- 43% increase in Net Present Value from 2011 FS
- $54 M decrease in Total
Capital
- 13.4 M oz/yr payable Ag (yrs 1-5); 8.4 M oz/yr LOM
- All-in Sustaining Cost $(0.23)/oz (yrs 1-5); $3.85/oz LOM
VANCOUVER, June 2,
2015 /CNW/ - Bear Creek Mining Corporation (TSX
Venture: BCM) ("Bear Creek" or the "Company") is pleased to
announce the results of an updated feasibility study for its 100%
owned Corani silver-lead-zinc deposit (the "2015 Corani Feasibility
Study"), which, among other things, results in a reduction in total
costs and optimization of the metallurgy and mine plan.
Corani hosts one of the world's largest
undeveloped silver-lead-zinc deposits and is a critical component
of Bear Creek's project portfolio. It is located in the Department
of Puno in southern Peru, in a
mining-friendly area with favourable access and good infrastructure
and was discovered by the Company in 2006. A number of economic
studies of the Corani deposit have been conducted on behalf of Bear
Creek, including a feasibility study entitled "Corani Project, Form
43-101F1 Technical Report, Feasibility Study" dated December 22, 2011 (the "2011 Corani Feasibility
Study"). An Environmental and Social Impact Assessment (the "ESIA")
for Corani was approved by the government of Peru in 2013.
The 2015 Corani Feasibility Study, led by M3
Engineering & Technology Corporation ("M3"), Tucson, AZ with support by Global Resource
Engineering ("GRE"), Denver, CO
and others, reflects significant modifications to the
processing and construction designs of the Corani operation as
envisioned in the 2011 Corani Feasibility Study. These
modifications include: dry-stacking of the tailings resulting in
elimination of the tailings impoundment and fresh water storage
dams; revision of the mine sequencing plan and new metallurgical
recovery modeling with higher confidence in recovery predictions;
and reconfiguration of infrastructure layouts and equipment
selection for certain areas of the processing facility. As a
result, total capital costs have been reduced, the proposed Corani
operation is expected to be more efficient, and its physical and
environmental footprint are expected to be reduced. The optimized
2015 Corani Feasibility Study has defined a large, low-cost,
economically robust, low-impact operation that the Company believes
will benefit shareholders and local and national Peruvian
stakeholders alike.
Bear Creek will host a conference call to
discuss the results of the 2015 Corani Feasibility Study on
Tuesday, June 2, 2015 at 8:00 am Pacific time. Call-in information is
provided at the bottom of this release. A corresponding
presentation entitled "2015 Corani Feasibility Study" is available
on the Company's website (www.bearcreekmining.com).
Highlights of the 2015 Corani Feasibility Study
|
2015 Corani
Feasibility
Study
Results
|
Variance from
2011
Corani Feasibility
Study
|
Net Present Value
(1)
|
$660 M
|
+ $197 M
|
Internal Rate of
Return (2)
|
20.9%
|
+ 3.3%
|
Payback
(3)
|
3.6 years
|
- 0.2
years
|
Total
Capital
|
$664 M
|
- $54 M
|
Initial
Capital
|
$625 M
|
+ $51 M
|
Sustaining
Capital
|
$39 M
|
- $105 M
|
AISC (4)
per oz Silver (by-product basis), Years 1-5
|
$(0.23)
|
- $0.14
|
AISC (4)
per oz Silver (by-product basis), Life of Mine
|
$3.85
|
- $0.71
|
AISC (4)
per oz Silver (co-product basis), Life of Mine
|
$11.13
|
+ $0.44
|
Contained
Silver(5)
|
228 M oz
|
- 42 M oz
|
Contained
Lead(5)
|
2,768 M
lbs
|
- 0.345 M
lbs
|
Contained
Zinc(5)
|
1,784 M
lbs
|
+ 0.086 M
lbs
|
Contained Silver
Equivalent (5)
|
449 M oz Ag
Eq.
