Thursday, September 23, 2021

Comstock Mining (LODE)
Comstock’s JV with Mercury Clean Up LLC Commences Full Production in the Philippines

Comstock Mining Inc. is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Operational in the Philippines. Comstock’s Clean Mercury Remediation Technologies (CMRT) joint venture with Mercury Clean Up LLC commenced full mercury remediation and gold extraction in Davao D’ Oro, Philippines. Recall the first processing unit was shipped to the Philippines in the fourth quarter of 2020. Mercury remediation testing along with limited production of sand and gravel started in the first half of 2021. With the receipt of a remaining permit, the mercury remediation system is able to scale up to full production.


Doing well by doing good.  The mercury remediation system, operating at up to 150 tons per hour, is designed to remediate mercury contamination and will initially restore a 24-kilometer stretch of the mercury contaminated Naboc River, while extracting and selling residual gold and cleaned sand, soil, and gravel co-products. Additional facilities are expected to be deployed once the operational …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Aurania Announces a Change to its Board of Directors

 

Toronto, Ontario, September 22, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) announces that Mr. Alfred Lenarciak has resigned from its board of directors (the “Board”) for personal reasons, effective immediately.  Mr. Lenarciak will be retained as a consultant to the Company for a period of one year and will provide advisory services to the Company if and when requested by the Company.  Aurania’s Board thanks Mr. Lenarciak for his contribution to the Company and wishes him well in his future endeavours.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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

Source: Aurania Resources Ltd.

Comstock Commences Production At Mercury And Gold Extraction Facility

 

VIRGINIA CITY, NEVADA, September 22, 2021 – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) and Mercury Clean Up LLC (“MCU”) today announced that Clean Mercury Remediation Technologies (“CMRT”), MCU’s Philippine Inc.’s joint venture, has received its remaining permit and commenced full operations in the venture’s first commercial mercury remediation system in the province of Davao D’ Oro, Philippines.

“We are pleased to restart and initiate sales as we remediate mercury contamination and return the local environment back to its natural state,” said Comstock’s Executive Chairman and Chief Executive Officer, Corrado DeGasperis.

Artisanal and Small Scale Gold Mining (ASGM)

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 bioaccumulate into the food chains. The risks to children are also substantial, with mercury emissions from ASGM resulting in both physical and mental disabilities and compromised development. The amalgamation process was regulated into extinction by most countries, but upwards of 20 million people in more than 70 countries still use mercury to mine for gold, making mercury pollution a U.N. prioritized global issue through the Minamata Convention.

Proprietary Remediation and Extraction Process

The Naboc River in Davao D’ Oro has long been a channel for effluents of mining activities, with hundreds of historical mining operations without sufficient tailing ponds to prevent releases of toxic, mercury-laden discharges. That history is evidenced by high levels of mercury and other contaminants in the local ecosystem, according to the Philippine’s Department of Environment and Natural Resources (DENR).

MCU’s Davao D’Oro facility is designed to remediate mercury contamination from the entire local ecosystem, thereby reviving a 24 kilometer stretch of the Naboc River and restoring all of its downstream irrigation systems for safe use, while extracting and selling residual gold and cleaned sand, soil and gravel co-products for multiple high-margin revenue streams.

“The Davao D’Oro facility is expected to produce pre-tax operating income, depending on yields,” continued DeGasperis. “Our deployment plans for MCU involve sustained growth through continued expansion with many additional facilities after moving into positive cash flows with the Davao D’Oro facility over the next few months.”

A photo accompanying this announcement is available here.

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products. To learn more, please visit www.comstockmining.com.

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: future industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; 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, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, taxes, 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: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, mercury remediation and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mercury remediation, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with mercury remediation, metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, 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 our businesses; permitting constraints or delays; ability to achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology, mercury remediation technology and efficacy, quantum computing and advanced materials development, and development of cellulosic technology in bio-fuels and related carbon-based material production; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our 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; assertion of claims, lawsuits and proceedings against us; 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 Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or 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. P.O. Box 1118 Virginia City, NV 89440 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

Comstock Commences Production At Mercury And Gold Extraction Facility

 

VIRGINIA CITY, NEVADA, September 22, 2021 – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) and Mercury Clean Up LLC (“MCU”) today announced that Clean Mercury Remediation Technologies (“CMRT”), MCU’s Philippine Inc.’s joint venture, has received its remaining permit and commenced full operations in the venture’s first commercial mercury remediation system in the province of Davao D’ Oro, Philippines.

“We are pleased to restart and initiate sales as we remediate mercury contamination and return the local environment back to its natural state,” said Comstock’s Executive Chairman and Chief Executive Officer, Corrado DeGasperis.

Artisanal and Small Scale Gold Mining (ASGM)

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 bioaccumulate into the food chains. The risks to children are also substantial, with mercury emissions from ASGM resulting in both physical and mental disabilities and compromised development. The amalgamation process was regulated into extinction by most countries, but upwards of 20 million people in more than 70 countries still use mercury to mine for gold, making mercury pollution a U.N. prioritized global issue through the Minamata Convention.

Proprietary Remediation and Extraction Process

The Naboc River in Davao D’ Oro has long been a channel for effluents of mining activities, with hundreds of historical mining operations without sufficient tailing ponds to prevent releases of toxic, mercury-laden discharges. That history is evidenced by high levels of mercury and other contaminants in the local ecosystem, according to the Philippine’s Department of Environment and Natural Resources (DENR).

MCU’s Davao D’Oro facility is designed to remediate mercury contamination from the entire local ecosystem, thereby reviving a 24 kilometer stretch of the Naboc River and restoring all of its downstream irrigation systems for safe use, while extracting and selling residual gold and cleaned sand, soil and gravel co-products for multiple high-margin revenue streams.

“The Davao D’Oro facility is expected to produce pre-tax operating income, depending on yields,” continued DeGasperis. “Our deployment plans for MCU involve sustained growth through continued expansion with many additional facilities after moving into positive cash flows with the Davao D’Oro facility over the next few months.”

A photo accompanying this announcement is available here.

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products. To learn more, please visit www.comstockmining.com.

