Tirex Resources Ltd. ("Tirex") announced on July 31, 2015 that it had entered into discussions with Sinomine Resource Exploration Co., Ltd. ("Sinomine") with regards to Tirex's exploration and development activities in Albania.
Today, Tirex is pleased to announce that it has signed an agreement with Sinomine that further defines a framework for collaboration between the two companies.
Sinomine and Tirex have executed a Memorandum of Understanding ("MOU") with regards to the Koshaj Project ("Koshaj") and the Rehova Project ("Rehova"), both located in Albania.
Koshaj
Sinomine, through its mining operations in-country, will purchase mineralized materials ("materials") that will be produced from Koshaj. The selling price will be based on an internationally accepted formula based on prevailing metal prices.
While it is estimated that Sinomine will complete its evaluation of the project prior to the end of 2015, the materials pre-purchased by Sinomine from Tirex will occur before this.
Additionally, Sinomine will provide funds for additional confirmation and resource expansion drilling and the rehabilitation of the underground workings in place at Koshaj. All funds advanced to Tirex will be treated as an advance payment for the purchase of materials.
Koshaj is located in the Mirdita District, a major historic copper producing area in northern Albania. It was ready to start production alongside nearby producing mines when the state mining operations stopped in Albania in early '90s due to the collapse of the previous communist government. Koshaj has a historical resource of 707,592 tons at 0.98% copper, 3.88% zinc and 0.71 g/t gold with a high grade copper and zinc zone of 388,164 tons grading 4.21% zinc, 1.19% copper and 0.95g/t gold.
Rehova
Tirex plans to conduct exploration and resource confirmation drilling at the Rehova Project. Sinomine proposes to provide core drilling services to Tirex during the confirmation drilling stage. The confirmation drill program, designed by Tirex technical staff, is targeted to confirm historical drill results garnered during state-run drilling at Rehova. If confirmation is positive, Sinomine will provide financing for Tirex and Sinomine to jointly move Rehova into commercial production in consideration for a financial interest in the project.
Rehova is located in southeastern Albania, is readily accessible by paved roads and is on the electrical power grid. Rehova is an historically producing mining operation which was formerly operated by the Albanian state copper enterprise. Prior to the start of production in 1980 the four deposits comprising the historical Rehova Copper Mine (located within the current Rehova Project of Tirex) had combined resources of 3.43 million tons grading 2.17% copper and by the time operations stopped in 1990 reported 2.87 million tons grading 2.14% copper remained. The majority of the remaining resources consisting of 2.09 million tons grading 2.15% copper are reported from one of the known deposits, Bregu i Geshtenjes ("B&G"), which has remained intact and is open for expansion. Underground development works had been started at B&G as the deposit was being prepared for mining when the state run mining enterprise shut down its mining operations country-wide at the time of the collapse of communism.
Tirex President, Mr. Fred Tejada, states "Under previous state run work programs at both Koshaj and Rehova, the focus was almost exclusively on the evaluation of copper mineralization. Tirex drilling in various areas in Albania including Koshaj has shown significant additional potential for gold, silver and zinc. Work that Tirex is targeting to do with Sinomine will continue to test for and evaluate the potential of these metals in addition to copper."
All of the above stated resources and grade estimates are historic in nature; were obtained from information provided by the Albanian government; are not the subject of an NI 43-101 compliant report; and have not been verified by Tirex. No qualified person has done sufficient work to classify the historical estimates as current mineral resources; and Tirex is not treating the historical estimates as current mineral resources. Tirex is including the historical estimates for information purposes only, and offers no assurances as to the reliability of the estimates. Tirex will need to undertake a comprehensive review of available data, and in all likelihood a drill program, to verify the historic estimates and classify them as current resources.
Mr. Fred Tejada, P.Geo., Tirex President, and a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical content of this news release.
On Behalf of Management,
Fred Tejada
President
Forward-Looking Statements. This Tirex News Release may contain certain "forward-looking" statements and information relating to Tirex. Such statements include but are not limited to statements about a possible business transaction with Sinomine. Often forward-looking statements or information include words such as "plans", expects", "intends", "anticipates", "estimates" "forecasts", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or will be taken occur or be achieved. Although forward-looking statements and information contained in this release are based on the beliefs of Tirex management, which we consider to be reasonable, as well as assumptions made by and information currently available to Tirex management, there is no assurance that the forward-looking statement or information will prove to be accurate. Specifically, there is no assurance Tirex will be able to negotiate a business transaction with Sinomine on terms acceptable to Tirex, or at all. The forward-looking statements and information contained in this release are subject to current risks, uncertainties and assumptions related to certain factors including, without limitations, obtaining all necessary approvals, feasibility of mine and plant development, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events as well as risks, uncertainties and other factors discussed in our quarterly and annual and interim management's discussion and analysis. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements and information may vary materially from those described herein. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. We undertake no obligation to update forward-looking statements or information except as required by law. All resource estimates quoted in this news release are historical, uncategorized and not NI 43-101 compliant and should not be relied upon. Tirex has not verified these historical resources and has not reviewed the assumptions, parameters and methods used to prepare the historical resource estimate. No Qualified Person has done sufficient work to classify the historical estimates as current and Tirex is not treating the historical estimates as current mineral resources or reserves but considers them as historically relevant and material information. A feasibility study has not been completed and there is no certainty the proposed operation will be economically viable.
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