and lake sediments over a 3-kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 km along the southern section of the greenstone belt (see news release dated January 25th 2018 for more details). Labrador Gold now controls approximately 40km strike length of the Florence Lake Greenstone Belt.
The Company has 153,711,033 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
For more information please contact:
Roger Moss, President and CEO Tel: 416-704-8291
Or visit our website at: www.labradorgold.com
Twitter @LabGoldCorp
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
VANCOUVER, BC / ACCESSWIRE / December 20, 2021 / Group Ten Metals Inc. (TSX.V:PGE)(OTCQB:PGEZF)(FSE:5D32) (the “Company” or “Group Ten”) today reports partial results from the first two drill holes of the 14-hole resource expansion campaign completed in 2021 at the Company’s flagship Stillwater West PGE-Ni-Cu-Co + Au project in Montana, USA. Results are expected to form the basis of an updated resource estimate in 2022.
2021 Drill Highlights:
CZ2021-01 returned the widest high-grade intercept to date on the project being 63.7 meters of 0.92% Nickel Equivalent (“NiEq”), equal to 2.46 g/t Palladium Equivalent (“PdEq”), with 0.47% Ni, 0.42 g/t Pd, 0.27% Cu, and 0.04% Co as well as significant Pt and Au values, within 367.6 meters of continuous mineralization at 0.31% NiEq (or 0.83 g/t PdEq). See Table 1 for details.
CM2021-01 returned the longest mineralized intercept ever recorded in the Stillwater district with 728 meters of continuous sulphide mineralization at 0.27% NiEq, or 0.73 g/t PdEq, including contained intervals of successively higher grades:
352.9 meters of 0.39% NiEq (or 1.04 g/t PdEq) with 0.52 g/t 3E (Pd, Pt, and Au), and 0.17% Ni, plus significant Cu and Co values;
159.2 meters of 0.48% NiEq (or 1.29 g/t PdEq) with 0.77 g/t 3E, 0.18% Ni, plus significant Cu and Co values;
50.2 meters of 0.54% NiEq (or 1.45 g/t PdEq) with 1.0 g/t 3E, 0.19% Ni, plus significant Cu and Co values; and
Shorter intervals of high-grade mineralization including 7.2 meters of 1.33 g/t Pd, 0.93 g/t Pt, and 0.24% Ni, plus significant Au, Cu, and Co values, for 1.02% NiEq (or 2.72 g/t PdEq).
Both holes are step-outs completed with the objective of expanding deposits delineated by the 2021 Mineral Resource Estimate announced on October 21, 2021:
CM2021-01 was one of six holes drilled in 2021 in the area between the DR and Hybrid deposits to step out from high-grade nickel sulphide-PGE mineralization identified in hole CM2020-04;
CZ2021-01 is one of two holes drilled in 2021 to step-out on the CZ deposit in the area of wide, high-grade mineralization returned in hole CZ2019-01.
Mineralization starts at or near surface in both holes.
Assay results are pending from the lowest portion of CZ2021-01, and from the remaining 12 holes drilled in 2021. Rhodium results are also pending on all holes.
Michael Rowley, President and CEO, commented, “These initial results from the first two holes of our 2021 resource expansion drill campaign provide the strongest demonstration to date of our ability to target highly mineralized zones at Stillwater West, with significant wide intervals reaching more than five times the cut-off grade used in our recent resource estimate. This is very clear evidence that our predictive geologic model, utilizing tools like deep penetrating induced polarization geophysics, is accurately and effectively guiding us to drill wide zones of higher-grade nickel-copper-cobalt sulphide mineralization (battery metals), enriched in palladium, platinum, rhodium (platinum group elements), and gold. In addition to driving increased size and grade in our planned resource update, our ability to target effectively as we step-out from known mineralization in a large magmatic system is delivering incredibly low discovery costs as we advance the project.”
“Our work to date has demonstrated the exceptional scale and potential of the mineralized system in the lower Stillwater Complex. These results confirm and refine that understanding with Chrome Mountain hole CM2021-01 returning nearly three-quarters of a kilometer of continuous mineralization from a site that is over seven kilometers west of the HGR deposit in the Iron Mountain area, where hole IM2019-03 previously held the record for highest grade-thickness. Both areas have additional very high grade-thickness intervals in drill results, as does the CZ deposit located between the two. All of this confirms our observation that the lower Stillwater Complex has an immense endowment of contained metal and yet is surprisingly underexplored, despite its location in a famously productive and well-mineralized American mining district. Our systematic approach to exploration has quickly delineated five resource-stage deposits that are open for expansion across the nine-kilometer core of the Stillwater West project and we will continue to focus on their expansion while also advancing earlier stage targets that continue across the 32 kilometers of prospective magmatic stratigraphy covered by the property. We look forward to announcing results from the remaining drill holes along with results of our 2021 IP expansion survey in the near term as they become available.”
Table 1 – Highlight Results from 2021 Expansion Drill Campaigns at the DR, Hybrid, and CZ Deposit Areas
Assays pending for rhodium and certain intervals denoted by *. Highlighted significant intercepts with grade-thickness values over 20 gram-meter PdEq are presented above. Grade thickness values cover significant mineralized intervals with total palladium and nickel equivalent grade-thickness determined by multiplying the thickness of continuous mineralization (in meters) by the palladium equivalent grade (in grams/tonne) to provide gram-meter values (g-m) or by multiplying the nickel equivalent grade (in percent) to provide percent-meter values as shown. Total nickel and palladium equivalent calculations reflect total gross metal content using metals prices as follows (all USD): $7.00/lb nickel (Ni), $3.50/lb copper (Cu), $20.00/lb cobalt (Co), $1,000/oz platinum (Pt), $1,800/oz palladium (Pd), and $1,600/oz gold (Au). Equivalent values have not been adjusted to reflect metallurgical recoveries. Total metal equivalent values include both base and precious metals. In terms of dollar value, 0.20% nickel equates to a copper value of 0.40%, or a palladium value of 0.53 g/t, using the above metal values. Intervals are reported as drilled widths and are believed to be representative of the actual width of mineralization.
Grade-Thickness
Grade-thickness values of the mineralized intervals continue to demonstrate the remarkable metal endowment of the lower Stillwater Complex, with both holes reported here being well above 100 gram-meter (“g-m”) palladium equivalent grade-thickness. CM2021-01 returned 530 g-m PdEq grade-thickness, which is a record high for the Stillwater Complex. For comparison, this equates to 596 g-m gold equivalent, 954 g-m platinum equivalent, or 199 %-meter nickel equivalent. Grade-thickness values are an exploration tool used for comparing the intensity of mineralization across different mineralized widths. A grade-thickness value of 10 gram-meter Pd is equivalent to 1 g/t Pd over 10 meters, or 10 g/t Pd over 1 meter and is considered economically significant. The adjacent J-M Reef deposit now mined by Sibanye-Stillwater averages approximately 34 gram-meter Pd and Pt1,2. Values over 100 g-m PdEq are considered exceptional, highlighting the strength of the mineralized system, and values of more than 250 g-m PdEq (or 281 g-m AuEq) are rare across the industry. To date, the Stillwater West project has returned 31 drill holes with over 50 g-m PdEq grade-thickness, including five with more than 250 g-m PdEq.
Upcoming News and Events
Group Ten is pleased to confirm that it will participate in the upcoming Vancouver Resource Investment, AME Roundup, and Prospectors and Developers Association conferences in Q1 2022.
