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Imperial Reports Third Quarter 2021 Financial Results

VANCOUVER, British Columbia, Nov. 09, 2021 (GLOBE NEWSWIRE) — Imperial Metals Corporation (the “Company”) (TSX:III) reports financial results for…

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VANCOUVER, British Columbia, Nov. 09, 2021 (GLOBE NEWSWIRE) — Imperial Metals Corporation (the “Company”) (TSX:III) reports financial results for the three and nine months ended September 30, 2021, as summarized in this release and discussed in detail in the Management’s Discussion & Analysis. The Company’s financial results are prepared in accordance with International Financial Reporting Standards (“IFRS”). The reporting currency of the Company is the Canadian (“CDN”) Dollar.

QUARTER HIGHLIGHTS

FINANCIAL

Total revenue decreased to $37.1 million in the September 2021 quarter compared to $38.2 million in the 2020 comparative quarter, a decrease of $1.1 million.

In the September 2021 quarter, the Red Chris mine (100% basis) had 4.0 concentrate shipments (2020-4.3 concentrate shipments). Variations in revenue are impacted by the timing and quantity of concentrate shipments, metal prices and exchange rates, and period end revaluations of revenue attributed to concentrate shipments where copper and gold prices will settle at a future date.

The London Metals Exchange cash settlement copper price per pound averaged US$4.25 in the September 2021 quarter compared to US$2.96 in the 2020 comparative quarter. London Bullion Market Association, London gold price per troy ounce averaged US$1,789 in the September 2021 quarter compared to US$1,911 in the 2020 comparative quarter. The average US/CDN Dollar exchange rate was 1.260 in the September 2021 quarter, 5.4% lower than the exchange rate of 1.332 in the 2020 comparative quarter. In CDN Dollar terms the average copper price in the September 2021 quarter was CDN$5.36 per pound compared to CDN$3.94 per pound in the 2020 comparative quarter, and the average gold price in the September 2021 quarter was CDN$2,254 per ounce compared to CDN$2,545 per ounce in the 2020 comparative quarter.

Revenue in the September 2021 quarter decreased by $0.8 million due to a negative revenue revaluation as compared to a $3.3 million positive revenue revaluation in the 2020 comparative quarter. Revenue revaluations are the result of the metal price on the settlement date and/or the current period balance sheet date being higher or lower than when the revenue was initially recorded or the metal price at the last balance sheet date and finalization of contained metal as a result of final assays.

Net loss for the September 2021 quarter was $3.8 million ($0.03 per share) compared to net income of $7.1 million ($0.05 per share) in the 2020 comparative quarter. The decrease in net income of $10.9 million was primarily due to the following factors:

  • Income from mine operations went from $12.8 million in September 2020 to $4.9 million in September 2021, decreasing net income by $7.9 million.
  • General and Administration expense went from $0.8 million in September 2020 to $1.3 million in September 2021, decreasing net income by $0.5 million.
  • Foreign exchange gain/loss went from a loss of $1.1 million in September 2020 to a gain of $0.3 million in September 2021, increasing net income by $1.4 million.

Cash flow was $7.8 million in the September 2021 quarter compared to $17.4 million in the 2020 comparative quarter. Cash flow is a measure used by the Company to evaluate its performance however, it is not a term recognized under IFRS. The Company believes cash flow is useful to investors and it is one of the measures used by management to assess the financial performance of the Company.

Capital expenditures including finance leases were $33.8 million in the September 2021 quarter, an increase from $25.4 million in the 2020 comparative quarter. The September 2021 expenditures included $12.8 million in exploration, $9.9 million for tailings dam construction and $11.1 million on stripping costs and other capital.

At September 30, 2021, the Company had not hedged any copper, gold or US/CDN Dollar exchange. Quarterly revenues will fluctuate depending on copper and gold prices, the US/CDN Dollar exchange rate, and the timing of concentrate sales, which is dependent on concentrate production and the availability and scheduling of transportation.

OPERATIONS  

The current impact of the COVID-19 pandemic on our business is described under Significant Events and Liquidity. The Company’s plans for 2021 and beyond could be adversely impacted by the effects of the COVID-19 pandemic. The continuing impact of COVID-19 to travel and other operating restrictions established to curb the spread of COVID-19, could materially and adversely impact the Company’s current plans by causing a temporary closure of the Red Chris mine, suspending planned exploration work, causing an economic slowdown resulting in a decrease in the demand for copper and gold, negatively impacting copper and gold prices, impacting the Company’s ability to transport or market the Company’s concentrate or causing disruptions in the Company’s supply chains.

Red Chris Mine

Metal production for the third quarter of 2021 was 17.2 million pounds copper and 15,249 ounces gold, compared to 22.2 million pounds copper and 18,052 ounces gold produced in the 2020 third quarter.

Imperial’s 30% portion of Red Chris mine third quarter production was 5.2 million pounds copper and 4,575 ounces gold.

  Three Months Ended
September 30*
  Nine Months Ended
September 30*
  2021 2020   2021 2020
Ore milled – tonnes 2,543,495 2,777,245   7,199,572 7,196,524
Ore milled per calendar day – tonnes 27,647 30,187   26,372 26,265
Grade %  – copper 0.389 0.460   0.407 0.553
Grade g/t  – gold 0.336 0.398   0.365 0.462
Recovery %  – copper 79.0 78.8   78.5 81.0
Recovery %  – gold 55.6 50.8   55.1 53.9
Copper – 000’s pounds 17,244 22,203   50,704 71,112
Gold – ounces 15,249 18,052   46,550 57,536

* 100% Red Chris mine production

Metal production for both the three and nine months ended September 30, 2021, decreased compared to the same periods in 2020. The decrease in metal production is largely due to lower metal grades, with copper grade 15.4 % lower and gold grade 15.6% lower compared to September 2020 quarter.

The copper and gold production levels (100% basis) in the September 2021 quarter were close to those in the June 2021 quarter, 17.2 million pounds of copper and 15,249 ounces of gold were produced in the September 2021 quarter compared to production of 17.6 million pounds of copper and 15,451 ounces of gold in the June 2021 quarter, with slightly lower gold and copper grades, being offset by higher through-put in the September 2021 quarter.

The results of the recently released Red Chris Block Cave Pre-Feasibility Study (PFS), have confirmed Imperial’s long held belief that Red Chris had the potential to become a long-life, low-cost block cave copper gold mine. The exploration decline for the proposed block cave development had progressed to 393 metres by October 20, 2021.

