VANCOUVER, British Columbia, Nov. 14, 2017 (GLOBE NEWSWIRE) -- Trek Mining Inc. (TREK.V) (“Trek Mining” or “the Company”) is pleased to announce that it has received the final key permit required to construct its 100%-owned Aurizona Gold Mine (“Aurizona”) in Brazil. The License to Install permit, issued by the Maranhão State Environmental Agency (“SEMA”), allows the Company to complete the construction activities required to commence production at the mine, with the objective of pouring gold by year-end 2018.
“Receipt of the Aurizona License to Install permit is an important milestone for Trek Mining,” said Christian Milau, CEO of Trek Mining. “We now have the permits and the funding, after completion of the Equinox Gold merger, to construct the Aurizona Gold Mine and are on track to achieve production by the end of 2018. We look forward to transitioning from a developer to a gold producer and creating value for all of our stakeholders.”
On behalf of the Board of Trek Mining Inc.
“Christian Milau”
CEO & Director
About the Aurizona Gold Mine
The July 2017 feasibility study for Aurizona outlined the design of an open-pit gold mine producing on average approximately 136,000 ounces of gold per year, with an initial 6.5-year mine life and significant exploration upside, as demonstrated by recent drill results. Initial capital to fund construction and commissioning is estimated at a modest US$130.8 million due to the Company’s ability to leverage significant existing infrastructure in place at the brownfields mine site. Aurizona demonstrates strong returns in the current gold price environment, with an after-tax internal rate of return of 34% and an after-tax net present value using a 5% discount rate of US$197.1 million using a base case gold price of US$1,250 per ounce.
About Trek Mining Inc.
Trek Mining is a Canadian mining company with a portfolio of production, near-production and exploration-stage projects in North and South America. On October 25, 2017, Trek Mining announced the signing of a definitive agreement to combine its business with NewCastle Gold Ltd. (NCA.TO) and Anfield Gold Corp. (ANF.V). The combined entity intends to operate under the name Equinox Gold Corp. (“Equinox Gold”) and expects to trade on the TSX Venture Exchange under the ticker symbol “EQX”. Led by Ross Beaty as Chairman, Equinox Gold will be a well-financed, multi-asset mining company with a near-term gold production and strong growth platform of copper and gold assets. Further information about the proposed business combination and Trek’s current portfolio of assets is available at www.trekmining.com or by email at ir@trekmining.com.
Trek Mining Contacts
Christian Milau, Chief Executive Officer
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
Email: ir@trekmining.com
Cautionary Notes
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will”, “allows”, “commence”, “objective”, “look forward”, “intends”, “proposed” and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this press release include statements regarding mine development activities at Aurizona, the anticipated restart of production at Aurizona, and the proposed business combination to create Equinox Gold. Although Trek Mining 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 Trek Mining can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in Trek Mining’s periodic filings with Canadian securities regulators, and assumptions made with regard to: the Company’s ability to successfully complete mine development at Aurizona and restart production; timing of the anticipated restart of production; the Company’s ability to achieve the production and operating results estimated in the Aurizona feasibility study; the Company’s ability to complete the proposed business combination with NewCastle Gold and Anfield Gold; and the Company’s ability to achieve the synergies expected as a result of the business combination. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Trek Mining does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.