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: future industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; 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, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, taxes, 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: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, mercury remediation and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mercury remediation, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with mercury remediation, metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, 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 our businesses; permitting constraints or delays; ability to achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology, mercury remediation technology and efficacy, quantum computing and advanced materials development, and development of cellulosic technology in bio-fuels and related carbon-based material production; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our 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; assertion of claims, lawsuits and proceedings against us; 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 Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or 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. P.O. Box 1118 Virginia City, NV 89440 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

Aurania Announces a Change to its Board of Directors

 

Toronto, Ontario, September 22, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) announces that Mr. Alfred Lenarciak has resigned from its board of directors (the “Board”) for personal reasons, effective immediately.  Mr. Lenarciak will be retained as a consultant to the Company for a period of one year and will provide advisory services to the Company if and when requested by the Company.  Aurania’s Board thanks Mr. Lenarciak for his contribution to the Company and wishes him well in his future endeavours.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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

Source: Aurania Resources Ltd.

Wednesday, September 22, 2021

Endeavour Silver (EXK)(EDR:CA)
Improved Economics of the Proposed Terronera Mine Enhance the Longer-Term Outlook

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Updating estimates. While our EPS estimates are unchanged, we have trimmed our 2021 EBITDA forecast to $45.4 million from $47.5 million based on modestly lower silver and gold prices. For 2022, we have increased our EPS and EBITDA estimate to $0.20 and $79.2 million from $0.18 and $75.5 million, respectively, based on an improved operating cost structure.


Terronera feasibility study.  Endeavour recently reported the results of a feasibility study for Terronera which is expected to become Endeavour’s largest and lowest cost mine. Over a 12-year mine life, Terronera is expected to produce an average of 3.3 million and 33 thousand ounces of silver and gold per year, respectively. Initial capital expenditures are expected to be $175 million. For …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

	Image Credit: Ron Frazer (Flickr)

Future for Lithium Prices Looks Strong Due to Expected Demand Growth for EVs

 

The electric vehicle (EV) and li-ion battery materials sectors are moving through what may become reminiscent of the decades of growing demand we’ve experienced for chips and computers. The current surge in EV sales has helped push lithium prices to their highest level in three years. Investors taking positions in battery materials, rather than the result of the technology, can avoid trying to pick specific winners if the entire li-ion EV sector grows. Here are a few basics to be aware of if you’re looking at lithium.

Lithium-ion batteries are a key component of electric vehicles. According to an article in Reuters, lithium prices have risen to their highest in more than three years due to a surge in electric vehicle sales and depleting stocks of the battery metal in China. Year-to-date, lithium carbonate prices in China have risen significantly, with futures prices for lithium carbonate 99% Min China up from CNY$48,500 (US$7,498) per tonne at the end of 2020 to CNY$148,000 (US$22,881) per tonne on September 17. Lithium carbonate 99.5% Min China rose from CNY$52,500 (USD$8,117) at the end of 2020 to CNY$153,000 (US$23,654) on September 17. Since June 30, the prices of each have risen 85% and 76%, respectively. Equities have followed and we note that companies like Piedmont Lithium, Cypress Development, and Albemarle are up 87%, 62%, and 49% in price, respectively, on a year-to-date basis through September 17.

A Few Terms to Keep in Mind

Electric vehicle batteries use lithium carbonate or lithium hydroxide, but the industry typically cites volumes in terms of lithium carbonate equivalent. Lithium is sourced from lithium clays, metallic brines stored in man-made ponds predominantly in the desert regions of South America, and spodumene ore via hard rock mining. Producing lithium carbonate or spodumene concentrate entails different processes and cost structures. Some take it a step further by producing lithium hydroxide, which generally sells at a higher price than lithium carbonate and is preferred by some EV battery manufacturers because it increases the performance of the battery. Cypress Development Corp. provides several informative slides in their corporate presentation summarizing lithium deposit types and current lithium demand, sourced from Benchmark Mineral Intelligence.  

 

Pictured Above: Automobili Estrema (Italian) is a marque soon to become known for extreme technology and performance in the hypercar universe.   The Fulminea is the first automobile to use a new hybrid battery pack of lithium-ion cells with solid-state electrolyte and ultracapacitors that power 4 motors with a total output of 2,040 hp. The Fulminea will supposedly reach 200 mph in less than 10 seconds. It will be priced for the European market at the equivalent of $2.38 million

 

More Investment Needed

More investment in lithium production is needed to meet future needs of the electric supply chain and to avoid production disruptions like have recently been experienced due to chip shortages. Given the opportunity set, there will likely be new entrants in the lithium space in addition to mergers and joint ventures. On September 16, Sibanye Stillwater Limited announced a joint venture with Ioneer Limited where Sibanye would contribute US$490 million for a 50% interest in Ioneer’s Rhyolite Ridge Lithium-Boron project in Nevada. The joint venture represents Sibanye Stillwater’s third announced transaction in the battery materials sector which it views as a vehicle for value creation and growth in the U.S. battery metals supply chain.

Take-Away:

It is still early days in the electric vehicle and battery materials sectors. Much like the demand for chips and computers did for Silicon Valley, companies that participate in and form the supply chain for electric vehicles could be winners much like Intel, Microsoft, and Apple were in the 1970s and 1980s. For that matter, the same could be said for innovative companies that lead the way to a low carbon future.

Suggested Reading:

Lithium Batteries vs Hydrogen Fuel Cells

The High Growth of ESG Investing can Reduce Adherence to Principles

Clean vs Dirty Electrons on Power Grid

The Increasing Popularity of Uranium Investments

 

Sources:

Surge
in Electric Vehicle Sales Power Lithium Prices as Shortages Loom, Reuters, Zandi Shabalala, September 13, 2021.

Lithium
Price Rally Accelerates in September, Mining.com, Staff Writer, September 17, 2021.

All Lithium Is Not Created Equal. Hydroxide vs. Carbonate, Lithium 101, Piedmontlithium.com, Piedmont Lithium Inc.

What
is the Difference Between Lithium Carbonate & Lithium Hydroxide, FAQs, Bisley International, February 14, 2021.

Building
batteries: Why Lithium and Why Lithium Hydroxide, Innovation News Network, February 4, 2021.

Clayton
Valley Project, Nevada, An Advanced Stage LITHIUM Company, Corporate Presentation, Cypress Development Corp., September 2021.

Sibanye-Stillwater
and Ioneer to establish a 50:50 joint venture with respect to Ioneer’s US-based
Rhyolite Ridge Lithium-Boron project, Press Release, Sibanye Stillwater Limited, September 16, 2021.

