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   Gold/Mining/EnergyMining News of Note


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To: LoneClone who wrote (164634)4/4/2022 1:41:04 PM
From: LoneClone
   of 167649
 
ORLA MINING DECLARES COMMERCIAL PRODUCTION AT CAMINO ROJO

newswire.ca

Orla Mining Ltd. Mar 31, 2022, 16:00 ET

VANCOUVER, BC, March 31, 2022 /CNW/ - Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to announce the declaration of commercial production at the Camino Rojo Oxide Gold Mine ("Camino Rojo"), effective April 1, 2022.

"In reaching commercial production at Camino Rojo, we have completed our transformation from explorer through developer to producer in three years", said Jason Simpson, President and Chief Executive Officer of Orla Mining. "Today, the team will celebrate this success but tomorrow we will focus on how to grow our production."

The declaration of commercial production at Camino Rojo comes after a successful commissioning period which included the ramp up of mining and processing to sustained throughput levels in excess of 75% of designed nameplate capacity of 18,000 tonnes per day. All major construction activities have now been completed and Camino Rojo has demonstrated its ability to sustain ongoing production levels. The operation will continue to seek opportunities to improve and optimize the throughput and availabilities to achieve and ultimately exceed design nameplate capacities.

About Orla Mining Ltd.

Orla is operating the Camino Rojo Oxide Gold Mine, a gold and silver open-pit and heap leach mine, located in Zacatecas State, Central Mexico. The operation is 100% owned by Orla and covers over 160,000 hectares. The technical report for the 2021 Feasibility Study on the Camino Rojo oxide gold project entitled "Unconstrained Feasibility Study NI 43-101 Technical Report on the Camino Rojo Gold Project – Municipality of Mazapil, Zacatecas, Mexico" dated January 11, 2021, is available on SEDAR and EDGAR under the Company's profile at www.sedar.com and www.sec.gov, respectively. The technical report is also available on Orla's website at www.orlamining.com. Orla also owns 100% of Cerro Quema located in Panama which includes a near-term gold production scenario and various exploration targets. Cerro Quema is a proposed open pit mine and gold heap leach operation. The technical report for the Pre-Feasibility Study on the Cerro Quema oxide gold project entitled "Project Pre-Feasibility Updated NI 43-101 Technical Report on the Cerro Quema Project, Province of Los Santos, Panama" dated January 18, 2022, is available on SEDAR and EDGAR under the Company's profile at www.sedar.com and www.sec.gov, respectively. The technical report is also available on Orla's website at www.orlamining.com.

Forward-looking Statements

This news release contains certain "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities legislation and within the meaning of Section 27A of the United States Securities Act of 1933, as amended, Section 21E of the United States Exchange Act of 1934, as amended, the United States Private Securities Litigation Reform Act of 1995, or in releases made by the United States Securities and Exchange Commission, all as may be amended from time to time, including, without limitation, statements regarding achievement and exceedance of the designed nameplate capacity at Camino Rojo. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements were made, including without limitation, assumptions regarding the price of gold, silver, and copper; the accuracy of mineral resource and mineral reserve estimations; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained, including concession renewals and permitting; that political and legal developments will be consistent with current expectations; that currency and exchange rates will be consistent with current levels; and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: uncertainty and variations in the estimation of mineral resources and mineral reserves, including risks that the interpreted drill results may not accurately represent the actual continuity of geology or grade of the deposit, bulk density measurements may not be representative, interpreted and modelled metallurgical domains may not be representative, and metallurgical recoveries may not be representative; the Company's reliance on Camino Rojo and risks associated with its start-up phase; financing risks and access to additional capital; risks related to natural disasters, terrorist acts, health crises and other disruptions and dislocations, including by the COVID-19 pandemic; risks related to the Company's indebtedness; success of exploration, development, and operation activities; foreign country and political risks, including risks relating to foreign operations and expropriation or nationalization of mining operations; concession risks; permitting risks; environmental and other regulatory requirements; delays in or failures to enter into a subsequent agreement with Fresnillo Plc with respect to accessing certain additional portions of the mineral resource at Camino Rojo and to obtain the necessary regulatory approvals related thereto; the mineral resource estimations for Camino Rojo being only estimates and relying on certain assumptions; the Layback Agreement with Fresnillo Plc remaining subject to the transfer of surface rights; delays in or failure to get access from surface rights owners; risks related to guidance estimates and uncertainties inherent in the preparation of feasibility and pre-feasibility studies, including but not limited to, assumptions underlying the production estimates not being realized, changes to the cost of production, variations in quantity of mineralized material, grade or recovery rates, geotechnical or hydrogeological considerations during mining differing from what has been assumed, failure of plant, equipment or processes, changes to availability of power or the power rates, ability to maintain social license, changes to exchange, interest or tax rates, cost of labour, supplies, fuel and equipment rising, changes in project parameters, delays, and costs inherent to consulting and accommodating rights of local communities; uncertainty in estimates of production, capital, and operating costs and potential production and cost overruns; the fluctuating price of gold, silver, and copper; global financial conditions; uninsured risks; competition from other companies and individuals; uncertainties related to title to mineral properties; conflicts of interest; risks related to compliance with anti-corruption laws; volatility in the market price of the Company's securities; assessments by taxation authorities in multiple jurisdictions; foreign currency fluctuations; the Company's limited operating history; risks related to the Company's history of negative operating cash flow; litigation risks; intervention by non-governmental organizations; outside contractor risks; risks related to historical data; unknown labilities in connection with acquisitions; the Company's ability to identify, complete, and successfully integrate acquisitions; dividend risks; risks related to the Company's foreign subsidiaries; risks related to the Company's accounting policies and internal controls; the Company's ability to satisfy the requirements of the Sarbanes-Oxley Act of 2002; enforcement of civil liabilities; the Company's status as a passive foreign investment company for U.S. federal income tax purposes; information and cyber security; gold industry concentration; shareholder activism; risks associated with executing the Company's objectives and strategies, as well as those risk factors discussed in the Company's most recently filed management's discussion and analysis, as well as its annual information form dated March 18, 2022, to be available on www.sedar.com and www.sec.gov. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.

Cautionary Note to U.S. Readers

The disclosure contained or referenced herein uses mineral reserve and mineral resource classification terms that comply with reporting standards in Canada, and mineral reserve and mineral resource estimates are made in accordance with Canadian NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards"). Canadian NI 43-101 establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the mineral reserve disclosure requirements of the United States Securities Exchange Commission (the "SEC") set forth in Industry Guide 7. Consequently, information regarding mineralization contained or referenced herein is not comparable to similar information that would generally be disclosed by U.S. companies under Industry Guide 7 in accordance with the rules of the SEC which applied to U.S. filings prior to the current SEC Modernization Rules (as defined herein). Further, the SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the Securities Exchange Act of 1934 ("Exchange Act"). These amendments became effective February 25, 2019 (the "SEC Modernization Rules") and, commencing for registrants with their first fiscal year beginning on or after January 1, 2021, the SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7. As a foreign private issuer that files its annual report on Form 40-F with the SEC pursuant to the multi-jurisdictional disclosure system, the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. The SEC Modernization Rules include the adoption of terms describing mineral reserves and mineral resources that are "substantially similar" to the corresponding terms under the CIM Definition, but there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards adopted under the SEC Modernization Rules. U.S. investors are also cautioned that while the SEC recognizes "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under the Modernization Rules, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable. Further, "inferred mineral resources" have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of the "inferred mineral resources" exist. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. For the above reasons, information contained or referenced herein regarding descriptions of our mineral reserve and mineral resource estimates is not comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements of the SEC under either Industry Guide 7 or SEC Modernization Rules.

SOURCE Orla Mining Ltd.

For further information: Jason Simpson, President & Chief Executive Officer; Andrew Bradbury, Director, Investor Relations, www.orlamining.com, info@orlamining.com



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To: LoneClone who wrote (164635)4/4/2022 1:43:34 PM
From: LoneClone
   of 167649
 
MAG Silver Reports 2021 Annual Results

ca.finance.yahoo.com

MAG Silver Corp.
Thu, March 31, 2022, 4:40 p.m.·21 min read

VANCOUVER, British Columbia, March 31, 2022 (GLOBE NEWSWIRE) -- MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG” or the “Company”) announces the Company’s audited consolidated financial results for the year ended December 31, 2021. For details of the audited consolidated financial statements, Management's Discussion and Analysis, Annual Information Form and Annual Report on Form 40-F for the year ended December 31, 2021, please see the Company’s filings on SEDAR ( www.sedar.com) or on EDGAR ( www.sec.gov).

All amounts herein are reported in $000s of United States dollars (“US$”) unless otherwise specified.

HIGHLIGHTS – DECEMBER 31, 2021 AND SUBSEQUENT TO YEAR END

OPERATIONAL

  • Significant progress was achieved during the year ended December 31, 2021 on the construction of the 4,000 tonnes per day (“tpd”) Juanicipio processing plant as the Juanicipio project team delivered the project for plant commissioning late in the fourth quarter of 2021.

  • The plant commissioning timeline was extended, however, by approximately six months until the regulatory approval to tie into the national power grid is obtained. The plant commissioning timeline is now expected to commence in Q2 2022.

  • As reported by the operator Fresnillo, the Juanicipio Project is expected to come in on budget with the processing plant expected to be ramped up to 85% to 90% of plant capacity by the end of 2022.

  • A regularly updated photo gallery of construction progress at Juanicipio is available at magsilver.com.

  • Campaign processing of mineralized material from development headings continues through the nearby Fresnillo plant and starting in Q4 2021 mineralized material also began to be campaign processed at Fresnillo’s Saucito plant. Saucito’s flowsheet better resembles that of the Juanicipio plant and will provide further valuable metallurgical benefits as production commences at Juanicipio.

  • The campaign processing rate originally targeted at 16,000 tonnes per month increased significantly to an average of 37,983 tonnes per month in Q4 2021 and to an average of 44,963 tonnes per month for the first two months of 2022.

  • Processing at the Fresnillo plants is expected to continue until the Juanicipio plant is commissioned, with Fresnillo making available any unused plant capacity at its Minera Fresnillo and Minera Saucito operations, and if possible matching commissioning and ramp up tonnages that were previously expected at Juanicipio.

  • For the three months ended December 31, 2021, on a 100% basis:

  • 113,950 tonnes of mineralized material were campaign processed through the Fresnillo and Saucito plants, with 1,519,027 payable silver ounces, 3,641 payable gold ounces, 563 tonnes of lead and 800 tonnes of zinc produced and sold;

  • Average silver head grade was 542 grams per tonne (“g/t”); and

  • Pre-commercial production sales totaled $39,368 for the quarter (net of treatment and processing costs), less $7,593 in mining and transportation costs, netting $31,775 in gross profit by Minera Juanicipio in the quarter.

  • For the year ended December 31, 2021, on a 100% basis:

  • 251,907 tonnes of mineralized material were campaign processed through Fresnillo’s plants, with 2,974,524 payable silver ounces, 5,975 payable gold ounces, 1,065 tonnes of lead and 1,519 tonnes of zinc produced and sold;

  • Average silver head grade was 470 g/t; and

  • Pre-commercial production sales of $75,393 (net of treatment and processing costs) less $15,329 in mining and transportation costs, netting $60,064 gross profit in Minera Juanicipio for the year.

  • Since commencing campaign processing of Juanicipio mineralized material from development headings in August of 2020 through February 2022, a total of 413,691 tonnes of mineralized development material have been processed through the nearby Fresnillo plant and starting in December 2021 in the Saucito plant:

  • contributing cash-flow to offset some of the initial project capital; and

  • de-risking Juanicipio’s metallurgical performance, which is expected to significantly speed up project ramp-up.

  • A further 89,925 tonnes of mineralized development material with a silver head grade of 529 g/t were processed in January and February 2022 through the Fresnillo and Saucito plants.

  • EXPLORATION

  • Results of the Juanicipio 2020 exploration program were reported in the third quarter (see Press Release dated August 5, 2021), and the program successfully:

  • Confirms, and allows modeling with greater detail and confidence of the high-grade silver resource within the upper parts of the Valdecañas Bonanza Zone (as defined in the 2017 PEA) where the first several years of mining is expected to occur;

  • Confirms, expands, and allows improved modeling of the continuous wide mineralization of the Valdecañas Deep Zone (as defined in the 2017 PEA); and

  • Confirms, expands, and allows improved modeling of the ever-growing Anticipada Vein.

  • The Juanicipio 2021 exploration program was completed in Q4 2021 with $6,296 spent on a 100% basis and was focused on continued step-out and infill drilling of the Valdecañas Vein System (including independent targeting of the Venadas Vein family and the Anticipada Vein).

  • The Juanicipio 2022 exploration program is currently in process, with five drill rigs presently on surface running concurrently with continued underground definition and geotechnical drilling, and one rig testing the new Cesantoni target in the northwest part of the Juanicipio concession.

  • Deer Trail Project in Utah:

  • Assays were released in Q3 2021 for the Phase I drill program (see Press Release dated September 7, 2021), which successfully fulfilled all three of its planned objectives by:

  • Confirming the presence of a thick section of more favorable carbonate host rocks (the predicted “Redwall Limestone” or “Redwall”) below the Deer Trail mine;

  • Confirming and projecting two suspected mineralization feeder structures to depth; and

  • Intercepting high-grade mineralization related to those structures in host rocks below what was historically known.

  • A follow up 5 hole/5,000 metre Phase II drill program commenced in Q3 2021 and is in process with all assays pending.

  • Subsequent to the year end, the Company entered into a Definitive Arrangement Agreement with Gatling Exploration Inc. (TSXV:GTR, OTCOB:GATGF) (“Gatling”) pursuant to which the Company will acquire all of the issued and outstanding common shares of Gatling in an all-share transaction. The Company and Gatling have also entered into a loan agreement pursuant to which the Company has agreed to provide Gatling with a C$3 million secured convertible bridge loan to finance Gatling’s accounts payable and operating expenses.

  • LIQUIDITY AND CAPITAL RESOURCES

  • As at December 31, 2021, MAG held cash of $56,748 while Minera Juanicipio had cash on hand of $18,972 on a 100% basis.

  • According to the operator Fresnillo, the Juanicipio Project construction is expected to be delivered on budget at $440,000.

  • With the current ramp up of underground mine production and given hiring restrictions on contractors arising from new 2021 labour reform legislation, the timing of various sustaining capital expenditures has been brought forward:

  • These sustaining capital costs are included in current Juanicipio development costs but are not considered by the operator as part of the $440,000 initial project capital; and

  • The costs incurred are expected to reduce future sustaining capital costs and totaled approximately $41,388 on a 100% basis in the second half of 2021 in preparation for the legislation to come into effect.