There are significant opportunities to enhance the results of the PFS including the ‘early mining’ of the highest-grade pods in the East Zone and the emerging opportunity associated with the discovery of new distinct higher-grade zones of mineralization such as East Ridge.

Drilling at the newly discovered East Ridge continues to expand the extent of mineralization in this zone and has demonstrated continuity of the copper gold mineralization over dimensions of about 400 metres high, 400 metres long and 125 metres wide. Contained within this zone of mineralization is a higher-grade portion with dimensions of approximately 300 metres high, 300 metres long and 100 metres wide. East Ridge remains open to the east and at depth. During the third quarter, there were up to eight diamond drill rigs in operation. A further 29,388 metres of drilling was completed in 24 drill holes, with all drill holes intersecting mineralization (except twelve drill holes which were dedicated geotechnical holes).

Jim Miller-Tait, P.Geo., Imperial Metals Vice President Exploration, is the designated Qualified Person as defined by National Instrument 43-101 for the Red Chris exploration program and has reviewed this information.

Imperial’s 30% share of exploration, development, and capital expenditures were $28.2 million in the September 2021 quarter compared to $26.3 million in the 2020 comparative quarter.

Mount Polley Mine

Mount Polley operations ceased in May 2019 and the mine remains on care and maintenance status. The mine restart plan prepared in 2019, is being updated to include revised pit designs, results of recent drilling and current metal prices. The Company is actively seeking to secure financing to fund the restart of the mine. The COVID-19 pandemic continues to impact the mine restart timeline.

Site personnel continue to maintain access, fire watch, manage collection, treatment and discharge of site contact water and actively monitor the tailings storage facility. In addition, work to facilitate the restart of operations at Mount Polley continued during the quarter. This work included:

  • a small crew of mechanics continuing to prepare the mining fleet;
  • testing blasthole drills by starting a blasthole pattern on the 1120 metres bench in the Springer Pit Phase 4 pit; and
  • hiring mechanical and electrical contractors to inspect and repair as required, equipment in the crusher and concentrator.

For the September 2021 quarter, Mount Polley incurred idle mine costs comprised of $5.8 million in operating costs and $0.6 million in depreciation expense.

Exploration, development, and capital expenditures in the September 2021 quarter were $1.3 million compared to $0.2 million in the 2020 comparative quarter.

Huckleberry Mine

Huckleberry operations ceased in August 2016 and the mine remains on care and maintenance status. The Company anticipates the restart of Huckleberry will follow the start of operations at Mount Polley.

Site personnel continue to focus on maintaining access, water management (treatment and release of mine contact water into Tahtsa Reach), snow removal, maintenance of site infrastructure and equipment, mine permit compliance, environmental compliance monitoring and monitoring tailings management facilities.

A geotechnical drilling program was conducted during the quarter to gather the information required to update the tailings facility designs for future operations and to provide information required for dam safety reviews.

For the September 2021 quarter, Huckleberry incurred idle mine costs comprised of $1.2 million in operating costs and $0.2 million in depreciation expense.

Exploration, development, and capital expenditures in the September 2021 quarter were $1.8 million compared to $0.5 million in the 2020 comparative quarter.

EARNINGS AND CASH FLOW

Select Quarter Financial Information

expressed in thousands of dollars,
except share and per share amounts
Three Months Ended Nine Months Ended
September 30 September 30
  2021     2020   2021     2020
Operations:        
Total revenues $ 37,064   $ 38,161 $ 104,329   $ 111,182
Net income (loss) $ (3,772 ) $ 7,063 $ (11,389 ) $ 24
Net income (loss) per share $ (0.03 ) $ 0.05 $ (0.09 ) $ 0.00
Diluted income (loss) per share $ (0.03 ) $ 0.05 $ (0.09 ) $ 0.00
Adjusted net income (loss) (1) $ (3,489 ) $ 7,015 $ (11,165 ) $ 132
Adjusted net income (loss) per share (1) $ (0.02 ) $ 0.05 $ (0.08 ) $ 0.00
Adjusted EBITDA (1) $ 8,136   $ 17,243 $ 19,050   $ 36,001
Cash flow (1)(2) $ 7,780   $ 17,412 $ 18,408   $ 35,937
Cash flow per share (1)(2) $ 0.06   $ 0.14 $ 0.14   $ 0.28
Working Capital $ 21,950   $ 27,082 $ 21,950   $ 27,082
Total assets $ 1,122,484   $ 1,092,134 $ 1,122,484   $ 1,092,134
Total debt (including current portion) (3) $ 4,850   $ 2,847 $ 4,850   $ 2,847

(1) Refer to Non-IFRS Financial Measures for further details.
(2) Cash flow is defined as the cash flow from operations before the net change in non-cash working capital balances, income and mining taxes, and interest paid. Cash flow per share is defined as cash flow divided by the weighted average number of common shares outstanding during the year.
(3) Total debt consists mainly of equipment leases.  


Select Items Affecting Net Income (Loss) (presented on an after-tax basis)

  Three Months Ended   Nine Months Ended  
  September 30   September 30  
expressed in thousands of dollars   2021     2020     2021     2020  
Net income (loss) before undernoted items $ (3,348 ) $ 7,253   $ (10,492 ) $ 935  
Interest expense   (141 )   (238 )   (673 )   (803 )
Foreign exchange gain (loss) on debt   (283 )   48     (224 )   (108 )
Net Income (Loss) $ (3,772 ) $ 7,063   $ (11,389 ) $ 24  

NON-IFRS FINANCIAL MEASURES

The Company reports four non-IFRS financial measures: adjusted net income, adjusted EBITDA, cash flow and cash cost per pound of copper produced which are described in detail below. The Company believes these measures are useful to investors because they are included in the measures that are used by management in assessing the financial performance of the Company.

Adjusted net income, adjusted EBITDA, and cash flow are not generally accepted earnings measures and should not be considered as an alternative to net income (loss) and cash flows as determined in accordance with IFRS. As there is no standardized method of calculating these measures, these measures may not be directly comparable to similarly titled measures used by other companies.

