TSX Venture Exchange Symbol: NWM
TORONTO,
Nov. 7, 2013 /CNW/ - NWM Mining
Corporation ("NWM" or the "Company") (TSX-V: NWM) is pleased to
provide an updated mineral resource and reserves estimate at the
company's Lluvia de Oro ("Lluvia") project. Total reserves
for the project -- which encompasses the Creston and Gold Ridge mines and the Jojoba
deposit - are now estimated at 600,000 ounces (43 million tonnes at
a combined grade of 0.43 g/t gold). The new reserve estimate
represents a 56% increase from the previous estimate completed in
2010.
Darren Koningen,
President and CEO for NWM noted "This new mineral reserve estimate
provides direct confirmation of the geological model developed for
Creston earlier this year and our
belief in the project's untapped potential. We are extremely
pleased with the current results which exceeded expectations and
support the company evolving plans to increase the overall project
production profile and mine life. In addition, due to the
very limited scope of the Phase 1 work we look forward to the
initiation of Phase 2 of our drill program planned for early 2014
that is aimed at testing the strike extensions for both the Gold
Ridge and Creston mines."
2013 Exploration Accomplishments
- The development of an entirely new geological model/database
for the Creston deposit which
better explains the source and distribution of gold as well as
geological similarities between the deep mineralization at
Creston and adjacent parallel
exploration targets like Gold Ridge which was brought into
production in 2013.
- Completion of a Phase 1 drill program in 2013 totaling 5,765
meters in 68 holes that when combined with the new geological
database resulted in a 56% increase in total estimated mineral
reserves for the Lluvia de Oro project.
- Phase 1 increase in mineral reserves for Lluvia project
represent a discovery cost of US$1.50
to US$2 per ounce of gold.
- The preliminary definition and initiation of mining operations
at a significant new zone of mineralization (Gold Ridge) that is
roughly parallel (west) to the Creston deposit. To date only a 400m
length of this over 2km structure has been defined by
drilling.
- Confirmation that the Creston
and Gold Ridge mines appear to remain open along strike (and at
depth) for additional exploration and that an additional parallel
structure similar to that at Gold Ridge may exist on the east side
of the Creston deposit.
New National Instrument 43-101 ("NI 43-101")
Reserve and Resource Estimation
The new mineral reserve estimate was completed
by Neil Gow, P. Geo., an independent
consultant and Darren Koningen, P.
Eng. Due to the material changes in mineral reserve and
mineral resource estimates over the previously released NI 43-101
compliant report for the Lluvia de Oro property ("Pre-Feasibility
Report and Reserve Analysis", July 8
2010), an updated technical report will be filed on SEDAR within 45
days of the date of this release.
The new mineral reserve estimates for the Lluvia
de Oro project (Creston and Gold
Ridge mines and the Jojoba deposit) is detailed below in Table
1. When compared to the prior reserves (2010), the current
estimate for the project represents an increase in ounces of
approximately 56%.
Table 1. Mineral Reserve Estimates for
the Lluvia de Oro Project
|
|
|
|
Classification |
Tonnes
(millions) |
Grade
(g/t gold) |
Gold Ounces |
Proven |
|
|
|
|
Creston mine |
22.2 |
0.38 |
275,000 |
|
Gold Ridge mine |
1.9 |
0.34 |
21,000 |
|
Jojoba deposit |
6.4 |
0.71 |
146,000 |
Probable |
|
|
Creston mine |
8.7 |
0.36 |
92,000 |
|
Gold Ridge mine |
1.0 |
0.36 |
10,000 |
|
Jojoba deposit |
3.2 |
0.54 |
56,000 |
|
|
|
|
Project Totals
(Proven + Probable) |
43.4 |
0.43 |
600,000 |
Notes
- CIM definitions were followed for Mineral Reserves.
- Mineral Reserves are estimated at a cut-off of 0.12 g/t gold
for Creston, 0.16 g/t gold for
Gold Ridge and 0.15 g/t gold for Jojoba.