  • The expected cash flow from the ongoing campaign processing until the Juanicipio plant is commissioned, along with the cash held by Minera Juanicipio at December 31, 2021 of $18,972, are projected to substantially fund the remaining capital expenditures in the $440,000 initial capex (a cash call has not been needed since mid-December 2021 which was $21,000 on a 100% basis).

  • Should there be additional funding requirements in excess of the cashflow generated, related to further commissioning delays or to additional sustaining capital that is being brought forward prior to attaining commercial production, there may still be further cash calls required from Fresnillo and MAG.

  • In Q4 2021, MAG closed a bought deal share offering and issued 2,691,000 common shares, including 15,700 common shares issued to an officer and two directors of MAG and 351,000 common shares issued upon the full exercise of the over-allotment option, at $17.15 per share for gross proceeds of $46,151. The Company paid commission of $2,301 to the underwriters and legal and filing costs totaled an additional $608 resulting in net proceeds of $43,242.


  • COVID-19

  • Fresnillo, the Juanicipio operator implemented a range of safety measures and monitoring procedures, consistent with World Health Organization and Mexican Government COVID-19 directives.

  • COVID-19 had an impact on the Juanicipio plant commissioning timeline however during the course of the year:

  • In Q1 2021, Fresnillo, as operator, reported that commissioning was pushed out a few months to Q4 2021 as some infrastructure contracts were delayed related to COVID-19; and,

  • In Q4 2021, approval to complete the tie-in to the national power grid was extended as noted above related to knock-on effects of the pandemic.

  • CORPORATE

  • MAG continued to refresh its board during the year with three new appointments:

  • Ms. Susan Mathieu was appointed to the board on January 13, 2021 increasing the size of the board to eight members;

  • Mr. Tim Baker was appointed to the board on March 31, 2021 replacing Mr. Richard Clark who resigned from the board to focus on other professional responsibilities; and,

  • Mr. Dale Peniuk was appointed to the board on August 3, 2021 replacing Mr. Derek White who did not stand for re-election at the Company’s Annual General and Special Meeting on June 21, 2021.

  • On October 16, 2021 MAG announced that Mr. W.J. (Jim) Mallory joined the Company as its Chief Sustainability Officer (“CSO”) highlighting the Company’s commitment to environmental, social, governance (“ESG”) betterment.

  • On March 28, 2022, MAG announced the appointment of Fausto Di Trapani as Chief Financial Officer (“CFO”) effective May 20, 2022. Mr. Di Trapani is a finance executive with experience in the natural resources sector spanning two decades, most recently having served as the Chief Financial Officer at Galiano Gold Inc. Mr. Di Trapani replaces Mr. Larry Taddei, who, after 12 years of service with the Company, will step down from the CFO role to pursue other opportunities. Mr. Taddei will assist in the orderly transition of his duties following Mr. Di Trapani’s appointment.

  • JUANICIPIO PROJECT UPDATE

    Underground Mine Production

    As of August 2020, mineralized development material from the Juanicipio Project is being campaign processed, refined and sold on commercial terms at a targeted rate through Q3 2021 of 16,000 tonnes per month at the nearby Fresnillo plant 12 kilometres away. The processing rate increased to an average of 37,983 tonnes per month in Q4 2021 and subsequent to the year end to an average of 44,963 tonnes per month for the first two months of 2022. In December 2021, for the first time, 8,725 tonnes were processed at Fresnillo’s Saucito beneficiation plant (also 100% owned by Fresnillo). The Saucito plant flowsheet better resembles that of the Juanicipio plant and will provide further valuable metallurgical information as processing commences at Juanicipio. This preproduction toll processing of Juanicipio mineralized development material plus some initial stope production is expected to continue until the Juanicipio plant is commissioned

    In the three months and year ended December 31, 2021, 113,950 and 251,907 tonnes of mineralized development material respectively, were processed through the Fresnillo plants, realizing commercial and operational de-risking opportunities for the Juanicipio Project. The resulting payable metals sold and processing details on a 100% basis are summarized in Table 1 (three months ended December 31, 2021) and in Table 2 (year ended December 31, 2021) below.

    Table 1: Q4 2021 Development Material Processed at Fresnillo’s Processing Plants (100% basis)

    Three Months Ended December 31, 2021 (113,950 tonnes processed)


    Payable Metals

    Quantity

    Average Per Unit (1)

    $Amount

    Q4 2020
    $Amount


    Silver

    1,519,027 ounces

    $22.96 per oz

    $ 34,877

    $ 5,866

    Gold

    3,641 ounces

    $1,793.67 per oz

    6,531

    876

    Lead

    563 tonnes

    $1.05 per lb

    1,300

    80

    Zinc

    800 tonnes

    $1.55 per lb

    2,729

    220

    Treatment and refining charges (“TCRCs”) and other processing costs

    (6,069)

    (1,232)

    Net Sales

    39,368

    5,810

    Mining and transportation costs

    (7,593)

    (2,342)

    Gross Profit

    $ 31,775

    $ 3,468


    (1) Ounces (“oz”) for silver and gold and, pounds (“lb”) for lead and zinc.

    Table 2: Year 2021 Development Material Processed at Fresnillo’s Processing Plants (100% basis)

    Year Ended December 31, 2021 (251,907 tonnes processed)


    Payable Metals

    Quantity

    Average Per Unit (1)

    $Amount

    2020
    $Amount (2)


    Silver

    2,974,524 ounces

    $23.99 per oz

    $ 71,369

    $ 15,403

    Gold

    5,975 ounces

    $1,791.22 per oz

    10,702

    1,941

    Lead

    1,065 tonnes

    $1.02 per lb

    2,387

    301

    Zinc

    1,519 tonnes

    $1.45 per lb

    4,849

    575

    TCRCs and other processing costs

    (12,768)

    (2,885)

    Provisional sales adjustment related to 2020 sales (3)

    (1,146)

    -

    Net Sales

    75,393

    15,335

    Mining and transportation costs

    (15,329)

    (3,873)

    Gross Profit

    $ 60,064

    $ 11,462


    (1) Ounces (“oz”) for silver and gold and, pounds (“lb”) for lead and zinc.
    (2) Processing of Juanicipio mineralized development material at the Fresnillo plant commenced in August of 2020, with no prior processing.
    (3) Provisional sales for 2020 were finalized in Q1 2021 resulting in negative adjustment to net sales revenue of $1,146.

    The average silver head grade for the mineralized development material and initial stope material processed in the three months and year ended December 31, 2021 was 542 g/t and 470 g/t (three months and year ended December 31, 2020 was 300 g/t and 328 g/t) respectively. This increased grade in the last quarter of 2021 reflects less diluted development material and more stoped vein material being processed.

    Processing Plant Construction & Outlook

    The Juanicipio project team delivered the Juanicipio plant for commissioning in the fourth quarter of 2021. However, according to the operator Fresnillo, the state-owned electrical company (Comision Federal de Electricidad “CFE”), notified Fresnillo late in December 2021 that the regulatory approval to complete the tie-in to the national power grid could not yet be granted, and the projected commissioning timeline has therefore been extended by approximately six months, with commissioning of the Juanicipio processing plant now expected to commence in Q2-2022 with ramp up to 85 to 90% of the nameplate 4,000 tpd capacity by the end of 2022, according to Fresnillo.

    In order to minimize any potential adverse economic effect of the revised commissioning timeline, Fresnillo has indicated it will make available any unused plant capacity at its Minera Fresnillo and Minera Saucito operations to process mineralized material produced at Juanicipio during this period, and if possible match commissioning and ramp up tonnages that were previously expected. The effect on cashflow generation from Juanicipio therefore will also be mitigated while power connection approvals are pending.

    With the plant ready to commence commissioning once connected to the power grid, final construction costs are expected to wind down until final commissioning and testing commence. Meanwhile, as noted above, the amount of mineralized development material being processed at the two Fresnillo plats since Q4 2021 has been significantly higher than the original targeted rate of 16,000 tonnes per month. The cash flow from this processing, along with the cash held by Minera Juanicipio at December 31, 2021 of $18,972 and the expected cash flows from continued processing until the Juanicipio plant is commissioned are projected to substantially fund the remaining capital expenditures in the $440,000 initial project capital (a cash call has not been needed since mid-December 2021 which was $21,000 on a 100% basis).

    With the current ramp up of underground mine production and given hiring restrictions on contractors arising from new 2021 labour reform legislation, the timing of various sustaining capital expenditures has been brought forward. Labour reform on subcontracting and outsourcing in Mexico was published on April 23, 2021 and came into effect on September 1, 2021. With various restrictions on hiring contractors, Fresnillo, as operator, has indicated a need to internalize a significant portion of its contractor workforce and perform much of the development work directly rather than outsourcing it to contractors. This requires investment in equipment to be utilized in underground operations, either not previously in the project scope or not envisaged to be required until later in the mine life. As well, certain underground development expenditures related to processing development material and some small items brought forward from project investments planned in the future are considered sustaining capital by Fresnillo. The costs incurred are expected to reduce future sustaining capital costs and totaled approximately $41,388 on a 100% basis in the second half of 2021 in preparation for the legislation to come into effect. These costs are included in the current Juanicipio development costs but are not considered by the operator as part of the $440,000 initial project capital. Should there be additional funding requirements in excess of the cashflow generated related to further commissioning delays or to additional sustaining capital that is being brought forward, there may still be further cash calls required from Fresnillo and MAG.

    Juanicipio Exploration Update

    The planned expenditures for the 2022 Exploration Program total $7,000 with the programs designed to expand and convert the Inferred Mineral Resources included in the Deep Zone into Indicated Mineral Resources, and to explore other parts of the Juanicipio concession. All aspects of the exploration work continue to be done under strict COVID-19 protocols. Subsequent to the year-end in mid-January, 2022, drilling began on the first hole on the “Cesantoni Kaolinite Pits”(Cesantoni) target (assay pending). Cesantoni lies in the northwestern corner of the Juanicipio concession, roughly 6 km west of the Valdecañas Vein and related underground and surface infrastructure.

    The 2021 Juanicipio exploration program was completed in late 2021, with an actual spend of $6,296 on a 100% basis and was focused on continued step-out and infill drilling of the Valdecañas Vein System (including independent targeting of the Venadas Vein family and the Anticipada Vein). In total, 23 targets (holes) were successfully tested with 21 being deep infill holes and two exploration holes on other parts of the Juanicipio concession, resulting in 29,421 metres drilled. The program results will be released in Q2 2022 pending receipt of all assays.

    Assays for the Juanicipio 2020 drill program were released in the Q3 2021 (see Press Release dated August 5, 2021). The 2020 drill program successfully:

  • Confirmed, and allowed modeling with greater detail and confidence of the high-grade silver resource within the upper parts of the Valdecañas Bonanza Zone where the first several years of mining will occur;

  • Confirmed, expanded, and allowed improved modeling of the continuous wide mineralization of the Valdecañas Deep Zone; and,

  • Confirmed, expanded, and allowed improved modeling of the ever-growing Anticipada Vein.

  • DEER TRAIL PROJECT UPDATE

    Phase I drilling commenced in November 2020 and was completed in Q2 2021 with assays and interpretations released in the third quarter of 2021 (see Press Release September 7, 2021). Phase I saw the completion of three holes and 3,927 metres drilled from surface and successfully fulfilled all three of its planned objectives by:

  • Confirming the presence of a thick section of more favorable carbonate host rocks (the predicted “Redwall Limestone” or “Redwall”) below the Deer Trail mine;

  • Confirming and projecting two suspected mineralization feeder structures to depth; and

  • Intercepting high-grade mineralization related to those structures in host rocks below what was historically known.

  • Phase II drilling commenced at the Deer Trail Project on August 20, 2021 and is in process, planned for 5,000 metres of drilling over 5 holes. Deviation/directional drilling is being used in Phase II to make the drilling more efficient and accurate. In part to facilitate the directional drilling, drilling contractors were changed in Q1 2022, with the new contractor on site and preparing to resume drilling.

    GATLING ACQUISITION

    Subsequent to the year end, the Company entered into a Definitive Arrangement Agreement with Gatling pursuant to which the Company will acquire all of the issued and outstanding common shares of Gatling in an all-share transaction. The Company and Gatling have also entered into a loan agreement pursuant to which the Company has agreed to provide Gatling with a C$3 million secured convertible bridge loan to finance Gatling’s accounts payable and operating expenses.

    Gatling is a Canadian gold exploration company focused on advancing the Larder Gold Project, located in the prolific Abitibi greenstone belt in Northern Ontario, Canada. The 3,370 ha Larder Project hosts three high-grade gold deposits along the Cadillac-Larder Lake Break, 35 km east of Kirkland Lake and 7 kilometers west of the Kerr Addison Mine. The project is 100% owned by Gatling and is comprised of patented and unpatented claims, leases and mining licenses of occupation within the McVittie and McGarry Townships. All parts of the Larder property are readily accessible and MAG expects to engage the existing exploration team going forward.

    Qualified Person: Dr. Peter Megaw, Ph.D., C.P.G., has acted as the Qualified Person as defined in National Instrument 43-101 for this disclosure and supervised the preparation of the technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 40 years of relevant experience focused on ore deposit exploration worldwide. He is a Certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona Registered Geologist (ARG 21613). Dr. Megaw is not independent as he is Chief Exploration Officer and a Shareholder of MAG.

    FINANCIAL RESULTS – YEAR ENDED DECEMBER 31, 2021

    As at December 31, 2021, the Company had working capital of $57,761 (December 31, 2020: $94,513) including cash of $56,748 (December 31, 2020: $94,008) and no long-term debt. As at December 31, 2021, Minera Juanicipio had cash of $18,972 (MAG’s attributable 44% share $8,348). The Company makes cash advances to Minera Juanicipio as ‘cash called’ by the operator Fresnillo, based on approved joint venture budgets. In the year ended December 31, 2021, the Company funded advances to Minera Juanicipio, which combined with MAG’s Juanicipio expenditures on its own account, totaled $74,136 (December 31, 2020: $64,270).

    The Company’s net income for year the ended December 31, 2021 amounted to $6,025 (December 31, 2020: $7,097 net loss) or $0.06/share (December 31, 2020: loss of $(0.08)/share). MAG recorded its 44% income from its equity accounted Investment in Juanicipio of $15,686 (December 31, 2020: $2,214) which included MAG’s 44% share of net income from the sale of pre-production development material (see Table 3 below). Share based payment expense, a non-cash item, recorded in the year ended December 31, 2021 amounted to $4,256 (December 31, 2020: $3,122), and is determined based on the fair value of equity incentives granted and vesting in the year.

