Sierra Metals Reports Q4-2020 Financial Results At Its Sociedad Minera Corona Subsidiary In Peru

 

Consolidated Financial Results for Sierra Metals to Be Released on March 18, 2021

(All metal prices and amounts reported in USD)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE AMERICAN:SMTS) (“Sierra Metals” or the “Company”) announces the filing of Sociedad Minera Corona S.A.’s (“Corona”) unaudited Financial Statements and the Management Discussion and Analysis (“MD&A”) for the fourth quarter of 2020 (“Q4 2020”).

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The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated and have not been adjusted for the 18.2% non-controlling interest.

Corona’s Highlights for the Three Months Ended December 31, 2020

• Revenues of US$45.2 million vs. US$42.2 million in Q42019
• Adjusted EBITDA of US$22.5 million vs. US$17.9 million in Q4 2019
• Total tonnes processed decreased by 3% to 311,946 vs. 321,701 in Q4 2019
• Net production revenue per tonne of ore milled increased by 8% to US$148.13
• Cash cost per copper equivalent payable pound decreased by 1% at US$1.16 in Q4 2020
• All-in sustaining cost (“AISC”) per copper equivalent payable increased 17% to US$2.47 in Q4 2020
• Copper equivalent production of 18.4 million pounds vs. 23.1 million pounds in Q4 2019
• US$65.0 million of cash and cash equivalents as at December 31, 2020
• US$92.0 million of working capital as at December 31,2020

Annual throughput of 1,117,860 was in line with the 2019 annual production, despite the impact of COVID-19 related shutdowns faced in Q2 2020 and other COVID-19 related challenges throughout the year. Throughput for Q4 2020 decreased by 3% as compared to Q4 2019, as a result of operational downtimes and minor production disruptions. Copper and zinc equivalent metal production in Q4 2020 decreased by 20% and 14%, respectively, due to lower throughput and lower head grades. Additionally, lower workforce availability continued to impact mine development, leading to lower ore contribution from the high-grade cuerpos chicos zones. Year over year, copper equivalent production decreased 4% in 2020 compared to the prior year. During 2020, zinc and gold’s annual production increased 1% and 3%, respectively, while copper and lead annual production decreased by 2% and 9%. Silver production for 2020 was in line with the 2019 annual silver production.

Q4 2020 revenues increased by 7% compared to Q4 2019 as a result of higher metal prices realized. Annual revenues were 6% lower due to the impact of a 66% increase in the treatment and refining costs. Adjusted EBITDA increased by 25% and 4% during Q4 2020 and the year respectively compared to the same periods of 2019, as operating costs excluding COVID-19 costs were lower than the prior year.

Cash and cash equivalents increased by $30 million during the year due to a combined result of a 27% increase in operating cash flows and a decrease of 26% in cash used in investing activities, as some capital expenditures were deferred considering the uncertainties related to the impacts of COVID-19. Cash costs per copper equivalent payable pound for 2020 decreased by 10% due to lower operating costs per tonne. AISC per copper equivalent payable pound for 2020 increased 10% primarily due to a 66% increase in treatment and refining costs partially offset by lower cash costs.

Luis Marchese,CEO of Sierra Metals,commented, “I am pleased with Yauricocha’s performance in the fourth quarter of 2020, which saw increases in revenue and adjusted EBITDA compared to the same quarter in 2019. The Company also realized increased EBITDA but lower revenue on a year over year basis primarily due to lower incomes resulting from significant increases to the treatment and refining charges. Overall, the Company performed well and produced solid results, given the challenging year we had due to the effects of dealing with the COVID-19 pandemic. I want to thank all employees for their efforts to help the Company achieve these results.”

He continued, “Looking ahead, 2021 is an exciting time for the Company as we continue advancing important projects, operational improvements, and exploration at Yauricocha. We also look forward to receiving the necessary permits at Yauricocha to increase throughput by 20% to the 3,600 tonne per day level. Furthermore, we recently completed and published a Preliminary Economic Assessment at Yauricocha with favourable economics to examine increasing throughput to 5,500 tonnes per day starting in 2024. We look forward to releasing a Preliminary Feasibility Study in the coming months to support that expansion further.”

He concluded, “Corona continues to have a solid balance sheet and strong liquidity. Management remains optimistic that continued operational efficiencies can be obtained at the Yauricocha Mine as well as capitalizing on further operational and resource growth opportunities.”

The following table displays selected financial information for the three months and year ended December 31, 2020:

1 Adjusted EBITDA includes adjustments for depletion and depreciation, interest expense and other financing costs, interest income, share-based compensation, Foreign Exchange (gain) loss and income taxes; see non-IFRS Performance Measures section of the Company’s MD&A.
2 All-In Sustaining Cost per copper equivalent pound sold are non-IFRS performance measures and include cost of sales, treatment and refining charges, sustaining capital expenditures, general and administrative expense, and selling expense, and exclude workers’ profit sharing, depreciation, and other non-cash provisions; Cash cost per copper equivalent pound sold, net production revenue per tonne of ore milled, and cash cost per tonne of ore milled are non- IFRS performance measures; see non-IFRS Performance Measures section of the Company’s MD&A.

