American CuMo acquires 20 claims next to CuMo project

American CuMo Mining Corporation’s (TSXV:MLY,OTCPINK:MLYCF) wholly owned subsidiary, Idaho CuMo Mining Corp., has purchased from a group of local prospectors 20 unpatented mining claims, covering an area of approximately 400 acres, adjacent to the CuMo project. The consideration payable for the claims was a onetime payment of the issuance of Idaho CuMo’s 7-year term silver convertible debenture valued at US$ 250,000, one million common shares of CuMoCo, and the sum of US$ 10,625 representing an advance on the initial 6-month interest payment on the convertible debenture. This purchase is subject to exchange approval.
“These claims lie approximately 10 miles northeast of Pioneerville, Idaho and immediately next to our CuMo Project. Collectively, they represent an important addition to our overall land position and an integral part of the continuing development of our CuMo Project,” said Shaun Dykes, President and CEO of CuMoCo.
The Company also announces that it has completed additional analysis on its Ore-Sorting results recently announced (please refer to the Company’s news release of January 24, 2017). The analysis shows that a two-sort process will be best for the CuMo deposit. The initial sort would sort material into waste and mill feed plus stockpile and the second sort would separate the feed from stockpile with feed being sent straight to processing and the remainder sent to a stockpile. Proceeding in this manner is designed to maximize the returns during the first 40 years of a possible operation. It should be noted that recent advancements in Ore-Sorting technology can perform both sorts at the same time. The tables below contain values from the case selected by the Company to be used to test bulk samples to establish the final values to be used in pre-feasibility and feasibility studies.
Table 1 shows the results of the testing for the selected Ore-Sorting scenario of 75% mined material accepted in initial sort and Table 2 shows 50% of the 75% accepted on the second sort, based on the amount of rock accepted for processing.

                      INITIAL SORT
       Start grade           Metal % Accepted     Accepted grade
 Zone    Mo   Cu   Value  Volume    Mo      Cu    Mo   Cu   Value
         %     %    US$  Accept %Accept %Accept %  %    %    US$
 CuAg  0.019 0.078$ 9.35  68.29%  85.12%  83.79% 0.0230.105$ 12.27
 CuMo  0.042 0.058$ 10.43 83.45%  97.21%  86.92% 0.0490.072$ 12.55
  Mo   0.051 0.052$ 11.01 71.51%  95.29%  78.01% 0.0680.051$ 13.04
Overall0.047 0.055$ 10.78 75.00%  95.02%  83.55% 0.0620.069$ 13.90

                          SECOND SORT
 Sort 1 accepted grade     Metal % Accepted    Accepted grade
 Zone   Mo   Cu   Value  Volume   Mo     Cu    Mo   Cu   Value
         %    %    US$  Accept %Accept%Accept%  %    %    US$
 CuAg  0.0230.105$ 12.27 10.98% 41.34% 14.79% 0.1020.130$ 24.35
 CuMo  0.0490.072$ 12.55 40.36% 84.93% 51.54% 0.0850.070$ 16.85
  Mo   0.0680.051$ 13.04 29.66% 85.75% 48.64% 0.1400.081$ 24.69
Overall0.0620.069$ 13.90 37.50% 76.89% 35.49% 0.1270.081$ 23.07

Note: all tons are short tons as per the USA system.Tables based on an initial sort of 75% of the material above a mine cutoff and a 50% second sort to separate mill feed from stockpile. Stockpile would be processed later.Mined material is based on the 150,000 tons per day case in the PEA, where 150,000 tons of mill feed and 150,00 tons of stockpile were proposed to be mined. The tables show the volumes delivered to the mill and the metal content of those values. For example, in the case of the Mo zone, 29.66% of the material is direct feed and it contains 85.75% of the molybdenum and 48.64% of the copper in the original mined material. The initial mine grades were 0.051% Mo and 0.052% Cu with a recovered value of $11.01. Following the second sort, the grades are 0.140% Mo and 0.081% Cu with a recovered value of $24.69. This represents a grade increase of 274.5% in molybdenum, 147.3% in copper and 224.0% increase in value.
Due to the multi-element nature of the mineralization, a recovered metal value is used to separate the accepted material from the rejected. It is also important to note that under non-sorting conditions, all the material would be sent for processing. Low metal prices of US$5 moly oxide (US$7.5 moly metal Mo), and US$2.75 copper from the PEA were used as they are close to current prices. Silver is not included in the calculation as only copper and molybdenum are used in the sorting process.
The formula for calculating recovered metal value is:
RCV= ((Cu/10000) *20*$(Cu)* Cu recv) + ((Mo/10000) *20*$(Mo)* Mo recv). Copper recovery (Cu recv) is 75% and moly recovery (Mo recv) is 90%.
Finally, the Company announces that it has granted as of March 1, 2017, a total of 2,450,000 new stock options to directors, officers, and consultants. The options granted are for a period of five years expiring on March 1, 2022, at a price of thirty cents ($0.30).
The targets and the potential optimizations are conceptual in nature as there has been insufficient work done to confirm the target values as defined by NI 43-101 and it is uncertain that further work would result in establishing these targets.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company is the designated qualified person for the CuMo Project, and prepared the technical information contained in this news release.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility. CuMoCo also intends to advance its newly-acquired Calida Gold Project. Management is continuing to build an even stronger foundation from which to move the Company and its projects forward. For more information, please visit www.cumoco.com, www.idahocumo.com and www.cumoproject.com.
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