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share

Adjusted net loss in the September 2021 quarter was $3.5 million ($0.02 per share) compared to an adjusted net income of $7.0 million ($0.05 per share) in the 2020 comparative quarter. Adjusted net income (loss) shows the financial results excluding the effect of items not settling in the current period and non-recurring items. Adjusted net income (loss) is calculated by removing the gains or loss, resulting from acquisition and disposal of property, mark to market revaluation of derivative instruments not related to the current period, net of tax, unrealized foreign exchange gains or losses on non-current debt, net of tax.

Adjusted EBITDA

Adjusted EBITDA in the September 2021 quarter was $8.1 million compared to $17.2 million in the 2020 comparative quarter. We define Adjusted EBITDA as net income (loss) before interest expense, taxes, depletion, and depreciation, and as adjusted for certain other items.

Cash Flow and Cash Flow Per Share

Cash flow in the September 2021 quarter was $7.8 million compared to $17.4 million in the 2020 comparative quarter. Cash flow per share was $0.06 in the September 2021 quarter compared to $0.14 in the 2020 comparative quarter.  

Cash flow and cash flow per share are measures used by the Company to evaluate its performance however they are not terms recognized under IFRS. Cash flow is defined as cash flow from operations before the net change in non-cash working capital balances, income and mining taxes paid, and interest paid. Cash flow per share is the same measure divided by the weighted average number of common shares outstanding during the year.

Cash Cost Per Pound of Copper Produced

Company is primarily a copper producer and therefore calculates this non-IFRS financial measure individually for its three copper mines, Red Chris (30% share), Mount Polley and Huckleberry, and on a composite basis for these mines.

Variations from period to period in the cash cost per pound of copper produced are the result of many factors including: grade, metal recoveries, amount of stripping charged to operations, mine and mill operating conditions, labour and other cost inputs, transportation and warehousing costs, treatment and refining costs, the amount of by-product and other revenues, the US$ to CDN$ exchange rate and the amount of copper produced.

Idle mine costs during the periods when the Huckleberry and Mount Polley mines were not in operation have been excluded from the cash cost per pound of copper produced.

Calculation of Cash Cost Per Pound of Copper Produced        

expressed in thousands of dollars,
except cash cost per pound of copper produced

Three Months Ended
September 30
Nine Months Ended
September 30
  2021   2020   2021   2020
Cash cost of copper produced in US$ $ 10,007 $ 9,471 $ 35,332 $ 27,417
Copper produced – pounds   5,173   6,661   15,210   21,333
Cash cost per lb copper produced in US$ $ 1.93 $ 1.42 $ 2.32 $ 1.29

For detailed information, refer to Imperial’s 2021 Third Quarter Report available on imperialmetals.com and sedar.com

About Imperial

Imperial is a Vancouver based exploration, mine development and operating company. The Company, through its subsidiaries, owns a 30% interest in the Red Chris mine, and a 100% interest in both the Mount Polley and Huckleberry copper mines in British Columbia. Imperial also holds 100% interest in the Ruddock Creek lead/zinc property.

Company Contacts

Brian Kynoch | President | 604.669.8959

Darb Dhillon | Chief Financial Officer | 604.669.8959

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release are not statements of historical fact and are “forward-looking” statements. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements regarding the Company’s expectations with respect to the impact of COVID-19 on the Company’s business and operations; metal pricing and its impact on revaluations of revenue; the fluctuation of quarterly revenues; expectations regarding the potential cost and length of life mine of Red Chris; the progression of the exploration decline for the proposed block cave development; expectations and timing regarding current and future exploration and drilling programs; the potential significant opportunities to enhance the results of the PFS including the early mining of highest-grade pods in the East Zone and the discovery of new distinct higher grade zones of mineralization; the potential to define further zones of higher-grade mineralization in the East Ridge; the focus of site personnel on care, maintenance and rehabilitation activities at Mount Polley and Huckleberry; updates to the mine restart plans prepared for Mount Polley; expectations regarding Mount Polley and Huckleberry restart timelines; the Company’s ability to secure financing to fund the restart of Mount Polley; and the usefulness and comparability of certain non-IFRS financial measures.

In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “outlook”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on information currently available to the Company as well as the Company’s current beliefs and assumptions. These factors and assumptions and beliefs and assumptions include, the risk factors detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended, many of which are beyond the Company’s ability to control or predict. There can be no assurance that forward-looking 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 and all forward-looking statements in this news release are qualified by these cautionary statements.








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Energy & Critical Metals

Approval of New Infrastructure Bill Sparks Enthusiasm for Copper

FN Media Group Presents Microsmallcap.com Market Commentary

Approval of New Infrastructure Bill Sparks Enthusiasm for Copper

FN Media Group Presents Microsmallcap.com Market Commentary

PR Newswire

NEW YORK, Nov. 23, 2021 /PRNewswire/ — Last week, US President Joe Biden unveiled one of the largest infrastructure plans in U.S. history. The bipartisan approval targets up to $1.2 trillion in funding, including $550 billion in new investments for bridges, airports, the nation’s waterways and policies, transit, and more. Much of the bill targets electrification for infrastructure, buildings, and fleets of government vehicles. In addition to financing renewable energy, the infrastructure bill also provides $7.5 billion for electrification of public transport and an additional $7.5 billion for charging stations for electric vehicles (EVs), which is expected to drive demand for industrial metals and battery materials like copper, lithium, cobalt, nickel, and more. Companies mining these metals and materials like Wheaton Precious Metals (TSX:WPM) (NYSE:WPM), Hudbay Minerals (NYSE:HBM), Taseko Mines Ltd. (TSX:TKO) (NYSE:TGB), Copper Mountain Mining (TSX:CMMC), and Kutcho Copper (TSXV:KC) (OTCQX:KCCFF) could be on the precipice of a mining boom due to this bill.

Canadian resource developer Kutcho Copper (TSXV:KC) (OTCQX:KCCFF) just achieved a significant milestone at its Kutcho copper and zinc project in northern British Columbia, announcing the completion of its 2021 feasibility Study. After receiving positive project economics, Kutcho is now ready to move to the next phases on its path to production including the permitting process for the project.

Some of the highlights of the feasibility study include an after-tax Net Present Value (NPV) 7% of C$461 million, an Internal Rate of Return (IRR) of 25%, and low-cost production with all-in-sustaining costs (AISC) of US$1.80 per pound of copper equivalent (CuEq). The initial capital cost was also estimated to be low, at only C$493 million.