- Mineral Reserves are estimated using a long-term gold price of
US$1,300/oz and a $US/$CDN exchange
of 1.00.
- Bulk density is 2.49t/m3.
- Numbers may not add up due to rounding.
- Mineral Reserves are contained in pit shells developed using
appropriate software and current mining costs from Lluvia de Oro
operations.
- Mineral Reserve tonnages include 2% mining losses.
As mining operations are underway at the
Creston and Gold Ridge deposits
current cost data was utilized for the production of mineral
reserve estimates. Ultimate pit shells were generated from
the deposit block models using variable costs of US$1.60 /tonne for mining and US$1.50 /tonne for processing. Based on
available data it was assumed that over the life-of-mine (LOM) 25%
of the Creston/Gold Ridge deposits
would require crushing and 40% of Jojoba (contract crushing rate of
US$2/tonne). Ultimate gold
recoveries were conservatively assigned at 60% for the Creston and Gold Ridge mines and 65% for the
Jojoba deposit with a total 3% deduction from gold sales to account
for royalties and refining costs.
Following the generation of the ultimate pit
shells for each of the deposits an internal cut-off was calculated
for the production of reserve estimates. This was based on
the operating costs outlined above with the inclusion of a
US$1 /tonne (ore) minimum profit
factor. Gold recoveries for cut-off grade material were
reduced to 50% and it was also assumed that crushing of this lower
grade ore would not be economical.
The updated mineral resource estimates for the
Lluvia de Oro project are summarized in Table 2 below.
Table 2. Mineral Resource Estimates for
the Lluvia de Oro Project
|
|
|
|
Resource
Category |
Tonnes
(millions) |
Grade
(g/t gold) |
Gold Ounces |
|
|
|
|
Measured |
|
|
|
|
Creston mine |
22.6 |
0.38 |
273,000 |
|
Gold Ridge mine |
1.9 |
0.34 |
21,000 |
|
Jojoba deposit |
6.5 |
0.71 |
149,000 |
|
|
|
|
|
Indicated |
|
Creston mine |
8.9 |
0.36 |
102,000 |
|
Gold Ridge mine |
1.0 |
0.36 |
11,000 |
|
Jojoba deposit |
3.3 |
0.54 |
57,000 |
|
|
|
|
Project Totals (Measured +
Indicated) |
43.7 |
0.44 |
613,000 |
|
|
|
|
Inferred
|
|
Creston mine |
11.6 |
0.23 |
86,000 |
|
Gold Ridge mine |
0.8 |
0.28 |
7,000 |
|
Jojoba deposit |
0.7 |
0.44 |
10,000 |
Total Inferred Resources |
12.6 |
0.25 |
103,000 |
|
|
|
|
|
Notes (for Table 2)
- CIM definitions were followed for Mineral Resources.
- Mineral Resources are estimated at a cut-off of 0.12 g/t Au for
Creston, 0.15 g/t Au for Gold
Ridge and 0.15 g/t Au for Jojoba.
- Mineral Resources are estimated using a long-term gold price of
US$1,300/oz for Creston and Gold Ridge mines ($1200/oz for Jojoba) and a $US/$CDN exchange of
1.00.
- Bulk density is 2.49t/m3.
- Mineral Resources are inclusive of Mineral Reserves.
- Numbers may not add up due to rounding.
- The effective date for the Resources estimate is July 31, 2013.
- Mineral Resources are contained in pits developed using
appropriate software.
The increased mineral resource results from the
completion of the 2013 drill program which included 68 drill holes
covering approximately 5,765m of reverse circulation (RC) drilling
completed by the end of June 2013 in
the vicinity of the known mineralization at Creston and Gold Ridge mines. In
addition 16,500m of data were also added to the current geological
database from drilling completed in 2010 and 2011 (note: this
drilling was not limited to areas adjacent to Creston and Gold Ridge mines). Both
deposits appear to remain open along strike.