Corona’s Financial Highlights for the Three Months and Year Ended December 31, 2020

• Revenues of $45.2 million for Q4 2020 compared to $42.2 million in Q4 2019 and revenues of $146.9 million for the year ended December 31, 2020, compared to $156.0 million for the same period in 2018. The increase in revenues during Q4 2020 compared to Q4 2019 was primarily driven by higher realized prices for all metals except lead. Revenues were higher for the quarter despite significant increases in the treatment and refining charges and lower metal sales resulting from lower throughput and grades. Revenues for the year ended December 31, 2020, were 6% lower than the same period in 2019 due to the 66% increase in treatment and refining charges offset by the increase in the average realized sale price for gold (9%) and zinc (4%). Average realized prices in 2020 were higher for copper (3%), silver (26%) and gold (26%), but lower for zinc (10%) and lead (9%) as compared to the average realized prices in 2019.
• Cash cost per copper equivalent pound sold at the Yauricocha Mine of $1.16 for Q4 2020 compared to $1.17 for Q4 2019; and $1.01 for the year ended December 31, 2020, compared to $1.12 for the same period in 2019. All-in sustaining cost (“AISC”) per copper equivalent pound sold of $2.47 for Q4 2020 compared to $2.11 for Q4 2019 and $2.11 for the year ended December 31, 2020, comparedto $1.91 for the same period in 2019. The increase in the AISC per copper equivalent payable pound for Q4 2020 and full year 2020 comparedto the same periods in 2019 was a combined result of higher treatment and refining charges and lower copper equivalent payable pounds sold.
• Adjusted EBITDA of $22.5 million for Q4 2020 compared to $17.9 million for Q4 2019 and $66.3 million for the year ended December 31, 2020, comparedto $64.0 million for the same period in 2019.
• Operating cash flows before movements in working capital was $23.3 million for Q4 2020, compared to US$18.3 million for Q4 2019, and $65.0 million for the year ended December 31, 2020, compared to $63.9 million for the same period in 2019. An increase in operating cash flows resulted from an increase in gross margins compared to 2019, mainly due to lower workforce and contractor costs.
• Cash and cash equivalents of $65.0 million as at December 31, 2020, compared to $35.0 million as at December 31, 2018. The increase in cash and cash equivalents was driven largely by operating cash flows of $48.6 million (after movement in working capital) offset by capital expenditures of $19.2 million.
• Net income of $11.5 million, or $0.32 per share for Q4 2019, compared to net income of $10.3 million, or $0.29 per share for Q4 2019. Net income of $28.2 million, or $0.78 per share, for the year ended December 31, 2020, compared to $34.6 million, or $0.96 per share, for the same period in 2019.

Corona’s Operational Highlights for the Three Months and Year Ended December 31, 2020

The following table displays the production results for the three months and year ended December 31, 2020, for further production details please refer the Company’s Q4 production press release dated January 18, 2021:

1 Daily throughput is calculated using 350 operating days for the year.
2 Copper equivalent pounds were calculated using the following realized prices: for Q4 2020 – $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au, for Q4 2019 – $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au, for full year 2020 – $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au, for full year 2019 – $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

Sierra Metals to release Q4/YE 2020 Financial Results on March 18, 2021

The Company will release Q4-2020 financial results on Thursday March 18, 2021, after the Market close. Senior Management will also host a webcast and conference call on Friday March 19, 2021, at 10:30am EDT. Details of the Conference Call and Webcast are as follows:

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/2947459/6CFF80ECA94506BA22260486A6292C76

The webcast, along with presentation slides, will be archived for 180 days on www.sierrametals.com.

Via phone:

To register for this conference call, please use the link provided below. A confirmation will be sent through email, including dial-in details and unique conference call codes for entry after registering.

Registration is open throughout the live call; however, to ensure you are connected for the entire call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link:

http://www.directeventreg.com/registration/event/4514269

Quality Control

All technical data contained in this news release has been reviewed and approved by:

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects to Sierra Metals is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:

Continue to Follow, Like and Watch our progress:

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Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
Vice President, Investor Relations
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: info@sierrametals.com

Luis Marchese
CEO

Sierra Metals Inc.
Tel: +1 (416) 366-7777

Source: Sierra Metals Inc.

Idaho Champion Reports Results of 2020 Core Drilling at Champagne Project, Idaho including 1.04 g/t Gold Equivalent over 42.98 Metres

 

Toronto, ON – February 16, 2021 – Idaho Champion Gold Mines Canada Inc. (CSE: ITKO; OTCQB: GLDRF; FSE: 1QB1)(“Idaho Champion” or the “Company“) is pleased to report the results from its 2020 diamond core (“Core“) drilling campaign at its 100% controlled Champagne Gold Project (“Champagne“) near the city of Arco, Butte County, Idaho.

2020 Champagne Drilling Highlights:

• Drill hole DDH-CC-20-02 intersected 1.04 g/t gold equivalent (“AuEq”) for the interval 123.14-166.12 m (42.98 m core length), including 1.22 g/t AuEq for the interval 123.14-157.06 m (31.93 m core length).
• Drill hole DDH-CC-20-02 was collared at Mine Hill in the approximate center of the unmined 300 m interval between the North and South Pits (Bema Gold c. 1989-90).
• This mineralized interval is associated with shallow induced polarization anomalies in chargeability and resistivity as reported in the Idaho Champion press release dated Feb 2, 2021.

“Core drilling and results of our IP survey have provided data to better formulate a conceptual geologic model for the Champagne District,” stated President and CEO, Jonathan Buick. “The promising mineralization from the program demonstrates there is gold in the system below the historic mined pits where we are confident that we can identify additional resources. Our evolving geologic model indicates that the base, or roots, of a larger system that may have been the feeder for all mining in this district lies off to the west. This large body of anomalous chargeability will be drill tested in 2021.”

Champagne Drilling Technical Summary

The 2020 core drilling program consisted of seven (7) diamond drill holes totaling 2,818 Metres (Fig. 1). Five core holes (DDH-CC-20-01 through DDH-CC-20-05) were positioned on Mine Hill in the vicinity of the North and South Pits and two core holes (DDH-CC-20-06 and DDH-CC-20-07) were located further north near the Ella Mine breccia vein.