The study also confirmed that the project has a high-grade mineral resource of 8 million tonnes grading 2.26% CuEq 1.1 billion pounds CuEq, including 764 Mlbs Cu and 1,096 Mlbs Zn.

“The Feasibility Study represents a major milestone for Kutcho Copper as we continue to advance the high-grade Kutcho copper-zinc project towards a development decision,” said Kutcho Copper President and CEO Vince Sorace. “The results of the Feasibility Study highlight the attractive economics of the Kutcho project which are resilient at lower metal prices, very attractive at base case prices and exhibit significant leverage to rising prices as reflected in spot metal prices with a C$931 million after-tax NPV7% and a 41% IRR. We believe that the results of the Feasibility Study mean that Kutcho Copper is now one of the most undervalued copper investment opportunities in North America.”

Last month, Kutcho Copper also outlined potential open pit and underground resource expansion targets for 2022, beyond those contemplated in the feasibility study. Kutcho’s President and CEO commented, “We plan to advance a number of greenfields targets that show potential for the discovery of entirely new deposits that have not seen any exploration conducted since 1990.”

Kutcho Copper is evaluating plans to explore new priority targets in 2022 with the goal of enhancing the potential and size of its project. In conjunction with these efforts, Kutcho Copper will conduct an airborne geophysical VTEM survey over portions of the property that have not been covered by geophysical surveys in the past.

The company, which gained $100 million in financial backing from Wheaton Precious Metals (TSX:WPM) (NYSE:WPM), is fully dedicated to resource development to expand its high-grade Kutcho copper-zinc project in northern British Columbia.  Kutcho Copper is committed to social responsibility and high environmental standards through the feasibility and permitting required for a positive constructive decision to advance its Kutcho Project, bringing it to production as soon as possible during this opportune moment for copper miners.

For more information on Kutcho Copper (TSXV:KC) (OTCQX:KCCFF), please click here.

An Industry in a Maelstrom of Perfect Timing

Wheaton Precious Metals (TSX:WPM) (NYSE:WPM) recently declared its fourth-quarter cash dividend payment for 2021 of US$0.15 per common share, a 25% increase over the comparable period in 2020. The company reported its earnings for the first nine months of 2021, revealing over $200 million in operating cash flow during Q3 and a record $650 million in the first nine months of 2021.

Hudbay Minerals (NYSE:HBM) announced in September that new three-and-a-half-year collective bargaining agreements ratified by United Steelworkers members have been signed. Hudbay is a diversified mining company that primarily produces copper concentrate. The company’s growth strategy is focused on exploration, development, operation, and optimization of its existing properties.

Taseko Mines Ltd. (TSX:TKO) (NYSE:TGB) reported a significant increase in quarterly copper production. Taseko Mines announced that the Gibraltar mine produced 34.5 million pounds of copper and 600,000 pounds of molybdenum in the third quarter, representing increases of 29% and 50% respectively, compared to the second quarter.

Copper Mountain Mining (TSX:CMMC), whose flagship asset the Copper Mountain mine in British Columbia, Canada produces approximately 100 million pounds of copper equivalent annually, announced the appointment of Patrick Redmond as senior vice president President, Exploration, effective November 1, 2021. Mr. Redmond will bring years of geological knowledge and insight to the Copper Mountain team, with more than 25 years of international mineral exploration experience.

The $1.2 trillion bipartisan infrastructure bill is about to kick off a long run for commodities, and in particular, copper. Copper mining companies are in the middle of one of the most opportune moments in history.

DISCLAIMER: Microsmallcap.com (MSC) is the source of the Article and content set forth above.  References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
 
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Lundin Mining Provides Operational Outlook & Update

Lundin Mining Provides Operational Outlook & Update
Canada NewsWire
TORONTO, Nov. 22, 2021

TORONTO, Nov. 22, 2021 /CNW/ – (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) provides the following…

Lundin Mining Provides Operational Outlook & Update

Canada NewsWire

Lundin Mining (CNW Group/[nxtlink id=

TORONTO, Nov. 22, 2021 /CNW/ – (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) provides the following production guidance for the three-year period of 2022 through 2024, as well as cash cost, capital and exploration expenditure forecasts for 2022. The Company will hold a conference call and webcast on Tuesday November 23, 2021, to answer investor and analyst questions. Additionally, the Company announces renewal of its Normal Course Issuer Bid (“NCIB”), pending final approvals.

(This news release contains non-GAAP measures and forward-looking information about expected future events and financial and operating performance of the Company. We refer to the Historical Non-GAAP Measure Comparatives section and the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information section of this press release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

  • Copper production is to increase to 258,000-282,000 t on a consolidated basis in 2022.
  • Zinc production is forecast to increase to 188,000-203,000 t in 2022 as the Neves-Corvo Zinc Expansion Project (“ZEP”) ramps up and on an improved near-term production profile at Zinkgruvan.
  • Gold production is forecast to be 153,000-163,000 oz in 2022, of which approximately 85,000 oz, at the midpoint of guidance, are unencumbered and to receive full market pricing.
  • Nickel production is to moderate to 15,000-18,000 t in 2022 with priority on increasing Eagle East ore.

Production Outlook 2022 – 20241

2022

2023

2024

Copper (t)

Candelaria (100% basis)

155,000

165,000

150,000

160,000

165,000

175,000

Chapada

53,000

58,000

50,000

55,000

50,000

55,000

Eagle

15,000

18,000

12,000

15,000

9,000

12,000

Neves-Corvo

33,000

38,000

35,000

40,000

35,000

40,000

Zinkgruvan

2,000

3,000

3,000

4,000

3,000

4,000

Total Copper

258,000

282,000

250,000

274,000

262,000

286,000

Zinc (t)

Neves-Corvo

110,000

120,000

142,000

152,000

142,000

152,000

Zinkgruvan

78,000

83,000

85,000

90,000

83,000

88,000

Total Zinc

188,000

203,000

227,000

242,000

225,000

240,000

Gold (oz)

Candelaria (100% basis) 2

83,000

88,000

90,000

95,000

93,000

98,000

Chapada

70,000

75,000

65,000

70,000

60,000

65,000

Total Gold

153,000

163,000

155,000

165,000

153,000

163,000

Nickel (t)

Eagle

15,000

18,000

13,000

16,000

9,000

12,000

Total Nickel

15,000

18,000

13,000

16,000

9,000

12,000

________________________________

1 Production guidance is based on certain estimates and assumptions, including but not limited to: Mineral Resources and Mineral Reserves, geological formations, grade and continuity of deposits and metallurgical characteristics. 