|
-9.6%
|
Silver
Recovery
|
71.9%
|
+7.7%
|
Lead
Recovery
|
62.8%
|
-8.3%
|
Zinc
Recovery
|
60.1%
|
+8.5%
|
Avg. Annual Silver
Production Life of Mine
|
8.4 M
oz/year
|
No change
|
Stripping
Ratio
|
1.68
|
-0.01
|
Mine Life
(extraction)
|
18 years
|
No change
|
Mine Life
(processing)
|
18 years
|
-2 years
|
Mill
Capacity
|
22,500 tonnes per
day
|
No change
|
(1)
|
5% discount rate,
after tax, at base case metal prices ($20/ounce silver, $0.95/pound
lead and $1.00/pound zinc)
|
(2)
|
After tax, at base
case metal prices
|
(3)
|
After tax
|
(4)
|
All-In Sustaining
Costs ("AISC") are per payable oz, and are calculated as cash
operating costs + sustaining capital costs + reclamation and
closure costs + social costs
|
(5)
|
see "2015 Corani
Reserve and Resource Estimates" below, and regulatory footnotes at
the end of this document for calculation methods and assumptions
used in the Mineral Reserve and Mineral Resource estimates
presented herein.
|
Andrew Swarthout,
President and CEO of the Company, commented "Corani remains one of
the world's largest undeveloped silver-base metal deposits and is
the key driver for growth at Bear Creek. As a result of the
modifications to the Corani mine design in the updated 2015 Corani
Feasibility Study, we have created a more compact, efficient and
cost-effective operation with a smaller physical and environmental
footprint, which we expect will result in a shorter and less costly
path to permitting. We were able to further refine the
geo-metallurgical model and mine sequencing, which led to an 8%
increase in overall silver recovery with a 7% increase in silver
reporting to the lead concentrate relative to zinc, partially
offsetting the effects of the small ore reserve
reduction."
Mr. Swarthout continues, "As a result of a
reduction in total capital costs and optimization of the metallurgy
and mine plan, the key financial metrics of the Corani project were
significantly improved, including a 43% increase in the project's
after-tax Net Present Value (at a 5% discount rate), which is now
estimated at $660 M. Even using the
June 1, 2015 silver, lead and zinc
prices of $16.71/oz, $0.87/lb and $0.98/lb respectively, Corani has a Net Present
Value of $372 M and a 14.9% Internal
Rate of Return. Add to this the low all-in sustaining costs
per payable silver ounce (below zero in the first five years and
$3.85 over the life of the mine on a
by-product basis) and it is clear Corani is a robust, undeveloped
silver-base metal deposit even at current depressed metal
prices."
Key Modifications Included in the 2015 Corani
Feasibility Study
Optimized Processing
Dry-stacking of tailings: The change to
dry-stacking of concentrator tailings is the most significant
optimization in the 2015 Corani Feasibility Study and had a
substantial effect on the project economics as well as the physical
and environmental footprint of the proposed operation. Dry-stacking
eliminates the need for the tailings dam and one of the fresh water
storage dams, and co-disposal of the tailings and waste-rock
eliminates one of the waste rock dump sites envisioned in the 2011
Corani Feasibility Study. Dry-stacking involves filtering the
tailings to remove water, which is then recycled to the
concentrator, reducing the water requirements. The filtered
tailings are then mixed with waste rock and stacked in "lifts"
within already-approved waste rock disposal sites. Dry-stacking
technology is used successfully at various mining operations
world-wide, including the Cerro Lindo silver-base metal mine in
Peru. Not only does dry-stacking
create a smaller, more efficient project footprint and reduce the
total capital requirements for Corani (see "Capital and All-In
Sustaining Costs", below), elimination of the tailings dam and
reduction of the project footprint will save time and lower the
engineering costs associated with securing a mine permit.
