VANCOUVER, Nov. 2, 2018 /CNW/ - KORE Mining Ltd.
("KORE" or the "Company", formerly Eureka Resources
Inc., "Eureka") is pleased to announce the resumption of
trading on the TSX Venture Exchange under the symbol "KORE" with a
new Board of Directors and Management. KORE is a development stage
company that offers exposure to precious metals exploration and
development in North America, with
a corporate strategy focused on permitting of its California development projects and growth
through discovery on its North American portfolio.
Highlights
- The Company has completed the amalgamation transaction and
concurrent financing described in the Company's press releases
dated July 24, 2018 and October 30, 2018, resulting in a total of
71,241,949 issued and outstanding common shares;
- New directors and management of KORE have been appointed upon
closing of the amalgamation of the Company as previously announced
on February 27, 2018, April 6, 2018 and July 24,
2018;
- A copy of the Information Circular that describes the
transaction in more detail is available under KORE's profile on
SEDAR at www.sedar.com and on KORE's website at
www.koremining.com.
Corporate Website
The Company has re-launched its corporate website
www.koremining.com. KORE encourages investors to check the website
and SEDAR for updates, detailed property information, maps and
diagrams, corporate events and investor materials.
Appointment of New Directors, Executives
In connection with the Closing, all of the directors and
officers of KORE resigned and a new Board of Directors (the
"Board") and management was appointed. The new Board consists of
Adrian Rothwell, James W. Hynes, Brendan
Cahill, Robert J. ("Don")
MacDonald, and Harry
Pokrandt. More information regarding the Board can be found
in the Company's information circular dated June 22, 2018. Details of the Board and
management are outlined below:
Adrian Rothwell, Director,
President & CEO
Mr. Rothwell has over 20 years of experience in the mining and
metals sector. He is currently a director of Fireweed Zinc Ltd.
Previously, he served as an executive of Goldcorp Inc., and Chief
Financial Officer of NuLegacy Gold Corp, Kiska Metals and MBMI
Resources Inc. He is a British Columbia Chartered Professional
Accountant and a member of the Chartered Accountants of
Australia and New Zealand and holds a BA in Economics from
Macquarie University.
James W. Hynes, Director,
Chairman & COO
Formerly with Lafarge and Reperio Resources, Mr. Hynes has over
15 years of experience in the mining and metals sector, and a
Bachelor of Science in Engineering (1999), specializing in
geological and geotechnical engineering, from the University of New Brunswick.
Harry Pokrandt,
Director
Mr. Pokrandt is the former Chief Executive Officer and director
of Hive Blockchain Technologies Ltd. He is an independent director
of Sandspring Resources Ltd. Mr. Pokrandt previously served as
Managing Director of Macquarie Capital Markets Canada Ltd.
(formerly, Orion Securities Inc.) from 1985 to 2015, leading its
Vancouver Metals & Mining Group where he worked on
numerous financing and advisory assignments. He was a director of
Lithium X Energy Corp. prior to its sale and was also a director of
Fiore Exploration Ltd., and BQ Metals Corp.
Don MacDonald,
Director
Currently CEO of NorZinc Ltd. developing the Prairie Creek
zinc-lead-silver mine in the NWT. Mr. MacDonald served as Chief
Financial Officer and then acting Chief Executive Officer at KGHM
International (formerly Quadra FNX Mining) from 2010 until
March 2017. QuadraFNX was purchased
in 2012 for $3 billion by Polish
mining company, KGHM. Mr. MacDonald has over 30 years' experience
in mine development, operation and financing and has been involved
in the operation or development of over twenty mines in North and
South America, the
completion of mine financings totaling $5 billion, and multiple M&A transactions. He
previously served as Chief Financial Officer for NovaGold, De Beers
Canada Mining (formerly Winspear Diamonds) and Dayton Mining. Mr.
MacDonald is a Chartered Professional Accountant, CA and holds
Bachelor's and Master's degrees in Engineering from Oxford
University. He is a director of the Mining Association of
Canada.
Brendan Cahill,
Director
Mr. Cahill has over 15 years of experience in the mining and
metals sector and in corporate finance, and is currently Chief
Executive Officer of Excellon Resources, and a director of Group
Eleven Resources. He was formerly the Vice President of Corporate
Development for Pelangio Exploration Inc. and a lawyer at Davies
Ward Phillips & Vineberg LLP.
