The Conversation (0)
Highbank Resources Ltd. (TSXV:HBK) clarified that certain disclosure previously made in its news release of Oct. 14, 2014, website, corporate presentations, investor relations information handouts provided at the Vancouver Resource Investment Conference and videos pertaining to the Swamp Point aggregate project was not NI 43-101 compliant. All non-compliant information has been either removed or will be rectified.
As quoted in the press release:
The company:
- Retracts statements and analyses regarding pretax profit, production economics, which could have been mistaken for a preliminary economic assessment or as qualifying an initial mineral reserve estimate. The company clarifies that it has no PEA or mining study suitable for public disclosure;
- Advises that while the company has made the decision to put the project into production, it is not basing its production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and there may exist increased uncertainty, economic and technical risk of failure associated with such production decision;
- Retracts the use of any reference to gross in situ aggregate values of the project, including the value of $2-billion. The company clarifies that it has not done a prefeasibility study necessary to qualify an initial reserve;
- Clarifies the disclosure of its resource in the project as follows:
- The mineral resource as was assessed by Associated Geosciences (now DMT Geosciences) in November, 2007.
- Limits consistent with mining and environmental regulations in British Columbia were applied prior to the resource calculation:
- Material occurring within 30 metres of the high water mark (HWM) was eliminated; there is a regulated offset from the HWM for minerals extraction.
- Material occurring within five m of the licence boundaries was not included in the estimate as there is a prohibition against working closer than five m to the licence boundary in the B.C. mining code.
- Material occurring within a band 15 m on either side of the crest of the banks of Donahue Creek was eliminated; working within these limits is forbidden under B.C.’s environmental code.
- The geological modelling and aggregate resource estimation were completed by Susan O’Donnell, GeolIT, under the direction of Keith McCandlish, PGeo, using the Gemcom-Surpac suite of geological modelling applications.
- Eric Beresford, PEng, completed the mine planning, under the direction of Dr. Peter Cain, PhD, PEng, AGL’s head of mining engineering. AGL has relied on aggregate testing results performed by Levelton Consultants of Richmond, B.C., in assessing the quality of the aggregates on the property. This testing was conducted on bulk samples collected by the company and Portland Canal Aggregates Corp. (PCAC).
- The industrial mineral resource estimate table provides resource volumes and tonnes for two separate areas, and a summary. The separate areas represent the licence area held by PCAC and the area for which an investigation permit was issued by the B.C. government for PCAC.
- Material located within 250 metres of a drill hole and complemented by geophysical data has been classified as measured, while material located outside the 250 m radius of a drill hole but still within 125 m of a geophysical data point has been classified as indicated. Inferred resources encompass all additional material located outside the optimum range to which the data can reasonably be projected, but within the limits of mining.
- The property has been designated as traditional Nisga’a land; however, this is under discussion as the Metlakatla are also claiming rights to area. Highbank has a co-operative agreement with the Metlakatla and a verbal commitment to employ Nisga’a First Nation, which has already been enacted as the property is being developed.
- The B.C. Ministry of Energy & Mines — mines and mineral resources division has approved the extraction of up to one million tonnes of aggregate, the associated mine plan and environmental requirements pertaining to the operation. Since the operation is in Canada there are no conceivable political risks associated with the operation. Also with the first nations agreements in place, no socio-economic difficulties are anticipated.
Click here to read the Highbank Resources Ltd. (TSXV:HBK) press release
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