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Alpha Copper Announces Signing of Option Agreement, Unit Financing, Investor Relations Engagement and Stock Option Grant

VANCOUVER, British Columbia, Jan. 14, 2022 (GLOBE NEWSWIRE) — Alpha Copper Corp. (the “Company”) (CSE: ALCU) is pleased to announce that it has…

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VANCOUVER, British Columbia, Jan. 14, 2022 (GLOBE NEWSWIRE) — Alpha Copper Corp. (the “Company”) (CSE: ALCU) is pleased to announce that it has entered into an option agreement (the “Agreement“) with Northwest Copper Corp. (“Northwest”) and Eastfield Resources Corp. (“Eastfield”) whereby the Company was provided an option to acquire a 100% interest in the Okeover Copper Project, located in British Columbia (the “Property“).

The Property (copper-molybdenum) consists of 12 contiguous legacy and cell mineral claims located in the Vancouver Mining Division of southwestern British Columbia, 25 kilometers north of Powell River and 145 kilometers northwest of Vancouver. Collectively, the claims cover an area of approximately 4,614 hectares.

Pursuant to the Agreement, the Company may acquire up to a 100% interest in the Property by issuing common shares in the capital of the Company (“Common Shares“) to Northwest and incurring certain expenditures on the Property, all as summarized below:

  (a) by issuing Common Shares to Northwest, as follows:
     
    (i) Common Shares with a value of $250,000 on the effective date of the Agreement;
       
    (ii) additional Common Shares with a value of $500,000, on or before the date which is twelve (12) months from the effective date of the Agreement;
       
    (iii) additional Common Shares with a value of $750,000, on or before the date which is twenty-four (24) months from the effective date of the Agreement; and
       
    (iv) additional Common Shares such that Northwest holds 10% of the Company’s issued and outstanding common shares on the date prior to such issuance, on or before the date which is thirty-six (36) months from the effective date of the Agreement;
       
  (b) by incurring expenditures on the Property of not less than $5,000,000, as follows:
     
    (i) $500,000, on or before the date which is twelve (12) months from the effective date of the Agreement;
       
    (ii) an additional $1,500,000, on or before the date which is twenty-four (24) months from the effective date of the Agreement; and
       
    (iii) an additional $3,000,000, on or before the date which is thirty-six (36) months from the effective date of the Agreement.
       

The Agreement also contains a provision, effective upon the Company acquiring a 100% interest in the Property, for a 2% net smelter royalty in favour of Northwest. Half of the net smelter royalty, thereby reducing the net smelter royalty to 1%, can be bought back by the Company paying the sum of $1,000,000 to Northwest at any time prior to commencing commercial production on the Property. The Property is subject to an underlying 2.5% net smelter royalty which may be repurchased in its entirety in consideration of $2,000,000 on commencing commercial production on the Property.

The Agreement, including all issuances of securities contemplated thereunder, is subject to the certain customary closing conditions. All Common Shares to be issued in connection with the Agreement will be subject to a statutory hold period of four months and a day from the date of issuance.

Financing

The Company is also pleased to announce that it intends to complete a non-brokered private placement (the “Private Placement”) of flow-through units (each, an “FT Unit“) of the Company at $0.65 per FT Unit for gross proceeds of up to $1,500,000 and non-flow-through units (each, an “NFT Unit“) of the Company at $0.50 per NFT Unit for gross proceeds of up to $6,000,000.

Each FT Unit will consist of one Common Share, issued on a flow-through basis pursuant the Income Tax Act (Canada), and one common share purchase warrant (each, a “Warrant“). Each Warrant will be exercisable at $1.00 per share for a period of two years from the date of issuance. Each NFT Unit will consist of one common share and one Warrant. All securities issued under the Private Placement will be subject to a four-month and one-day statutory hold period.

Finder’s fees may be payable in accordance with the policies of the Canadian Securities Exchange. The Company intends to use the gross proceeds of the Private Placement to fund certain of its obligations under the Agreement and for general administrative and working capital purposes.