Primary Crusher and grinding mills: The
selection of the primary crusher, from a gyratory to a jaw reduced
the amount of earthwork and the footprint required, which resulted
in capital expenditure ("CapEx") savings. The sizes for both the
Semi-Autogenous Grinding ("SAG") and ball mills remained relatively
unchanged, however, the size of the motors for both mills increased
from 5,500 kW to 7,000 kW due to the additional grinding test work
results.
Flotation: The elimination of the 3rd
cleaner scavenger and the change of the 2nd cleaner mechanical
cells to one column cell, reduced the equipment footprint and also
provided CapEx savings for both lead and zinc circuits. The change
to a column cell for the 2nd stage cleaners will also allow to
maximize lead and zinc grades in each circuit respectively.
Regrind mills: The change of the regrind
mills from ball mills to tower mills, reduced the footprint of the
equipment and resulted in additional CapEx savings.
Optimized Mine Sequence and Improvements in
Recoveries
Mine Sequencing: The mine sequencing plan
has been modified in order to complete mining from the Corani Este
pit in the 6th year to begin accepting co-disposal of
waste rock and filtered tailings. This allows for shorter haul
distances and eliminates or reduces the size of the waste dump
facilities, which is expected to result in lower operating costs,
easier permitting and reduced final mine closure costs. Although
the revised mine sequencing adds approximately $17 M in pre-production stripping, this capital
expenditure is far outweighed by the expected operating and capital
cost benefits.
Metallurgy and Recoveries: Significant
improvements were made in the understanding of metal recovery
stemming from a thorough analysis of the metallurgical test work
data and the associated geochemical data base. Previously ore
within each metallurgical type was treated fairly homogenously. The
new method allowed for the estimation of recovery in a distinct and
predictable metallurgical manner, resulting in continuous recovery
model that was applied to each block of the block model based on
geology and mineralogy. Ultimately, this predictive model resulted
in higher-confidence in metallurgical recoveries that led to
improvements in mine planning.
Average Recoveries
(Life of Mine) and Payable Metals
|
|
|
2015 Corani
Feasibility Study
|
2011
Corani
Feasibility
Study
|
Lead
Concentrate
|
Lead
|
62.80%
|
71.11%
|
Silver
|
67.10%
|
60.29%
|
Zinc
Concentrate
|
Zinc
|
60.10%
|
51.58%
|
Silver
|
4.83%
|
3.90%
|
Total
|
Silver
|
71.93%
|
64.19%
|
Lead
|
62.80%
|
71.11%
|
Zinc
|
60.10%
|
51.58%
|
Total Payable
Metals
|
Silver
|
151 M oz
|
160 M oz
|
Lead
|
1,652M lbs
|
2,102 M
lbs
|
Zinc
|
910 M lbs
|
743 M lbs
|
Overall, expected silver and zinc recoveries
increased by approximately 8% each and lead recoveries decreased by
8% from those cited in the 2011 Corani Feasibility Study. Because
of the better understanding of metallurgical recoveries, some of
the transitional materials (mixed oxide and sulfide) were
eliminated from the mine plan as a result of low estimated
flotation recovery, reducing the silver reserves by approximately
15.5% (see "2015 Corani Reserve and Resource Estimates" below) but
only reducing the payable silver by 5.6% from 160 M oz in the 2011
Corani Feasibility Study to 151 M oz in the 2015 Corani Feasibility
Study, thus achieving the objective of higher efficiencies in
mining and processing.
Optimized Layout
The 2015 Corani Feasibility Study optimizations
include various layout modifications that benefit the project
economics. The crusher was relocated to create shorter and more
efficient haul profiles. As mentioned previously, one waste dump
(the East Dump) has been eliminated and pit backfilling has
accelerated. Additionally, the South Water pond is no longer
necessary due to reduction in water consumption with the dry
tailings disposal method.
Importantly, as a result of the optimized layout,
the Corani mine and processing infrastructure is entirely located
on land to which Bear Creek owns 100% of the surface rights.
