VANCOUVER, BC / ACCESSWIRE / September 30, 2021 /( )(FRA:LBDP)(OTC PINK:KDKGF) (“Klondike Gold” or the “Company”) is announces that it plans to raise up to $3,500,000 in aggregate of flow-through funds (the “Flow-Through Placement”) and non-flow-through funds (the “Non-Flow-Through Placement) by way of a non-brokered private placement (the “Financing”).
The Flow-Through Placement will consist of the sale of flow-through shares at a price of $0.20 per flow-through unit with each unit consisting of one common share and one-half of one share purchase warrant.
The Non-Flow-Through Placement will consist of the sale of units at a price of $0.175 per unit, with each unit consisting of one common share and one-half of one share purchase warrant.
Each warrant will entitle the holder to purchase one common share at a price of $0.25 per common share for a period of 2 years from closing (the “Warrants”).
A finder’s fee on the gross proceeds of the Financing may be paid.
The Financing may close in tranches. The Company intends to use the proceeds from the Financing to continue exploration and development of the Company’s Yukon properties, as well as for general working capital.
The securities issued in connection with the Financing are subject to TSX Venture Exchange approval and all securities will be subject to a four month statutory hold period after the date of closing.
ON BEHALF OF
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.
Disclaimer for Forward-Looking Information
“This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Klondike in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Klondike’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required.”
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Copper Fox Provides Update on Schaft Creek 2021 Field Program
Calgary, Alberta–(Newsfile Corp. – October 27, 2021) – Copper Fox Metals Inc. (TSXV: CUU) (OTCQX: CPFXF) ("Copper Fox" or the "Company") is pleased…
Calgary, Alberta–(Newsfile Corp. – October 27, 2021) –( ) (OTCQX: CPFXF) (“Copper Fox” or the “Company”) is pleased to provide an update on the Schaft Creek 2021 metallurgical drilling program. The Schaft Creek project is managed through the Schaft Creek Joint Venture (“SCJV”) formed in 2013 between (“Teck”) (75%) and Copper Fox (25%) with Teck being the Operator. The Schaft Creek deposit is one of the largest undeveloped porphyry copper deposits containing significant gold, molybdenum and silver by-products in North America. Highlights of the 2021 metallurgical drilling program are set out below.
- The primary objective of the 2021 drilling program was to collect geometallurgical samples for additional metallurgical testwork.
- The drill holes were located to expand the metallurgical sampling coverage and better inform metal recoveries and comminution characteristics within the early part of the life of mine as set out in the Preliminary Economic Assessment (“PEA”) (see News Release dated September 20, 2021).
- A total of 835 metres were completed and logged for lithological, mineralogical, alteration and geotechnical data. Analytical results are pending.
- Metallurgical samples for comminution and grinding and flotation testwork will be processed in early 2022.
- The 2021 environmental baseline program was successfully completed.
Elmer B. Stewart, President and CEO of Copper Fox stated, “The recently announced PEA recommended additional metallurgical testwork as one of several project enhancements which, if successful, could increase the overall project valuation. The 2021 drilling program provides the SCJV with the opportunity to investigate metallurgical performance enhancement. To expedite completion of the drilling program, the SCJV mobilized two drill rigs to site, however, unfavorable weather conditions impeded the ability to complete the full program in a safe manner, and as such a decision was taken to conclude drilling activity. Analytical results for the drill holes will be released when they become available, and we look forward to the start of the metallurgical testwork.”
Elmer B. Stewart, MSc. P. Geol., President and CEO of Copper Fox, is the Company’s non-independent, nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed the scientific and technical information disclosed in this news release.
About Copper Fox
Copper Fox is a Tier 1 Canadian resource company focused on copper exploration and development in Canada and the United States. The principal assets of Copper Fox and its wholly owned Canadian and United States subsidiaries, being Northern Fox Copper Inc. and Desert Fox Copper Inc., are the 25% interest in the Schaft Creek Joint Venture with http://www.copperfoxmetals.com.on the Schaft Creek copper-gold-molybdenum-silver project located in northwestern British Columbia and the 100% ownership of the Van Dyke oxide copper project located in Miami, Arizona. For more information on Copper Fox’s other mineral properties and investments visit the Company’s website at
For additional information contact:
Lynn Ball at 1-844-464-2820 or 1-403-264-2820.