Investor Relations

The Company is also pleased to announce that is has engaged Invictus Investor Relations Inc., based out of Vancouver, BC, in order to assist with the Company’s investor relations programs over the coming year. The engagement is for a period of one year and carries a monthly fee of $7,500.

Stock Options

The Company announces that it has granted incentive stock options (“Options“) to purchase a total of 1,900,000 Common Shares at an exercise price of $0.60 per share to certain directors, officers, and employees of the Company in accordance with the provisions of its stock option plan. The Options will expire two years from the date of grant.

ON BEHALF OF THE BOARD OF DIRECTORS

Darryl Jones

Darryl Jones
CEO and Director
604-788-9533

Further information about the Company is available under its profile on the SEDAR website, www.sedar.com.

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

Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward‐looking statements”. Forward‐looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.

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Today’s News

Centamin PLC Announces Q4 2021 Report

PERTH, AUSTRALIA / ACCESSWIRE / January 19, 2022 / Centamin plc ("Centamin", "Group" or "the Company") (LSE:CEY)(TSX:CEE)QUARTERLY REPORTfor the three…

PERTH, AUSTRALIA / ACCESSWIRE / January 19, 2022 / Centamin plc (“Centamin”, “Group” or “the Company”) (LSE:CEY)(TSX:CEE)

QUARTERLY REPORT
for the three months ended 31 December 2021

MARTIN HORGAN, CEO, commented: “The final quarter delivered what was a highly successful 2021, resulting in Centamin delivering annual gold production and costs at the midpoint of our guidance. 2021 has been characterised by solid delivery against our stated plans and completion of the Sukari Life of Asset study, confirming the high-quality and long life of the mine, in addition to identifying significant upside growth opportunities. Excellent progress was made against our key capital projects as we continue to invest in the future of our assets. We continued to improve our safety performance, beating our annual targets, as we strive to achieve a zero-harm workplace.

We have commenced 2022 with confidence and excitement and look forward to delivering on our clear roadmap to growing and unlocking further value from Sukari and our exploration portfolio, as outlined at the capital markets event on 8 December 2021.”

HIGHLIGHTS

2021 guidance delivered

  • Strong safety performance: Q4 Lost Time Injury Frequency Rate (“LTIFR”) of 0.31 per one million site-based hours worked; FY LTIFR of 0.46, 28% better than the annual target of 0.65 as the Company strives to create a zero-harm workplace
  • Annual gold production delivered in line with guidance (400,000-430,000 ounces): Gold production of 107,549 ounces (“oz”) for the three months to 31 December 2021 (“Q4”), totalling 415,370 oz for the twelve months of 2021 (“FY”) and at the midpoint of guidance
  • Strong revenue generation as well as elevated gold sales receivables: Q4 revenue of US$183 million, generated from gold sales of 99,936 oz at an average realised gold price of US$1,828/oz sold; FY revenue of US$733 million, generated from gold sales of 407,252 oz at an average realised gold price of US$1,797/oz sold
  • Annual costs delivered in line with guidance: Q4 cash costs of US$972/oz produced and all-in sustaining costs (“AISC”) of US$1,256/oz sold; FY cash costs of US$859/oz produced and all-in sustaining costs (“AISC”) of US$1,211/oz sold were delivered at the midpoint of annual guidance (Cash costs: US$800-900/oz produced; AISC: US$1,150-1,250/oz sold)
  • Excellent progress on essential capital projects: Q4 capital expenditure (“capex”) of US$86 million; FY capex of US$233 million, exceeding the annual guidance of US$225 million due to the waste-stripping outperformance
  • Exploration activities on schedule: Q4 exploration spend of US$6 million advancing the Doropo and ABC projects in Côte d’Ivoire; FY exploration spend was US$14 million and US$3 million below the annual guidance
  • Strong balance sheet with no debt and no hedging: Cash and liquid assets of US$257 million, as at 31 December 2021
  • No material impacts due to COVID-19: Full COVID-19 protocols remain in place, and supply chains and gold shipments have not been materially impacted
  • The Company will publish its full year 2021 financial results and propose the final dividend in mid-March 2021.