Alan Ahlgren, CFO &
Corporate Secretary
Mr. Ahlgren has over 30 years of experience across various
industry sectors, including mining. He is currently CFO of Graphite
One Resources Inc., and formerly the Vice President Finance at
Kinross Gold Corp., CFO at AQM Copper Inc. and First Coal Corp. As
a graduate of the University of
Manitoba with a Bachelor of Commerce in Accounting and
Finance, he is a British Columbia Chartered Professional
Accountant.
About KORE
KORE is a development stage company that offers exposure to
precious metals exploration and development in North America, with a corporate strategy
focused on the advancement of its California development and British Columbia advanced exploration stage
projects.
California,
USA
KORE, indirectly through wholly-owned subsidiaries, owns 100%
interests in the Imperial and Long Valley gold development
projects, located in California,
USA (together, the "Projects"). Combined, most recent
current and historical estimates of resources specify a total of
2,126,000 measured and indicated and 1,784,000 inferred gold
ounces. A Qualified Person has not done sufficient work to classify
the historical estimates as current resources and KORE is not
treating the historical estimates as current resources. Significant
data compilation, re-drilling, re-sampling and data verification
may be required by a Qualified Person before the historical
estimates at the Projects can be classified as current
resources.
Each of the Projects has the potential to host near-surface,
open pit, heap leachable gold deposits. The Projects combine low
technical risk, high advancement potential and a low initial
cost.
PROJECT HIGHLIGHTS
A LARGE GOLD RESOURCE
- Current and historical estimates of 2,126,000oz Measured and
Indicated, 1,784,000oz Inferred with historic Proven & Probable
reserves. A Qualified Person has not done sufficient work to
classify the historical estimates as current resources and Kore is
not treating the historical estimates as current resources.
OVER 141,220 METRES (463,000 FEET) OF DRILLING
- Long Valley drilling has consisted of 869 holes totaling
268,275ft
- Imperial drilling has consisted of 349 RC holes and 9 core
holes totalling 195,047ft
LOW COST MINING, HISTORICAL FEASIBILITY, PEA
- Low strip ratios (Long Valley 1:1, Imperial 2.68:1)
- Feasibility and environmental impact completed by Glamis
(Goldcorp) in 1996 on Imperial
- California gold deposits
deeply oxidized epithermal systems with broad disseminated
zones
- Excellent metallurgy in oxide zones (Long Valley 79%, Imperial
83% recoveries projected)
- Low operating cost projects with weakly cemented gravel
overburden at Imperial and consolidated pyroclastic and moat
sediments at Long Valley
The Imperial Project has a historical feasibility study and
environmental impact study published in 1996 by Glamis Gold (now Goldcorp Inc.). A historical
preliminary economic assessment was prepared in
20121, projecting average production of
120,000 ounces of gold per year over a mine life of 10 years. Long
Valley had a historical preliminary economic assessment performed
in 2008, which projected an internal pre-tax NPV of US$102 million (US$800/oz gold price) on oxide ounces of gold
only (approximately 535,400 ounces of gold).2
Table 1: Combined historical3 estimates of
Kore Project resources4
|
|
|
|
|
|
|
Size
|
Grade
|
Au
|
Source5
|
Au
Cutoff
|
|
(tonnes)
|
(g/t)
|
(oz)
|
|
(g/t)
|
Measured
|
|
|
|
|
|
Long
Valley
|
27,469,000
|
0.55
|
481,000
|
2018
43-101
|
0.17
|
Imperial
|
0
|
0.00
|
0
|
2012 PEA
|
0.00
|
Total
Measured
|
27,469,000
|
0.55
|
481,000
|
|
|
Indicated
|
|
|
|
|
|
Long
Valley
|
39,332,000
|
0.61
|
766,000
|
2018
43-101
|
0.17
|
Imperial
|
45,762,947
|
0.60
|
879,000
|
2012 PEA
|
0.17
|
Total
Indicated
|
85,094,947
|
0.61
|
1,645,000
|
|
|
TOTAL
M&I
|
112,563,947
|
0.59
|
2,126,000
|
|
|
|
|
|
|
|
|
Inferred6
|
|
|
|
|
|
Long
Valley
|
23,560,000
|
0.58
|
486,000
|
2018
43-101
|
0.17
|
Imperial
|
76,334,175
|
0.53
|
1,298,000
|
2012 PEA
|
0.17
|
TOTAL
INFERRED
|
99,894,175
|
0.56
|
1,784,000
|
|
|
_____________________________________
|
1 Imperial
Project: Preliminary Economic Assessment Technical Report October
26, 2012 by Gordon Doerksen, P.Eng. Lois Boxill, P.Eng. et al of
SRK Consulting (Canada) Inc. Prepared for ADR Capital Corp.,
Vancouver, BC. ("2012 PEA")
|
2 Long
Valley Project: Technical Report, February 20, 2003 by Neil Prenn,
P.Eng. and Charles V Muerhoff, P. Geo. of Mine Development
Associates, and Technical Report, Preliminary Assessment, January
9, 2008 by Neil Prenn, P.Eng and Thomas Dyer, P.Eng. of Mine
Development Associates, Reno Nevada. Prepared for Vista Gold Corp.