About Stillwater West
Group Ten is rapidly advancing the Stillwater West PGE-Ni-Cu-Co + Au project towards becoming a world-class source of low-carbon, sulphide-hosted nickel, copper, and cobalt, critical to the electrification movement, as well as key catalytic metals including platinum, palladium and rhodium used in catalytic converters, fuel cells, and the production of green hydrogen. Stillwater West positions Group Ten as the second-largest landholder in the Stillwater Complex, with a 100%-owned position adjoining and adjacent to Sibanye-Stillwater’s PGE mines in south-central Montana, USA1. The Stillwater Complex is recognized as one of the top regions in the world for PGE-Ni-Cu-Co mineralization, alongside the Bushveld Complex and Great Dyke in southern Africa, which are similar layered intrusions. The J-M Reef, and other PGE-enriched sulphide horizons in the Stillwater Complex, share many similarities with the highly prolific Merensky and UG2 Reefs in the Bushveld Complex. Group Ten’s work in the lower Stillwater Complex has demonstrated the presence of large-scale disseminated and high-sulphide battery metals and PGE mineralization, similar to the Platreef in the Bushveld Complex2. Drill campaigns by the Company, complemented by a substantial historic drill database, have delineated five deposits of Platreef-style mineralization across a core 9.2-kilometer span of the project, all of which are open for expansion into adjacent targets. Multiple earlier-stage Platreef-style and reef-type targets are also being advanced across the remainder of the 32-kilometer length of the project based on strong correlations seen in soil and rock geochemistry, geophysical surveys, geologic mapping, and drilling.
About Group Ten Metals Inc.
Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt, and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu-Co + Au project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA. Group Ten also holds the high-grade Black Lake-Drayton Gold project adjacent to Treasury Metals’ development-stage Goliath Gold Complex in northwest Ontario, and the Kluane PGE-Ni-Cu-Co project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfield assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver and gold, platinum and palladium, and copper. Member companies include Metallic Minerals in the Yukon’s high-grade Keno Hill silver district and La Plata silver-gold-copper district of Colorado, Group Ten Metals in the Stillwater PGM-nickel-copper district of Montana, and Granite Creek Copper in the Yukon’s Minto copper district. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorers/developers and major producers. With this expertise, the companies are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven, but under-explored, mining districts. The Metallic Group is headquartered in Vancouver, BC, Canada, and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.
Note 1: References to adjoining properties are for illustrative purposes only and are not necessarily indicative of the exploration potential, extent or nature of mineralization or potential future results of the Company’s projects.
Note 2: Magmatic Ore Deposits in Layered Intrusions-Descriptive Model for Reef-Type PGE and Contact-Type Cu-Ni-PGE Deposits, Michael Zientek, USGS Open-File Report 2012-1010.
2021 drill core samples were analyzed by ACT Labs in Vancouver, B.C. Sample preparation: crush (< 7 kg) up to 80% passing 2 mm, riffle split (250 g) and pulverize (mild steel) to 95% passing 105 µm included cleaner sand. Gold, platinum, and palladium were analyzed by fire assay (1C-OES) with ICP finish. Selected major and trace elements were analyzed by peroxide fusion with 8-Peroxide ICP-OES finish to insure complete dissolution of resistate minerals. Following industry QA/QC standards, blanks, duplicate samples, and certified standards were also assayed.
Mr. Mike Ostenson, P.Geo., is the qualified person for the purposes of National Instrument 43-101, and he has reviewed and approved the technical disclosure contained in this news release.
Forward-Looking Statements
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, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten 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, 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 companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten 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.
Figure 1 – 2021 Resource Expansion Drill Holes with Deposit Outlines over Drill Data and Geophysics (Conductivity)
Figure 2 – 2021 Resource Expansion Drill Holes with Deposit Outlines and Drill Data over Precious and Base Metals in Soils
Figure 3 – 2021 Mineral Resource Estimate over 9 KM Core Project Area with 3d Model of Ip Survey Results
Vancouver, British Columbia–(Newsfile Corp. – December 17, 2021) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company“, or “EMX“) reports that it will deliver a Notice of Arbitration to Zijin Mining Group Ltd. (“Zijin”) and its wholly owned subsidiary, Nevsun Resources Ltd. (“Nevsun”) pursuant to the Net Smelter Returns Royalty Agreement dated March 16, 2010 by and between Reservoir Capital Corp. (of which Nevsun is a successor in interest), and Euromax Resources Ltd. (of which EMX is the acquirer of Euromax Resources Ltd’s royalty interest) (“Royalty Agreement”).
The rate of the royalty on the Timok Project in Serbia on the Brestovac East and Durian Potok Licences which cover the Cukaru Peki deposit is stated to be 0.5% (“Royalty Rate”) under the Royalty Agreement. The decision to initiate arbitration arose from recent communication between parties where Zijin indicated to EMX that the Royalty Rate of 0.5% had been reduced to 0.125% and Zijin’s failure to respond to our correspondence challenging this assertion and seeking clarification. Arbitration will be conducted in accordance with the commercial arbitration rules of the Commercial Arbitration Act (British Columbia), in British Columbia, and in accordance with British Columbia law.
The Royalty Agreement contains a provision for the reduction of the Royalty Rate under certain express and specific circumstances, namely, the acquisition by Freeport McMoRan Copper & Gold Inc. or any affiliate of a direct, undivided, ownership interest in the properties that are the subject of the Royalty Agreement, solely by directly incurring certain types of expenditures on the properties. EMX does not believe that the circumstances which would have triggered the reduction of the Royalty Rate have occurred and therefore the Royalty Rate remains at 0.5%. The Royalty Agreement also expressly outlined the circumstances under which the Royalty Rate could not be reduced. The Royalty Agreement has been filed by EMX as a material contract of EMX on www.sedar.com (“SEDAR”).
As it is EMX’s understanding that production has commenced, the Notice of Arbitration is necessary in order to preserve EMX’s rights with respect to its royalty interests. EMX continues to believe that a dialogue and amicable discussions may allow the parties to reach a mutually acceptable outcome prior to the start of arbitral proceedings. The timing and outcome of any such discussions or arbitral proceedings with Zijin are not known at this time. The Company intends to take all necessary steps to protect its interests under the Royalty Agreement and will consider any other actions necessary to ensure its rights are preserved.
Timok Project Overview. The Timok Project’s Cukaru Peki deposit consists of a higher level body of high-grade, epithermal-style copper-gold mineralization referred to as the Upper Zone project, and a deeper body of porphyry-style copper-gold mineralization known as the Lower Zone project. Prior to its acquisition by Zijin, a Pre-Feasibility Study (“PFS”) of the Upper Zone and resource estimate of the Lower Zone was completed by previous owner Nevsun, which was filed in August 2018 under Nevsun’s profile on SEDAR. EMX used the aforementioned PFS as the basis for its NI 43-101 Technical Report – Timok Copper-Gold Project Royalty, Serbia dated July 30, 2021 and EMX is unaware of any new, publicly available material scientific or technical information that would make Nevsun’s previous disclosures regarding the PFS inaccurate or misleading.
Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and an 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, as well as on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
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-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) 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 include statements regarding the payment of the royalty under the Royalty Agreement, the Royalty Rate, the outcome of any discussions, dispute or arbitral proceedings between EMX and Zijin and any other steps or actions taken by EMX to protect its rights, perceived merits 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”, “upside” 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. We are under no obligation to update any forward-looking statements except as required under applicable securities laws. 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 September 30, 2021 (the “MD&A”), and the most recently filed Revised Annual Information Form (the “AIF”) for the year ended December 31, 2020, 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.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
Joining us for a conversation is Shawn Khunkhun, the CEO of Dolly Varden Silver Corp. It’s a great time to be speaking with you as Dolly Varden Silver has just expanded their footprint in the highly prospective Kitsault Valley trend located in the prolific Golden Triangle of British Columbia. Before we begin, Mr. Khunkhun, please introduce us to Dolly Varden Silver and the opportunity the company presents to shareholders.
Shawn Khunkhun:
Dolly Varden has just announced today that we are set to acquire Homestake Ridge from Fury. Up until this moment, Dolly Varden was a silver-focused company in the Golden Triangle with a mineral endowment of 44 million ounces of high-grade silver. What today’s announcement proposes, is Dolly Varden is going to have a shareholder vote. We’ve got support from one our larger shareholders, Eric Sprott, who has not only publicly given his support, but he’s actually signed up support and lockup agreements for this transaction.