OUTLOOK

2022 guidance unchanged

  • Gold production of 430,000 to 460,000 oz
  • Cash costs of US$900-1,000/oz produced
  • AISC of US$1,275-1,425/oz sold
  • Capex of US$215 million, including US$25 million of deferred solar and paste-fill plant construction expenditure from 2021
  • Exploration expenditure is expected to be US$25 million, predominantly focussed on the Doropo Pre-Feasibility Study (scheduled for completion in H2 2022), ABC fieldwork and drill testing, and commencing exploration on the Egyptian Eastern Desert 3,000km2 highly prospective landholding.

RESULTS SUMMARY

Q4 2021

Q4 2020

% Δ

FY 2021

FY 2020

% Δ

SAFETY
LTIFR (1m hours)

0.31

0.89

(65%)

0.46

0.84

(45%)

OPEN PIT
Total material mined (kt)

30,397

21,324

43%

110,222

79,774

38%

Ore mined (kt)

2,683

3,553

(24%)

12,391

15,656

(21%)

Ore grade mined (g/t Au)

0.93

0.74

26%

0.86

0.97

(11%)

UNDERGROUND
Ore mined (kt)

145

165

(12%)

739

625

18%

Ore grade mined (g/t Au)

4.97

3.66

36%

4.95

4.99

(1%)

PROCESSING
Ore processed (kt)

3,210

2,911

10%

11,916

11,913

0%

Feed grade (g/t Au)

1.11

0.86

29%

1.18

1.35

(12%)

Gold recovery (%)

87.0

88.6

(2%)

88.6

87.8

1%

Gold production (oz)

107,549

67,996

58%

415,370

452,320

(8%)

COST & SALES
Gold sold (oz)

99,936

79,535

26%

407,252

468,681

(13%)

Cash costs (US$/oz produced)

972

1,080

(10%)

859

719

20%

AISC (US$/oz sold)

1,256

1,613

(22%)

1,211

1,036

17%

Realised gold price (US$/oz)

1,828

1,887

(3%)

1,797

1,766

2%

Revenue (US$m)

183.0

150.3

22%

733.3

828.7

(12%)

CAPEX (US$m)

86.1

47.9

80%

233.0

138.4

68%

WEBCAST AND CONFERENCE CALL

The Company will host a webcast and conference call today, Wednesday, 19 January at 08.30 GMT to discuss the results, followed by an opportunity to ask questions.

Webcast link: https://www.investis-live.com/centamin/61d46777b81c471200d87831/tnye

Dial-in telephone numbers:

United Kingdom (and all other locations) +44 (0) 203 936 2999

United States +1 646 664 1960

Participation access code: 432466

HEALTH AND SAFETY

Operational safety has been a key focus across the Group. Prioritised management oversight and empowering employees to be safety leaders has resulted in an improved safety performance, beating our annual targets. In Q4, there was one lost time injury (“LTI”) (FY: five) therefore resulting in a lost time injury frequency rate (“LTIFR”) of 0.31 per 1,000,000 site-based hours worked (FY: 0.46), representing a 65% improvement compared to the corresponding quarter in 2020 (“YoY”). The total recordable injury frequency rate (“TRIFR”) for Q4 was 1.57 per one million site-based hours worked (FY: 3.01), a 79% improvement YoY.

Throughout 2021 Centamin experienced no material sales or supply chain disruptions due to COVID-19 at Sukari or the exploration projects in West Africa. Full COVID-19 protocols remain in place.

SUKARI GOLD MINE, EGYPT

(Q4 2021 vs Q4 2020)

Production

Sukari gold production for the quarter was 107,549 oz, a 58% improvement YoY, due to mining higher grade from the open pit and underground.

Open Pit Mining

Total material moved (waste and ore) of 30.4Mt (FY: 110.2Mt), a 43% increase YoY, driven by scheduled increased material movement and improved operating efficiencies and productivities.

