Strongbow''s South Crofty Tin Project Reports Positive PEA Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/16/17 -- Strongbow Exploration Inc. (TSX VENTURE: SBW) ("Strongbow" or the "Company") is pleased to report the results of an independent Preliminary Economic Assessment ("PEA") of its 100%-owned South Crofty tin project, located in Cornwall, UK. The PEA was completed by P&E Mining Consultants Inc. of Ontario, Canada in accordance with guidelines found in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). All amounts quoted are in USD unless specified otherwise.
The PEA indicates that the project is potentially economically viable and technically feasible.
Richard Williams, Strongbow''s President and Chief Executive Officer commented:
"The completion of a PEA for South Crofty is another significant step in advancing the project to a production decision. The outcome of this PEA, coupled with the strong potential to materially add to the Lower Mine tin Mineral Resource, supports our belief that South Crofty can become an operating mine once again.
"We now have a project that not only shows it is potentially economic under the PEA parameters, but also benefits from a mine permit valid until 2071, planning permission to construct a new process plant, and strong community support.
"The next step for the Company is to complete the current water treatment trials by the end of February 2017 and submit an application to the Environment Agency for a permit to commence dewatering the mine."
PEA Highlights
The PEA was prepared by P&E Mining Consultants Inc. of Ontario, Canada. P&E is an established Canadian geological and mining consultancy that has undertaken over 300 precious and base metals resource estimate and mine engineering projects globally since 2004. P&E has a diverse current client base which it services from its Toronto area and Vancouver offices. Disclosure of a scientific or technical nature in this press release was prepared under the supervision of Owen Mihalop, CEng. MIMMM, the Company''s Chief Operating Officer, and Eugene Puritch, P.Eng. and Andrew Bradfield, P.Eng., of P&E Mining Consultants Inc. Messrs. Mihalop, Puritch and Bradfield are "Qualified Persons" as defined in NI 43-101.
Project Growth Opportunities
There are numerous opportunities to further enhance the South Crofty tin project including:
The reader is cautioned that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The mineralized material mined in the PEA differs from the Mineral Resource Estimate of May 2016 due to mine planning access considerations, higher SnEq cut-off grade, higher Sn price, dilution, mine recovery factor and production scheduling logistics.
Tin Price Sensitivity
The project sensitivity analysis shows that a $1/lb variation from the $10/lb base-case tin price had the following impact on the project after-tax economics.
Economic Benefits to the UK and Local Communities
The PEA indicates that the development of South Crofty could provide substantial economic benefits at the local and county levels, including:
PEA Details
The mineralized material mined in the PEA indicates that 2,575 kt at an average grade of 1.55% SnEq is amenable to mining which is based on the NI 43-101 Mineral Resource Estimate published by Strongbow in May 2016 is detailed below.
Mineralized Material Mined
The mineralized material mined contains Mineral Resources classified in the Inferred category and therefore cannot be considered a Mineral Reserve, however, the PEA demonstrates that approximately 83% of the Mineral Resources are demonstrated to be potentially extracted under the mine plan supported by the PEA. 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 preliminary economic assessment will be realized.
The South Crofty mine is expected to be accessed via the existing New Cook''s Kitchen shaft which will serve as the primary access to the mine for personnel and materials and for transporting mill feed to the plant site. The existing Tuckingmill decline will be extended in the second half of the mine life and eventually provide an alternative haulage route from the upper levels as well as access and ventilation. The existing New Roskear shaft will provide ventilation and secondary egress during development and early mine life.
Annual mill feed of up to 350,000 tonnes (1,000 tonnes per day) is planned, primarily using sub-level longhole mining. Delayed thickened tailings will be used as backfill to support some mining areas. Mining blocks will be approximately 60m along strike and 20m to 30m high. Mineralized material will be removed from the stopes using 3.5 tonne load-haul-dump vehicles (LHDs) and transported to the existing shaft hoisting infrastructure using 20 tonne trucks. All development and re-habilitation work will be conducted using single boom hydraulic jumbo drills to widen the existing access development from 2.4m x 2.4m to 3.0m x 3.5m to enable trackless mining.
