VANCOUVER, Aug. 14, 2014 /CNW/ - Yellowhead Mining Inc.
("Yellowhead" or the "Company") (TSX: YMI) today announces the
results of the updated feasibility study ("Feasibility Study") for
its 100% owned Harper Creek Project ("Harper Creek" or the
"Project") located in the Thompson-Nicola region of south-central
British Columbia, Canada, together
with the results of operations for the six months ended
June 30, 2014.
The technical report that will be prepared in compliance with
National Instrument 43-101 ("NI 43-101"), which will be based on
the full Feasibility Study, will be filed on SEDAR at www.sedar.com
and on the Company's website at www.yellowheadmining.com, within 45
days of this release. The full condensed consolidated interim
financial statements and management discussion & analysis for
the second financial quarter ended June 30,
2014 are available on SEDAR at www.sedar.com and on the
Company's website at www.yellowheadmining.com.
CEO Remarks
"Yellowhead has spent the last year working on a series of
design improvements to both optimize the mine site footprint and
general arrangement of Harper Creek, but more importantly, to both
reduce and further mitigate the potential environmental impacts
resulting from the development of Harper Creek. Consideration
of the implications of design alternatives from an environmental
management perspective, was an integral part of this process" noted
Mr. Frank Wheatley, CEO of
Yellowhead.
"The completion of the updated Feasibility Study is a critical
milestone in the preparation of Yellowhead's application ("EA
Application") for an environmental assessment certificate for the
Project, which we are currently targeting submitting to the British
Columbia Environmental Assessment Office ("BC EAO") at the
beginning of the fourth quarter of 2014. We continue to take
a disciplined approach to the development of Harper Creek, and with
the Feasibility Study completed and reconfirming the value of
Harper Creek, our attention is now focused on the finalizing the
updated EA Application for Harper Creek" continued Mr.
Wheatley.
Highlights
(All amounts in US$ unless otherwise
specified)
Highlights of the Feasibility Study (on a 100% equity basis)
include:
- Proven and Probable mineral reserves of 716 million tonnes (Mt)
@ 0.26% Cu, 0.029 g/t Au and 1.2 g/t Ag representing a total of
approximately 4.077 billion pounds of contained copper
- Measured and Indicated mineral resources of 1,300 Mt @ 0.25%
Cu, 0.028 g/t Au and 1.2 g/t Ag, representing a total of
approximately 7.253 billion pounds of contained copper
- A 28 year mine life, a mill throughput rate of 70,000 tpd, and
a Life of Mine ("LOM") average annual copper concentrate production
of 231,000 dry metric tonnes
- Initial capital cost of approximately C$1 billion and LOM sustaining capital of
C$335.8 million
- C1 cash operating costs, net of precious metals credits, of
US$1.82/lb Cu
- Net present value8 ("NPV8") before tax of
US$684 million, and a NPV8
of US$355 million after tax assuming
metal prices of US$3.00/lb Cu,
US$1,250.00/oz Au and US$20.00/oz Ag
- Internal rate of return ("IRR") before tax of 16.8%, and an IRR
after tax of 13.4%, on a 100% equity basis
- Payback period of 5.4 years after tax, on a 100% equity
basis
Feasibility Study
The Feasibility Study was completed using engineering and
consulting firms experienced in the British Columbia mining industry, with
significant contributions to the report by the authors detailed
under "Qualified Persons". The estimates of capital and
operating costs presented in the Feasibility Study were prepared
with an accuracy range of +15%/-5%, and are current as of
March 2014.
Design Improvements
Since the last feasibility study of Harper Creek was completed
in March 2012 (the "2012 FS"), the
Project has undergone a series of design changes to both optimize
the mine site footprint and general arrangement of the Project, but
more particularly to both reduce and further mitigate the potential
environmental impacts resulting from the development of the
Project. These design changes include relocation and
reconfiguration of the waste rock stockpile, low-grade ore
stockpiles and overburden and topsoil stockpiles, as well as
modifications to management plans.