Key Financial and Technical Metrics
The 2015 Corani Feasibility Study was prepared
using cost bids, estimates and production forecasts provided by
qualified engineering consulting groups led by M3 with significant
contributions by GRE and Tom
Shouldice (metallurgical consultant). A Technical Report
supporting the results presented herein will be prepared and filed,
in compliance with National Instrument 43-101, within 45 days of
the date of this release.
Base Case Assumptions
The following key assumptions were used in the
2015 Corani Feasibility Study:
Metal prices used to
estimate Mineral Reserves
|
$20/oz Ag, $0.95/lb
Pb, $1.00/lb Zn
|
Metal prices used to
estimate Mineral Resources
|
$30/oz Ag, $1.425/lb
Pb, $1.50/lb Zn
|
Metal prices used for
Economic Analysis
|
$20/oz Ag, $0.95/lb
Pb, $1.00/lb Zn
|
Average Annual Ore
Production Life of Mine
|
7,650,000
tonnes
|
Overall Silver
Recovery (into lead and zinc concentrate)
|
71.9%
|
Overall Lead Recovery
(into lead concentrate)
|
62.8%
|
Overall Zinc Recovery
(into zinc concentrate)
|
60.1%
|
Total Processed
tonnes
|
137,698,000
|
Average Mill Silver
Grade
|
51.6 g/t
|
Average Mill Lead
Grade
|
0.91%
|
Average Mill Zinc
Grade
|
0.59%
|
Payable oz of Silver
(net of smelter payment terms)
|
151,049,000
|
Payable lbs of Lead
(net of smelter payment terms)
|
1,651,849,000
|
Payable lbs of Zinc
(net of smelter payment terms)
|
910,942,000
|
Overall stripping
ratio (waste:ore)
|
1.68:1
|
Life of Mine (ore
extraction and processing years)
|
18
|
Project Economics and Sensitivity
Case
|
IRR
|
NPV (1)
@5%
(000's)
|
NPV (1)
@0%
(000's)
|
Base Case
(2)
|
20.9%
|
$659,677
|
$1,236,632
|
Recoveries +
10%
|
24.7%
|
$862,821
|
$1,558,926
|
Recoveries
-10%
|
16.8%
|
$456,132
|
$913,705
|
Metal Prices
+10%
|
25.3%
|
$898,216
|
$1,616,060
|
Metal Prices
-10%
|
16.1%
|
$420,083
|
$855,417
|
Initial Capital Cost
+10%
|
18.5%
|
$607,115
|
$1,188,245
|
Initial Capital Cost
-10%
|
23.7%
|
$710,167
|
$1,279,366
|
Spot Metal Prices
(3)
|
14.9%
|
$372,170
|
$783,250
|
(1)
|
Net Present Value
after tax
|
(2)
|
Base Case calculated
using metal prices of $20/oz Silver, $0.95/lb Lead and $1.00/lb
Zinc
|
(3)
|
Spot prices on June
1, 2015 were $16.71/oz Silver, $0.87/lb Lead and $0.98/lb
Zinc
|
The operating efficiencies resulting from the
optimized Corani mine design and mine plan had a significant effect
on the economics of the project. The Net Present Value (after tax
and at a 5% discount rate) increased by 43% from $463 M in the 2011 Corani Feasibility Study to
$660 M in the 2015 Corani Feasibility
Study, and the Internal Rate of Return increased from 17.6% in 2011
to 20.9% today. The financial model is based on silver, lead and
zinc prices of $20.00/oz,
$0.95/lb and $1.00/lb respectively, which represent the
three-year backward and two-year forward metal prices, weighted
60:40, in keeping with the Company's policy and industry standards,
and takes into account current Peruvian tax and royalty rates.
(Metal prices used in the 2011 Corani Feasibility Study were
$18.00/oz silver, $0.85/lb lead and $0.85/lb zinc.)