Total open pit waste material mined for the quarter was 27.7Mt (FY: 97.8Mt), a 56% increase YoY, driven by the successful execution of the accelerated waste-stripping programme, improving the long-term flexibility and stability of the open pit. The strip ratio for the quarter was 10.3:1 (waste:ore) (FY: 7.9:1).

Open pit ore mining in Q4 continued to focus on the Stage 5 North and Stage 4 West areas. Total open pit ore mined for the quarter was 2.7Mt (FY: 12.4Mt), a 24% reduction YoY, at an average mined grade of 0.93 grams of gold per tonne (“g/t Au”) (FY: 0.86 g/t Au), a 26% improvement YoY, driven by scheduled higher grades delivered from Stage 4 West.

Underground Mining

Total material mined (waste and ore) was 205kt (FY: 1.1Mt), a 29% reduction YoY. Total ore mined was 145kt (FY: 739kt) at an average combined (stoping and development) grade of 4.97g/t Au (FY: 4.95 g/t). This represented a 12% reduction in ore tonnes YoY and a 36% improvement in grade YoY. Tonnes mined were below schedule due to issues driven by contractor staffing levels impacted by COVID-19 travel restrictions. This was partially offset by improved mining flexibility resulting in better than scheduled mined grades.

The underground ore split was 86kt of ore mined from stopes, at an average grade of 6.46g/t Au, and 59kt of ore mined from development, at an average grade of 2.79g/t Au.

The Company is on track to complete an assessment of the underground operating model imminently, including an independent contractor-mining tender process. The independently run process involved assessing several competitive contractor proposals and a cost-risk benefit analysis of both contractor-mining and owner-operator mining the underground operations.

Processing

The plant processed 3.2Mt of ore (FY: 11.9Mt), a 10% increase YoY, at an average feed grade of 1.11 g/t Au (FY: 1.18 g/t), a 29% improvement YoY.

The metallurgical gold recovery rate was 87.0% for the quarter (FY:88.6%), a 2% reduction YoY, reflecting mill feed contribution from low-grade stockpiles in the quarter. The focus on improving processing productivity and efficiencies through the plant upgrades resulted in better than scheduled annualised 2021 metallurgical recoveries.

During the quarter, the low-grade stockpiles were drawn down from 18.9Mt to 18.6Mt at 0.46g/t Au.

Capital Projects

Total capex in Q4 was US$86 million (FY: US$233m), which was an 80% increase YoY. Excellent progress was made in the quarter on key capital projects. The tailing storage facilities (TSF1 and TSF2), underground development and the waste stripping programmes were progressed ahead of schedule. The project development and construction of the solar project and paste fill plan both remained largely on track and scheduled for commissioning in Q3 and Q4 2022respectively although the slight delays in spend have resulted in US$25 million of capex deferred from 2021 to 2022.Solar project activities completed in the quarter included foundations for the battery storage facility, MV cable installation for the solar panel network and trenching for the LV cable installation. The paste fill plant earthworks were completed in the quarter.

In Q4, surface exploration on the 160km2 Sukari Mining Concession commenced with a prioritised 10,000m drilling programme, targeting potential satellite deposits to the Sukari processing facility. The programme is near completion and assay results are expected in Q1 2022.

SALES AND COSTS

Gold sales for the quarter were 99,936 oz (FY: 407,252 oz), a 26% improvement YoY. The average realised gold price for the quarter was US$1,828/oz (FY: US$1,797/oz), down 3% YoY. Revenues generated of US$183 million (FY: US$733m), increased by 22% YoY, driven by higher gold sales and marginally offset by lower realised gold price. At the end of the quarter, there was US$20 million gold bullion on hand due to the shipment of the final pour being after 31 December 2021.

Total cash costs of production were US$104.6 million for the quarter (FY: US$356.9m), a 42% increase YoY, with lower underground costs partially offsetting higher fuel prices and increased open pit costs due to more material moved. Unit cash costs of production were US$972/oz produced (FY: US$859/oz), a 10% reduction YoY.