Estrema Website

 

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Mining Veteran Tom Obradovich Joins FenixOro Advisory Committee

 

TORONTO, Sept. 20, 2021 (GLOBE NEWSWIRE) — FenixOro Gold Corp (CSE:FENX) (OTCQB:FDVXF) (Frankfurt:8FD) is pleased to announce that Tom Obradovich, a notably successful and experienced mining investor and entrepreneur, has joined the Fenix Oro Advisory Committee.

Born and raised into a mining family in Kirkland Lake, Ontario, Mr. Obradovich is a graduate of the Haileybury School of Mines in Mining Technology and Advanced Field Geophysics. He has a wide range of experience in mining exploration, development and financing. Over a career of thirty-eight years he has enjoyed significant success as a number of projects he has been involved in have gone onto become producing mines acquired by major mining companies.

Tom cofounded Canadian Royalties Inc. which discovered and developed the Raglan South Nickel Belt. He then acquired most of the Matachewan Gold Camp and through a reverse takeover of Young-Davidson Mines, upgraded and doubled the resource. The company was subsequently acquired by Northgate Minerals and the project is currently producing over 200,000 oz of gold per year for Alamos Gold Inc. (TSX:AGI).

He was also one of the founders of Aurelian Resources Inc. which discovered the Fruta Del Norte gold deposit in Ecuador and was subsequently acquired by Kinross Gold (TSX:K) for $1.2 Billion. The project is now producing approximately 400,000 oz of gold per year for Lundin Gold (TSX:LUG).

Mr. Obradovich became President and CEO of Barkerville Gold Mines in January of 2015 and led the management team to turn the company into a debt free mining and exploration vehicle with a market capital in excess of $200 million and $60 million in treasury when he resigned in July 2016. Barkerville was subsequently acquired by Osisko Mining (TSX:OSK). He was also Lead Director of Dalradian Resources, a company that developed a multi-million ounce gold deposit in Northern Ireland and was subsequently sold for $560 million to Orion Mine Finance.

Tom is currently the Chairman of Sable Resources, a pure greenfields exploration company developing the Don Julio Project through a joint venture in San Juan Province, Argentina.

FenixOro CEO John Carlesso commented: “Tom Obradovich is a seasoned and highly respected veteran in the mining industry and we are very fortunate to have his support on the Advisory Committee. As we continue to grow and develop the Abriaqui gold deposit, Tom’s vast knowledge and experience will bring tremendous value to our decision-making process.”

The Company has granted 1,200,000 stock options to advisors and consultants. The options have an exercise price of 32 cents and expire 5 years from the grant date.

About FenixOro Gold Corp.

FenixOro Gold Corp is a Canadian company focused on acquiring and exploring gold projects with world class exploration potential in the most prolific gold producing regions of Colombia. FenixOro’s flagship property, the Abriaqui project, is the closest project to Continental Gold’s Buritica project. It is located 15 km to the west in Antioquia State at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” (December 5, 2019), the geological characteristics of Abriaqui and Buritica are similar. Since the preparation of this report a Phase 1 drilling program has been completed at Abriaqui resulting in a significant discovery of a high grade, “Buritica style” gold deposit. A Phase 2 drilling program has recently commenced.

FenixOro’s VP of Exploration, Stuart Moller, led the discovery team at Buritica for Continental Gold in 2007-2011. At the time of its latest public report, the Buritica Mine contains measured plus indicated resources of 5.32 million ounces of gold (16.02 Mt grading 10.32 g/t) plus a 6.02 million ounce inferred resource (21.87 Mt grading 8.56 g/t) for a total of 11.34 million ounces of gold resources Buritica began formal production in November 2020 and has expected annual average production of 250,000 ounces at an all-in sustaining cost of approximately US$600 per ounce. Resources, cost and production data are taken from Continental Gold’s “NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia, 18 March, 2019”). Continental Gold was recently the subject of a takeover by Zijin Mining in an all-cash transaction valued at C$1.4 billion.

FenixOro Gold Corp
John Carlesso, CEO
Email: info@FenixOro.com
Website: www.FenixOro.com
Telephone: 1-833-ORO-GOLD

Bunker Hill Announces Updated PEA: 42% Increase in NPV to $143M, 29% Decrease in AISC, 41% Increase in FCF Over Extended 11 Year Mine Life

 

HIGHLIGHTS:

• Materially improved financial returns: 143M NPV (+42% increase), 35% IRR, 2.6 year payback, $25M annual average FCF (+28% increase) at $1.15/lb Zn, $0.90/lb Pb, $20/oz Ag (metal prices unchanged from April 2021 PEA )
• Increased use of Long-Hole Open Stoping mining drives a 29% reduction in AISC to $0.47 per pound of payable zinc
• Nearly 1 billion zinc equivalent pounds (including over 8 million ounces of silver) produced over an extended 11 year mine life.  The mine’s significant high-grade silver potential outside the current resource is not included
• CEO Sam Ash and CFO David Wiens to host live interactive 6ix virtual investor event on Tuesday, September 21st at 11:00AM ET / 8:00AM PT.  Investors are invited to register for this event at: [LINK]

TORONTO, Sept. 20, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR, OTCQB: BHLL) is pleased to announce an updated Preliminary Economic Assessment (the “PEA” or the “updated PEA”) for the Bunker Hill Mine, showing materially improved financial returns, free cash flow, and unit costs.

The updated PEA contemplates a $44 million initial capital cost (including 20% contingency) to rapidly restart the mine over an 18-month period, generating approximately $25 million of annual average free cash flow over an extended 11-year mine life while producing nearly 1 billion zinc equivalent pounds of metal, including over 8 million ounces of silver. Metal price assumptions in the updated PEA remain unchanged from the PEA announced in April 2021 and published in June 2021 (the “June PEA”), thereby not reflecting significant increases in zinc and lead prices since that time.

Sam Ash, CEO of Bunker Hill Mining, stated: “We are very pleased to report the results of this summer’s mine plan optimization work and its significant positive effect on estimated financial returns, free cash flow, and cost position relative to April’s PEA. This is an important development milestone and affirms further the significant value to be realized from the rapid restart of the Bunker Hill Mine for our shareholders as well as our local partners and stakeholders.”

