VANCOUVER, May 20, 2020 /CNW/ - KORE Mining Ltd. (TSXV: KORE
| OTCQB: KOREF) ("KORE" or the "Company") is pleased
to announce it has filed the technical report ("TR")
supporting the positive Preliminary Economic Assessment
("PEA") for the Company's 100% owned Imperial Oxide Gold
Deposit ("Imperial" or "Project"), located in
California, USA.
The positive PEA, announced April 6,
2020, demonstrated Imperial's potential to be a robust
mid-tier gold mine with compelling project economics. In
addition to the gold price, Imperial has upside potential from
deposit extensions and exploration on the 100% owned
Mesquite-Imperial-Picacho District which captures 28 kilometers of
strike from the operating Mesquite mine (TSX:EQX) to the historic
Picacho heap leach mine.
KORE's CEO Scott Trebilcock
stated: "The Imperial PEA technical report is a key resource for
investors and stakeholders seeking to understand Imperial as we
move forward into permitting in mid-2020. With the
recent strategic investment from Eric
Sprott and Macquarie Bank we have mobilized resources to
follow-up the Mesquite East exploration targets with additional
geophysics and surface sampling while we permit drilling for fall
2020."
IMPERIAL PROJECT PEA HIGHLIGHTS:
- Robust economics: US$ 343 million
NPV5% post-tax with 44% IRR at US$1,450 per ounce gold
- Low capital intensity project with only US$ 142 million pre-production capital cost
- 146,000 ounces gold per year over 8 years for 1.2 million
ounces total production
- Technically simple project: shallow open pit, run-of-mine heap
leach with existing infrastructure
- Value enhancement through Mesquite-Imperial-Picacho District
exploration and resource expansion
There were NO significant changes to the previously released
economic and technical data. The TR authors recommended that
KORE undertake various technical and permitting activities
including:
- Execute infill and exploration drill programs (near mine
targets);
- Conduct environmental baseline studies and permitting;
- Update mineral resource model with new drilling;
- Conduct additional geotechnical, heap leach design and
metallurgical test work; and
- Undertake community engagement programs after completion of
stakeholder mapping
QUALIFIED PERSONS/QUALITY ASSURANCE
The Preliminary
Economic Assessment was prepared by Global Resource Engineering
("GRE") and SRK Consulting (Canada) Inc ("SRK") with Terre Lane, QP and Todd
Harvey, PhD, QP being the Qualified Persons in charge of its
preparation for GRE. The resource portion of the PEA is the
same as the previous technical report dated December 30, 2019 and for this updated technical
report, Glen Cole, PGeo. of SRK is
the Qualified Person for SRK sections of the report. With
regards to technical matters in this press release Marc Leduc, P.Eng. is the Qualified Person
within the meaning of NI 43-101 and has reviewed and validated that
the information in this press release is consistent with that
provided by the Qualified Persons responsible for the PEA.
Further information about the PEA referenced in this news
release, including information in respect of data verification, key
assumptions, parameters, risks and other factors, can be found in
the NI 43-101 technical report for the Imperial Oxide Gold Deposit
filed on SEDAR (www.sedar.com) under KORE's profile and on the
Company's website
(https://www.koremining.com/imperial-project-pea).
The PEA is preliminary in nature, includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the PEA will be realized. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
ABOUT KORE
KORE is 100% owner of a portfolio of
advanced gold exploration and development assets in California and British Columbia. KORE is
supported by strategic investors Eric
Sprott and Macquarie Bank who, together with the management
and Board own 65% of the basic shares outstanding.
On behalf of KORE Mining Ltd
"Scott
Trebilcock"
Chief Executive Officer
(888) 407-5450
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.
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.
