Category: Natural Resources

 

Comstock Mining Announces Positive Nine-months Earnings of $0.63 Per Share: Recognizes $18.3 Million Gain on Lucerne Sale

 

Virginia City, NV (November 17, 2020) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced financial updates (unaudited) and strategic highlights for the third quarter and year to date:

Selected Strategic Highlights

• Completed the sale of the Lucerne mine to Tonogold Resources Inc. (“Tonogold”) for total cash, stock and debt consideration of approximately $18.8 million, plus Tonogold’s assumption of certain current and future obligations, and recognized a gain on the sale of approximately $18.3 million;
• Retained Investment in Tonogold share securities valued at $9.7 million at September 30, 2020;
• Retained Receivable in Tonogold secured note valued at $6.4 million at September 30, 2020;
• Extinguished its $4.8 million Senior Secured Debenture that was due later this year via a combination of cash proceeds from the Lucerne mine sale and unsecured promissory notes with favorable, extended terms;
• Installed and commenced the Mercury Clean Up LLC (“MCU”) Comstock mercury remediation pilot;
• Shipped and landed through MCU Philippines Inc. (“MCU-P”), the first landmark Philippines mercury remediation system, working together with our joint venture partner Clean Ore Solutions OPC;
• Completed an airborne geophysical survey of the Dayton-Spring Valley exploration complex;
• Expanded the airborne geophysical survey over all of the Company’s Comstock District properties;
• Contracted to lease, with an option to sell, the Daney Ranch for $2.7 million to a drilling company; and
• Extended the $10.1 million sale of Comstock’s two Silver Springs, NV properties until December 31, 2020.

Unaudited Third Quarter and Year To Date 2020 Selected Financial Highlights

• Costs applicable to mining decreased $296,023 during the three months ended September 30, 2020, as compared to the same period in 2019, as a result of certain assets becoming fully depreciated. These costs consist solely of depreciation expense on temporarily idled processing equipment;
• Real estate operating costs increased $690,306 during the three months ended September 30, 2020, as compared to the same period in 2019, almost solely due to depreciation recorded during the third quarter that would have been charged for previous periods, on the Gold Hill Hotel and Daney Ranch properties;
• Exploration and pre-development costs increased $152,978 during the three months ended September 30, 2020, as compared to the same period in 2019, primarily due to the costs of conducting an airborne geophysical survey of the Company’s resource areas and exploration targets;
• Interest expense decreased $15,140 during the three months ended September 30, 2020, as compared to the same period in 2019, as a result of lower average debt outstanding, including the retirement of the remaining Senior Secured Debenture in August 2020;
• Net income was $17.3 million, or $0.54 per share for the three months ended September 30, 2020, as compared to $0.4 million, or $0.02 per share in the prior comparable period, driven by transaction gains;
• Net income was $18.3 million, or $0.63 per share for the nine months ended September 30, 2020, as compared to a net loss of $3.5 million, or ($0.20) per share in the prior comparable period, driven by transaction and investment gains;
• Invested $1.9 million (in cash and stock) to date in MCU, as of September 30, 2020;
• Invested $1.0 million (in cash) to date in MCU-P, as of September 30, 2020;
• Total assets were $48.2 million, including current assets of $26.0 million, at September 30, 2020;
• Debt obligations totaled $4.8 million at September 30, 2020; reduced to $2.5 million by October 10; and
• Cash and cash equivalents at September 30, 2020, were $1.7 million.

Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our successful sale of Lucerne has eliminated substantially all of our debt and recorded an $18 plus million gain and expectations of full-year profit for 2020, all while reducing our operating expenses and positioning our balance sheet for growth. We believe that our resource-based technology, properties, plant and equipment, and existing gold and silver mineral properties are undervalued. Our strategic plan includes establishing and growing the value of our existing mineral and royalty properties, commercializing and growing a global, ESG-compliant, profitable mercury remediation business, while still monetizing over $25 million in assets over the next fifteen months, for funding that growth.”

Comstock Mining’s Corporate Growth

The Company’s goal is to grow per-share value by commercializing environment-enhancing, precious and strategic-metal-based products and processes that generate a rate of predictable cash flow (throughput) and increase the long-term enterprise value of our northern Nevada based platform. The next three years are dedicated to delivering that value by achieving the performance objectives listed below:

Establish and grow the value of our mineral properties:

• Establish the Dayton Resource area’s maiden, stand-alone mineral resource estimate;
• Expand the Dayton-Spring Valley Complex through exploration drilling and geophysical modelling;
• Develop the expanded Dayton-SV Complex toward full economic feasibility, supporting a decision to mine;
• Entitle the Dayton-SV Complex with geotechnical, metallurgical, environmental studies and permitting; and
• Validate the Comstock NSR Royalty portfolio (Lucerne Mine, Occidental Lode, Comstock Lode, etc.).

Commercialize a global, ESG-compliant, profitable, mercury remediation system:

• Establish the technical efficacy of MCU’s Comstock Mercury System, and protect the intellectual property;
• Initiate and operate the first international mercury remediation project by deploying MCU’s second and third mercury remediation systems into the Philippines; and
• Identify, evaluate and prioritize a pipeline of potential mercury remediation projects; then deploy the third and fourth mercury remediation projects, producing extended, superior cash flow returns.

Monetize non-strategic assets and build a quality organization:

• Monetize our third-party, junior mining securities responsibly, for $12.5 million or more;
• Monetize our non-mining assets for $12.5 million, excluding the Gold Hill Hotel;
• Grow the value of our Opportunity Zone investments to over $30 million; and
• Deploy a systemic organization, capable of accelerating growth and handling complexity.

The strategic plan is designed to deliver per-share value over the next three years, while positioning the Company for continued growth beyond 2023.

Comstock Mining’s Corporate Realignment

Comstock Mining Inc. is the parent company that wholly owns the realigned subsidiaries and is expanding its mineral resources, mercury remediation operations and royalty portfolios.

Mr. De Gasperis continued, “The realignment enables partnerships and transactions that increase value-creating opportunities and accelerate our precious and strategic-metal-based products and process growth. Our goal is to deliver over $500 million of value, or at least $12 per share, from our existing assets and the commercialization of these environmentally friendly metal processing and mining technologies, partnerships and ventures.”