("2008 PEA").
|
3 The
reader is cautioned that the above referenced "Historical Resource"
is considered historical in nature and as such is based on prior
data and reports prepared by previous property owners. The work
necessary to verify the classification of this mineral resource
estimate has not been completed and the resource estimate,
therefore, cannot be treated as NI 43-101 current resource verified
by a Qualified Person. There can be no assurance that any of the
historical resources, in whole or in part, will ever become
economically viable.
|
4 Mineral
Resources are not mineral Reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of
the mineral Resource will be converted into mineral Reserves. The
estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues.
|
5 Long
Valley Project: "Technical Report and Resource Estimate for the
Long Valley Project, Mono County, California" with an effective
date of April 25, 2018, prepared for the Company by Neil Prenn,
P.E. and Steven I. Weiss, C.P.G. of Mine Development Associates in
accordance with NI 43-101. Cutoff grade 0.17gpt oxide, 0.21gpt
transition and sulfide.
Imperial Project:
Preliminary Economic Assessment Technical Report October 26, 2012
by Gordon Doerksen, P.Eng. Lois Boxill, P.Eng. et al of SRK
Consulting (Canada) Inc. Prepared for ADR Capital Corp., Vancouver,
BC. ("2012 PEA")
|
6 The
quantity and grade of reported Inferred resources in this
estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred resources as an Indicated or
Measured mineral resource and it is uncertain if further
exploration will result in upgrading them to an Indicated or
Measured mineral resource category.
|
The historical mineral resources in this news release were
estimated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM Standing Committee
on Reserve Definitions and adopted by CIM Council.
Imperial Mineral Historical Resource Estimation Parameters: a)
Grade estimation is based on assay samples composited to 20ft
intervals. Grade capping thresholds were determined following a
detailed statistical analysis of the data for the entire
mineralized domains varied from 0.02 to 0.2 ounces per ton (opt)
gold (Au). b) Resource model grade blocks were estimated using
Gemcom GEMSTM modeling software based on a traditional wireframe
interpretation constructed from a sectional interpretation of
drilling data. c) The database for the Imperial model consisted of
349 RC holes totalling 190,134 feet of drilling. A total of 36,361
analyses were considered for use in the resource estimate. d) The
modelled gold mineralized zone was subdivided into three domains
displaying different strike or dip directions with a total length
of 3,200 ft, width up to 800ft and average thickness of 85ft in the
East area and 1,200ft in length, 1,000ft in width and average
thickness of 90ft to 120ft in the West area, dipping from 5 to 35
degrees e) A bulk density value of 0.077 ton per cubic foot was
used and derived from 9 core holes consisting of 32 samples
collected in a 1994 and 1995 drilling program.
Mineral resources were reported within an optimized pit shell using
a gold price of US$1,400/oz with a
process recovery of 80%. g) Process costs used were US$1.50/ton and G&A was US$0.40/ton. Open pit mining costs were
US$1.20/ton and sustaining capex was
US$0.50/ton with open pit slopes of
45 degrees.
