Almaden Minerals Ltd. (“Almaden” or “the Company”; TSX:
AMM; NYSE American: AAU) is pleased to report positive
results of the independent Feasibility Study (the “Study”) prepared
in accordance with National Instrument 43-101 (“NI 43-101”) for its
100% owned Ixtaca precious metals deposit, located in Puebla State,
Mexico. The Study and resulting mine plan incorporate significant
changes from an earlier Pre-Feasibility Study published by the
Company (see Almaden news release of April 3rd, 2017) including
filtered (dry stack) tailings, ore sorting, increased throughput
and an improved mine schedule. Collectively the changes result in a
reduced project footprint and improved economics.
All values shown are in $US. Base case uses
$1275/oz gold and $17/oz silver prices.Gold and silver equivalency
calculations assume 75:1 ratio.
Highlights
- Average annual production of
108,500 ounces gold and 7.06 million ounces silver (203,000 gold
equivalent ounces, or 15.2 million silver equivalent ounces) over
first 6 years;
- After-tax IRR of 42% and after-tax
payback period of 1.9 years;
- After-tax NPV of $310 million at a
5% discount rate;
- Initial Capital of $174
million;
- Conventional open pit mining with a
Proven and Probable Mineral Reserve of 1.39 million ounces of gold
and 85.2 million ounces of silver (See Table 2);
- Pre-concentration uses ore sorting
to produce a total of 48 million tonnes of mill feed averaging 0.77
g/t gold and 47.9 g/t silver (2.03 g/t gold equivalent over first 6
years, 1.41 g/t gold equivalent over life of mine);
- Average LOM annual production of
90,800 ounces gold and 6.14 million ounces silver (173,000 gold
equivalent ounces, or 12.9 million silver equivalent ounces);
- Operating cost $716 per gold
equivalent ounce, or $9.55 per silver equivalent ounce;
- All-in Sustaining Costs (“AISC”),
including operating costs, sustaining capital, expansion capital,
private and public royalties, refining and transport of $850 per
gold equivalent ounce, or $11.30 per silver equivalent ounce;
- Elimination of tailings dam by
using filtered tailings significantly reduces the project footprint
and water usage.
J. D. Poliquin, Chairman of Almaden stated, "We
have advanced Ixtaca from our blind discovery in 2010 to its
current position as an outstanding inventory of precious metals in
a well-established mining jurisdiction with a very robust economic
profile. Significant potential remains to increase resources
through continued drilling of portions of the Ixtaca project that
remain open as well as other targets on this largely unexplored
property. In the meantime, we are looking forward to further
developing this deposit through permitting and construction to
demonstrate our commitment to modern, responsible mining and the
potential for Ixtaca to be a strong economic engine for the Company
and the region in which it is located."
StudyAlmaden engaged a team of
consultants led by Moose Mountain Technical Services (“MMTS”) to
undertake this Study. MMTS was responsible for mining, metallurgy,
processing, infrastructure and the economic evaluation, APEX
Geoscience Ltd. for exploration and drill data QA/QC, Giroux
Consultants for the resources estimation, and SRK Consulting
(U.S.), Inc. (“SRK”) for aspects related to geotechnical, tailings
and water management.
Table 1 – Summary of the Economics of the
Ixtaca Feasibility Study
|
Amount |
Pre-Tax NPV (5%) |
$ 470 million |
Pre-Tax IRR |
57 % |
Pre-Tax Payback |
1.6 Years |
Post-Tax NPV (5%) |
$310 million |
Post-Tax IRR |
42 % |
Post-Tax Payback |
1.9 Years |
Initial Capital |
$ 174 million |
Life of Mine |
11 Years |
Waste/ ROM ore ratio |
4.5:1 |
|
Years 1 -
6 |
Life of
Mine (LOM) |
Cash Operating Cost ($/AuEq oz.) |
667 |
716 |
AISC ($/AuEq oz.) |
810 |
850 |
Annual Gold production (000's oz.) |
108 |
90 |
Annual Silver production (000's oz.) |
7,071 |
6,160 |
Annual Gold equivalent production (000's oz.) |
202 |
173 |
Average mill feed grade (g/t) Au |
1.10 |
0.77 |
Average mill feed grade (g/t) Ag |
69.3 |
47.9 |
Average mill feed grade (g/t) AuEq |
2.03 |
1.41 |
- Economics assume a Gold Price of $1275/Oz and Silver Price of
$17/Oz and are estimated on a 100% equity basis.
