Talon Metals Announces Results of Initial PEA and Follow-Up Exploration Plans at the Tamarack High Grade Nickel-Copper-Cobalt Project

Road Town, Tortola, British Virgin Islands–(Newsfile Corp. – November 12, 2018) – Talon Metals Corp. (TSX: TLO) (“Talon” or the “Company”) is pleased to announce that it has completed an initial Preliminary Economic Assessment (the Initial PEA“) over a subset of the mineral resource estimate within the Tamarack Zone (located at the Tamarack North Project, Minnesota, USA). The Company is also pleased to announce its plan to follow-up on nearby high-grade Ni-Cu-Co intercepts to determine the extent of mineralization that appears open in all directions. Talon currently has the right to acquire up to a 60% interest in the Tamarack Project on the satisfaction of certain terms and conditions.

We completed the Initial PEA as a basis for negotiating a right to acquire up to a 60% interest in the Tamarack Project, said Henri van Rooyen, CEO of Talon. High nickel grades, excellent metallurgical recoveries, exploration potential and good infrastructure are synonymous with the Tamarack North Project. In a world of ever decreasing nickel grades and deeper nickel mines, the Tamarack North Project Initial PEA demonstrates robust economics with pessimistic ($6.75/lb Ni), base case ($8/lb Ni) and incentive pricing ($9.50/lb Ni) after-tax Internal Rates of Return (“IRR”) of 28%, 39% and 48%, respectively.[1] We have also used this opportunity to conceptualize and model the adoption of Best Available Technologies to protect the environment and minimize any potential future mine footprint and impact. Furthermore, we have started a metallurgical test program to simplify the Initial PEA flowsheet with the additional objective of including the remaining mineral resource estimate in the next iteration of the mine plan. Most of all, we are excited about the potential for expanding the Massive Sulphide Unit (“MSU”) as outlined by Dr. Etienne Dinel below.”

Given these positive results, combined with the immediate exploration potential, we see tremendous value in our recently announced deal with Kennecott, a subsidiary of the Rio Tinto Group, whereby we negotiated the right to take over operatorship and increase our ownership position in the project to a majority stake,” said Sean Werger, President of Talon.

Dr. Etienne Dinel, VP Geology for Talon said the following: In working closely with Kennecott over the last four years, we have refined an effective combination of geological and geophysical methods, both surface and downhole, that have successfully been used to substantially increase the MSU resource at the Tamarack Project. These methods will be repeated outside of the Tamarack Zone to effectively design drill hole targets for intercepting MSU, which, if successful, will have a profound impact on any future mine plan. As is shown on the map in Figure 1 below:

  1. A high conductance Downhole Electromagnetic (“DHEM”) Maxwell plate at 587 m from surface, below the 138 Zone will be followed up to determine if a 300 m western flank of MSU exists to the west of the mineral resource estimate. This plate is supported by an MSU vein directly below, intercepted by drill hole 12TK0160 from 587.2 m to 597.4 m, grading 2.05% Ni, 3.10% Cu, 350 ppm Co, 0.66 g/t Pt, 0.43 g/t Pd and 0.29 g/t Au (Refer to Annex A and B);
  1. An approximately 340 m (1,115 ft) gap in MSU between two MSU intercepts from drill hole 08TK0062 and drill hole 08TK0068 (Refer to Annex A and B) remains to be drilled following the modelling of a DHEM conductor;
  1. At the Tamarack Zone and the 138 Zone, massive sulphide settling occurred along the Fine Grained Orthocumulate Olivine (“FGO”) keel that resembles the hull of a boat where massive sulphide settling may have occurred. We have approximately 1 km (0.6 miles) of the keel with two areas that display a similar widening of the keel (modelled from gravity and magnetic surveys as well as contouring using drill holes) where massive sulphide settling may have occurred. Drill hole 12TK0164 located approximately 900 m (2,950 ft) to the south of the 138 Zone intercepted MSU grading 3.67% Ni, 1.97% Cu, 814 ppm Co, 0.12 g/t Pt, 0.11 g/t Pd and 0.10 g/t Au from 473.43 m to 476.32 m in the flank of the FGO keel (Refer to Annex A and B);
  1. We have surface EM supported by drill intercepts of high grade Ni-Cu-Co mineralization over an 78,000 m2 (19 acre) area to the northeast of the Tamarack Zone between 90 m (295 feet) and 195 m (640 feet) from surface.

Figure 1 below illustrates the areas initially targeted for further exploration:

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Figure 1: Plan view of the Tamarack and 138 Zones as well as the 164 Zone
and the CGO Bend
targeted for further exploration

“Massive sulphides and mixed massive sulphides (“MMS”) have been intercepted in 95 drill holes over a distance of 8 km (5 miles), with the most northern drill hole in the 480 Zone (Tamarack North Project) and the most southern drill hole in the Neck (Tamarack South Project)refer to Figure 2 below. We plan to test surface geophysical techniques with deep penetration potential to evaluate the exploration potential outside of the Tamarack, 138 and 164 Zones as well as the CGO Bend.”