Long Valley Historical Mineral Resource Estimation Parameters:
a) Grade estimation is based on assay samples composited to 10ft
intervals. Grade capping thresholds were determined following a
detailed statistical analysis of the data for the entire
mineralized domains and varied from 0.029 to 0.452 ounces per ton
(opt) gold (Au). Capped Au grade in the MDA model was 0.25opt. b)
Resource model grade blocks were estimated using Surpac® modeling
software based on a traditional wireframe interpretation
constructed from a sectional interpretation of drilling data. c)
The database for the Long Valley model consisted of 896 holes,
including 20 core holes, totalling 268,275 feet of drilling. A
total of 47,792 analyses were considered for use in the resource
estimate. d) The modelled gold mineralized zone is contained within
the Hilton Creek South and Southeast zones with a total length of
7,748ft and widths ranging from 500ft to 1,500ft in a generally
flat lying tabular body from 50 to 200ft thickness e) A bulk
density value of 0.065 ton per cubic foot was used and derived from
7 core holes consisting of 12 samples collected by Royal Gold, 10 core holes consisting of 93
samples collected by Amax and 10 samples by MDA. f) Mineral
resources were reported within an optimized pit shell using a gold
price of US$1,500/oz with a heap
recovery of 80% less than 150ft from surface and 90% mill recovery
between 150ft and 200ft. g) Crushing and heap leach costs used were
US$1.40/ton & US$1.80/ton, respectively for heap leach
operations and US$8.60/ton processed
for Sulfide Plant operations. G&A was US$0.63/ton. Open pit mining costs were
US$1.70/ton mined with open pit
slopes of 45 degrees.
British Columbia,
Canada
KORE's 100% owned FG Gold property is an advanced-stage gold
project located in the Cariboo Mining Division. Historical
exploration has established a Measured and Indicated (376,000
ounces) gold resource at an average grade of 0.776 g/t gold, using
a cut-off grade of 0.5 g/t, and an Inferred gold resource (634,900
ounces) at an average grade of 0.718 g/t gold, using a cut-off
grade of 0.5 g/t. Details of the gold resource can be found in
"NI 43-101 Technical Report, Frasergold Exploration Project,
Cariboo Mining Division, dated July 27,
2015" available under the Company's profile on SEDAR or
on the Company's website.
KORE has a 100% interest in the Gold Creek property located in
the Cariboo Mining Division. Gold Creek is a grassroots gold
project neighbouring, and with similar geology to the Spanish
Mountain deposit owned by Spanish Mountain Gold Ltd.
Yukon Territory,
Canada
KORE's 100% owned Luxor property consists of three
non-contiguous claim blocks totalling 360 mining claims.
Luxor is located in the Dawson Range Gold Belt, a district of major
porphyry, breccia and vein occurrences. Containing the Company's
HAV claims, the Luxor property is located adjacent to the Vertigo
discovery of White Gold Corp. (TSXV: WGO). KORE's 100% owned TAK
property is also located in the Dawson Range Gold Belt and consists
of 82 mining claims.
Neighbouring projects include Goldcorp's Coffee project and
White Gold's White Gold project.
Nevada, USA
KORE owns a 50% interest in the Gemini lithium brine project
located approximately 40 kilometres (26 miles) south of
North America's only producing
lithium mine at Silver Peak, Nevada.
Technical information with respect to the Projects contained
in this news release has been reviewed and approved by David S. Smith, CPG, who is KORE's designated
independent qualified person for the purposes of this news
release.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any KORE common shares in
the United States. The KORE common
shares to be issued in connection with the Transaction have not
been and will not be registered under the
United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any state securities laws and may
not be offered or sold within the United
States or to U.S. persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of TSX Venture Exchange) accepts responsibility for the
adequacy of accuracy of this release.
Cautionary Statement Regarding Adjacent Properties and
Forward-Looking Information
All information contained in this news release with respect
to KORE and Kore was supplied by the parties, respectively, for
inclusion herein, and KORE and its directors and officers have
relied on KORE for any information concerning such party, including
information concerning the Projects.
This news release contains forward-looking statements
relating to the future operations of the Company and other
statements that are not historical facts. Forward-looking
statements are often identified by terms such as "will", "may",
"should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the future plans and objectives of the Company are forward-looking
statements that involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Such factors include, but are not
limited to: uncertainties related exploration and
development; the ability to raise sufficient capital to fund
exploration and development; changes in economic conditions or
financial markets; increases in input costs; litigation,
legislative, environmental and other judicial, regulatory,
political and competitive developments; technological or
operational difficulties or inability to obtain permits encountered
in connection with exploration activities; and labor relations
matters. This list is not exhaustive of the factors that may affect
our forward-looking information. Important factors that
could cause actual results to differ materially from the Company's
expectations also include risks detailed from time to time in the
filings made by the Company with securities regulations.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will update or
revise publicly any of the included forward-looking statements as
expressly required by Canadian securities law.
SOURCE Kore Mining