On behalf of the Board of Directors
Elmer B. Stewart
President and Chief Executive Officer
Neither 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.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable by use of the words “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “budgets”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the objective of the 2021 drilling program; expanding the metallurgical sampling coverage; 835 metres of drilling logged for various data sets; analytical results pending; metallurgical testwork being processed in early 2022; and a successful 2021 environmental baseline program.
In connection with the forward-looking information contained in this news release, Copper Fox and its subsidiaries have made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that Copper Fox has received is reliable and is based upon practices and methodologies which are consistent with industry standards. While Copper Fox considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.
Additionally, there are known and unknown risk factors which could cause Copper Fox’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: sampling for metallurgical testing purposes may not be completed as planned or at all; the drilling program may not return significant copper mineralization; the additional metallurgical testwork may not be completed as planned or at all; the need to obtain additional financing; uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals.
A more complete discussion of the risks and uncertainties facing Copper Fox is disclosed in Copper Fox’s continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Copper Fox disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/100913
PureGold Announces Third Quarter 2021 Production Results, Mine Leadership Update
VANCOUVER, British Columbia, Oct. 27, 2021 (GLOBE NEWSWIRE) — Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”), is pleased…
VANCOUVER, British Columbia, Oct. 27, 2021 (GLOBE NEWSWIRE) —( , LSE:PUR) (“PureGold” or the “Company”), is pleased to provide a third quarter 2021 update for its high-grade PureGold Mine in Red Lake, Ontario.
Production highlights and milestones for the third quarter include:
- Average daily throughput of 685 tpd for the quarter, a 35% increase compared to the second quarter driven by increased stope access and mill upgrades;
- Gold production of 9,260 ounces, a 54% increase compared to the second quarter driven by higher grades and increased tonnage;
- Average mill head grade of 4.8 g/t Au, a 15% increase on the second quarter;
- Average mill recovery rate of 94.7%, in line with expectations;
- Completion of mill upgrades to increase processing capacity, 1,000 tpd achieved for a number of days;
- Continued ramp-up of production from the East Ramp area of the mine, which has become a key production contributor and is expected to grow significantly over the coming quarters;
- Average ramp development rate 7.4 metres per day, as improving stope access and continuing to accelerate access to deeper, higher-grade zones of the mine, including 8-Zone, remains a top priority.
Mine Leadership Update
Maryse Bélanger, a Director of the Company, has stepped into the role of Mine General Manager at the PureGold Mine effective today and will be based in Madsen on a full time basis. In this role, Ms. Bélanger will oversee all aspects of the day-to-day operations of the PureGold Mine. Maryse is a widely respected senior mining executive with decades of experience and a track-record of successfully leading the construction, commissioning, ramp-up and operation of several mines globally. Her previous roles include President & CEO of and President, Director & COO of Atlantic Gold, where she successfully guided the company in taking its Touquoy Mine in Nova Scotia from construction to commissioning, ramp-up and full production, through to its eventual acquisition by St. Barbara for $722M. She also served as CEO & Managing Director of Mirabela Nickel Ltd. where she is credited with the successful turnaround of the Santa Rita mine in Brazil during a period of extremely low metal prices. From 2009 to 2014, Maryse was a senior executive with Goldcorp where she was ultimately appointed Senior Vice President, Technical Services.
Darin Labrenz, President & CEO of PureGold, commented, “The third quarter was a strong operational quarter for the PureGold Mine with quarter-over-quarter improvements in ore production, underground development rates, and mill head grades. We expect mill throughput and mill head grades to continue trending positively through the end of 2021 and into 2022 as ongoing accelerated development and definition drilling programs continue to open up access and build inventory in both the East Ramp and Main Ramp areas of the mine. Underground drilling continues to confirm the high-grade nature of this deposit and we are excited by what lies ahead.” He continued, “I am delighted to have Maryse joining our local leadership team in operations on a day-to-day basis. Maryse’s extensive global experience both as a corporate executive and a mine operator, with a focus on streamlining organizations and driving cost performance, will be a great asset to PureGold. Her decades of hands-on global mining experience and a progressive approach to mining placing a high priority on safety, sustainability, and accountability, is an excellent addition to the PureGold team. I am confident that Maryse is the right leader to guide the PureGold Mine through its next phase of growth.”