Total all-in sustaining costs (“AISC”) were US$125.5 million for the quarter (FY: US$493.1m), a 2% reduction in YoY, as the open pit contractor waste-stripping programme outperformed. Unit AISC of US$1,256/oz sold (FY: US$1,211/oz), a 22% reduction in YoY costs, reflecting lower costs complimented by higher gold sales.

EXPLORATION PROJECTS

Total exploration expensed in Q4 was US$6.4 million, a 170% increase YoY, including the below key activities:

  • Doropo Project (Côte d’Ivoire) – US$5.8m spend – work was focussed on the PFS during the quarter with 22,862 metres (“m”) of RC completed as part of the infill drilling campaign and a further 7,329m of core drilling dedicated to the metallurgical and resource infill drilling programmes. By the end of the period, the RC infill programme at the Main Cluster of deposits was 65% complete with an anticipated completion during Q1 2022. In parallel, the Environmental and Social Impact Assessment (“ESIA”) work continued with stakeholder engagement, preliminary land use mapping, and detailed scopes of work defined for technical field studies that are scheduled to commence in Q1 2022.
  • ABC Project (Côte d’Ivoire) – US$0.4m spend – soil sampling has been completed over all three permits (1,200km²), which has delineated numerous new gold-in-soil anomalies. Soil anomalism has been confirmed southwards along the Lolosso structural corridor (which hosts the current Kona Mineral Resource[1]) within the new Windou permit over a strike length of 25km. Several other soil anomalies have also been delineated by soil sampling within the project permits. These are now being followed-up with an extensive trenching programme. Drill testing will follow during 2022.
  • Eastern Desert Exploration (Egypt) -programme preparations continued with logistical support preparations and remote data analysis and exploration programme planning completed.
  • Batie West Project (Burkina Faso) – asset held for sale – discussions are ongoing with the potential interested parties and the Burkinabe government, as we seek a mutually beneficial outcome.

FINANCIAL POSITION

Free Cash Flow

Under the terms of the Sukari Concession Agreement, the Egyptian government earned US$5.2 million in royalty payments (FY: US$21.7m) and received US$14.0 million in profit share payments during the quarter (FY: US$75.2m). After Sukari profit share distribution, Group exploration expenditure and corporate investing activities, Group free cash flow for the quarter was negative US$29 million (FY: negative US$5m), reflecting the peak growth capex quarter and impacted by US$20 million in unsold gold bullion on hand as at 31 December 2021.

Balance Sheet

Centamin is in a strong financial position, with net cash and liquid assets to US$257 million as at 31 December 2021. The Company remains unhedged and debt-free.

ABOUT CENTAMIN

Centamin is an established gold producer, with premium listings on both the London Stock Exchange and Toronto Stock Exchange. The Company’s flagship asset is the Sukari Gold Mine (“Sukari”), Egypt’s largest and first modern gold mine, as well as one of the world’s largest producing mines. Since production began in 2009 Sukari has produced circa 5 million ounces of gold, and today has a projected mine life of 12 years.

Through its large portfolio of exploration assets in Egypt and West Africa, Centamin is advancing an active pipeline of future growth prospects, including the Doropo project in Côte d’Ivoire, and over 3,000km2 of highly prospective exploration ground in the Egypt’s Arabian Nubian Shield.

Centamin practices responsible mining activities, recognising its responsibility to not only deliver operational and financial performance but to create lasting mutual benefit for all stakeholders through good corporate citizenship.

FOR MORE INFORMATION please visit the website www.centamin.com or contact:

Centamin plc
Alexandra Barter-Carse, Corporate Communications
+44 (0) 7700 713 738
[email protected]

Buchanan
Bobby Morse/Ariadna Peretz/James Husband
+ 44 (0) 20 7466 5000
[email protected]

ENDNOTES

Guidance

The Company actively monitors the developments of the COVID-19 pandemic and guidance may be impacted if the workforce or operation are disrupted.

Financials

Financial data points included within this report are unaudited.