Capital and All-In Sustaining Costs
|
2015
Corani
Feasibility
Study
|
2011
Corani
Feasibility
Study
|
Initial
Capital
|
$625 M
|
$574 M
|
Sustaining
Capital
|
$39 M
|
$144 M
|
Total Capital
Expenditures
|
$664 M
|
$718 M
|
AISC (1)
per ounce of Silver(by-product basis), Years 1-5
|
$(0.23)
|
$(0.09)
|
AISC (1)
per ounce Silver (by-product basis), Life of Mine
|
$3.85
|
$4.56
|
AISC (1)
per ounce of Silver, (co-product basis) Life of Mine
|
$11.13
|
$10.69
|
(1)
|
All-In Sustaining
Costs ("AISC") are per payable oz, and are calculated as cash
operating costs + sustaining capital costs + reclamation and
closure costs + social costs
|
Initial capital costs are estimated at
$625 M in the 2015 Corani Feasibility
Study compared with $574 M in the
2011 Corani Feasibility Study. The increase in estimated initial
capital is primarily a result of cost escalation and increased
expenditures related to construction of roads, a power line and the
mine camp, as well as increases in the cost of mine construction
(including additional pre-production stripping), partially offset
by capital savings stemming from elimination of the tailings dam.
Sustaining capital costs were substantially reduced to $39 M in the 2015 Corani Feasibility Study
compared to $144 M in the 2011 Corani
Feasibility Study. Decreases in ongoing mining costs (as a result
of leasing of equipment), ongoing process plant and tailings dam
capital requirements contributed to this significant reduction in
sustaining capital. The net effect of these changes is a decrease
in total capital requirements of $54
M.
All-in sustaining costs per ounce of silver (net
of base metal credits) are estimated in the 2015 Corani Feasibility
Study to be $(0.23) for the first
five years of the operation and $3.85
over the 18 year mine life. In the 2011 Corani Feasibility Study
these metrics were ($0.09) and
$4.56 respectively. On a co-product
basis, the all-in sustaining costs, as calculated in the 2015
Corani Feasibility Study, are well below both the base case metal
prices used herein and the spot silver, lead and zinc prices on
June 1, 2015.
2015 Corani Reserve and Resource Estimates
Mineral
Reserves
|
|
Contained
Metal
|
Equivalent
Ounces
|
Category
|
Tonnes
(000's)
|
Silver
g/t
|
Lead
%
|
Zinc
%
|
Silver
Million
oz
|
Lead
Million
lb
|
Zinc
Million
lb
|
Eq.
Silver
M oz
|
Eq.
Silver
g/t
|
Proven
|
19,855
|
69.1
|
1.09
|
0.72
|
44.1
|
478.7
|
313.4
|
82.5
|
129.2
|
Probable
|
117,843
|
48.6
|
0.88
|
0.57
|
184.3
|
2,289.2
|
1,470.7
|
366.5
|
96.8
|
Proven &
Probable
|
137,698
|
51.6
|
0.91
|
0.59
|
228
|
2,768
|
1,784
|
449
|
101.4
|
Note: see regulatory footnotes below for
calculation methods and assumptions used to estimate the Mineral
Reserves presented above.
Mineral Resources
in Addition to Reserves
|
|
Contained
Metal
|
Category
|
Tonnes
(000's)
|
Silver
g/t
|
Lead
%
|
Zinc
%
|
Silver
Million
oz
|
Lead
Million
lb
|
Zinc
Million
lb
|
Measured
|
14,360
|
32.01
|
0.34
|
0.19
|
14.8
|
108.4
|
61.6
|
Indicated
|
83,749
|
25.37
|
0.37
|
0.28
|
68.3
|
682.2
|
512.8
|
Measured &
Indicated
|
98,109
|
26.34
|
0.37
|
0.27
|
83.1
|
790.6
|
574.4
|
Inferred
|
39,953
|
37.20
|
0.58
|
0.40
|
47.8
|
510.6
|
352.4
|
Note: see regulatory footnotes below for
calculation methods and assumptions used to estimate the Mineral
Resources presented above.