Several key upgrades were completed at the milling facilities during the third quarter including the installation of interstage screens on each of the six CIP tanks, installation of a trommel screen on the SAG mill discharge, and several pump upgrades. These upgrades have increased the steady-state milling capacity by 25% from 800 tpd to 1,000 tpd. Significant progress was made on permit amendments to increase annual ore production limits from 292,000 tonnes (800 tpd) to 360,000 tonnes (1,000 tpd) in the quarter, and final approval of the amendment is on track to be received well in advance of the current limit becoming a constraint on production.
Ramp Development Update
Development of the Main Ramp averaged 4.7 metres per day in the third quarter. The Main Ramp remains the critical path to 8-Zone access and drilling. As of September 30, the Main Ramp was at a depth of approximately 420 metres below surface and is expected to reach approximately 490 metres vertical depth by the end of 2021. The Company is evaluating opportunities to continue developing the Main Ramp at an accelerated rate into 2022 to further expedite 8-Zone access.
East Ramp Update
East Ramp development averaged 2.7 metres per day in the quarter as development activities in the East Ramp area of the mine were split between ramp development and lateral development. The first stopes were mined from the East Ramp area of the mine early in the third quarter. To date, a total of 6,290 tonnes of stope ore has been mined at a grade of 9.0 g/t gold. The next block of stopes to be mined beginning in Q4 2021 is under development with sill development currently underway on three levels. Sill development is showing exceptional continuity of high-grade gold mineralization, with the 1420 sill returning approximately 64 lateral metres grading 7.4 g/t gold, significantly longer and higher grade than what was initially modelled. Recent drilling in the area also indicates strong potential for stope expansion along strike and to depth, beyond the currently defined reserve stopes. These East Ramp area stopes currently under development represent a key growth opportunity for the PureGold Mine in Q4 2021 and into 2022.
8-Zone Drilling Update
The Company has designed a phase one 18-hole drill program to target the high-grade 8-Zone with drills to be positioned in a drill bay off the Main Ramp at a vertical depth of approximately 400 metres. The goal of this initial 8-Zone drilling program is to upgrade 8-Zone mineral resources ahead of planned mining in 2024 and to explore possible extensions of 8-Zone. The Company will provide further updates following commencement of the 8-Zone drilling program.
Mineral Resource Update
An updated Mineral Resource Estimate for the PureGold Mine including satellite deposits Wedge, Russet South and Fork is expected to be completed in Q4 2021. Following completion of the updated resource estimate, an updated Technical Report is expected to be completed including an updated Mineral Reserve. Expected timing for the updated Technical Report is H1 2022.
Updated Production Outlook
For the first three quarters of 2021, accelerated ramp development and definition drilling have been successful in opening up the underground mine which, in turn, has driven steady improvements in throughput and grade year to date. The Company is confident that these programs will continue to deliver steady improvements going forward, though the forecasted pace of ramp-up has been revised based on trends observed to date. As such, the Company is targeting a production rate of approximately 600-700 tpd at an average head grade of 5.5-6.5 g/t Au for the fourth quarter of 2021 and expects to continue ramping up both throughput and mill head grade toward the mine’s full capacity by the end of Q1 2022. The Company now expects to sustain 1,000 tpd by mid-2022.
As of September 30, 2021, the Company held approximately $24 million in cash. The Company has drawn US$85 million to date on its credit facility with Sprott Resource Lending.
Qualified Persons and 43-101 Disclosure
Ken Donner, P. Eng., Vice President, Operations for the Company, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 (“NI 43-101”) and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.
PureGold is a growth company, located in the very heart of Red Lake, Canada. Our objective is pure and simple. To develop a highly-profitable long life gold mining company, becoming Canada’s next iconic gold producer. Our plan is very disciplined, very methodical and financially sound. To expand organically, and develop PureGold’s multi-million ounce high-grade gold asset incrementally, step-by-step, using a phased mining development plan to deliver maximum return.