Comstock Exploration and Development

Our district-wide exploration and development plans contemplate three specific, geological areas that the Company has organized into wholly-owned subsidiaries called Comstock Exploration and Development LLC, Comstock Northern Exploration LLC, and Comstock Mining LLC. Comstock Exploration and Development LLC includes the Dayton and Spring Valley areas. Comstock Northern Exploration LLC includes the Occidental and Gold Hill exploration targets now leased to Tonogold, and Comstock Mining LLC, recently acquired by Tonogold, includes the Lucerne properties. These exploration targets represent over 7 miles of mineralized strike length, with current and historical grades of gold and silver, and significant historical mine production.

Comstock Processing LLC

Comstock Processing LLC (“CPL”), owns all of the property, plant, equipment, and permits for the crushing, agglomerating, leaching, Merrill Crowe processing, mercury retort, refining, and metallurgical operations located at 1200 American Flat Road, Virginia City, Nevada. The facilities represent a fully permitted platform, best positioned for implementing our Strategic Focus on high-value, cash-generating, precious and strategic metal-based activities.

To date, Comstock Processing has entered into two strategic ventures that leverage its platform for nearer-term cash generation; first with Tonogold for the Lease-Option Agreement to lease and operate the facilities and second, with Mercury Clean Up LLC (“MCU”) for the commercial pilot of the MCU mercury remediation system.

Dayton Resource and Spring Valley Exploration Areas

During the third quarter of 2020, the Company engaged Geotech Ltd (“Geotech”) of Aurora, Canada, to conduct an airborne geophysical survey of the Dayton resource area, Spring Valley exploration targets, and the rest of the Company’s Comstock district properties. The survey included both magnetic and Geotech’s proprietary Versatile Time-Domain Electromagnetic (“VTEM”) surveys.

The survey was flown from September 19, through October 3, 2020, with 1,161 line-kilometers. The interpreted, three-dimensional results have been recently delivered to the Company and our geological team is just now assessing a deep trove of geophysical and geological data. The results will greatly increase the Company’s understanding of the Dayton resource area, the Spring Valley resource expansion potential, and the rest of the Company’s Comstock district properties.

The Company’s technical staff is currently compiling a detailed structural interpretation of the Dayton resource area, which will provide the framework for a completely new resource model. The detailed interpretation is leading to a list of highly prospective drill targets to further define and expand the mineral resource.

The Company is proceeding to publish a separate S-K 1300 compliant, Initial Assessment technical report for the Dayton resource area to validate a mineral resource estimate. The new technical report will provide not only a new resource estimate, but also a phased drilling plan for further defining and expanding the resource for sustainable, profitable mining. The Company plans to continually advance the Dayton to full feasibility, towards a production ready mine plan. Mining on lands 100% privately held by the Company should shorten the permitting cycle.

Corporate

During 2019, the Company received $6.1 million in Tonogold convertible preferred stock (“CPS”). The CPS became convertible into common shares on May 22, 2020. On May 22, 2020, and September 29, 2020, the Company elected to convert $1.1 million and $2.8 million of CPS, respectively, at $0.18 per common share, for a total of 21,777,778 common shares. Through November 13, 2020, the Company has sold 5,057,894 common shares at an average price of $0.40 per share for proceeds of over $2 million and still holds 16,719,884 shares.

On October 2, 2020, Tonogold redeemed the remaining $2.2 million of CPS for $2.6 million in cash, representing 120% of the CPS face value. The Company promptly reduced its debt from approximately $4.8 million at September 30, 2020, to approximately $2.5 million in early October.

The Company is also owed $4.5 million, in the form of a 12% note receivable, due and payable by Tonogold on September 20, 2021, plus Tonogold’s assumption of $6.7 million in future lease and reclamation obligations, that together represent a permanent reduction of annual operating expenses of approximately $1 million.

Cash and cash equivalents at September 30, 2020, were $1.7 million, total common shares outstanding at both September 30, 2020, and November 17, 2020, were 34,440,766 shares.

Outlook

The Company expects to monetize its non-mining assets over the next fifteen months, for over $22 million, net of debt. The Company expects to close on the sale of certain properties and senior water rights in Silver Springs, Nevada, to Sierra Springs Enterprises Inc., for total proceeds of approximately $10 million. The Company also expects to monetize the remaining $9.7 million in Tonogold securities over the next fifteen months and collect on the $4.5 million in notes receivable in the next 10 months. The Company will use the proceeds to extinguish the outstanding $2.5 million in debt obligations, plus accrued interest, and fund the Company’s growth initiatives.

The Company’s fourth quarter 2020 plans also include updating the Dayton’s current resource estimate and continuing southerly into Spring Valley with incremental exploration programs that include recently completed geophysical surveys, surface exploration and definition drilling of targets identified by the geophysical surveys, surface mapping, prior drilling and deeper geological interpretations that all lead to publishing a new, S-K 1300 compliant, mineral resource estimate.

The Company’s remaining 2020 plans include advancing the investment in and the commercialization of MCU’s mercury remediation processing technologies. The Company expects to close on the MCU transaction during the fourth quarter of 2020, meaning it will then own 15% of MCU and expects to close on the MCU Philippines transaction in the first quarter of 2021, meaning it will then own 25% of MCU and 50% of its first joint venture in the Philippines. Oro Industries Inc. has delivered the 25-ton-per-hour mercury recovery plant and is testing and preparing the system for its pilot operations on the Comstock, including a 200 gallon-per-minute dissolved air flotation water treatment plant. These pilot trial operations will continue throughout 2021, at the Company’s American Flat processing facility, to validate and fine-tune the mercury extraction and remediation process, with the objective of reclaiming and remediating the Company’s existing properties, enhancing the values of, and evaluating the potential economic feasibility for, these properties, and creating new global growth opportunities in mercury remediation by demonstrating MCU’s technological and operational effectiveness, efficiency, and feasibility.

MCU-P has delivered its first international system to the Philippines and plans to commence reclamation operations during the fourth quarter 2020. MCU-P will operate under a joint venture agreement with Clean Ore Solutions, a Philippine Company, for mercury extraction and remediation of Mount Diwalwal and the Naboc River, one of the most mercury polluted, gold mining regions in the world. This represents the first real international opportunity for large-scale mercury remediation and environmental reclamations, using MCU’s systems, and establishing MCU as a leader in mercury remediation projects, and in particular, contamination caused by artisanal and small-scale miners.