    Table 3: MAG’s income from its equity accounted Investment in Juanicipio


    December 31,
    2021


    December 31,
    2020


    Gross Profit from processing development material (see Table 2 above)

    $ 60,064

    $ 11,462

    Administrative expenses

    (1,929)

    (239)

    Extraordinary mining duty

    (337)

    (76)

    Foreign exchange and other

    (1,363)

    (623)

    Net Income before tax

    56,435

    10,524

    Income tax expense (including deferred income tax)

    (20,784)

    (5,492)

    Net Income for the year (100% basis)

    $ 35,651

    $ 5,032

    MAG’s 44% share of income from equity accounted Investment in Juanicipio

    $ 15,686

    $ 2,214


    Shareholders may receive, upon request and free of charge, a hard copy of the Company’s Audited Financial Statements. The Company’s 40-F has also been filed with the United States Securities and Exchange Commission.

    About MAG Silver Corp. ( www.magsilver.com )

    MAG Silver Corp. is a Canadian development and exploration company focused on becoming a top-tier primary silver mining company by exploring and advancing high-grade, district scale, silver-dominant projects in the Americas. Its principal focus and asset is the Juanicipio Project (44%), being developed with Fresnillo Plc (56%), the operator. The Project is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where the operator is currently developing an underground mine and constructing a 4,000 tonnes per day processing plant. Underground mine production of mineralized development material commenced in Q3 2020, and an expanded exploration program is in place targeting multiple highly prospective targets at Juanicipio. MAG is also executing a multi-phase exploration program at the Deer Trail 100% earn-in project in Utah.

    This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address our expectations with respect to the timing and success of plant pre-commissioning and commissioning activities, processing rates of development materials, future mineral production, and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG 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. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, impacts (both direct and indirect) of COVID-19, timing of receipt of required permits, changes in applicable laws, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the MAG Silver’s filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward-looking statement will come to pass, and investors should not place undue reliance upon forward-looking statements.Neither the Toronto Stock Exchange nor the NYSE American has reviewed or accepted responsibility for the accuracy or adequacy of this press release, which has been prepared by management.

    Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov
    LEI: 254900LGL904N7F3EL14

    CONTACT: For further information on behalf of MAG Silver Corp. Contact 
    Michael J. Curlook, VP Investor Relations and Communications
    Phone: (604) 630-1399 Toll Free:(866) 630-1399 Email: info@magsilver.com
    Website: www.magsilver.com



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    To: LoneClone who wrote (164636)4/4/2022 1:45:03 PM
    From: LoneClone
       of 167649
     
    Ascot Provides Update on Premier Gold Project Financing and Development Plans

    ca.finance.yahoo.com

    Ascot Resources Ltd.
    Mon, April 4, 2022, 4:00 a.m.·7 min read

    VANCOUVER, British Columbia, April 04, 2022 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) today provides an update on construction financing and development plans for its Premier Gold Project (“PGP” or the “project”, located on Nisga’a Nation Treaty Lands in the prolific Golden Triangle of northwestern British Columbia. In December 2020, as part of a total construction finance package of US$105M (see News Release dated December 10, 2020), the Company secured a US$80M senior credit facility (the “Senior Facility”) with Sprott Private Resource Lending II (Collector), LP (“Sprott”). After drawing down the initial US$20M tranche under the Senior Facility, Ascot was required to satisfy various conditions before drawing down the remaining US$60M. However, the Company has been unable to reach an agreement with Sprott on the satisfaction of the drawdown conditions for the remaining US$60M of the Senior Facility. Therefore, the initial US$20M drawdown will remain outstanding and Ascot will pursue alternative financing options to replace the remainder of the Senior Facility.

    Until alternative financing can be secured Ascot will continue advancing the project with available liquidity. The Company anticipates that commencement of underground development and advancement of other key construction areas will continue as previously planned. However, certain work packages may be placed on hold until the Company is able to secure alternative funding. While the resulting implications to the project are uncertain at this time, it is possible that there will be a delay to the initial production target of Q1 2023.

    Derek White, President and CEO, commented, "Since the original Senior Facility agreement was signed in December 2020, we at Ascot have worked tirelessly to continue de-risking and advancing PGP. We made significant progress on the Early Works program last year. We obtained the Mines Act Permit and the Environmental Management Act Permit Amendments in December 2021 and January 2022, respectively, and successfully completed C$145M in equity financing. However, we have not been able to come to an agreement with Sprott on the satisfaction of the drawdown conditions for the remaining tranches of the Senior Facility, and therefore have prudently begun pursuing alternative financing options.

    The Premier Gold Project remains one of the most advanced gold development projects in Canada. Given the significant de-risking that has been achieved so far, we believe the project presents an attractive financing opportunity for alternative funding. In the meantime, we will use our current cash balance of approximately C$90M to continue advancing PGP including the commencement of underground development and other critical construction areas. As we pursue alternative funding options and progress construction concurrently, we will update the market in due course with respect to any impacts to project schedule and cost if applicable.

    BACKGROUND ON THE SENIOR FACILITY

    Upon closing of the Senior Facility agreement in December 2020, Ascot drew an initial tranche of US$20M. The remaining US$60M was to be drawn upon meeting various conditions including receipt of the Mines Act Permit and the Environmental Management Act Permit Amendments, obtaining additional funding necessary to reach project completion, and Sprott’s approval of the detailed mine plan.

    In a recent review of the detailed mine plan, Sprott proposed certain technical conditions to be achieved. In particular, one condition requires Ascot to have a significant portion of its 12-month ore inventory classified in the Proven Reserve category. Currently, all Reserves at PGP are classified as Probable. The Company cannot guarantee the reclassification of Reserves can be achieved in the required timeframe. Therefore, the Company considers it prudent to seek alternative financing options.

    CURRENT FINANCIAL POSITION AND NEXT STEPS FORWARD

    The Company currently has an unaudited cash balance of approximately C$90M which will enable the progression of certain critical areas of project construction in 2022. In order to commit to the entire outstanding project scope, Ascot will pursue alternative financing options to make up for the unfunded balance. The Company will also be exploring various royalty and/or stream options at PGP as an additional source of funding.

    The commencement of underground development into the Big Missouri deposit starting at the S1 portal remains on track for late April 2022 and will continue unabated for the time being. The progression of other key construction areas will also continue this year. Certain work packages may be put on hold until the Company is able to secure an alternative finance package.

    The delay of any work packages may result in delays to the overall project and the start up of production beyond the previous target of Q1 2023. The impact of delays, however, could potentially be partially offset by the ramp up from initial production to commercial and full-scale production, which the Company anticipates will be accelerated as underground development continues on schedule.

    Qualified Person

    John Kiernan, P.Eng., Chief Operating Officer of the Company is the Company’s Qualified Person (QP) as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this news release.

    On behalf of the Board of Directors of Ascot Resources Ltd.
    “Derek C. White”
    President & CEO

    For further information contact:

    David Stewart, P.Eng.
    VP, Corporate Development & Shareholder Communications
    dstewart@ascotgold.com
    778-725-1060 ext. 1024

    About Ascot Resources Ltd.

    Ascot is a Canadian junior exploration and development company focused on re-starting the past producing Premier gold mine, located on Nisga’a Nation Treaty Lands, in British Columbia’s prolific Golden Triangle. Ascot shares trade on the TSX under the ticker AOT. Concurrent with progressing the development of Premier, the Company continues to successfully explore its properties for additional high-grade underground resources. Ascot is committed to the safe and responsible development of Premier in collaboration with Nisga’a Nation as outlined in the Benefits Agreement.

    For more information about the Company, please refer to the Company’s profile on SEDAR at www.sedar.com or visit the Company’s web site at www.ascotgold.com, or for a virtual tour visit www.vrify.com under Ascot Resources.

    The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

    Cautionary Statement Regarding Forward-Looking Information

    All statements and other information contained in this press release about anticipated future events may constitute forward-looking information under Canadian securities laws ("forward-looking statements"). Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeted", "outlook", "on track" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. All statements other than statements of historical fact included herein are forward-looking statements, including statements in respect of securing alternative financing options, the re-classification of categories of Resources and Reserves, drill results, the advancement and development of the PGP and the timing related thereto (including timeline for production), the exploration of the Company’s properties and management’s outlook for the remainder of 2022. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including risks associated with the business of Ascot; risks related to exploration and potential development of Ascot's projects; business and economic conditions in the mining industry generally; fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and indigenous groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; risks associated with COVID-19 including adverse impacts on the world economy, construction timing and the availability of personnel; and other risk factors as detailed from time to time in Ascot's filings with Canadian securities regulators, available on Ascot's profile on SEDAR at www.sedar.com including the Annual Information Form of the Company dated March 21, 2022 in the section entitled "Risk Factors". Forward-looking statements are based on assumptions made with regard to: the estimated costs associated with construction of the project; the timing of the anticipated start of production at the project; the ability to maintain throughput and production levels at the Premier Mill; the tax rate applicable to the Company; future commodity prices; the grade of Resources and Reserves; the ability of the Company to convert inferred resources to other categories; the ability of the Company to reduce mining dilution; the ability to reduce capital costs; and exploration plans. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Although Ascot believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Ascot can give no assurance that such expectations will prove to be correct. Ascot does not undertake any obligation to update forward-looking statements. The forward-looking statements contained in this news release is expressly qualified by this cautionary statement.


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    To: LoneClone who wrote (164637)4/4/2022 1:47:03 PM
    From: LoneClone
       of 167649
     
    Silver Elephant’s El Triunfo Gold Project Drills 14 meters of 2.5g/t AuEq in Bolivia within 247 meters of 0.4 g/t AuEq, Assays Pending from Triunfo East Discovery

    accesswire.com

    Monday, April 4, 2022 8:45 AM

    VANCOUVER, BC / ACCESSWIRE / April 4, 2022 / Silver Elephant Mining Corp. ("Silver Elephant" or the "Company") (TSX:ELEF)(OTCQX:SILEF)(Frankfurt:1P2N) announces initial diamond drill results from the Company's 100%-controlled El Triunfo gold-silver project located 75 km east of La Paz city, Bolivia. Five holes totaling 1,500 meters are underway to test induced polarization ("IP") geophysical anomalies discovered in 2021.

    TR009 encountered separate intersections of 14 meters of 2.5 g/t AuEq (0.8 g/t Au, 65 g/t Ag, 1.74% Pb, 1.44% Zn), 2 meters of 2.7 AuEq (0.2 g/t Au, 211 g/t Ag, 0.84% Pb, 0.24% Zn), and 4 meters of 2.6 g/t AuEq (2.4 g/t Au, 12.9 g/t Ag, 0.19% Pb, and 0.04% Zn) within 247 meters grading 0.4 AuEq, starting from 3 meters downhole.

    TR010 encountered 1.2 meters of 7.7 g/t AuEq (2.4 g/t Au, 61 g/t Ag, 10.80% Pb, 2.98% Zn), 1 meter of 2.7 g/t AuEq (1.8 g/t Au, 27 g/t Ag, 0.81% Pb, and 1.25% Zn) within 45 meters grading 0.7 AuEq, starting from 7 meters downhole.

    TR009 and TR010 were drilled at eastern and western edges of the Triunfo West block ("TWB") and successfully expanded the mineralized width and open up the exploration prospects immediately west of the TWB. The TWB (featuring a strike length of 750 meters) is where Company's maiden drill program in 2020 and artisanal mining took place. The maiden program included hole TR007 with 98.9 meters of 1 g/t AuEq (0.4g/t Au, 23 g/t Ag, 0.74% Zn, 0.58% Pb (see Company's press release dated November 25, 2020)).

    TR011, -012, -013 are drilled at wide spacing at the Triunfo East block ("TEB"), a 1.5 kilometer extension to the TWB that is separated by a fault that resulted in this area being previously unexplored until recently. The Company is currently drilling the final hole, TR013, of this program, and waiting for assay results for TR011 and TR012 expected in April.

    If the TEB drilling discovers mineralization, when combined with TWB, the total Triunfo project mineralized strike length will triple to 2.3-kilometers, greatly enhancing the project's potential.

    Reported results are tabulated below:

    Hole ID

    From

    To

    Width (m)

    Au (g/t)

    Ag (g/t)

    Pb %

    Zn %

    AuEq (g/t)

    TR009

    3.0

    250.0

    247.0

    0.2

    8.1

    0.17

    0.14

    0.4

    incl…

    46.0

    47.0

    1.0

    0.4

    1.7

    0.01

    0.00

    0.4

    …and

    109.0

    115.0

    6.0

    0.5

    1.9

    0.02

    0.00

    0.5

    …and

    137.0

    138.0

    1.0

    0.4

    18.3

    0.70

    0.14

    0.9

    …and

    154.0

    156.0

    2.0

    0.2

    211.0

    0.84

    0.24

    2.7

    …and

    164.0

    178.0

    14.0

    0.8

    65.0

    1.74

    1.44

    2.5

    …and

    193.0

    197.0

    4.0

    1.2

    2.1

    0.04

    0.01

    1.2

    …and

    232.0

    236.0

    4.0

    2.4

    12.9

    0.19

    0.04

    2.6

    TR-010

    7.0

    52.0

    45.0

    0.3

    8.7

    0.58

    0.40

    0.7

    incl…

    24.0

    25.0

    1.0

    1.8

    27.0

    0.81

    1.25

    2.7

    …and

    39.6

    40.8

    1.2

    2.4

    61.4

    10.80

    2.98

    7.7

    TR-010

    144.0

    151.0

    7.0

    0.4

    2.4

    0.00

    0.00

    0.5

    TR-010

    190.0

    192.0

    2.0

    0.9

    4.6

    0.05

    0.03

    0.9

    TR-010

    219.0

    221.0

    2.0

    0.6

    5.3

    0.01

    0.04

    0.6

    TR-010

    237.0

    245.0

    8.0

    0.4

    4.5

    0.04

    0.04

    0.4

    incl…

    241.0

    243.0

    2.0

    1.1

    5.0

    0.01

    0.01

    1.2

    TR-010

    290.0

    291.0

    1.0

    0.3

    95.3

    1.96

    0.20

    2.0

    *AuEq: Gold equivalent calculation uses a gold price of $1,795, a zinc price of $0.93, a lead price of $0.80, and a silver price of $18.30 (all USD) and assumes a 100% metallurgical recovery. Gold equivalent values can be calculated using the following formula: AuEq = Au g/t + (Ag g/t x 0.0102) + (Zn % x 0.3551) + (Pb % x 0.3055). Core widths are not true widths. True widths are estimated to range between 45-78% of true widths based on core angle measurements.

