TIDMHOC
RNS Number : 1688D
Hochschild Mining PLC
01 March 2022
________________________________________________________________________________________
1 March 2022
Significant increase in mineral resources at Snip
Hochschild Mining PLC ("Hochschild" or "the Company") is pleased
to announce an updated Mineral Resource Estimate ("MRE") for the
Snip Gold Project ("Snip" or the "Project"), located in the Golden
Triangle and in Tahltan Territory, of northwest British Columbia,
Canada. Under the terms of its agreement with Skeena Resources
Limited ("Skeena"), Hochschild is in the process of earning-in 60%
of Skeena's interest in the Project and is the manager of
operations. This represents the first MRE released by Hochschild
with respect to the Project and follows the MRE prepared by Skeena
in July 2020.
Ignacio Bustamante, Chief Executive Officer said:
"We are excited to be issuing an updated mineral resource
estimate which reflects not only the 28,000 metres of drilling but
also the application of Hochschild's standard approach to resource
evaluation. Estimated indicated mineral resources have more than
tripled while inferred resources have almost doubled compared to
the 2020 estimate with grades at more than 10 grams per tonne.
These results validate our decision to exercise the option to start
earning-into the project and provide encouragement for the 2022
drill programme, which began earlier this month.
A Pre-Feasibility Study is expected to be completed by the end
of the year. We would like to express our gratitude for the support
we have received from the Tahltan Nation, the British Columbia
Government, employees, contractors and suppliers during this
initial period of transition."
Mineral Resource Estimate
The mineral resource estimate for the Snip Gold Project is
reported at a 3.0 g/t Au cut-off in Table 1 and is effective as of
28 February 2022.
Table 1. Mineral Resource Estimate of the Snip Gold Project (see
notes at the end of the release)
Domain Tonnes Contained Contained
(000) Grade Au Metal Au
(g/t) (000 oz)
-----------------------------
Indicated Mineral Resources
----------- ------- ---------- ----------
Twin Main 2,383 10.6 810
----------------------------------------- ------- ---------- ----------
Twin West 117 7.8 30
----------------------------------------- ------- ---------- ----------
Total Indicated 2,500 10.4 840
------- ---------- ----------
Inferred Mineral Resources
----------- ------- ---------- ----------
Twin Main 1,852 10.5 623
----------------------------------------- ------- ---------- ----------
Twin West 332 9.4 100
----------------------------------------- ------- ---------- ----------
Total Inferred 2,184 10.3 723
------- ---------- ----------
The mineral resource update follows a drilling programme of 210
surface and underground diamond drill holes totaling 28,039m (see
Table 2 and Figure 1). The MRE was completed by Hochschild and was
reviewed and validated by Ginto Consulting Inc. ("Ginto").
Table 2. Summary of drilling campaigns
Programme Year No. of Holes Length (m)
Historical pre-1999 3,542 279,970
-------------- ------------------- ---------------
Skeena 2016 28 7,422
-------------- ------------------- ---------------
2017 62 8,703
-------------------------------- ------------------- ---------------
2018 54 11,298
-------------------------------- ------------------- ---------------
2019 9 1,902
-------------------------------- ------------------- ---------------
2020 9 4,542
-------------------------------- ------------------- ---------------
2021 201 23,497
-------------------------------- ------------------- ---------------
Note: The table shows only drillholes with complete laboratory
results as of 15 January 2022
The geology model consisted of a model of gold mineralisation of
the Twin and Twin West zones, as well as a model of the Biotite
Spotted Unit ("BSU") that intrudes the mineralisation of the Twin
Zone. The BSU was modeled as a barren dyke, which overprints the
mineralized Twin Zone. Mineralized shear zones and mineralized vein
intercepts were modeled in Leapfrog Geo(R) using the vein modeling
tool at a 1.0 g/t Au threshold. The resulting model is composed of
three main domains divided in 92 sub-domains.
Original gold assays were capped for high-grade outliers and
then composited to 1.5m intervals. Basic statistics were performed
on the main domains and it was observed that the gold grade
populations of the high-grade domains were well behaved with
coefficients of variation below 3.0. A variographic analysis was
then carried out for each of the main domains in order to assess
the continuity of the gold mineralisation. Greater gold grade
continuity was noted to be along strike and down plunge.
Two block models were used to define the MRE of the Twin and
Twin West zones. The block models are both orthogonal and defined
on a 4m (X) x 4m (Y) x 6m (Z) parent block size, sub-blocked to
0.5m (X) x 0.5m (Y) x 0.5m (Z). Ordinary kriging was the grade
interpolation method utilized to estimate gold grades with a search
ellipsoid based on the variogram models. A set of 3 passes with
increasing search sizes, and restrictions on the maximum number of
composites per hole and the maximum number of composites per
quadrant were part of the grade estimation strategy. The gold grade
estimates were then assessed with various validation tests to
ascertain the quality of the resulting estimates.
The mineral resource was first classified into indicated and
inferred categories, based on the distance of the composites and
the number of holes. A 40m buffer was drawn around the more recent
holes, drilled from 2016 to 2021, where a minimum of 2 recent holes
within the buffer were needed for the classification to remain as
indicated. If this condition was not met, any originally defined
indicated resources were downgraded to inferred. A final process
consisted of smoothing the shapes of the indicated and inferred
categories in order to provide a more continuous definition of the
classification categories. The MRE was then depleted of the
mined-out underground voids increased by a 1m surrounding
buffer.