Concurrent with engineering studies designed to further enhance the project’s economics, the Company and its advisors are actively engaged with capital providers that have expressed an interest in financing the rapid restart of the mine.
 

The PEA was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). MineTech USA, LLC (“MineTech”) developed the mine infrastructure, capital expenditures and operating expenditures related portions of the updated PEA as well as the mine plan and operating schedules. Certain assumptions developed in coordination with Resource Development Associates Inc. (“RDA”) and Pro Solv Consulting, LLC., including metallurgical assumptions, remain unchanged from the June PEA. The Company plans to file the completed updated PEA technical report on SEDAR within 45 days of this press release and make it available on the Company’s website. All “t” references in this press release are to short tons and “$” references are in U.S. dollars.

Table 1 summarizes the key findings of the updated PEA relative to those in the June PEA.

Table 1: Updated PEA vs. June PEA

(1) Zinc equivalency calculated using metal prices utilized in PEA: $1.15/lb Zn, $0.90/lb Pb, $20/oz Ag

(2) Includes zinc produced in zinc concentrate, lead produced in lead concentrate, silver produced in lead concentrate

(3) Cash costs and AISC per payable pound of zinc sold, earnings before interest, taxes, depreciation and amortization(“EBITDA”), pre-tax free cash flow and free cash flow are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”

(4) Life of mine (“LOM”) data post initial capital expenditures

The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the project described in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Mineral Resource Inventory

As with the June PEA, the updated PEA is based on the Bunker Hill Mineral Resource, which was published on March 22, 2021, following the drilling program conducted in 2020 and early 2021 to validate the historical reserves. The PEA includes a mining inventory of 6.4Mt, which represents a portion of the 4.4Mt Indicated mineral resource and 5.6Mt Inferred mineral resource. Given the 11-year mine life, the mine plan has been based on prioritizing higher grade material. The mine production schedule is based on an $80 per ton NSR cut-off value, representing a more refined optimization approach relative to the June PEA in which a 5.0% zinc operating cut-off grade was utilized.

Initial Capital Costs

The majority of initial capital costs, including the process plant, shaft and tunnel rehabilitation, remain unchanged from the June 2021 PEA. The marginal increase in total initial capital costs from $42 million (June PEA) to $44 million (updated PEA) primarily reflects higher required up-front investment for waste development to enable the use of long-hole open stoping (“LHOS”) as the predominant mining method in the mine plan, as opposed to the cut and fill method in the June PEA. All initial capital expenditures continue to include a 20% contingency.

Further capital cost optimization initiatives are ongoing, including the potential purchase of used process plant equipment. If successful, these have the potential to accelerate ramp up and reduce initial capital costs.

Mine Plan

For the updated PEA, the Newgard/Quill resource was optimized and scheduled utilizing the long-hole open stoping mining method, whereby stopes are accessed via lateral drifts driven off of a decline ramp connecting the levels vertically. The ramp provides ventilation, utilities, and secondary escapeway, as well as connecting the entire mine with rubber tire access. The LHOS areas are accessed through a combination of existing excavations rehabilitated to modern mining standards, and new excavation. Backfill requirements are provided via an underground paste plant and distribution system.   The LHOS mining results in a step change downwards in mine operating costs from $58 to $41 per ton.

Production commences approximately six months following the start of construction, targeting 200 tons/day (“tpd”) ramping up to 1,000 tpd over the following six months. This ramp up allows for infrastructure components to be completed and commissioned to ensure the mine is adequately developed to maintain consistent production while taking advantage of toll milling for pre-production revenue generation. Initially, production will be targeted above the 9-level as the hoists and first 200-foot section of shaft rehabilitation are completed. The mine plan is developed to allow sequential water draw down and shaft rehabilitation between levels as new production horizons are required. This sequencing is continued to the 26-level.

Table 2: Mine Schedule

(1) Pre-production represents the first 12 months of the initial capex period; Years 1-11 represent 12-month periods, Year 12 represents 6-month period

(2) Zinc equivalency calculated using metal prices utilized in PEA: $1.15/lb Zn, $0.90/lb Pb, $20/oz Ag

Processing

The processing flowsheet and metallurgical assumptions as envisaged in the June PEA remain unchanged, with a crushing and milling plant to be centrally located on the 9-level, and milled material to be pumped in slurry to the flotation and paste plant on the 5-level. The flotation plant will generate concentrates which will be transported to surface for shipment. The paste plant will generate paste for geotechnical fill and tailings disposal in open drifts and stopes in the mine. This approach optimizes material transport costs while eliminating the need for surface tailings disposal.

Historical metallurgical results have been used for concentrate recoveries and grade. The results were averaged for the last five years of operation. The lead concentrate, assaying an average 67% Pb and 34 oz/t Ag, is estimated to recover 91% Pb and 89% Ag. The zinc concentrate, assaying 58% Zn, is estimated to recover 92% Zn. Metallurgical test work remains ongoing at RDI, with preliminary results received supporting assumptions used in the PEA.

The production schedule is presented in the Table below.

Table 3: Production Schedule

(1) Pre-production represents the first 12 months of the initial capex period; Years 1-11 represent 12-month periods, Year 12 represents 6-month period

(2) Zinc equivalency calculated using metal prices utilized in PEA: $1.15/lb Zn, $0.90/lb Pb, $20/oz Ag

Operating and Sustaining Capital Costs

Cash costs and AISC per payable pound of zinc sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.

Mine operating costs are based on experienced local contract labor and equipment for mining operations. A zero-based efficiency and cost estimate was completed based on current underground contractors’ rates and guidance benchmarked against other like operations. Electrical power costs are based on scheduled projected loads applying an estimated power factor correction and applicable Avista Utilities rates for all projected mine, milling and site operations.

Mill operating costs are within guidance resulting from bench marking similar mill operations in north Idaho. Mine site general and administrative (G&A) costs are determined based on anticipated staffing levels and similar compensation compatible with area salaries.

All sustaining capital costs include a 20% contingency.

Annual and LOM cost metrics are presented in the Table below.

Table 4: Operating and Sustaining Capital Costs

(1) “Year 1” and “Year 12” are expressed on a 6-month basis; all other years on a 12-month basis

Cash Flow & Valuation

EBITDA, pre-tax free cash flow and free cash flow are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.