Shawn Khunkhun:
We are looking to unify the Kitsault Valley trend, which is comprised of 7 known deposits along 15 kilometers of Hazleton Rocks in the Golden Triangle, of which 4 of these deposits are on the Dolly Varden side and 3 are on the Homestake Ridge side. The amalgamation would also dramatically increase our mineral inventory taking us from 44 million ounces of high-grade silver to 137 million ounces of high-grade silver equivalent. To look at it through a gold lens, we would be at over 1.8 million ounces of high-grade gold.
Maurice Jackson:
Now before we get into the details of the transaction, please acquaint us with the Homestake Ridge Project, which hosts a resource in the inferred and indicated category of both gold and silver, along with a PEA.
Shawn Khunkhun:
Homestake Ridge, looking at it based on their gold ounces, has about 900,000 ounces of gold, about 18 million ounces silver, or one could look at it through a gold lens of 1.2 million ounces gold equivalent or 93 million ounces silver equivalent. It’s a project that is situated in the Golden Triangle. It’s a project that is open at depth and along strike. And it’s a project that hosts some very, very impressive grades.
And some of the opportunities at Homestake Ridge are there are some high-grade areas that not only do you have 20, 30 gram per ton gold material, but you have it over wide intervals. There are some tremendous opportunities to take some of the inferred resources and move them along into the indicated category. But you’re probably going to have some big surprises there in that just as Dolly Varden saw last year at our Torbrit Mine, which is a silver-rich mine, there is a tremendous opportunity when you vector into the high-grade.
Shawn Khunkhun:
For example, our resource on our side of the property is 300-gram silver. We did some infill drilling last year and we were finding that the resources were understated, as we were finding 450 gram material over big wide intervals. I suspect those same opportunities are going to persist on the Homestake side of the trend.
But the real story here, is that there are 5.5 kilometers in between the two projects that have never been explored. And both companies independently had done some geophysical work that has both concluded in three large geophysical anomalies in between, so I suspect we’ll move from seven deposits potentially to 10 and counting. We feel confident that there’s a huge, huge exploration upside before us.
Shawn Khunkhun:
I came into Dolly Varden in February 2020. This was a company that had $3 million in the bank. It had 44 million ounces in the ground and it had a $20 million market cap. Post this transaction, this is a $125 million company with 140 million ounces of silver equivalent in the ground, boasting an impressive treasury and with an experienced technical team that will continue to unlock discovery opportunities.
Maurice Jackson:
Now I have to ask you, sir, how were you able to acquire the Homestake Ridge? Could you walk us through the details of the transaction?
Shawn Khunkhun:
I think it was just one of these situations where when an M&A deal works for both parties, it’s the best. I really believe in business, how do you create win-win-win opportunities, whether it’s with our first nations partners, the Nisga’a, where we bring employment opportunities and they give us social license to do our exploration work.
Or whether it’s in the case of this M&A transaction where Fury is undervalued based on the incredible mineral endowment they have. And they’ve got 3 great projects in Canada, but the challenge with 3 great projects is how do you advance them all? Therefore, what Fury Gold Mines will be doing is they’re partnering with us. Ivan Bebek, Fury’s chairman, wants to ride the upside in Dolly Varden stock. So we structured a deal where we allowed him to ride the upside by becoming a 37% shareholder.
Shawn Khunkhun:
Now that’s a lot of trust to place in an outside party. They signed escrow agreements so that their stock is held up longer than the traditional hold periods. And there are all sorts of other parts of the investor rights agreement that are quite favorable for Dolly Varden shareholders, but they’re able to ride in the upside. As this project gets re-rated because it’s now got scale and there are the obvious synergies when his shares become re-rated and as we move into the latter stages of a precious metals bull market, these shares are going to be worth a lot more than 60 cents a share. And there was a pretty meaningful cash component to the deal as well. Dolly Varden is parting with $5 million worth of cash that Fury now can then take to advance either Eau Claire or Committee Bay.
Maurice Jackson:
Now we’ve covered the current resources. What can you tell us about further exploration upside potential?
Shawn Khunkhun:
The key is, so we have a northern property, northern deposit called Wolf, which is nearby Torbrit, which is the big granddaddy, 50 million ounce silver discovery on our property. Two kilometers away you have the Wolf and there’s a tremendous two-kilometer opportunity between Torbrit and Wolf.
Now going north from Wolf, you’ve got South Reef, which is Fury’s southern-most project. The big exploration opportunity is in the five and a half kilometers that lie in between South Reef and Wolf. I haven’t had the incentive to drill north. I’m not going to be positioning my drill rigs going on to Fury’s ground, defining mineral inventory on their side of the property. Likewise, Tim Clark and the team at Fury weren’t going to be drilling south. Now that we’ve unified, now that there’s 100% interest in one entity, that is going to be a huge area of focus going forward.
Maurice Jackson:
Now to coincide with this upside potential. How will the addition of the Homestake Ridge Project impact infrastructure?
Shawn Khunkhun:
There was a PEA that was produced that looked at one mill to develop the project at Homestake Ridge. The obvious synergy is for the company to release a PEA where you’ve got one mill, two projects. So from CAPEX to exploration to development, there are tremendous synergies by having one entity. And then I think as we are demonstrating that we are the lead consolidator in the area and if we have the hub, the mill will attract other projects that are in the area that don’t have the capital, or maybe not large enough as a standalone operation, they will be coming into the Dolly Varden Mill.
Maurice Jackson:
By consolidating the region Dolly Varden Silver now has a commanding land position at the southern tip of the Golden Triangle. But there’s more to the transaction. You’ve added some icing on the cake by merging the synergies and expertise from Fury Gold Mine’s technical team as well.
Shawn Khunkhun:
Thank you. No, and it’s not just technical, you’re absolutely right. But you know, Tim Clark, his capital markets and his banking contacts, Tim, as a CEO of Fury, he spent a career in the precious metals business. He’s got a Rolodex of contacts. Tim’s rolling up his sleeves, he’s coming on the board. In addition to having Michael Hendrickson, who is a very, very talented exploration geologist joining our board and working together as a group to unlock the true potential with the capital market’s expertise, with the technical expertise, we already had a lot of depth on the technical side, right from the top with Rob McLeod, Rob van Egmond, Jodie Gibson, Ryan Weymark, Andrew Hamilton’s just joined the team. And then we’ve got this new generation of project managers, Amanda Bennett. We’ve got a new gentleman joining our team here imminently, Joaquin.
Shawn Khunkhun:
We’ve just got, this is not going to be set out to consultants. This is in-house where the incentives are aligned with shareholders. And I’ve been through projects in the past where you have strong teams where the incentives are aligned with shareholders and it produces the best results. And we’ve got first-class people from even looking at this transaction, how it was put together from our banking advisors at Haywood to our legal counsel at Stikeman, I’m just floored and honored to work with just a high caliber of people. I’ve got a tremendous partner in our CFO, Ann Fehr. We’ve got a supportive, active board. I’m not going to mention every board member, but I want to thank our chairman, Darren Devine. We’ve just got a tremendous opportunity. It’s a great culture. It’s a culture that wants to grow, that wants to win. And now we have a platform and with size and scale that is going to attract larger investors.
I’ve listened to investors, I’ve gone out into the world. They told me to consolidate. They told me to get bigger. I’ve done it. And we’re just getting started.
Maurice Jackson:
Now before we leave the Golden Triangle, let’s visit the Dolly Varden Silver Project, which conducted a 10,000-meter drill program, which was a 50/50 split between infill and expansion drilling on the high-grade Torbrit Deposit. Any updates for us and when we might expect to see some results?
Shawn Khunkhun:
The labs have been extremely backed up in this part of the world. I’m anticipating results imminently and will continue to report results going into Q1. We allocated about 35% of our meters to exploration and we allocated about 65% of those meters in and around known resources. I would envision putting out two result-oriented press releases, one on exploration drilling, and one on resource expansion and extension drilling. Last year, we were extremely successful. A year hasn’t gone by where Dolly Varden hasn’t had dual success. I anticipate that to be the case, but what we’ve done here with this transaction is a material change to our mineral inventory definitively. And so I look forward to following up on exciting discoveries and drilling them out. But this is a real shot in the arm in terms of going from 44 million ounces to 140 million ounces. It’s quite a feat.