Geology and Mineral Resource
Estimate
The Ixtaca deposit is an epithermal gold-silver
deposit, mostly occurring as anastomosing (branching and
re-connecting) vein zones hosted by limestone and shale basement
rocks with a minor component of disseminated mineralisation hosted
in overlying volcanic rocks. The wireframe models constructed to
define the overall vein zones therefore contain interspersed
irregular zones of barren limestone dilution. In this Study the
limestone unit hosts 75% of the metal produced, the volcanic unit
hosts 12% and the black shale unit hosts 13% on a gold-equivalent
basis. The Mineral Resources for Ixtaca are presented in Table
2.
Table 2- Summary of Ixtaca Mineral
Resources
MEASURED RESOURCE |
AuEq Cut-off |
Tonnes > Cut-off |
Grade>Cut-off |
Contained Metal x 1,000 |
(g/t) |
(tonnes) |
Au (g/t) |
Ag (g/t) |
AuEq (g/t) |
Au (ozs) |
Ag (ozs) |
AuEq (ozs) |
0.30 |
43,380,000 |
0.62 |
36.27 |
1.14 |
862 |
50,590 |
1,591 |
0.50 |
32,530,000 |
0.75 |
44.27 |
1.39 |
788 |
46,300 |
1,454 |
0.70 |
25,080,000 |
0.88 |
51.71 |
1.63 |
711 |
41,700 |
1,312 |
1.00 |
17,870,000 |
1.06 |
61.69 |
1.95 |
608 |
35,440 |
1,118 |
INDICATED RESOURCE |
AuEq Cut-off |
Tonnes > Cut-off |
Grade>Cut-off |
Contained Metal x 1,000 |
(g/t) |
(tonnes) |
Au (g/t) |
Ag (g/t) |
AuEq (g/t) |
Au (ozs) |
Ag (ozs) |
AuEq (ozs) |
0.30 |
80,760,000 |
0.44 |
22.67 |
0.77 |
1,145 |
58,870 |
1,994 |
0.50 |
48,220,000 |
0.59 |
30.13 |
1.02 |
913 |
46,710 |
1,586 |
0.70 |
29,980,000 |
0.74 |
37.79 |
1.29 |
715 |
36,430 |
1,240 |
1.00 |
16,730,000 |
0.96 |
47.94 |
1.65 |
516 |
25,790 |
888 |
INFERRED RESOURCE |
AuEq Cut-off |
Tonnes > Cut-off |
Grade>Cut-off |
Contained Metal x 1,000 |
(g/t) |
(tonnes) |
Au (g/t) |
Ag (g/t) |
AuEq (g/t) |
Au (ozs) |
Ag (ozs) |
AuEq (ozs) |
0.30 |
40,410,000 |
0.32 |
16.83 |
0.56 |
412 |
21,870 |
726 |
0.50 |
16,920,000 |
0.44 |
25.43 |
0.80 |
237 |
13,830 |
436 |
0.70 |
7,760,000 |
0.57 |
33.80 |
1.06 |
142 |
8,430 |
264 |
1.00 |
3,040,000 |
0.79 |
43.64 |
1.42 |
77 |
4,270 |
139 |
- Ixtaca Mineral Resources Estimate have an effective date of 8
July 2018. The Qualified person for the estimate is Gary Giroux,
P.Eng.
- Base Case 0.3 g/t AuEq Cut-Off grade is highlighted. Also shown
are the 0.5, 0.7 and 1.0 g/t AuEq cut-off results. AuEq calculation
based average prices of $1250/oz gold and $18/oz silver. The Base
Case cut-off grade includes consideration of the open pit mining
method, 90% metallurgical recovery, mining costs of $1.82/t,
average processing costs of $11.7, G&A costs of $1.81/t.
- Mineral Resources are reported inclusive of those Mineral
Resources that have been converted to Mineral Reserves. Mineral
Resources that are not Mineral Reserves do not have demonstrated
economic viability.