Conference Call

The Company will host a conference call today, November 17, 2020, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time. The live call will include a moderated Q&A, after the prepared comments by the Company. Please join the event 5-10 minutes prior to scheduled start time. When prompted, provide the confirmation code. The dial-in telephone numbers for the live audio are as follows:

Toll Free: 1-800-367-2403

Direct: 1-334-777-6978

Confirmation Code: 2739116
The audio will be available, usually within 24 hours of the call, on the Company’s new website:

http://www.comstockmining.com/investors/investor-library

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”) and 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; the possible redemption of debentures 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

Comstock Mining Inc.
1200 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

 

Golden Predator Completes 2020 Drill Program at Brewery Creek Mine, Yukon

 

Vancouver, BC, November 17, 2020: Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) (the “Company”) today announces the completion of its 2020 work program at its licensed 100%-owned Brewery Creek mine project ?located approximately 55 km by road from Dawson City, Yukon. The 2020 program consisted of 60 drill holes for ~5,600 m of drilling including ~ 4,400 m of exploration and in-fill drilling plus 1,200 m of metallurgical and geotechnical drilling. All samples have been shipped and are currently being processed.

Brewery Creek maps can be viewed at: https://www.goldenpredator.com/_resources/news/GPY-NR-2020-Drill-Program-Completed-MAPS.pdf.

2020 Exploration and Technical Drill Program

The 2020 Brewery Creek drill program consisted of exploration, in-fill, geotechnical, hydrogeologic and metallurgical drilling to advance the Bankable Feasibility Study currently underway and projected for completion in Q1/21.

Infill Drilling

This program builds on 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 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).

A total of 32 reverse circulation drill holes totaling 3,706 m were completed in the gap area between the eastern edge of Golden and western edge of Lucky. Samples from this program have been submitted to ALS Laboratories for sample preparation in Whitehorse, Yukon and assaying in Vancouver, British Columbia. Initial assay results from the program are expected in late November with complete assay results expected by the end of the year.

2020 Exploration Drilling of New Large-Scale Targets – Classic and Lonestar Zone

The 2020 drill program, targeted newly defined extensions of the Classic/Lone Star porphyry-style intrusive, with 3 reverse circulation holes totaling 687 m. The holes were very wide 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 at least 650 m southeast of the closest previous drilling within the Classic and Lone Star zones. These holes targeted an area defined by anomalous gold and arsenic soil and rock chip geochemistry within a structural zone. The third drill hole (RC20-2711), 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. All three drill holes encountered multiple fault zones and variable amounts of intrusive rock as dikes/sills within the structural zones.

The Classic Zone is 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-hosted mineralization historically exploited in the Reserve Trend which is the subject of the ongoing bankable feasibility study.

Metallurgical & Geotechnical Drilling

A total of 14 PQ diamond drill holes totaling 540 m were completed in Foster-Canadian-Kokanee-Golden and Lucky pit areas. The program was designed to obtain mineralized material from the Fosters, Kokanee, Golden and Lucky areas for additional column leach tests. The core was shipped to McClelland Labs in Reno, NV where it is currently being tested. The core samples will be used to conduct additional column leach tests at a coarser crush size of approximately 3/4” versus previous test work conducted at 3/8” crush size at Kokanee, Golden and Lucky. These column tests are being conducted to confirm the recent results of column leach tests run at various crush sizes on material from the historic heap leach pad where the data showed slightly better recoveries of gold in solution for the coarser 3/4” crush size. A coarser crush size would help streamline any recovery process. These tests will be detailed in the Bankable Feasibility Study currently underway.

A total of eleven geotechnical/hydrogeologic drill holes were completed to support the ongoing Bankable Feasibility Study at Brewery Creek. A total of 975 m of drilling was completed in 8 diamond drill holes (792 m) and 3 reverse circulation drill holes (182 m). The diamond drill program was consisted of oriented, HQ3 core to support detailed fracture analysis of lithologies in the proposed pit walls and three of these were completed with piezometers. The 3 reverse circulation drill holes were drilled and completed as hydrogeologic monitor wells.

Brewery Creek Mine: Resources

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.

The current 2020 Mineral Resources Estimate supersedes the 2019 Mineral Resource Estimate. 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.

The technical content of this news release has been reviewed and approved by Michael Maslowski, CPG, a Qualified Person as defined by National Instrument 43-101 and is employed by the Company as its Chief Operating Officer.

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:
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. 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 Corp.

 

Palladium One Step-Out Drill Hole Intersects Shallow, High-Grade Mineralization at Murtolampi Zone, Finland

 

November 16, 2020 – Toronto, Ontario – Starting at only 11 m down hole, hole LK20-026 at the Murtolampi Zone, intersected high-grade open pit potential mineralization returning 13 m at 3.4 g/t palladium equivalent (Pd_Eq)* within 79 m at 2.0 g/t Pd_Eq (Figure 1, 2 and 3). said Palladium One Mining Inc. (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) today.

Key highlights:

• Shallow high-grade results suggest potential for a low-cost satellite open pit at Murtolampi, which is close to the existing Kaukua deposit, located 2 km to the south.
• Murtolampi remains open for expansion both laterally and at depth.
• A core, near surface interval of 13 m at 3.4 g/t Pd_Eq starting 66 m down hole in hole LK20-026 returned 79 m at 2.0 g/t Pd_Eq starting 11.0 m down hole.
• Hole LK20-026 is located 50 m southwest of Hole LK20-012 which returned 20 m at 2.3 g/t Pd_Eq, starting 29 m down hole within 87 m @ 1.4 g/t Pd_Eq starting 5.8 m downhole (see news release dated August 25, 2020)
• Hole LK20-026 is also located 550 m northeast of hole LK20-024 which returned a core interval of 3 m at 1.4 g/t Pd_Eq. within 21 m at 0.85 g/t Pd_Eq.
• The mineralized peridotite at Murtolampi has now been defined over a 600 m strike length.

“The at surface mineralization at Murtolampi continues to advance a potentially valuable satellite pit to the Kaukua deposit which is located only 2 km to the south.” said Derrick Weyrauch, President and Chief Executive Officer. “Hole LK20-026 is by far the highest-grade hole drilled to date at Murtolampi, we look forward to additional results from this zone in the Phase II drill program.”