    Summaries of each hole and their target rationale are provided in the discussion below.

    TR009 was collared 55 meters north of TR006 (36 meters 0.97 g/t AuEq) from Company's maiden drilling program in 2020. TR009 was drilled southward into the eastern edge of the TWB and increased the width of known mineralization.

    The 55-meter step-back was rationalized based on geological mapping that was completed in 2021 that identified wider zonation of host-rocks for the project's mineralization, and also delineated the bounding structures to the main hanging wall and footwall bedrock. The hole tested drilling from the bounding structure into the host-rock and encountered near-surface continuous mineralization, as well as numerous high-grade gold-bearing zones across these host-rocks.

    TR010 was based on a concept similar to TR009 (i.e. proposed drilling based on geological mapping to determine bounding structures), collaring 160m north-northeast of the previously drilled TR004 (3 meters of 1.16 g/t Au) and drilled from the northside hanging wall contact to the south, located at the western edge of the TWB. TR010 confirms that mineralization does extend westward. Prior drilling in this area was from the south to the north (TR004) which did not encounter mineralization. Geological mapping suggests that TR004 was drilled subparallel to the main structure and therefore did not properly intercept the main host-rocks. The results of TR010 show that this zone does continue to the west, leaving the TWB open in this direction.

    Visit www.silverelef.com for El Triunfo maps.

    Quality Assurance and Quality Control

    Silver Elephant adopts industry-recognized best practices in its implementation of QA/QC methods. Rock chip samples average between 5-7 kilograms. Samples are shipped to ALS Global Laboratories in Ururo, Bolivia for preparation and then shipped to ALS Global laboratories in Lima, Peru for analysis. Samples are analyzed using Intermediate Level Four Acid Digestion. Silver overlimits ("ore grade") are analyzed using fire assay with a gravimetric finish. The ALS Laboratories sample management system meets all the requirements of International Standards ISO/IEC 17025:2017 and ISO 9001:2015. All ALS geochemical hub laboratories are accredited to ISO/IEC 17025:2017 for specific analytical procedures. A geochemical standard control samples are inserted into the sample stream. The laboratory also includes duplicates of samples, standards and blanks for additional QA/QC. Check assays are reviewed prior to the release of data. Assays are also reviewed for their geological context and checked against field descriptions.

    Qualified Person

    The technical contents of this news release have been prepared under the supervision of Danniel Oosterman, VP Exploration. Mr. Oosterman is not independent of the Company in that he is employed by it. Mr. Oosterman is a qualified person as defined by the guidelines in NI 43-101.

    About Silver Elephant

    Silver Elephant Mining Corp. is a premier silver mining and exploration, and owns 39% of Battery Metals Royalties Corp.

    Further information on Silver Elephant and Battery Metals Royalties can be found at www.silverelef.com and www.royalbatt.com

    SILVER ELEPHANT MINING CORP.
    ON BEHALF OF THE BOARD

    "John Lee"
    Executive Chairman

    For more information about Silver Elephant, please contact Investor Relations:
    +1.604.569.3661 ext. 101
    info@silverelef.com www.silverelef.com

    Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

    Cautionary Note Regarding Forward-Looking Statements

    Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding Silver Elephant's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.

    These factors should be considered carefully, and readers should not place undue reliance on the Silver Elephant's forward-looking statements. Silver Elephant believes that the expectations reflected in the forward-looking statements contained in this news release and the documents incorporated by reference herein are reasonable, but no assurance can be given that these expectations will prove to be correct. In addition, although Silver Elephant has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Silver Elephant undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.

    SOURCE: Silver Elephant Mining Corp.

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    To: LoneClone who wrote (164638)4/4/2022 1:56:48 PM
    From: LoneClone
       of 167649
     
    Endeavour Mining to Launch Expansion of Sabodala-Massawa; DFS Confirms Its Potential to Become Top Tier Gold Mine

    ca.finance.yahoo.com

    Endeavour Mining PLC
    Sun, April 3, 2022, 11:00 p.m.·28 min read

    HIGHLIGHTS:

  • Robust DFS economics support the expansion of Sabodala-Massawa by supplementing the current 4.2Mtpa CIL plant with a 1.2Mtpa BIOX® plant to process the high-grade refractory ore from the Massawa deposits

  • Expansion is expected to yield incremental production of 1.35Moz at a low AISC of $576/oz over the life of the BIOX® Expansion Project

  • Lifts Sabodala-Massawa to top tier status with an expected average annual production of 373koz per year over the next 5 years at an average AISC of $745/oz

  • Low-capex intensive brownfield expansion given upfront capital requirement of $290m, expected to be self funded by the existing Sabodala-Massawa operation

  • Robust after-tax IRR of 72% and NPV5% of $861m with a quick 1.4-year payback period, as the expansion generates $200m of incremental annual free cash flow during its first 5 years, at $1,700/oz gold

  • Construction will commence in Q2-2022 with first gold pour from the BIOX® plant expected in early 2024

  • Significant upside potential as the DFS does not include the conversion of the previously announced discovery of 709koz of M&I resources

  • Endeavour remains on track to discover its target of 2.3Moz to 2.7Moz of Indicated resources at Sabodala-Massawa over the 2021-2025 period

  • London, 4 April, 2022 Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) ("Endeavour" or the "Group" or the "Company") is pleased to announce that it will soon launch the construction of its Sabodala-Massawa expansion in Senegal, supported by the recently completed Definitive-Feasibility Study (“DFS”).

    The DFS recommends the expansion of the Sabodala-Massawa complex by supplementing the current 4.2Mtpa Carbon-in-leach (“CIL”) plant with a 1.2Mtpa BIOX® plant to process the high-grade refractory ores from the Massawa Central Zone and Massawa North Zone deposits (“Expansion Project”), with first gold production expected in early 2024.

    Sébastien de Montessus, President and CEO of Endeavour Mining, said: “We are extremely pleased with both the current performance of Sabodala-Massawa and the Definitive Feasibility Study results announced today, as they demonstrate the asset’s potential to be a top tier mine capable of producing in excess of 400,000 ounces per year at an industry-leading AISC.

    Given the robust project economics, which significantly exceed our investment criteria, and the strong exploration upside potential, we are excited to launch this low-capex intensive brownfield expansion project as it will continue to improve the quality of our operating portfolio and contribute to driving the Group’s return on capital employed above our 20% target. In line with our capital allocation framework, we are very pleased to be able to pursue this organic growth opportunity while maintaining a healthy balance sheet and the financial flexibility to continue to deliver strong capital returns to shareholders.

    We believe we are well positioned to unlock the full value of the Sabodala-Massawa complex as we have significantly de-risked the project by integrating key changes into the DFS, based on experience gained from operating the asset and the results of further technical analysis, and we have highly experienced operating and construction teams already in place.”

    As shown in Tables 1 and 2 below, the Expansion Project is expected to yield an incremental production of 1.35Moz of gold at a low AISC of $576/oz over the life of mine and boasts robust economics with an after-tax IRR of 72%, NPV5% of $861 million and a quick 1.4-year payback period at a gold price of $1,700/oz.

    Table 1: Sabodala-Massawa Expansion Project Highlights (excludes current CIL operation)


    FIRST FIVE YEARS
    (2024-2028)


    LIFE OF MINE
    (2024-2033)


    OPERATING SUMMARY



    Tonnes processed, Mt

    5.7

    10.8

    Strip ratio, W:O

    7.7

    8.5

    Grade processed, Au g/t

    6.07

    4.43

    Gold contained processed, koz

    1,110

    1,538

    Average recovery rate, %

    86

    88

    Gold production, koz

    971

    1,350




    ANNUAL OPERATING METRICS



    Average annual production, koz/a

    194

    135

    Average Total Cash Costs, $/oz

    504

    553

    Average AISC, $/oz

    531

    576




    MINE FREE CASH FLOW



    Based on $1,500/oz gold price



    Total mine free cash flow, $m

    743

    1,018

    Annual mine free cash flow, $m

    149

    102

    Based on $1,700/oz gold price



    Total mine free cash flow, $m

    999

    1,439

    Annual mine free cash flow, $m

    200

    144


    Table 2: Sabodala-Massawa Expansion Project Economics (excludes current CIL operation)

    GOLD PRICE

    $1,300/oz

    $1,500/oz

    $1,700/oz

    $1,900/oz

    PRE-TAX ECONOMICS





    NPV0%, $m

    385

    957

    1,530

    2,102

    NPV5%, $m

    260

    696

    1,132

    1,568

    IRR, %

    28

    57

    83

    108

    Payback years1

    2.6

    1.7

    1.3

    1.1

    AFTER-TAX ECONOMICS





    NPV0%, $m

    316

    742

    1,164

    1,585

    NPV5%, $m

    211

    538

    861

    1,184

    IRR, %

    26

    51

    72

    94

    Payback years1

    2.6

    1.7

    1.4

    1.1

    1Payback period calculated starting from start of commercial production


    As shown in Figure 1 (in the attached document), the Expansion Project is expected to add an incremental average production of 194koz per year, over its first five years of operations (2024 – 2028) at an average AISC of $531/oz. As such, the Expansion Project is expected to lift the Sabodala-Massawa complex to top tier status with an expected average annual production of 373koz per year over the next 5 years at an average AISC of $745/oz for the combined CIL and BIOX® operation, as shown in Table 3 below.

    Strong upside potential exists as the DFS does not include the conversion of the previously announced discovery of 709koz of M&I resources, which is expected to notably boost 2023 production.

    Table 3: Sabodala-Massawa Combined CIL and BIOX® Operation Summary


    NEXT 5 YEARS
    (2022-2026)

    NEXT 10 YEARS
    (2022-2031)

    LIFE OF MINE
    (2022-2036)

    PRODUCTION SUMMARY




    Tonnes processed, Mt

    24.3

    51.0

    66.4

    Strip ratio, W:O

    7.5

    7.4

    6.7

    Grade processed, Au g/t

    2.71

    2.39

    2.08

    Gold contained processed, koz

    2,117

    3,913

    4,440

    Average recovery rate, %

    88

    89

    89

    Total gold production, koz

    1,865

    3,475

    3,945

    Average annual production, koz/a

    373

    347

    282





    COST SUMMARY




    Average Total Cash Costs, $/oz

    630

    693

    747

    Average All-In-Sustaining Costs, $/oz

    745

    775

    825





    FINANCIAL SUMMARY




    Mine free cash flow at $1,500/oz, $m

    698

    1,473

    1,489

    Mine free cash flow at $1,700/oz, $m

    966

    1,956

    2,029


    As shown in Table 4 below, the mine is capable of self-funding the Expansion Project given the robust cumulative cash flow expected to be generated from the existing CIL operation in 2022 and 2023.

    Table 4: Sabodala-Massawa Combined CIL and BIOX® Operation – Next 5 years profile


    2022

    2023

    2024

    2025

    2026

    TOTAL
    (2022-2026)

    AVERAGE
    (2022-2026)

    OPERATING SUMMARY








    Tonnes processed, Mt

    4.2

    4.5

    5.0

    5.3

    5.3

    24.3

    4.9

    Strip ratio, W:O

    8.2

    9.5

    4.9

    9.3

    4.9

    7.5

    7.5

    Grade processed, Au g/t

    3.00

    2.37

    2.90

    2.69

    2.61

    2.71

    2.71

    Gold contained processed, koz

    409

    343

    463

    454

    448

    2,117

    423

    Average recovery rate, %

    88

    87

    87

    89

    89

    88

    88

    Gold production, koz

    360

    299

    403

    402

    401

    1,865

    373

    Total Cash Costs, $/oz

    605

    651

    601

    618

    680

    630

    630

    AISC, $/oz

    725

    777

    776

    690

    766

    745

    745









    FREE CASH FLOW
    (including expansion capex)








    Based on $1,500/oz gold price

    30

    (42)

    221

    238

    251

    698

    140

    Based on $1,700/oz gold price

    89

    (4)

    281

    294

    306

    966

    193


    Leveraging Endeavour’s construction and operating experience, several key changes have been incorporated in the DFS, compared to Teranga’s 2020 PFS, to significantly de-risk the project, as summarized in Table 5 below.

    Table 5: Key Changes in DFS vs. PFS

    AREA

    DESCRIPTION OF CHANGE

    EXPECTED RESULT

    Geometallurgical

    Additional geometallurgical work has reclassified fresh and transitional ore from the Massawa Central Zone and Massawa North Zone as more amenable to processing through the refractory plant adding an additional 3.8Mt at 2.02g/t gold for 248koz into the refractory ore reserves

    Removes risk associated with blending transitional and fresh ore with oxide ore into the CIL circuit.
    Improves mining efficiency due to lower need for selective mining.
    Improves overall recoveries and provides supplemental ore feed into the BIOX® plant.

    Processing

    Addition of a standalone ROM pad and crusher

    Reduces the risk of cross-contamination and improves blending optionality

    Addition of a surge bin

    Improves capacity when processing softer ore and provides a supplemental feed to cover crusher outages

    Addition of a gravity circuit within the milling circuit

    Improves recoveries from the high-grade ores containing free-milling gold

    Addition of a flotation cleaner circuit

    Controls the sulphur and carbonate grades in the concentrate and manages acid consumption in the BIOX® circuit

    Reduced the number of BIOX® reactors from nine to seven following further metallurgical tests which showed lower sulphur content for the Massawa Central Zone and North Zone deposits

    Reduced BIOX® reactors and reduced associated blower air and cooling requirements reduced the upfront cost of the BIOX® circuit component

    Tailings

    Addition of a separate high-density polyethylene (“HDPE”) fully lined tailings storage facility (“TSF 1B”) into the initial scope which will host the neutralised product and the BIOX® CIL tailings while the existing tailings storage facility (“TSF 1”) will host the flotation tailings

    Allows the clean supernatant water from TSF 1 to be recirculated into either processing plant without treatment

    Infrastructure

    18MW expansion of the existing HFO power plant, adding three 6MW HFO generators and two back up diesel generators, with the option to add-in solar to the infrastructure in the future

    De-risks power supply by increasing the capacity of the existing power plant by 50% to ensure sufficient power supply and back-up supply to maintain stable conditions for the BIOX® reactors

    Additional infrastructure including roads, water and administrative buildings

    Improves access and infrastructure at the Massawa Central Zone and Massawa North Zone pits

    Construction management

    Endeavour managed EPCM compared to contracted 3rd-party

    Allows for flexibility in defining scope, contractor selection and procurement ensuring that the projects’ team leverages off the existing operation


    DEFINITIVE-FEASIBILITY STUDY DETAILS

    Background
    Endeavour acquired the Sabodala-Massawa mine from Teranga Gold on 10 February 2021, prior to which Teranga Gold acquired the Massawa project from Barrick Gold on 4 March 2020, combining the Sabodala mill and deposits with the nearby Massawa deposits. As such, the Sabodala-Massawa mine consists of two mining licenses, the Sabodala exploitation permit (“Sabodala licence”) and the Massawa exploitation permit (“Massawa licence”) and two further exploration permits. The Sabodala licence is held by Sabodala Gold Operations SA (“SGO”) while the Massawa license is held by Massawa SA (“Massawa”). Endeavour holds indirectly through its subsidiaries a 90 percent stake in each of SGO and Massawa with the Government of Senegal holding the remaining interest.