- The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal or other relevant issues. The
Mineral Resources have been classified according to the CIM
Definition Standards for Mineral Resources and Mineral Reserves in
effect as of the date of this news release.
- All figures were rounded to reflect the relative accuracy of
the estimates and may result in summation differences.
Mine Plan
The Ixtaca gold-silver project is planned as a
typical open pit mining operation using contractor mining. Initial
production will ramp up to a mill feed rate of 7,650 tonnes per day
followed by an expansion to 15,300 tonnes per day from Year 5
onwards.
An ore control system is planned to provide
field control for the loading equipment to selectively mine ore
grade material separately from the waste.
Mining operations will be based on 365 operating
days per year with three 8 hour shifts per day.
Processing
The Study reflects the Rock Creek process plant
which has been purchased by Almaden. Run of mine ore will be
crushed in a three-stage crushing circuit to -9 mm.
The Study also incorporates ore sorting, test
work for which has shown the ability to separate barren or low
grade limestone host rock encountered within the vein swarm from
vein and veined material (see Almaden news release of July 16th
2018). Product from the secondary crusher will be screened in to
coarse (+20mm), mid-size (12 to 20 mm), and fine (-12mm) fractions.
Coarse and mid-size ore will be sorted by an XRT ore sort machine
to eject waste rock. Fine ore will bypass the ore sorting and is
sent directly to the mill.
Ore sort waste from Limestone and Black Shale is
below waste/ore cutoff grade and is placed in the waste rock dump.
Ore sort ‘waste’ from the Volcanic unit is low grade ore and will
be stockpiled for processing later in the mine life. Ore sorting
pre-concentration increases the mill feed gold and silver grades by
32% and 31% respectively compared to run of mine (ROM) grades.
Table 3 shows ROM grades with ore sort waste removed from the ROM,
and the resulting mill feed.
Table 3 Ore Sort Mill Feed grade
improvement
|
|
ROM |
Ore
sort |
Mill |
|
|
Ore |
Waste |
Feed |
Limestone |
million tonnes |
51.5 |
18.8 |
32.7 |
Au g/t |
0.572 |
0.24 |
0.763 |
Ag g/t |
37.5 |
12.0 |
52.2 |
Black Shale |
million tonnes |
12.2 |
6.3 |
5.8 |
Au g/t |
0.517 |
0.25 |
0.806 |
Ag g/t |
44.4 |
20.0 |
70.8 |
Volcanic |
million tonnes |
9.4 |
- |
9.4 |
Au g/t |
0.790 |
- |
0.790 |
Ag g/t |
18.6 |
- |
18.6 |
TOTAL |
million tonnes |
73.1 |
25.1 |
48.0 |
Au g/t |
0.591 |
0.24 |
0.773 |
Ag g/t |
36.3 |
14.0 |
47.9 |
Crushed ore is transported to the grinding
circuit by an over land conveyor. Grinding to 75 microns is carried
out with ball milling in a closed circuit with cyclones. Cyclone
underflow is screened and the screen undersize is treated in
semi-batch centrifugal gravity separators to produce a gravity
concentrate.
The gravity concentrate will be treated in an
intensive leach unit with gold and silver recovered from
electrowinning cells.
The cyclone overflow will be treated in a
flotation unit to produce a flotation concentrate. After regrinding
the flotation concentrate leaching will be carried out in 2 stages.
CIL leaching for 24 hours will complete gold extraction, followed
by agitated tank leaching to complete silver leaching. A carbon
desorption process will recover gold and silver from the CIL loaded
carbon, and a Merrill Crowe process will recover gold and silver
from pregnant solution from the agitated leach circuit.
Cyanide destruction on leach residue is carried out using the
SO2/Air process. Final tailings are thickened and filtered then dry
stacked and co-disposed with mine waste rock.
Average process recoveries from mill feed to
final product over the life of mine are summarized in Table 4 for
each ore type.
