Kerr Mines Announces Resource Expansion Program and Provides Near Term Objectives
January 08 2019 - 6:30AM
Kerr Mines Inc. (TSX:
KER, OTC: KERMF, FRA: 7AZ1) (“Kerr” or the
“Company”) is pleased to announce that the Phase II
Resource Expansion Program will begin mid- January, 2019 at the
Copperstone Mine located in Arizona, USA. In addition, Kerr is
progressing with environmental and operating permit modifications
and continuing with advanced metallurgical testwork.
Highlights:
- Major Drilling Group International Inc. (“Major”) has been
awarded the contract and is preparing to commence with
drilling.
- 15,000 meter underground resource expansion program will
culminate in Q3 2019 with an updated Resource Statement and Reserve
Study intended to increase the 38,000 gold ounce per annum mine
life by 3-4 years to total of 8 years.
- Phase II Resource Expansion Program consists of exploration
drilling with the purpose of adding new resources and in-fill
drilling for the purposes of converting existing resources to
higher classification and potential inclusion into reserves.
- Existing operating permit modifications are well underway and
are expected to be received by end of Q1 2019.
- All remaining permits required for mine operations and gold
production are in place and do not require modification.
- Metallurgical testing to provide information for detailed gold
processing plant design is expected to be complete during Q1
2019.
- Additional metallurgical testwork to provide the information
needed for the potential monetization of Copper as a by-product
revenue stream.
The Phase II Resource Expansion
ProgramThe 15000 meter resource expansion program will be
stationed from the 4 kilometers of existing underground access and
focused primarily on the C & D Zones of the Copperstone Zone.
The objective of the resource expansion program is to
increase reserves and increase mine life by 3-4 years to a total of
8 years. As such, the focus will be on targeting areas of
Measured and Indicated that are not already included in Proven and
Probable reserves as well as converting Inferred tons to Measured
and Indicated classification. In addition, the program will target
areas along strike and down dip with the intent of growing the
existing Inferred ore tons and ounces of gold. Any newly
identified Inferred will then be available for conversion into
higher classifications with future drilling. The program will be
executed by Major, a multinational provider of drilling services
with a strong record of safety and performance.
Permit ModificationsCertain
existing permits require minor modification in order to facilitate
changes in key attributes of the project as it progresses to gold
production. Among the changes are higher throughput of 600
ore tons per day and the use of a whole ore leaching process for
recovery of the gold ore. State of Arizona environmental
permits governing air and water and the Federal operating permit
are slated to be received by the end of Q1 2019. The approval
of these changes indicate a benefit to the mine economics because
of the increased throughput and the higher recoveries allowed by
leaching as discovered in the 2018 43-101 engineering study (see
press release April 10, 2018), 600 ore tons per day and 95% average
gold recoveries with no concentrate charges.
Metallurgical TestingThe
primary purpose is to validate prior results of average 95%
recovery of gold and to refine reagent consumption and leach
times. The results of these tests will be for final detailed
plant design. The secondary purpose is to perform testing to
evaluate the economic viability of incorporating a
Sulfidization-Acidification-Recycle-Thickening (“SART”) circuit to
the planned mineral processing plant. A SART circuit can reduce
operating costs by reducing reagent consumption and add revenue
from the recovery of Copper from the gold ore.
“We are looking forward to this underground
drilling program and subsequent update of Resources and
Reserves. The Company will release drill results once
adequate drilling has been completed” said Martin Kostuik,
President. “Other catalysts for the Copperstone Mine such as
the receipt of the permit modifications and the conclusion of our
detailed metallurgical testing are significant milestones for the
first part of this year”.
About Kerr Mines Inc. Kerr
Mines is an Emerging American Gold Producer currently advancing the
100% owned, fully permitted past-producing Copperstone Mine project
to production. Copperstone is a high-grade gold project located
along a detachment fault mineral belt in mining-friendly Arizona.
This gold project in Arizona demonstrates tremendous exploration
potential targeting multi-million ounce prospects within a 4,775
hectare (11,800 acres) land package.
PDF Version of 43-101 technical report available:
http://kerrmines.com/wp-content/uploads/KerrCopperstone_PFS_43-101.pdf
YouTube: Copperstone Gold Mine KER:TSX 3 min.
Investor Tour Video
For further information
contact:Claudio Ciavarella Chief Executive
Officercciavarella@kerrmines.com 416-855-9305
Cautionary Note Regarding Forward
Looking Statements This news release contains
forward-looking statements, including current expectations on the
timing of the commencement of production and the rate of
production, if commenced. These forward-looking statements entail
various risks and uncertainties that could cause actual results to
differ materially from those reflected in these forward-looking
statements. Such statements are based on current expectations, are
subject to a number of uncertainties and risks, and actual results
may differ materially from those contained in such statements.
These uncertainties and risks include, but are not limited to, the
strength of the Canadian economy; the price of gold; operational,
funding, and liquidity risks; the degree to which mineral
resource estimates are reflective of actual mineral resources; and
the degree to which factors which would make a mineral deposit
commercially viable are present; the risks and hazards associated
with underground operations. Risks and uncertainties about Kerr
Mines’ business are more fully discussed in the Company's
disclosure materials, including its annual information form and
MD&A, filed with the securities regulatory authorities in
Canada and available at www.sedar.com and readers are urged to
read these materials. Kerr Mines assumes no obligation to update
any forward-looking statement or to update the reasons why actual
results could differ from such statements unless required by
law. Neither TSX nor its Regulation Services Provider (as
that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this release and no
stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.