Three holes (DDH-CC-20-01, -02, -07) intersected promising precious metals mineralization, with the strongest presence of gold and silver intersected in DDH-CC-20-02. The spatial relationships of these three holes to results of the recently completed induced polarization (IP) survey are represented in Figs. 2-3 (see also Idaho Champion press release of February 2, 2021). An inferred low-angle detachment fault represented in Fig. 2 is interpreted to have displaced the shallow IP anomaly at Mine Hill from a larger and deeper anomaly 800 m west of Mine Hill.

Figure 1: Champagne Gold Project 2020 Exploration Drill Hole Locations

Figure 2: Cross sections showing downhole AuEq intervals (red disks) plotted on 3D IP chargeability model. High AuEq values are associated with chargeability highs. The large, buried IP chargeability high is currently interpreted to be the center of the mineralizing system. Details about the recently competed IP survey at Champagne can be found in Idaho Champion’s news release dated 2 February 2021.

Figure 3: 2020 Idaho Champion Core and Reverse Circulation Drill Holes and 2020 3D IP Chargeability Model

DDH-CC-20-01 (Fig. 4) was inclined westward beneath the central part of the North Pit across a series of mineralized and altered breccia and fractured intervals. The intervals represent a sheeted pyritiferous breccia zone, the upper oxidized portion of which was mined for gold and silver in the North Pit. Below the pit floor, the breccia intervals in the intercept were found to be separated by intervals of less-altered andesite. DDH-CC-20-01 is interpreted to have progressed from the very top of the hydrothermal mineralizing system down into increasingly gold-bearing parts of the system. This gradient of increasing gold with depth also correlates to intervals of increased levels of anomalous pathfinder metals (principally As, Hg, Sb, and Bi).

Figure 4: Champagne Gold Project Drill Section and AuEq Results: DDH-CC-20-01

DDH-CC-20-02 (Fig. 5) was sited to test the projected trace of the Last Chance Zone, which had historically been exploited for oxide-silver (Horn Silver Mine) and deeper lead-zinc-silver sulfide mineralization. The reported common occurrence of accessory famatinite (copper-antimony sulfosalt) and aikinite (copper-bismuth sulfosalt) with the sulfide ore is also of exploration interest. The Last Chance Zone was intersected between drilling depths of 123.14 to 166.12 Metres and is comprised of strongly pyritized breccia and brecciated andesite with sulfide intervals approaching semi-massive character.

The results show that the zinc and lead values appear to be tapering off down hole, but anomalous gold content continues to depth, as does silver and copper. The pathfinder metal mercury reaches very high levels with scattered intervals of strong arsenic and scattered intervals of anomalous antimony and bismuth. A fault that is interpreted as a low-angle detachment structure was encountered below the intersection of the Last Chance Zone.

Figure 5. Drill Section and AuEq Results: DDH-CC-20-02

DH-CC-20-07 (Fig. 6) was designed to test the Ella Mine breccia vein but is interpreted to have instead pierced the detachment fault at shallow depth. The hole was advanced through propylitically altered footwall ash-fall and crystal tuff units in an effort to penetrate the eastern edge of the IP anomaly on Lines 4 and 5. Strong sericite-silica alteration and well-developed mosaic brecciation was intersected beginning at a depth of 340 m. The pyrite content increased to 3 – 8% with the sericite and silica alteration and is accompanied by anomalous silver, zinc, lead and arsenic (as well as weakly anomalous gold values). At depths of 441.96 to 452.63 Metres, anomalous silver (up to 42.3 g/t), copper (up to 0.22%), and anomalous gold (up to 0.107 g/t) occur within a brecciated interval. Zinc, lead, and arsenic are also anomalous within this interval. At a depth of 475 m, the hole returned to dominantly propylitic alteration with diminished pyrite content. The direction and angle of the hole suggests that only the outer-most edge of the IP anomaly was intersected.

Quality Assurance/Quality Control Procedure

Idaho Champion Gold adheres strictly to a regimented drill core handling and processing procedure. Core from the drill rig(s) is logged for lithology, mineralization, structure, alteration, and veining. During the logging process 1 to 2 meter samples are delineated by company geologists. Core is then photographed and sawn in half. Following sawing, individual samples are extracted from core boxes and inserted into individual sacks with a unique waterproof sample number tag and sealed. The remaining half-core is left in core boxes for post-cut photographing and storage. Sacks containing samples are kept indoors on site until they are transported to the assay lab.

Quality control (QC) samples are inserted into the sample stream such that there is one QC sample for every ten drill core samples. These QC samples consist of certified standards (known metallic content) and blanks (known barren of metals). Two styles of blank material were used: a coarse blank and a pulverized blank. QC sample insertions alternate between standard and blank.

The first sample shipment was delivered to ALS Geochemistry’s facility in Elko, NV. All subsequent sample shipments were delivered to American Assay Labs (AAL) in Sparks, NV. ALS and AAL conform to ISO 17025 requirements. All drill samples and coarse blanks are crushed to 70% passing 2mm at the assay lab, and 1 kg material is split and pulverized to 85% passing 75 micron. All samples are processed by 30 gram fire assay- Inductively coupled plasma optical emission spectrometry (ICP-OES). Samples are additionally analyzed for 35, 36, or 61 multi-element analysis by ICP-OES and/or inductively coupled plasma mass spectrometry (ICP-MS). Samples containing Au or Ag above detection limits by ICP-OES analysis are automatically re-analyzed by fire assay with a gravimetric finish.

All drill intervals reported in this release are calculated using a 0.10 g/t gold cut-off grade and a maximum of 3 Metres consecutive waste.