Palladium One has confirmed PGE-Ni-Cu mineralization over 600 m of strike length at the Murtolampi zone and the zone remains open for expansion laterally and at depth (Figure 1, 2 and 3).

The Murtolampi zone hosts both mineralized (holes LK20-12, 024 & 026) and unmineralized (hole (LK20-025) peridotite. Mineralized peridotite contains blebby Cu-Ni sulphides and strong PGE mineralization and produces a modest Induced Polarization (IP) chargeability anomaly. Unmineralized peridotite is Ni bearing and Cu-PGE-poor while containing fine grain disseminated pyrite which produces strong IP chargeability anomalies. These two peridotite phases are in contact with one another at Murtolampi, making distinctions between the IP anomalies difficult. The overall geometry of the Murtolampi zone is yet to be defined, additional holes including undercut and scissor holes are planned in the Phase II drill program to better define the mineralization peridotite body.

Phase II Drill Program

Based on its discovery success this year, the Company has launched a 17,500 m phase II diamond drill program (see news release November 10, 2020) which will be focused on the Kaukua South and Murtolampi zones.

Figure 1

This figure shows the greater Kaukua Area, the NI 43-101 compliant Kaukua Open Pit resource, Murtolampi and Kaukua South zones. Select resumed Phase I drill holes labelled in red.

Figure 2

Murtolampi Cross section showing hole LK20-012 looking southwest, showing IP Chargeability isoshells and Pd_Eq grade.

Figure 3

Murtolampi Long section looking northwest, showing IP Chargeability isoshells and Pd_Eq grade, resumed Phase I drill holes labelled in red.

Table 1: Resumed Phase 1 Drill Results from Murtolampi Zone

* Reported widths are “drilled widths” not true widths.
** Grey Italicised values are previously released (see press release August 25, 2020)

*Palladium Equivalent

Palladium equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne for copper, and US$15,4332 per tonne for nickel. This calculation is consistent with the calculation in the Company’s September 2019 NI 43-101 Kaukua resource estimate.

QA/QC

The Phase I drilling program was carried out under the supervision of Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company.

Drill core samples were split using a rock saw by Company staff, with half retained in the core box and stored indoors in a secure facility, in Taivalkoski, Finland. The drill core samples were transported by courier from the Company’s core handling facility in Taivalkoski, Finland, to ALS Global (“ALS”) laboratory in Outokumpu, Finland. ALS, is an accredited lab and are ISO compliant (ISO 9001:2008, ISO/IEC 17025:2005). PGE analysis was performed using a 30 grams fire assay with an ICP-MS or ICP-AES finish. Multi-element analyses, including copper and nickel were analysed by four acid digestion using 0.25 grams with an ICP-AES finish.

Certified standards, blanks and crushed duplicates are placed in the sample stream at a rate of one QA/QC sample per 10 core samples. Results are analyzed for acceptance at the time of import. All standards associated with the results in this press release were determined to be acceptable within the defined limits of the standard used

Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43- 101.

About Palladium One

Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper-nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium-dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO, Director

For further information contact:
Derrick Weyrauch, President & CEO
Email:
info@palladiumoneinc.com

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

This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

Source: Palladium One Mining Inc.

 

Cabral Gold Announces the Appointment of Carlos Vilhena to Board of Directors

 

Vancouver, British Columbia – November 16, 2020 – Cabral Gold Inc. (“Cabral” or the “Company”) (TSXV: CBR) (OTC: CBGZF) is pleased to announce the appointment of Carlos Vilhena to Cabral’s Board of Directors with immediate effect.

Carlos Vilhena is a partner at the law firm of Pinheiro Neto Advogados, based in Brasilia, Brazil, where he is the administrative managing partner of the local office. Mr. Vilhena also heads the firm’s mineral resources law and government relations practices.

For many years, he has provided legal advice to a large number of corporate clients including both major and junior mining companies and multilateral and commercial banks. This advice involved all areas related to the mineral resources sector, including regulatory, permitting, M&A, land, community and government relations, infrastructure, indigenous populations, processing, sales, tax, environment, power, contracts, corporate, financing, litigation legislative process, risk assessment and policy.

Mr. Vilhena has repeatedly been recognised as one of the top mining law practitioners in Brazil by a number of publications, including the International Who’s Who of Mining Lawyers published by Who’s Who Legal, the Latin Lawyer, Chambers and Legal 500.

He is a director of the Rocky Mountain Mineral Law Foundation and Co-Chair of the Mining Law Committee of the International Bar Association. He is a director of TriStar Gold Inc. Mr. Vilhena holds an LLM degree in Natural Resources Law from the Centre for Energy, Petroleum, and Mineral Law and Policy of the University of Dundee, Scotland and an LLB from the University of Brasilia Law School.

Alan Carter, Cabral’s President and CEO commented, “We are extremely pleased that Carlos has agreed to join the Board of Directors of Cabral. His position as a Partner and Head of Mineral Resources Law at one of Brazil’s largest law firms provides Cabral with a breadth of relevant experience and a wide network throughout the mining industry in Brazil. In short, he is uniquely qualified to assist us as we continue to advance the world-class Cuiú Cuiú district located in the Tapajos region of Para state”.

Issuance of Stock Options

Cabral’s Board of Directors has approved the granting of stock options to various employees, directors and consultants pursuant to the Company’s stock option plan. The stock options entitle the holders to purchase a total of 1,150,000 common shares in the capital stock of the Company at a price of $0.60 per common share. The stock options are exercisable for five years and are subject to vesting over 24 months.

About Cabral Gold Inc.

The Company is a junior resource company and is engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil. The Company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil.

The Tapajós Gold Province is the site of the largest gold rush in Brazil’s history producing an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest garimpo in the Tapajós and produced an estimate 2Moz of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

“Alan Carter”

President and Chief Executive Officer
Cabral Gold Inc.
Tel: 604.676.5660

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

Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will”, “expected” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: strategic plans and future operations, and results of exploration. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.