The 2015 Corani Feasibility Study re-calculated
an estimate of Mineral Reserves and Mineral Resources contained
within the Corani deposit based on the optimized mine plan and
utilizing updated metal prices. No new drill data (beyond that
which was used in the 2011 Corani Feasibility Study) were
incorporated into the Mineral Reserve and Mineral Resource
estimates above. As a result of the metal price updates and mine
plan revisions included in the 2015 Corani Feasibility Study,
primarily the elimination of 2 years' production of low-grade
transitional materials (mixed oxide and sulfide), Proven and
Probable silver reserves decreased 15.5% (from 270 M oz to 228 M
oz) in comparison to the 2011 Corani Feasibility Study. As
discussed above in "Optimized Mine Sequence and Improvements in
Recoveries - Metallurgy and Recoveries" however, improvements in
the recovery of silver offset the majority of this reduction in
silver reserves, such that the payable silver was reduced only 5.6%
from 160 M oz in the 2011 Corani Feasibility Study to 151 M oz in
the 2015 Corani Feasibility Study.
Going Forward
The design and operating
improvements incorporated in the 2015 Corani Feasibility Study are
expected to require only a modification of the existing approved
ESIA, without the necessity for additional public hearings, as they
are entirely located within the previously approved project
footprint. Furthermore, as the environmental impact of the proposed
Corani operation has been reduced as a result of the modifications
described above, the Company anticipates final permitting timelines
will shorten and costs will be lower than previously
anticipated.
Bear Creek's plans for the Corani project are to
focus on preparing for development of the project starting with the
preparation and submission of the amended ESIA in the third quarter
of 2015. Concurrently, the Company will commence the mine
permitting process (of which the amended ESIA will form a key
component). The Company will also commence evaluation of potential
mine financing options and expects to enter into discussions with
potential financing partners. The goal of these activities is to
ensure Bear Creek has the information, permits, approvals and
relationships in place to consider a production decision pending
issuance of a construction permit as early as 2016.
As always, the Company will continue to cultivate
the social licence it has earned with the Corani communities by
maintaining the open, honest and transparent relationships it has
established and by continuing its funding of the community trust
established through a Life of Mine Agreement between the Company,
the District of Carabaya and five surrounding communities to
finance projects that benefit the communities at large such as
schools, medical facilities, and other infrastructure.
Conference Call
A conference call to discuss the results of the
2015 Corani Feasibility Study will be held on Tuesday, June 02, 2015 at 8:00 am Pacific time, and a corresponding
presentation entitled "2015 Corani Feasibility Study" is available
on the Company's website (www.bearcreekmining.com). To participate
in the conference call, use the following dial-in numbers and
conference ID:
Local
Toronto:
|
416-764-8688
|
Local
Vancouver:
|
778-383-7413
|
North America
toll-free:
|
1-888-390-0546
|
Conference
ID:
|
81692713#
|
A replay of the conference call will be available
within 24 hours. The replay numbers and passcode are:
Local
Toronto:
|
416-764-8677
|
North America
toll-free:
|
1-888-390-0541
|
Conference
ID:
|
692713#
|
On behalf of the Board of Directors,
Andrew Swarthout
President and CEO
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
National Instrument 43-101 ("NI 43-101")
Disclosure
All of Bear Creek's exploration programs and
pertinent disclosure of a technical or scientific nature are
prepared by or prepared under the direct supervision of
Andrew Swarthout, P.Geo., President
and CEO, a Qualified Person ("QP") as defined in NI 43-101.
The 2015 Corani Feasibility Study was prepared by
a team of independent engineering consultants. Daniel Neff, PE, of
M3 acted as the Independent QP as defined by NI 43-101 and
additionally is the QP responsible for the market studies,
infrastructure, process plant capital and operating costs, economic
analysis, conclusions and recommendations portions of the study.