Maurice Jackson:
It certainly is. All right, switching gears, sir. Let’s look at some numbers. Please provide us with the capital structure for Dolly Varden Silver.
Shawn Khunkhun:
We currently have 130 million shares. Assuming our shareholders vote for this transaction, we’re going to issue 76 million shares to Fury. Again, they’re an insider. They’re locking up that stock. They’re riding this precious metals market with us, and they’re going to help us extract maximum value from this opportunity. If the transaction is supported, Dolly Varden Silver Corp will go to 207 million shares. But again, that’s 37% held by Fury. That’s 37% held by precious metal institutional investors, some of them are 9.9% shareholders, that’s 11% Eric Sprott, 8% retail. In addition, Hecla, which is a 10% shareholder has an opportunity to do a top-up. So they have a participation right. If Hecla exercises their participation right, they will come in for 9 million shares and they will resume having a 10.5 % percent ownership. Which coincidentally nets out the cash component of the transaction.
Maurice:
Now, before we close Mr. Khunkhun, what would you like to say to shareholders?
Shawn Khunkhun:
I came in in year one in 2020. We had a great market and we raised $27 million in a non-dilutive way. We put money in the ground. We started growing the deposit and saw an opportunity to transform the company. There were opportunities to transform the company outside of our region, we chose to expand our footprint next door, which now gives us a commanding position at the southern tip of the Golden Triangle. We’re a prominent player in the area now.
And we shouldn’t ignore the catalysts’ In the region such as Pretium being subject to a takeover bid from Newmont. We saw the big takeout last year with GT Gold. This is an area that the majors want to be and we’ve positioned our shareholders with a commanding position at the southern tip of the Golden Triangle.
Shawn Khunkhun:
But beyond that, this is what I want to leave the readers with. There are a lot of gold projects that have ounces in the ground in North America. There are a few projects that have ounces in the ground in North America that are silver. There are only 14 companies that have both gold and silver of this size. None of them have it at this grade. We are number one. We are number one for size meets grade in precious metals.
Shawn Khunkhun:
You missed nothing Maurice. You got it all covered.
Maurice:
Mr. Khunkhun, for someone that wants to learn more about Dolly Varden Silver, please share the contact details.
Shawn Khunkhun:
Please visit our website, www.dollyvardensilver.com. You can follow us on Twitter @silvervarden, or you can call us toll-free at +1 800-321-8564.
Maurice:
Mr. Khunkhun, it’s been a pleasure speaking with you. Wishing you and Dolly Varden Silver the absolute best, sir.
And as a reminder, I’m a licensed representative for Miles Franklin Precious Metals Investments, where we provide several options to expand your precious metals portfolio from physical delivery directly to your home, off-shore depositories secured by Brinks, and precious metal IRAs. Call me directly at 855-505-1900 or you may email, maurice@milesfranklin.com. And finally, please subscribe to provenandprobable.com, where we provide mining insights and bullion sales.
Plan View Map showing the location of the project within the Tintina Gold Province.
Plan View Map showing the location of the project within the Tintina Gold Province.
Figure 2
Plan View Map of Felix Gold land holdings in relation to the City of Fairbanks, Kinross’ Fort Knox Mine and Gil satellite mine, and Freegold Ventures Golden Summit / Cleary Hill gold deposit.
Plan View Map of Felix Gold land holdings in relation to the City of Fairbanks, Kinross’ Fort Knox Mine and Gil satellite mine, and Freegold Ventures Golden Summit / Cleary Hill gold deposit.
VANCOUVER, British Columbia, Nov. 30, 2021 (GLOBE NEWSWIRE) — Millrock Resources Inc. (TSX-V: MRO, OTCQB: MLRKF) (“Millrock” or the “Company”) is pleased to have received notice from Felix Gold that it has lodged a prospectus with the Australian Securities and Investments Commission. The filing initiates the process by which Felix Gold may become a publicly-traded company on the Australian Securities Exchange (“ASX”). If successful under the proposed schedule the company shares would begin trading in January 2022. Depending on the concurrent capital raise, Felix Gold would have between AUD$10 million and AUD$13 million in their treasury, with much of that funding to be directed to exploration of the mineral claims that have been contributed by Millrock and/or staked or acquired by Felix Gold in the Fairbanks Mining District. Upon successful IPO and capital raise, Millrock will be entitled to a payment of Felix Gold shares. It is anticipated that the ASX will impose a mandatory restriction on the disposal of these shares of up to two years. Readers are cautioned that the share payment will only be made if the IPO is successfully completed.
Millrock President and CEO Gregory Beischer commented: “This is great news for Millrock and its shareholders. Depending on the amount of money raised in the IPO, Millrock will receive Felix Gold shares with an initial value ranging between approximately US$1.7 million and US$1.9 million. Additionally, Millrock will be entitled to production royalties on all of the claims comprising the current extensive property position and on future claims that may be acquired within a large Area of Interest surrounding the Fairbanks Mining District. Millrock will be entitled to Advanced Minimum Royalty payments that begin January 2022. Some excellent targets have been developed over the past year, while Felix Gold was an unlisted company. With a strong treasury and a robust 2022 budget, Felix Gold will have a great chance to make new gold discoveries and expand the gold resource at the Grant Mine. Any exploration success should result in strong appreciation of the Felix Gold shares that Millrock will hold, and also should support Millrock’s share price.”
As reported in a January 12, 2021 press release, Millrock assigned Felix all of its rights in the Fairbanks area Ester Dome and Treasure Creek properties. It had held these rights for several years under agreements with prospectors. The Fairbanks Mining District is located within the prolific Tintina Gold Province, which spans Alaska and Yukon.
The Felix Gold prospectus indicates that (assuming the IPO and capital raise is successful) Millrock will be issued a minimum of 9,957,157 and a maximum of 11,442,384 Felix Gold shares at an IPO price of AUD$0.25 with an indicative initial value ranging between AUD$2,249,289 (CDN$2,047,389) and AUD$2,860,596 (CDN$2,603,491). The number of shares to be issued is dependent on the amount of capital raised. The shares will only be issued to Millrock if the IPO and capital raise is successfully completed.
Since signing the initial agreements in January 2021, the Felix Gold team, working in collaboration with Millrock, significantly expanded the claim package, targeting areas that appeared to have high potential based on a systematic evaluation of public data and Millrock’s proprietary database. A large soil sampling effort was carried out in 2021. More than 3,000 soil samples were collected using power augers which allow for the collection of soil at the bedrock – overburden interface. Overlying overburden in the Fairbanks area often consists of very fine grained windblown sediments with or without permafrost making traditional soil geochemical surveys less effective. This work has served to identify strongly anomalous areas on the Treasure Creek project with three main prospects: NW Array, Scrafford, and Eastgate. The survey also identified strong anomalies at the Northeast Fairbanks portion of the project, which is proximal to Kinross’ Fort Knox gold mine, the satellite Gil deposit recently put into production by Kinross, and the Golden Summit / Cleary Hill deposit, which is being actively explored by Freegold Ventures Limited with strong success.
Felix Gold has examined data from the former-producing Grant Mine upon which they have an option to purchase a 100% interest. As a result of the data analysis, Felix Gold has been able to calculate a gold resource that is compliant with the Australia Joint Ore Reserves Committee (“JORC”) standards that govern such calculations in Australia (source: INDEPENDENT GEOLOGIST’S REPORTS ON FELIX GOLD LIMITED’S MINERAL EXPLORATION PROJECTS IN ALASKA, Prepared by Independent Geologist Mr. Ian Taylor of Mining Associates Pty Ltd., October 15, 2021).