About the Champagne Project

The Champagne Mine* was operated by Bema Gold as a heap leach operation on an epithermal gold-silver system that occurs in volcanic rocks. Bema Gold drilled 72 shallow reverse circulation holes on the project, which complement drilling and trenching from other previous operators. The property has had no deep drilling or significant modern exploration since the mine closure in early 1992. The Champagne Deposit contains epigenetic style gold and silver mineralization that occurs in strongly altered Tertiary volcanic tuffs and flows of acid to intermediate composition. Champagne has a near surface cap of gold-silver mineralization emplaced by deep-seated structures that acted as conduits for precious metal rich hydrothermal fluids. Higher grade zones in the Champagne Deposit appear to be related to such feeder zones.

* The Company cautions that the information about the past-producing mine may not be indicative of mineralization on Champion’s property, and if mineralization does occur, that it will occur in sufficient quantity or grade that would result in an economic extraction scenario. The historic data were simply used to evaluate the prospective nature of the property. The Company has not yet conducted sufficient exploration to ascertain if a mineral resource is present on the property.

Qualified Person

The technical information in this press release has been reviewed and approved by Peter Karelse P.Geo., a consultant to the Company, who is a Qualified Person as defined by NI 43-101. Mr. Karelse has more than 30 years of experience in exploration and development.

About Idaho Champion

Idaho Champion is a discovery-focused gold exploration company that is committed to advancing its 100% owned highly prospective mineral properties located in Idaho, United States. The Company’s shares trade on the CSE under the trading symbol “ITKO”, on the OTCQB under the trading symbol “GLDRF”, and on the Frankfurt Stock Exchange under the symbol “1QB1”. Idaho Champion is vested in Idaho with the Baner Project in Idaho County, the Champagne Project located in Butte County near Arco, and four cobalt properties in Lemhi County in the Idaho Cobalt Belt. Idaho Champion strives to be a responsible environmental steward, stakeholder and a contributing citizen to the local communities where it operates. Idaho Champion takes its social license seriously, employing local community members and service providers at its operations whenever possible.

For further information, please visit the Company’s SEDAR profile at www.sedar.com or the Company’s corporate website at www.idahochamp.com.

Cautionary Statements

Neither the Canadian Securities Exchange nor its regulation services provider has reviewed or accepted responsibility for the adequacy or accuracy of this press release

This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Investor Contacts

Nicholas Konkin
Marketing and Communications
Phone: 416-567-9087
Email address: nkonkin@idahochamp.com

Source: Idaho Champion

Ely Gold Royalties Acquires Heavy Rare Earth El Campo Project, California

 

Samples Return up to 8.60% Total Critical Rare Earth Oxides Located 3.2 Miles from MP Material’s Mountain Pass Mine

Vancouver, British Columbia, Canada, February 12, 2021. Ely Gold Royalties Inc. (TSX-V:ELY, OTCQX:ELYGF) (“Ely Gold” or the “Company”) is pleased to report nine assayed samples of total rare earth oxides (“REO”) at its El Campo Project (“El Campo”) located in San Bernardino County, California. El Campo encompasses five contiguous unpatented mining claims that are surrounded by mining claims held by MP Materials (NYSE: MP) which make up the Mountain Pass Mine Property (“Mountain Pass”). Mountain Pass is the only operating rare earth mine in the Western Hemisphere.. El Campo is located along strike and 3.2 miles southeast of Mountain Pass (see Figure #1). Ely Gold Acquired El Campo through staking.

Since acquiring El Campo, Ely Gold has collected and analyzed a total of nine bedrock samples which returned up to 8.60% total Rare Earth Oxides (“REO”), similar in grade to Mountain Pass ore. The REO mineralization is hosted by syenite and shokonite dikes. The mineralized zones sampled are carbonatite composed of calcite and or dolomite, barite and bastnasite and are up to 20 feet wide at surface.

El Campo’s REO content is made up of heavy rare earth elements Nd, Pr, La, Ce & Sm. The elevated higher-value elements, Neodymium-Praseodymium (“NdPr”) are important for producing permanent magnets used in electric vehicles and wind turbines while the Samarium (“Sm”) is important for defense applications such as drones and cruise missles. All nine of the samples, which returned REO values of 4% or greater, are summarized in the table below:

El Campo Project Sampling Program Highlights

Trey Wasser, President and CEO commented; “we are excited with the impressive grades from our initial sampling that suggest the potential to outline a high-grade rare earth deposit at our El Campo Project. The proximity to the high-grade Mountain Pass Mine, North America’s only operating rare earth mine, makes this a very exciting project. El Campo will be placed in our “properties available for sale” portfolio, The sale of El Campo will generate Ely Gold’s first rare earth royalty”..

Figure 1

Qualified Person

Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold Royalties Inc. is a Nevada focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike and Marigold, three of Nevada’s largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining. The Company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold also generates development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the Company’s ability to locate and purchase third-party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favourable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.

On Behalf of the Board of Directors
Signed “Trey Wasser”
Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
trey@elygoldinc.com

972-803-3087

Joanne Jobin, Investor Relations Officer
jjobin@elygoldinc.com

647 964 0292

FORWARD-LOOKING CAUTIONS: This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including, but not limited to, statements regarding completion of the Transaction. Forwardlooking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company’s inability to control whether the buy-down right will ever be exercised, and whether the right of first refusal will ever be triggered, uncertainty as to whether any mining will occur on the property covered by the Probe Royalty such that the Company will receive any payment therefrom, and the general risks and uncertainties relating to the mineral exploration, development and production business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Source: Ely Gold Royalties

Comstock and MCU Ready Launch of Mercury Remediation Operations; First Regional Remediation and Extraction Facility Expected to Begin Full Operations in March 2021

 

Virginia City, NV (February 10, 2021) – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) and Mercury Clean Up LLC (“MCU”), announced today that construction is nearly complete in their Clean Mercury Remediation Technologies (“CMRT”) joint venture, representing the first mercury remediation and gold extraction facility in the province of Davao D’ Oro, Philippines, with initial operations launching next week.