    In August 2020, Teranga Gold filed a Preliminary Feasibility Study (“PFS”) for the phased expansion of Sabodala-Massawa. In 2021, Endeavour expedited the completion of the initial upgrades at the existing Sabodala-Massawa CIL plant and simultaneously advanced the DFS for the addition of a refractory ore processing plant to confirm the economic viability of processing the high-grade refractory ores from the Massawa Central Zone and Massawa North Zone deposits.

    Lycopodium Minerals Pty Ltd (“Lycopodium”) was responsible for the compilation of the report and delivery of the DFS to Endeavour. Orelogy completed the mine design for the DFS. Minescope Services are consulting on the Process Plant, while Metso-Outotec, who own the BIOX® technology, are providing the BIOX® and milling technology. Land and Marine Geological Services Pty Ltd (“L&MGSPL”) will be designing and executing the Tailings Storage Facility (“TSF”) design. QGE Pty Ltd (“QGE”) will be providing the power station expansion engineering services and managing the delivery of the power station expansion by an Original Equipment Manufacturer on a lump sum turn key basis.

    Endeavour expects to file a Technical Report pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects in respect of the Sabodala-Massawa DFS within the following 45-day period.

    Geology
    At the Sabodala-Massawa Complex, all of the defined mineral resources are within the Sabodala and Massawa exploitation permit areas. The permit areas are transected by two prominent, first order shear zones, the Main Transcurrent Shear Zone (“MTZ”) and the Sabodala-Sofia Zone (“SSZ”) both trending north-northeast. Existing deposits and exploration targets are closely associated with these first order structures.

    Within the Sabodala licence, lithologies generally trend north-northeast to northeast with steep dips. The sequence is dominated by mafic volcanics, with intercalated interflow sediment horizons.

    On the Massawa licence, the stratigraphy is dominated by a package of volcaniclastic rocks to the west, and a package of greywackes to the east. Bedding typically strikes to the north-northeast with a steep dip of between 75° to 80° toward the west. Several igneous rocks including sills of gabbro, felsic intrusions, and feldspar (and/or quartz-feldspar) porphyries intrude this dominantly clastic sequence.

    The deposits at the Sabodala-Massawa Complex are classified as orogenic gold deposits. The mineralisation is often associated with quartz shear veins, extension vein arrays, shear zones, and disseminated sulphides. Mineralisation is typically associated with greenschist metamorphic grade and vein dominated styles. The typical mineralogy of the gold-bearing mineralisation is quartz-carbonate ± albite ± K-feldspar veins with up to 10% (pyrite ± arsenopyrite ± base metals) sulphides. Alteration assemblages are typically dominated by iron-rich carbonate, albite, chlorite, scheelite, fuchsite and tourmaline. High grades are more commonly associated with high strain environments, and with the presence of arsenopyrite. The continuity of the gold grade is associated with alteration style, deformation intensity, and the presence of intrusive contacts. Gold is often hosted in brecciated zones, along with extensional and shear veins. Typically, moderate to strong silica-carbonate alteration and sulphides are present.

    Reserves and Resources

    As shown in Table 6 below, the mineral reserves and resources for the Sabodala-Massawa complex (Combined CIL and BIOX® operation) stand at 4.44Moz and 6.88Moz respectively. The current resource to reserve conversion ratio is temporarily low, at 65%, as the previously announced discovery of 709koz of M&I resources are yet to be reflected in Reserves.

    Table 6: Sabodala-Massawa (Combined CIL and BIOX® Operation) Mineral Reserves and Resources

    On a 100% basis.
    M&I Resources shown inclusive of Reserves.


    Tonnage

    Grade

    Content


    (Mt)

    (Au g/t)

    (Au Moz)

    Proven Reserves


    19.9

    1.36

    0.87

    Probable Reserves


    46.5

    2.39

    3.57

    P&P Reserves


    66.4

    2.08

    4.44

    Measured Resources (incl. reserves)


    21.2

    1.32

    0.90

    Indicated Resources (incl. reserves)


    88.9

    2.09

    5.98

    M&I Resources (incl. reserves)


    110.1

    1.94

    6.88

    Inferred Resources


    24.3

    2.16

    1.68


    The mineral Reserves and Resources were estimated as at 31 December 2021 in accordance with the provisions adopted by the Canadian Institute of Mining Metallurgy and Petroleum (CIM) and incorporated into the NI 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII Pit Shell and based on an open-pit cut-off of grade range of 0.50 g/t Au to 1.00 g/t Au and an Underground cut-off grade range of 2.00g/t Au to 2.84 g/t Au. Reserves are based on a gold price of $1,300/oz and resources are based on a gold price of $1,500/oz.

    The DFS economics for the Expansion Project is based on the refractory ore reserves, which represent 35% of the mine’s reserves, as detailed in Table 7 below.

    Table 7: Sabodala-Massawa (Combined CIL and BIOX® Operation) Mineral Reserves by Ore Type



    OXIDE


    TRANSITIONAL


    FRESH


    TOTAL

    On a 100% Basis

    Tonnage

    Grade

    Content


    Tonnage

    Grade

    Content


    Tonnage

    Grade

    Content


    Au Content

    (Mt)

    (g/t)

    (Au koz)


    (Mt)

    (g/t)

    (Au koz)


    (Mt)

    (g/t)

    (Au koz)


    (Au koz)

    Whole Ore Leach

    Proven Reserves

    1.2

    2.55

    99


    0.8

    1.89

    47


    6.7

    1.76

    382


    529

    Probable Reserves

    7.8

    1.95

    488


    4.0

    1.83

    236


    22

    1.39

    983


    1708

    P&P Reserves

    9.0

    2.03

    588


    4.8

    1.84

    283


    28.8

    1.48

    1366


    2236

    Refractory Ore

    Proven Reserves

    -

    -

    -


    0.1

    5.56

    14


    0.0

    2.83

    1


    15

    Probable Reserves

    -

    -

    -


    1.5

    4.18

    198


    9.2

    4.46

    1325


    1523

    P&P Reserves

    -

    -

    -


    1.6

    4.25

    212


    9.3

    4.46

    1326


    1538

    Underground Ore

    Proven Reserves

    -

    -

    -


    -

    -

    -


    -

    -

    -


    -

    Probable Reserves

    -

    -

    -


    -

    -

    -


    2.0

    5.33

    343


    343

    P&P Reserves

    -

    -

    -


    -

    -

    -


    1.4

    5.33

    242


    242

    Stockpiled Ore

    Proven Reserves

    4.4

    0.87

    124


    -

    -

    -


    6.6

    0.93

    198


    323

    Probable Reserves

    -

    -

    -


    -

    -

    -


    -

    -

    -


    -

    P&P Reserves

    4.4

    0.87

    124


    -

    -

    -


    6.6

    0.93

    198


    323

    Total

    Proven Reserves

    5.6

    1.23

    224


    0.9

    2.23

    61


    13.4

    1.35

    582


    866

    Probable Reserves

    7.8

    1.95

    488


    5.5

    2.46

    434


    33.3

    2.48

    2651


    3574

    P&P Reserves

    13.4

    1.65

    712


    6.3

    2.43

    495


    46.6

    2.16

    3233


    4440


    The mineral Reserves and Resources were estimated as at 31 December 2021 in accordance with the provisions adopted by the Canadian Institute of Mining Metallurgy and Petroleum (CIM) and incorporated into the NI 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Reserves are based on a gold price of $1,300/oz.

    Compared to the PFS, additional geometallurgical work has reclassified 3.8Mt at 2.02g/t gold for 248koz of fresh and transitional ore from the Massawa Central Zone and Massawa North Zone as refractory ore reserves, given it is more amenable to processing through the refractory plant. This removes the risk associated with blending transitional and fresh ore with oxide ore into the CIL circuit, improves mining efficiency due to lower need for selective mining and improves the overall recoveries.

    Mining operations
    At the Sabodala-Massawa complex the open pit mining method used is conventional drill and blast, truck and shovel and is conducted with Endeavour’s own fleet. The current fleet includes a total of 70 mobile mining equipment units. The mine operates using 10-meter blast benches mined in 5-meter flitches for waste and two 2.5-meter flitches for ore. Open pit mining operations assume selective mining with respect to both weathering type, process route and grade categories. The current mining strategy assumes the selective mining of the higher-grade material to enable separate processing of the high-grade fresh refractory and non-refractory components.

    In addition to the open pit mining, underground reserves defined at Sabodala-Massawa will be mined by two 500tpd underground mining operations at the Golouma and Kerekounda deposits located on the Sabodala Licence, with a combined 1,000tpd nominal rate. The selected mining method adopted for the operations will be cut and fill with mining operations projected to commence in 2028 and continue through to depletion in 2033.

    All surface ore haulage and supply of explosives is outsourced to a specialist contractor. Grade control drilling is carried out by a combined owner and contractor drilling fleet.

    Processing operations

    The process plant at Sabodala has been operating since 2009, processing over 50 million tonnes of free-milling gold ores from the Sabodala property, via a conventional 4.2Mt per annum SABC/CIL circuit since its first production.

    Ore from the Massawa property, will be transported approximately 27 to 32km by road to the Sabodala Whole Ore Leach and Refractory ROM pads for subsequent processing. Ore classified as Whole Ore Leach will be processed through the conventional SABC/CIL circuit while Refractory ore will be processed via a 1.2 Mtpa BIOX® processing plant, as illustrated in the site layout in Figure 3 (in the attached document).

    Refractory ore will be blended on the dedicated ROM pad to optimize the sulphur content before being fed to the crusher. A primary jaw crusher will produce a coarse crushed product which will be supplemented by the use of a surge bin conveyor, together the crusher and the surge bin will feed a crushed ore surge bin which will feed a crushed ore stockpile capable of supporting the mill for upto 16 hours. Ore will be milled through a conventional SABC configuration with a SAG and Ball mill grinding ore down to 90µm. The milled ore will be passed through a gravity circuit to recover any free-milling gold before being floated through a rougher-scavenger-cleaner circuit to produce a sulphide concentrate.

    The sulphide concentrate will be ground down to 45µm and then passed through seven BIOX® reactors with a minimum retention time of approximately 5.4 days. The resulting oxidised sulphide concentrate will be neutralized and processed through six BIOX® CIL tanks in series with a minimum retention time of 36 hours. The BIOX® process is a biological oxidation process designed to liberate refractory gold, or gold hosted within the mineral lattice; typically of sulphide minerals. Bacteria oxidise the sulphide minerals exposing occluded gold from within the sulphide minerals allowing the gold to be readily leached by conventional CIL.

    Gold will be recovered from loaded carbon in a AARL elution circuit by elution, electrowinning and gold smelting to produce doré. Extensive metallurgical testwork has indicated that overall gold recovery from the refractory ore plant is expected to be over 88% over the life of mine.

    Infrastructure
    At the existing Sabodala-Massawa complex, power is provided via a dedicated power station comprising six generators running on Heavy Fuel Oil (“HFO”) and rated at 6MW each. In addition, two smaller diesel generators provide back-up capacity. As part of the Expansion Project, an additional three 6MW HFO generators will add 18MW of power capacity to provide sufficient capacity for the refractory plant. A further two 1.6MW diesel generators will be added as backup capacity. The upgraded power infrastructure is being adapted so that it can be fed by solar power sources in the future.

    TSF 1B has been added to the initial scope and will be constructed as part of the Expansion Project. TSF 1B will be a fully HDPE lined storage facility designed to host the neutralised product from the BIOX® reactors and the BIOX® CIL tailings. It is designed to accommodate a total of 1.0Mt of tailings. The benign tailings from the flotation circuit will be deposited into the existing upstream TSF 1, and the supernatant water from the TSF can continue to be reused in the CIL and Refractory process plants. The TSF is designed to accommodate a total of 49.5Mt of tailings.

    Operating cost summary
    Mining operating cost estimates are derived from a combination of current costs achieved by the owner’s team, where possible, and first principles calculations. Processing operating cost estimates were prepared by Lycopodium (BIOX® Expansion Project) and Endeavour (existing CIL plant) and General and Administration (“G&A”) cost estimates were prepared by Endeavour, as summarised in the table below.

    Table 8: Sabodala-Massawa Complex Operating Unit Costs


    UNIT COSTS, $/t

    Open Pit Mining & Rehandling, $/t mined

    2.43

    Underground Mining, $/t mined

    76.99

    Processing – Whole Ore Leach, $/t processed

    12.43

    Processing – Refractory, $/t processed

    33.06

    G&A, $/t processed

    5.57


    Operating costs have been based on a HFO price of $0.54 per litre, a delivered diesel price of $0.90 per litre and generated power cost of $0.133 KWh and are in line with local pricing. Foreign exchange rates for the Expansion Project have been assumed as follows: EUR:USD of 1.18, USD:XOF of 555, USD:AUD of 1.40 and USD:CAD of 1.30.

    A corporate tax rate of 25% of gross profit has been applied in the DFS and a 5% gold royalty is payable on gold production.

    Capital cost summary
    The Expansion Project capital cost estimate was compiled with input from Lycopodium Minerals, Orelogy, Metso-Outotec, and QGE with input from L&MGSPL and Endeavour on the TSF. The capital costs have been developed with significant engineering and design and reinforced with Material Take Offs and Budget Quotations from reputable vendors, who Endeavour is familiar with from ongoing operations.

    The Expansion Project will be executed through partnership between Endeavour, Engineering, Procurement and Construction Management (“EPCM”) contractors, and Engineering, Procurement and Construction (“EPC”) contractors. Endeavour has successfully executed several builds over the past decade using EPCM, which allows for flexibility in defining scope, contractor selection and procurement ensuring that the projects’ team leverages off the existing operation.