Tom Shouldice, PEng, independent
consultant, is the QP for the metal recoveries and metallurgical
testing sections. Rick Moritz, MMSA,
Principal Mining and Process Engineer, of GRE is the QP for
portions of the metallurgical analysis. Terre Lane, MMSA, Principal Mining Engineer, of
GRE is the QP for the resource and reserve estimation and mining
methods and mine capital and operating cost portions of the
study. Laurie Tahija, PE, of M3 is the QP for the plant
process engineering portion of the study. Chris Chapman, PE
of GRE is the QP for the geotechnical, environmental,
infrastructure, waste stockpile and tailings designs were prepared
by. Each of these individuals has read and approves the respective
scientific and technical disclosure contained in this news
release.
The methods used in determining and reporting the
mineral reserves and resources presented herein are consistent with
the CIM Best Practices Guidelines. Numbers may not total due to
rounding.
Assumptions used in the 2015 Corani Feasibility
Study Mineral Reserve estimate and economic analysis by GRE and M3
are:
- Silver Price=$20.00/oz; Lead
Price=$0.95/lb; Zinc
Price=$1.00/lb.
- Variable NSR cut-off values from $11/tonne to $23/tonne at different times in the production
schedule to manage mill requirements and maximize project
economics.
- Metallurgical testing of the Corani ore started in 2005 and
over 500 batch floatation tests were completed since. The previous
interpretation of test results was a classification of recovery
performance into 4 "metallurgical types" from 9 mineralization ore
codes applying an average recovery to each metallurgical type.
These groups exhibited a large variation in flotation recovery.
Recent analysis of metallurgical test work indicates that recovery
is strongly related to the presence and/or absence of oxide
minerals. Using advanced statistical methods (including
classification cluster analysis and nonparametric regression
analysis), zinc grade, mineralogy from geologic logs, and elevation
were identified as good indicators of oxidation and as a result,
good predictors of recovery. These parameters were used to develop
statistical numerical models to much more accurately predict
recovery. Validation testing shows the new model projections of
recovery closely fit all available metallurgical test work
data.
- The new recovery model was used for pit optimization, mine
planning, and production scheduling. The overall result was
approximately 8% increase in silver and zinc recovery and an 8%
decrease in lead recovery from those cited in the 2011 Feasibility
Study.
The Mineral Resource pit shell is a Whittle pit
based on the following input assumptions:
- Silver Price=$30.00/oz; Lead
Price=$1.425/lb; Zinc
Price=$1.50/lb.
- Mixed oxide material that was not economic by flotation
processing was not included in the Mineral Reserves, however, this
material is included in the Mineral Resources.
- The Mineral Resource cut-off was $9.49/tonne processing cost, plus $1.51 G&A cost which represents the internal
process cut-off.
- The potentially leachable mixed oxide material that fell within
the Mineral Resource pit shell was included as a silver resource
cut-off grade of 15g/tonne and block elevation above 4900
meters.
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
All diamond drilling at Corani has been performed
using HQ diameter core with recoveries averaging greater than 95%.
Core is logged and split on site under the supervision of Bear
Creek geologists. Sampling is done on two-meter intervals and
samples are transported by Company staff to Juliaca, Peru for direct shipping to ALS Chemex,
Laboratories in Lima, Peru. ALS
Chemex is an ISO 9001:2000-registered laboratory and is preparing
for ISO 17025 certification. Silver, lead, and zinc assays utilize
a multi-acid digestion with atomic absorption ("ore-grade assay
method"). The QC/QA program includes the insertion every 20th
sample of known standards prepared by SGS Laboratories,
Lima. A section in Bear Creek's
website is dedicated to sampling, assay and quality control
procedures.