Non-GAAP measures

This statement includes certain financial performance measures which are non-GAAP measures. These include Cash costs of production, AISC, Cash and liquid assets, and Free cash flow. Management believes these measures provide valuable additional information for users of the financial statements to understand the underlying trading performance. Definitions and explanation of the measures used along with reconciliation to the nearest IFRS measures are detailed in the Company’s 2020 Annual Report https://www.centamin.com/investors/results-reports/.

Exploration expenditure

Exploration expensed covers all exploration activities excluding the Sukari Concession Agreement.

Royalties

Royalties are accrued and paid six months in arrears.

Cash and liquid assets

Cash and liquid assets include cash, bullion on hand and gold sales receivables.

FORWARD-LOOKING STATEMENTS

This announcement (including information incorporated by reference) contains “forward-looking statements” and “forward-looking information” under applicable securities laws (collectively, “forward-looking statements”), including statements with respect to future financial or operating performance. Such statements include “future-oriented financial information” or “financial outlook” with respect to prospective financial performance, financial position, EBITDA, cash flows and other financial metrics that are based on assumptions about future economic conditions and courses of action. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “expected”, “budgeted”, “forecasts” and “anticipates”.” and include production outlook, operating schedules, production profiles, expansion and expansion plans, efficiency gains, production and cost guidance, capital expenditure outlook, exploration spend and other mine plans. Although Centamin believes that the expectations reflected in such forward-looking statements are reasonable, Centamin can give no assurance that such expectations will prove to be correct. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Centamin about future events and are therefore subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, there are a number of factors that could cause actual results, performance, achievements or developments to differ materially from those expressed or implied by such forward-looking statements; the risks and uncertainties associated with the ongoing impacts of COVID-19 or other pandemic, general business, economic, competitive, political and social uncertainties; the results of exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; currency fluctuations; changes in project parameters; future prices of gold and other metals; possible variations of ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; climatic conditions; political instability; decisions and regulatory changes enacted by governmental authorities; delays in obtaining approvals or financing or completing development or construction activities; and discovery of archaeological ruins. Financial outlook and future-ordinated financial information contained in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available. Readers are cautioned that any such financial outlook or future-ordinated financial information contained or referenced herein may not be appropriate and should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management’s best estimates and judgments at the date hereof, and represent, to the best of management’s knowledge and opinion, the Company’s expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. 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 information or statements, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the outbreak of COVID-19. Forward-looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

[1] 72Mt at 0.93g/t for 2.16Moz in Inferred Resources

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

SOURCE: Centamin PLC

View source version on accesswire.com:
https://www.accesswire.com/684521/Centamin-PLC-Announces-Q4-2021-Report

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Today’s News

K2 Year in Review

Vancouver, British Columbia–(Newsfile Corp. – January 18, 2022) – K2 Gold Corporation (TSXV: KTO) (OTCQB: KTGDF) (FSE: 23K) ("K2" or the "Company") is…

Vancouver, British Columbia–(Newsfile Corp. – January 18, 2022) – K2 Gold Corporation (TSXV: KTO) (OTCQB: KTGDF) (FSE: 23K) (“K2” or the “Company“) is pleased to provide a 2021 annual review of progress.

Highlights:

The two most significant advancements at Mojave in 2021 were a 50% increase in the gold footprint, and the discovery of large zones of copper and base metals on the western margins of the property.