    A construction period of up to 24-months is projected with the initial capital cost summarized in the table below, which includes an average contingency of 13%.

    Table 9: Expansion Project Capital Cost Estimate Summary (+15 / -5 %)


    CAPITAL COSTS, $M

    Treatment Plant

    106

    Reagents and Services

    35

    Infrastructure

    55

    Construction Distributables

    27

    SUBTOTAL

    223

    Management Costs

    33

    Owners Project Costs

    34

    TOTAL

    290


    While capital costs increased from $219 million in the PFS (as published by Teranga) to $290 million in the DFS, the Expansion Project remains a low-capex intensive brownfield expansion. As shown in the table below, scope additions (which were summarized in the above section) represent an increase of approximately $37 million while the majority of the $7 million in savings are associated with self-managing the earthworks using the existing Endeavour team. The cost inflation impact of steel (65% increase) and concrete (50% increase) pricing accounts for an increase of approximately $33 million.

    Table 10: Expansion Project Capital Cost Bridge (PFS vs DFS)


    CAPITAL COSTS, $M

    PFS CAPEX (as published by Teranga)

    219

    Scope changes and other

    +37

    Inflationary impact of steel and concrete

    +33

    Savings

    (7)

    Import and other taxes (excluded from PFS)

    +5

    Foreign exchange change

    +3

    DFS CAPEX

    290


    A total of $6 million of capital costs have already been spent on early works, engineering and infrastructure including access roads and drainage given the benefit to the CIL operation as well.

    Environmental Social Impact Assessment
    The Environmental Social Impact Assessment (“ESIA”), which includes a cumulative impact assessment for the whole Sabodala-Massawa complex, has been completed and its recommendations will be used to guide Endeavour’s local community engagement as well as to ensure it fulfils its environmental obligations, minimizing the mine’s impacts where possible.

    Timetable to first gold pour
    As shown in Figure 4 (in the attached document), early works have already commenced at the Expansion Project with detailed engineering expected to start in Q2-2022. The tailings dam and process plant construction are scheduled to commence later this year and the process plant is scheduled to be completed towards the end of 2023, with the first gold pour expected in early 2024.

    Exploration upside
    The Sabodala-Massawa exploration land package covers 1,240 square kilometres as shown in Figure 5 (in the attached document). Given its significant exploration potential, Endeavour’s target is to discover between 2.3 and 2.7 million ounces of Indicated resources at a discovery cost of less than $26/oz during the 2021-2025 period.

    During 2021, the exploration programme discovered 709koz of M&I resources and a further 46koz of Inferred resources at the Massawa Central Zone, Massawa North Zone, Sofia, Tina, Samina and Delya deposits.

    A $15 million exploration programme is planned for 2022, with ongoing work on the Massawa permit at Sofia North, Delya, Samina and Tina focussed on expanding pit resources and converting them to reserves. Further exploration work will focus on other Massawa permit targets including Bambaraya, Tiwana, Kawasara and Makana. Reconnaissance drilling is planned on the Niakafiri Extensions and Goumbati Kobokoto targets on the Sabodala permit as well.

    QUALIFIED PERSONS

    Clinton Bennett, Endeavour's VP Metallurgy and Process Improvement - a Fellow of the Australasian Institute of Mining and Metallurgy, is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and approved the technical information in this news release.

    CONTACT INFORMATION

    Martino De Ciccio
    VP – Strategy & Investor Relations
    +44 203 640 8665
    mdeciccio@endeavourmining.com

    Brunswick Group LLP in London
    Carole Cable, Partner
    +44 7974 982 458
    ccable@brunswickgroup.com

    Vincic Advisors in Toronto
    John Vincic, Principal
    +1 (647) 402 6375
    john@vincicadvisors.com


    ABOUT ENDEAVOUR MINING CORPORATION

    Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.

    A member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is listed on the London Stock Exchange and the Toronto Stock Exchange, under the symbol EDV.

    For more information, please visit www.endeavourmining.com.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

    This document contains forward-looking information or forward-looking statements (referred to herein as "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, are “forward-looking statements”, including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, the success of exploration activities, , the completion of studies, mine life and any potential extensions, and, the future price of gold. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates", believes”, “plan”, “target”, “opportunities”, “objective”, “assume”, “intention”, “goal”, “continue”, “estimate”, “potential”, “strategy”, “future”, “aim”, “may”, “will”, “can”, “could”, “would” and similar expressions.

    Forward-looking statements, while based on management's reasonable estimates, projections and assumptions at the date the statements are made, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to international operations; risks related to general economic conditions and the impact of credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows;; the completion of studies on the timelines currently expected, and the results of those studies being consistent with Endeavour’s current expectations; actual results of current exploration activities; production and cost of sales forecasts for Endeavour meeting expectations; unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates; increases in market prices of mining consumables; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; extreme weather events, natural disasters, supply disruptions, power disruptions, accidents, pit wall slides, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities; changes in national and local government legislation, regulation of mining operations, tax rules and regulations and changes in the administration of laws, policies and practices in the jurisdictions in which Endeavour operates; disputes, litigation, regulatory proceedings and audits; adverse political and economic developments in countries in which Endeavour operates, including but not limited to acts of war, terrorism, sabotage, civil disturbances, non-renewal of key licenses by government authorities, or the expropriation or nationalization of any of Endeavour’s property; risks associated with illegal and artisanal mining; environmental hazards; and risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic.

    Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour's most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.

    SABODALA-MASSAWA PROCESSING SCHEDULE

    Item

    Unit

    LOM Total / Average

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    2029

    2030

    2031

    2032

    2033

    2034

    2035

    2036

    2037

    2038

    Processing Schedule - CIL



















    Total Ore Processed

    kt

    55,581

    4,247

    4,499

    4,098

    4,057

    4,142

    4,227

    4,255

    4,160

    4,032

    4,059

    4,028

    4,000

    4,000

    1,777

    -

    -

    -

    Au Grade

    g/t

    1.62

    3.00

    2.37

    2.16

    1.26

    1.71

    1.18

    1.06

    1.70

    2.02

    1.76

    1.11

    0.89

    0.88

    1.35

    -

    -

    -

    Contained Gold

    koz

    2,902

    409

    343

    284

    164

    228

    160

    146

    227

    262

    230

    143

    115

    114

    77

    -

    -

    -

    Au Recovery

    %

    89.4%

    87.9%

    87.3%

    90.3%

    88.4%

    90.2%

    89.8%

    90.6%

    90.2%

    91.0%

    91.0%

    90.1%

    89.0%

    88.5%

    89.6%

    -

    -

    -

    Recovered Gold

    koz

    2,595

    360

    299

    256

    145

    206

    144

    132

    205

    238

    209

    129

    102

    101

    69

    -

    -

    -

    Processing Schedule - BIOX



















    Total Ore Processed

    kt

    10,805

    -

    -

    873

    1,202

    1,206

    1,205

    1,204

    1,202

    1,140

    1,201

    1,207

    365

    -

    -

    -

    -

    -

    Au Grade

    g/t

    4.43

    -

    -

    6.37

    7.50

    5.69

    5.49

    5.37

    4.32

    2.87

    2.03

    1.55

    1.55

    -

    -

    -

    -

    -

    Contained Gold

    koz

    1,538

    -

    -

    179

    290

    221

    212

    208

    167

    105

    78

    60

    18

    -

    -

    -

    -

    -

    Au Recovery

    %

    87.7%

    -

    -

    81.8%

    88.6%

    88.6%

    88.6%

    88.5%

    88.5%

    88.5%

    88.3%

    88.3%

    88.3%

    -

    -

    -

    -

    -

    Recovered Gold

    koz

    1,350

    -

    -

    146

    257

    195

    188

    184

    148

    93

    69

    53

    16

    -

    -

    -

    -

    -

    Processing Schedule - TOTAL



















    Total Ore Processed

    kt

    66,386

    4,247

    4,499

    4,971

    5,259

    5,348

    5,431

    5,459

    5,362

    5,172

    5,260

    5,235

    4,365

    4,000

    1,777

    -

    -

    -

    Au Grade

    g/t

    2.08

    3.00

    2.37

    2.90

    2.69

    2.61

    2.13

    2.01

    2.28

    2.21

    1.82

    1.21

    0.95

    0.88

    1.35

    -

    -

    -

    Contained Gold

    koz

    4,440

    409

    343

    463

    454

    448

    372

    354

    394

    367

    308

    204

    133

    114

    77

    -

    -

    -

    Au Recovery

    %

    88.8%

    87.9%

    87.3%

    87.0%

    88.6%

    89.4%

    89.1%

    89.3%

    89.5%

    90.3%

    90.3%

    89.6%

    88.9%

    88.5%

    89.6%

    -

    -

    -

    Recovered Gold

    koz

    3,945

    360

    299

    403

    402

    401

    332

    316

    352

    332

    278

    182

    118

    101

    69

    -

    -

    -


    SABODALA-MASSAWA COMPLEX LIFE OF MINE

    (At a $1,500/oz gold price)

    Unit

    LOM Total / Average

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    2029

    2030

    2031

    2032

    2033

    2034

    2035

    2036

    2037

    2038

    Mining Schedule




















    Total Material Moved

    kt

    427,003

    52,498

    51,350

    50,304

    50,723

    40,432

    39,381

    32,584

    29,930

    24,240

    15,548

    12,667

    12,498

    12,346

    2,502

    -

    -

    -

    Total Waste Moved

    kt

    371,653

    46,814

    46,445

    41,738

    45,811

    33,598

    35,147

    29,723

    26,573

    18,898

    11,727

    11,179

    12,096

    10,723

    1,183

    -

    -

    -

    Total Ore Mined

    kt

    55,349

    5,684

    4,905

    8,566

    4,912

    6,834

    4,234

    2,861

    3,357

    5,343

    3,821

    1,488

    402

    1,623

    1,319

    -

    -

    -

    Stripping Ratio

    w:o

    6.7

    8.2

    9.5

    4.9

    9.3

    4.9

    8.3

    10.4

    7.9

    3.5

    3.1

    7.5

    30.1

    6.6

    0.9

    -

    -

    -

    Au Grade - Ore Mined

    g/t

    2.31

    2.55

    3.29

    2.18

    1.98

    2.17

    2.70

    3.93

    2.32

    1.75

    1.80

    1.72

    2.58

    1.16

    1.58

    -

    -

    -

    Contained Gold - Ore Mined

    koz

    4,118

    465

    519

    600

    313

    477

    367

    362

    250

    301

    221

    82

    33

    60

    67

    -

    -

    -

    Processing Schedule




















    Total Ore Processed

    kt

    66,386

    4,247

    4,499

    4,971

    5,259

    5,348

    5,431

    5,459

    5,362

    5,172

    5,260

    5,235

    4,365

    4,000

    1,777

    -

    -

    -

    Au Grade - Ore Processed

    g/t

    2.08

    3.00

    2.37

    2.90

    2.69

    2.61

    2.13

    2.01

    2.28

    2.21

    1.82

    1.21

    0.95

    0.88

    1.35

    -

    -

    -

    Contained Gold - Ore Processed

    koz

    4,440

    409

    343

    463

    454

    448

    372

    354

    394

    367

    308

    204

    133

    114

    77

    -

    -

    -

    Au Recovery

    %

    88.8%

    87.9%

    87.3%

    87.0%

    88.6%

    89.4%

    89.1%

    89.3%

    89.5%

    90.3%

    90.3%

    89.6%

    88.9%

    88.5%

    89.6%

    -

    -

    -

    Recovered Gold

    koz

    3,945

    360

    299

    403

    402

    401

    332

    316

    352

    332

    278

    182

    118

    101

    69

    -

    -

    -

    Operating Unit Cost Summary




















    Mining & Rehandling

    $/t Mined

    2.78

    2.16

    2.30

    2.37

    2.48

    2.44

    2.38

    3.04

    3.72

    4.07

    4.52

    4.23

    3.44

    2.82

    3.05

    -

    -

    -

    Processing

    $/t Ore Processed

    17.00

    14.35

    15.19

    17.61

    18.91

    18.68

    17.87

    17.84

    17.94

    17.87

    17.96

    17.97

    15.10

    12.92

    12.92

    -

    -

    -

    General & Administrative

    $/t Ore Processed

    5.57

    8.47

    7.61

    7.29

    7.23

    7.11

    6.65

    5.98

    5.38

    4.81

    3.79

    3.45

    3.28

    1.76

    2.90

    -

    -

    -

    Total Cash Costs

    $/oz Gold Sold

    747

    605

    651

    601

    618

    680

    733

    682

    752

    811

    865

    1,101

    1,153

    1,359

    701

    -

    -

    -

    All-In-Sustaining Costs

    $/oz Gold Sold

    825

    725

    777

    776

    690

    766

    771

    719

    822

    837

    907

    1,169

    1,176

    1,413

    750

    -

    -

    -

    Operating Cash Flow Summary




















    Gold Revenue (A)

    $M

    5,775

    528

    437

    592

    592

    590

    486

    462

    517

    486

    406

    264

    171

    143

    99

    -

    -

    -

    Mining & Rehandling

    $M

    (1,187)

    (113)

    (118)

    (119)

    (126)

    (99)

    (94)

    (99)

    (111)

    (99)

    (70)

    (54)

    (43)

    (35)

    (8)

    -

    -

    -

    Processing

    $M

    (1,128)

    (61)

    (68)

    (88)

    (99)

    (100)

    (97)

    (97)

    (96)

    (92)

    (94)

    (94)

    (66)

    (52)

    (23)

    -

    -

    -

    General & Administrative

    $M

    (369)

    (36)

    (34)

    (36)

    (38)

    (38)

    (36)

    (33)

    (29)

    (25)

    (20)

    (18)

    (14)

    (7)

    (5)

    -

    -

    -

    Other (incl. Inventory Adj, Royalties)

    $M

    (260)

    (7)

    26

    1

    15

    (36)

    (16)

    13

    (29)

    (53)

    (56)

    (35)

    (13)

    (43)

    (13)

    (15)

    -

    -

    Subtotal: Total Cash Cost (B)

    $M

    (2,945)

    (218)

    (195)

    (242)

    (248)

    (273)

    (243)

    (215)

    (265)

    (269)

    (241)

    (201)

    (136)

    (137)

    (49)

    (15)

    -

    -

    Sustaining Capital

    $M

    (308)

    (43)

    (38)