Post initial capital expenditures, the project is expected to generate pre-tax free cash flow of $329 million (41% increase relative to the June PEA) over its 11-year mine life and after-tax free cash flow of $275 million (41% increase relative to the June PEA). The Company expects to reinvest a portion of its pre-tax cash flows on high-grade silver targets in the existing mine footprint and those delineated by its geophysics program, which may reduce the tax assumptions accounted for in the project economics. Annual free cash flow increases in later years of the mine plan due to higher silver grades at deeper elevations.

The financial summary is presented in the Table below.

Table 5: Cash Flow & Valuation

(1) Initial capex period is expressed on an 18-month basis; “Year 1” and “Year 12” are expressed on a 6-month basis; all other years on a 12-month basis

(2) All metrics expressed on a 12-month basis, beginning after the 18-month initial capex period

Sensitivities

The tables below summarize the after-tax sensitivities of NPV and IRR, with respect to metal prices and costs.

Table 6: Sensitivities

QUALIFIED PERSON
 

Mr. Scott E. Wilson, CPG, President of Resource Development Associates Inc. and a consultant to the Company, is an Independent “Qualified Person” as defined by NI 43-101 and is acting at the Qualified Person for the Company. He has reviewed and approved the technical information summarized in this news release.

UPCOMING EVENTS

6ix Investor Event

September 21, 2021 @ 11:00am ET / 8:00am PT

Join Us: [LINK]

StockPulse Silver Symposium

September 27-28, 2021

Join Us: REGISTER NOW

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership, Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.

For additional information contact: ir@bunkerhillmining.com

CAUTIONARY STATEMENTS

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. The key risks and uncertainties include, but are not limited to: local and global political and economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; developments with respect to the coronavirus disease 2019 (“COVID-19”) pandemic, including the duration, severity and scope of the pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in the Company’s reports filed on SEDAR and EDGAR. Forward-looking information and statements in this news release include statements concerning, among other things: the potential of the Bunker Hill Mine to be re-started rapidly as a low-cost, long life, sustainable operation based on the results of the PEA; the PEA representing robust financial returns; the potential of the restart plan to create jobs, ensure long-term environmental-management partnerships, and drive the long-term development of the Bunker Hill Mine’s resources; the timing for filing the PEA technical report; the timing, amount and duration of future production; future cash costs and AISC; commodity prices; the estimated capital and operating costs; the Company’s ability to discover new mineralization; the Company’s ability to self-fund high-grade silver exploration efforts to further increase cash flow margins; the timing for the Company’s progression of further technical studies and project finance discussions; potential sustainability impacts based on the results of the PEA, including the Bunker Hill Mine’s development and operations generating new jobs in Shoshone County, with such job creation having the potential to reduce unemployment in the county, procurement by the Bunker Hill Mine injecting additional funds into the local economy annually, and the Bunker Hill Mine achieving carbon neutrality in year one of operations and maintaining a minimal environmental footprint for the LOM; the potential for a reduction in the production of acid rock drainage; the potential for a reduction in the challenge and cost of water management; LOM capital improvements; metal recoveries; the Company’s plans to reinvest a portion of its pre-tax cash flows on its high-grade silver program; the Company’s goal to significantly increase free cash flow in the earlier years of the PEA based on its ongoing high-grade silver exploration program; the estimates of free cash flow, net present value and economic returns from the Bunker Hill Mine based on the results of the PEA; opportunities to increase the economics of the Bunker Hill Mine; our plans and expectations for the Bunker Hill Mine; and the Company’s intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID19 on the price of commodities, capital market conditions, restriction on labor and international travel and supply chains; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine Complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR and EDGAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note to United States Investors

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained in this press release may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for disclosure of “reserves” are also not the same as those of the SEC, and reserves disclosed by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits may not be comparable with information made public by companies that report in accordance with U.S. standards.

Cautionary Note Regarding Non-GAAP Measures

This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (“IFRS”) or U.S. GAAP, including cash costs and AISC per payable pound of zinc sold, EBITDA, pre-tax cash flow and free cash flow. Non-GAAP measures do not have any standardized meaning prescribed under IFRS or U.S. GAAP and, therefore, they may not be comparable to similar measures employed by other companies. The Company believes that, in addition to conventional measures prepared in accordance with IFRS and U.S. GAAP, certain investors use this information to evaluate its performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS or U.S. GAAP.

Bunker Hill Announces Updated PEA: 42% Increase in NPV to $143M, 29% Decrease in AISC, 41% Increase in FCF Over Extended 11 Year Mine Life

 

HIGHLIGHTS:

• Materially improved financial returns: 143M NPV (+42% increase), 35% IRR, 2.6 year payback, $25M annual average FCF (+28% increase) at $1.15/lb Zn, $0.90/lb Pb, $20/oz Ag (metal prices unchanged from April 2021 PEA )
• Increased use of Long-Hole Open Stoping mining drives a 29% reduction in AISC to $0.47 per pound of payable zinc
• Nearly 1 billion zinc equivalent pounds (including over 8 million ounces of silver) produced over an extended 11 year mine life.  The mine’s significant high-grade silver potential outside the current resource is not included
• CEO Sam Ash and CFO David Wiens to host live interactive 6ix virtual investor event on Tuesday, September 21st at 11:00AM ET / 8:00AM PT.  Investors are invited to register for this event at: [LINK]

TORONTO, Sept. 20, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR, OTCQB: BHLL) is pleased to announce an updated Preliminary Economic Assessment (the “PEA” or the “updated PEA”) for the Bunker Hill Mine, showing materially improved financial returns, free cash flow, and unit costs.

The updated PEA contemplates a $44 million initial capital cost (including 20% contingency) to rapidly restart the mine over an 18-month period, generating approximately $25 million of annual average free cash flow over an extended 11-year mine life while producing nearly 1 billion zinc equivalent pounds of metal, including over 8 million ounces of silver. Metal price assumptions in the updated PEA remain unchanged from the PEA announced in April 2021 and published in June 2021 (the “June PEA”), thereby not reflecting significant increases in zinc and lead prices since that time.

Sam Ash, CEO of Bunker Hill Mining, stated: “We are very pleased to report the results of this summer’s mine plan optimization work and its significant positive effect on estimated financial returns, free cash flow, and cost position relative to April’s PEA. This is an important development milestone and affirms further the significant value to be realized from the rapid restart of the Bunker Hill Mine for our shareholders as well as our local partners and stakeholders.”