Caution Regarding Forward Looking
Information
This document contains "forward-looking
information" within the meaning of Canadian securities legislation
and "forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995. This
information and these statements, referred to herein as
"forward-looking statements" are made as of the date of this news
release or as of the date of the effective date of information
described in this news release, as applicable. Forward-looking
statements relate to future events or future performance and
reflect current estimates, predictions, expectations or beliefs
regarding future events and include, without limitation, statements
with respect to: (i) the amount of mineral reserves and mineral
resources; (ii) the amount of future production over any period;
(iii) net present value and internal rates of return of the
proposed mining operation; (iv) capital costs, including start-up,
sustaining capital and reclamation/closure costs; (v) operating
costs, including credits from the sale of silver, lead and zinc;
(vi) strip ratios and mining rates; (vii) expected grades and
payable ounces and pounds of metals and minerals; (viii) expected
processing recoveries; (ix) expected time frames; * prices of
metals and minerals; and (xi) mine life. Any statements that
express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects", "anticipates", "plans", "projects",
"estimates", "envisages", "assumes", "intends", "strategy",
"goals", "objectives" or variations thereof or stating that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of
historical fact and may be forward-looking statements.
All forward-looking statements are based on the
Company's or its consultants' current beliefs as well as various
assumptions made by and information currently available to them.
These assumptions include, without limitation: (i) the presence of
and continuity of metals at the project at modeled grades; (ii) the
capacities of various machinery and equipment; (iii) the
availability of personnel, machinery and equipment at estimated
prices; (iv) exchange rates; (v) metals and minerals sales prices;
(vi) appropriate discount rates; (vii) tax rates and royalty rates
applicable to the proposed mining operation; (viii) financing
structure and costs; (ix) anticipated mining losses and dilution; *
metals recovery rates, (xi) reasonable contingency requirements;
and (xiii) receipt of regulatory approvals on acceptable terms.
Although management considers these assumptions to be reasonable
based on information currently available to it, they may prove to
be incorrect. Many forward-looking statements are made assuming the
correctness of other forward looking statements, such as statements
of net present value and internal rate of return, which are based
on most of the other forward-looking statements and assumptions
herein. The cost information is also prepared using current values,
but the time for incurring the costs will be in the future and it
is assumed costs will remain stable over the relevant period.
By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general
and specific, and risks exist that estimates, forecasts,
projections and other forward-looking statements will not be
achieved or that assumptions do not reflect future experience. We
caution readers not to place undue reliance on these
forward-looking statements as a number of important factors could
cause the actual outcomes to differ materially from the beliefs,
plans, objectives, expectations, anticipations, estimates
assumptions and intentions expressed in such forward-looking
statements. These risk factors may be generally stated as the risk
that the assumptions and estimates expressed above do not occur,
but specifically include, without limitation, risks relating to
variations in the mineral content within the material identified as
mineral reserves and mineral resources from that predicted;
variations in rates of recovery and extraction; developments in
world metals and minerals markets; risks relating to fluctuations
in the Canadian dollar relative to other currencies; increases in
the estimated capital and operating costs or unanticipated costs;
difficulties attracting the necessary work force; increases in
financing costs or adverse changes to global market conditions and
the terms of available financing, if any; tax rates or royalties
being greater than assumed; changes in development or mining plans
due to changes in logistical, technical or other factors, changes
in project parameters as plans continue to be refined; risks
relating timing and to receipt of regulatory approvals; adverse
changes to government approval processes; the effects of
competition in the markets in which the Company operates;
operational and infrastructure risks; and the additional risks
described in the Company's Annual Information Form, annual
financial statements and management's discussion and analysis for
the year ended December 31, 2014 and
in the feasibility study entitled "Corani Project, Form 43-101F1
Technical Report, Feasibility Study" on December 22, 2011 on SEDAR (www.sedar.com) as
well as in the 2015 Corani Feasibility Study Technical Report to be
filed by the Company on SEDAR within 45 days following the date of
this news release.The foregoing list of factors that may affect
future results is not exhaustive.
When relying on our forward-looking
statements, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events. The
Company does not undertake to update any forward-looking statement,
whether written or oral, that may be made from time to time by the
Company or on behalf of the Company, except as required by
law.
SOURCE Bear Creek Mining Corporation