TORONTO, Dec. 7, 2016 /CNW/ - Orefinders Resources Inc.
("Orefinders" or the "Company") (TSX.V: ORX) is pleased to announce
that it has engaged an independent mining consultancy to begin work
on an updated NI 43-101 Mineral Resource Calculation which will be
used as the basis for the Mirado Mine's first Preliminary Economic
Assessment ("PEA"). The PEA will focus on restarting mining
operations on the Mirado Mine's high grade zones within the open
pit. Initially, milling of ore would be conducted on a toll-milling
basis.
Orefinders believes it can restart the Mirado Mine in a
relatively short time frame using a toll-milling operation since
this would not require the high capital expenditures of building a
mill. It would also reduce the permitting requirements by
eliminating the need to build a tailings facility. Orefinders also
believes that there is substantial milling capacity from multiple
mills in the areas surrounding Kirkland
Lake.
"The Stockpile project was meaningful not only in terms of
generating revenue, but also by establishing credibility in the
ability of our team and the Mirado asset to create cash flowing
opportunities. The information that we accumulated throughout the
Stockpile project's execution will be incorporated in our next
steps. Orefinders is in a unique situation where it can leverage
its existing infrastructure including roads and bridges to easily
access the Mirado Mine and its existing open pit. This data and
experience in terms of costs and procedures has added to our
understanding of the economics behind restarting the Mirado Mine,"
said Orefinders CEO, Stephen
Stewart. He continued, "While mining is always a complex
task, the scenario that we are exploring simplifies our path to
consistent cash flow and will allow us to one day evolve to
building our own mill. The initiative behind the Stockpiles was
organic development to protect our capital structure by using the
Mirado Mine to develop itself. That's how we plan on moving forward
with the Mirado and other projects that we evaluate."
Orefinders believes that the Mirado Project, which includes the
open pit Mirado Mine on the South zone and the North zone's
historic underground mine, has the potential for a significant
commercial mining operation. The Company will look to initiate the
necessary studies and permits for its own mill in parallel with the
cash flow received from the initial toll-milling plan.
Updated permitting will be required for the actual mining
operation, however much of the baseline work has been completed
through the stockpile's existing closure plan. Additionally the
on-site crushing, hauling and logistics behind the Stockpile
Project will be mirrored in the process for this toll-milling
plan.
Stockpile Milling Progress at the Westwood Mine
The
Company would also like to announce that further to its
November 18, 2016 news release, the
Westwood mill maintenance work has
been completed, the milling of the Stockpile resource has
resumed.
Neither 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. Certain information in this press release
may contain forward-looking statements. This information is based
on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Orefinders' assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Orefinders. Additional information identifying risks
and uncertainties is contained in filings by Orefinders with
Canadian securities regulators, which filings are available under
Orefinders' profile at www.sedar.com.
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SOURCE Orefinders Resources Inc.