Artisanal and Small-Scale Gold Mining (ASGM) Dilemma

Mercury?dependent ASGM uses a process known as amalgamation to dissolve gold from natural deposits. The amalgam is then typically isolated by hand and then heated to distill the mercury and isolate the gold. Problematically, mercury is hazardous to human health and the environment, where residual ASGM wastes contaminate water and soil and ultimately bioaccumulate into food chains. Mercury risks to children are particularly acute, with mercury emissions from ASGM disabling both physical and mental development. The process was regulated into near extinction by most countries, but upwards of 20 million people still use mercury to mine for gold in more than 70 countries, making mercury pollution from ASGM a U.N. prioritized global issue through the Minamata Convention.

Proprietary Remediation and Extraction Process

The MCU mercury remediation system is the first of several planned by MCU, Comstock and CMRT in the region. Each system is mobile and specifically designed for remote deployment, to remediate mercury from existing amalgamation wastes while extracting residual by-products, including gold, cleaned sand, soil and gravel for commercial use. The mercury wastes are disposed in a safe and compliant manner, thereby repairing and enhancing local ecosystems, while the extracted gold and cleaned by-products provide multiple high-margin revenue streams.

“Each facility is expected to produce positive cash flow within a few months of start-up, with fast returns on capital deployed, typically in less than a year, depending on processing rates and the various by-products extracted from environment,” said Corrado De Gasperis, Comstock’s Executive Chairman and Chief Executive Officer. “Our deployment plan involves several additional systems once the first remediation activities are up and running, so we are very much looking forward to achieving that objective and moving into positive cash flows and sustained growth.”

A photo accompanying this announcement is available at https://www.comstockmining.com/press-releases/comstock-and-mcu-ready-launch-of-mercury-remediation-operations

About Comstock Mining Inc.

Comstock Mining Inc. is a Nevada-based, precious and strategic metal-based exploration, economic resource development, mineral production and metal processing business with a strategic focus on high-value, cash-generating, environmentally friendly, and economically enhancing mining and processing technologies and businesses. The Company has extensive, contiguous property in the historic Comstock and Silver City mining districts (collectively, the “Comstock District”), is an emerging leader in sustainable, responsible mining and processing, and is currently commercializing environment-enhancing, metal-based technologies, products, and processes for precious and strategic metals recovery.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information for

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

 

Chakana Copper Intersects Highest Grade Interval To Date 11m of 2.79 g/t Au, 4.04% Cu, and 330.8 g/t Ag (13.30 g/t Au-Eq) At Huancarama, Soledad Project, Peru

 

Within 93m of 1.63 g/t Au, 0.95% Cu, and 129.2 g/t Ag (4.77 g/t Au-Eq) from 117m

Vancouver, B.C., February 9, 2021 – Chakana Copper Corp. (Tsx-V: Peru; Otcqb: Chkkf; Fra: 1zx) (The “Company” Or “Chakana”), Is Pleased To Release Results For Two Additional Drill Holes With The Highest-Grade Intercepts Reported To Date From The Huancarama Breccia Complex, Within The Soledad Project In Ancash, Peru (Fig. 1). These Holes Complement The Initial Ten Holes Previously Published (See News Releases Dated January 12, 2021, And January 25, 202). Twenty-Two Hq Diamond Core Holes Have Been Completed Thus Far With Continued Success Expanding The Mineralized Breccia At Huancarama.

Mineralized intervals from two additional holes at Huancarama include:

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu-eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au-eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Utilizing the same platform on the south side of the breccia complex that holes SDH20-161 and SDH20-162 were drilled from, holes SDH20-163 and SDH20-164 were oriented east-northeast across the breccia body outlined by the first 10 drill holes (Figures 2 and 3). Both holes intersected continuous mineralization across the breccia body. Hole SDH20-163 was oriented beneath the north edge of the outcropping H1 breccia and intersected 88.05m with 0.28 g/t Au, 0.32% Cu, and 30.2 g/t Ag (1.17 g/t Au-eq) starting at 61m. Hole SDH20-164, drilled beneath the southeast edge of the collapse zone, encountered 93m with 1.63 g/t Au, 0.95% Cu, and 129.2 g/t Ag (4.77 g/t Au-eq) from 117m depth, including 42m with 2.90 g/t Au, 1.41% Cu, and 182.3 g/t Ag (7.44 g/t Au-eq) from 124m. Examples of mineralized drill core from these holes are shown in Figure 4.

David Kelley, President and CEO commented, “these two holes demonstrate the successful continuation of the drilling at Huancarama, further defining a large mineralized breccia pipe. The H1 and H2 breccias exposed at surface coalesce at depth, forming a large coherent breccia pipe. We continue to see excellent grades, particularly in the central part of the breccia body below the collapse zone. Hole SDH20-164 exhibits spectacular mineralization with 11m of 2.79 g/t Au, 4.04% Cu, and 330.8 g/t Ag; and 4m of 2.61 g/t Au, 5.44% Cu, and 926.2 g/t Ag, within two separate intervals. The high-grade zones reported in previous drill holes correlate well with those reported in this hole and are open at depth. Drilling is ongoing at Huancarama and we look forward to reporting additional results soon.”