- For further information, see the technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit Red Lake, Ontario, Canada” with an effective date of February 5, 2019, and dated July 5, 2019 (the “Feasibility Study”), for further information please see www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
Adrian O’Brien, Director, Marketing and Communications
Non-IFRS Financial Performance Measures
The Company has included certain non-IFRS measures in this new release. Refer to the Company’s MD&A for an explanation of non-IFRS measures. The Company believes that these measures, in addition to measures prepared in accordance with International Financial Reporting Standards (“IFRS”), provide readers with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are 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. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to PureGold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address proposed timing of development plans for the PureGold Mine complex, timing of expected production, potential for accelerating development of the two main ramps, potential for advancing the amount and timing for higher grade ore, potential for additional resources and expansion of known deposits and potential for making new discoveries and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of PureGold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Pure Gold Red Lake Mine complex; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration and development activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 31, 2021 in the section entitled “Risk Factors”, under PureGold’s SEDAR profile at www.sedar.com.
Although PureGold 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. PureGold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
Osisko Metals Outlines Significant Reduction in Dewatering Requirements at Pine Point
MONTREAL, Oct. 27, 2021 (GLOBE NEWSWIRE) — Osisko Metals Incorporated (the "Company" or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51)…
MONTREAL, Oct. 27, 2021 (GLOBE NEWSWIRE) — ; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to provide positive results from the ongoing hydrogeological modelling and its application to dewatering costs at the Pine Point Project, located in the NWT, Canada. A new 3D hydrogeological model was created and has yielded significant reductions in the estimated water inflow rates into the proposed open pit and shallow underground mines, relative to the estimates in the July 2020 PEA study. Reduction in dewatering costs was estimated for a portion of the project, specifically in a sub-zone of the Main Zone known as the C1 Cluster, which includes, potentially, three open pit and two underground production areas.(the “Company” or “Osisko Metals“) (
- New data confirms that underground water flow at Pine Point is preferentially controlled by subvertical structural discontinuities such as fracture zones or low-displacement faults, with little evidence for significant ground water flow from formational aquifers in either the Sulfur Point or Pine Point Formations.
- Potential for significant reductions in Operating and Sustaining Capital Expenditures associated to dewatering over the Life of Mine (“LOM”) in the 2020 PEA economic model for the Pine Point project.
- Q1 2022 PEA Update will incorporate the new 3D hydrogeological model, dewatering volume estimates and all associated cost reductions.
The cost reductions are achieved by the aggregate effect of dewatering across all six production areas in the C1 Cluster; since dewatering in the deepest area will reduce the amount of ground water to be extracted from adjacent production areas. The ultimate objective is to focus on a given cluster to maximize mining efficiency and thereby reduce the volumes of water to manage. The integrated mining and hydrogeological modelling will be an iterative process. As the 2021 field data is being integrated into the model, the same analysis will then be applied to all ten pit clusters on the project. The results will be included in the PEA Update scheduled for release in Q1 2022.
Robert Wares, Chairman & CEO, commented: “The 2021 hydrogeological modelling confirms that discrete faults, and not continuous formational aquifers, control water inflow in the mineralized horizon at Pine Point. This is very different from aquifer models used in the 2020 PEA, which resulted in very expensive life-of-mine dewatering estimates. Stated simply, managing water influx along discrete zones is much simpler and cheaper than managing an entire aquifer, and the C1 Cluster cost analysis demonstrates this. These results hopefully eliminate, once and for all, investor concerns that water management at Pine Point would be unwieldy. I wish to congratulate the technical team alongside our consultants for this significant de-risking milestone.”
Jeff Hussey, President & COO, commented: “The hydrogeological analysis required the use of the Company’s project scale 3D geological modeling developed after three years of data recovery, analysis and re-interpretation. This 3D hydrogeological modelling process is being applied for the first time at Pine Point and we are rapidly seeing highly encouraging results. We will now refine both the hydrogeological model and, more importantly, the mining plan. We believe we will be able to achieve lower dewatering rates than historically experienced through better mine sequencing using the cluster strategy within the Life-of-Mine plan that is being integrated with the new hydrogeological modelling results.”