Concurrent with engineering studies designed to further enhance the project’s economics, the Company and its advisors are actively engaged with capital providers that have expressed an interest in financing the rapid restart of the mine.
 

The PEA was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). MineTech USA, LLC (“MineTech”) developed the mine infrastructure, capital expenditures and operating expenditures related portions of the updated PEA as well as the mine plan and operating schedules. Certain assumptions developed in coordination with Resource Development Associates Inc. (“RDA”) and Pro Solv Consulting, LLC., including metallurgical assumptions, remain unchanged from the June PEA. The Company plans to file the completed updated PEA technical report on SEDAR within 45 days of this press release and make it available on the Company’s website. All “t” references in this press release are to short tons and “$” references are in U.S. dollars.

Table 1 summarizes the key findings of the updated PEA relative to those in the June PEA.

Table 1: Updated PEA vs. June PEA

(1) Zinc equivalency calculated using metal prices utilized in PEA: $1.15/lb Zn, $0.90/lb Pb, $20/oz Ag

(2) Includes zinc produced in zinc concentrate, lead produced in lead concentrate, silver produced in lead concentrate

(3) Cash costs and AISC per payable pound of zinc sold, earnings before interest, taxes, depreciation and amortization(“EBITDA”), pre-tax free cash flow and free cash flow are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”

(4) Life of mine (“LOM”) data post initial capital expenditures

The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the project described in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Mineral Resource Inventory

As with the June PEA, the updated PEA is based on the Bunker Hill Mineral Resource, which was published on March 22, 2021, following the drilling program conducted in 2020 and early 2021 to validate the historical reserves. The PEA includes a mining inventory of 6.4Mt, which represents a portion of the 4.4Mt Indicated mineral resource and 5.6Mt Inferred mineral resource. Given the 11-year mine life, the mine plan has been based on prioritizing higher grade material. The mine production schedule is based on an $80 per ton NSR cut-off value, representing a more refined optimization approach relative to the June PEA in which a 5.0% zinc operating cut-off grade was utilized.

Initial Capital Costs

The majority of initial capital costs, including the process plant, shaft and tunnel rehabilitation, remain unchanged from the June 2021 PEA. The marginal increase in total initial capital costs from $42 million (June PEA) to $44 million (updated PEA) primarily reflects higher required up-front investment for waste development to enable the use of long-hole open stoping (“LHOS”) as the predominant mining method in the mine plan, as opposed to the cut and fill method in the June PEA. All initial capital expenditures continue to include a 20% contingency.

Further capital cost optimization initiatives are ongoing, including the potential purchase of used process plant equipment. If successful, these have the potential to accelerate ramp up and reduce initial capital costs.

Mine Plan

For the updated PEA, the Newgard/Quill resource was optimized and scheduled utilizing the long-hole open stoping mining method, whereby stopes are accessed via lateral drifts driven off of a decline ramp connecting the levels vertically. The ramp provides ventilation, utilities, and secondary escapeway, as well as connecting the entire mine with rubber tire access. The LHOS areas are accessed through a combination of existing excavations rehabilitated to modern mining standards, and new excavation. Backfill requirements are provided via an underground paste plant and distribution system.   The LHOS mining results in a step change downwards in mine operating costs from $58 to $41 per ton.

Production commences approximately six months following the start of construction, targeting 200 tons/day (“tpd”) ramping up to 1,000 tpd over the following six months. This ramp up allows for infrastructure components to be completed and commissioned to ensure the mine is adequately developed to maintain consistent production while taking advantage of toll milling for pre-production revenue generation. Initially, production will be targeted above the 9-level as the hoists and first 200-foot section of shaft rehabilitation are completed. The mine plan is developed to allow sequential water draw down and shaft rehabilitation between levels as new production horizons are required. This sequencing is continued to the 26-level.

Table 2: Mine Schedule

(1) Pre-production represents the first 12 months of the initial capex period; Years 1-11 represent 12-month periods, Year 12 represents 6-month period

(2) Zinc equivalency calculated using metal prices utilized in PEA: $1.15/lb Zn, $0.90/lb Pb, $20/oz Ag

Processing

The processing flowsheet and metallurgical assumptions as envisaged in the June PEA remain unchanged, with a crushing and milling plant to be centrally located on the 9-level, and milled material to be pumped in slurry to the flotation and paste plant on the 5-level. The flotation plant will generate concentrates which will be transported to surface for shipment. The paste plant will generate paste for geotechnical fill and tailings disposal in open drifts and stopes in the mine. This approach optimizes material transport costs while eliminating the need for surface tailings disposal.

Historical metallurgical results have been used for concentrate recoveries and grade. The results were averaged for the last five years of operation. The lead concentrate, assaying an average 67% Pb and 34 oz/t Ag, is estimated to recover 91% Pb and 89% Ag. The zinc concentrate, assaying 58% Zn, is estimated to recover 92% Zn. Metallurgical test work remains ongoing at RDI, with preliminary results received supporting assumptions used in the PEA.

The production schedule is presented in the Table below.

Table 3: Production Schedule

(1) Pre-production represents the first 12 months of the initial capex period; Years 1-11 represent 12-month periods, Year 12 represents 6-month period

(2) Zinc equivalency calculated using metal prices utilized in PEA: $1.15/lb Zn, $0.90/lb Pb, $20/oz Ag

Operating and Sustaining Capital Costs

Cash costs and AISC per payable pound of zinc sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.

Mine operating costs are based on experienced local contract labor and equipment for mining operations. A zero-based efficiency and cost estimate was completed based on current underground contractors’ rates and guidance benchmarked against other like operations. Electrical power costs are based on scheduled projected loads applying an estimated power factor correction and applicable Avista Utilities rates for all projected mine, milling and site operations.

Mill operating costs are within guidance resulting from bench marking similar mill operations in north Idaho. Mine site general and administrative (G&A) costs are determined based on anticipated staffing levels and similar compensation compatible with area salaries.

All sustaining capital costs include a 20% contingency.

Annual and LOM cost metrics are presented in the Table below.