2 68% of Candelaria’s total gold and silver production are subject to a streaming agreement. 

Production Outlook 2022 – 2024

  • Candelaria: Copper production for the next three years is forecast to increase over that of 2021, primarily on improved copper head grades and achievement of planned processing rates as initiatives to debottleneck the Candelaria plant pebble crushing circuit are realized in early 2023.

    From the Candelaria open pit, ore mining is to continue primarily from the Phase 10 pushback in 2022, with initial ore production from the Phase 11 pushback during the year. In 2023 and 2024, ore is to be mined primarily from Phase 11.

    Over the guidance period, total mill throughput is forecast to range between 27-28 million tonnes per annum (“Mtpa”). Debottlenecking initiatives of the Candelaria plant pebble crushing circuit will increase mill capacity starting in early 2023 and, based on the planned mill feed blend and the ore hardness throughput model, annual throughput is expected to exceed 28 Mtpa commencing in 2025.

    In 2022 and 2023, Candelaria open pit ore is forecast to contribute approximately 16 Mtpa to the mill feed, increasing to approximately 18 Mtpa in 2024. The underground mines are forecast to contribute approximately 8 Mtpa of ore in each year, with stockpile ore comprising the balance of the mill feed.

    Production guidance considers a mine-to-mill grade call factor of 8% in 2022, reducing to 5% in 2023 and 2024. With focus on operational practices, improvement in grade discrepancy was observed in the third quarter of 2021 compared to the prior two quarters, and to-date in the fourth quarter the positive trend has continued. Candelaria is continuing its methodical approach to identify and address sources of unplanned dilution and discrepancy across the mine-to-mill process.

    Candelaria’s copper production guidance is 155,000-165,000 t for 2022. Copper production is forecast to be modestly greater in the second half of the year than the first, primarily owing to the copper grade profile. Gold production guidance is 83,000-88,000 oz for 2022 and, similarly, modestly weighted to the second half of the year.

  • Chapada: Copper production guidance is consistent with the prior outlook3, while gold production guidance has been increased for 2022 on refinement of near-term operating plans. Production expectations are based on the current 24 Mtpa throughput capacity over the guidance period with annual changes driven primarily by the forecast grade profile.

    Chapada’s copper production is forecast to increase in 2022 to 53,000-58,000 t. Copper production is expected to be modestly greater in the second half of the year primarily due to the forecast grade profile and seasonal operating considerations. Gold production guidance is 70,000-75,000 oz for 2022 and, similarly, modestly weighted to the second half of 2022 due to the forecast grade profile and seasonal operating considerations. All of Chapada’s gold production remains unencumbered and is to receive full market pricing.

  • Eagle: Nickel production guidance is modestly lower for 2022 and consistent for 2023, compared to the prior outlook3, while copper production guidance is consistent for 2022 and for 2023.

    Eagle’s nickel production is forecast to be 15,000-18,000 t in 2022. Nickel production is expected to be greater in the second half of the year primarily due to the forecast grade profile. Copper production guidance is 15,000-18,000 t for 2022, modestly weighted to the second half of the year on the forecast grade profile.

  • Neves-Corvo: Copper production guidance has increased for 2022 and 2023 compared to the prior outlook3, on refinement of the near-term mine plan positively impacting the forecast copper head grade. Zinc production guidance is modestly lower in 2022 and 2023 compared to the prior outlook3, on the metal recovery assumption for these years. Construction of the ZEP is progressing on schedule and on budget to be substantially complete by the end of 2021.

    Neves-Corvo’s copper production is forecast to increase to 33,000-38,000 t in 2022, modestly weighted to the first half of the year owing to the forecast grade profile. Zinc production is guided to increase over 65% in 2022, to 110,000-120,000 t, as production ramp up from the ZEP is completed in the first half of the year. With the ZEP contributing a full year of production at design throughput, 2023 zinc production is forecast to be 142,000-152,000 t.

  • Zinkgruvan: Zinc production guidance has increased 14% for 2022 and 11% for 2023, at the midpoint of the ranges compared to the prior outlook3, with minor refinement of operating plans forecasting higher head grades and improved metal recoveries. Copper production guidance for 2022 and 2023 is generally consistent with the prior outlook. Zinc production is forecast to increase in 2022 to 78,000-83,000 t.

_______________________________

3 Prior production outlook for 2022 & 2023 as announced by news release entitled “Lundin Mining Provides Operational Outlook & Shareholder Returns Update” dated November 30, 2020.

2022 Cash Cost Guidance4,5

Cash Cost4

20225

Copper

Candelaria

$1.55/lb6

Chapada

$1.60/lb

Neves-Corvo

$1.80/lb

Zinc

Zinkgruvan

$0.55/lb

Nickel

Eagle

$(0.25)/lb

  • Candelaria’s cash costs are expected to approximate $1.55/lb6 copper in 2022, similar to 2021 levels, after by-product credits. By-product credits have been adjusted for the terms of the streaming agreement.
  • At Chapada, cash costs are expected to approximate $1.60/lb copper in 2022, after unencumbered gold by-product credits. The forecast increase in Chapada’s cash costs reflects higher consumable costs and lower stockpile values. Effects of copper stream agreements are reflected in the realized copper revenue.
  • Eagle is expected to maintain the first quartile cash costs of negative $0.25/lb nickel in 2022, considering significant by-product copper credits. The forecast increase in Eagle’s cash costs is primarily a reflection of lower volumes.
  • At Neves-Corvo, cash costs for 2022 are expected to improve year-on-year to approximately $1.80/lb copper, after zinc and lead by-product credits. The forecast decrease in cash costs is primarily due to increased zinc production volumes.
  • Zinkgruvan’s cash costs for 2022 are expected to approximate $0.55/lb zinc after copper and lead by-product credits.

_________________________________

4 This is a non-GAAP measure. For historical comparatives see the Historical Non-GAAP Measure Comparatives section of this press release. Please also see the Management’s Discussion and Analysis for the year ended December 31, 2020, for discussion of non-GAAP measures.

5 2022 cash costs are based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (2022 – Cu: $3.90/lb, Zn: $1.15/lb, Pb: $0.90/lb, Au: $1,800/oz: Ag: $25.00/oz) foreign currency exchange rates (2022- €/USD:1.20, USD/SEK:8.20, CLP/USD:700, USD/BRL:5.10) and operating costs.