  • The Mojave property in California is progressing to the drill stage. The next phase of proposed drilling was submitted to the Bureau of Land Management (“BLM”) and is progressing through the necessary review process. The Company has applied for 30 drill sites (approximately 10,000m) which will infill and extend the footprint of gold mineralization previously drilled at the Dragonfly and Newmont targets in October 2020. The results of the next drilling programme will be incorporated into the current database to provide a preliminary gold resource estimation of the Eastern Target Area which will incorporate the Dragonfly, Remi and Newmont targets.
  • Through a comprehensive exploration program, the Company identified nine more areas of gold mineralization on the Eastern Target Zone expanding the anomalous geochemical surface expression from four to six kilometers in continuous strike length, an increase of thirty percent.
  • The 2021 exploration program was also successful in beginning to understand extensive areas of copper mineralization at the Stega target on the western side of the property.
    • Samples of up to 14.2% copper with mineralization associated with locally anomalous gold and silver.
    • The current surface expression of the Stega Copper Zone is up to 250m in width, 1.8km in length, and is open to the N-NW.
  • The relationship between the recently discovered sediment hosted copper sampled at surface, and possible buried intrusives/porphyries (identified by recent VTEMTM) is unclear at this time but spatially there appears to be a distinct and direct relationship.
  • The 360 Ha Morning Star property adjacent to Mojave was optioned from a private vendor. The property consists of a combination of patented and unpatented mining claims, the majority of which are unpatented. The geology is similar to Mojave, however, more mapping and interpretation is required to fully understand the mineralization style. The property has a valid drill permit. Previous drilling in the 80’s and 90’s on the property intersected grades up 3.7g Au over 38m (this figure is considered historical, the core is still available for review but the assay certificates from drilling have not been located).
  • Over the course of 2021 the Company has been actively pursuing prospective gold properties in Nevada and other states in southwestern USA. News on potential property additions are expected to be released in Q1 and Q2 2022.

Steve Swatton, President and CEO of K2, commented: “2021 was a pivotal year for K2. As the US’s government departments adjusted to the expectations of the new administration, we continued to advance the Mojave property as per the BLM guidelines. Our strategy was to continue exploration at Mojave while actively looking for complementary properties in other regions of the southwest US. The discovery of significant copper in addition to gold at Mojave was a welcomed development, particularly in light of the announcements throughout the year from the State Department that the government would like to source more critical metals from domestic sources. We have identified several mineral properties in other states, and we expect to be announcing agreements on one or more other projects in the short term as we await the BLMs decision on the timing of permitted drilling at Mojave.”

Please CLICK HERE to view all figures related to this news release.

Summary of 2021 Highlights:

March 2021 – Positive decision letter of completion of documents for Phase 2 of drilling delivered to K2 by the BLM.

April 2021 – The Company announced that based on a comprehensive rock sampling program the mineralization in the area of previous drilling (by Newmont, BHP and K2) was extended to approximately 1 km at surface.

May 2021 – Further sampling in the Dragonfly zone returned gold values of up to 14.5 g/t gold and both the Newmont and Flores zones were extended at surface. In addition to the known gold zone of previous drilling the company discovered sediment hosted copper in a parallel zone approximately 3km to the west. Extensive sampling recovered samples of up to 14.2% Cu from the Stega zone.

June 2021 – Additional sampling at Stega revealed that the mineralization is zoned with a distinct Cu, Pb and Zn banding occurring adjacent to a gold zone. Both zones are pervasive along a distinct north-west fault and the mineralization extends for approximately 6km by 1km.

August 2021 – K2 signed an option agreement to acquire the Morning Star property (formerly known as the Cerro Gordo property) for certain cash payments, work commitments and a 3% NSR of which 1.5% can be purchased by the Company.

November 2021 – Results of additional soil, rock and select ionic leach samples confirmed and extended mineralization at 4 zones (Stega, Soda Canyon, Upland Valley and Gold Valley). This information combined with previous work lead to the conclusion that the mineralization at the Mojave property is district wide and occurs intermittently over 100km2.

December 2021 – Announced results of a heli-borne electromagnetic VTEMTM survey. The interpretation of the results is highly suggestive of at least 2 or more buried intrusives that may be the source of the fluids that transported the mineralization at Mojave.

Qualified Person

Jodie Gibson, P.Geo, Vice President of Exploration and a Qualified Person under National Instrument 43-101, has reviewed and approved the technical information on this release.

About K2

K2 is a member of the Discovery Group of companies and has option agreements on projects in SW USA and the Yukon. In the USA, the Company is represented by its 100% subsidiary, Mojave Precious Metals Inc. (“MPM”). The Company is focused on the Mojave property in California, a 5,830-hectare oxide gold project with base metal targets. The location of Mojave enables the Company to have year-round news flow on multiple previously recognized surface gold targets that have been successfully drilled in the past by majors BHP and Newmont. Besides affording immediate drill targets based on the Company’s soil data integrated with LiDAR and Worldview-3 data, the property also has undrilled locations with gold enriched historical trench results including one at the Flores zone which recorded 8.4 g/t gold over 25.6m (see October 30, 2013 news release from Great Bear Resources Ltd.).