Mining and Production Profile
The Feasibility Study contemplates that Harper Creek will
operate at a mill throughput rate of 70,000 tpd, with a LOM strip
ratio of 0.76:1, for a mine life of 28 years based on proven and
probable mineral reserves of 716.2 Mt. Active mining
operations will continue for 24 years, during which low grade
material will be stockpiled. After active mining operations
cease in year 24, the low grade stockpiles will be processed during
years 24 to 28 of operations. Mining will be conventional
truck and shovel open pit methods, gyratory crushing, SAG-ball mill
grinding, followed by conventional flotation. LOM average
annual production of 231,000 dry metric tonnes of 25.5% copper
concentrate will be trucked from the Project site approximately
25km to Yellowhead's rail load-out facility in the town of
Vavenby, for rail shipment of
approximately 526km to the Port of Vancouver for shipment to smelters
overseas.
The first five years of operations will see increased ore grades
and lower operating costs, as near surface higher grade zones are
targeted and lower grade material is stockpiled for processing at
the end of the mine life. The average grade processed for the
first five (5) years is 0.31% Cu, compared to the LOM average of
0.26% Cu. Average cash operating costs for the first five
years will be US$1.66/lb, compared to
the LOM average of US$1.82/lb.
Key metrics of the processing facility are shown below:
Harper Creek
Development Plan
|
Years 1 to
5
|
Life of
Mine
|
Mine Life
|
28 Years
|
28 Years
|
Available mill operating
days per year
|
365 days
|
365 days
|
Strip Ratio
|
1.4:1
|
0.76:1
|
Production Rate
(average)
|
70,000 tpd
|
70,000 tpd
|
Average Process Recovery
(Cu)
|
90.6%
|
89.2%
|
Average Process Recovery
(Ag)
|
59.9%
|
55.8%
|
Average Process Recovery
(Au)
|
58.4%
|
57.7%
|
Average Annual Copper
Concentrate Production
|
276,000
dmt
|
231,000
dmt
|
Average Copper Concentrate
Grade
|
25.5%
|
25.5%
|
Total Copper
Produced
|
0.78 bn
lbs
|
3.64 bn
lbs
|
Total Gold
Produced
|
0.09 M ozs
|
0.37 M ozs
|
Total Silver
Produced
|
2.87 M ozs
|
15.6 M ozs
|
Mineral Resources Estimate
Ron Simpson of Geosim Services
Inc. prepared the following mineral resource estimate for Harper
Creek, effective as of March 30, 2014
and is a Qualified Person as defined in NI 43-101.
Measured and
Indicated Mineral Resources
|
Contained
Metal
|
|
tonnes
(000's)
|
% Cu
|
g/t Au
|
g/t Ag
|
Cu lbs
(M's)
|
Au ounces
(000's)
|
Ag ounces
(000's)
|
Measured
(M)
|
564,361
|
0.27
|
0.029
|
1.2
|
3,359
|
526
|
21,769
|
Indicated
(I)
|
735,877
|
0.24
|
0.027
|
1.2
|
3,894
|
639
|
28,385
|
Total M +
I
|
1,300,238
|
0.25
|
0.028
|
1.2
|
7,253
|
1,165
|
50,154
|
Inferred Mineral
Resources
|
|
|
|
|
tonnes
(000's)
|
% Cu
|
g/t Au
|
g/t Ag
|
|
|
|
Inferred
|
119,743
|
0.25
|
0.025
|
1.2
|
660
|
96
|
4,619
|
Notes:
- CIM definitions were followed for mineral resources and are
inclusive of Mineral Reserves.
- Mineral resources are estimated at a cut-off grade of 0.15% Cu,
which is considered consistent with other mineral deposits of
similar characteristics, scale and location.
- Mineral resources are amenable to open pit mining methods and
have been constrained using a Lerchs‐Grossman optimized pit.
- Mineral resources were estimated using a copper price of
US$3.50/lb Cu.
- Totals may not add due to rounding.
The mineral resources and reserves included drill and assay
information up to March 2014. A total of 90,778 metres of
drilling in 353 drill holes, comprise the data base for the mineral
resource and reserve estimates.