6 68% of Candelaria’s total gold and silver production are subject to a streaming agreement and as such cash costs are calculated based on receipt of $420/oz and $4.20/oz, respectively, on gold and silver sales in the year.

2022 Capital Expenditure Guidance

  • Capital expenditures in 2022 are forecast to be $630 million on a 100% basis, including deferrals from 2021. The majority of sustaining capital expenditures are for open pit waste stripping, underground mine development, and tailings storage facility (“TSF”) and water management works. The scope of these activities is generally consistent with prior plans, with expenditure guidance reflecting inflationary cost pressures on key inputs, in particular, fuel, electricity, freight, logistics and labour costs in some markets.

Capital Expenditures ($ millions)

20227

Sustaining Capital8

Candelaria (100% basis)

370

Chapada

65

Eagle

10

Neves-Corvo

95

Zinkgruvan

60

Total Sustaining Capital

600

Zinc Expansion Project (Neves-Corvo)8

30

Total Capital Expenditures

630

  • Candelaria: Capital expenditures at Candelaria in 2022 are forecast to total $370 million. Of this total, capitalized waste stripping expenditures are estimated to be $180 million, and underground mine development, including infill drilling and ramp works, is estimated to be approximately $90 million. Capital expenditures for mobile and mine equipment are estimated to be $25 million and $55 million for the continued build of the Los Diques TSF. Pebble crushing debottlenecking initiatives are estimated to be $15 million and forecast to be completed in 2022.
  • Chapada: Capital expenditures at Chapada in 2022 are estimated to total $65 million. This includes approximately $20 million for capitalized waste stripping, $20 million for TSF and water management systems and $10 million for mine and mobile equipment.
  • Eagle: Capital expenditures are estimated to total $10 million in 2022 composed of underground mine development, mobile equipment and mill water treatment plant sustaining initiatives.
  • Neves-Corvo: Capital expenditures are estimated to total $125 million in 2022 of which $30 million is expansionary capital to complete pre-production works on the ZEP and $95 million is forecast sustaining capital. Of the forecast sustaining capital expenditures, approximately $50 million is for underground mine development, including infill drilling, $30 million for TSF works and water initiatives and $15 million for mine and mobile equipment. Total ZEP pre-production capital cost estimate of $430M (€360M) remains unchanged.
  • Zinkgruvan: Sustaining capital expenditures are estimated to total $60 million in 2022, including approximately $35 million for underground development, including the Dalby orebody, and the remainder primarily for mine and mobile equipment, TSF works and other improvement initiatives.

________________________________

7 Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (2022- €/USD:1.20, USD/SEK:8.20, CLP/USD:700, USD/BRL:5.10).

8 This is a non-GAAP measure. For historical comparatives see the Historical Non-GAAP Measure Comparatives section of this press release. Please also see the Management’s Discussion and Analysis for the year ended December 31, 2020, for discussion of non-GAAP measures. Capital expenditures have been reported on a cash basis. Discrepancies may exist with other external reports which have been reported on an accrual basis.

2022 Exploration Investment Guidance

Exploration expenditures are planned to be $45 million in 2022. Approximately $40 million is to be spent supporting significant in-mine and near-mine targets at our operations ($15 million at Candelaria, $10 million at Chapada, $8 million at Neves-Corvo, $5 million at Zinkgruvan and $2 million at Eagle). The remaining $5 million is planned to advance activities on exploration stage and new business development projects.

Conference Call

The Company will hold a telephone conference call and webcast at 08:00am ET, 14:00 CET on Tuesday, November 23, 2021, to answer analyst and investor questions. Conference call details are provided below. Please dial in 15 minutes prior to the call start to ensure placement into the conference on time.

Call-in number for the conference call (North America): +1 647 788 4922
Call-in number for the conference call (North America Toll Free): +1 877 223 4471
Call-in number for the conference call (Sweden): 020 012 3522

To view the live webcast presentation, please log on using this direct link:
https://onlinexperiences.com/Launch/QReg/ShowUUID=33E372D6-219B-4957-98C2-4285AEF61753.

The presentation slideshow will also be available in PDF format on the Lundin Mining website www.lundinmining.com before the conference call.

A replay of the telephone conference will be available after the completion of the call through December 23, 2021.

Call-in numbers for the replay are (North America): +1 800 585 8367 or (internationally) +1 416 621 4642.

The passcode for the replay is: 2127909

A replay of the webcast will be available by clicking on the direct link above.

Normal Course Issuer Bid Renewal

Lundin Mining intends to renew its NCIB to purchase up to 63,761,024 common shares of the Company (“Common Shares”) on the Toronto Stock Exchange (the “TSX”). The Company intends to continue to utilize the NCIB from time to time to make opportunistic purchases to create shareholder value and actively manage the number of outstanding Common Shares.

In connection with the NCIB renewal, Lundin Mining intends to enter into an automatic repurchase plan with its designated broker to allow for the repurchase of Common Shares at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plan entered into with the Company’s broker will be adopted in accordance with applicable Canadian securities laws. The Company will determine parameters for such a plan based on market conditions, share price, best use of available cash, and other factors.

The NCIB renewal has been approved by the Company’s Board of Directors; however, it is subject to acceptance by the TSX and, if accepted, will be made in accordance with the applicable rules and policies of the TSX and applicable Canadian securities laws. Under the NCIB, Common Shares may be repurchased in open market transactions on the TSX and/or other Canadian exchanges, or by such other means as may be permitted by the TSX and applicable Canadian securities laws. The price that Lundin Mining will pay for Common Shares in open market transactions will be the market price at the time of purchase.

Pursuant to the NCIB renewal, which will commence following expiry of the current NCIB, it is expected that the Company will be able to purchase up to 63,761,024 Common Shares, representing 10% of the total outstanding Common Shares as of November 22, 2021, minus those Common Shares beneficially owned, or over which control or direction is exercised by the Company, the senior officers and directors of the Company and every shareholder who owns or exercises control or direction over more than 10% of the outstanding Common Shares, over a period of twelve months commencing after TSX approval. In accordance with TSX rules, any daily purchases, other than pursuant to a block purchase exception, on the TSX under the NCIB will be limited to a maximum 25% of the average daily trading volume on the TSX for the six months ended November 30, 2021. Any Common Shares that are purchased under the NCIB will be cancelled.