Table 4 Average Life of Mine Process
Recoveries from Mill Feed
|
Gold |
Silver |
Limestone |
88.5 |
% |
86.8 |
% |
Volcanic |
64.4 |
% |
76.3 |
% |
Black Shale |
54.5 |
% |
84.7 |
% |
Water and Waste Management
One of Almaden’s top priorities at Ixtaca is
water quality and a mine plan that provides a permanent and
consistent long-term supply of water for residents. The plan
outlined in the Study has evolved through the open dialogue between
the Company and residents over the past number of years and as part
of the Social Investment Plan consultation (see section below on
“Community”).
Rainfall in the Ixtaca vicinity falls primarily
during a relatively short rainy season. With no local water storage
facilities, the flash flows of water are currently lost to the
communities. Under the Study, rainwater will be captured during the
rainy season in the water storage reservoir and slowly released
during the dry season, for use by both the mining operation and
local residents.
Extensive geochemical studies have evaluated the
potential for acid rock drainage and metal leaching from the waste
rock and tailings using globally accepted standardised methods of
laboratory testing and in compliance with Mexican regulations. Most
of the waste rock at Ixtaca is limestone, and the studies of both
waste rock and tailings have consistently shown that there is more
than enough neutralising potential present in the waste rock to
neutralise any acid generated. Testing to date also indicates low
potential for metal leaching. These results along with the
excellent access to potential markets in the growing industrial
state of Puebla, indicate the potential for rock waste and tailings
from the Ixtaca deposit to be secondary resources such as aggregate
and cement feedstock. These opportunities will be fully examined in
2019 as part of the Company’s commitment to best sustainable
practices.
In consideration of these findings and the
hydrologic conditions at Ixtaca, Almaden and its consultants
reviewed Best Available Technology and Best Applicable Practice in
the design and planning of tailings management at Ixtaca, which
resulted in selecting a dry-stack tailings facility which would
include co-disposal of waste with filtered tailings, use much less
water than traditional slurry facilities, reduce the mine
footprint, allow for better dust control, and enable earlier
rehabilitation of the tailings and waste disposal areas.
Mineral Reserve Estimate
Mineral Reserves in Table 5, have been developed
by MMTS with an effective date of November 30, 2018, and are
classified using the 2014 CIM Definition Standards. The Mineral
Reserves are based on an engineered open pit mine plan.
Table 5 – Mineral Reserves
|
Tonnes |
Diluted Average Grades |
Contained Metal |
|
(millions) |
Au (g/t) |
Ag (g/t) |
Au - '000 ozs |
Ag - '000 ozs |
Proven |
31.6 |
0.70 |
43.5 |
714 |
44,273 |
Probable |
41.4 |
0.51 |
30.7 |
673 |
40,887 |
TOTAL |
73.1 |
0.59 |
36.3 |
1,387 |
85,159 |
- Mineral Reserves have an
effective date of November 30, 2018. The qualified person
responsible for the Mineral Reserves is Jesse Aarsen, P.Eng of
Moose Mountain Technical Services.
- The cut-off grade used for
ore/waste determination is NSR>=$14/t.
- All Mineral Reserves in this table
are Proven and Probable Mineral Reserves. The Mineral Reserves are
not in addition to the Mineral Resources but are a subset thereof.
All Mineral Reserves stated above account for mining loss and
dilution.
- Associated metallurgical recoveries
(gold and silver, respectively) have been estimated as 90% and 90%
for limestone, 50% and 90% for volcanic, 50% and 90% for black
shale.
- Reserves are based on a US$1,300/oz
gold price, US$17/oz silver price and an exchange rate of
US$1.00:MXP20.00.
- Reserves are converted from
resources through the process of pit optimization, pit design,
production schedule and supported by a positive cash flow
model.
- Rounding as required by reporting
guidelines may result in summation differences.
Legal, political, environmental, or other risks
that could materially affect the potential development of the
Mineral Reserves are provided below under the heading
“Forward-Looking Statements”.