K2 and MPM are committed to transparency, accountability, environmental stewardship, safety, diversity and inclusion, and community engagement.

On behalf of the Board of Directors,

“Stephen Swatton”

President and CEO

K2 Gold Corporation.

For further information about K2 Gold Corporation or this news release, please visit our website at k2gold.com or contact Investor Relations Offices in Canada 604-653-9464, or in the USA at Lone Pine, California +1 (760) 614-5605 or by email at [email protected].

K2 Gold Corporation is a member of Discovery Group based in Vancouver, Canada. For more information please visit: discoverygroup.ca.

Cautionary Statement on Forward-Looking Statements

This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding the exploration program at Mojave, including results of drilling, and future exploration plans at Mojave. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company’s inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company’s public disclosure record which is available on SEDAR (www.sedar.com). Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply 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. Except as required by securities laws and the policies of the TSX Venture Exchange, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. No securities of the Company have been or will, in the foreseeable future, be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/110731







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Ero Copper Reports Two Separate Fatal Incidents at its Operations

VANCOUVER, British Columbia, Jan. 18, 2022 (GLOBE NEWSWIRE) — Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or the “Company”) is deeply saddened…

VANCOUVER, British Columbia, Jan. 18, 2022 (GLOBE NEWSWIRE) — Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or the “Company”) is deeply saddened to report that, in recent days, two separate and isolated incidents occurred at its operations resulting in fatal injuries being sustained by two employees. One incident occurred at the Company’s MCSA Mining Complex, and the second incident occurred at its NX Gold Mine. No other personnel were injured.

Following each incident, the Company voluntarily suspended each of its operations to allow for investigations to be conducted and for leadership to provide support for the employees’ families and affected staff. Since the incident at the MCSA Mining Complex late last week, mining and milling operations have resumed. Since the incident at the NX Gold Mine yesterday evening, operations have been suspended as part of a site-wide safety stop initiative and are expected to resume within the next 24 hours.

The Company is actively assisting in the investigation of these tragic incidents.

ABOUT ERO COPPER CORP

Ero Copper Corp, headquartered in Vancouver, B.C., is focused on copper production growth from the MCSA Mining Complex located in Bahia State, Brazil, with over 40 years of operating history in the region. The Company’s primary asset is a 99.6% interest in the Brazilian copper mining company, MCSA, 100% owner of the MCSA Mining Complex, which is comprised of operations located in the Curaçá Valley, Bahia State, Brazil, wherein the Company currently mines copper ore from the Pilar and Vermelhos underground mines, and the Boa Esperança development project, an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6% of the NX Gold Mine, an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the MCSA Mining Complex, Boa Esperança and NX Gold properties, can be found on the Company’s website (www.erocopper.com), on SEDAR (www.sedar.com), and on EDGAR (www.sec.gov).

ERO COPPER CORP.  
   
/s/ David Strang For further information contact:
David Strang, CEO Courtney Lynn, VP, Corporate Development & Investor Relations
  (604) 335-7504
  [email protected]

CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS

This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements include statements that use forward-looking terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Such forward-looking statements include, without limitation, statements with respect to the expected restart of operations at the NX Gold Mine.

Forward-looking statements are not a guarantee of future performance and are 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, as of the date of this press release. While the Company considers such assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive, global health, and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.

Furthermore, such forward-looking statements involve a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation the risk factors listed under the heading “Risk Factors” in the Annual Information Form for the year ended December 31, 2020 and dated March 16, 2021.

Although the Company has attempted to identify important factors that could cause actual actions, events, conditions, results, performance or achievements to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, conditions, results, performance or achievements to differ from those anticipated, estimated or intended.

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.

Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.

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