Table 4: Operating and Sustaining Capital Costs

(1) “Year 1” and “Year 12” are expressed on a 6-month basis; all other years on a 12-month basis

Cash Flow & Valuation

EBITDA, pre-tax free cash flow and free cash flow are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.

Post initial capital expenditures, the project is expected to generate pre-tax free cash flow of $329 million (41% increase relative to the June PEA) over its 11-year mine life and after-tax free cash flow of $275 million (41% increase relative to the June PEA). The Company expects to reinvest a portion of its pre-tax cash flows on high-grade silver targets in the existing mine footprint and those delineated by its geophysics program, which may reduce the tax assumptions accounted for in the project economics. Annual free cash flow increases in later years of the mine plan due to higher silver grades at deeper elevations.

The financial summary is presented in the Table below.

Table 5: Cash Flow & Valuation

(1) Initial capex period is expressed on an 18-month basis; “Year 1” and “Year 12” are expressed on a 6-month basis; all other years on a 12-month basis

(2) All metrics expressed on a 12-month basis, beginning after the 18-month initial capex period

Sensitivities

The tables below summarize the after-tax sensitivities of NPV and IRR, with respect to metal prices and costs.

Table 6: Sensitivities

QUALIFIED PERSON
 

Mr. Scott E. Wilson, CPG, President of Resource Development Associates Inc. and a consultant to the Company, is an Independent “Qualified Person” as defined by NI 43-101 and is acting at the Qualified Person for the Company. He has reviewed and approved the technical information summarized in this news release.

UPCOMING EVENTS

6ix Investor Event

September 21, 2021 @ 11:00am ET / 8:00am PT

Join Us: [LINK]

StockPulse Silver Symposium

September 27-28, 2021

Join Us: REGISTER NOW

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership, Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.

For additional information contact: ir@bunkerhillmining.com

CAUTIONARY STATEMENTS

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. The key risks and uncertainties include, but are not limited to: local and global political and economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; developments with respect to the coronavirus disease 2019 (“COVID-19”) pandemic, including the duration, severity and scope of the pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in the Company’s reports filed on SEDAR and EDGAR. Forward-looking information and statements in this news release include statements concerning, among other things: the potential of the Bunker Hill Mine to be re-started rapidly as a low-cost, long life, sustainable operation based on the results of the PEA; the PEA representing robust financial returns; the potential of the restart plan to create jobs, ensure long-term environmental-management partnerships, and drive the long-term development of the Bunker Hill Mine’s resources; the timing for filing the PEA technical report; the timing, amount and duration of future production; future cash costs and AISC; commodity prices; the estimated capital and operating costs; the Company’s ability to discover new mineralization; the Company’s ability to self-fund high-grade silver exploration efforts to further increase cash flow margins; the timing for the Company’s progression of further technical studies and project finance discussions; potential sustainability impacts based on the results of the PEA, including the Bunker Hill Mine’s development and operations generating new jobs in Shoshone County, with such job creation having the potential to reduce unemployment in the county, procurement by the Bunker Hill Mine injecting additional funds into the local economy annually, and the Bunker Hill Mine achieving carbon neutrality in year one of operations and maintaining a minimal environmental footprint for the LOM; the potential for a reduction in the production of acid rock drainage; the potential for a reduction in the challenge and cost of water management; LOM capital improvements; metal recoveries; the Company’s plans to reinvest a portion of its pre-tax cash flows on its high-grade silver program; the Company’s goal to significantly increase free cash flow in the earlier years of the PEA based on its ongoing high-grade silver exploration program; the estimates of free cash flow, net present value and economic returns from the Bunker Hill Mine based on the results of the PEA; opportunities to increase the economics of the Bunker Hill Mine; our plans and expectations for the Bunker Hill Mine; and the Company’s intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID19 on the price of commodities, capital market conditions, restriction on labor and international travel and supply chains; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine Complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR and EDGAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note to United States Investors

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained in this press release may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for disclosure of “reserves” are also not the same as those of the SEC, and reserves disclosed by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits may not be comparable with information made public by companies that report in accordance with U.S. standards.

Cautionary Note Regarding Non-GAAP Measures

This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (“IFRS”) or U.S. GAAP, including cash costs and AISC per payable pound of zinc sold, EBITDA, pre-tax cash flow and free cash flow. Non-GAAP measures do not have any standardized meaning prescribed under IFRS or U.S. GAAP and, therefore, they may not be comparable to similar measures employed by other companies. The Company believes that, in addition to conventional measures prepared in accordance with IFRS and U.S. GAAP, certain investors use this information to evaluate its performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS or U.S. GAAP.

Mining Veteran Tom Obradovich Joins FenixOro Advisory Committee

 

TORONTO, Sept. 20, 2021 (GLOBE NEWSWIRE) — FenixOro Gold Corp (CSE:FENX) (OTCQB:FDVXF) (Frankfurt:8FD) is pleased to announce that Tom Obradovich, a notably successful and experienced mining investor and entrepreneur, has joined the Fenix Oro Advisory Committee.

Born and raised into a mining family in Kirkland Lake, Ontario, Mr. Obradovich is a graduate of the Haileybury School of Mines in Mining Technology and Advanced Field Geophysics. He has a wide range of experience in mining exploration, development and financing. Over a career of thirty-eight years he has enjoyed significant success as a number of projects he has been involved in have gone onto become producing mines acquired by major mining companies.

Tom cofounded Canadian Royalties Inc. which discovered and developed the Raglan South Nickel Belt. He then acquired most of the Matachewan Gold Camp and through a reverse takeover of Young-Davidson Mines, upgraded and doubled the resource. The company was subsequently acquired by Northgate Minerals and the project is currently producing over 200,000 oz of gold per year for Alamos Gold Inc. (TSX:AGI).

He was also one of the founders of Aurelian Resources Inc. which discovered the Fruta Del Norte gold deposit in Ecuador and was subsequently acquired by Kinross Gold (TSX:K) for $1.2 Billion. The project is now producing approximately 400,000 oz of gold per year for Lundin Gold (TSX:LUG).

Mr. Obradovich became President and CEO of Barkerville Gold Mines in January of 2015 and led the management team to turn the company into a debt free mining and exploration vehicle with a market capital in excess of $200 million and $60 million in treasury when he resigned in July 2016. Barkerville was subsequently acquired by Osisko Mining (TSX:OSK). He was also Lead Director of Dalradian Resources, a company that developed a multi-million ounce gold deposit in Northern Ireland and was subsequently sold for $560 million to Orion Mine Finance.

