Karmin Exploration Inc. (“Karmin”) (TSXV and the Lima
Stock Exchange: KAR) is pleased to report that Votorantim Metais
(“Votorantim”) has announced a preliminary development
schedule for Karmin’s 30% owned Aripuanã Zinc Project
(“Aripuanã”) which has estimated measured and indicated
mineral resources of 19.1 million tonnes plus inferred
mineral resources of 14.7 million tonnes as disclosed in
Karmin’s press release dated February 21, 2013.
Votorantim, 70% owner and operator of Aripuanã, has also
announced the ongoing internal pre-feasibility study of Aripuanã
will be completed in the second quarter of 2013. The
pre-feasibility study is studying the possible development of a
mine producing 1.2 million tonnes of ore per year (3,300 tonnes per
day) starting in 2016. If developed, it is expected that the
processing plant would produce 60,000 tonnes per year of zinc in
concentrate, 20,000 tonnes per year of lead in concentrate and
6,000 tonnes per year of copper in concentrate. Votorantim has
indicated that the current estimate of capital costs are in the
order of $250 million. The commencement of an internal feasibility
study on Aripuanã is proposed for the second half of 2013 to
further evaluate the development of Aripuanã with completion of the
feasibility study by the end of 2014.
Subject to the outcome of the feasibility study, it is currently
expected that construction at Aripuanã could start early in 2015
with completion projected 18 months later in 2016.
Karmin has a 30% carried interest in Aripuanã and is not
required to contribute to the project costs until 12 months after
the completion of a bankable feasibility study. Since 2004 over
US$35 million has been spent on the evaluation of Aripuanã by
Votorantim.
Various government agencies in Brazil have announced a
comprehensive highway construction program, costing approximately
$750 million, for paving many of the roads in the State of Mato
Grosso where Aripuanã is located. This highway construction program
will include a state highway to the town of Aripuanã and the
building of a modern bridge over the Aripuanã River giving
excellent road access directly to the Aripuanã Zinc Project. A
newly constructed 261 MW hydro electric facility located 20
kilometres from the Aripuanã Zinc Project provides abundant
electrical power to the area.
David Brace, Karmin’s CEO stated, “Votorantim is progressing
very rapidly on the evaluation of the Aripuanã Zinc Project and
combined with the paving of the roads to Aripuanã we are very
optimistic that Aripuanã will be developed to replace the zinc
production that will be lost due to mine closures over the coming
years."
About Karmin
The common shares of Karmin are listed on the TSX Venture
Exchange and the Lima Stock Exchange and trade in both markets
under the symbol “KAR”. The principal business of Karmin is to
acquire, explore and develop resource properties.
Karmin owns 30% of the Aripuanã Zinc Project, one of the ten
largest undeveloped zinc projects in the world. The Aripuanã Zinc
Project covers an 820 square kilometre mineralized massive-sulphide
district that includes five areas of mineralization (Ambrex, Arex,
Babacu, Massaranduba and Mocoto) over a 25-kilometre strike length.
Votorantim owns 70% of the Aripuanã zinc project, but is
responsible for 100% of the project costs until the completion of a
bankable feasibility study.
Karmin owns 100% of the Aripuanã Gold Project, which encompasses
the gold and silver mineralization associated with near-surface
oxidized portions of numerous massive-sulphide deposits in the
820-square-kilometre Aripuanã Zinc Project in north western
Brazil.
Karmin owns 100% of the 25-square-kilometre Cushuro Gold Project
located in the world-class Alto Chicama gold-mining district of
northern Peru.
Disclaimer Relating to Forward-Looking
Information
This news release contains forward-looking statements that are
based on the belief of management and reflect Karmin’s current
expectations. Forward-looking statements include, but are not
limited to, possible events and statements. The words “potential,”
“possible,” “expects,” “plans,” “scheduled,” “estimates,”
“anticipates” or “believes,” or variations of such words and
phrases or statements that certain actions, events or results
“may,” “could,” “would,” “might,” or “will” be taken or occur, and
similar expressions identify forward-looking statements. The
forward-looking statements and information in this press release
include, but are not limited to the mineral resource estimates, the
timing and completion of the pre-feasibility study and the business
plans of Karmin. Such statements and information reflect the
current view of Karmin with respect to risks and uncertainties that
may cause actual results to differ materially from those
contemplated in those forward-looking statements and
information.
Such statements are not historical facts. Readers are cautioned
not to place undue reliance on forward-looking statements, as there
can be no assurance that the plans, intentions or expectations upon
which they are based will occur. By their nature, forward-looking
statements involve numerous assumptions, known and unknown risks
and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections in the
forward-looking statements will not occur, and that actual
performance and results in future periods may differ materially
from any estimates or projections of future performance or results
expressed or implied by such forward-looking statements.
The Aripuanã Zinc Project and the land it relates to is an
exploration property only. Accordingly, there are a number of
important factors that could cause Karmin’s actual results to
differ materially from those indicated or implied by
forward-looking statements and information. Such factors relating
to the Aripuanã Zinc Project include, among others, the timing and
content of work programs, results of the development of mineral
properties, the interpretation of drilling results and other
geological data, the uncertainties of resource and reserve
estimates, receipt and security of mineral property titles, receipt
of licenses to conduct mining activities, project cost overruns or
unanticipated costs and expenses, fluctuations in metal prices and
general market and industry conditions, changes in national and
local government legislation, taxation, controls, policies and
regulations, the security of personnel and assets, and political or
economic developments in Canada and Brazil, operating or technical
difficulties in connection with mining or development activities,
employee relations, the speculative nature of mineral exploration
and development and the risks and hazards associated with the
business of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins and flooding.
The forward-looking statements contained in this news release
are made as of the date of this news release. Readers should not
place undue importance on forward-looking information and should
not rely upon this information as of any other date. Except as
required by law, Karmin disclaims any intention and assumes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Additionally, Karmin undertakes no obligation to comment on the
expectations of, or statements made by, third parties in respect of
the matters discussed above.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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