The independent geologist’s report is appended to the Felix Gold prospectus and reports the following:
Inferred Mineral Resource estimate (JORC 2012) for Grant Mine of 5.8 million tonnes @ 1.95 grams per tonne gold for 364,000 ounces of contained gold including an underground resource of 136,000 ounces of gold grading 6.2 grams of gold per tonne.
And also: Grant Mine Exploration Target (JORC 2012) of 5.6 million tonnes to 6.6 million tonnes at a grade of 1.9 grams per tonne gold to 2.1 grams per tonne gold for 338,000 to 545,000 ounces of gold (exclusive of the Mineral Resource).
Note: The NI43-101 standards are the standards to which Millrock must adhere as a TSX Venture Exchange issuer, and the Australia JORC standards are those to which Felix Gold must comply as an Australian issuer. The JORC standards are robust, similar and parallel to the NI43-101 standards. JORC (2012) is defined as an ‘acceptable foreign code’ under NI43-101 reporting standards and the definition and classification of Mineral Resources are essentially the same as the NI43-101 Canadian Institute of Mining Definition standards. The Millrock qualified person has not independently verified the drill hole data, drill core, and estimation methodology as reported by Felix.
Qualified Person The scientific and technical information disclosed within this document has been prepared, reviewed, and approved by Gregory A. Beischer, President, CEO, and a director of Millrock Resources. Mr. Beischer is a qualified person as defined in NI 43-101.
About Millrock Resources Inc. Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is recognized as the premier generative explorer in Alaska, holds royalty interests in British Columbia, Canada, and Sonora State, Mexico, is a significant shareholder of junior explorer ArcWest Exploration Inc. and owns a large shareholding in Resolution Minerals Limited. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet and, Altius as well as junior explorers Resolution, Riverside, PolarX, Felix Gold and Tocvan.
ON BEHALF OF THE BOARD “Gregory Beischer” Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT: Melanee Henderson, Investor Relations Toll-Free: 877-217-8978 | Local: 604-638-3164 Twitter | Facebook | LinkedIn
Some statements in this news release may contain forward-looking information (within the meaning of Canadian securities legislation) including without limitation the successful completion of an IPO and capital raise by Felix Gold and the intention to mount further exploration including drilling in 2022. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements.
YERINGTON, Nev., Nov. 10, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) is pleased to announce that it has filed a preliminary short form prospectus with the securities commissions in all provinces of Canada, except Quebec, in connection with a marketed public offering (the “Offering”) of units (the “Units”) of the Company seeking to raise aggregate gross proceeds of approximately C$75,000,000. The Company’s largest shareholder, Pala Investments Limited (“Pala”), has committed to purchase, on a private placement basis, an aggregate number of Units to maintain its current shareholding percentage in the Company (the “Private Placement”) after giving effect to both the Offering and the Private Placement (the “Purchased Units”) at the price per Purchased Unit determined in connection with the Offering.
Each Unit will consist of one common share of the Company (each a “Common Share”) and one-half of one common share purchase warrant (each full warrant, a “Warrant” and collectively the “Warrants”). Each Warrant will be exercisable for one Common Share at any time for a period of 18 months following closing of the Offering. Final pricing of the Units, the Warrant exercise price and the determination of the number of Units to be sold pursuant to the Offering will be determined following marketing. The Offering will be conducted on an overnight marketed “best efforts” basis by a syndicate of underwriters to be formed and led by Scotiabank, as lead underwriter and sole-bookrunner (collectively, the “Underwriters”).
The Company intends to grant the Underwriters an option, exercisable in whole or in part, at the sole discretion of the Underwriters, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company up to an additional 15% of the Units sold under the Offering, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes (the “Over-Allotment Option”). The Over-Allotment Option may be exercised by the Underwriters to purchase additional Units, Common Shares, Warrants or any combination thereof.
As announced on October 12, 2021, the Company entered into amendments to its amended and restated credit facility (the “KfW Facility”) with its senior project lender, KfW-IPEX Bank, for a significant deferral and extension of its debt facilities, providing substantially greater balance sheet flexibility and support for the completion of the ramp-up of its underground mining operations and subsequent advancement of its open pit project and broader property exploration targets. The Company expects the effectiveness of the deferral and extensions agreed under the KFW Facility to occur upon the closing of the Offering and the Private Placement.
Additionally, in connection with the Offering, the Company and Pala have agreed to amend the existing non-binding term sheet as previously announced on October 12, 2021 to provide for a binding commitment (the “Binding Term Sheet”) in respect of certain amendments to the credit facility entered into between Company and Pala on February 3, 2021 (as amended, the “Amended Credit Facility”). The Amended Credit Facility will consolidate all outstanding loans owing to Pala and the maturity date will be extended by two years from 2024 to 2026. Net proceeds raised in the Offering will replace the new tranche of up to US$41 million that was contemplated by the non-binding term sheet, which will be a significant improvement to the Company’s balance sheet. See the Company’s October 12, 2021 news release for additional details on the terms of the Amended Credit Facility.
The Company intends to use the net proceeds of the Offering for: (i) the development and ramp-up of the underground mine at the Company’s Pumpkin Hollow project (the “Underground Mine”); (ii) the repayment of bridge loans advanced under the promissory note issued by the Company to Pala on October 1, 2021, as amended and restated on November 1, 2021; and (iii) general corporate purposes. The net proceeds from the Private Placement will be utilized to retire and prepay an equivalent portion of the existing loans outstanding under the promissory note issued by the Company to Pala on June 10, 2021, as amended and restated (the “JunePromissory Note”), such that Pala will continue to maintain its current shareholding percentage in the Company after giving effect to the Offering and the Private Placement. The balance of the June Promissory Note will be consolidated and extended under the Amended Credit Facility in accordance with the Binding Term Sheet.
The Offering is expected to close on or about November 29, 2021, or such other date as the Company and the Underwriters may agree. Closing of the Offering is subject to customary closing conditions, including, but not limited to, the execution of an underwriting agreement and the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the Toronto Stock Exchange. The Private Placement is conditional on the closing of the Offering.
The preliminary short form prospectus is available on SEDAR at www.sedar.com. The Company has also today filed on SEDAR its condensed interim financial statements and the related management’s discussion and analysis for the quarter ended September 30, 2021.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has 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 now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.
NEVADA COPPER CORP. www.nevadacopper.com
Randy Buffington, President and CEO
For further information contact: Rich Matthews, Investor Relations Integrous Communications rmatthews@integcom.us +1 604 757 7179
Cautionary Language
This news release includes certain statements and information that constitute forward-looking information 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 statements and forward-looking information specifically include, but are not limited to, statements that relate to the completion of the Offering and the Private Placement and the timing in respect thereof, the entering into of the Amended Credit Facility and the use of proceeds of the Offering and the Private Placement.
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: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic 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 ramp-up, including the ability of the Company to address underground development and process plant issues; failure to obtain the effectiveness of extensions under and amendments to the KfW Facility; failure to enter into the Amended Credit Facility; ground conditions; cost overruns relating to development, construction and ramp-up of the Underground Mine; loss of material properties; interest rates increase; 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; labor 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; 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, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. The forward-looking information or statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. 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 could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.
Nevada Copper 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.
Copper corrected from the May record high and made higher lows
Four reasons the copper bull will take the price to new highs
Impressive price action in the face of Chinese selling
Nevada Copper- Three reasons why NEVDF is could outperform percentage gains in the nonferrous metal
Bull markets rarely move in straight lines- The next leg for the copper bull has begun
When Goldman Sachs called copper “the new oil” in April 2021, the price was on its way to a new record high at nearly $4.90 on the nearby COMEX futures contract. The world’s most active and liquid copper market on the London Metals Exchange reached a peak at over $10,700 per ton in May. Copper blew through the 2011 $4.6495 previous all-time peak as a hot knife goes through butter.
Even the most aggressive bull markets rarely move in straight lines. Corrections can be brutal when prices accelerate on the upside, reaching unsustainable short-term peaks.