Source: Cabral Gold | Tel: 604-676-5660 | 1500 – 409 Granville Streeet, Vancouver, BC V6C1T2 Canada | www.cabralgold.com

Newrange Gold Updates Drill Program at Pamlio Project

 

VANCOUVER, BRITISH COLUMBIA, November 12, 2020 (TSXV: NRG, US: NRGOF, Frankfurt: X6C) – Newrange Gold Corp. (“Newrange” or the “Company”) is pleased to provide an update on the reverse circulation (RC) drill program at the Pamlico Gold Project in Nevada. Since commencing the program in late May, the Company has drilled 65 holes (including two that had to be re-drilled) for a total of 6,538.04 meters. Assay results for the last 26 of these holes are still pending. Given this backlog of assays, the Company is taking a short hiatus in the drill program in order to compile the incoming results and plan a follow-up program.

Since switching rigs in September, drilling has been going well and the Company has drilled seven holes in each of the Gold Box Canyon and Merritt areas, eight at the Good Hope Mine, six at the Gold Bar and Pamlico Mines and two on IP anomalies.

The detailed location of upcoming holes, meters to be drilled and the relative amounts of RC versus diamond drilling will be determined once assay results have been interpreted. However, the Company expects to drill at least another 3,000 meters in approximately 20 holes that range in depth from 75 to 465 meters, following up on the recent drilling and with multiple holes planned to test the large Line 5 chargeability anomaly near the center of the property. It is anticipated that drilling will recommence on or about December 5.

About Pamlico

Located 12 miles southeast of Hawthorne, Nevada, along US Highway 95, the project enjoys excellent access and infrastructure, a mild, year-round operating climate and strong political support from Mineral County, one of the most pro-mining counties in the pro-mining state of Nevada. The Pamlico project covers the historic Pamlico group of mines, as well as the nearby Good Hope, Gold Bar and Sunset mines.

Discovered in 1884, the district rapidly gained a reputation as being one of Nevada’s highest-grade districts. Held by private interests for most of its history, the property remains underexplored in terms of modern exploration.

About Newrange Gold Corp.

Newrange is a precious metals exploration and development company focused on near to intermediate term production opportunities in favorable jurisdictions including Nevada, Ontario and Colorado. With numerous drill intercepts of near surface oxide gold mineralization to 340 grams gold per metric tonne, the Company’s flagship Pamlico Project is poised to become a significant new Nevada discovery. Focused on developing shareholder value through exploration and development of key projects, the Company is committed to building sustainable value for all stakeholders. Further information can be found on our website at www.newrangegold.com.

Signed: “Robert Archer”
CEO & Director

For further information contact:
Sharon Fleming
Corporate Communications
Phone: 760-898-9129
Email: info@newrangegold.com

Dave Cross
Chief Financial Officer and Corporate Secretary
Phone: 604-669-0868
Email: dcross@crossdavis.com

Website: www.newrangegold.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement: Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Newrange Gold Corp. Actual results may differ materially from those currently anticipated in such statements.

 

Palladium One Initiates 17,500-Meter Phase II Drilling Program In Finland

 

November 10, 2020 – Toronto, Ontario – A 17,500-meter Phase II drilling program targeting the Kaukua South zone is scheduled to begin on November 13, 2020, said Palladium One Mining Inc. (TSX-V: PDM, FRA: 7N11, OTC: NKORF) (the “Company” or “Palladium One”). The Phase II program is primarily designed to support a future inferred resource estimate at Kaukua South, which possesses a drill defined, greater than 4-kilometer mineralized strike length (Figure 1).

The initial stage of the Phase II program will include approximately 2,500 meters of diamond drilling to be completed before year end, targeting the 750-meter long high-grade section located between holes LK20-006 and LK20-016. Drilling will also include step-out exploration drilling to the east of drill hole LK20-016.

Hole LK20-016 returned:

• 62.7 m at 3.52 g/t of palladium equivalent (Pd_Eq)* starting at only 23.5 m down hole,
• Included a high-grade interval of 18.5 m at 4.58 g/t Pd_Eq starting near surface at 47.5 m down hole, (see news release October 22, 2020)

Hole LK20-006, located 750-meters west of hole LK20-016 returned:

• A core interval of 63.4 m at 1.88 g/t Pd_Eq starting near surface at 95.0 m down hole, within 166.7 m at 1.16 g/t Pd_Eq starting at only 43.8 m down hole (see news release August 11, 2020)

“The shallow mineralization and continuity of drill results demonstrates potential to rapidly add open pit ounces and significantly increase the existing NI 43-101 open pit constrained resource estimate.” Stated Derrick Weyrauch, President and CEO

Table 1
Select previously announced Phase I Drill Results from Kaukua South in the 750-meter long high-grade section between holes LK20-006 and LK20-016

* Includes 16.25m of unsampled core given a zero grade.
** Reported widths are “drilled widths” not true widths.
*** All values are previously released (see press release August 11, 2020, October 6, 2020, and October 22, 2020)

Figure 1
This figure shows the greater Kaukua Area, the NI 43-101 compliant Kaukua Open Pit resource, Murtolampi and Kaukua South zones. The drill defined four-kilometer strike length of the Kaukua South zone is shown with select drill holes from the winter (labelled in black) and summer (labelled in red) campaigns of the Phase I drill program.

Figure 2
Kaukua South Long section looking north, showing IP Chargeability isoshells and Pd_Eq grade for resumed Phase I drill holes labelled in red.

*Palladium Equivalent

Palladium equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne for copper, and US$15,4332 per tonne for nickel. This calculation is consistent with the calculation in the Company’s September 2019 NI 43-101 Kaukua resource estimate.

Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43- 101.

About Palladium One

Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper-nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium-dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO, Director

For further information contact:
Derrick Weyrauch, President & CEO
Email:
info@palladiumoneinc.com

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

This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

 

Chakana Announces New High-Grade Discovery at Paloma West – Soledad Project, Peru

 

22.65 Metres of 2.81 g/t Gold, 3.80% Copper, and 56.2 g/t Silver (9.36 g/t Au-eq) from 48 Metres

 

Vancouver, B.C., November 10, 2020 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to report a new high-grade discovery at the Paloma West target at the expanded Soledad Project in Ancash, Peru. Results from the first three holes at Paloma West are part of the ongoing Phase 3 drill program, a fully funded 15,000 metre drill program that started August 15, 2020. Phase 3 is testing a tight cluster of high-grade, gold-enriched tourmaline breccia pipe targets within the Paloma and Huancarama breccia complexes (Fig. 1). Ten holes have now been completed in the Paloma targets for a total of 2,387 metres. Drilling is currently underway at Huancarama where three holes have been completed thus far.

