VANCOUVER, May 24, 2018 /CNW/ - Leagold Mining Corporation
(TSX:LMC; OTCQX:LMCNF) ("Leagold" or the "Company") is pleased to
announce the completion of its acquisition of Brio Gold Inc.
("Brio"). Leagold has launched a new corporate website, at
www.leagold.com, which contains information on its gold mines and
projects in both Mexico and
Brazil.
Leagold is also pleased to announce that Peter Marrone, Chairman and CEO of Yamana Gold
Inc. ("Yamana"), has accepted Leagold's invitation and today has
been appointed to the Leagold Board of Directors. At closing,
Yamana became Leagold's largest shareholder holding 58,115,954
shares representing approximately 20.5% ownership.
Neil Woodyer, Leagold CEO,
stated: "We are very excited about Leagold's new position as a
mid-tier gold producer with the growth of our production rate to
over 400,000 ounces per year. Our business and market profiles are
strengthened by our diversification in both Mexico and Brazil and across four operating mines.
Leagold's measured and indicated resources have increased to 16.4
million ounces and proven and probable reserves have increased to
5.6 million ounces. We expect to provide updated 2018 guidance with
Q2 earnings to be released in August
2018 and following a review of the operating plans.
"In addition, we are looking forward to Peter's contributions to
our Board as we continue to implement our growth strategy. We wish
Gil Clausen well in his new role as
CEO of a Canadian copper producer, which has resulted in Gil
choosing to not be appointed to Leagold's Board."
Leagold is also pleased to provide the following updates on the
previously announced financings:
- Leagold's existing $150 million
senior secured credit facility, which was previously amended to
provide an additional $100 million
tranche of funding, has now been fully drawn. The $100 million tranche has a term of 18 months and
has been used to fully repay Brio's $75
million senior secured credit facility and will support the
repayment of the drawn amounts of Brio's debt with a group of
Brazilian banks, which currently amounts to approximately
$14.1 million.
- Orion Mine Finance ("Orion") completed the
subscription for 21,317,098 new Leagold common shares, equivalent
to $45 million at C$2.7143 per share. This investment has resulted
in Orion maintaining its ownership in Leagold at approximately
16%.
For details on Leagold's mineral reserves and resources, with an
effective date of December 31, 2017,
see Tables 1, 2 and 3.
Table 1: Leagold Mineral Reserves Statement, effective date
of December 31, 2017
Mine/Project
|
Proven
|
Probable
|
Proven and
Probable
|
Tonnes
(kt)
|
Grade
(g/t)
|
Contained
Gold
(koz)
|
Tonnes
(kt)
|
Grade
(g/t)
|
Contained
Gold
(koz)
|
Tonnes
(kt)
|
Grade
(g/t)
|
Contained
Gold
(koz)
|
Los Filos
|
14,440
|
0.97
|
449
|
47,004
|
1.36
|
2,050
|
61,444
|
1.26
|
2,499
|
Leach Pad
Inventory
|
|
|
|
|
|
216
|
|
|
216
|
Riacho dos
Machados
|
6,765
|
0.79
|
171
|
19,284
|
1.06
|
659
|
26,049
|
0.99
|
830
|
Fazenda
Brasileiro
|
3,661
|
2.18
|
257
|
2,148
|
1.75
|
121
|
5,809
|
2.02
|
377
|
Pilar
|
1,298
|
2.11
|
88
|
8,063
|
1.34
|
348
|
9,361
|
1.45
|
436
|
Santa Luz
|
25,000
|
1.43
|
1,153
|
3,200
|
1.03
|
106
|
28,200
|
1.39
|
1,259
|
Total Proven
and
Probable
|
|
2,117
|
|
3,500
|
|
5,617
|
Notes:
|
1. Mineral Reserves
are based on Measured and Indicated Mineral Resources.
|
2. Gold price of
US$1,200/oz used for Los Filos, Fazenda Brasileiro, Pilar
underground mines; $1250/oz for Santa Luz, RDM, $1300/oz for Três
Buracos open pit at Pilar.
|
3. Tonnage and grade
measurements are in metric units. Contained gold ounces are
reported as troy ounces.
|
4. Summation errors
may be present due to rounding.
|
5. Los Filos Mine:
The Qualified Person for Mineral Reserves is Rodolfo Balderrama
Neder (Administración Los Filos, S.A.P.I. de C.V., a wholly-owned
subsidiary of the Company, Mine Operations Manager).
|
6. Riacho dos
Machados Mine: The June 2017 Mineral Reserve was depleted to
December 31, 2017 production pit topography. The Qualified Person
for Mineral Reserves for the Riacho dos Machados Mine is Stuart E.