Mineral Reserves Estimate
John Nilsson of Nilsson Mine
Services Ltd. prepared the following mineral reserve estimate for
Harper Creek, effective as of March 30,
2014 and is a Qualified Person as defined in NI 43-101.
Proven and
Probable Mineral Reserves
|
Contained
Metal
|
|
tonnes
(000's)
|
% Cu
|
g/t Au
|
g/t Ag
|
Cu lbs
(M's)
|
Au ounces
(000's)
|
Ag ounces
(000's)
|
Proven
|
457,227
|
0.27
|
0.030
|
1.2
|
2,706
|
439
|
17,465
|
Probable
|
258,948
|
0.24
|
0.026
|
1.2
|
1,371
|
220
|
9,636
|
Proven +
Probable
|
716,175
|
0.26
|
0.029
|
1.2
|
4,077
|
659
|
27,101
|
Notes:
- CIM definitions were followed for mineral reserves.
- Mineral reserves were estimated at a cut-off grade of 0.14%
Cu.
- Mineral reserves were estimated using a copper price of
US$2.25/lb., a gold price of
US$1,250.00/oz and a silver price of
US$20.00/oz.
- Totals may not add due to rounding.
- The mineral reserve estimate may be materially affected by
environmental, permitting, legal, title, taxation, sociopolitical
and other relevant issues.
Capital Cost Estimate
Initial Capital Costs
Merit Consultants International Inc. estimated the initial
capital costs at C$1,025.8 million,
compared with C$838.9 million in the
2012 FS, representing an increase of approximately 22%. The
updated estimate of initial capital costs is based upon a foreign
exchange rate of C$1=US$0.90, an accuracy range of +15/-5%, and a
first quarter 2014 capital environment.
The updated estimate of initial and sustaining capital has
benefited from additional design and engineering work undertaken on
the Project since completion of the 2012 FS. Coupled with the
design improvements relating to environmental mitigation referred
to above, such additional work has resulted in a greater degree of
accuracy with respect to estimating mine equipment requirements,
material movement quantities, and the design of ancillary
facilities and power supply and distribution. General
escalation in prices of mine and process equipment since 2012 have
also been reflected in the updated capital cost estimates.
An estimate of BC provincial sales tax, and additional
reclamation bonding requirements, which were not included in the
2012 FS, have been included in the updated estimate. In
addition to those two items, the other major components of the
increase in the estimate of initial capital costs include:
- increased mine development and pre-stripping costs as a result
of longer haul profiles and consumable costs due to the design
changes from an environmental perspective;
- escalation in the cost of mining equipment and process
equipment;
- escalation in construction labour rates of approximately 9%,
reflecting the current state of the construction industry in BC;
and
- re-allocation of mining equipment from sustaining capital into
initial capital, to facilitate mining requirements in Year 1 of
operations.
Sustaining Capital
LOM sustaining capital, which is comprised mainly of mining and
mobile equipment replacement, ongoing tailings management facility
embankment construction, and estimated closure and reclamation cost
requirements, is estimated to be C$335.8
million, compared with C$318.0
million in the 2012 FS, representing an increase of
approximately 6%.
Initial capital costs and LOM sustaining capital estimates are
set forth below.