Details of 2021 Hydrogeological Work
A total of 25 of 31 water wells were surveyed with Profile Tracer Testing (“PTT”), consisting of mixing a tracer in the borehole without inducing any stress, followed by monitoring the tracer dilution within the same hole. This allows for accurate identification of water-bearing sources, including structural discontinuities, and their flow characterization.
PTT results continue to indicate that the groundwater flow is preferentially controlled by discrete discontinuities (i.e., faults and or fracture zones) with insignificant inflow from formational aquifers, including the dolomitized Sulfur Point Formation that hosts most of the zinc and lead Mineral Resources at Pine Point. Locally, high-grade mineralization within porous dolomitized rocks is associated to inflow since Prismatic high-grade deposits are also associated to the same structural discontinuities discussed above.
This represents a significant shift from previous interpretations of underground water flow modelling at Pine Point, which was almost exclusively based on formational aquifer flow within the Sulfur Point Formation and/or the underlying stratigraphy. The water is mainly associated to fault structures, therefore localized water well emplacement around these structures will be more effective and are a far less costly water management strategy.
The next step is to complete the same analysis for the other Clusters across the Pine Point project and confirm the overall reduction in operating costs and sustaining CAPEX. The C1 Cluster results remain representative of the potential cost savings but the final reduction for the entire project has yet to be determined from ongoing work.
Hydro-Ressources Inc. (“HRI”) started working on the model in Q1 2021, defining the hydrogeology at Pine Point, using the Company’s 3D geological model, LIDAR topographical data, and GIS database to target hydrogeological testing and investigations to better characterize water flow at Pine Point. Historical holes are also being used for testing where possible. The testing methodologies include state-of-the-art measurement systems, such as Profile Tracer Tests, slug tests, injection tests, velocity flow profiles, water samples and chemistry profiles, and pump test analyses, among others.
Initially, the Company and HRI compiled existing hydrogeological reports, reference papers, and used the 3D Geological model interpreted from historical and recent drill logs to define the stratigraphic boundaries, including the Sulfur Point Formation, the main host of Tabular mineralization at Pine Point. A structural analysis using drone surveys of Cominco Ltd. era open pits was also used to interpret lineaments from different data sources (Magnetic survey, LIDAR, aerial photographs, etc.) and these suggest where the structural discontinuities may be located.
C1 Cluster Dewatering Overview
Within the 6X6 kilometre area used for the C1 Cluster model domain, there are 4 historical open pits with measured historical water inflow rates based on Stevenson (1984). The first step was to calibrate the new hydrogeological model to simulate the inflow rates into the historical open pits listed below.
Table 1: Hydrogeological model calibration results
Open Pit ID
|Simulated K Values
The model was calibrated using retro-engineering techniques to estimate historical inflow measurements to enable more precise forecasting. These simulated K values are quite similar to the observed K values in surrounding test holes that were recently measured (K Values ranged from 2.3e-5 to 5.9e-5).
Once the calibration was completed, inflow rates were simulated in steady state conditions for all open pits individually within Cluster C1, with no interference from the other pits. The following table illustrates the results compared to the previous individual inflow rate analysis done in 2020.
Table 2: Hydrogeological open pit flow rates
|Open Pit ID||Individual Inflows
|Inflows Current HRI Study
The total inflow into individual mining areas was estimated in 2020 at 735,304 m3/d, while the current study estimates 403,079 m3/d. This represents a reduction of 46% of the estimated inflow rates for open pits and underground mines included in Cluster C1.
A three year mine plan was prepared byand used by HRI for the hydrogeological modelling of Cluster C1. Monthly production rates were provided to simulate inflow rates while maintaining water levels at 15m below the operational bench elevations. The evolution of the inflow per mine is illustrated in the graph below.
Figure 1: Flow Rates versus Time for Cluster C1
The peak of inflow occurs in Month 28 with an inflow of 174,000 m3/d. The average inflow is estimated at 150,000 m3/d during operations for the period modelled versus 400,000 m3/d using the 2020 PEA mine schedule. M67 and LG65(UG) are the main contributors of water, affecting the piezometric surfaces in the surrounding environment, reducing inflow in the other proposed open pit mines in the Cluster C1 domain model.