The actual number of Common Shares that may be purchased and the timing of such purchases will be determined by the Company.

Under the Company’s current NCIB that commenced on December 9, 2020 and which expires on December 8, 2021, the Company previously sought and received approval from the TSX to purchase up to 63,682,170 Common Shares. As of November 22, 2021, the Company has purchased 4,323,100 Common Shares under its current NCIB through open market transactions at a weighted average price of approximately C$11.25 per Common Share.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on November 22, 2021 at 18:00 Eastern Time.

Other Information

The Technical Information in this press release has been prepared in accordance with NI 43-101 and has been reviewed and approved by Jeremy Weyland, P.Eng., Acting Vice President, Technical Services of the Company, a “Qualified Person” under NI 43-101. Mr. Weyland has verified the data disclosed in this release and no limitations were imposed on his verification process.

Historical Non-GAAP Measure Comparatives

Cash Cost – Year Ended December 31, 2020

Operations

Candelaria

Chapada

Eagle

Neves-Corvo

Zinkgruvan

($ thousands, unless otherwise noted)

(Cu)

(Cu)

(Ni)

(Cu)

(Zn)

Total

Sales volumes (Contained metal in concentrate):

Tonnes

104,796

33,495

11,622

25,950

46,051

Pounds (000s)

231,035

73,844

25,622

57,210

101,525

Production costs

996,246

Less: Royalties and other

(42,695)

953,551

Deduct: By-product credits

(466,556)

Add: Treatment and refining charges

86,367

Cash cost

368,583

76,527

(39,260)

116,351

51,161

573,362

Cash cost per pound ($/lb)

1.60

1.04

(1.53)

2.03

0.50

Cash cost is non-GAAP measure. See the Management’s Discussion and Analysis for the year ended December 31, 2020, for discussion of non-GAAP measures.

Capital Expenditures – Year Ended December 31, 2020

($ thousands)

Sustaining

Expansionary

Capitalized
Interest

Total

Candelaria

216,018

216,018

Chapada

38,646

38,646

Eagle

11,259

11,259

Neves-Corvo

63,360

63,440

1,294

128,094

Zinkgruvan

36,946

36,946

Other

272

272

366,501

63,440

1,294

431,235

Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. Sustaining and expansionary capital expenditures are non-GAAP measures. See the Management’s Discussion and Analysis for the year ended December 31, 2020, for discussion of non-GAAP measures.

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company’s plans, prospects and business strategies; the Company’s guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company’s Responsible Mining Management System; the Company’s ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company’s projects; and the Company’s integration of acquisitions and any anticipated benefits thereof. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward-looking statements.

Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labor; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management’s experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; global financial conditions and inflation; changes in the Company’s share price, and volatility in the equity markets in general; volatility and fluctuations in metal and commodity prices; the threat associated with outbreaks of viruses and infectious diseases, including the COVID-19 virus; changing taxation regimes; reliance on a single asset; delays or the inability to obtain, retain or comply with permits; risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; exploration, development or mining results not being consistent with the Company’s expectations; unavailable or inaccessible infrastructure and risks related to ageing infrastructure; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; ore processing efficiency; community and stakeholder opposition; information technology and cybersecurity risks; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; regulatory investigations, enforcement, sanctions and/or related or other litigation; uncertain political and economic environments, including in Brazil and Chile; risks associated with the structural stability of waste rock dumps or tailings storage facilities; estimates of future production and operations; estimates of operating, cash and all-in sustaining cost estimates; civil disruption in Chile; the potential for and effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; risks related to the environmental regulation and environmental impact of the Company’s operations and products and management thereof; exchange rate fluctuations; reliance on third parties and consultants in foreign jurisdictions; climate change; risks relating to attracting and retaining of highly skilled employees; compliance with environmental, health and safety laws; counterparty and credit risks and customer concentration; litigation; risks inherent in and/or associated with operating in foreign countries and emerging markets; risks related to mine closure activities and closed and historical sites; changes in laws, regulations or policies including but not limited to those related to mining regimes, permitting and approvals, environmental and tailings management, labor, trade relations, and transportation; internal controls; challenges or defects in title; the estimation of asset carrying values; historical environmental liabilities and ongoing reclamation obligations; the price and availability of key operating supplies or services; competition; indebtedness; compliance with foreign laws; existence of significant shareholders; liquidity risks and limited financial resources; funding requirements and availability of financing; enforcing legal rights in foreign jurisdictions; dilution; risks relating to dividends; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; activist shareholders and proxy solicitation matters; and other risks and uncertainties, including but not limited to those described in the “Risk and Uncertainties” section of the Annual Information Form and the “Managing Risks” section of the Company’s MD&A for the year ended December 31, 2020, which are available on SEDAR at www.sedar.com under the Company’s profile. All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forwardlooking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.

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Nevada Sunrise Reports Geophysical Surveys Continue to Identify New Drill Targets at Kinsley Mountain Gold Project, Nevada

Nevada Sunrise Reports Geophysical Surveys Continue to Identify New Drill Targets at Kinsley Mountain Gold Project, Nevada
Canada NewsWire
VANCOUVER, BC, Nov. 23, 2021

TSXV: NEV
VANCOUVER, BC, Nov. 23, 2021 /CNW/ – Nevada Sunrise Gold Corp. (“Ne…

Nevada Sunrise Reports Geophysical Surveys Continue to Identify New Drill Targets at Kinsley Mountain Gold Project, Nevada

Canada NewsWire

TSXV: NEV

VANCOUVER, BC, Nov. 23, 2021 /CNW/ – Nevada Sunrise Gold Corp. (“Nevada Sunrise”, or the “Company“) (TSXV: NEV) is pleased to announce that its joint venture partner, New Placer Dome Gold Corp. (“New Placer Dome”) (TSXV: NGLD) has completed the first half of the 2021 induced polarization (IP)/resistivity geophysical surveys currently underway at the Kinsley Mountain Gold Project (“Kinsley Mountain”) in Nevada.Nevada Sunrise holds a 20.01% interest in the Kinsley Mountain joint venture, with New Placer Dome, as operator, holding a 79.99% interest.