Copper ran out of upside steam before touching the $4.90 per pound level on futures and $10,750 per ton level on LME forwards. The price fell just below the $4 level in August, three months after reaching the high. Copper was still “the new oil” when the price dropped, and the world’s leading copper consumer was hoping it would continue to fall. China has done everything to push copper’s price lower, but the red metal has exhibited remarkable resilience.
Meanwhile, Nevada Copper Corporation (NEVDF) has been working day and night to ramp up production and transform its balance sheet. The market has rewarded the company as the share price has been steadily increasing since the beginning of October.
Mining companies provide investors with leveraged exposure to a commodity as they tend to outperform the price action on the upside and underperform during corrections. Junior mining companies can magnify the leverage. Copper’s recent explosive move suggests that new highs are on the horizon. NEVDF has the potential to do even better on a percentage basis as the company ramps up its production of the red industrial metal.
Copper corrected from the May record high and made higher lows Copper futures ran out of steam at just below the $4.90 level, with the LME forwards moving the $10,747.50 per ton level for the first time. The May highs led to a substantial correction that briefly took COMEX futures below $4 per pound in August.
Source: CQG The chart shows the decline from $4.8985 in May to a low of $3.9615 in mid-August, a 19.1% correction. COMEX futures made higher lows of $4.0220, $4.0545, and $4.1140 in late September and early October before blasting off on the upside to over the $4.70 level as of October 15.
Source: Barchart
The chart illustrates the decline from $10,747.50 on May 10 to a low of $ 8,740 per ton on August 19 as copper forwards corrected by 18.7%. Copper then made higher lows at $8,810 on September 21 and $8,876.50 on October 1 before exploding higher to the $10,281 level on October 15.
Four reasons the copper bull will take the price to new highs
The four leading factors supporting a continuation of new and higher highs in the copper market are:
Rising inflation– CPI rose by 5.4% in September, once again exceeding expectations. While the Fed will likely begin tapering quantitative easing, tapering is not tightening. Moreover, fiscal stimulus continues as the multi-trillion budget will pump more inflationary stimulus into the economy.
Building demand– The infrastructure rebuilding package in the US will increase copper requirements for construction projects to rebuild the crumbling roads, bridges, tunnels, airports, schools, and government buildings over the coming years. Moreover, China’s copper requirements will continue to increase as the world’s most populous country builds infrastructure.
Decarbonization– Addressing climate change boosts copper demand. As Goldman Sachs said in April, decarbonization does not occur without copper, making the metal “the new oil.” Copper requirements for EVs, wind turbines, and other clean energy projects is a multi-decade affair for the red metal.
Supply shortages– Copper mining companies are scrambling to find new supply sources. Production can’t keep pace with demand- It takes eight to ten years to bring new copper mining projects on stream. BHP, a leading global mining company, is in talks with Ivanhoe Mines for participation in the Western Foreland exploration area in the politically dicey Democratic Republic of the Congo.
Bull markets tend to experience severe selloffs. China has attempted to cool off the bullish copper and other nonferrous metals markets. The world’s leading copper consumer has the most to lose from runaway prices on the upside.
Impressive price action in the face of Chinese selling
On September 1, China auctioned 150,000 tons of copper, aluminum, and zinc from strategic stockpiles, which was the third auction sale since early July, attempting to temper the market’s bullish price action. The market had expected the sales. Copper rallied to the highest level since early August on September 13, with many other base metals following the red metal higher. The price then retreated, but copper made a higher low on September 21. The Chinese auction to cool off the rally put 80,000 tons of copper, 210,00 tons of aluminum, and 130,000 tons of zinc into the market since early July. Since the day of the first auction, copper, aluminum, and zinc prices all posted gains. Imagine where prices might be if China did not sell from its strategic stocks.
In early October, China auctioned the fourth round of base metals, lifting the total sales to 570,000 metric tons. Copper and all the base metals posted explosive gains after the latest auction. China is selling copper, aluminum, and zinc from its strategic stockpiles. The attempt to stem price appreciation makes the Chinese a buyer of the metals on price weakness to replace its stocks. However, the auctions have not had the desired impact on price. The price action has been more than impressive in the face of the sales.
While BHP looks towards the DRC and other regions for new copper supplies, Nevada Copper is making significant headway on its production project in a highly stable political and economic environment in the United States. Moreover, Nevada is a state that continues to encourage mining activity and is rich in red metal reserves.
Nevada Copper- Three reasons why NEVDF has the potential to outperform percentage gains in the nonferrous metal
Nevada Copper (NEVDF) has made great strides over the past weeks and months. A successful junior mining company is positioned best to profit during a bull market in the commodity it extracts from the earth’s crust. Three factors support the price of NEVDF shares as copper has taken off on the upside again:
Factor one: Turing the corner on operations in Q3- On October 6, NEVDF provided an update on operational performance at the company’s underground mine at its Pumpkin Hollow project, noting:
Copper in concentrate produced during September increased by 265% compared to August, driven by higher stope production. Approximately 30,386 tons of ore processing yielded 682 tons of copper concentrate at an average grade of 22%, reflecting 150 tons of copper output.
Stoping is the process of extracting the desired ore or mineral from an underground mine, leaving open space called a stope. Stoping at Pumpkin Hollow significantly accelerated since mid-August, with the second and third stope panels fully mined and a fourth stope panel currently being mined. Further stopes are planned for October and November, and the high-grade Sugar Cube zone to be mined during the final months of 2021.
NEVDF experienced the highest monthly development footage achieved since April 2021 in September, with a 12% increase over August. Approximately 750 lateral equivalent feet were advanced in September.
Outgoing Interim CEO Mike Brown said, “I am very pleased to see the improved trajectory in our production ramp-up and a recovery in productivities. The increased ore production was a key objective for September, and together with the improving productivities on-site, along with the ongoing management strengthening, provide further confidence in the mine ramp-up.”
Randy Buffington, a veteran mining executive with previous management experience at Barrick, Placer Dome, and Cominco, is taking over as President and CEO at Nevada Copper.
Factor two: On October 12, NEVDF announced it had agreed with its senior project lender and concluded a non-binding term sheet with its largest shareholder to provide additional financing and a significant deferral and extension of its debt facilities. The move offers Nevada Copper greater balance sheet flexibility and support for the ramp-up of its underground mining operations and advancement of its open-pit project and broader property exploration targets. The highlights of the more flexible financing arrangement include:
Two-year deferral of first loan repayments scheduled to begin in July 2025.
Extension of loan amortization with the final maturity pushed to July 2029.
Deferral of the formal long stop date for the project as the completion test was deferred to June 2023.
All outstanding shareholder loans were consolidated under an amended existing shareholder credit facility.
A two-year extension to maturity data until 2026 with no scheduled payments before final maturity.
An increase of $41 million in additional liquidity under the amended credit facility.
Randy Buffington, NEVDF’s new CEO, said, “These combined balance sheet improvements provide significant additional runway for the Company as we move forward to complete the ramp-up of our underground operations. The ongoing support of two of our major stakeholders provides further validation of the significant inherent value of our copper operations in Nevada and allows us to continue to pursue the growth potential embedded within our asset base.”
Factor three: NEVDF’s value proposition is compelling when compared to peers. The chart shows NEVDF’s market cap versus its enterprise value compared to other diversified metals and mining companies with similar market caps:
Source: Seeking Alpha
As the chart highlights, the enterprise value is over 2.2 times the current $173.53 million market cap, leading to plenty of upside room for NEVDF shares. There is plenty of room for growth as the enterprise value will rise with output from the underground and open-pit mining operations over the coming months and years. According to data from Seeking Alpha, at 97 cents per share on October 15, NEVDF had a $173.53 million market cap. The average daily volume in the past 15 trading days from all exchanges stood at just over 2,500,000 shares.
Source: Barchart
The chart shows the rise from 38.78 cents on October 1 to a high of 99.2 cents per share on October 14. NEVDF shares closed not far from the high at 96.56 cents on Friday, October 15.
The trend in copper and NEVDF is bullish, and the trend is always your best friend in markets.