Collins, P.E., SME Registered Member (formerly Director of Mine
Engineering and Strategic Development, Brio Gold Inc.).
|
7. Fazenda Brasileiro
Mine: The EOY 2016 Mineral Reserve was depleted to EOY 2017 based
on production records. The Qualified Person for Mineral Reserves
for the Fazenda Brasileiro Mine is Stuart E. Collins, P.E., SME
Registered Member (formerly Director of Mine Engineering and
Strategic Development, Brio Gold Inc.).
|
8. Pilar Mine: The
EOY 2016 Mineral Reserve was depleted by EOY 2017 based on
production stope topography; and includes a January 29, 2018
reserve update to the Tres Buracos open pit project. The Qualified
Person for Mineral Reserves for the Pilar Mine is Stuart E.
Collins, P.E., SME Registered Member (formerly Director of Mine
Engineering and Strategic Development, Brio Gold Inc.).
|
9: Santa Luz Project:
The Qualified Person for Mineral Reserves for the Santa Luz Project
is Stuart E. Collins, P.E., SME Registered Member (formerly
Director of Mine Engineering and Strategic Development, Brio Gold
Inc.).
|
Table 2: Leagold Measured and Indicated Mineral Resources,
effective date of December 31,
2017
Mine
|
Measured
|
Indicated
|
Measured and
Indicated
|
Tonnes
(kt)
|
Grade
(g/t)
|
Contained
Gold
(koz)
|
Tonnes
(kt)
|
Grade
(g/t)
|
Contained
Gold
(koz)
|
Tonnes
(kt)
|
Grade
(g/t)
|
Contained
Gold
(koz)
|
Los Filos
|
59,119
|
0.90
|
1,709
|
321,482
|
0.94
|
9,751
|
380,602
|
0.94
|
11,459
|
Riacho dos
Machados
|
7,225
|
0.77
|
180
|
28,324
|
1.12
|
1,022
|
35,548
|
1.05
|
1,202
|
Fazenda
Brasileiro
|
5,863
|
2.61
|
491
|
2,358
|
1.87
|
142
|
8,221
|
2.40
|
633
|
Pilar
|
2,523
|
3.04
|
247
|
14,461
|
1.86
|
866
|
16,984
|
2.04
|
1,113
|
Santa Luz
|
29,900
|
1.40
|
1,343
|
9,700
|
1.96
|
611
|
39,600
|
1.53
|
1,954
|
Total Measured
and
Indicated
|
|
3,970
|
|
12,391
|
|
16,360
|
Table 3: Leagold Inferred Mineral Resources, effective date
of December 31, 2017
Mine
|
Tonnes
(kt)
|
Grade
(g/t)
|
Contained
Gold
(koz)
|
Los Filos
|
240,469
|
0.74
|
5,739
|
Riacho dos
Machados
|
10,024
|
1.32
|
426
|
Fazenda
Brasileiro
|
2,551
|
1.91
|
156
|
Pilar
|
19,754
|
3.28
|
2,085
|
Santa Luz
|
7,300
|
2.08
|
489
|
Total
Inferred
|
|
8,895
|
Notes to Tables 2 and
3:
|
1. Mineral Resources
are inclusive of Mineral Reserves.
|
2. No dilution or
recovery is applied to Mineral Resources reported for Los Filos.
Mineral Reserves for Fazenda Brasileiro, RDM, Pilar and Santa Luz
include dilution and mining recovery factors.
|
3. Gold price of
US$1,400/oz used for Los Filos; $1500/oz for RDM, Fazenda
Braileiro, Pilar, Santa Luz.
|
4. Tonnage and grade
measurements are in metric units. Contained gold ounces are
reported as troy ounces.
|
5. Summation errors
may be present due to rounding.
|
6. Los Filos Mine:
The Qualified Persons for Mineral Resources are Dr. Gilles Arseneau
(Associate Consultant with SRK Consulting (Canada) Inc., and
independent of the Company) for Los Filos Open Pit, Bermejal Open
Pit and Bermejal Underground, and Doug Reddy (Leagold, SVP
Technical Services) for Los Filos Underground Mine.
|
7. Riacho dos
Machados Mine: The Qualified Persons for Mineral Resources are
Emerson Ricardo Re, MSc, AusIMM CP Geo, Registered Member of
Chilean Mining Commission (Leagold, Corporate Director of Mineral
Resources) and Jorge Augusto Basilio Fernandes, AusIMM CP Geo,
(Leagold, Mineral Resources Coordinator).