Tom is currently the Chairman of Sable Resources, a pure greenfields exploration company developing the Don Julio Project through a joint venture in San Juan Province, Argentina.

FenixOro CEO John Carlesso commented: “Tom Obradovich is a seasoned and highly respected veteran in the mining industry and we are very fortunate to have his support on the Advisory Committee. As we continue to grow and develop the Abriaqui gold deposit, Tom’s vast knowledge and experience will bring tremendous value to our decision-making process.”

The Company has granted 1,200,000 stock options to advisors and consultants. The options have an exercise price of 32 cents and expire 5 years from the grant date.

About FenixOro Gold Corp.

FenixOro Gold Corp is a Canadian company focused on acquiring and exploring gold projects with world class exploration potential in the most prolific gold producing regions of Colombia. FenixOro’s flagship property, the Abriaqui project, is the closest project to Continental Gold’s Buritica project. It is located 15 km to the west in Antioquia State at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” (December 5, 2019), the geological characteristics of Abriaqui and Buritica are similar. Since the preparation of this report a Phase 1 drilling program has been completed at Abriaqui resulting in a significant discovery of a high grade, “Buritica style” gold deposit. A Phase 2 drilling program has recently commenced.

FenixOro’s VP of Exploration, Stuart Moller, led the discovery team at Buritica for Continental Gold in 2007-2011. At the time of its latest public report, the Buritica Mine contains measured plus indicated resources of 5.32 million ounces of gold (16.02 Mt grading 10.32 g/t) plus a 6.02 million ounce inferred resource (21.87 Mt grading 8.56 g/t) for a total of 11.34 million ounces of gold resources Buritica began formal production in November 2020 and has expected annual average production of 250,000 ounces at an all-in sustaining cost of approximately US$600 per ounce. Resources, cost and production data are taken from Continental Gold’s “NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia, 18 March, 2019”). Continental Gold was recently the subject of a takeover by Zijin Mining in an all-cash transaction valued at C$1.4 billion.

FenixOro Gold Corp
John Carlesso, CEO
Email: info@FenixOro.com
Website: www.FenixOro.com
Telephone: 1-833-ORO-GOLD

Wednesday, September 15, 2021

Allegiant Gold (AUXXF)(AUAU:CA)
Getting Ready for the Next Round of Drilling

Allegiant Gold Ltd is a gold exploration company. Its project profile consists of Bolo, Browns Canyon, Clara Moro, Four Metals, Monitor Hills, Red Hills, Silver Dome, West Goldfield, White Horse Flats, Mogollon, Eastside, Dutch Flat, and others.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Drilling program. We think Allegiant could commence drilling in October using both reverse circulation (RC) and diamond core drill rigs. The number of rigs may depend on availability which is tight. The company is in the process of securing drilling contractors. Over the next twelve months, management expects to drill 60 to 70 holes, representing approximately 23,000 meters of drilling at targets located within the existing resource pit shell and at other exploration targets. This includes 10 holes, or 6,000 meters, of diamond core drilling along the western edge of the original pit zone and 50 to 60 holes, or 17,000 meters, of step-out and exploration drilling. The company’s recent financing provides financial flexibility to fund planned activities.


Permit expected shortly.  Because there are significant opportunities to continue to develop the original pit zone by expanding the permitted area from 601 acres to 3,600 acres, exploration drilling will include areas outside the current permitted area, including the East Pediment Zone. We expect the company to receive the permit within the next several weeks …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Aurania Refines Tatasham Target In Preparation For Drilling

 

Toronto, Ontario, September 13, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports on geophysical modelling that has refined the shape of the Tatasham target, a feature that has characteristics of a porphyry, a deposit type that contains over half of the world’s copper resources.  Tatasham is located near the western margin of the Company’s Lost Cities – Cutucu Project area (“Project”) in southeastern Ecuador.

Aurania’s Chairman & CEO, Dr. Keith Barron commented, “Tatasham is the largest geophysical feature identified in the airborne magnetic survey that we carried out over the whole concession area in 2017.  We subsequently covered the target area in the MobileMT survey completed earlier this year.  We believe that our geophysical inversion contractors have made a breakthrough in the inversion of MobileMT geophysical data acquired in mountainous areas like the Project area.  The 3D inverted MobileMT and magnetic data define a magnetic core that is approximately 3 kilometres in diameter that could be the central part of a porphyry which is partially enclosed by a conductive zone that could be due to the presence of sulphides – which is where most of the mineralization is located in copper porphyries.  Now that the target shape has been refined by remodelling of the geophysical data, we’re doing some final field-checking and are preparing to drill Tatasham this year in Q4.”   

To watch Keith Barron’s presentation from the 2021 Precious Metals Summit Beaver Creek, held September 8-11, 2021, please click here.  Please note that registration is required in order to view the replay of the webcast presentation.

An early description of the Tatasham target can be found in a video (starting at minute mark 1:10) on our website entitled “Metron Probability Update Part III – Making Sense of our Magnetic Data”.

Tatasham Target

The core of the Tatasham target is a magnetic cylinder 3km-4km in diameter that is partially enclosed by a conductive zone derived from a totally different dataset – MobileMT (Figure 1).  This geophysical model is consistent with a magnetic porphyry at the centre with an adjacent sulphide-bearing conductive zone – where mineralization is typically located.

Drilling is planned for Q4, 2021.  Details of the drilling, in terms of metreage and number of planned holes, will be announced in due course.

Details of the Geophysical Modelling

Original processing of magnetic data from the 2017 geophysical survey showed the Tatasham magnetic feature (negative reduction to the pole) having a diameter of over 10km – the largest in the Project area.  Refined processing of the magnetic data by three-dimensional magnetic vector inversion has resulted in a better-defined, smaller magnetic feature that is 3km-4km in diameter.   In addition, three-dimensional inversion of MobileMT data has refined the location of conductive areas that are consistent with geological data.

Modelling of the magnetic and MobileMT data was carried out by Geotexera Inc. of St. John’s, Newfoundland, Canada.

Figure 1.  Images of combined 3D magnetic vector inversion (grey body) with the 3D inversion of MobileMT data.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

 

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that 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 may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.