Capital and Operating Costs
Initial capital cost for the Ixtaca gold-silver
project is $174 million and sustaining capital (including expansion
capital) is $111 million over the LOM. The estimated expansion
capital of $64.5 million will be funded from cashflow in Year 4 for
the throughput ramp-up in Year 5. Estimated LOM operating costs are
$26.8 per tonne mill feed. The following tables summarize the cost
components:
Table 6 – Initial Capital Costs ($
millions)
Mining |
22.2 |
Process |
80.2 |
Onsite Infrastructure |
24.3 |
Offsite Infrastructure |
7.5 |
Indirects, EPCM, Contingency and Owner’s Costs |
39.9 |
Total |
174.2 |
Table 7 – Expansion Capital Costs ($
millions)
Mining |
$ |
1.2 |
Process |
$ |
56.9 |
Infrastructure |
$ |
1.5 |
Indirects, EPCM, Contingency and Owner’s Costs |
$ |
5.0 |
Total |
$ |
64.5 |
Table 8 – LOM Average Operating Costs ($)
Mining costs |
$/tonne milled |
$ |
15.2 |
Processing |
$/tonne milled |
$ |
10.5 |
G&A |
$/tonne milled |
$ |
1.1 |
Total |
$/tonne milled |
$ |
26.8 |
Economic Results and
Sensitivities
A summary of financial outcomes comparing base
case metal prices to alternative metal price conditions are
presented below. The Study base case prices are derived from
current common peer usage, while the alternate cases consider the
project’s economic outcomes at varying prices witnessed at some
point over the three years prior to this study.
Table 9 - Summary of Ixtaca Economic
Sensitivity to Precious Metal Prices (Base Case is
Bold)
Gold Price ($/oz) |
1125 |
|
1200 |
|
1275 |
|
1350 |
|
1425 |
|
Silver Price ($/oz) |
14 |
|
15.5 |
|
17 |
|
18.5 |
|
20 |
|
|
Pre-Tax NPV 5% ($million) |
229 |
|
349 |
|
470 |
|
591 |
|
712 |
|
Pre-Tax IRR (%) |
35 |
% |
46 |
% |
57 |
% |
67 |
% |
77 |
% |
Pre-Tax Payback (years) |
2.0 |
|
1.8 |
|
1.6 |
|
1.4 |
|
1.3 |
|
|
After-Tax NPV 5% ($million) |
151 |
|
233 |
|
310 |
|
388 |
|
466 |
|
After-Tax IRR (%) |
25 |
% |
34 |
% |
42 |
% |
49 |
% |
57 |
% |
After-Tax Payback (years) |
2.6 |
|
2.1 |
|
1.9 |
|
1.7 |
|
1.5 |
|
Community Consultations
Almaden has a long history of engagement with
communities in the region around the Ixtaca project. Amongst many
other initiatives, the Company has trained and employed drillers
and driller helpers from the local area, held nine large-scale
community meetings totalling over 4,100 people, taken 480 local
adults on tours of operating mines in Mexico, and held monthly
technical meetings on a diverse range of aspects relating to the
mining industry and the Ixtaca project. On December 9, 2018,
Almaden hosted the most recent large-scale community meeting which
was attended by over 800 people, including representatives of the
new Federal Government in Mexico.
In 2017, Almaden engaged a third-party
consultant to lead a community consultation and impact assessment
at the Ixtaca project. In Mexico, only the energy industry requires
completion of such an assessment (known in Mexico as a Trámite
Evaluación de Impacto Social, or “EVIS”) as part of the permitting
process. The purpose of these studies is to identify the people in
the area of influence of a project (“Focus Area”), and assess the
potential positive and negative consequences of project development
to assist in the development of mitigation measures and the
formation of social investment plans. To Almaden’s knowledge, this
is the first time a formal EVIS has been completed in the minerals
industry in Mexico, and as such reflects the Company’s commitment
to best national and international standards in Ixtaca project
development.
The EVIS and subsequent work on the development
of a Social Investment Plan were conducted according to Mexican and
international standards such as the Guiding Principles on Business
and Human Rights, the Equator Principles, and the OECD Guidelines
for Multinational Enterprises and Due Diligence Guidance for
Meaningful Stakeholder Engagement in the Extractive Sector.
Fieldwork for the EVIS was conducted by an
interdisciplinary group of nine anthropologists, ethnologists and
sociologists graduated from various universities, who lived in
community homes within the Ixtaca Focus Area during the study to
allow for ethnographic immersion and an appreciation for the local
customs and way of life. This third-party consultation sought
voluntary participation from broad, diverse population groups, with
specific attention to approximately one thousand persons in the
Focus Area.