Jojoba Mineral Resources / Mineral
Reserves
The focus of the new exploration work completed
in 2013 was limited to the vicinity of the Creston mine (includes Gold Ridge). No
new drilling or geological interpretations have yet been completed
at the Jojoba deposit. Consequently the resource model
completed for the Jojoba deposit in the previous NI 43-101 report
(2010) has been examined and accepted by the QPs Messrs. Gow and
Koningen. Mineral reserves at the Jojoba deposit were then
re-estimated based on this model and using the same current
economic parameters outlined for Creston/Gold Ridge as well as long-term gold
prices (US$1300 /ounce).
For the current estimates only inferred
resources contained inside the pit limits have been reported.
Future exploration programs are planned for the Jojoba area in
order to determine the potential for additional mineralization.
Amendment to Company Loan Agreement with
Renvest
As previously announced on October 1 and October 31,
2013 Global Resource Fund (the lender) has provided for a
one month extension to the due date of the Company's current debt
notes. The extension was provided to allow both parties (NWM
Mining and Renvest Mercantile Bancorp) to complete the final
documentation related to a restated credit agreement the terms of
which were announced June 13,
2013. All other terms as were announced previously
remain in place.
Pursuant to the ongoing efforts to complete the
company's loan agreement extension documentation Global Resource
Fund has agreed to temporarily defer and accrue the interest
payment due October 31, 2013.
The October interest payment together with the November interest
payment will now both come due on November
30, 2013.
Qualified Persons
The preparation of the new mineral resource and
mineral reserve estimates have been supervised by Messrs.
Neil Gow, P.Geo., and Darren Koningen, P.Eng. both Qualified Persons
under N 43-101. This press release has also been reviewed by
Mr. Darren Koningen, P. Eng., NWM
Mining's CEO and President.
All RC drill samples from the 2013 program were
collected by NWM Mining personnel including the company's
exploration geologists and trained mine technicians. RC drill
samples were collected every 1.5m in two 5 gallon buckets. The
entire sample is then weighed and split in half using a single
Jones-type splitter. One half of the sample is then further
reduced, through the Jones splitter with one half (one quarter of
the original sample) bagged for analysis at the NWM laboratory
facilities. The remaining half is bagged for storage in the
project warehouse. Blanks, duplicates and standards were randomly
inserted with the samples sent for analysis as part of the normal
QA/QC procedures.
All samples were prepared and analyzed for gold
using fire assay procedures with an Atomic Adsorption Spectroscopy
("AAS") finish. Check samples were regularly sent from the NWM
laboratory facilities to ALS-Chemex in Hermosillo, Mexico for QA/QC purposes.
About NWM Mining Corporation
NWM is in commercial gold production at its
wholly owned Lluvia gold project. The mine is an open pit heap
leach operation in Sonora State, Mexico. Management believes the property is
significantly under-explored and hosts potential to provide further
gold discoveries and resource and reserve upgrades. While
management has focused in the past on developing the mine and
supporting cash flows, the focus in 2013 will shift to increasing
mining rates and drilling to expand geological resources and
reserves.
Additional information about NWM can be found on
the NWM website at www.nwmcorp.ca or on SEDAR at www.sedar.com.
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 of this release.
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
This news release includes "forward-looking information", as
such term is defined in applicable securities laws. Forward-looking
information includes, without limitation, the success of
exploration activities, price outlooks, production expectations and
other similar statements concerning anticipated future events,
conditions or results that are not historical facts. These
statements reflect management's current estimates, beliefs,
intentions and expectations; they are not guarantees of future
performance. The Company cautions that all forward looking
information is inherently uncertain and that actual performance may
be affected by a number of material factors, many of which are
beyond the Company's control. Accordingly, actual future events,
conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
forward-looking information. All statements are made as of the date
of this news release and the Company is under no obligation to
update or alter any forward-looking information.
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SOURCE NWM Mining Corporation