Harper Creek
Capital Costs
|
Initial /
Preproduction Capital
|
2014
FS
(C$millions)
|
2012
FS
(C$millions)
|
Difference
(%)
|
Mining &
Preproduction Development
|
298.0
|
209.2
|
42
|
|
Mine
Equipment
|
205.1
|
146.8
|
40
|
|
Mine Pre-Production
Stripping
|
92.9
|
62.4
|
49
|
Plant Site
Infrastructure
|
9.5
|
10.4
|
(9)
|
Site Services &
Utilities
|
13.4
|
9.6
|
40
|
Process
Facilities
|
279.6
|
257.6
|
9
|
|
Primary
Crushing
|
56.7
|
49.2
|
15
|
|
Grinding and
Classification
|
109.3
|
104.4
|
5
|
|
Flotation &
Regrind
|
53.1
|
48.7
|
9
|
|
Mill Building &
Common Services
|
60.5
|
55.3
|
9
|
Ancillaries
|
27.4
|
23.8
|
15
|
|
Truck
Shop
|
21.0
|
18.5
|
14
|
|
Warehouse,
Administrative Buildings, Assay Lab
|
6.4
|
5.3
|
21
|
Power Supply &
Distribution
|
47.7
|
40.1
|
19
|
|
Transmission
Line
|
4.3
|
4.8
|
(10)
|
|
Site Power
Distribution
|
43.3
|
35.4
|
22
|
Tailings Management
Facility & Water Reclaim
|
54.0
|
55.3
|
(2)
|
Total Direct
Costs:
|
729.5
|
606.0
|
20
|
EPCM Costs
|
56.7
|
53.9
|
5
|
Equipment and
Construction Camp
|
105.4
|
88.0
|
20
|
Owner's
Costs
|
25.6
|
14.6
|
75
|
Contingency
(10%)
|
90.7
|
76.4
|
19
|
Total Indirect
Costs:
|
278.4
|
232.9
|
20
|
BC Provincial Sales
Tax
|
10.0
|
-
|
-
|
Initial Reclamation
Bonding
|
7.9
|
-
|
-
|
TOTAL INITIAL
CAPITAL COST:
|
1,025.8
|
838.9
|
22
|
|
Sustaining
Capital
|
|
|
|
Operations (including
Working Capital)
|
298.0
|
313.2
|
(5)
|
Closure and
Reclamation Bonding2
|
37.8
|
4.8
|
688
|
Total Sustaining
Capital:
|
335.8
|
318.0
|
6
|
|
TOTAL PROJECT
COST:
|
1,361.5
|
1,156.9
|
18
|
Notes:
- Totals may not add due to rounding.
- Total reclamation bonding of US$104.5
million, less recaptured bonding of US$66.7 million.
Operating Cost Estimates
C1 cash operating costs are estimated at US$1.82/lb Cu, compared with US$1.39/lb Cu in the 2012 FS2,
representing an increase of approximately 31%. The updated
estimate of C1 cash operating costs is based upon a foreign
exchange rate of C$1=US$0.90 and an accuracy range of +15/-5%.
The updated estimate of C1 cash operating costs has also
benefited from the additional design and engineering work
undertaken on the Project since completion of the 2012 FS.
This work has also resulted in a greater degree of accuracy with
respect to estimating blasting requirements, hauling profiles,
manning levels and manning rates, as well as increased maintenance
and fuel requirements. In addition, updates to
transportation, treatment and refining charges, which fluctuate on
the basis of supply and demand and refining capacity, have also
been included in the updated estimate.
Major components of the increase in the estimate of C1 cash
operating costs initial capital costs include increased:
- tonnages and haul profiles for stockpiles and waste dumps
- manning levels and manning rates
- transportation, treatment and refining costs
- fuel consumption and power costs
The LOM C1 cash operating cost estimates are set forth
below.
Harper Creek
Operating Costs
|
Area
|
|
2014
FS
|
2012
FS
|
Difference
(%)
|
|
Mining1
|
C$/t
milled
|
3.75
|
3.02
|
24
|
Processing
|
C$/t
milled
|
3.65
|
3.12
|
17
|
General and
Administrative
|
C$/t
milled
|
0.44
|
0.38
|
16
|
Site
Services
|
C$/t
milled
|
0.35
|
0.28
|
25
|
Royalties
|
C$/t
milled
|
0.04
|
0.03
|
33
|
Total Site
Operating Costs:
|
C$/t
milled
|
8.22
|
6.83
|
20
|
On-Site Operating
Costs:
|
|
|
|
|
|
Mining
|
US$/lb
|
0.66
|
0.50
|
32
|
|
Processing
|
US$/lb
|
0.65
|
0.52
|
25
|
|
General and
Administrative
|
US$/lb
|
0.06
|
0.05
|
20
|
|
Site
Services
|
US$/lb
|
0.07
|
0.06
|
17
|
|
Royalties
|
US$/lb
|
0.01
|
0.00
|
-
|
Off-Site Operating
Costs:
|
|
|
|
|
|
Deductions
|
US$/lb
|
0.13
|
0.10
|
30
|
|
Transportation
|
US$/lb
|
0.20
|
0.17
|
18
|
|
Treatment and
Refining
|
US$/lb
|
0.23
|
0.17
|
35
|
|
By-Product Metal
Credits
|
US$/lb
|
(0.19)
|
(0.19)
|
-
|
Total C1 Cash
Operating Costs2,3:
|
US$/lb
|
1.82
|
1.39
|
31
|
Notes:
- Mining costs exclude pre-stripping, but include stockpile
re-handling.
- C1 cash operating costs, for purposes of the Feasibility Study,
include the costs of mining, milling and concentrating, onsite
administration and general expenses, property and production
royalties not related to revenues or profits, metal concentrate
treatment charges, and freight and marketing costs, less the net
value of the by-product credits. C1 cash operating costs is a
non-GAAP financial measure and does not have any standardized
meaning prescribed by IFRS and is therefore unlikely to be
comparable to similar measures presented by other issuers.
- The 2014 FS assumes an exchange rate of C$1=US$0.90, the
2012 FS assumed an exchange rate of C$1=US$0.86.
- Totals may not add due to rounding.
Project Economics
The financial analysis in the Feasibility Study utilized the
following assumptions.
Parameter
|
Inputs
|
General
Assumptions
|
|
|
Mine
Life
|
28 Years
|
|
Available mill
operating days per year
|
365 days
|
|
Production Rate
(average)
|
70,000 tpd
|
|
Average Process
Recovery (Cu)
|
89.2%
|
|
Average Process
Recovery (Ag)
|
55.8%
|
|
Average Process
Recovery (Au)
|
57.7%
|
|
LOM Average
Annual Copper Concentrate Production
|
231,000
dmt/yr
|
|
Concentrate
Grade
|
25.5%
|
|
Long Term
C$:US$ exchange rate
|
0.90
|
Market
Assumptions
|
|
|
Equity
Basis
|
100%
|
|
Discount
Rate
|
8%
|
|
Base Case LOM average
copper price
|
US$3.00
|
|
Base Case LOM
average gold price
|
US$1,250.00
|
|
Base Case LOM
average silver price
|
US$20.00
|
The Project economics on both a before tax and after tax basis,
and a 100% equity and a conservative levered basis, are set forth
below.
Project Economics
(US$)
|
100% Equity
Basis
|
Before
Tax
|
After
Tax
|
NPV8 ($millions)1
|
683.6
|
354.9
|
IRR (%)
|
16.8
|
13.4
|
Payback Period
(Years)
|
4.9
|
5.4
|
Notes:
- Eight (8%) percent discount rate.
- NPV has been calculated to Year -2, Q2 2016
Sensitivity Analysis
The project economics of Harper Creek are most sensitive to
copper price, as set forth below.
Sensitivity
Analysis (US$)
|
Parameter
|
Value
|
Before
Tax
|
After
Tax
|
|
NPV81
|
IRR
|
NPV81
|
IRR
|
|
($millions)
|
(%)
|
($millions)
|
(%)
|
|
Copper Price
($/lb)
|
+20%
|
$3.60
|
1,475.3
|
25.9
|
877.3
|
20.8
|
+10%
|
$3.30
|
1,079.5
|
21.5
|
617.3
|
17.2
|
Base Case
|
$3.00
|
683.6
|
16.8
|
354.9
|
13.4
|
-10%
|
$2.70
|
287.8
|
11.9
|
89.1
|
9.4
|
-20%
|
$2.40
|
(108.1)
|
6.4
|
(187.7)
|
4.9
|
Notes:
- Eight (8%) percent discount rate.
- NPV has been calculated to Year -2, Q2 2016
Permitting - Environmental Assessment
Yellowhead continues to update and revise the EA Application for
the Project and is targeting resubmitting the revised EA
Application to the BC EAO at the beginning of the fourth quarter of
2014. The updated EA Application will incorporate the design
improvements to the Project, reflected in the updated Feasibility
Study, to further mitigate the environmental impacts of the
development of the Project, as well as to address the deficiencies
raised by the BC EAO when the initial EA Application was submitted
in April 2013.
Yellowhead is also continuing its program of public consultation
with local First Nations, local communities and other stakeholders,
regarding any potential environmental and socio-economic impacts of
the development of Harper Creek and the Company's proposed
mitigation strategies.
Project Schedule
Yellowhead has designed a five year development program for
Harper Creek during the period from the beginning of 2014 through
2018. The initial two and a half years, from 2014 to
mid-2016, will be focused on permitting, including environmental
permitting and Mines Act (BC) permitting. The subsequent two
and a half years, from mid-2016 through 2018, will be focused on
construction of the Project, with a target of commencement of
commercial production during the second half of 2018. Also
included in this five year program is project financing for the
development of the Project, and the construction of an upgraded BC
Hydro transmission line in the North Thompson valley to provide
power to the Project for operations.
Second Quarter Results (Amounts are expressed in
thousands of Canadian dollars, except per-share amounts)
|
Three
months ended
June 30, 2014
|
Three
months ended
June 30, 2013
|
|
Six
months
ended
June 30, 2014
|
Six
months
ended
June 30, 2013
|
Administrative
expenses
|
$ 498
|
$ 789
|
|
$ 1,017
|
$ 1,774
|
Exploration and
evaluation expenses
|
1,454
|
447
|
|
2,372
|
2,403
|
Other
income
|
(15)
|
3
|
|
(36)
|
(126)
|
Net loss and
comprehensive loss for the period
|
1,937
|
1,239
|
|
3,353
|
4,050
|
Basic and diluted
loss per share for the period
|
$ 0.02
|
$ 0.02
|
|
$ 0.03
|
$ 0.06
|
Yellowhead has no revenue from operations. Results can
fluctuate significantly from period to period due to the level of
engineering and environmental study effort and resource
drilling.
Review of Quarterly Results (Three months ended June 30, 2014 ("Q2 2014") compared to the three
months ended June 30, 2013 ("Q2
2013")
The loss in Q2 2014 was $1.94M
compared to $1.24M in Q2 2013.
This increase in loss of $698K was
due to an increase in exploration and evaluation expenses of
$1.01M. This increase in
exploration and evaluation expenses was due mainly to the update of
both the feasibility study and the EA Application for the Harper
Creek Project. Environmental assessment costs increased from
$214K in Q2 2013 to $1,016K in Q2 2014 in support of activities
needed to support the re-submission of the EA Application.
Administration expenses were $498K in
Q2 2014 compared to $789K in Q2 2013.
At the end of 2013, the Company undertook a reduction in general
and administrative expenses, including staffing levels, and this
resulted in lower investor relations activities, lower professional
fees and lower wages and benefits, in Q2 2014 compared to Q2
2013.
Review of Annual Results (Six months ended June 30, 2014 ("YTD 2014") compared to the six
months ended June 30, 2013 ("YTD
2013")
The loss in YTD 2014 was $3.35M as
compared to $4.05M in YTD 2013.
This decrease in loss of $697K was
primarily due to a decrease in Administrative expenses of
$756K and a decrease in Exploration
and evaluation expenses of $31K. The decrease in Administrative
expenses was primarily due to lower professional fees, lower
investor relations and lower wages and benefits costs in YTD 2014
as compared to YTD 2013. In 2013 the Company incurred costs
related to various strategic initiatives of the Company and these
costs were not incurred in YTD 2014 as the Company undertook a
reduction in general and administrative expenses. The 2014
exploration and evaluation expenses related to the update of both
the feasibility study and the EA Application for the Harper Creek
Project and the YTD 2013 costs primarily related to the in-fill
drilling program.
Cash and Cash Equivalents
The Company had cash and cash equivalents of $7.08M as at June 30,
2014, as compared to cash and cash equivalents of
$10.00M as at December 31, 2013. As at June 30, 2014, the Company had working capital of
$6.43M, as compared to working
capital of $9.70M as at December 31, 2013.
The Company's focus going forward is continuing the development
of Harper Creek. Major activities include completing the
Environmental Assessment process, advancing the Mine Permitting
process and pursuing funding activities to increase its working
capital to fund the development of the Harper Creek. The
Company believes its current working capital is sufficient for the
next twelve months of general and administrative activities,
however, additional funding will be required by the Company to
complete its strategic objectives and to continue as a going
concern.
Risk Factors
The development of the Project is subject to a number of risk
factors, including but not limited to, government laws and
regulations, including environmental and mining laws and
regulations, permitting requirements, availability of project
financing, commodity prices, and consultation with and
accommodation of First Nations by the Federal and Provincial
Governments. For a detailed discussion of the risk factors
associated with the Company and the Project, please consult the
risk factors section of the Company's most recent Annual
Information Form filed on SEDAR at www.sedar.com.
About Yellowhead Mining Inc.
Yellowhead Mining Inc. is a development stage company with a
100% interest in the Harper Creek copper project located in the
North Thompson - Nicola region of
British Columbia, Canada.
The proposed Harper Creek mine will be a large scale, long life,
low cost open pit copper mine, has a NI 43-101 compliant
feasibility study, and is currently in the environmental permitting
phase of development.
For more information on Yellowhead and the Harper Creek Project,
please visit Yellowhead's website at www.yellowheadmining.com.
Qualified Persons
The following qualified persons (QPs) have reviewed and approved
the technical content of this news release and will be responsible
for the preparation of their relevant portion of the Technical
Report:
Jay Collins, P.Eng., Merit
Consultants International Inc.
Mark Dobbs, P.Eng., Allnorth
Consultants Limited
Ronald Simpson, P.Geo., GeoSim
Services Inc.
Daniel Fontaine, P.Eng., Knight
Piésold Ltd.
John Fox, P.Eng., Laurion Consulting
Inc.
John Nilsson, P.Eng., Nilsson Mine
Services Ltd.
Cautionary Note Regarding Forward Looking Statements
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, including, among others, the accuracy of mineral grades
and related assumptions, inherent operating risks, planned
expenditures, proposed exploration and development at the Harper
Creek Project, operating and economic aspects of the Harper Creek
Project, as well as those risk factors identified in the Company's
Annual Information Form filed under the Company's SEDAR profile.
Yellowhead undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements. More
detailed information about potential factors that could affect
projected results is included in the documents filed from time to
time with the Canadian securities regulatory authorities by
Yellowhead.
Cautionary Note Regarding Technical Information
This news release includes disclosure of scientific and
technical information, as well as information in relation to the
calculation of mineral resources and reserves, with respect to the
Harper Creek Project. Yellowhead's disclosure of mineral resource
and reserve information is governed by National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI 43-101") under
the guidelines set out in the Canadian Institute of Mining,
Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources
and Mineral Reserves, adopted by the CIM Council, as may be amended
from time to time by the CIM ("CIM Standards"). There can be no
assurance that mineral resources will ultimately be converted into
mineral reserves. Mineral resources are not mineral reserves and do
not have demonstrated economic viability. This news release uses
the terms "measured", "indicated" and "inferred" resources. U.S.
persons are advised that while such terms are recognized and
required by Canadian regulations, the U.S. Securities and Exchange
Commission does not recognize them. "Inferred Resources" have a
great amount of uncertainty as to their existence and as to their
economic and legal feasibility. It cannot be assumed that all or
any part of an inferred resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred resources may
not form the basis of feasibility or other economic studies. U.S.
persons are cautioned not to assume that all or any part of
measured or indicated resources will ever be converted into
reserves. U.S. persons are also cautioned not to assume that all or
any part of an inferred mineral resource exists, or is economically
or legally mineable.
Non – GAAP Measures
C1 cash operating costs, for purposes of the Feasibility Study,
include the costs of mining, milling and concentrating, onsite
administration and general expenses, property and production
royalties not related to revenues or profits, metal concentrate
treatment charges, and freight and marketing costs, less the net
value of the by-product credits. C1 cash operating costs is a
non-GAAP financial measure and does not have any standardized
meaning prescribed by IFRS and is therefore unlikely to be
comparable to similar measures presented by other issuers.
SOURCE Yellowhead Mining Inc.