Huancarama Target Area and the Phase 3b Drill Program

The Huancarama Breccia Complex is located 300m south of and 400m above the deepest breccia intercept at Paloma. Within the complex there are five principal breccia bodies exposed at surface over approximately 200m horizontally (Fig. 5). There is a distinctive feature believed to be a collapse zone with dimensions of 50m by 30m. Unverified reports suggest that this may be due to small-scale mining. Two historic adits are in the complex, one trending north-northeast for 170m along the western side of H1 (Fig. 2), and a second shorter adit of 21m at H2. Surface sampling from the breccia bodies and channel sampling of the adits yielded strongly anomalous gold results (see news release dated November 19, 2019). In addition to several targets within the complex, numerous additional targets exist in the Huancarama and Paloma area.

Results reported here are part of the ongoing Phase 3b drill program, which is fully funded from the Company’s current treasury and is anticipated to see 15,000 metres completed. Phase 3b is testing a cluster of high-grade, gold-enriched tourmaline breccia pipe targets within the Paloma and Huancarama target areas. Thirty-two holes have now been reported from the Phase 3b program.

About Chakana Copper

Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the high-grade gold-copper-silver Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 33,353 metres of drilling has been completed to-date, testing nine (9) of twenty-three (23) confirmed breccia pipes with more than 92 total targets. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver. For more information on the Soledad project, please visit the website a www.chakanacopper.com.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet or exceed industry standards. Core samples are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru. Sample batches include certified reference materials, blank, and duplicate samples that are then processed under the control of ALS. All samples are analyzed using the ME-MS41 (ICP technique that provides a comprehensive multi-element overview of the rock geochemistry), while gold is analyzed by AA24 and GRA22 when values exceed 10 g/t by AA24. Over limit silver, copper, lead and zinc are analyzed using the OG-46 procedure. Soil samples are analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).

Results of previous drilling and additional information concerning the Project, including a technical report prepared in accordance with National Instrument 43-101, are made available on Chakana’s SEDAR profile at www.sedar.com.

Qualified Person

David Kelley, an officer and a director of Chakana, and a Qualified Person as defined by NI 43-101, reviewed and approved the technical information in this news release.

ON BEHALF OF THE BOARD
(signed) “David Kelley”
David Kelley
President and CEO

For further information contact:
Joanne Jobin, Investor Relations Officer
Phone: 647 964 0292
Email: jjobin@chakanacopper.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statement Advisory: This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Chakana to be materially different from any future results, performance, or achievements expressed or implied by the forward looking statements. Forward looking statements or information relates to, among other things, the interpretation of the nature of the mineralization at the Soledad copper-gold-silver project (the “Project”), the potential to expand the mineralization, and to develop and grow a resource within the Project, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief in the potential for mineralization within unexplored parts of the Project. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward- looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

Figure 1 – View looking north showing breccia pipes and occurrences within the northern Soledad cluster. Pipes that have been drilled in previous campaigns are shown in red. Targets shown in green are the focus on this 15,000m drill campaign. Other pipes and occurrences remain to be tested by drilling. Additional breccia pipes occur on the south half of the property and are not shown here.

Figure 2 – Map of the Huancarama Breccia Complex and drill hole lithology in holes completed to date. Red represents tourmaline breccia based on the first ten holes and lithology mapped in the underground tunnel. Black dotted outlines show surface expression of mapped breccias; white dashed line shows collapse zone. Location of section line for Figure 3 indicated.

Figure 3 – Section looking northwest highlighting the drill holes at Huancarama reported in this release. Light red 3D shape shows preliminary shape of breccia based on the first ten holes and lithology mapped in the underground tunnel.

Figure 4 – Core photos from Huancarama: SDH20-163 (83.3m) mosaic tourmaline breccia with partial clast replacement by chalcopyrite; SDH20- 163 (117.85m) tourmaline breccia with chalcopyrite and red sphalerite open space filling ; SDH20-164 (123.2 to 131.12m) – example of high-grade copper sulfide (chalcopyrite) clast replacement and sulfide-cemented breccia. Core diameter is 6.35cm (HQ) in all instances.

Figure 5 – Drone image looking northeast at the Huancarama Breccia Complex showing the five principal tourmaline breccia bodies exposed at surface (H1-H5), historic adit portal, and drill platforms. Note drill rig in center of image.

SOURCE: Chakana Copper

Golden Predator Reports Final Drill Results from Brewery Creek Mine

 

Significant gold mineralization in all drill holes reaching target depth

Vancouver, BC, February 9, 2021: Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) (the “Company”) today announces the results from the final 16 of 32 reverse circulation drill holes from the 2020 work program at its licensed 100%-owned Brewery Creek mine project ?located approximately 55 km by road from Dawson City, Yukon.

Drill program highlights include:

• 19.81 m of 1.57 g/t gold from a depth of 85.34 m in drill hole RC20-2694;
• 21.34 m of 1.31 g/t gold from a depth of 123.44 m in drill hole RC20-2702;
• 21.34 m of 1.09 g/t gold from a depth of 80.77 m in drill hole RC20-2705;
• 9.14 m of 1.41 g/t gold from a depth of 45.72 m in drill hole RC20-2706; and
• 12.19 m of 0.55 g/t gold from a depth of 6.10 m and 16.76 m of 0.58 g/t gold from a depth of 62.48 in drill hole RC20-2708.

To view Brewery Creek project and drill location maps: https://www.goldenpredator.com/_resources/news/GPY-NR21-03-BCreek-2020-Drill-Results-Maps-FINAL.pdf

2020 Brewery Creek Exploration Program – Golden Infill Drilling

A total of 32 reverse circulation drill holes, totaling 3,706 m, were completed between the Golden and Lucky resource areas in the fall of 2020. The 2020 program was designed to infill within and around two fences of 2019 drilling that encountered mineralization along a 400 m gap where there had been no previous drilling between the Golden and Lucky resource areas. The objective was to establish sufficient drill density in this 400 m gap to be able to incorporate the Lucky resource into the greater Keg pit shell.

