Vancouver, British Columbia - November 7, 2018 (Newsfile Corp.) (Investorideas.com Newswire) GMV Minerals Inc. (TSXV: GMV) (the "Company" or "GMV") is pleased to release the results of its preliminary economic assessment (the "Study") for the Mexican Hat Project gold deposit located in Cochise County, Arizona ("Mexican Hat" or the "project"). GMV Minerals Inc. is a publicly traded exploration company solely focused on developing precious metal assets in Arizona.
The base case assumes a gold price of US$1,325/ounce ("oz"). All figures are stated in U.S. Dollars ("$") unless otherwise noted. All tonnages are metric tonnes. Precious metal grades are in grams per metric tonne (g/t).
The Technical Report pursuant to National Instrument ("NI") 43-101 guidelines for the Preliminary Economic Assessment will be filed on SEDAR within 45 days.
Financial Indicators Before Taxes
NPV @ 0%: US$133.3 M
NPV @ 5% : US$101.0 M
IRR %: 33.0%
Payback (years): 2.0
Financial Indicators After Taxes
NPV @ 0%: US$113.1 M
NPV @ 5%: US$83.9 M
IRR %: 29.0%
Payback (years): 2.2
INITIAL CAPITAL EXPENDITURES ($ MILLIONS)
The mine operating costs were calculated to average $1.84 per tonne moved.
The life of mine operating costs were calculated to average
An updated Mineral Resource Estimate was prepared by Tetra Tech Inc. (Tetra Tech) with an effective date of June 22, 2018 and announced by GMV in a News Release dated July 17, 2018. Details of the Mineral Resource Estimate can be found in a Technical Report filed on SEDAR and announced by GMV in a News Release dated August 29, 2018.
The mine plan is currently conceived as a conventional hard rock open pit. There are two independent pits which are developed with 5 phase or pushback designs. The mine plan produces a nominal ore tonnage to the process plant of 5,475 Ktonnes of ore per year (15,000 tpd) from a total material movement of 20,880 Ktonnes per year (52,200 tpd).
Over the course of the 5 year mine life, 25.1 Mtonnes of mineralization are planned for processing out of a total material movement of 96.4 Mtonnes.
The reader is cautioned that this mine plan is based on a mineral resource which includes inferred category mineralization. The reader is further cautioned that mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the mineral resources will be realized or that they will convert to mineral reserves.
There is no mineral reserve at Mexican Hat at this time. A component of the mineral resource, inclusive of inferred mineralization has been designated as potentially minable material for this PEA. This material does not constitute a mineral reserve and any reference to the word "ore" is for convenience of defining material that is planned for processing in the Preliminary Economic Assessment (PEA).
INFRASTRUCTURE & PROCESS PLANT
The Mexican Hat Project is located in the southeastern part of the State of Arizona, approximately 115 km east-southeast of Tucson, and can be accessed from the Old Ghost Town Rd., a gravel road extending south of the Town of Pearce or north from Gleeson Rd.
Groundwater will be used as the source of water for mining operations. No permitting restrictions or quantity issues are anticipated.
A 69 kV powerline to site will be supplied by Sulphur Springs Valley Electric Cooperative. The power plant is located 30 km north of the site.
The crushing plant will produce ore with a 25 mm top size to be stacked on the heap. Pregnant solution from the heap leach will be processed in a conventional adsorption desorption recovery (ADR) plant. The process plant includes a refinery that will produce doré bars.
A National Instrument 43-101 (NI 43-101) compliant technical report entitled "Mexican Hat Project NI 43-101 Technical Report, Preliminary Economic Assessment" prepared by the following Qualified Persons will be filed by the Company within 45 days of this release on www.sedar.com:
All Qualified Persons have contributed to their corresponding sections in Interpretation, and Recommendations. The Qualified Persons have reviewed and approved the scientific, technical, and economic information obtained in this news release.
Ian Klassen, President of the Company states "We are pleased with these results as they demonstrate that the mineralization found to date is potentially economic with robust net operating revenues." The metallurgical results enable excellent recoveries at a coarse crush, keeping costs low. The Company wishes to confirm its internal economic assumptions to the public and can now focus on further expansion of the deposit. Development drilling will focus on:
A PEA, as defined under the terms of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), is an economic analysis intended to examine the potential viability of a mineral project. A PEA analyzes and assesses geological, engineering, and economic factors to reach its conclusions.
About GMV Minerals Inc.
GMV Minerals Inc. is a publicly traded exploration company focused on developing precious metal assets in Arizona. GMV, through its 100% owned subsidiary, has a 100% interest in a Mining Property Lease commonly referred to as the Mexican Hat project, located in Cochise County, Arizona, USA. The project was initially explored by Placer Dome (USA) in the late 1980's to early 1990's. GMV is focused on developing the asset and realizing the full mineral potential of the property through near term gold production. The Company recently updated its inferred mineral resource to 32,876,000 tonnes grading 0.616 g/t gold at a 0.2 g/t cut-off, containing 651,000 ounces of gold.
ON BEHALF OF THE BOARD OF DIRECTORS
Ian Klassen, President
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.
For further information please contact:
GMV Minerals Inc.
Tel: (604) 899-0106
This news release may contain forward-looking statements based on assumptions and judgments of management of the Company regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements except as may be required by law.
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