In order to conform to the "reasonable prospects of economic
extraction" requirement of NI 43-101, all underground mineral
resources not contiguous to the main deposit ("isolated blocks")
were removed, and the remaining mineral resources were reported
within the constraining shapes of the mineralized lodes at the
economic cut-off grade of 3.0 g/t Au. Mineral resources in Skeena's
21 July 2020 MRE were reported at an economic cut-off grade of 2.5
g/t Au, contained within stope shapes.
Mineralisation
Most of the Snip deposit is hosted within a complex interbedded
sequence of siltstone and greywacke units. The gold mineralisation
is associated with several periods of deformation and syn-tectonic
quartz and sulphide veining. Four types of gold mineralisation are
recognized on the property: carbonate type, chlorite-biotite type,
sulphide type, and quartz type.
A large portion of the gold mineralisation at Snip is found
within the Twin Zone, an extensional shear vein system
approximately trending east-west and dipping to the south at an
average dip varying between 40deg and 50deg. The shear is intruded
by a barren, post mineralisation mafic dyke, the Biotite Spotted
Unit ("BSU") which divides the Twin Zone into two parts for most of
its length. Veins in the hanging wall are termed V-veins while
those in the footwall are S-veins. The other drill defined
mineralized zone on the property is the Twin West Zone, located
approximately 500m southwest of the Twin Zone. It is believed to be
the continuation of the Twin Zone dextrally displaced by the
northeasterly Monsoon Valley fault.
Figure 1. Drill Hole Location Map
http://www.rns-pdf.londonstockexchange.com/rns/1688D_1-2022-3-1.pdf
2022 plans
In 2022, Hochschild plans on drilling approximately 10,000
metres from underground with approximately 70% of planned metres
for infill and twin holes, and 30% for exploration.
A Pre-Feasibility Study will be undertaken during the year,
using existing resources and results from the 2022 programme, to
trade-off a series of mining and mineral processing opportunities
identified at the project, and assess a potential project
development route to move to a Feasibility Study.
Qualified Persons
The Independent and Qualified Person for the Snip MRE is Mr.
Marc Jutras P.Eng., M.A.Sc., Principal, Mineral Resources, Ginto
Consulting Inc. of Vancouver, Canada, who has reviewed, validated
and approved the Snip MRE as well as the technical disclosure in
this release. In accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects.
Terms of the option
In September 2018, Skeena granted Hochschild an option (the "HOC
Option") to earn a 60% interest in Snip over three years by
spending twice the amount Skeena had spent since it originally
optioned the property from Barrick in March 2016. Up until the
exercise of the option, Skeena estimated that it had incurred
approximately C$50 million of expenditure on the project. The
exercise of the HOC Option was 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)
-- The initial expenditure requirements of Skeena's agreement
with Barrick Gold Inc. ("Barrick") were satisfied by Skeena in July
2017, at which time Skeena exercised its right to acquire all of
Barrick's "right, title and interest in and to the Property and the
Permits", subject to the retention by Barrick of a 51% Back-In
Right exercisable upon definition of a Mineral Resource, or
extraction from the property, of 2 million ounces of contained gold
or gold equivalent and a 1% NSR Royalty. The Back-In Right is
exercisable by Barrick on payment, to Skeena, of an amount
equivalent to three times of the cumulative expenditure on the
Project.
Notes to Table 1
1. These mineral resources are not mineral reserves as they do
not have demonstrated economic viability.
2. The mineral resources were carried out in accordance with the
standards of the Joint Ore Reserves Committee of the Australian
Institute of Mining and Metallurgy ("JORC" code 2012), the National
Instrument 43-101 ("NI 43-101" code 2014) and the Canadian
Institute of Mining and Metallurgy ("CIM") Best Practices
Guidelines (2019).
3. A site visit was carried out by Mr. Marc Jutras, P.Eng.,
M.A.Sc., Principal, Mineral Resources, at Ginto Consulting Inc.
between September 8 and September 11, 2021
4. R esults are presented in situ and undiluted and considered
to have reasonable
prospects for economic extraction.
5. The mineral resource estimate is reported for an underground
scenario at a cut-off grade of 3.0 g/t. The cut-off grade was
calculated using a gold price of US$ 1,800/oz, mining cost of
US$97.20/t, processing cost of US$25.00 /t; G&A cost of US$
24.70/t, metal recovery of 90%, selling cost of US$ 90.00/oz, and a
royalty cost of US$18.00/oz
6. The number of tonnes and ounces were rounded to the nearest thousand.
7. Neither the Company, nor Ginto, is aware of any known
environmental, permitting, legal, title-related, taxation,
socio-political or marketing issues, or any other relevant issues
not reported that could materially affect the mineral resource
estimate.
8. The mineral resource estimates are in total for the property
and have not been adjusted to reflect the proportion attributable
to Hochschild on the basis of their joint venture
participation.
________________________________________________________________________________________
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) 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.
________________________________________________________________________________________
LEI: 549300JK10TVQ3CCJQ89
- ends -
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEAKDFELLAEEA
(END) Dow Jones Newswires
March 01, 2022 02:01 ET (07:01 GMT)
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From May 2024 to Jun 2024
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From Jun 2023 to Jun 2024