This extensive consultation has resulted in
changes to some elements of the mine design, including the planned
construction of a permanent water reservoir to serve the local area
long after mine closure, and the shift to dry-stack filtered waste
management. The Company looks forward to advancing further elements
of the community Social Investment Plan as mine permitting and
construction advance.
For more information on Almaden’s interactions
with the local communities please visit
http://www.almadenminerals.com/index.html and
https://twitter.com/proixtaca?lang=en.
Economic Contributions
The Study anticipates that approximately 600
direct jobs will be created during the peak of construction, and
420 jobs will be generated during operations. Assuming base case
metal prices, under this Study Ixtaca is anticipated to generate
approximately US$130 million in Federal taxes, US$50 million in
State taxes and US$30 million in Municipal taxes.
Closure and Reclamation
Mine waste areas will be reclaimed and
re-vegetated at the end of mining activity. At closure, all
buildings will be removed and remaining facilities, except for the
water storage dam (WSD), will be reclaimed and re-vegetated. The
WSD and the availability of this water to the local communities
will remain after closure.
Opportunities
Several opportunities excluded from the base
case economics have been identified in the Study.
- Results from the ore sorting tests identified several
opportunities to increase the ore sort efficiency and could result
in a further increase in mill feed grades. These opportunities will
be investigated with future test work.
- Gold extraction recoveries in the minor black shale unit are
currently impeded by the presence of carbonaceous material. Recent
test work including carbon pre-flotation and ultra-fine gravity
separation has demonstrated that the carbon can be liberated and
removed with a significant improvement in gold recovery. This test
work is ongoing and is expected to improve the black shale gold
recovery.
- Test work carried out on Ixtaca limestone waste rock samples
concluded that Ixtaca limestone waste rock is suitable for many
types of concrete use and other applications such as shotcrete,
subgrade, asphalt aggregate or railroad ballast with little effort
and processing. Concrete produced with tests on Ixtaca limestone
aggregate performed very well, achieving the 28-day design
compressive strength of 30 MPa already at 7 days, and more than 40
MPa at 28 and 56 days.Ixtaca is connected by 60 km of paved road to
the industrial city Apizaco, 120 km of paved road to the state
capital of Puebla, and 170 km of paved road to Mexico City.The sale
of limestone ore sort rejects (a waste product) as an aggregate
presents a very significant potential source of revenue to the
project at no additional capital or operating cost to the project.
There is also potential to sell some of the ROM waste rock as an
aggregate.
- Fine aggregate from crushing and grinding operations is also
expected to perform in a similar way to the coarse aggregate.
Chemical analysis of the fine aggregate indicates that it is also
suitable as a raw material for the production of lime cement or
Portland cement if properly processed and blended with suitable
silica aluminates.
Next Engineering and Development
Steps
The Company is pursuing the optimization
opportunities noted above and will shortly submit its environmental
permit application to Mexican authorities.
A NI 43-101 technical report for this Study will
be filed on SEDAR (www.sedar.com) within 45 days.
Qualified Persons, Quality Control and
AssuranceThe independent qualified persons responsible for
preparing the Study are: Jesse Aarsen, P.Eng. and Tracey Meintjes,
P.Eng. of MMTS; Edward Wellman PE, PG, CEG and Clara Balasko, P.E.
of SRK; Kris Raffle, P.Geo. of APEX Geoscience Ltd.; and Gary
Giroux, M.A.Sc., P.Eng. of Giroux Consultants Ltd.; all of whom act
as independent consultants to the Company, are Qualified Persons as
defined by National Instrument 43-101 ("NI 43-101") and have
reviewed and approved the contents of this news release.