Mineralized intervals from these three holes at Paloma West 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).

Significant intervals of mineralization were encountered in all three holes.

• The three holes were collared outside of the breccia pipe in wall rock, drilled through the breccia, and exited the breccia on the other side ending in wallrock.
• Higher grades occur along the margin of the breccia in each hole. For example, hole SDH20-140 has 80m of 0.39 g/t Au, 0.97% Cu, and 30.5 g/t Ag starting at 21m. At the first contact with breccia, the north margin zone averages 0.79 g/t Au, 1.95% Cu, and 82.7 g/t Ag over 18.05m. The margin zone on the south side of the breccia averages 0.73 g/t Au, 4.04% Cu, and 46.3 g/t Ag over 8m.
• The north margin zone in hole SDH20-141 is precious metal rich, averaging 2.66 g/t Au and 443.2 g/t Ag over 5m starting at 29m. The south margin zone in this hole averages 2.81 g/t Au, 3.80% Cu, and 56.2 g/t Ag over 22.65m starting at 48m.

Examples of drill core from these holes are shown in Figures 5 and 6.

David Kelley, President and CEO commented, “the first three holes in Paloma West demonstrate very significant grades for copper and precious metals, which are especially encouraging given the shallow depths. When considered with the broad zones of mineralization encountered at Paloma East located 150 metres to the north east (see news releases dated September 17, and October 26, 2020), the Paloma area has far exceeded our expectations with initial scout drilling and mineralization open at depth. We look forward to releasing more results on drilling at Paloma West.”

Phase 3 Drill Program Update – Paloma Target Area

The Paloma target area consists of two mapped outcropping breccia pipes, Paloma East and Paloma West (Fig. 2) and at least one breccia dike. Previous surface rock sampling confirmed strongly anomalous gold concentrations in both the targeted breccia pipes as well as within several scattered small exposures of breccia and vein-like structures in the Paloma area. The Paloma East and Paloma West surface expressions are located on the flanks of a prominent late-time electromagnetic conductivity feature (Fig. 4). The anomaly extends beyond the limits of the survey grid and the Paloma area, representing an expanded area for future exploration.

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 31,641 metres of drilling has been completed to-date, testing eight (8) of twentythree (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 at 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 showing location of outcropping Paloma East and Paloma West breccia pipes and drill hole lithology in holes completed to date. Red represents tourmaline breccia. Location of section line for Figure 3 indicated.

Figure 3 – Section looking northwest showing the first three drill holes in Paloma West.

Figure 4 – Map showing 2-D late-time conductivity response from time-domain electromagnetics survey at Paloma (Channel 15 z component, contour units in ohm-m).

Figure 5 – Examples of mineralized core from drill holes reported in this release showing different styles of mineralization found in Paloma West: A) SDH20-140 – mosaic breccia showing base of oxidation; the interval 32-38m assays 0.96 g/t Au, 4.00% Cu, and 70.7 g/t Ag; B) SDH20-141 – shingle breccia with chalcopyrite-pyrite cement; the interval 49-55m assays 3.46 g/t Au, 7.21% Cu, and 85.9 g/t Ag; C) SDH20-141 – shingle breccia with abundant chalcopyrite-pyrite cement; the interval 65-70.75m assays 3.87 g/t Au, 3.26% Cu, and 65.8 g/t Ag; D) SDH20-142 –tourmaline-cemented mosaic breccia with sporadic chalcopyrite-pyrite in matrix; the interval 74-80m assays 4.12 g/t Au, 0.88% Cu, and 31.4 g/t Ag.

Figure 6 – Detailed core photos from Paloma West: A) SDH20-140 (29.8m) oxidized mosaic breccia, void spaces were originally filled with sulfide similar to photo B; B) SDH20-140 (35m) mosaic breccia with sporadic chalcopyrite-pyrite cement; C) SDH20-140 (78.9m) cavity filled with euhedral quartz-pyrite-chalcopyrite; D) SDH20-140 (99.5m) mosaic breccia with zones of semi-massive chalcopyrite-pyrite; E) SDH20-141 (50.7m) chaotic shingle breccia with semi-massive chalcopyrite-pyrite cement; F) SDH20-141 (66.6m) shingle breccia with late chalcopyrite replacing pyrite; G) SDH20-142 (38.3m) contact of andesitic tuff with sheeted veining and tourmaline breccia with abundant chalcopyrite at margin; H) SDH20-142 (79.75) mosaic breccia with chalcopyrite cement; I) SDH20-142 (94.25m) mosaic breccia with chalcopyrite-pyrite cement; J) SDH20-142 (86.4m) massive euhedral chalcopyrite-pyrite filling void space in mosaic breccia.

 

Sierra Metals Reports Record Adjusted Ebitda Of $37.2 Million, A 73% Increase Over Q3 2019, As Part Of Its Strong Q3 2020 Consolidated Financial Results

 

Conference Call November 9, 2020 at 11:00 AM (EST)

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• Revenue from metals payable of $73.2 million in Q3 2020 increased 13% from $64.6 million in Q3 2019 due to higher throughput and metal production from all three mines
• Adjusted EBITDA of $37.2 million in Q3 2020 increased 73% from $21.6 million in Q3 2019, primarily due to increased revenues realized and a decrease in operating costs at all three mines
• Operating cash flows before movements in working capital of $37.9 million in Q3 2020 increased from $21.8 million in Q3 2019
• Q3 2020 consolidated copper production of 12.2 million pounds, consolidated silver production of 1.0 million ounces, consolidated gold production of 3,989 ounces, consolidated zinc production of 24.9 million pounds, and consolidated lead production of 9.9 million pounds; a 9% increase, 5% increase, 14% increase, 11% increase, and a 6% decrease respectively, compared to Q3 2019. Management expects to meet the revised annual production guidance issued on August 13, 2020, precluding any further COVID-19 interruptions to operations
• Q3 2020 revenues as a percentage of metals sold represent 37% from copper, 25% from silver, 20% from zinc, 9% from lead and 8% from gold
• Record quarterly ore throughput and copper and gold production at the Bolivar Mine in Mexico; Record quarterly silver production at the Cusi Mine in Mexico, despite being in care and maintenance for part of the quarter
• $63.8 million of cash and cash equivalents as at September 30, 2020
• $62.9 million of working capital as at September 30, 2020
• Revised 2020 Financial Guidance Issued
• A shareholder conference call to be held Monday, November 9, 2020, at 11:00 AM (EST)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today reported revenue of $73.2 million and adjusted EBITDA of $37.2 million on the throughput of 798,458 tonnes and metal production of 35.2 million copper equivalent pounds, or 4.2 million silver equivalent ounces, for the three month period ended September 30, 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201109005310/en/

