American CuMo Mining files Independent Preliminary Economic Assessment for the CuMo Project

American CuMo Mining Corporation is pleased to report on positive results from an independent Preliminary Economic Assessment of its CuMo Project.

American CuMo Mining Corporation (TSXV:MLY, OTCQX:MLYCF) (“CuMoCo” or the “Company”) is pleased to report on positive results from an independent Preliminary Economic Assessment (PEA) of its 100% owned CuMo Project, a large Copper-Molybdenum-Silver- Rhenium deposit located in Boise County, Idaho. The independent, third-party analysis was conducted by SRK Consulting (Canada) Inc., Sacré-Davey Engineering and Giroux Consulting.

“The CuMo Project is the largest Molybdenum, Silver, and Rhenium deposit in the United States and one of the world’s leading mining projects in terms of its size, cost, and potential economics,” said Shaun Dykes, President and Chief Executive Officer of CuMoCo. “The updated Preliminary Economic Assessment affirms projections and compels completion of the remaining environmental permitting aspects, pre-feasibility analysis, and feasibility initiatives to further advance our CuMo Project. The project design prioritises features that will provide the highest levels of environmental protection, workforce safety, and operating efficiency, while minimizing negative impacts on the community.”

This analysis marks the fifth report since 2008, revalidating the size, scope, and economics of the CuMo Project. Prior reports, which are available at www.sedar.com, were completed in 2008, 2012, 2015 and 2018.

The following mineral resource estimation tables (Table1-1 to 1-4) confirm that the CuMo deposit contains, at a Recovered Metal Value (RCV) $5.00 cut-off (all dollar amounts are expressed in US dollars):

american cumo

Medium long-term metal prices of $10 moly oxide ($15 moly metal Mo), $3 copper, $17.50 per ounce silver were used.

Table 1-1: Measured resource within pit shell

american cumo table 1-1

Table 1-2: Indicated resource within pit shell

american cumo table 1-2

Table 1-3: Measured and indicated resource within pit shell

american cumo table 1-3

Table 1-4: Inferred resource within pit shell

american cumo table 1-4

Notes: $5.00 RCV is the base-case cut-off for all mineral resource estimates. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

A minor change to the 2015 and 2018 reported resource estimate is noted as the Tungsten has been removed from the resource in order to maintain the overall classification of measured, indicated and inferred. No Tungsten recovery circuit has been included in the current process plant design as further work is required in order to determine the best way to recover the Tungsten.

The resource has been used to produce a new 30-year production pit and possible mill site, waste dump, and tailings locations.

The PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The potential project economics were evaluated using the following long-term metal prices:

american cumo table 1-5

The following table shows the highlights of the potential economics from the report:

american cumo table 1-6

Note: 5-year cash flow projections are identical before and after tax as no tax is paid until capital has been recovered.

american cumo table 1-7

Notes:

Net present value (NPV), is also the discounted cash flow for the life of the mine.

No taxes are paid until payback of capital costs have been made and no state and federal government incentives/ grants that are available have been included in the tax calculation.

Molybdenum is sold as Molybdenum oxide (MoO3) but is paid according to the molybdenum metal (Mo) content of the molybdenum oxide.

Cost per lb. is based on all costs operating and treatment charges.

Mr. Shaun M. Dykes, President and CEO of the Company comments: “The results are extremely encouraging, especially indicating a potential total after-tax, prior to capital removal, undiscounted cash flow of US$11 billion dollars over a period of 30 years (US$368 million per year).

In comparing the potential economics of the previous 2018 report ( May 2018) with the current report, the following is noted:

A decrease in after-tax Cash flow (pre-capital) from US$18,196.7 million to US$11,066 million;

A decrease in Net Present Value (5%) from US$5,673 million to US$1,942 million;

An increase in the highlighted discount rate from 5% to 8% giving a current present value of US$575 Million;

A decrease in Internal Rate of Return from 25% to 10%;

A decrease in life of mine from 82 years to current 30 years;

A decrease in total capital expenditures, including sustaining, from US$5,273.6 million to US$3,893 million;

An increase in cost per lb, Mo (net by products) from $2.37 to $4.64.