    (70)

    (29)

    (35)

    (13)

    (12)

    (25)

    (9)

    (12)

    (12)

    (3)

    (5)

    (3)

    -

    -

    -

    Subtotal: All-In-Sustaining Costs (C)

    $M

    (3,253)

    (261)

    (232)

    (312)

    (278)

    (307)

    (256)

    (227)

    (290)

    (277)

    (252)

    (213)

    (139)

    (142)

    (52)

    (15)

    -

    -

    Sustaining Margin (A-C)

    $M

    2,522

    267

    205

    280

    314

    283

    231

    235

    228

    208

    154

    51

    32

    2

    47

    (15)

    -

    -

    Working Capital Movement

    $M

    93

    10

    (14)

    (27)

    (6)

    10

    (1)

    (7)

    8

    19

    27

    25

    24

    30

    (2)

    (3)

    -

    -

    Taxes

    $M

    (477)

    (82)

    (46)

    (18)

    (38)

    (33)

    (46)

    (35)

    (44)

    (49)

    (43)

    (32)

    (8)

    (2)

    -

    (5)

    4

    -

    FCF Before Non-Sustaining Capital

    $M

    2,137

    196

    145

    235

    270

    259

    184

    193

    192

    178

    138

    44

    48

    29

    45

    (23)

    4

    -

    Non-Sustaining Capital

    $M

    (358)

    (49)

    (28)

    -

    (32)

    (8)

    (38)

    (60)

    (9)

    (2)

    (1)

    (9)

    (44)

    (10)

    (68)

    -

    -

    -

    Growth Capital

    $M

    (290)

    (116)

    (160)

    (15)

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    Mine Free Cash Flow

    $M

    1,489

    30

    (42)

    221

    238

    251

    146

    133

    183

    176

    137

    35

    4

    19

    (22)

    (23)

    4

    -


    Attachment

  • 220404 - Sabodala-Massawa DFS




  • Share RecommendKeepReplyMark as Last ReadRead Replies (1)


    To: LoneClone who wrote (164639)4/4/2022 4:44:40 PM
    From: LoneClone
       of 167649
     
    Canada Silver Cobalt Intersects 13.1 Meter Massive Sulphides Zone with Nickel, Copper and Cobalt Close to Surface at Graal Battery Metals Property in Quebec

    The most recent discovery intersected 9.30 meters of combined massive sulphides containing 1.20% NiEq, consisting of 0.72% nickel, 0.86% copper and 0.09% cobalt mineralization in NRC-22-24 at 142.5m.

    newsfilecorp.com

    Coquitlam, British Columbia--(Newsfile Corp. - April 4, 2022) - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTCQB: CCWOF) (FSE: 4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to provide an update on exploration activity at its Graal nickel-copper-cobalt discovery in the Lac St-Jean region of Quebec, including the most recent assays results from drill hole NRC-22-24 which intersected 13.1 meters of combined massive sulphides within a 30-meter zone of disseminated and massive sulphides in a new area located 5 km from the previously reported discovery of massive sulphides.

    "The results coming in from the labs for the drill program at Graal continue to be exciting for our geological team. Almost every drill hole has encountered disseminated to massive sulphides with strong nickel, copper and cobalt mineralization. We intend to continue to explore further to determine the full size of this nickel-copper cobalt deposit as it appears to have the potential to become an important supplier of battery metals for the EV market," stated Matt Halliday, P.Geo., President, COO and VP Exploration.

    The drilling campaign with 7,772m drilled so far has been paused to allow reception of pending assay data, bore-hole EM data, and the completion of the SQUID Ground Geophysical Survey. The geophysical survey aims to more accurately pinpoint and outline the geophysical conductors as well as identify areas where significant thicknesses are located.

    The Company previously reported a major discovery of massive sulphides with high-grade nickel, copper and cobalt mineralization along with platinum and palladium in the northwest corner of the property where an airborne geophysical survey had indicated a sizeable gravity anomaly. The first three drill results reported in this location (NRC-21-02-03-04) showed segments up to 2.08% nickel and 3.75% copper. (See news release March 3, 2022.) More assays are pending.

    In addition, about 5 km to the southeast, the Company also drilled hole NRC-22-24 in a spot that had not yet been drilled along the 6 km conductor continuity where a previous ground geological survey had indicated a gravity anomaly (see Figure 5 map below).

    This drill hole (NRC-22-24) intersected 13.1 meters of combined massive sulphides within 30 meters of disseminated and massive sulphides between 121.5 - 152.1 meters downhole. Drill hole NRC-22-24 was drilled at an azimuth of 115 degrees, dip of -55 degrees, and is located at UTM 386142E, 5521057N. The other pending assay results will be released once received and validated.

    See Table 1 below for assay data, Figures 2 & 3 for core photos, Figure 4 for a cross section of the drill hole and Figure 5 for a map of Graal property).

    These latest assay results support the previously estimated potential target along the 6 km conductor continuity of near-surface tonnage of 30 to 60 million tonnes at a grade range of 0.60% to 0.80% nickel and 0.30% to 0.50% copper with 0.10% to 0.15% cobalt. This estimation does not take into account any potential at depth which is currently being explored.

    Please note that the quantity and grade of this potential target calculation is conceptual in nature, and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. The potential target primary evaluation is a calculation of the length multiplied by the thickness of intersection by the density of 3.3 to 4.0 t/m3 multiplied by the depth extension of 150 to 250m based on historical drill holes.

    In addition to the holes drilled by Canada Silver Cobalt, there are historical intersections including hole 1279-00-10 drilled by Mines d'or Virginia Inc. in June 2000 approximately 200m south of NRC-22-24. This intersection is not part of the gravity anomaly, yet it still returned 1.15% Ni, 0.56% Cu and 0.15% Co over 4.5 meters (Source : GM 58815) which suggests the mineralization may be larger than the geophysical anomaly itself.

    Table 1: Key sample and assay details for drill hole NRC-22-24

    HOLE IDFrom (m)To (m)Length (m) Ni (%)Cu (%)Co (%)% NiEq (1)
    NRC-22-24121.50152.1030.600.390.400.050.63
    NRC-22-24121.50129.207.700.610.340.070.89
    Including121.50122.501.001.300.240.131.69
    Including122.50123.501.001.351.160.142.05
    NRC-22-24142.80152.109.300.720.860.091.20
    Including142.80143.700.901.260.100.111.56
    Including145.60146.000.400.212.320.041.01
    Including146.00146.900.901.170.210.121.53
    Including148.20148.900.701.013.310.132.33
    Including149.40150.000.601.023.400.122.35
    Including150.00151.001.001.270.920.161.94
    Including151.00152.101.101.160.890.161.82


    Please note: Intervals are core length and is presumed to be close to true thickness, with no capping applied, and using quartered core split. Bolded intervals are grade composites.

    Note (1) %NiEq = %Ni+(%Cu X CuPrice/ NiPrice)+ %Co X CoPrice/ NiPrice) where Nickel is 33,000USD/t, Copper is 10,000USD/t and Cobalt is 81,500USD/t; source LME March 30, 2022.

    In addition, the technical team has noted other intervals with disseminated to massive sulfides that have assays pending. These intercepts include but not limited to:

  • DDH NRC-21-05 intercepted 7.8 meters of mixed and disseminated sulfides mineralization, beginning at 144.3 meters depth.
  • DDH NRC-21-06 intercepted 13.4 meters of mixed and massive sulfides mineralization, beginning at 1395.2 meters depth.
  • DDH NRC-21-07 intercepted 1.9 meters of mixed and massive sulfides mineralization, beginning at 167.8 meters depth.
  • DDH NRC-21-08 intercepted 9.1 meters of mixed and massive sulfides mineralization, beginning at 121.0 meters depth.


  • In addition to diamond drilling, bore-hole EM geophysics surveys was completed on several of the holes that intersected nickel and copper sulfides. The team is awaiting both the data and the geophysical report. The EM survey should assist in targeting the most prospective anomaly within a 100-meter radius from the existing holes. The mineralization remains open in all directions and at depth. The next phase of drilling in 2022 will focus on the areas identified by the SQUID survey. The drill program is currently being managed by Laurentia Exploration in association with GoldMinds Geoservices Inc.



    Figure 1: Map showing the location of NRC-22-24 (white) in addition to historical holes (blue) and the planned drill holes (yellow) targeting the geophysical anomaly.

    To view an enhanced version of Figure 1, please visit:
    orders.newsfilecorp.com



    Figure 2: Core photo of NRC-22-24 with massive sulfides highlighted in box 28-29

    To view an enhanced version of Figure 2, please visit:
    orders.newsfilecorp.com



    Figure 3: Core photo of NRC-22-24 with massive sulfides highlighted in box 33-35

    To view an enhanced version of Figure 3, please visit:
    orders.newsfilecorp.com



    Figure 4: Cross Section showing Drill Hole NRC-22-24

    To view an enhanced version of Figure 4, please visit:
    orders.newsfilecorp.com



    Figure 5: Map of Graal property with 6 km conductor continuity indicated by red line

    To view an enhanced version of Figure 5, please visit:
    orders.newsfilecorp.com

    QA/QC

    The ¼ core samples have been sent rush to OnSite Labs inc. located in Cobalt Ontario for sample preparation and four-acid digest multi-element suite including nickel and copper as well as a fire assay for platinum and palladium. Blank and standards were inserted in the sequence and meets expected values allowing the public disclosure. The ½ core results from ALS will be disclosed once received, verified for comparison to the ¼ core results.

    Qualified person

    The technical information in this news release has been reviewed by Claude Duplessis, P.Eng., GoldMinds Geoservices Inc., a member of the Québec Order of Engineers, and is a qualified person in accordance with the National Instrument 43-101 standards.

    About Canada Silver Cobalt Works Inc.

    Canada Silver Cobalt Works Inc. recently discovered a major high-grade silver vein system at Castle East located 1.5 km from its 100%-owned, past-producing Castle Mine near Gowganda in the prolific and world-class silver-cobalt mining district of Northern Ontario. The Company has completed a 60,000m drill program aimed at expanding the size of the deposit with an update to the resource estimate underway.

    In May 2020, based on a small initial drill program, the Company published the region's first 43-101 resource estimate that contained a total of 7.56 million ounces of silver in Inferred resources, comprising very high-grade silver (8,582 grams per tonne un-cut or 250.2 oz/ton) in 27,400 tonnes of material from two sections (1A and 1B) of the Castle East Robinson Zone, beginning at a vertical depth of approximately 400 meters. Note that mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to Canada Silver Cobalt Works Press Release May 28, 2020, for the resource estimate. Report reference: Rachidi, M. 2020, NI 43-101 Technical Report Mineral Resource Estimate for Castle East, Robinson Zone, Ontario, Canada, with an effective date of May 28, 2020, and a signature date of July 13, 2020.

    The Company also has 14 battery metals properties in Northern Quebec where it is currently drilling and the prospective 1,000-hectare Eby-Otto gold property close to Agnico Eagle's high-grade Macassa Mine near Kirkland Lake, Ontario where it will be exploring in 2022.

    Canada Silver Cobalt's flagship silver-cobalt Castle mine and 78 sq. km Castle Property feature strong exploration upside for silver, cobalt, nickel, gold, and copper. With underground access at the fully owned Castle Mine, an exceptional high-grade silver discovery at Castle East, a pilot plant to produce cobalt-rich gravity concentrates on site, a processing facility (TTL Laboratories) in the town of Cobalt, and a proprietary hydrometallurgical process known as Re-2Ox (for the creation of technical-grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations), Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space. More information at www.canadasilvercobaltworks.com

    "Frank J. Basa"
    Frank J. Basa, P. Eng.
    Chief Executive Officer

    For further information, contact:
    Frank J. Basa, P.Eng.
    Chief Executive Officer
    416-625-2342

    Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    Caution Regarding Forward-Looking Statements

    This news release may contain forward-looking statements which include, but are not limited to, comments regarding the Offering and comments that involve other future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address the Offering, resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, future financings, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. No assurance can be given that the Offering will close on the terms and conditions set out in this news release or at all. General business conditions are factors that could cause actual results to vary materially from forward-looking statements. A detailed discussion of the risk factors encountered by Canada Silver Cobalt is available in the Company's Annual Information Form dated July 19, 2021 for the fiscal year ended December 31, 2020 available under the Company's profile on SEDAR at www.sedar.com.

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    To: LoneClone who wrote (164640)4/4/2022 5:02:07 PM
    From: LoneClone
       of 167649
     
    Verde details Plant 3 construction plans

    ca.finance.yahoo.com

    Verde AgriTech PLC
    Mon, April 4, 2022, 3:00 a.m.·3 min read

    Expanded production capacity to supply 16.41% of Brazil’s current potash market

    BELO HORIZONTE, Brazil, April 04, 2022 (GLOBE NEWSWIRE) -- Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce that it has commenced the studies required for permitting and construction of its third production facility (“Plant 3”). Plant 3 is projected to have a production capacity of up to 10,000,000 tonnes per year (“tpy”) of Verde’s multinutrient potassium products, BAKS® and K Forte® sold internationally as Super Greensand® (the “Product”), raising the Company’s overall production capacity to 13,000,000 tpy, which represents 16.41% of the current Brazilian potash market in K2O.

    Plant 3’s engineering studies have started and are expected to be concluded in the second half of 2022. Construction of Plant 3 is expected in the second half of 2023, with operations projected to start in the first half of 2024.

    Alongside the Product, Plant 3 will deploy proprietary technologies developed by Verde: Cambridge Tech, 3D Alliance, MicroS Technology, and N Keeper. Cambridge Tech was developed in partnership with the University of Cambridge, through mechanical activation it alters the structure of Glauconitic Siltstone, ensuring that potassium and other nutrients are progressively made available to plants. 3D Alliance technology transforms the three-dimensional structure of the raw materials added to a fertilizer, creating a homogenous combination of nutrients that are more evenly distributed in the soil. MicroS Technology is an elemental sulfur micronisation process that results in a larger contact surface that facilitates the work of soil microorganisms and increases nutrient availability to plants. N Keeper alters the physical-chemical properties of Glauconitic Siltstone to enable ammonia retention for use as a calibrated additive in nitrogen fertilizers. Verde currently has one granted patent and 8 patents pending.

    Verde’s current Plant 1 production capacity is 600,000 tpy. Plant 2 is on track to start production in Q3 2022 initially with a 1,200,000 tpy production capacity, as announced by the Company in the press release published on March 03, 2022. The final Plant 2 capacity of 2,400,000 tpy is expected to be reached in early Q4 2022. Therefore, by Q4 2022, with Plant 2’s expansion, overall production capacity is expected to be 3,000,000 tpy, establishing Verde as Brazil’s largest potash producer.