Cautionary Statement Regarding Forward-Looking Information
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", "intends", "indicates" 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. Forward-looking statements in this news release
include, but are not limited to, statements with respect to: the
results of the PEA, including future Project opportunities, future
operating and capital costs, closure costs, AISC, the
projected NPV, IRR, timelines, permit timelines, and the ability to
obtain the requisite permits, economics and associated returns of
the Imperial Project, the technical viability of the Imperial
Project, the market and future price of and demand for gold, the
environmental impact of the Imperial Project, and the ongoing
ability to work cooperatively with stakeholders, including the
local levels of government. Such forward-looking statements, and
any assumptions upon which they are based, are made in good faith
and reflect our current judgment regarding the direction of our
business. Management believes that these assumptions are
reasonable. 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 factors include, among others: risks related to exploration
and development activities at the Company's projects, and factors
relating to whether or not mineralization extraction will be
commercially viable; risks related to mining operations and the
hazards and risks normally encountered in the exploration,
development and production of minerals, such as unusual and
unexpected geological formations, rock falls, seismic activity,
flooding and other conditions involved in the extraction and
removal of materials; uncertainties regarding regulatory matters,
including obtaining permits and complying with laws and regulations
governing exploration, development, production, taxes, labour
standards, occupational health, waste disposal, toxic substances,
land use, environmental protection, site safety and other matters,
and the potential for existing laws and regulations to be amended
or more stringently implemented by the relevant authorities;
uncertainties regarding estimating mineral resources, which
estimates may require revision (either up or down) based on actual
production experience; risks relating to fluctuating metals prices
and the ability to operate the Company's projects at a profit in
the event of declining metals prices and the need to reassess
feasibility of a particular project that estimated resources will
be recovered or that they will be recovered at the rates estimated;
risks related to title to the Company's properties, including the
risk that the Company's title may be challenged or impugned by
third parties; the ability of the Company to access necessary
resources, including mining equipment and crews, on a timely basis
and at reasonable cost; competition within the mining industry for
the discovery and acquisition of properties from other mining
companies, many of which have greater financial, technical and
other resources than the Company, for, among other things, the
acquisition of mineral claims, leases and other mineral interests
as well as for the recruitment and retention of qualified employees
and other personnel; access to suitable infrastructure, such as
roads, energy and water supplies in the vicinity of the Company's
properties; and risks related to the stage of the Company's
development, including risks relating to limited financial
resources, limited availability of additional financing and
potential dilution to existing shareholders; reliance on its
management and key personnel; inability to obtain adequate or any
insurance; exposure to litigation or similar claims;
currently unprofitable operations; risks regarding the ability of
the Company and its management to manage growth; and potential
conflicts of interest.
In addition to the above summary, additional risks and
uncertainties are described in the "Risks" section of the Company's
management discussion and analysis for the year ended December 31, 2019 prepared as of April 27, 2020 available under the Company's
issuer profile on www.sedar.com.
Forward-looking statements contained herein are made as of the
date of this news release and the Company disclaims any obligation
to update any forward-looking statements, whether as a result of
new information, future events or results, except as may be
required by applicable securities laws. 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.
There is no certainty that all or any part of the mineral
resource will be converted into mineral reserve. It is uncertain if
further exploration will allow improving the classification of the
Indicated or Inferred mineral resource. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
Cautionary Note Regarding Mineral Resource Estimates:
Information regarding mineral resource estimates has been prepared
in accordance with the requirements of Canadian securities laws,
which differ from the requirements of United States Securities and
Exchange Commission ("SEC") Industry Guide 7. In October 2018, the SEC approved final rules
requiring comprehensive and detailed disclosure requirements for
issuers with material mining operations. The provisions in Industry
Guide 7 and Item 102 of Regulation S-K, have been replaced with a
new subpart 1300 of Regulation S-K under the United States
Securities Act and will become mandatory for SEC registrants after
January 1, 2021. The changes adopted
are intended to align the SEC's disclosure requirements more
closely with global standards as embodied by the Committee for
Mineral Reserves International Reporting Standards (CRIRSCO),
including Canada's NI 43-101 and
CIM Definition Standards. Under the new SEC rules, SEC registrants
will be permitted to disclose "mineral resources" even though they
reflect a lower level of certainty than mineral reserves.
Additionally, under the New Rules, mineral resources must be
classified as "measured", "indicated", or "inferred", terms which
are defined in and required to be disclosed by NI 43-101 for
Canadian issuers and are not recognized under SEC Industry Guide
7. An "Inferred Mineral Resource" has a lower level of
confidence than that applying to an "Indicated Mineral Resource"
and must not be converted to a Mineral Reserve. It is reasonably
expected that the majority of "Inferred Mineral Resources" could be
upgraded to "Indicated Mineral Resources" with continued
exploration. Accordingly, the mineral resource estimates and
related information may not be comparable to similar information
made public by United States
companies subject to the reporting and disclosure requirements
under the United States federal laws and the rules and
regulations thereunder, including SEC Industry Guide 7.
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SOURCE Kore Mining