The first phase of the 2021 IP/resistivity geophysical surveys infilled the area between the Western Flank Zone (“WFZ”) and Shale Saddle 2020 survey grids. There is a correlation between enhanced chargeability and drill-confirmed high-grade gold sulphide mineralization at the WFZ. At Shale Saddle, anomalous gold values were discovered on the periphery of a 500 by 250 metre untested chargeability anomaly.

Seven lines, totaling 30 line-kilometres, were completed during the first phase of surveying, extending the existing 2020 Shale Saddle grid north to connect and overlap with the south end of the WFZ grid (see Figure 1). Chargeability anomalies were detected on all lines, coincident with modelled Secret Canyon shale rocks, the main host of high-grade sulphide gold mineralization at the WFZ and Secret Spot. Drilling in 2020 by the Kinsley Mountain joint venture yielded high-grade gold sulphide intercepts from the Secret Canyon shale including: 10.2 g/t gold (Au) over 6.1 metres within a broader zone averaging 2.63 g/t Au over 38.1 metres in KMR20-017 at the WFZ; and 11.3 g/t Au over 2.9 metres within a broader zone grading 3.81 g/t Au over 11.6 metres in KMD20-006 at Secret Spot (see Nevada Sunrise news releases dated January 1, 2021 and April 28, 2021). Significantly, the two holes are separated by a 1.5 kilometer expanse of largely untested Secret Canyon stratigraphy.

The new chargeability anomalies occur within areas untested by previous drilling, with each line producing one or more potential drill targets. Several anomalies are spatially associated with major fault structures including the Kinsley NW Fault and the Transverse Fault, which correlate to WFZ and Secret Spot gold mineralization, respectively. Together with anomalies identified by the 2020 Shale Saddle survey, a broad north-south trending zone of elevated chargeability has been delineated over a strike length of 1.5 kilometres.

New Placer Dome reports that the next phase of surveying currently underway extends the 2020 WFZ grid to the east, covering the Upper Kinsley Ridge pits and Notch Peak breccias. Two lines, totaling 5 line-kilometres, are planned for the WFZ grid extension. An additional 45 line-kilometres are planned for the underexplored Kinsley North Range, covering a total area of 25 square kilometres of undrilled target host rocks.

Methodology and QA/QC

Seven IP/resistivity lines have been completed to date during 2021 infilling the area between the WFZ and Shale Saddle target. The lines are spaced 150 metres apart, with line lengths ranging from 3.6 to 4.0 kilometres. Data were collected using the Direct Current Resistivity, Induced Polarization (“DCIP”) method, on a 16-channel pole-dipole array with a dipole size (a-spacing) of 100 metres. A GDD GRx16 receiver and GDD 5000W-2400V-20A IP Tx model Tx4 transmitter was used. Raw data were loaded into GDD IP Post-Process software and Geosoft Oasis Montaj software for quality control and review. The reviewed data were used to produce pseudo section plots of apparent resistivity and apparent chargeability and were the input for the inversion. Inversions were completed using the UBC-GIF DCIP2D inversion codes. Each line of data was inverted independently. The resistivity and IP inversion is a two-step process. The resistivity inversion is run first, and this model is used in the chargeability inversion. Multiple inversions were completed for quality control.

Qualified Person

The scientific and technical information contained in this news release has been reviewed and approved by Robert M. Allender, Jr., CPG, RG, SME and a Qualified Person for Nevada Sunrise as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Allender has examined the information provided by New Placer Dome, which includes the data disclosed underlying the information and opinions contained herein.

About Nevada Sunrise

Nevada Sunrise is a junior mineral exploration company with a strong technical team based in Vancouver, BC, Canada, that holds interests in gold, copper, cobalt and lithium exploration projects located in the State of Nevada, USA.

The Company’s key gold asset is a 20.01% interest in a joint venture with New Placer Dome Gold Corp. (TSXV: NGLD) at the Kinsley Mountain Gold Project near Wendover, NV. Kinsley Mountain is a Carlin-style gold project hosting a National Instrument 43-101 compliant gold resource consisting of 418,000 indicated ounces of gold grading 2.63 g/t Au (4.95 million tonnes), and 117,000 inferred ounces of gold averaging 1.51 g/t Au (2.44 million tonnes), at cut-off grades ranging from 0.2 to 2.0 g/t Au 1.

1Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A., dated June 21, 2021 with an effective date of May 5, 2021 and prepared by Michael M. Gustin, Ph.D., and Gary L. Simmons, MMSA and filed under New Placer Dome Gold Corp.‘s Issuer Profile on SEDAR (www.sedar.com).

Nevada Sunrise has right to earn a 100% interest in the Coronado VMS Project, located approximately 48 kilometers (30 miles) southeast of Winnemucca, NV. The Company owns a 15% interest in the historic Lovelock Cobalt Mine and the Treasure Box copper properties, each located approximately 150 kilometers (100 miles) east of Reno, NV, with Global Energy Metals Corp. (TSXV: GEMC) holding an 85% participating interest. 

Nevada Sunrise owns 100% interests in the Jackson Wash and Gemini lithium projects, both of which are located in Esmeralda County, NV. The Company owns Nevada water right Permit 44411, located within the Clayton Valley basin near Silver Peak, NV, which is currently subject to a purchase and sale agreement with Cypress Development Corp., and water permit 86863, located in the Lida Valley basin, near Lida, NV.

FORWARD LOOKING STATEMENTS
This release may contain forwardlooking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur and include disclosure of anticipated exploration activities. Although the Company believes the expectations expressed in such forwardlooking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forwardlooking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forwardlooking statements whether as a result of new information, future events or otherwise.

Such factors include, among others, risks related to the interpretation and actual results of historical production at Kinsley Mountain, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Kinsley Mountain property as well as specific historical data associated with drill results from the property, technical information received from New Placer Dome Gold Corp., current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; failure of New Placer Dome Gold Corp. to complete anticipated work programs; labor disputes and other risks of the mining industry; delays due to pandemic; delays in obtaining governmental approvals, financing or in the completion of exploration, as well as those factors discussed in the section entitled “Risk Factors” in the Company’s Management Discussion and Analysis for the Nine Months ended June 30, 2021,  which is available under Company’s SEDAR profile at www.sedar.com.

Although Nevada Sunrise has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Nevada Sunrise disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The securities of Nevada Sunrise Gold Corporation have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to the account or benefit of any U.S. person.

SOURCE Nevada Sunrise Gold Corporation







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