Kerr Mines Commences Resource Expansion Program and Receives Air Permit
February 05 2019 - 6:30AM
Kerr Mines Inc. (TSX:
KER, OTC: KERMF, FRA: 7AZ1) (“Kerr” or the
“Company”) is pleased to announce that the Phase II
resource expansion program has commenced at the Copperstone Mine
located in Arizona, USA. In addition, Kerr has received a key
environmental permit modification and is continuing with advanced
metallurgical testing.
2019 Phase II Resource Expansion
Program:
- The primary objective of the underground resource expansion
program is to increase mine life by 3-4 years to total of 8 years
at a rate of 38,000-40,000 ounces of gold per year;
- Up to 15,000 meter (“m”) underground program focused on the D
and C zones of the Copperstone zone.
- The Copperstone zone is the underground extension of the same
orebody that was historically mined as an open pit. The open
pit mined nearly 150 vertical meters of the Copperstone zone and
produced in excess of 500,000 gold ounces. The Copperstone
orebody currently has a horizontal strike length of over 1,500 m
and extends 110 m beneath the historical open pit. Within
this area there are Measured and Indicated resources of 276,100
gold ounces and Inferred resources of 145,700 gold
ounces.
- Drilling is being accomplished entirely from existing
underground access and will affect an area of 500 m of strike
length and 200 m of elevation – 1/3 of current resource
strike length.
- Future drilling programs, with the objective of further mine
life extension, will target areas beyond the current 2019 Phase II
affected area of 500 m of strike length. The ultimate goal would be
the addition of resources along all zones encompassing the entire
current resource strike length of over 1,500 m.Please refer to our
Kerr Mines Corporate Presentation located on our home page at
https:kerrmines.com for further details regarding our 2019
Program.
Permit Modifications:
- Received approval of the modification to the existing State of
Arizona environmental permit governing air.
- Provides permission for the construction of the whole ore leach
and Sulfidization-Acidification-Recycle-Thickening (“SART”) gold
processing systems.
- Modifications to the federal operating permit and the state
permit governing water are well underway.
- All other permits required for mine operations and gold
production are in hand and do not require modification.
Metallurgical Testing:
- The primary purpose is to validate prior results of average 95%
recovery of gold and to refine reagent consumption and leach
times.
- The secondary purpose is to perform testing to evaluate the
economic viability of incorporating a SART circuit to the planned
gold processing plant. A SART circuit can reduce operating
costs by reducing reagent consumption and can add revenue from the
recovery of copper from the gold ore.
- Current testing is nearly complete and aimed at providing
information for detailed gold processing plant
design.
“We are excited to have reached two important
milestones this early in the year – the initiation of the resource
expansion program and the approval of the state air permit which
allows Kerr to construct the new additions to the existing gold
processing plant for purposes of whole ore leach processing and a
SART circuit which will improve recoveries while reducing operating
cost.” said Martin Kostuik, President. “Additional catalysts
will be the receipt of the two remaining permits and the conclusion
of the metallurgical test work by Q1 2019. As we further
de-risk and advance the Copperstone Mine we look forward to
continuing to meet each of our near term goals and objectives, all
of which contribute towards placing the mine into production and
creating returns for shareholders. ”
About Kerr Mines Inc. Kerr
Mines is an Emerging American Gold Producer currently advancing the
100% owned, fully permitted past-producing Copperstone Mine project
to production. Copperstone is a high-grade gold project located
along a detachment fault mineral belt in mining-friendly Arizona.
This gold project in Arizona demonstrates tremendous exploration
potential targeting multi-million ounce prospects within a 4,775
hectare (11,800 acres) land package.
PDF Version of 43-101 technical report available:
http://kerrmines.com/wp-content/uploads/KerrCopperstone_PFS_43-101.pdf
YouTube: Copperstone Gold Mine KER:TSX 3 min.
Investor Tour Video
For further information
contact:Claudio Ciavarella Chief Executive
Officercciavarella@kerrmines.com 416-855-9305
Cautionary Note Regarding Forward
Looking Statements This news release contains
forward-looking statements, including current expectations on the
timing of the commencement of production and the rate of
production, if commenced. These forward-looking statements entail
various risks and uncertainties that could cause actual results to
differ materially from those reflected in these forward-looking
statements. Such statements are based on current expectations, are
subject to a number of uncertainties and risks, and actual results
may differ materially from those contained in such statements.
These uncertainties and risks include, but are not limited to, the
strength of the Canadian economy; the price of gold; operational,
funding, and liquidity risks; the degree to which mineral
resource estimates are reflective of actual mineral resources; and
the degree to which factors which would make a mineral deposit
commercially viable are present; the risks and hazards associated
with underground operations. Risks and uncertainties about Kerr
Mines’ business are more fully discussed in the Company's
disclosure materials, including its annual information form and
MD&A, filed with the securities regulatory authorities in
Canada and available at www.sedar.com and readers are urged to read
these materials. Kerr Mines assumes no obligation to update any
forward-looking statement or to update the reasons why actual
results could differ from such statements unless required by
law. Neither TSX nor its Regulation Services Provider (as
that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this release and no
stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.