The Company achieved record quarterly consolidated equivalent copper production and ore throughput, driven by a strong operational performance at its three mines despite the difficulties arising from the COVID-19 pandemic. Consolidated production of copper equivalent pounds increased 9% to 35.2 million pounds.

The Company earned revenues of $73.2 million, Adjusted EBITDA of $37.2 million, and operating cash flows before movements in working capital of $37.9 million. Higher revenues are primarily attributable to the 24% increase in throughput, in addition to higher gold head grades and higher recoveries at Bolivar, as well as increased head grades and recoveries, except silver recoveries at Cusi. Quarterly revenues were also boosted by the higher realized prices for all metals.

Quarterly revenues at Yauricocha were in line with the third quarter of 2019, as lower metal sales and increased treatment and refining charges offset the impact of higher metal prices. The Yauricocha Mine processed 318,155 tonnes during Q3 2020, representing a 4% increase compared to Q3 2019. Daily ore throughput averaged 3,636 tpd during the quarter, as the mine continued its efforts to recover some of its annual production lost due to the COVID-19 related shutdown in Peru. Grades for all metals except zinc were lower for the quarter due to a lower proportion of ore coming from the high-grade small ore bodies compared to the third quarter of 2019. Zinc grades were higher during the third quarter of 2020 due to mining in the Cachi Cachi area. However, recoveries were negatively affected by lower head grades and slightly reduced residence capacity in the flotation process, as a result of higher throughput.

The Bolivar Mine processed a quarterly record of 410,468 tonnes in Q3 2020, representing a 24% increase over Q3 2019. The average daily ore throughput realized during the quarter was approximately 4,691 tpd, and the Company remains on track to reach the targeted 5,000 tpd during Q4 2020. The 24% increase in throughput, higher gold head grades and higher recoveries partially offset by lower silver grades resulted in a 37% increase in copper equivalent pounds produced during Q3 2020 compared to Q3 2019.

The Cusi mine produced a record of 304,000 ounces of silver during the quarter, despite being in care and maintenance for part of the quarter. The mine resumed operations on July 28, 2020 and operated for 65 days during the quarter. Ore throughput reached approximately 1,074 tpd during Q3 2020, which was 33% higher than the throughput rate achieved in Q3 2019. The mine continues to work towards reaching full capacity during Q4 2020. Total quarterly throughput was 69,835 tonnes, which was 1% below the Q3 2019 throughput due to a lower number of operating days in Q3 2020. Higher silver and gold grades and higher gold recoveries were partially offset by 5% lower silver recoveries during Q3 2020, resulting in a 12% increase in silver equivalent ounces produced, despite slightly lower throughput.

Luis Marchese, CEO of Sierra Metals, commented,
“I am very pleased with the solid financial and production results achieved in the third quarter. We have continued to improve production rates at Bolivar and Cusi and continued to recover annual production tonnage lost at Yauricocha due to the COVID-19 pandemic. The robust production in the third quarter, along with improved operational efficiencies and improved metal prices, has resulted in record adjusted EBITDA for the Company. We also reported strong cash flow and net income. The Company continues to realize the benefits of our optimized operations and expansions ramp up, which provides for stronger financial and operational performances, which we expect to continue through the upcoming year. These improvements have enhanced the competitive position of both the Bolivar and Yauricocha mines within the cost curve for the global copper mining industry, with both mines now positioned in the lowest half of the cash cost curve.”

He continued,
“The COVID-19 situation in Peru and Mexico remains very serious and is an important factor in our daily operations. Protecting our employees, the communities in which we operate, and our operations are extremely important to us; as such, we continue adhering to strict health protocols. Testing and quarantining have helped identify and keep active cases from occurring in the mines, but as a result, we are operating with a lower than optimal headcount. We appreciate all our employee’s hard work in helping the mines to run safely, efficiently, and in helping us achieve the strong third quarter results.”

He concluded,
“We have reinitiated exploration and infrastructure projects at all mines that had been paused during the COVID-19 shutdowns. These programs and improvements are expected to help improve mine operations, production efficiencies as well as enable us to continue discovering and developing new and existing mineral resource opportunities. Barring any further COVID-19 work interruptions, the fourth quarter should help us to realize a strong finish for the year.”

The following table displays selected unaudited financial information for the three months and nine months (“9M 2020”) ended September 30, 2020:

(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q3 2020 were calculated using the following realized prices: $24.89/oz Ag, $2.97/lb Cu, $1.08/lb Zn, $0.85/lb Pb, $1,916/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q3 2019 were calculated using the following realized prices: $17.28/oz Ag, $2.63/lb Cu, $1.06/lb Zn, $0.94/lb Pb, $1,481/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for 9M 2020 were calculated using the following realized prices: $19.35/oz Ag, $2.63/lb Cu, $0.97/lb Zn, $0.80/lb Pb, $1,742/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for 9M 2019 were calculated using the following realized prices: $15.91/oz Ag, $2.74/lb Cu, $/1.16lb Zn, $0.91/lb Pb, $1,370/oz Au.
(2) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.