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Figure 2: Long Section (Looking West) of the Tamarack Intrusive Complex showing MSU and MMS intercepts as well as the approximate location of the Tamarack North resource estimate: Effective February 15, 2018, which is the first of nine initial exploration targets

“As the Initial PEA mine plan was developed using conservative long-term commodity prices[2] and metallurgical projections to calculate the Net Smelter Return (“NSR) cut-off, most of the inferred mineral resource estimate tonnage in the Semi-Massive Sulphide Unit (“SMSU”) and all of the tonnage in the 138 Zone have been excluded from this Initial PEA mine plan (refer to Figure 3 below). These conservative metallurgical projections were due to insufficient metallurgical data in the low-to-medium head grade range encountered in the inferred mineral resource. We have since commissioned a metallurgical test program to simplify the flowsheet and reagent regime and to evaluate samples from the inferred mineral resource. The simplified flowsheet will help to reduce the capital and operating costs for a given plant throughput and maximize the recovery of all sulphide minerals to minimize environmental liabilities. The objective of this metallurgical test program is to include most of the mineral resource estimate in the next iteration of the mine plan,” said Oliver Peters, Talon Metallurgist and President of MetPro Management Inc. who started work on the Tamarack Project in 2016.

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Figure 3: Long section (looking west) of the Initial PEA conceptual mine plan development
and stopes in relation to the
wireframes for resource domains

By potentially adding the portion of the mineral resource estimate that is currently excluded from the Initial PEA mine plan, we hope to increase the production rate, mine life and consequently the Net Present Value (“NPV”) of the Tamarack Project,” said Vince Conte, CFO of Talon. “This work, if successful, will result in the publishing of an updated PEA.”

Mineral Resource

On March 26, 2018, Talon published a technical report (the “March 2018 Technical Report”) that provided an updated independent mineral resource estimate (effective date of February 15, 2018), which was used as the basis of the Initial PEA.

Table 1: Tamarack North Resource Estimate: Effective February 15, 2018

Domain Resource
Classification
Tonnes
(000)
Ni
(%)
Cu
(%)
Co
(%)
Pt
(g/t)
Pd
(g/t)
Au
(g/t)
*Calc
NiEq (%)
SMSU Indicated Resource 3,639 1.83 0.99 0.05 0.42 0.26 0.2 2.45
Total Indicated Resource 3,639 1.83 0.99 0.05 0.42 0.26 0.2 2.45
SMSU Inferred Resource 1,107 0.90 0.55 0.03 0.22 0.14 0.12 1.25
MSU Inferred Resource 570 5.86 2.46 0.12 0.68 0.51 0.25 7.24
138 Zone Inferred Resource 2,705 0.95 0.74 0.03 0.23 0.13 0.16 1.38
Total Inferred Resource 4,382 1.58 0.92 0.04 0.29 0.18 0.16 2.11

 

All resources reported at a 0.83% NiEq cut-off.
No modifying factors have been applied to the estimates.
Tonnage estimates are rounded to the nearest 1,000 tonnes.
Metallurgical recovery factored in to the reporting cut-off.
* NiEq% = Ni%+ Cu% x $3.00/$8.00 + Co% x $12.00/$8.00 + Pt [g/t]/31.103 x $1,300/$8.00/22.04 + Pd [g/t]/31.103 x $700/$8.00/22.04 + Au [g/t]/31.103 x $1,200/$8.00/22.04.

Initial PEA Results

The basis of design of the Initial PEA, which was completed on a portion of the upper SMSU, the lower SMSU and the MSU are summarized in Table 2 below. The Initial PEA is preliminary in nature. The Initial PEA includes inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Initial PEA will be realized.

Table 2: Basis of Design: Initial PEA*

No Parameter Description
1 Approach and Mandate Implement Best Available Technologies to protect the environment while creating a catalyst for establishing long-term, sustainable industry
2 Mine Access Method 5 meter Diameter Shaft
3 Mine Methods Transverse Drift-and-Fill (MSU) and Transverse Open Stoping (SMSU)
4 Type of Metallurgical Process Bulk rougher and scavenger flotation followed by separate cleaning of the rougher and scavenger concentrates
5 Separation of Tailings Bulk scavenger tailings are treated in a desulphurization stage to produce a low-mass high sulphur stream and high-mass low sulphur tailings
6 Backfill Cemented paste backfill in a primary-secondary sequence utilizing all high sulphur and 37% of low sulphur tailings
7 Co-disposed Filtered Tailings Facility (“CFTF“) Filtered low sulphur tailings (at 80%-85% solids content) will be co-disposed with waste rock in a lined surface facility. The liner system of the facility will consist of a composite liner overlain by a drainage layer. Contact water from the facility will be collected using a perimeter ditch and conveyed to a water treatment plant. Upon closure, the CFTF will be encapsulated by a composite cover.
8 Life of Mine (“LOM”) Feed** SMSU Indicated: 1.706 mt at 2.48% Ni, 1.22% Cu, 0.06% Co, 0.37 g/t Pt, 0.25 g/t Pd, 0.18 g/t Au, 3.34%
NiEqSMSU Inferred: 0.175 mt at 2.50% Ni, 1.14% Cu, 0.06% Co, 0.30 g/t Pt, 0.22 g/t Pd, 0.14 g/t Au, 3.27% NiEq
MSU Inferred: 0.506 mt at 5.35% Ni, 2.23% Cu, 0.11% Co, 0.63 g/t Pt, 0.47 g/t Pd, 0.23 g/t Au, 6.88% NiEq
Total Inferred:
0.681mt at 4.62% Ni, 1.95% Cu, 0.10% Co, 0.54 g/t Pt, 0.40 g/t Pd, 0.21 g/t Au, 5.957 NiEq
9 Mine life (excluding construction period) 7 years (6.4 years excluding partial years)
10 Mill Treatment Capacity 1,390 tpd
11 Ni Recovery to Ni Concentrate 85.0 % Ni
12 Cu Recovery to Cu Concentrate 84.4 % Cu
13 Overall Cu Recovery 94.5 % Cu
14 Ni Concentrate Grades 14.5 % Ni, 0.8 % Cu, 0.38 % Co
15 Cu Concentrate Grades 28.9 % Cu, 2.23 g/t Au
16 Ni Concentrate Production 79.5 ktpa (dry)
17 Cu Concentrate Production 18.3 ktpa (dry)
18 Payable Ni Production 23.3 million lbs per year; 127.5 million lbs over LOM
19 Payable Cu Production 11.1 million lbs per year; 66.8 million lbs over LOM
20 Revenue split 80% Ni, 16% Cu, 4% Co
21 Existing Project Infrastructure Paved highway, grid power, railway line across site, port
22 Sustainable Development There may be the potential for a solar garden on top of CFTF to generate clean energy post-mining

