ENP Newswire -
Release date- 03092014 -
The work program is intended to gather specific data on underground mining costs, acquire geotechnical information, collect bulk samples for metallurgical testing including test milling, and evaluate selective mining methods. The data gathered will be utilized to complete a pre-feasibility study ('PFS') in accordance with Canadian National Instrument 43-101 that will evaluate economic parameters for potential future mine development at Igor.
Important aspects of the MOU are summarized below:
Patagonia anticipates that it will take between seven and ten months to develop underground mining infrastructure sufficient to allow collection of appropriate bulk samples and conduct test mining along the Callanquitas Structure.
Patagonia plans to develop mine workings on three levels over a vertical range of approximately 150 metres to access different areas within the Callanquitas Structure where previous drilling has defined Inferred gold and silver resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.
During the mine development phase outlined above, Patagonia will be responsible for all costs in excess of
In order to finance its portion of the mine development program, Peruvian has agreed to a non-brokered Private Placement with Patagonia, for gross proceeds of approximately
After completion of the mine development phase outlined above, the Company and Patagonia will utilize the underground access and infrastructure to conduct test mining operations and collect bulk samples for metallurgical testing and milling to determine mining costs profiles and detailed metallurgical data including potential milling recoveries. The mining infrastructure is planned to accommodate test mining at rates of up to 350 tonnes per day.
Should the test mining program, metallurgical testing and/or test milling of gold and silver mineralized material from the
The MOU allows for test mining to continue for a period of up to five years under the terms outlined above. The Company has the right to terminate that agreement at any time by paying Patagonia a termination fee.
During the first two years of the test mining program, Peruvian can terminate the agreement by paying Patagonia
If the termination of the test mining program coincides with the completion of a contract for mining services at Igor with Patagonia, the termination payments are reduced by
The private placement is subject to regulatory approval.
Patagonia will be responsible for acquiring all necessary permits for the test mining program and Patagonia believes that the permits can be obtained in a timely manner. The Company is in discussion with various metallurgical labs and mill operators regarding the design, cost and execution of a comprehensive metallurgical and test milling program. The test milling of bulk samples from the Callanquitas structure will be a key aspect of the overall work program as the Company develops a comprehensive database to be used in the eventual preparation of a PFS for the
Explora/Patagonia are the premier underground mining contractors in
Included within this resource estimate is a higher grade zone consisting of 2,730,000 tonnes grading 2.73 gpt gold and 119.1 gpt silver containing 239,400 ounces of gold and 10,500,000 ounces of silver using a 3.0 gpt gold equivalent cutoff grade. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.
The Company is continuing its exploration and development of the
CFO and Vice President
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration and development activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators.
The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
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