Q3 2020 Financial Highlights

Revenue from metals payable of $73.2 million in Q3 2020 increased by 13% from $64.6 million in Q3 2019. Revenues in Q3 2020 from metals payable from the Yauricocha Mine in Peru were $44.6 million, in line with $44.4 million in Q3 2019, as the increase in average realized sale prices were offset by lower payable metals and higher treatment and refining costs as compared to Q3 2019. Revenues generated at the Bolivar Mine for Q3 2020 were $23.3 million, compared to $14.7 million for the same period in 2019. The increase in revenues was a result of the 24% increase in throughput, higher recoveries for all metals, and higher realized metal prices for copper (13%), silver (44%) and gold (29%). This was partially offset by an 11% decrease in silver head grades during the quarter. Q3 2020 revenues of $5.3 million generated at the Cusi Mine were in line with revenues of Q3 2019, despite being operational for only 65 days in Q3 2020, as the impact of the 19% higher silver head grades, 20% higher gold head grades and higher realized sale price for both precious metals, were offset by lower silver equivalent ounces sold.

Yauricocha’s cost of sales per copper equivalent payable pound was $0.92 (Q3 2019 – $1.04), cash cost per copper equivalent payable pound was $0.82 (Q3 2019 – $0.94), and AISC per copper equivalent payable pound of $1.93 (Q3 2019 – $1.64). Cash costs per pound were driven lower mainly by the 26% lower operating costs per tonne during Q3 2020. The increase in the AISC per copper equivalent payable pound for Q3 2020 compared to Q3 2019 was due to the higher treatment and refining costs, higher sustaining capital and 5% lower copper equivalent payable pounds attributable to lower head grades and recoveries for all metals, except zinc.

Bolivar’s cost of sales per copper equivalent payable pound was $1.02 (Q3 2019 – $1.86), cash cost per copper equivalent payable pound was $1.01 (Q3 2019 – $1.40), and AISC per copper equivalent payable pound was $1.72 (Q3 2019 – $2.53) for Q3 2020. The decrease in the AISC per copper equivalent payable pound was due to lower operating costs per tonne and lower sustaining capital as compared to Q3 2019. Additionally, copper equivalent payable pounds were driven 36% higher by the 24% higher throughput and the increase in metal recoveries during Q3 2020 as compared to the same quarter of 2019.

Cusi’s cost of sales per silver equivalent payable ounce was $13.53 (Q3 2019 – $10.10), cash cost per silver equivalent payable ounce was $11.56 (Q3 2019 – $18.77), and AISC per silver equivalent payable ounce was $16.47 (Q3 2019 – $24.60) for Q3 2020. AISC per silver equivalent payable ounce decreased despite 31% lower silver equivalent ounces payable, resulting from unsold concentrate inventory at quarter end. Cash costs and AISC per silver equivalent payable ounce was lower due to 13% lower operating costs and 65% lower sustaining costs capital during the Q3 2020 as compared to Q3 2019.

Adjusted EBITDA(1) of $37.2 million for Q3 2020 increased by 73% compared to $21.6 million in Q3 2019. The increase in adjusted EBITDA in Q3 2020 was due to the increase in revenues realized and a decrease in operating costs at all three mines.

Cash flow generated from operations before movements in working capital of $37.9 million for Q3 2020 increased compared to $21.8 million in Q3 2019. The increase in operating cash flow is mainly the result of higher revenues generated and higher gross margins realized.

Net income attributable to Shareholders of the Company for Q3 2020 was $17.5 million (Q3 2019: $1.8 million) or $0.11 per share (basic and diluted) (Q3 2019: $0.01).

Cash and cash equivalents of $63.8 million and working capital of $62.9 million as at September 30, 2020, compared to $43.0 million and $49.9 million, respectively, at the end of 2019. Higher working capital at the end of Q3 2020 was a result of the increase in cash and cash equivalents, and trade receivables, which more than compensated for the increase in current liabilities, attributable to movement between current and long term portion of the credit facility. Cash and cash equivalents have increased during 9M 2020 due to $47.2 million of operating cash flows being partially offset by capital expenditures incurred in Mexico and Peru of $23.0 million and interest payment of $3.2 million.

(1)This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.

Project Development

Mine development at Bolívar during Q3 2020 totaled 1,745 meters. A portion of the meters (928m) were developed to prepare stopes for mine production. The remainder of the meters (817m) were related to the deepening of ramps in the Lower El Gallo Inferior orebody and Bolivar West orebody. During Q3 2020, at the Cusi property, mine development totaled 1,168 meters, which included 998 meters of ramp development at the Promontorio; the rest of the development related to stope preparation in various zones within the mines.

Exploration Update

Peru:

Suspension of surface exploration activities, which started in the second quarter of 2020, continued in Q3 2020 as a result of the COVID-19 emergency declaration and restrictions on manpower at site. During the first half of September 2020, evaluations of the exploration zones were completed to begin drilling operations in the copper and molybdenum porphyry, as well as in the southern end of the Central mine, such as Doña Leona, El Paso, Kilkasca and Fortuna. Exploration is expected to return to normal in Q4 2020.

Mexico:

• Bolivar
  At Bolívar during Q3 2020, 8,878 meters were drilled from surface as well as diamond drilling within the mine area towards La Montura which intersected a mineralized skarn orebody of semi-massive magnetite and disseminated chalcopyrite. Exploration also continued in the northwest extension of the Bolivar West.
• Cusi
  During Q3 2020, the Company drilled 3,220 meters in the new discovery called NE-SW system from Santa Rosa de Lima.

Revised 2020 Financial Guidance Issued

• Revised consolidated EBITDA guidance including corporate expenses is expected to be between $100 and $105 million
• Revised consolidated CAPEX guidance is expected to be between $40 and $45 million
• Revised full year Cash Costs and All-In Sustaining Costs by Mine are as follows:

*AISC includes treatment and refining charges, selling costs, G&A and sustaining capex

Conference Call Webcast

Sierra Metals’ senior management will host a conference call on Monday, November 9, 2020, at 11:00 AM (EST) to discuss the Company’s financial and operating results for the three and nine months ended September 30, 2020.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website: https://event.on24.com/wcc/r/2625379/4399524BDDAF896736F6AE5F19B5AB48
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. After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. As well, reminders will be sent to registered participants in advance of the call. If you have trouble registering, please dial: (888) 869-1189 or (706) 643-5902 for extra assistance.

Registration is open throughout the live call; however, to ensure you are connected for the full 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/5555479

Quality Control

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

Americo 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

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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

Americo Zuzunaga
Vice President of Corporate Planning
Sierra Metals Inc.
Tel: +1 (416) 366-7777

Luis Marchese
CEO

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

Source: Sierra Metals Inc.