|
8. Fazenda Brasileiro
Mine: The Qualified Persons for Mineral Resources are Emerson
Ricardo Re, MSc, AusIMM CP Geo, Registered Member of Chilean Mining
Commission (Leagold, Corporate Director of Mineral Resources) and
Carlos Henrique Barbosa Pires, AusIMM CP Geo, (Leagold, Mineral
Resources Coordinator).
|
9. Pilar Mine: The
Qualified Persons for Mineral Resources are Emerson Ricardo Re,
MSc, AusIMM CP Geo, Registered Member of Chilean Mining Commission
(Leagold, Corporate Director of Mineral Resources) and Jorge
Augusto Basilio Fernandes, AusIMM CP Geo, (Leagold, Mineral
Resources Coordinator).
|
10. Santa Luz: The
Qualified Person for Mineral Resources is Mark B. Mathisen,
CPG-11648 SME Registered Member. Senior Geologist, Roscoe Postle
Associates.
|
Source of Technical Information
The Mineral Reserves and Mineral Resources for the Los Filos
Mine are derived from the "Technical Report for Los Filos Gold
Mine, Guerrero State, Mexico" 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 Mineral Reserves and Mineral Resources for the Riacho dos
Machados Mine, Fazenda Brasileiro Mine, Pilar Mine and the Santa
Luz Project are based on the previous disclosure by Brio Gold Inc.
with depletion of Mineral Reserves and Mineral Resources as
disclosed to December 31, 2017. The
Technical Reports filed by Brio Gold Inc. are as follows:
Riacho dos Machados Mine titled "Technical Report on the Riacho
dos Machados Gold Mine, Minas Gerais, Brazil", with an effective date of
December 16, 2015 prepared by
Kathleen Ann Altman, Ph.D., P.E.,
Stuart E. Collins, P.E., and Mark B.
Mathisen, C.P.G.
Fazenda Brasileiro Mine titled "Technical Report on the Fazenda
Brasileiro Mine, Bahia State,
Brazil", with an effective date of
May 12, 2016 prepared by Chester M. Moore, P.Eng, Robert L. Michaud, P.Eng., and Andrew P. Hampton, P.Eng.
Pilar Mine titled "Technical Report on the Pilar Operations,
Goiás State, Brazil", with an
effective date of May 12, 2016
prepared by Chester M. Moore,
P.Eng., Robert L. Michaud, P.Eng.,
and Andrew P. Hampton, P.Eng.
Santa Luz Project titled "Technical Report on the Santa Luz
Project, Bahia State, Brazil", with an effective date of
June 30, 2017, prepared by Stuart E.
Collins, P.E., Mark B. Mathisen,
C.P.G., Hugo M. Miranda, MBA, ChMC
(RM), Robert L. Michaud, P.Eng.,
Richard Addison, P.Eng.
These reports were reviewed by Doug
Reddy (Leagold, SVP Technical Services) and Kelly Boychuk (Leagold, VP Technical Services)
as Qualified Persons on behalf of Leagold and consider that, to the
best of the Leagold's knowledge, information, and belief, there is
no new material scientific or technical information that would make
the disclosure of the mineral resources, mineral reserves or
results of a preliminary economic assessment inaccurate or
misleading.
About Leagold Mining Corporation
Leagold is building a mid-tier gold producer with a focus on
opportunities in Latin America.
The Company is based in Vancouver,
Canada and owns four operating gold mines in Mexico and Brazil, along with a near-term gold mine
restart project in Brazil. Leagold
is listed on the TSX under the trading symbol "LMC" and trades on
the OTCQX market as "LMCNF".
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking statements" and
"forward looking information" (as defined under applicable
securities laws), including but not limited to expected production
in 2018 and timing of updated guidance for 2018. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "expects", "expected",
"budgeted", "forecasts" and "anticipates". Forward-looking
statements and information, while based on management's best
estimates and assumptions, are subject to risks and uncertainties
that may cause actual results to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: risks related to the Company's mines, risks
related to the successful integration of the acquisition; 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 ore 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 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 Leagold operates.
Although Leagold has attempted to identify important factors that
could cause actual results to differ materially from those
contained in 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 statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. 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. Please refer to
Leagold's most recent filings under its profile at www.sedar.com
for further information respecting the risks affecting Leagold and
its business.
SOURCE Leagold Mining Corporation