    The Company continues working on its New Pre-Feasibility Study, which analyses a scenario of total annual production of 50,000,000 tonnes of Verde’s Product, equivalent to 63% of the total Brazilian potash consumption in 2021.

    “In an effort to meet our growing client base's need for potash, Verde is taking one more steady step towards an ever greater market presence. We are confident that the state and federal governments understand the invaluable work that our team has been performing towards food security and environmental soundness, and they will endeavour to ensure the timely approval of the few permits that are still under review,” commented Verde’s Founder, President & CEO Cristiano Veloso.

    About Verde AgriTech

    Verde is an agricultural technology company that produces fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.

    Corporate Presentation

    For further information on the Company, please view shareholders’ deck:

    verde.docsend.com

    Investors Newsletter

    Subscribe to receive the Company’s updates at:

    cloud.marketing.verde.ag

    The last edition of the newsletter can be accessed at: bit.ly

    Cautionary Language and Forward-Looking Statements

    This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.

    For additional information please contact:

    Cristiano Veloso, Founder, Chairman & Chief Executive Officer

    Tel: +55 (31) 3245 0205; Email: investor@verde.ag

    www.investor.verde.ag | www.supergreensand.com | www.verde.ag

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    To: LoneClone who wrote (164641)4/4/2022 5:25:03 PM
    From: LoneClone
       of 167649
     
    Copper Mountain Mining Announces Commissioning of Trolley Assist Project


    newswire.ca

    Copper Mountain Mining Corporation Apr 04, 2022, 07:00 ET

    VANCOUVER, BC, April 4, 2022 /CNW/ - Copper Mountain Mining Corporation (TSX: CMMC) (ASX: C6C) (the "Company" or "Copper Mountain") is pleased to announce that it has successfully commissioned its trolley assist project, which consists of an approximately one kilometer trolley-assist haul ramp and seven pantograph-equipped electric haul trucks. This project is in partnership with SMS Equipment, Komatsu, ABB, Clean BC, and B.C. Hydro, and is aimed at cutting carbon emissions at the Copper Mountain Mine by at least 30%, paving a solid foundation to achieve the Company's goal of net zero carbon emissions by 2035.



    A video of the first commissioned trolley assist haul truck, passing a diesel-only truck.

    "We are proud to be the first open pit mine to commission electric trolley assist haulage in North America," stated Gil Clausen, Copper Mountain's President and CEO. "We have been assessing numerous innovative technologies that will reduce our carbon load. Through electrification and capacity increases, we are targeting to reduce our carbon intensity by 50 to 70% in the next five to seven years. We are also actively testing and researching renewable diesel, hydrogen, battery, and fuel-cell technology to power our haulage units to achieve our goal of net-zero carbon emissions by 2035."

    "This project stemmed from our goal to reduce our carbon emissions and make a meaningful change, while improving our costs and productivity," said Don Strickland, EVP – Sustainability for Copper Mountain Mining Corporation. "Diesel fuel for our 240t haul trucks is the largest source of GHG emissions at the mine and diesel cost is between our second and third largest cost item for the site. With clean hydro-electricity available in BC, the best way to achieve both the GHG and cost reduction objectives was to consider trolley assist technology when acquiring new trucks. Electric powered haul trucks will now travel up our haulage ramps at twice the speed, one tenth of the energy cost, and near zero GHG emissions."

    A video of the first commissioned trolley assist haul truck, passing a diesel-only truck, can be seen here.

    For more information about Copper Mountain's ESG initiatives, such as the Company's progressive reclamation program, its collaboration with BC Ministry of Energy, Mines and Low Carbon Innovation and IBM on Mines Digital Trust and its new recycling solution for haul truck tires with Kal Tire, please visit the Company's website: c212.net. In addition, the Company will be publishing its inaugural sustainability report this year.

    About Copper Mountain Mining Corporation
    Copper Mountain's flagship asset is the 75% owned Copper Mountain Mine located in southern British Columbia near the town of Princeton. The Copper Mountain Mine currently produces approximately 100 million pounds of copper equivalent per year. Copper Mountain also has the 100% owned development-stage Eva Copper Project, which is expected to add approximately 100 million pounds of copper annually, in Queensland, Australia and an extensive 2,100 km2 highly prospective land package in the Mount Isa area. Copper Mountain trades on the Toronto Stock Exchange under the symbol "CMMC" and Australian Stock Exchange under the symbol "C6C".

    Additional information is available on the Company's web page at www.CuMtn.com.

    On behalf of the Board of

    COPPER MOUNTAIN MINING CORPORATION
    "Gil Clausen"

    Gil Clausen, P.Eng.
    President and Chief Executive Officer

    Website: www.CuMtn.com

    Cautionary Note Regarding Forward-Looking Statements
    This news release may contain forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "occur" or "be achieved". In this document, certain forward-looking statements are identified, including the Company's goal of net zero carbon emissions by 2035 and anticipated production at the Copper Mountain Mine. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include the risks set out in Copper Mountain's public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com. Although Copper Mountain believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by applicable law, Copper Mountain disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

    SOURCE Copper Mountain Mining Corporation

    For further information: Letitia Wong, Executive Vice President, Strategy & Corporate Development, Telephone: 604-682-2992, Email: Letitia.Wong@CuMtn.com



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    To: LoneClone who wrote (164642)4/4/2022 5:28:42 PM
    From: LoneClone
       of 167649
     
    EDM Reports Entering into Exclusive Negotiations for the Scotia Mine Debt Financing and Offtake

    newsfilecorp.com

    Halifax, Nova Scotia--(Newsfile Corp. - April 4, 2022) - EDM Resources Inc. (TSXV: EDM) ("EDM" or the "Company") announces that it is in advanced exclusive discussions to obtain debt financing and enter into an offtake agreement sufficient to put EDM's Scotia Mine into commercial production in Q4 of 2023.

    EDM's President and CEO, Mr. Mark Haywood, stated: "We are very pleased with our progress to date in selecting a potential transaction partner for the financing of the Scotia Mine and advancing our discussions of the terms of potential financing and offtake agreements. While we do not have a binding agreement as of yet, we are confident that upon the satisfactory completion of mine site due diligence by the prospective counterparty and following further negotiations, we will be in a position to announce that we have secured the financing we need move the Scotia Mine forward to production."

    EDM will provide an update on the status of the negotiations and any agreements reached respecting the finance and offtake at or prior to the end of April 2022.

    About EDM Resources Inc.

    EDM is a Canadian exploration and mining company that has full ownership of the Scotia Mine and related facilities near Halifax, Nova Scotia. EDM also holds several prospective exploration licenses near its Scotia Mine and in the surrounding regions of Nova Scotia.

    The Company's common shares are traded on the TSX Venture Exchange under the symbol "EDM". For more information, please contact:

    Mark Haywood - President & Chief Executive Officer
    Robert Suttie - Chief Financial Officer
    Simion Candrea - Vice President, Corporate Development

    Head Office: Purdy's Wharf, 1959 Upper Water Street, Suite 1301, Nova Scotia, B3J 3N2, Canada
    Telephone: +1 (902) 482 4481
    Facsimile: +1 (902) 422 2388
    Email & Web: info@EDMresources.com & www.EDMresources.com

    The Company's corporate filings and technical reports can be viewed on the Company's SEDAR profile at www.sedar.com. Further information on EDM is also available on Facebook at newsfilecorp.com Twitter at newsfilecorp.com and LinkedIn at newsfilecorp.com.

    CAUTIONARY STATEMENTS

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

    This news release includes certain forward-looking statements which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "should", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements, potential mineralization, exploration and development results, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from EDM's expectations include, among others, the degree to which mineral resource and reserve estimates are reflective of actual mineral resources and reserves, the degree to which factors are present which would make a mineral deposit commercially viable, the price of zinc, lead and gypsum, uncertainties relating to availability and costs of financing needed in the future, changes in equity markets, risks related to international operations, the actual results of current exploration activities, delays in the development of projects, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of metals, ability to predict or counteract potential impact of COVID-19 coronavirus on factors relevant to the Company's business, as well as those factors discussed in the section entitled "Risk Factors" in EDM's management's discussion and analysis of the Company's annual financial statements for the period ended December 31, 2020. Although EDM has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results to be not as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

    NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

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    To: LoneClone who wrote (164643)4/4/2022 5:42:56 PM
    From: LoneClone
       of 167649
     
    SANDSTORM GOLD ROYALTIES ANNOUNCES RECORD SALES AND REVENUE IN FIRST QUARTER 2022

    newswire.ca

    Sandstorm Gold Ltd. Apr 04, 2022, 09:00 ET

    VANCOUVER, BC, April 4, 2022 /CNW/ - Sandstorm Gold Ltd. ("Sandstorm Gold Royalties" or the "Company") (NYSE: SAND) (TSX: SSL) is pleased to report that the Company sold approximately 18,700 attributable gold equivalent ounces1 and realized preliminary revenue2 of $35.3 million during the three months ended March 31, 2022, both representing a record for the Company (17,444 attributable gold equivalent ounces and $31.0 million in revenue for the comparable period in 2021). Preliminary cost of sales, excluding depletion2 for the three month period was $5.3 million resulting in cash operating margins1 of approximately $1,600 per attributable gold equivalent ounce1 ($5.4 million and $1,470 per attributable gold equivalent ounce for the comparable period in 2021, respectively).

    Note 1

    Sandstorm Gold Royalties has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") including (i) attributable gold equivalent ounces and (ii) cash operating margin. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. Note these figures have not been audited and are subject to change. (i) As the Company's operations are primarily focused on precious metals, the Company presents attributable gold equivalent ounces as it believes that certain investors use this information to evaluate the Company's performance in comparison to other mining companies in the precious metals mining industry who present results on a similar basis. Attributable Gold Equivalent ounces is a non-IFRS financial ratio that uses Total Sales, Royalties, and Income from Other Interests as a component. Total Sales, Royalties and Income from Other Interests is a non-IFRS financial measure and is calculated by taking total revenue which includes Sales and Royalty Revenue, and adding contractual income relating to royalties, streams and other interests excluding gains and losses on dispositions. Attributable Gold Equivalent ounces is calculated by dividing the Company's Total Sales, Royalties, and Income from other interests for the period by the average realized gold price per ounce from the Company's Gold streams for the same respective period ($35.3 million/$1,887 realized gold price for the current period and $31.0 million/$1,777 realized gold price for the prior period) and may be subject to change. (ii) The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. Cash operating margin is a non-IFRS financial ratio that uses Total Sales, Royalties, and Income from Other Interests and Attributable Gold Equivalent ounces as components (described further in item i above). Cash operating margin is calculated by subtracting cost of sales, excluding depletion from Total Sales, Royalties, and Income from other interests and dividing this figure by attributable gold equivalent ounces sold ([$35.3 million - $5.3 million]/18,700 attributable gold equivalent ounces for the current period and [$31.0 million - $5.4 million]/17,444 attributable gold equivalent ounces for the prior period).


    Note 2

    These figures have not been audited and are subject to change. As the Company has not yet finished its quarter-end close procedures, the anticipated financial information presented in this press release is preliminary, subject to final quarter-end closing adjustments, and may change materially.




    CONTACT Information
    For more information about Sandstorm Gold Royalties, please visit our website at www.sandstormgold.com or email us at info@sandstormgold.com.


    ABOUT SANDSTORM GOLD ROYALTIES
    Sandstorm is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine. Sandstorm has acquired a portfolio of 230 royalties, of which 29 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold royalties. For more information visit: www.sandstormgold.com.


    CAUTIONARY STATEMENTS TO U.S. SECURITYHOLDERS
    The financial information included or incorporated by reference in this press release or the documents referenced herein has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, which differs from US generally accepted accounting principles ("US GAAP") in certain material respects, and thus are not directly comparable to financial statements prepared in accordance with US GAAP.

    The disclosure and information contained or referenced herein uses mineral reserve and mineral resource classification terms that comply with reporting standards in Canada, and mineral reserve and mineral resource estimates are made in accordance with Canadian NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards"). These standards differ significantly from the mineral reserve disclosure requirements of the United States Securities Exchange Commission (the "SEC") set forth in Industry Guide 7. Consequently, information regarding mineralization contained or referenced herein is not comparable to similar information that would generally be disclosed by U.S. companies under Industry Guide 7 in accordance with the rules of the SEC. Further, the SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the Securities Exchange Act of 1934 ("Exchange Act"). These amendments became effective February 25, 2019 (the "SEC Modernization Rules") and, commencing for registrants with their first fiscal year beginning on or after January 1, 2021, the SEC Modernization Rules replaced the historical property disclosure requirements included in SEC Industry Guide 7. As a foreign private issuer that files its annual report on Form 40-F with the SEC pursuant to the multi-jurisdictional disclosure system, the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. The SEC Modernization Rules include the adoption of terms describing mineral reserves and mineral resources that are "substantially similar" to the corresponding terms under the CIM Definition, but there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards adopted under the SEC Modernization Rules. U.S. investors are also cautioned that while the SEC recognizes "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under the Modernization Rules, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable. Further, "inferred mineral resources" have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of the "inferred mineral resources" exist. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. For the above reasons, information contained or referenced herein regarding descriptions of our mineral reserve and mineral resource estimates is not comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements of the SEC under either Industry Guide 7 or SEC Modernization Rules.


    CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
    This press release contains "forward-looking statements", within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Sandstorm Gold Royalties. Forward-looking statements include, but are not limited to the future price of gold, silver, copper, iron ore and other metals; the estimation of mineral reserves and resources, realization of mineral reserve estimates, the timing and amount of estimated future production. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", or similar terminology.

    Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Sandstorm Gold Royalties to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Sandstorm Gold Royalties will operate in the future, including the receipt of all required approvals, the price of gold and copper and anticipated costs. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, failure to receive necessary approvals, changes in business plans and strategies, market conditions, share price, best use of available cash, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold or other commodity the Company will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.

    Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which the Company will purchase gold, other commodities or receive royalties from, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the section entitled "Risks to Sandstorm" in the Company's annual report for the financial year ended December 31, 2021 and the section entitled "Risk Factors" contained in the Company's annual information form dated March 31, 2022 available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.

    SOURCE Sandstorm Gold Ltd.

    For further information: ERFAN KAZEMI, CHIEF FINANCIAL OFFICER, 604 689 0234; KIM BERGEN, CAPITAL MARKETS, 604 628 1164



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