Processing
South Crofty mill feed is expected to be processed using a crush, grind, gravity and flotation flowsheet to recover tin and later in the mine life, copper and zinc when mining the lower grade upper mine stopes. Historical processing operations up to 1998, plus more recent testwork on the polymetallic material, have demonstrated that recoveries of between 88% and 90% can be expected over the LOM. Coarse tin is recovered by gravity separation following primary grinding with finer tin plus copper and zinc recovered through flotation following re-grinding of the gravity tails. Tailings from the flotation circuit will be thickened and placed underground in voids created during the previous mining operations and also in the newly-mined stopes, where required for support. All process water will come from mine dewatering and will be treated prior to discharge. Both mine water and process water will be treated using the High Density Sludge ("HDS") process to remove heavy metals prior to discharge. Where possible, process water will be re-circulated to minimize environmental impact.
Capital and Operating Costs
The pre-production capital cost of the South Crofty project is estimated to be $118.7-million. The LOM sustaining capital is estimated to be a further $83.8-million, comprising mine capital development and mill sustaining capex.
The LOM operating cost estimate is $101.35 per tonne of mineralized material (totals may be approximate due to rounding).
Infrastructure & Permits
The South Crofty project, being a former mining site, is already serviced with good infrastructure. Three deep vertical shafts will provide personnel and material access, mineralized material and waste hoisting and ventilation for the underground mine. There is a partly completed decline from surface and the Company owns sufficient freehold surface land with full planning permission to build new processing facilities. The project has a Mine Permit, valid through to 2071, and also benefits from planning permission to mine by underground methods to a depth of 1,500m across approximately 1,500 hectares of land surrounding the surface facilities.
The only outstanding permit required to commence operation from South Crofty is a mine waste permit with water discharge consent. This permit is required to pump out the mine and discharge treated water into the local river system. A water treatment trial is currently underway to demonstrate that the mine water can be treated to a sufficient quality standard to permit discharge into the Red River (please see Strongbow news release dated for details of the water treatment trial). This trial is supported by the Environment Agency and a permit application for the full discharge consent will be submitted on completion of the trial, which is expected to conclude near the end of February, 2017.
Next steps
Independent Qualified Person
Mr. Eugene Puritch, P. Eng., lead author of the NI 43-101 Technical Report and an independent "Qualified Person" as defined in NI-43-101 has reviewed and approved the contents of this news release.
The Company will publish a Technical Report, prepared in accordance with NI 43-101 guidelines, within 45 days of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard D. Williams, P.Geo
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.
This news release contains "forward-looking statements" including but not limited to statements with respect to Strongbow''s ability to obtain an increase to the water discharge permit for the South Crofty tin project, the potential to increase the Mineral Resource Estimate, its ability to deliver a positive Feasibility Study on the project, the commencement of commercial production from the South Crofty tin project and the estimated future net present value of the South Crofty tin project, the availability of financing for future cash payments, ongoing maintenance costs and future development work at the South Crofty tin project, in addition to the estimation of a mineral resource and the success of exploration activities.
The Mineral Resource Estimate figures referred to in this press release are estimates and are therefore insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of the technical or economic viability and no assurances can be given that mining of the South Crofty project will be technically viable or that the indicated levels of tin will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practises. Valid estimates made at any given time may significantly change when new information becomes available. While the Company believes that the resource estimates included in this press release are well established, by their very nature, resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company.
Forward-looking statements, while based on management''s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt of regulatory approvals, the successful integration of acquisitions; risks related to general economic and market conditions; risks related to the availability of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in Mineral Resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations.
Although Strongbow has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Strongbow undertakes no obligation or responsibility to update forward-looking statements, except as required by law.
Contacts:
Strongbow Exploration Inc.
Richard Williams
604-638-8005
Blytheweigh (Financial PR/IR - London)
Tim Blythe
+44 207 138 3204
Blytheweigh (Financial PR/IR - London)
Camilla Horsfall
+44 207 138 3204
Blytheweigh (Financial PR/IR - London)
Nick Elwes
+44 207 138 3204
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Datum: 16.02.2017 - 07:30 Uhr
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