The gold assays for the remaining 16 drill holes of the program are reported in this release with significant thicknesses of gold mineralization present in 14 of the 16 of the drill holes. The two drill holes not intersecting mineralization were not completed to target depth. The collars of 8 of the drill holes are located outside of the current Golden resource area and the other 8 are located on the southwestern margin of the current Golden resource area.

Other significant mineralized intervals include 7.62 m of 2.68 g/t gold from a depth of 102.11 m in drill hole RC20-2700 and multiple intercepts in drill hole RC20-2707 including 9.14 m of 0.58 g/t gold from a depth of 42.67 m and 13.72 m of 0.57 g/t gold from a depth of 70.10 m.

Gold mineralization is controlled by fractures oriented sub-parallel to the main thrust fault and a series of high angle conjugate fractures developed within main shear zone. Composite mineralized intercepts thicknesses range from 6.10 m to 45.72 m with an average composite mineralized thickness of 26.05 m in the 11 drill holes that had full intersections across the mineralized zone. Mineralization encountered in these 16 holes consists of sulfide, transitional and lesser amounts of oxide material. Within the area of this drilling the eastern strike extension of the mineralized zone is not yet defined, and the zone remains open at depth down dip.

2020 Brewery Creek Exploration Program – Classic/Lone Star

Three reverse circulation drill holes, totaling 687 m, were completed in 2020 targeting newly defined extensions of the Classic/Lone Star porphyry-style mineralization. The drill holes were widely-spaced step-out holes drilled at significant distances from any existing drilling at the Classic and Lone Star areas. Two of the drill holes (RC20-2710 and RC20-2711) were located approximately 500 m from each other and 650 m southeast of the closest previous drilling within the Classic and Lone Star areas. No significant gold was intersected in either drill hole. The third drill hole (RC20-2712), located approximately 1,330 m to the east of the nearest previous drilling, tested a coincident aeromagnetic and radiometric anomaly indicating a structural zone along the margin of a biotite monzonite intrusive within an area of spotty gold and arsenic in soil geochemistry. This initial test was encouraging with gold intersected in two intervals of monzonite with 0.33 g/t gold over 1.52 m at a depth of 120.40 m and 0.27 g/t gold over 1.52 m at a depth of 131.06 within a 15.29 m zone of anomalous mineralization. Mineralization within the zone consists of pyrite with local arsenopyrite associated with chlorite and calcite alteration minerals.

Continuing exploration will develop extensions to the Classic and Lone Star area mineralization, a near surface bulk tonnage target that lies approximately 3 km south of the Brewery Creek Reserve Trend. Together with the Lone Star zone, the Classic zone demonstrates the discovery potential of the entire southern portion of the large Brewery Creek property where a large syenite intrusion hosts gold mineralization primarily in sheeted quartz/carbonate/pyrite veins and as fine-grained disseminations. Initial column leach tests have indicated that this intrusive hosted mineralization is leachable to at least a 200 m depth. This mineralization is clearly a separate younger mineralizing event not associated with the quartz monzonite, thrust fault hosted, mineralization historically exploited in the Reserve Trend which is the subject of the ongoing bankable feasibility study.

To view a complete table of results: https://www.goldenpredator.com/_resources/news/GPY-NR-21-03-BRC-DrillAssays-2020-20210128.pdf

2020 Exploration Drill Program

The 2020 Brewery Creek drill program built upon Golden Predator’s successful 2019 program that established continuity of mineralization within the licensed Reserve Trend between the eastern edge of the Canadian-Fosters-Kokanee-Golden pits (Keg pitshell) east to the Lucky pit. The 32 reverse circulation drill holes drilled in 2020 were designed to fill in and expand the gold resource between the eastern Golden zone and western Lucky zone. The targeted mineralization between these zones has been offset by a high-angle normal fault and was previously untested until 2019 when the zone was intersected with multiple drill holes.

Infill drilling within this 400 m gap between the eastern edge of the Fosters to Golden trend and the western edge of the Lucky zone is also to increase the density of drilling to convert Inferred resources to Indicated resources and confirm continuity of mineralization between the two deposits while testing for additional resources. The goal is to establish and confirm continuous mineralization along the Fosters-Canadian-Kokanee-Golden-Lucky zones for mine design now in progress as a part of the Brewery Creek Bankable Feasibility Study (BFS).

Brewery Creek Mine: Resources¹

Materials on the heap leach pad were not included in the resource update. Mineral Resources estimates conducted within a pit shell developed at $2,000/oz gold with an internal cut-off grade calculated at $1,500/oz gold was used to report mineral resource inventories.

The resource estimate is based on a recovery model created from assay data, bottle and column leach test work and historic recovery analysis instead of a less accurate visual oxide-sulfide boundary developed from geologist drill logs. Sedimentary and intrusive rocks, which have distinct metallurgical characteristics, were estimated separately based on gold-grade distribution analysis. A supporting NI 43-101 Technical Report is filed on SEDAR at www.sedar.com.

Brewery Creek Mine Work Plan

The Brewery Creek Mine is a licensed brownfields heap leach gold mine that was operated by Viceroy Minerals Corporation from 1996 to 2002. Brewery Creek is authorized to restart mining activities as defined within the Quartz Mining License and Water License. The Company intends to resume mining and processing of licensed deposits when supported by an independent study that outlines technical and economic viability. The 180 km2 property is located 55 km east of Dawson City and is accessible year-round by paved and improved gravel roads. Significant infrastructure remains in place, allowing for a timely restart schedule under existing operating licenses.