 

* See Initial PEA for further details in respect of the above table

** Resources included in the Life of Mine Mill Feed were evaluated by calculating the NSR, using the following metal prices: $6.75/lb Ni, $2.75/lb Cu, $20/lb Co, $1,100/oz Pt, $800/oz Pd and $1,200/oz Au. Relevant functions were applied such as metal recovery curves, smelting and refining terms, transportation costs and State royalties. The calculated NSR was then compared to the operating cost per tonne to determine inclusion or exclusion of resource into the mine plan based on value addition or destruction. These costs are US$117/tonne for the SMSU and US$157/tonne for the MSU.

NiEq% = Ni%+ Cu% x $2.75/$6.75 + Co% x $20.00/$6.75 + Pt [g/t]/31.103 x $1,100/$6.75/22.04 + Pd [g/t]/31.103 x $800/$6.75/22.04 + Au [g/t]/31.103 x $1,200/$6.75/22.04.

Capital and Operating Costs

Capital costs for the Tamarack North Project were estimated by DRA Americas for the mine, process and surface facilities, and by Golder Associates Ltd. for the CFTF. All cost estimates have been forecast in US dollars using constant, second quarter 2018 dollars, (i.e. in “real” dollars), without provision for inflation or escalation, and are subject to change if new information is received or circumstances change.

The total estimated capital cost is US$182.51M (which includes an estimated US$10.0M mill salvage credit), of which US$174.31M is the initial cost required during the first 2 years and 7 months prior to the start of production. The amounts include indirect costs and amounts for contingency. Contingency varies by line item, averages 20% for the initial cost of the mine and 23.5% for the initial cost of the process and surface facilities, and totals US$29.38M.

Capital costs are detailed in the following table.

Table 3: Capital costs

U.S. dollars millions Initial capital
cost
Sustaining
capital cost
Total
Mine 72.44 21.38 93.83
Process and Surface Facilities 90.85 1.57 92.43
Sale of moveable equipment and mill at end of mine life (10.00) (10.00)
Closure costs 6.25 6.25
Working capital 11.01 (11.01)
Total* 174.31 8.20 182.51

 

* Totals may not add due to rounding

The average operating costs per tonne milled for the seven year mine life is US$118.23 per tonne milled and is detailed in the table that follows.

Table 4: Operating cost per tonne

Mining US$/tonne $63.94
Processing US$/tonne $18.87
Product handling US$/tonne $22.92
CFTF US$/tonne $2.50
General and administrative US$/tonne $10.00
Total US$/tonne $118.23

 

C1 cash costs are US$2.20 per lb of payable nickel. Capital intensity is $17,200 per annual tonne of payable nickel or approximately $13,700 per annual tonne of payable nickel equivalent (excluding the impact of ramp-up/partial years in the first and last year of the mine plan).

Economic Analysis

At base case metal prices, the Tamarack North Project has an after-tax NPV of US$210M using a discount rate of 7% and an after-tax IRR of 39%. Payback from start of construction is 1.9 years on a pre-tax basis and 2.1 years after-tax. All amounts are in U.S. dollars.

The Initial PEA illustrates a high after-tax IRR, low C1 cash costs, low capital intensity and a quick payback.

Metal prices used for the base case as well as for sensitivity cases are summarized in the tables that follow. Base case prices were based on analyst consensus long-term prices. “Low” was used to estimate a pessimistic scenario. Incentive pricing is based on the price required to incentivize new mines to meet the projected increased demand for battery metals such as nickel and cobalt during the next decade.

Table 5: Assumed Metal Prices

Unit Low Base case Incentive pricing
Ni US$/lb $6.75 $8.00 $9.50
Cu US$/lb $2.75 $3.00 $3.25
Co US$/lb $20.00 $30.00 $40.00
Pt US$/oz $1,100 $1,100 $1,100
Pd US$/oz $800 $800 $800
Au US$/oz $1,200 $1,200 $1,200

 

After-tax and pre-tax NPV and IRR, C1 cash cost per pound of payable nickel and payback period from start of production in years for each pricing scenario is summarized in the table that follows.

Table 6: After-tax and Pre-tax NPV in US$ Millions, After-tax and Pre-tax IRR, C1 Cash Costs and Payback Period Using Low, Base Case and Incentive Metal Price Assumptions

After-tax Pre-tax
Metal price scenario Metal price scenario
Low Base Incentive Low Base Incentive
Discount
rate
NPV 7% 130 210 287 163 261 354
NPV 8% 119 195 268 150 244 332
NPV 10% 98 168 234 127 212 292
IRR 27.9% 38.8% 48.3% 32.2% 44.6% 55.3%
C1 Cash Cost per lb of payable Ni $2.47 $2.20 $1.93 $2.47 $2.20 $1.93
Payback from start of production in years 2.6 2.1 1.8 2.5 1.9 1.6

 

The sensitivity of the base case after-tax NPV and after-tax IRR was tested assuming changes in metal prices, operating costs, grade and capital costs in a range of +/-30% around the base case as shown in the following two figures.

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Figure 4: Sensitivity of Base Case aftertax NPV to changes in metal prices,
grade,
operating costs and capital costs

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Figure 5: Sensitivity of Base Case Aftertax IRR to changes in metal prices,
grade,
operating costs and capital costs

Conclusions and Recommendations

The present mine plan is based on a subset of the mineral resource estimate within the Tamarack Zone as outlined in Table 2, which comprises a majority of the MSU, the lower SMSU and only a portion of the upper SMSU as further illustrated in Figure 3 above. The Initial PEA results are strong, yielding a 28% after-tax IRR using a nickel price of $6.75/lb and a copper price of $2.75/lb. The base case after-tax IRR of 39% ranks amongst the best globally. The incentive pricing after-tax IRR is 48%.

There are several short-term opportunities to increase the Tamarack North Project NPV and therefore the following are recommended:

  • Define a flowsheet and conditions capable of treating all of the MSU, SMSU, and 138 Zone mineralization while at the same time simplifying the present flowsheet;
  • Increase the MSU mineral resource by exploring the open MSU extensions in the Tamarack Zone, the CGO Bend and potential MSU mineralization in the 164 Zone through geophysical and drilling methods;
  • Use ore sorting to preconcentrate the MSU by separating sediment/MSU and CGO/MSU midlings;
  • Determine the optimal stope sizes in the SMSU;
  • Update the production schedule to maximize early cash flows while maintaining a consistent plant feed;
  • Consider the production of nickel and cobalt sulphates from sulphide concentrates in order to sell directly to battery manufacturers.

The Company intends to complete a pre-feasibility study once, among other things, the extent of the mineralization that will be accessed through, and processed by, the same surface infrastructure has been delineated.

The technical report referenced herein (the Initial PEA) will be filed on SEDAR (www.sedar.com) and on the Company’s website (www.talonmetals.com) within 45 days.

Quality Assurance, Quality Control and Qualified Persons

For the purposes of the Initial PEA and this press release, the Qualified Persons (“QP”), as such term is defined in NI 43-101 are as follows:

The mineral resource estimate contained in this news release was prepared by or under the supervision of Mr. Brian Thomas (P.Geo.), who is a geologist independent of Talon and an employee of Golder Associates Ltd. In addition, Mr. Thomas has reviewed the sampling, analytical and test data underlying such information and has visited the site and reviewed and verified the QA/QC procedures used by Kennecott Exploration Company at the Tamarack North Project and found them to be consistent with industry standards. In Golder’s opinion, the mineral resource estimate disclosed herein has been prepared in accordance with CIM best practice guidelines. For further detail please see the Technical Report entitled “Second Independent Technical Report on the Tamarack North Project – Tamarack, Minnesota”, dated March 26, 2018, authored by DRA, which is available under the Company’s issuer profile on SEDAR (www.sedar.com).

The mining method, including mine development, mine plan, mine capex and opex were developed by Mr. Daniel M. Gagnon, P. Eng., Sr. Mining Engineer and VP Mining and Geology for DRA Americas and is independent of the Company.

The overall Initial PEA was compiled (with inputs from other QPs as indicated) by Mr. Tim Fletcher, P. Eng., a Senior Project Manager with DRA Americas who is independent of the Company.

The economic analysis, including pre-tax and after-tax financial results and sensitivity analysis was completed Ms. Silvia Del Carpio, P.Eng, MBA, Financial Analyst for DRA Americas a who is independent of the Company.

The conceptual design of the CFTF was completed by Mr. Kebreab Habte, P.Eng., a Senior Geotechnical Engineer with Golder Associates Ltd. who is independent of the Company.

The requirements for the backfill paste recipe and underground distribution methodology were reviewed by Mr. Leslie Correia, Pr. Eng., Engineering Manager for Paterson & Cooke Canada Inc.

The QP who contributed to the identification of, and preliminary estimate of cost for, environmental permitting as affects the economic analysis presented in the Initial PEA referenced in this news release is Mr. Thomas Radue (P.E.), who is an engineer independent of Talon and an employee of Barr Engineering Co. Mr. Radue has visited the site and reviewed and verified the definition of additional baseline and detailed environmental study requirements used by Talon for the Tamarack North Project and found it to be consistent with industry standards.

About Talon

Talon is a TSX-listed company focused on the exploration and development of the Tamarack Nickel-Copper-Cobalt Project in Minnesota, USA (which comprises the Tamarack North Project and the Tamarack South Project). The Company has a well-qualified exploration and mine management team with extensive experience in project management.

For additional information on Talon, please visit the Company’s website at www.talonmetals.com or contact:

Sean Werger
President
Talon Metals Corp.
Tel: (416) 500-9891
Email: werger@talonmetals.com

Forward-Looking Statements

This news release contains certain “forward-looking statements”. All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Such forward-looking statements include, among other things, statements relating to the results of the Initial PEA with respect to estimates of mineral resource quantities, the mining method, the basis of design of the Initial PEA, capital and operating costs, NPV, IRR, payback, cash costs, prospective drill targets, objectives in respect of metallurgical testing, targets, goals, objectives and plans, including plans for follow-up exploration and metallurgical test work and the timing thereof, the impact of adding other remaining mineral resources to the mine plan, the intent to prepare a new PEA, as well as assumptions in respect of metal pricing.

Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: failure to establish estimated mineral resources, the grade, quality and recovery of mineral resources varying from estimates, the uncertainties involved in interpreting drilling results and other geological data, inaccurate geological and metallurgical assumptions, including with respect to the size, grade and recoverability of mineral reserves and resources, uncertainties relating to the financing needed to further explore and develop the properties or to put a mine into production and other factors including exploration, development and operating risks, uncertainties with economic estimates, capital and operating costs, mine plan and development issues.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

The mineral resource figures disclosed in this news release are estimates and no assurances can be given that the indicated levels of nickel, copper, cobalt, platinum, palladium and gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimates disclosed in this news release are accurate, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.

Annex A

Table A-1: Assay Results of Historical Drill Hole Intercepts Pertinent to the Explanation
of the
Exploration Potential in the 138 Zone and the 164 Zone

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Annex B

Table A-2: Collar Locations of Drill Hole Intercepts Listed in Table A-1

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[1] Refer to Tables 5 and 6 for commodity prices used and sensitivity analysis

[2] See Table 2 (specifically, the reference to **) for commodity prices used to calculate the NSR cut-off in the Initial PEA mine plan

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Bayhorse Silver Metallurgical Samples Assay 91.2 – 186.2 oz/t of Silver, Bayhorse Mine, Oregon, USA

Vancouver, British Columbia–(Newsfile Corp. – November 12, 2018) – Bayhorse Silver Inc, (TSXV: BHS) (The “Company” or “Bayhorse”) has received assay results from four metallurgical samples from its 100% controlled Bayhorse Silver Mine (the “Mine”), Oregon, USA.

Three 8 kg (17lb) metallurgical samples were taken from a homogenous 50 kg channel sample. From each 8kg sample, three 0.7 kg (1.5 lb) were taken and submitted for assay and the results were 175.3 oz/t Ag (5,452.42 g/t), 166.6 oz/t Ag (5,175.60 g/t), and 169.7 oz/t Ag (5,278.25 g/t) per ton respectively.

Two duplicates from the same sample group as well as a further sample from a separate channel sample were also submitted for assay. The two duplicate samples assayed 186.2 oz/t Ag (5791.47 g/t) and 147 oz/t Ag (4,572 g/t) respectively, while the third sample assayed 91.2 oz/t Ag (2,836.63 g/t)

The metallurgical grades sampled are considered “direct to smelter” grade and can be shipped to a smelter without further processing.

The full results are tabulated below.

Sample Ag oz/t Ag g/t Cu % Zn % Sb % Pb %
MS-1 175.3 5,452.42 11.2 4.92 5.13 0.48
MS-2 166.6 5,175.60 10.8 4.82 5.75 0.49
MS-3 169.7 5,278.25 11.3 4.82 5.9 0.51
CHK-1 186.2 5,791.47 10.5 4.64 5.86 0.32
CHK-2 147.0 4,572.00 10.1 4.85 5.65 0.53
SCS-1 91.2 2,836.63 6.7 2.80 3.84 0.73

 

Bayhorse CEO Graeme O’Neill comments: “High grade silver samples are consistently being taken from the various zones inside the Bayhorse Silver Mine, and they continue to confirm the high silver grades reported by the historic production records”. “We have developed the Bayhorse Silver Mine at a cost of $1.00 per inferred resource ounce.”

The metallurgical samples will be submitted immediately, along with the completed assay certificates, to three identified smelters, in order to establish confirmed pricing agreements for the proposed delivery of Bayhorse Silver concentrate.

The Bayhorse silver mineralization contains tetrahedrite-tennantite, as the main copper-silver mineral together with the other metallic minerals, such as chalcopyrite, sphalerite, galena and pyrite and these will be concentrated and upgraded into a dry concentrate through the use of the Steinert ore-sorter.

A sampling protocol has been instituted along with insertion of QAQC samples to monitor ongoing head grades of the material being bulk sampled and processed through the Ore-Sorter and gravity separation for the fines.

The samples reported above were ground to minus 80 mesh prior to submission to American Analytical Services Labs of Osburn, Idaho, for assaying. The analytical method used for the silver analysis consists of a 1 Assay Ton (AT) samples subjected to fire assay with gravimetric finish and ICP35 analysis

The samples were select channel samples across the mineralization in the newly named Goldilocks Zone at the recently opened westernmost workings inside the mine.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. Dr. Stewart Jackson, P.Geo., a Qualified Person and Consultant to the Company has prepared, supervised the preparation of, and approved the technical content of this press release.

On Behalf of the Board.

Graeme O’Neill, CEO
604-684-3394

Bayhorse Silver Inc., a junior exploration company, has earned 100% interest in the historic Bayhorse Silver Mine, Oregon, USA. The Company has an experienced management and technical team with extensive exploration and mining expertise.

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.

SilverCrest Announces Stock Option Grant

Vancouver, British¬†Columbia–(Newsfile Corp. – November 12, 2018) –  SilverCrest Metals Inc.(TSXV: SIL) (NYSE AmericanSILV) (“SilverCrest” or the “Company”) announces the grant of stock options under its Stock Option Plan to purchase an aggregate of 100,000 common shares of the Company at an exercise price of $3.41 per share for a five-year term expiring November 11, 2023. The stock options were granted to the Company’s newly appointed director, Hannes Portmann, and are subject to necessary regulatory approvals.

The stock options shall vest as to 25% of the Optioned Shares on each of February 11, 2019, May 11, 2019, August 11, 2019, and November 11, 2019.

ABOUT SILVERCREST METALS INC.

SilverCrest is a Canadian precious metals exploration company headquartered in Vancouver, BC, that is focused on new discoveries, value-added acquisitions and targeting production in Mexico’s historic precious metal districts. The Company’s current focus is on the high-grade, historic Las Chispas mining district in Sonora, Mexico. SilverCrest is the first company to successfully drill-test the historic Las Chispas Project resulting in numerous discoveries. The Company is led by a proven management team in all aspects of the precious metals mining sector, including taking projects through discovery, finance, on time and on budget construction, and production.

N. Eric Fier, CPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.

For Further Information:

SilverCrest Metals Inc.
Contact: Fred Cooper, Investor Relations
Telephone: +1 (604) 694-1730
Fax: +1 (604) 357-1313
Toll Free: 1-866-691-1730 (Canada & USA)
Email: info@silvercrestmetals.com
Website: www.silvercrestmetals.com
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1

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

IAMGOLD Hosts Analyst Tour of Rosebel Gold Mine

Toronto, Ontario–(Newsfile Corp. – November 12, 2018) – IAMGOLD Corporation (TSX: IMG) (“IAMGOLD” or the “Company”) announced that it is hosting an analyst tour of the Rosebel Gold Mine November 12, 2018. The presentation to be used during management’s briefing session on November 12th will be posted on its website at www.iamgold.com on the morning of November 12, 2018.

About IAMGOLD

IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities. IAMGOLD is in a strong financial position with extensive management and operational expertise.

For further information please contact:

Ken Chernin, VP Investor Relations, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (416) 388-6883

Laura Young, Director, Investor Relations, IAMGOLD Corporation
Tel: (416) 933-4952 Mobile: (416) 670-3815

Martin Dumont, Senior Analyst Investor Relations, IAMGOLD Corporation
Tel: (416) 933-5783 Mobile: (647) 967-9942

Toll-free: 1-888-464-9999 info@iamgold.com

Please note:

This entire news release may be accessed via fax, e-mail, IAMGOLD’s website at http://www.iamgold.com and through Newsfile’s website at www.newsfilecorp.com. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.

Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le http://www.iamgold.com/French/accueil/default.aspx.

IAMGOLD tiendra une visite d’analystes √† la mine Rosebel

Toronto, Ontario–(Newsfile Corp. – le 12 novembre 2018) - IAMGOLD Corporation (TSX: IMG) (« IAMGOLD » ou la « Société ») annonce qu’elle tiendra une visite d’analystes à la mine Rosebel le 12 novembre 2018. La présentation qui sera utilisée lors de la séance d’information de la direction le 12 novembre sera publiée sur le site Web au www.iamgold.com le matin du 12 novembre 2018.

Au sujet d’IAMGOLD

IAMGOLD (www.iamgold.com) est une société minière de rang intermédiaire possédant quatre mines d’or en exploitation situées sur trois continents. À sa solide base d’actifs stratégiques en Amérique du Nord, en Amérique du Sud et en Afrique de l’Ouest s’ajoutent des projets de mise en valeur et d’exploration. IAMGOLD évalue continuellement des occasions d’acquisition de croissance et est en bonne position pour assurer sa croissance grâce à une saine santé financière, combinée à une expertise de gestion et d’exploitation.

Pour de plus amples renseignements :

Ken Chernin, v.-p., Relations avec les investisseurs, IAMGOLD Corporation
Tél. : 416 360-4743 Cellulaire : 416 388-6883

Laura Young, directrice principale, Relations avec les investisseurs, IAMGOLD Corporation
Tél. : 416 933-4952 Cellulaire : 416 670-3815

Martin Dumont, analyste principal, Relations avec les investisseurs, IAMGOLD Corporation
Tél. : 416 933-5783 Cellulaire : 647 967-9942

Sans frais : 1 888 464-9999 info@iamgold.com

Veuillez noter :

Vous pouvez obtenir une copie de ce communiqué de presse par télécopieur, par courriel, sur le site Web d’IAMGOLD à http://www.iamgold.com et sur le site Web de Newsfile à www.newsfilecorp.com. Vous pouvez obtenir tous les documents importants d’IAMGOLD sur le site www.sedar.com ou www.sec.gov.

The English version of this press release is available at http://www.iamgold.com.

Bayhorse Files NI-43-101 Maiden 6.3 Million oz Silver Inferred Resource Report, Bayhorse Mine, Oregon, USA

Vancouver, British Columbia–(Newsfile Corp. – November 9, 2018) – Bayhorse Silver Inc, (TSXV: BHS) (The “Company” or “Bayhorse”) reports that it has filed on SEDAR a National Instrument 43-101 Technical Report (the “Report”) on a Maiden Inferred Mineral Resource for the 100% controlled Bayhorse Silver Mine, Oregon, USA.

Bayhorse Silver CEO Graeme O’Neill comments: “Filing of this report for the Bayhorse Silver Mine completes another step revealing the resource and exploration potential of this high grade silver mine. We have reached this point with an investment of only $1 per ounce of inferred silver resource, a testimony to the diligence of all personnel involved.”

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Dr Clay Conway, P Geol, Mr Levi Duncan, Bayhorse Operations Manager, M. Dufresne, P.Geo, Apex Geoscience
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The Report outlines the parameters used in the estimation of the maiden inferred mineral resource, that is comprised of 292,300 short tons at an average grade of 21.65 troy ounces per ton (opt) silver (Ag) at a cutoff of 7.5 opt Ag, for a total of 6,328,400 oz silver, dated September 24, 2018, as previously disclosed (BHS2018-30.)The Report was prepared by APEX Geoscience Ltd. and Dr. Gerry Ray, P.Geol.

The report is available on both SEDAR, and the Company website at Bayhorse Silver Technical Reports.

APEX Geoscience Ltd., used a silver cut-off grade of 7.5 opt Ag, based upon a conceptual overall mining and processing cost of $US100 per ton, a silver price of US$15/oz at US$/C$ Exchange rate of 0.7624/1.3117 and an assumed recovery of 90%.

Inferred mineral resources are not mineral reserves. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. There has been insufficient exploration to allow for the classification of the inferred resources tabulated as an indicated or measured mineral resource, however, it is expected that the majority of the inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.

There is no guarantee that any part of these mineral resources will be converted into a mineral reserve in the future. Estimates of mineral resources may be affected by environmental, permitting, legal, marketing or other relevant issues.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. Dr. Stewart Jackson, P.Geo., a Qualified Person and Consultant to the Company has prepared, supervised the preparation of, and approved the technical content of this press release.

On Behalf of the Board.

Graeme O’Neill, CEO
866-399-6539

Bayhorse Silver Inc., a junior exploration company, has earned 100% interest in the historic Bayhorse Silver Mine, Oregon, USA. The Company has an experienced management and technical team with extensive exploration and mining expertise.

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.

Batero Gold Reports Updated NI 43-101 Resource Estimate at La Cumbre Deposit

Vancouver, British Columbia–(Newsfile Corp. – November 9, 2018) – Batero Gold Corp. (TSXV: BAT) (“the Company”) is pleased to report the Company’s updated National Instrument 43-101 Measured, Indicated and Inferred mineral resource estimate for the La Cumbre Deposit within the Batero-Quinchia project located in Risaralda, Colombia (the “Project”). LINAMEC S.A.C. of Lima, Peru has prepared and authorized the release of this resource estimate.

Mineral Resource Estimate and Exploration Potential Highlights:

  • Measured Mineral Resources comprising 20.014 million tonnes grading 0.759 grams per tonne (g/t) gold, 1.837 g/t silver for a total of 488,336 ounces gold and 1.189 million ounces silver.
  • Indicated Mineral Resources comprising 4.838 million tonnes grading 0.546 grams per tonne (g/t) gold, 1.485 g/t silver for a total of 84,864 ounces gold, 232,970 ounces silver.
  • Inferred Mineral Resources comprising 8.914 million tonnes grading 0.628 g/t gold, 1.328 g/t silver for a total of 179,876 ounces gold and 462,592ounces silver.
  • LIMAMEC recognizes the presence of a potentially significant volume of near surface oxidized gold mineralization within the resource area that may be amenable to heap leaching. Initial metallurgical test work on oxide mineralization returned up to 92% gold recovery. Mineralization in the near surface oxide zone is outlined in Table 1-2 with a significant portion of the oxide mineralization reported in the measured category.

Please review Table 1-1, 1-2 and 1-3

“We are very pleased that we were able to establish a significant measured, indicated and inferred mineral resource estimate within the prolific Mid Cauca belt of Colombia as we have focused on the near surface oxide mineralization at the La Cumbre Deposit,” stated Gonzalo de Losada President and CEO Batero Gold Corporation. “Batero continues to work on the Environmental Impact Study (EIA) with Servicios Ambientales y Geográficos – SAG and has advanced the abiotic, biotic and socio-economic characterization of the La Cumbre – Oxide Zone project.”