Bull markets rarely move in straight lines- The next leg for the copper bull has begun
Bull markets can be bucking broncos as corrections are often downdrafts in prices. Copper’s decline from nearly $4.90 to below $4 and recovery to over $4.70 on October 15 is a bullish sign for the red metal.
Copper’s strength, along with the other base metals in the face of Chinese stockpiling selling, has been more than impressive and is a testament to the bullish factors that are likely to push the price higher. Goldman Sachs expects LME copper forwards to reach the $15,000 per ton level by 2025, putting COMEX futures over $6.80 per pound. Other analysts see the price rising to as high as $20,000 per ton as decarbonization will keep demand outpacing supplies.
Bull markets often take prices far higher than analysts believe possible before they peak. As the world searches for more copper to meet the rising demand, Nevada Copper’s mines are in the most economically and politically stable region of the world. NEVDF shares may have just begun to rally as the price threatens to move over the $1 per share level.
VANCOUVER, BC / ACCESSWIRE / October 21, 2021 / Group Ten Metals Inc. (TSX.V:PGE | OTCQB:PGEZF; FSE:5D32) (the “Company” or “Group Ten”) is pleased to report the first independent National Instrument 43-101 (“NI 43-101”) mineral resource estimate (the “2021 Resource”) for its 100%-owned Stillwater West platinum group element, nickel, copper, cobalt, and gold (“PGE-Ni-Cu-Co + Au”) project in Montana, USA. The study was completed by SGS Geological Services (“SGS”).
The Company will host a live webcast on Thursday October 28th at 9am Pacific time (12pm Eastern) to discuss the 2021 Resource, recent drill campaign, and plans for the Stillwater West project. To register, click here.
Highlights
Inferred mineral resources total 2.4 million ounces palladium, platinum, rhodium, and gold (“4E”) plus 1.1 billion pounds of nickel, copper and cobalt in a constrained model totaling 157 million tonnes at an average grade of 0.45% total nickel equivalent (“NiEq”) (equal to 1.20 g/t palladium equivalent, or “PdEq”) using a 0.20% NiEq cut-off grade. See detailed breakdown in Tables 1 and 2 below.
The 2021 Resource incorporates five deposits of sulphide mineralization that cover 8.7 kilometers of strike length within the central area of the project. The strong correlation that is demonstrated between resource areas and untested high-level geophysical targets (Figure 1), and metal-in-soil anomalies, provides a strong basis for expansion of the resource with 2021 drill results, and future drill campaigns (Figures 2 to 6).
Mineralization, consisting of thick horizons of nickel and copper sulphide that are enriched in palladium, platinum, rhodium, gold and cobalt, is consistent with Group Ten’s “Platreef-style” geological model that is based on known parallels with South Africa’s Bushveld Igneous Complex.
Deposits in the 2021 Resource are defined by 83 drill holes from a total of 216 holes drilled at Stillwater West prior to 2021, including all holes from Group Ten’s 2019 and 2020 campaigns. A number of the remaining drill holes provide early confirmation of target mineralization in otherwise untested anomalies across much of the 32-kilometer project, accelerating future exploration programs and demonstrating significant expansion potential outside of the known deposit areas.
Assays are pending from the 14-hole 2021 drill campaign, which focused on expansion of three of the five deposits by completing step-out holes designed to build onto the 2021 Resource.
Rhodium totaling 61,000 ounces was modeled at three of the five target areas, where sufficient data was available. At recent spot prices, this endowment is equivalent to over 400,000 ounces palladium and over 750,000 ounces platinum. The Company believes rhodium results are understated due to the lack of historic assay data and is working to fully include rhodium in future mineral resource updates.
The 2021 Resource estimate will be incorporated into an NI43-101-compliant technical report for the Stillwater West project to be filed within 45 days.
Michael Rowley, Group Ten’s President and CEO states, “We are extremely pleased with the results of our inaugural resource estimate that provides a robust debut of high-demand battery and platinum group metals in a top US mining district. This is a major milestone in the advancement of both the project and Group Ten Metals. Mineralization in the five deposits shows excellent continuity and grade across large areas, with strong geophysical and geochemical signatures that remain open in all directions demonstrating excellent potential for expansion in subsequent drill campaigns. In this regard, we look forward to reporting results from our 2021 campaign, our biggest yet, which we believe met the objective of increasing the 2021 Resource. More than ever we see extraordinary potential for Stillwater West to become a large-scale and strategically significant US-based source of battery metals to meet growing electrification needs while also supplying PGEs for catalytic convertors and increasing fuel cell demand.”
TABLE 1 – Grade and Contained Metal by Deposit at a 0.20% NiEq Cut-Off Grade (Equals 0.53 g/t PdEq) – Stillwater West Inferred Mineral Resource Estimate (Base Case)
CIM (2014) definitions were followed for Mineral Resources Reporting. The constrained Mineral Resources are reported at a base case cut-off grade of 0.20% NiEq. Cut-off grades and metal equivalents are based on metal prices of $7.00/lb Ni, $3.50/lb Cu, $20.00/lb Co, $900/oz Pt, $1,800/oz Pd and $1,600/oz Au, with assumed metal recoveries of 80% for Ni, 85% for copper, 80% for Co, Pt, Pd and Au, a mining cost of US$2.20/t rock, and processing and G&A cost of US$12.75/t mineralized material. Rhodium modeled but not included in equivalency calculations. All figures are rounded to reflect the relative accuracy of the estimate.
The current Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and grade of reported Inferred Resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured. However, based on the current knowledge of the deposits, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
TABLE 2 – Grade and Contained Metal by Deposit at a Higher Grade 0.35% NiEq Cut-Off (Equals 0.93 g/t PdEq)
FIGURE 1 – 2021 Stillwater West Mineral Resource Estimate Over 3D Model of Induced Polarization Survey Results
Sensitivity Analysis
A sensitivity analysis is provided in Table 3 below which demonstrates the variation in grade and tonnage in the deposit at various cut-off grades. Mineralization shows exceptional continuity, enabling models at higher-cut-off grades including inferred mineral resources of 97 million tonnes of 0.55% NiEq (equal to 1.47 g/t PdEq) containing 1.8 million ounces palladium, platinum, rhodium, and gold (“4E”) with 857 million pounds of nickel, copper and cobalt (see Table 2, above).
TABLE 3 – Grade and Contained Metal Sensitivity at Various NiEq Cut-off Grades
Constrained Mineral Resources are reported at a base case cut-off grade of 0.20% NiEq. Values in the table reported above and below the cut-off grades 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 cut-off grade. All figures are rounded to reflect the relative accuracy of the estimate. Composites have been capped where appropriate.
2021 Exploration Update
Work in 2021 focused largely on diamond core drilling within the area of the 2021 Resource and an Induced Polarization “IP” geophysical survey on the west side of the core project area, including the Pine target.
Phase I of planned expansion drilling has now been completed. 14 holes totaling 5,138 meters were drilled in a two-rig program that tested priority targets at Chrome Mountain (Hybrid and DR deposit areas), and at Iron Mountain at the CZ (formerly Camp) and HGR deposit areas. Holes were prioritized to step out from known mineralization with the primary objective of expanding and upgrading the 2021 Resource estimate in 2022. Assays are pending, however, on a visual basis the predictive geologic model developed by Group Ten Metals is effectively targeting expansion of known horizons of sulphide mineralization, including high-grade intervals identified in the 2019 and 2020 drill campaigns, and identifying numerous untested targets at Stillwater West. Drill core is in various stages of processing with first results expected over the coming weeks and continuing over the coming months. Expansion drilling is expected to resume in Q2 2022 upon review and integration of 2021 results.
The 2021 portion of the expansion IP survey is also complete, with approximately 25 line-kilometers focused on the Chrome Mountain and high-grade Pine target areas at the west side of the highly successful 2020 survey. Very high-level anomalies in untested areas were identified in preliminary results that will be presented in a coming news release as final information becomes available. The second phase of the expanded IP survey is expected to resume in 2022 in the central and eastern portions of the 2020 survey grid.