The analyses used in the preparation of the
mineral resource statement were carried out at ALS Chemex
Laboratories of North Vancouver using industry standard analytical
techniques. For gold, samples are first analysed by fire assay and
atomic absorption spectroscopy (“AAS”). Samples that return values
greater than 10 g/t gold using this technique are then re-analysed
by fire assay but with a gravimetric finish. Silver is first
analysed by Inductively Coupled Plasma - Atomic Emission
Spectroscopy (“ICP-AES”). Samples that return values greater than
100 g/t silver by ICP-AES are then re analysed by HF-HNO3-HCLO4
digestion with HCL leach and ICP-AES finish. Of these samples those
that return silver values greater than 1,500 g/t are further
analysed by fire assay with a gravimetric finish. Blanks, field
duplicates and certified standards were inserted into the sample
stream as part of Almaden’s quality assurance and control program
which complies with National Instrument 43-101 requirements. In
addition to the in-house QAQC measures employed by Almaden, Kris
Raffle, P.Geo. of APEX Geoscience Ltd., completed an independent
review of blank, field duplicate and certified standard analyses.
All QAQC values falling outside the limits of expected variability
were flagged and followed through to ensure completion of
appropriate reanalyses. No discrepancies were noted within the
drill hole database, and all QAQC failures were dealt with and
handled with appropriate reanalyses.The mineral resource estimate
referenced in this press release was prepared by Gary Giroux,
P.Eng., an independent Qualified Person as defined by NI
43-101.
Exploration Opportunities
The Ixtaca deposit is one of several exploration
targets on the Company’s mineral claims, which cover an area of
high level epithermal clay alteration. The project area is
partially covered by volcanic ash deposits which mask underlying
alteration, potential vein zones and associated soil responses. In
areas devoid of this covering ash, soil sampling has defined
several distinct zones of elevated gold and silver values and trace
elements typically associated with epithermal vein systems. The
Ixtaca zone is one of the largest areas of gold/silver soil
response but it is also one of the areas with the least ash cover
on the project. Management believes that the other altered and
geochemically anomalous areas could represent additional zones of
underlying quartz-carbonate epithermal veining like the Ixtaca
zone.
The potential quantity and grade of these
exploration targets is conceptual in nature. There has been
insufficient exploration and/or study to define these exploration
targets as a Mineral Resource. It is uncertain if additional
exploration will result in these exploration targets being
delineated as a Mineral Resource. The potential quantity and grade
of these exploration targets has not been used in this Study.
Cautionary Note concerning estimates of
Measured, Indicated and Inferred Mineral Resources
This news release uses terms that comply with
reporting standards in Canada and certain estimates are made in
accordance with Canadian National Instrument 43-101 (“NI
43-101”). NI 43-101 is a rule developed by the Canadian
Securities Administrators that establishes Canadian standards for
all public disclosure an issuer makes of scientific and technical
information concerning mineral projects. These standards
differ significantly from the requirements of the U.S. Securities
and Exchange Commission (“SEC”), and mineral resource information
contained herein may not be comparable to similar information
disclosed by United States companies.
This news release uses the terms “measured
mineral resources”, “indicated mineral resources” and “inferred
mineral resources” to comply with reporting standards in
Canada. We advise United States investors that while such
terms are recognized and required by Canadian regulations, the SEC
does not recognize them. United States investors are
cautioned not to assume that any part or all of the mineral
deposits in such categories will ever be converted into mineral
reserves under SEC definitions. These terms have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. Therefore, United
States investors are also cautioned not to assume that all or any
part of the “measured mineral resources”, “indicated mineral
resources” or “inferred mineral resources” exist. In
accordance with Canadian rules, estimates of “inferred mineral
resources” cannot form the basis of pre-feasibility or other
economic studies. It cannot be assumed that all or any part
of the “measured mineral resources”, “indicated mineral resources”
or “inferred mineral resources” will ever be upgraded to a higher
category.
About AlmadenAlmaden Minerals
Ltd. owns 100% of the Ixtaca project in Puebla State, Mexico,
subject to a 2.0% NSR royalty held by Almadex Minerals Ltd. The
Ixtaca Gold-Silver Deposit was discovered by Almaden in 2010.
On Behalf of the Board of Directors
“Morgan Poliquin”
Morgan J. Poliquin, Ph.D., P.Eng.President, CEO and
DirectorAlmaden Minerals Ltd.