The mineral resource estimate represents that portion of the deposit with a reasonable prospect for economic extraction at this time and are reported within a conceptual Whittle pit shell using the parameters defined by LINAMEC (see notes below Table 1-3).

Table 11
Total Mineral Resource Estimate for La Cumbre Deposit

Classification Tonnage Au g/t Au oz Ag g/t Ag oz
MEASURED 20,014,332 0.759 488,336 1.837 1,189,327
INDICATED 4,838,786 0.546 84,864 1.485 232,970
TOTAL M & I 24,853,118 0.717 573,200 1.768 1,422,297
INFERRED 8,914,657 0.628 179,876 1.328 462,592

 

Table 12
Mineral Resource Estimate for La Cumbre Deposit Oxide Zone

Classification Tonnage Au g/t Au oz Ag g/t Ag oz
MEASURED 14,434,475 0.780 362,114 1.893 878,612
INDICATED 2,633,937 0.553 46,804 1.522 128,901
TOTAL M & I 17,068,412 0.745 408,919 1.836 1,007,512
INFERRED 247,781 0.392 3,121 1.364 10,863

 

Table 13
Mineral Resource Estimates for La Cumbre Deposit Transitional Zone

Classification Tonnage Au g/t Au oz Ag g/t Ag oz
MEASURED 5,579,857 0.704 126,222 1.732 310,715
INDICATED 2,204,849 0.537 38,060 1.468 104,070
TOTAL M & I 7,784,706 0.656 164,282 1.657 414,785
INFERRED 8,666,875 0.634 176,755 1.621 451,729

 

Notes to accompany La Cumbre Mineral Resource tables

  1. Mineral Resources have an effective date of 12 September 2018. The Qualified Person for the estimate is Mr. Edgard Vilela, CP and MAusIMM.
  2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  3. Mineral Resources are reported within a conceptual Whittle pit that uses the following input parameters: Au price: US$1,200/troy oz and US$14.5/troy oz Ag, mining cost: US$1.95/t, process cost (including G&A): US$6.80/t processed, gold selling cost: US$38.00/troy oz and Over-all slope angle of 45°.
  4. Gold recovery in the oxide zone was fixed at 83%. Gold recovery in the transitional zone was fixed at 80%.
  5. Mineral Resources (Oxide) are reported using a 0.22 g/t Au cutoff grade.
  6. Mineral Resources (Transitional) are reported using a 0.23 Au g/t cutoff grade.
  7. Totals may not sum due to rounding as required by reporting guidelines.

The Mineral Resource estimate and other scientific and technical information contained in this news release were prepared by or under the supervision of Edgard A. Vilela Acosta, MAusIMM (CP), Independent Consultant with LINAMEC S.A.C. who is an independent “Qualified Person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The NI 43-101 technical report in respect of the resource estimate disclosed herein will be filed on SEDAR within 45 days of the date of this news release.

Roger Moss, Ph.D., P.Geo., a consultant at Batero Gold, and a qualified person as defined by National Instrument 43-101 and has reviewed the technical information provided in this news release.

Batero Gold Corp. will be presenting at the Colombia Gold Symposium, Medellin, Colombia November 13-14.

ON BEHALF OF THE BOARD OF BATERO GOLD CORP.

Gonzalo de Losada President and CEO Batero Gold Corporation

For further information please contact: Michael Mills
Tel: 604.568.6378 or
Email: info@baterogold.com

ABOUT BATERO GOLD

Batero Gold Corp. is a precious and base metals exploration and development Company focused on two primary objectives. The first of these objectives is the advancement of the La Cumbre oxide deposit. La Cumbre is located within the Company’s 100% owned Batero-Quinchia Gold Project, which sits within Colombia’s emerging and prolific Mid Cauca gold and copper belt. Batero is moving the La Cumbre oxide deposit towards the goal of making a production decision, once the appropriate level of study has been completed, and intends to first target the near and at surface higher grade oxidized gold mineralization at the deposit. Batero’s second objective is to pursue opportunities to acquire prospective high-grade, production focused mineral properties in Colombia and Latin America. In pursuing both these objectives, Batero plans to leverage its secure treasury position, strong regional relationships, experienced management team, and long- term financial partners. Shares of the Vancouver-based company trade on the TSX-Venture Exchange under the symbol “BAT”.

FORWARD LOOKING STATEMENTS

Certain of the statements and information in this press release constitute “forward-looking statements” or “forward-looking information”. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “believes”, “plans”, “estimates”, “intends”, “targets”, “goals”, “forecasts”, “objectives”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.

Forward-looking statements or information may relate to, among other things: developing the most efficient and cost-effective leach processing circuit for the Cumbre gold deposit; the timing and scope of expected diamond drilling; resource estimates; grades on the Batero-Quinchia project; scope of mineralization within the Batero-Quinchia project; receipt and/or timing of required permits and regulatory approvals; the sufficiency of the Company’s capital to finance the Company’s operations; and geological interpretations and potential mineral recovery processes.

Forward-looking statements and information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information.

The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and, other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information in the event that circumstances or management’s assumptions, beliefs, expectations or opinions should change, or there should occur or develop changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.

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

Figure 1: Auger Sampling Map at the La Cumbre Deposit with Anomalies

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Figure 2: La Cumbre Deposit – Location Map of Drillholes

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