Rhodium
Rhodium has been identified at potentially significant co-product grades of 0.03 to 0.10 g/t Rh in drill results in four of the five deposit areas at Stillwater West, with shorter intervals ranging up to 0.50 g/t Rh. The lack of historic rhodium assay data has prevented assessment of the rhodium content at the Central and Crescent deposits and in some parts of the other deposits. For this reason, the Company believes rhodium levels are currently understated at Stillwater West and will continue to include complete rhodium assays in future campaigns with the objective of fully integrating rhodium in future resource updates.
Rhodium is a rare platinum group element that is primarily used as a specialized catalyst alongside platinum and palladium in automotive catalytic converters. It is mined solely as a co-product at grades that are often below 0.1 g/t. South Africa dominates global production, and there is very little mine supply in North America. Sibanye-Stillwater, adjacent to Group Ten’s Stillwater West project, is the primary US producer.
Supply constraints for rhodium have supported elevated prices since 2017. At recent values, rhodium trades at more than 12 times the value of platinum on a spot price basis at over USD$13,000 per ounce, meaning 0.1 g/t Rh equates to approximately 1.2 g/t platinum equivalent.
Metallurgy
Preliminary metallurgical assessments by Group Ten Metals returned strong nickel tenor in sulphides drilled by the Company in 2020. In addition, favorable historic bench-scale metallurgical results completed by AMAX in the 1970s at the Iron Mountain target area demonstrate the potential for effective nickel and copper sulphide flotation and PGE recovery. Sample collection for more detailed metallurgical testing is on-going as part of the expanding development of Stillwater West, with a view to including full metallurgical assessment in future studies.
Carbon Capture at Stillwater West
All five deposits in the 2021 Resource contain desirable nickel sulphide mineralization that has been shown to require a much lower environmental footprint in subsequent processing to nickel metal or nickel sulphate in comparison to the laterite nickel ores that dominate global production. As part of Group Ten’s commitment to global sustainability initiatives, the Company is also examining the potential for large-scale carbon sequestration with the objective of further reducing and possibly eliminating the carbon footprint of a potential mining operation at Stillwater West.
Preliminary results demonstrate the presence of certain minerals that are known to have high capacity to bind carbon dioxide by a natural process known as mineral carbonation. As announced in a news release on September 23, 2021, the Company has entered a second phase of research with Dr. Greg Dipple and his team at the University of British Columbia, Canada, to assess the capacity of rock samples from Stillwater West to bind carbon dioxide for permanent disposal as part of a potential mining operation.
In addition to being strongly aligned with Group Ten’s Environmental, Social and Governance guidelines and principles, the incorporation of carbon uptake may bring financial benefits via initiatives such as the 45Q Tax Credit for Carbon Oxide Sequestration that is now in place in the US.
Qualified Person
The Stillwater West PGE-Ni-Cu-Co + Au project 2021 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 October 7, 2021. Armitage conducted a site visit to the property on August 9 and 10, 2021
Estimation Methodology and Parameters
Completion of the 2021 Resource involved the assessment of a drill hole database, which included all data for surface drilling completed through the fall of 2020, as well as 3D mineral resource models, and available written reports. SGS used 83 holes and 18,386 meters of drill data to delineate five deposits in the 2021 Resource estimate, from a total database of 216 drill holes and 32,465 meters of core data compiled by the Company. All holes from Group Ten’s 2019 and 2020 drill campaigns were included. No assay data has been received to date from the 2021 drill program.
Inverse Distance squared restricted to mineralized domains were used to Interpolate grades for the main elements of interest including Ni (ppm), Cu (ppm), Co (ppm), Pt (g/t), Pd (g/t) and Au (g/t), as well as NiEq (%), NiEq_R (%), Rh (ppb), Cr (ppm), and S (%) into block models. Composites of 1 meter have been capped where appropriate. Fixed specific gravity values of 2.90 – 3.10 g/cm3 (depending on deposit) were used to estimate the 2021 Resource tonnage from block model volumes. Waste in all areas was given a fixed density of 2.9 g/cm3.
The constrained 2021 Resource grade blocks were quantified above the base case cut-off grade. At this base case cut-off grade the deposits show excellent geologic and grade continuity. The project is at an early stage of exploration and all deposits are open along strike and down dip. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rates, mining costs etc.).
The constrained 2021 Resources are presented undiluted and in situ (no minimum thickness), constrained by continuous 3D wireframe models, and are considered to have reasonable prospects for eventual economic extraction. Based on a review of the project location, size, geometry, continuity of mineralization and proximity to surface of the deposits, and spatial distribution of the five main deposits of interest (all within a 8.7 kilometer strike length), it is envisioned that the deposits may be mined by open pit or bulk tonnage underground methods. The results from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic extraction” by open pit mining methods and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the project. The results are used as a guide to assist in the preparation of a Mineral Resource statement and to select an appropriate resource reporting cut-off grade. Pit optimization does not represent an economic study. Future engineering studies will be needed to develop optimal bulk tonnage mining methods.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
About Stillwater West
Group Ten is rapidly advancing the Stillwater West PGE-Ni-Cu-Co + Au project towards becoming a world-class source of low-carbon, sulphide-hosted nickel, copper, and cobalt, critical to the electrification movement, as well as key catalytic metals including platinum, palladium and rhodium used in catalytic converters, fuel cells, and the production of green hydrogen. Stillwater West positions Group Ten as the second-largest landholder in the Stillwater Complex, with a 100%-owned position adjoining and adjacent to Sibanye-Stillwater’s PGE mines in south-central Montana, USA1. The Stillwater Complex is recognized as one of the top regions in the world for PGE-Ni-Cu-Co mineralization, alongside the Bushveld Complex and Great Dyke in southern Africa, which are similar layered intrusions. The J-M Reef, and other PGE-enriched sulphide horizons in the Stillwater Complex, share many similarities with the highly prolific Merensky and UG2 Reefs in the Bushveld Complex. Group Ten’s work in the lower Stillwater Complex has demonstrated the presence of large-scale disseminated and high-sulphide battery metals and PGE mineralization, similar to the Platreef in the Bushveld Complex2. Drill campaigns by the Company, complemented by a substantial historic drill database, have delineated five deposits of Platreef-style mineralization across a core 9.2-kilometer span of the project, all of which are open for expansion into adjacent targets. Multiple earlier-stage Platreef-style and reef-type targets are also being advanced across the remainder of the 32-kilometer length of the project based on strong correlations seen in soil and rock geochemistry, geophysical surveys, geologic mapping, and drilling.
About Group Ten Metals Inc.
Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt, and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu-Co + Au project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA. Group Ten also holds the high-grade Black Lake-Drayton Gold project adjacent to Treasury Metals’ development-stage Goliath Gold Complex in northwest Ontario, and the Kluane PGE-Ni-Cu-Co project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfield assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver and gold, platinum and palladium, and copper. Member companies include Metallic Minerals in the Yukon’s high-grade Keno Hill silver district and La Plata silver-gold-copper district of Colorado, Group Ten Metals in the Stillwater PGM-nickel-copper district of Montana, and Granite Creek Copper in the Yukon’s Minto copper district. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorers/developers and major producers. With this expertise, the companies are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven, but under-explored, mining districts. The Metallic Group is headquartered in Vancouver, BC, Canada, and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.
Mr. Allan Armitage, Ph.D., P.Geo., is a Qualified Person in accordance with National Instrument 43-101 and has reviewed and approved the technical content of this news release with respect to the 2021 Resource estimate. As independent QP, Mr. Armitage was responsible for the preparation of the technical information pertaining to the Resource estimate.
Mr. Mike Ostenson, P.Geo., is the Qualified Person for the purposes of National Instrument 43-101, and he has reviewed and approved the technical disclosure outside of the 2021 Resource estimate that is contained in this news release.
Forward-Looking Statements
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 of 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, titlefuture driling actiivities and the locations of such drilling, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten 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, 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 companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten 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.
Shawn Khunkhun:
Shawn Khunkhun:
