VANCOUVER, March 8, 2018 /CNW/ - Leagold Mining Corporation
(TSX:LMC; OTCQX:LMCNF) ("Leagold" or the "Company") has filed a NI
43-101 technical report on SEDAR entitled "Technical Report for the
Los Filos Gold Mine, Guerrero State,
Mexico" dated March 7, 2018 and having an effective date of
December 31, 2017 (the "Los Filos
Technical Report").
As of December 31, 2017, Leagold's
Proven and Probable mineral reserves ("P&P reserves") totaled
2.7 million ounces ("Moz") of gold (see Table 1), a 59% increase
over the previous year. With estimated depletion from mining
of 0.3 Moz during 2017, the estimated total addition to Proven and
Probable reserves was 1.3 Moz during 2017.
Neil Woodyer, CEO, stated "We are
extremely pleased with the 59% increase in P&P reserves at Los
Filos, which reflects the success of our 2017 programs focused on
extending mine life. Furthermore, this growth we are
reporting today excludes any additional contribution from the
Bermejal Underground expansion project, which has M&I resources
of 2.1 Moz of gold (see Table 3) at a grade of 5.96 g/t, as
reported as of December 31,
2017. The Bermejal Underground expansion is currently in the
mine design phase in preparation for declaration of reserves in
mid-2018. With the exploration success during 2017 and the
reassessment of Los Filos' long-term potential, studies are
underway to evaluate building a carbon-in-leach processing plant,
enabling higher recoveries for a wider range of ore types."
The Los Filos Technical Report filed today focuses on the
current Los Filos operations and excludes the additional
contribution from the Bermejal Underground expansion project, which
can only be reported as a mineral resource at this time until
feasibility level studies are completed. A new site-wide
technical report is expected in mid-2018 that will incorporate the
Bermejal Underground expansion project within a site-wide
production plan for Los Filos.
Table 1. Los Filos Mine Mineral Reserve Statement (Effective
Date of December 31, 2017)
Classification
|
Tonnes
(kt)
|
Au Grade
(g/t)
|
Au Contained
Ounces (koz)
|
Ag Grade
(g/t)
|
Ag Contained
Ounces (koz)
|
Proven
|
14,440
|
0.97
|
449
|
3.38
|
1,568
|
Probable
|
47,004
|
1.36
|
2,050
|
13.19
|
19,935
|
Subtotal Proven
and Probable
|
61,444
|
1.26
|
2,499
|
10.88
|
21,503
|
Probable Leach Pad
Inventory
|
|
216
|
|
Total Proven and
Probable
|
|
2,715
|
|
Notes:
|
1.
|
Mineral Reserves are
based on Measured and Indicated Mineral Resources.
|
2.
|
Metal price
assumption for gold was US$1,200/oz.
|
3.
|
Tonnage and grade
measurements are in metric units. Contained gold and silver ounces
are reported as troy ounces.
|
4.
|
Summation errors may
be present due to rounding.
|
5.
|
The detailed Mineral
Resource and Mineral Reserve Tables and the accompanying notes are
provided in an appendix to this news release.
|
As detailed in Table 1 and as of December
31, 2017, Leagold's P&P open pit and underground mineral
reserves totaled 61.4 Mt at an average grade of 1.26 g/t containing
2.5 Moz of gold plus a Probable heap leach reserve of 216 koz
recoverable ounces (net of 2017 depletion and additions) for a
total of 2.7 Moz of gold.
Mineral resources were added at both the Bermejal Underground
and Guadalupe areas, however more restrictive mineral resource
classification was applied which resulted in movement of some
mineral resources to the Inferred category; this is illustrated in
Figure 2, which shows that the contained gold in Leagold's Measured
and Indicated mineral resource categories remained similar to the
previous year, but the contained gold in the Inferred mineral
resource category increased by 1.7 Moz.
Table 2. Los Filos Mine Mineral Resource Statement (Effective
Date of December 31, 2017)
Class
|
Tonnes
(kt)
|
Gold grade
(g/t)
|
Gold ounces
(koz)
|
Silver grade
(g/t)
|
Silver ounces
(koz)
|
Measured
|
59,119
|
0.90
|
1,709
|
4.19
|
7,971
|
Indicated
|
321,482
|
0.94
|
9,751
|
10.23
|
105,714
|
Measured &
Indicated
|
380,602
|
0.94
|
11,459
|
9.29
|
113,684
|
Inferred
|
240,469
|
0.74
|
5,739
|
10.23
|
79,056
|
Notes:
|
1.
|
Mineral resources are
inclusive of mineral reserves and do not include
dilution.
|
2.
|
Metal price
assumption for gold was US$1,400/oz.
|
3.
|
Tonnage and grade
measurements are in metric units. Contained gold and silver ounces
are reported as troy ounces.
|
4.
|
Summation errors may
be present due to rounding.
|
5.
|
The detailed Mineral
Resource and Mineral Reserve Tables and the accompanying notes are
provided in an appendix to this news release.
|
The update of the Bermejal Underground mineral resource estimate
to the end of 2017 is provided in Table 3 and reflects the
additional infill holes that were completed at the end of the
drilling program. Mine design and engineering is ongoing
using this mineral resource estimate.
Table 3. Mineral Resource for the Bermejal Underground
Deposit (below current open pit mine design, Effective Date of
December 31, 2017)
Class
|
Tonnes
(kt)
|
Gold grade
(g/t)
|
Gold ounces
(koz)
|
Silver grade
(g/t)
|
Silver ounces
(koz)
|
Measured
|
429
|
7.50
|
103
|
27.27
|
376
|
Indicated
|
10,384
|
5.90
|
1,969
|
19.28
|
6,437
|
Measured &
Indicated
|
10,812
|
5.96
|
2,073
|
19.60
|
6,812
|
Inferred
|
3,643
|
4.65
|
545
|
16.36
|
1,916
|
Notes:
|
1.
|
Mineral resources are
inclusive of mineral reserves and do not include
dilution.
|
2.
|
Metal price
assumption for gold was US$1,400/oz.
|
3.
|
Tonnage and grade
measurements are in metric units. Contained gold and silver ounces
are reported as troy ounces.
|
4.
|
Summation errors may
be present due to rounding.
|
5.
|
This is the Bermejal
Underground Deposit that is entirely below the current Mineral
Reserves open pit.
|
6.
|
The detailed Mineral
Resource and Mineral Reserve Tables and the accompanying notes are
provided in an appendix to this news release.
|
Qualified Persons
The year-end mineral reserves and mineral resources are derived
from Los Filos Technical Report that was prepared under National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101"). The Los Filos Technical Report
was prepared for Leagold by Doug
Reddy (Leagold, SVP Technical Services), Rodolfo Balderrama Neder (Administración Los
Filos, S.A.P.I de C.V., a wholly-owned subsidiary of the Company,
Mine Operations Manager), Paul
Sterling (Consultant to Leagold) and Dr. Gilles Arseneau (Associate Consultant with SRK
Consulting (Canada) Inc., and
independent of the Company), each of whom is a Qualified Person as
that term is defined in NI 43-101. The authors of the Los Filos
Technical Report prepared or supervised the preparation of the
technical information upon which this news release is based. Each
of the authors have reviewed and approved the technical contents of
this news release.
The Los Filos Technical Report has been filed with the
securities regulatory authorities in each of the Provinces and
Territories of Canada, other than
Québec, and can be found under the Company's profile on SEDAR at
www.sedar.com.
About Leagold Mining Corporation
Leagold is building a new mid-tier gold producer with a focus on
opportunities in Latin America.
Leagold is based in Vancouver,
Canada and is listed on the TSX under the trading symbol
"LMC" and trades on the OTCQX market as "LMCNF". The 2017
acquisition of the Los Filos Mine, a low-cost gold producer in
Mexico, provides an excellent
platform for growth. For more information on Leagold please visit
the Company website at www.leagold.com or contact:
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release contains "forward looking information" or
"forward looking statements" within the meaning of applicable
securities legislation. Forward-looking information and forward
looking statements include, but are not limited to, statements with
respect to the underground expansion project, declaration of
reserves in mid-2018, possibility of a carbon-in-leach processing
plant, potential for higher recoveries, and completion of a
site-wide technical report. Generally, these forward looking
information and forward looking statements can be identified by the
use of forward looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", "will continue" or "believes", or variations of such
words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Statements concerning mineral resource estimates may
also be deemed to constitute forward looking information to the
extent that they involve estimates of the mineralization that will
be encountered. The material factors or assumptions used to develop
forward looking information or statements are disclosed throughout
this document.
Forward looking information and forward looking statements,
while based on management's best estimates and assumptions, are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Leagold to be materially different from those
expressed or implied by such forward-looking information or forward
looking statements, including but not limited to: risks related to
international operations; risks related to general economic
conditions and credit availability, actual results of current
exploration activities, unanticipated reclamation expenses; changes
in project parameters as plans continue to be refined; fluctuations
in prices of metals including gold; fluctuations in foreign
currency exchange rates, increases in market prices of mining
consumables, possible variations in mineral reserves, grade or
recovery rates; failure of plant, equipment or processes to operate
as anticipated; accidents, labour disputes, title disputes, claims
and limitations on insurance coverage and other risks of the mining
industry; delays in obtaining governmental approvals or financing
or in the completion of development or construction activities,
changes in national and local government regulation of mining
operations, tax rules and regulations, and political and economic
developments in countries in which the Company operates, actual
resolutions of legal and tax matters, as well as those factors
discussed in the section entitled "Description of the Business –
Risk Factors" in Leagold's most recent AIF available on SEDAR at
www.sedar.com.
Although Leagold has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such information or statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information or statements. The Company has and
continues to disclose in its Management's Discussion and Analysis
and other publicly filed documents, changes to material factors or
assumptions underlying the forward-looking information and
forward-looking statements and to the validity of the information,
in the period the changes occur. The forward-looking statements and
forward looking information are made as of the date hereof and
Leagold disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the forward
looking statements or forward looking information contained herein
to reflect future results. Accordingly, readers should not place
undue reliance on forward-looking statements and information.
Appendix
Mineral Resource Statement By Mining Method for Los Filos
Mine (Effective Date of December 31,
2017)
Class
|
Mining
Method
|
Tonnes
(kt)
|
Gold grade
(g/t)
|
Gold ounces
(koz)
|
Silver grade
(g/t)
|
Silver ounces
(koz)
|
Measured
|
Open Pit
|
58,008
|
0.75
|
1,405
|
3.87
|
7,208
|
Underground
|
1,111
|
8.49
|
304
|
21.31
|
763
|
Total
|
59,119
|
0.90
|
1,709
|
4.19
|
7,971
|
Indicated
|
Open Pit
|
317,226
|
0.85
|
8,711
|
10.07
|
102,743
|
Underground
|
4,256
|
7.58
|
1,040
|
21.66
|
2,971
|
Total
|
321,482
|
0.94
|
9,751
|
10.23
|
105,714
|
Measured &
Indicated
|
Open Pit
|
375,234
|
0.84
|
10,116
|
9.11
|
109,951
|
Underground
|
5,367
|
7.79
|
1,344
|
21.64
|
3,734
|
Total
|
380,602
|
0.94
|
11,459
|
9.29
|
113,684
|
Inferred
|
Open Pit
|
237,837
|
0.69
|
5,265
|
10.12
|
77,369
|
Underground
|
2,632
|
5.59
|
474
|
19.89
|
1,687
|
Total
|
240,469
|
0.74
|
5,739
|
10.23
|
79,056
|
Notes:
|
1.
|
Mineral resources are
inclusive of mineral reserves and do not include
dilution.
|
2.
|
Mineral resources
that are not mineral reserves do not have demonstrated economic
viability.
|
3.
|
Mineral resources are
reported to a gold price of US$1,400/oz and a silver price of
US$4.26/oz.
|
4.
|
Open pit Mineral
resources are defined within pit shells that use variable mining
and recovery estimates depending on the geometallurgical domain and
whether mineralization is projected to report to crush–leach or is
considered typical run-of-mine for processing
requirements.
|
5.
|
Open pit Mineral
resources are reported to variable gold cut-off grades: Los Filos
Open Pit 0.198 g/t Au, Bermejal Open Pit of 0.179 g/t
Au.
|
6.
|
Underground Mineral
resources use a mining cost of US$84.78/t for Cut-and-Fill, process
cost of US$6.75/t, and a process recovery of 80%.
|
7.
|
Mineral resources are
reported to a gold cut-off grade: Los Filos Underground of 3.39 g/t
Au; Bermejal Underground of 3.0 g/t Au.
|
8.
|
Tonnages are rounded
to the nearest 1,000 tonnes, grades are rounded to two decimal
places for Au, grades for Ag are rounded to two decimal places;
rounding as required by reporting guidelines may result in apparent
summation differences.
|
9.
|
Includes both oxide
and sulphide mineralization.
|
Los Filos Mine Total Mineral Reserve Statement (Effective
Date of December 31, 2017)
Class
|
Mining
Method
|
Tonnes
(kt)
|
Gold grade
(g/t)
|
Gold ounces
(koz)
|
Silver grade
(g/t)
|
Silver ounces
(koz)
|
Proven
|
Open Pit
|
13,921
|
0.70
|
312
|
3.01
|
1,349
|
Underground
|
519
|
8.21
|
137
|
13.10
|
219
|
Total
|
14,440
|
0.97
|
449
|
3.38
|
1,568
|
Probable
|
Open Pit
|
45,679
|
0.70
|
1,702
|
3.01
|
18,956
|
Underground
|
1,325
|
8.55
|
348
|
13.10
|
979
|
Total
|
47,004
|
1.36
|
2,050
|
13.19
|
19,935
|
Proven &
Probable
|
Open Pit
|
59,600
|
1.05
|
2,014
|
10.60
|
20,305
|
Underground
|
1,844
|
8.18
|
485
|
20.20
|
1,198
|
Total
|
61,444
|
1.26
|
2,499
|
10.88
|
21,503
|
Notes:
|
1.
|
Mineral Reserves are
based on Measured and Indicated Mineral Resources within pit
designs and supported by a mine plan, featuring variable throughput
rates (depending on the pit being mined), variable metallurgical
recoveries (depending on geometallurgical domain), and
cut-off optimization.
|
2.
|
Metal price
assumption for gold was US$1,200/oz.
|
3.
|
Open Pit Mineral
Reserves:
|
|
a.
|
Los Filos Open Pit
includes the mineralization within the planned 4P pit extension.
Bermejal Open Pit includes the mineralization within the planned
Guadalupe pit extension.
|
|
b.
|
Los Filos Open Pit
crush-leach ore is based on an operational 0.433 g/t Au
cut-off grade; ROM ore is based on a variable 0.247 to 0.581
g/t Au operational cut-off grade that is determined by
lithology. Los Filos Mineral Reserve is based on a 0.191 g/t Au
cut-off grade. El Bermejal Open Pit crush-leach ore is based
on an operational 0.395 g/t Au cut-off grade; ROM ore is
based on a variable 0.257 to 0.368 g/t Au operational cut-off
grade that is determined by lithology. Bermejal Open Pit Mineral
Reserve is based on a 0.20 g/t Au cut-off grade.
|
|
c.
|
Process gold
recoveries vary from 54% to 76% for crush-leach ore and from 30% to
64% for ROM ore at Los Filos Open Pit; recoveries at Bermejal Open
Pit for crush-leach ore vary from 51% to 68 and from 42% to 58% for
ROM ore. A 5% silver recovery is assumed from all geometallurgical
domains.
|
4.
|
Underground Mineral
Reserves:
|
|
a.
|
Are contained within
stope designs that have a minimum horizontal continuity of 10 m,
and minimum mining width of 3.5 m, and supported by a mine plan
that features variable stope thicknesses depending on zone; and
cut-off optimization.
|
|
b.
|
Are reported based on
a cut-off grade of 3.77 g/t Au for stopes within 100 m of
planned ramp and 4.44 g/t Au for stopes requiring
development.
|
|
c.
|
Dilution is assigned
an average of 14% at a 0 grade for Au and Ag.
|
|
d.
|
Mining recovery is
variable, based on stope width and can range from 75% to
100%.
|
|
e.
|
Process gold
recoveries are estimated at 80% for Los Filos Underground ore. A 5%
silver recovery is assumed from all zones.
|
5.
|
Tonnage and grade
measurements are in metric units. Contained gold and silver ounces
are reported as troy ounces.
|
6.
|
Summation errors may
be present due to rounding.
|
|
|
SOURCE Leagold Mining Corporation