This new C1 Cluster mining strategy combined with the updated hydrogeological model reduced the estimated inflow rates by an aggregate 63% when compared to mining them individually. This illustrates the importance of the Cluster strategy for mining open pits together as a group to reduce dewatering volumes during mining operations by using appropriate field data acquisition and simulation methods.
Considering that the inflow rate is estimated to be 10,800m3/d per well, it is possible to define the number of wells to be installed for each open pit within Cluster C1. The following graph shows the number of required wells over time for the C1 Cluster:
Figure 2: Estimated number of dewatering wells for Cluster C1 over time
Based on this analysis, dewatering efforts will be initially focused around the M67 pit with a total of 16 strategically located operating wells being required during the 3-year Cluster 1 production period. This compares to 66 wells used in the 2020 PEA for dewatering demand for production from the same sources.
The M67 pit is located at an elevation of 215m amsl, and the bottom of the open pit is at 130m amsl where an additional 15m margin was applied. The maximum required head is 100m (140psi) for free discharge to surface. At 70% pumping efficiency, 250HP pumps would be used in each 400m diameter well.
Hydrogeological modelling enhancements will be an iterative process going forward using the Feflow Version 7 software. This ongoing modelling will help to optimize the Company’s strategy to pump less water and use less energy.
These results will then be included in a Site Wide Water model that will include surface water models and will be used for Environmental Assessment purposes as well as the Q1 2022 PEA Update and the upcoming Feasibility Study.
Corporation is also supporting the project as the Company’s internal design engineers that will integrate the hydrogeological results into the new LOM plan that will be qualified for the Q1 2022 PEA Update.
Mr. Michael Verreault P.Eng. MSc, will be acting as the Qualified Person for Osisko Metals regarding hydrogeological work. He is a Professional Geological Engineer with a Master’s degree in Hydrogeology, and he is responsible for the technical data reported in this news release.
About Osisko Metals
is a Canadian exploration and development company creating value in the base metal space. The Company controls one of Canada’s premier past-producing zinc mining camps, the Pine Point Project, located in the Northwest Territories for which the 2020 PEA has indicated an after-tax NPV of $500M and an IRR of 29.6%. The Pine Point Project PEA is based on current Mineral Resource Estimates that are amenable to open pit and shallow underground mining and consist of 12.9Mt grading 6.29% ZnEq of Indicated Mineral Resources and 37.6Mt grading 6.80% ZnEq of Inferred Mineral Resources. Please refer to the technical report entitled “Preliminary Economic Assessment, Pine Point Project, Hay River, North West Territories, Canada” dated July 30, which has been filed on SEDAR. The Pine Point Project is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure, paved highway access, and has an electrical substation as well as 100 kilometres of viable haulage roads already in place.
The current Mineral Resources mentioned in this press release conform to NI43-101 standards and were prepared by independent qualified persons, as defined by NI43-101 guidelines. The abovementioned Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and grade of the reported Inferred Mineral Resources are conceptual in nature and are estimated based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological grade and/or quality of continuity. Zinc equivalency percentages are calculated using metal prices, forecasted metal recoveries, concentrate grades, transport costs, smelter payable metals and charges (see respective technical reports for details).
For further information on this press release, visit www.osiskometals.com or contact:
Robert Wares, CEO
Email: [email protected]
Cautionary Statement on Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance are not statements of historical fact and constitute forward-looking information. This news release may contain forward-looking information pertaining to the Pine Point Project, including, among other things, the results of the PEA and the IRR, NPV and estimated costs, production, production rate and mine life; the expectation that the Pine Point Project will be an robust operation and profitable at a variety of prices and assumptions; the expected high quality of the Pine Point concentrates; the potential impact of the Pine Point Project in the Northwest Territories, including but not limited to the potential generation of tax revenue and contribution of jobs; and the Pine Point Project having the potential for mineral resource expansion and new discoveries. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management, in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions about: favourable equity and debt capital markets; the ability to raise additional capital on reasonable terms to advance the development of its projects and pursue planned exploration; future prices of zinc and lead; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; operating conditions being favourable; political and regulatory stability; the receipt of governmental and third party approvals; licences and permits being received on favourable terms; sustained labour stability; stability in financial and capital markets; availability of equipment; and positive relations with local groups. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information are set out in the Company’s public documents filed at www.sedar.com. 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
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