Forward Looking Statements
Neither the Toronto Stock Exchange (TSX) nor the
NYSE American have reviewed or accepted responsibility for the
adequacy or accuracy of the contents of this news release which has
been prepared by management. Statements contained in this news
release that are not historical facts are “forward-looking
information” or “forward-looking statements” (collectively,
“Forward-Looking Information”) within the meaning of applicable
Canadian securities legislation and the United States Private
Securities Litigation Reform Act of 1995. Forward Looking
Information includes, but is not limited to, disclosure regarding
possible events, conditions or financial performance that is based
on assumptions about future economic conditions and courses of
action; the timing and costs of future activities on the Company’s
properties, including but not limited to development and operating
costs in the event that a production decision is made; success of
exploration, development and environmental protection and
remediation activities; permitting time lines and requirements;
requirements for additional capital; the potential effect of
proposed notices of environmental conditions relating to mineral
claims; planned exploration and development of properties and the
results thereof; planned expenditures and budgets and the execution
thereof. In certain cases, Forward-Looking Information can be
identified by the use of words and phrases such as “plans”,
“expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”,
“potential”, “confirm” or “does not anticipate”, “believes”,
“contemplates”, “recommends” or variations of such words and
phrases or statements that certain actions, events or results
“may”, “could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”. Statements concerning mineral resource and mineral
reserve estimates may also be deemed to constitute Forward-Looking
Information to the extent that they involve estimates of the
mineralization that may be encountered if the Ixtaca Project is
developed. In preparing the Forward-Looking Information in this
news release, the Company has applied several material assumptions,
including, but not limited to, that any additional financing needed
will be available on reasonable terms; the exchange rates for the
U.S., Canadian, and Mexican currencies will be consistent with the
Company’s expectations; the taxation policies which will apply to
the Ixtaca Project will be consistent with the Company’s
expectations, that the current exploration, development,
environmental and other objectives concerning the Ixtaca Project
can be achieved and that its other corporate activities will
proceed as expected; that the current price and demand for gold and
silver will be sustained or will improve; that general business and
economic conditions will not change in a materially adverse manner,
that third party contractors and equipment, including the Rock
Creek mill, will be available and operate as anticipated, and that
all necessary governmental approvals for the planned exploration,
development and environmental protection activities on the Ixtaca
Project will be obtained in a timely manner and on acceptable
terms; the continuity of the price of gold and silver, economic and
political conditions and operations. Forward-Looking Information
involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by the
Forward-Looking Information. Such risks and other factors include,
among others, risks related to the availability of financing on
commercially reasonable terms and the expected use of proceeds;
operations and contractual obligations; changes in exploration
programs based upon results of exploration; changes in estimated
mineral reserves or mineral resources; future prices of metals;
availability of third party contractors; availability of equipment;
failure of equipment to operate as anticipated; failure of the Rock
Creek Mill to arrive on site or operate as expected; accidents,
effects of weather and other natural phenomena and other risks
associated with the mineral exploration industry; environmental
risks, including environmental matters under Mexican rules and
regulations; impact of environmental impact assessment requirements
on the Company’s planned exploration and development activities on
the Ixtaca Project; certainty of mineral title; community
relations; delays in obtaining governmental approvals or financing;
fluctuations in mineral prices; the Company’s dependence on one
mineral project; the nature of mineral exploration and mining and
the uncertain commercial viability of certain mineral deposits; the
Company’s lack of operating revenues; governmental regulations and
the ability to obtain necessary licences and permits; risks related
to mineral properties being subject to prior unregistered
agreements, transfers or claims and other defects in title;
currency fluctuations; changes in environmental laws and
regulations and changes in the application of standards pursuant to
existing laws and regulations which may increase costs of doing
business and restrict operations; risks related to dependence on
key personnel; estimates used in financial statements proving to be
incorrect; as well as those factors discussed the section entitled
"Risk Factors" in Almaden's Annual Information Form and Almaden's
latest Form 20-F on file with the United States Securities and
Exchange Commission in Washington, D.C. Although the Company has
attempted to identify important factors that could affect the
Company and may cause actual actions, events or results to differ
materially from those described in Forward-Looking Information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that Forward-Looking Information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on Forward-Looking
Information. Except as required by law, the Company does not assume
any obligation to release publicly any revisions to Forward-Looking
Information contained in this news release to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Contact Information:
Almaden Minerals Ltd. Tel.
604.689.7644Email: info@almadenminerals.comhttp://www.almadenminerals.com/