TIDMHOC
RNS Number : 1725P
Hochschild Mining PLC
15 October 2021
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15 October 2021
http://www.rns-pdf.londonstockexchange.com/rns/1725P_1-2021-10-14.pdf
Hochschild Exercises Option Over Skeena Resources' Snip Gold
Project
Hochschild Mining PLC ("Hochschild" or "the Company") (LSE: HOC)
(OTCQX: HCHDF) is pleased to announce that it has exercised its
option to start earning in to a 60% interest in the Snip gold
project ("Snip", the "project" or "property") located in the Golden
Triangle and in Tahltan Territory, British Columbia, Canada, and
held by Skeena Resources Limited ("Skeena") (TSX: SKE, OTCQX:
SKREF).
Ignacio Bustamante, Chief Executive Officer said:
"We are pleased to exercise our option on the Snip project in
Tahltan Territory, Canada. This represents a first step in our
strategy to add another high-grade project with strong upside
potential into our pipeline. We look forward to working with Skeena
and building on their strong relationship with the Tahltan
Nation."
Project description
Snip, which was acquired by Skeena from Barrick Gold Corp.
("Barrick") in July 2017, consists of one mining lease and eight
mineral claims totalling approximately 4,546 hectares in the Liard
Mining Division and is situated in Tahltan Territory. The former
Snip mine produced approximately one million ounces of gold from
1991 until 1999 at an average gold grade of 27.5 g/t. Since then,
the project has been improved with the recent construction of
nearby infrastructure (paved highway, hydro-electric facilities and
ocean port facilities) and substantially higher gold prices.
Underground drilling recommenced in late 2017 to explore for
additional mineralised shoots in a large shear structure. A maiden
mineral resource was announced in July 2020 including 244,000
ounces of gold in the indicated category at an average grade of
14.0 g/t and 402,000 ounces of gold in the inferred category at an
average grade of 13.3 g/t. A Technical Report was issued in
September 2020.
Subsequent drill campaigns, totalling approximately 32,000
metres, successfully:
-- upgraded areas of existing Inferred resources from the
Mineral Resource Estimate to the Measured and Indicated
categories;
-- expanded the resource; and
-- delineated additional mineralisation in previously unexplored
areas of the near-mine environment.
Results from these drill campaigns are reported on Skeena's
website in four news releases dated 27 April, 20 May, 7 July, and 4
August 2021.
Going forward, Hochschild plans on continuing these drill
campaigns and initiating selected studies and testwork.
Terms of the option
In September 2018, Skeena granted Hochschild an option (the "HOC
Option") to earn-in a 60% interest in Snip over three years (the
"Option Period") by spending twice the amount Skeena had spent
since it originally optioned the property from Barrick in March
2016 (the "Aggregate Spending Requirement").
To date, Skeena estimates that it has incurred approximately
C$50 million of expenditure on the project. [1]
The exercise of the HOC Option is also subject to the following
terms:
-- Hochschild must incur no less than C$7.5 million in
exploration or development expenditures on Snip in each year of the
Option Period (which, provided that Hochschild has incurred at
least C$22.5 million on the project, can be extended by a further
year on payment of US$1 million to Skeena);
-- On complying with the above, Hochschild must provide 60% of
the financial assurance required by governmental authorities for
the Snip mining properties; and
-- Hochschild can terminate the HOC Option at any time (with no
liability to complete the aggregate spending requirement), but must
make a cash payment for any shortfall in the minimum annual spend
(or pro-rated minimum annual spend if terminated after the first
anniversary of the notice exercising the HOC Option).
Project location
Additional information on the project can be found on Skeena's
website at: https://skeenaresources.com/
_____________________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Charles Gordon +44 (0)20 3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack +44 (0)207 796 4133
Public Relations
_____________________________________________________________________________________
About Hochschild Mining PLC
Hochschild Mining PLC is a leading precious metals company
listed on the London Stock Exchange (HOCM.L / HOC LN) and
crosstrades on the OTCQX Best Market in the U.S. (HCHDF), with a
primary focus on the exploration, mining, processing and sale of
silver and gold. Hochschild has over fifty years' experience in the
mining of precious metal epithermal vein deposits and currently
operates three underground epithermal vein mines, two located in
southern Peru and one in southern Argentina. Hochschild also has
numerous long-term projects throughout the Americas.
_____________________________________________________________________________________
Forward looking statements
This announcement may contain forward looking statements. By
their nature, forward looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that will or may occur in the future. Actual results,
performance or achievements of Hochschild Mining PLC may, for
various reasons, be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements.
The forward looking statements reflect knowledge and information
available at the date of preparation of this announcement. Except
as required by the Listing Rules and applicable law, the Board of
Hochschild Mining PLC does not undertake any obligation to update
or change any forward looking statements to reflect events
occurring after the date of this announcement. Nothing in this
announcement should be construed as a profit forecast.
Note
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (Regulation (EU) No.596/2014). Upon the
publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
LEI: 549300JK10TVQ3CCJQ89
- ends -
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