A Bankable Feasibility Study (BFS) is being conducted by Kappes Cassiday & Associates of Reno, Nevada which will include a multi-year mine plan for the advancement of the Brewery Creek project. The BFS will include an inventory of the mineralized material remaining on the heap and mine planning (completed by Tetra Tech Inc of Golden, Colorado) for the resumption of the mining of material from leachable resources contained within the licensed area and reported in the Company’s Mineral Resource Estimate. The BFS will include all the key parameters involved in reconstructing or adding necessary infrastructure including a crushing facility, the Adsorption-Desorption-Recovery (“ADR”) plant and assay lab and an implementation schedule, sourcing, and economic cash flow model sufficiently detailed to move directly into procurement, development and construction if economically warranted. Any production decisions would be dependent on the outcome of a study demonstrating positive technical and economic viability.

Sampling Methodology, Quality Control and Assurance

Analyses for drill samples were performed by SGS Canada, Inc., ALS Canada and Bureau Veritas, Canada with sample preparation in Whitehorse, YT and assaying in Burnaby, North Vancouver and Vancouver, BC respectively. Drill samples were analyzed for gold using a 30 gram fire assay with atomic absorption finish (SGS-GO FAA30V10 method, ALS-Au AA-25 method and BV-FA430 method). Quality controls standards include standard reference material, certified blank and field duplicate samples in every sample dispatch.

The technical content of this news release has been reviewed and approved by Jeff Cary, CPG, a Qualified Person as defined by National Instrument 43-101 and a consultant to the Company.

About Golden Predator Mining Corp.

Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities, under its Quartz Mining and Water Licenses, in Canada’s Yukon. With established resources grading over 1.0 g/t gold the Company is completing a Bankable Feasibility Study for the restart of heap leach operations. The Brewery Creek Mine project operates with a Socio Economic Accord with the Tr’ondëk Hwëch’in First Nation.

For additional information on Golden Predator Mining Corp.:
Janet Lee-Sheriff
Chief Executive Officer
(604) 260-8435
info@goldenpredator.com
www.goldenpredator.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations that the Brewery Creek will advance to an early production decision, or the extent of any additional mineral resource that could result from incorporating 2019 exploration drilling. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

1. The 2020 Mineral Resource Estimate was conducted in accordance with CIM guidelines and is reported in a NI 43-101 Technical Report which will be filed on SEDAR and the Company’s website within 45 days.

Source: Golden Predator Mining

Comstock Focuses on Climate Smart Mining; Develops Existing and New Precious and Strategic Metals Projects to Fuel Clean Energy Transition

 

Virginia City, NV (February 4, 2021) Comstock Mining Inc. (“Comstock” and the “Company”) (NYSE American: LODE), a diversified precious and strategic metals production and processing company, today updated its plans for meeting the escalating demand for clean energy technologies. The Company and our partners, including Mercury Clean-Up, LLC (“MCU”) started with the deployment of new metals extraction and processing technologies that remediate soils and more efficiently extract and process gold at the Company’s existing facilities and abroad and we have targeted new development projects that efficiently reprocess and renew silver and other strategic metals.

Comstock’s shift to climate-smart mining started with technologies that target tailings, leach pads, and other mining wastes, in order to capture residual precious metals. The Company’s partnerships, projects and technologies, involve proprietary processes for remediating mercury and other metals from abandoned and leached mining sites and the surrounding eco-systems, while more efficiently extracting silver, gold and other strategic metals.

Corrado De Gasperis, Comstock’s Executive Chairman and Chief Executive Officer stated, “Our ongoing work with remote mercury recovery and gold extraction provides an immediate example of our approach. MCU’s mercury remediation equipment is currently deployed in the Philippines, with processing operations commencing this month. We have coordinated with the community, landed the equipment, assembled the team, and prepped for start-up. Our joint venture partners are collaborating to begin removing toxic mercury contamination from U.S. and international eco-systems, while efficiently extracting gold from contaminated and abandoned mining sites.”

The Company plans to build and improve on these mineral and metal developments by introducing additional technologies that maximize recoveries from the Company’s existing gold and silver resources in Nevada, as well as other conservation-based projects that the Company and its partners plan on introducing in the coming months.

Quantum Surge in Global Demand for Metals

Comstock believes that its approach is especially timely and important. A recent report from the World Bank, entitled Mineral Intensity of the Clean Energy Transition, reported that the production of graphite, cobalt, lithium and many other strategic minerals and metals are expected to increase dramatically by 2050, as an estimated 3 billion tons of minerals and metals are used to deploy energy storage and renewable energy production projects.

“The world is becoming increasingly aware of the current risks and realities presented by climate change,” concluded Mr. De Gasperis. “A quantum surge of investment is expected in conservation-based energy storage and renewable energy projects worldwide. We cannot rely on conventional mining methods to meet critical mineral and metal needs and we are energized by these new opportunities, and the prospect of deploying these technologies to build shareholder value by meeting the increasing higher demand for these strategic, critical and precious metals.”

About Comstock Mining Inc.

Comstock Mining Inc. is a Nevada-based, precious and strategic metal-based exploration, economic resource development, mineral production and metal processing business with a strategic focus on high-value, cash-generating, environmentally friendly, and economically enhancing mining and processing technologies and businesses. The Company has extensive, contiguous property in the historic Comstock and Silver City mining districts (collectively, the “Comstock District”), is an emerging leader in sustainable, responsible mining and processing, and is currently commercializing environment-enhancing, metal-based technologies, products, and processes for precious and strategic metals recovery.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information for

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining