Vancouver, B.C.: CMC Metals Ltd. (the 'Company') is pleased to announce that the Company and Pruett-Ballarat Inc. ('PBI'), the mine operator and the Company's joint venture partner at the Radcliff Mine Property, have together and on behalf of their joint venture ('the JV') signed an agreement for toll milling of gold ore with Klondex Mines Operations Inc. ('Klondex'). The renewable Agreement for Purchase and Sale of Gold Ore allows for Klondex to process up to 6,000 short tons ('tons') of oxide dominated gold bearing rock delivered by December 1st, 2016, in batches of 1,500 tons, at their Ore Processing Mill at Midas mine, situated in Elko County, Nevada: the agreement allows for an initial smaller 'test batch' of Radcliff mineralized rock to be treated (approximately 500 tons).
Under the terms of the agreement, the JV is responsible for haulage of qualifying mineralized material to a 'designated Midas ore pad'. Qualifying material must meet certain minimum grade (> 0.3oz / ton) and certain unwanted element maximum concentrations (up to 50 ppm mercury, 1% arsenic and 0.25% copper). The JV will be paid using a formula that compensates for moisture and recovery, and is subject to a processing charge per ton. The Agreement is attractive to the JV as it will allow for the processing of certain suitable 'oxide' mineralized materials that occur at, or have already been mined from, the Radcliff mine (located in the west-central portion of the Panamint Range, Inyo County, near Ballarat, CA). The JV anticipates that the majority of mined materials will be processed at the Company's gold mill located in Bishop, California: the Bishop Mill is being prepared for recommissioning in Q1, 2017. The Agreement with Klondex provides optionality and access to a processing facility in the immediate term.
Since the NR dated July 27, 2016, PRI has completed its MSHA training and certification of miners, and has also passed recent unscheduled MSHA site audits that took place at the Radcliff mine subsequent to filing of an updated Alternative Small and Remote Mine Rescue Plan, Escape and Evacuation Plan and a Ventilation Plan and renewal of national mine operating permits.
The ongoing mine development continues its the 5510-level drift into mineralized material: despite stoppages for audits, some 160 tons of anticipated mineralized material has been delivered to the Claire camp holding stockpile: material sampling was undertaken at the newly commissioned mine-portal run-of-mine sampling station (refer NR of July 27, 2016), which was installed subsequent to earlier technical disclosure (refer NR of January 21, 2015).
The Company's business plan is to selectively mine 'high grade' portions of an indicated resource at Radcliff, with anticipated run-of-mine grade to be calibrated by sampling of faces prior to blasting, and sub-sampling of mined material at the run-of-mine sub-sampling plant located at the 5510-level portal.
The presence of 'high grade material' at Radcliff is documented in the NI43-101 compliant technical report filed on SEDAR. The mineral resources as stated January 9, 2013, remain current mineral resources.
In parallel with the work at the Radcliff Mine, the Company has planned and updated its work budget to allow re-start of operations at its 100% owned Bishop Mill. The Company has finalized a vadose zone monitoring solution for the constructed tailings impoundment satisfactory for the regulator at the California EPA, Regional Water Quality Control Board, Lahontan Region: contracting and scheduling of the work to be undertaken is in process. The supplier of a bird-netting solution has delivered a net to the Bishop Mill facility, and the Company continues to finalize preparations for installation of the wildlife protection requirements for the tailings facility. The plant team will re-staff in September and October. The mill team continues its review of technologies to allow the 'dry' capture and stacking of tailings.
CEO Jack Bal commented: 'The Agreement with Klondex continues our steady progress in California, and provides optionality for the JV at Radcliff: we continue to move forward with the mill recommissioning at Bishop, and the company is beginning to seek additional sources of potential mill feed in the region.'
On behalf of the Board:
'Jack Bal'
Jack Bal, CEO
CMC METALS LTD.
For further information on the Company, please contact Mr. Jack Bal, CEO, Telephone: 604-306-5285 [email protected].
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
'This news release includes certain statements that constitute 'forward-looking information' within the meaning of applicable securities law, including without limitation, statements that address the timing and content of upcoming work programs, geological interpretations, receipt of property titles and exploitation activities and developments. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks, including the ability of the Company to raise the funds necessary to fund its projects and, accordingly, may not occur as described herein or at all. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Readers are referred to the Company's filings with the Canadian securities regulators for information on these and other risk factors, available at www.sedar.com. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.'