Previous economics were calculated over a 40 year period while current economics are calculated over 30 years.

The main reasons for these changes are:

The use of coarse (10 foot) mineral sorting intervals instead of the finer (2 to 3 inch) intervals, which had a significant reducing effect on the mill feed grades used in the economics. The switch from fine to coarse sorting resulted in a decrease of approximately 31% in grades and thus recoverable metals.

An increase in operating cost per ton from US7.86 to US$9.25 is also noted.

For readers to fully understand the information in this news release, they are encouraged to read the complete PEA technical report, which the Company has filed on SEDAR (www.sedar.com). The report is also available on the Company’s website, including all qualifications, and assumptions that relate to the PEA. The technical report is intended to be read in its entirety and sections should not be read or relied upon out of context.

The Company and authors have identified several areas and opportunities that, in addition to the potential economics described above, may provide significant costs savings for the project, including the following:

Mining

– Further drilling to estimate grade of blocks not estimated in current model and assumed to be waste.

– Optimization of the pit designs and definition of a mineable reserve.

– Optimization of waste and stockpile haulage methodology. Considering possible implementation of conveyor-based systems to reduce the amount of trucking involved and thus costs.

– Detailed equipment costing to determine potential bulk purchase discounts compared to list price for all major components.

Sorting

– The current assessment is based on 10-foot assay sample intervals which are extremely coarse. The CuMo Project has potential for finer sorting to 2- to 3-inch size, which would result in grade improvements and thus improved economics.

– The impact of bulk sorting can be expected to be improved through further sampling and testing.

Milling

– Additional metallurgical work will help determine optimum grind size (the current assessment is based on the finest grind tested to date), analyze recoveries of the various metals, and analyze the effects of the higher grade coming from the mineral sorters on metal recoveries.

– Optimization reagents to reduce costs and improve metallurgy.

– Work on the potential for a tungsten recovery circuit is required (excluded from the current report).

Other

– Examination of alternative concentrate transportation from the mill to the railhead.

– Optimization of the roaster capital and operating costs.

“These optimizations and further studies will be examined in more detail as part of the Pre-Feasibility Study the Company will commence next year with the goal of continuing to further reduce overall capital and operating costs, and improve the already excellent economics of our CuMo Project,” stated Mr. Dykes.

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 has prepared the technical information contained in this news release.

In other events, Joseph Baird has resigned as director of both Idaho CuMo Mining and CuMoCo due to a substantial increase in lawyers’ board liability insurance premiums. The Company wishes to thank Joseph for all his hard work done during difficult times.

About CuMoCo

CuMoCo is focused on advancing its CuMo Project towards feasibility and establishing itself as one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. For more information, please visit cumoco.comidahocumo.com and cumoproject.com.

For further information, please contact:

American CuMo Mining Corporation

Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com

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

Cautionary statement regarding forward‐looking information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such the Company’s ability to move its CuMo Project to feasibility and production, and to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study and to put the CuMo project into production, that no labour shortages or delays are experienced, that plant and equipment function as specified that the Court will not intervene with the Company’s proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company’s publicly filed documents, including the Company’s Management’s Discussion and Analysis for the period ended March 31, 2019. 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 forward-looking information 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 information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

Click here to connect with American CuMo Mining Corporation (TSXV:MLY) (OTC:MLYCF) for an Investor Presentation.

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text saying "top stories this week"

Catch up and get informed with this week's content highlights from Charlotte McLeod, our editorial director.

Top Stories This Week: Powell Gets Fed Nomination, Using Gold in a Market Correction youtu.be

We're back after a break last week with quite a bit to cover in the gold space.

After running up past the US$1,860 per ounce mark midway through November, the yellow metal has taken a tumble. At the time of this writing on Friday (November 26) afternoon, it was sitting just under US$1,790.

Gold's losses this week have been attributed to elements like a stronger US dollar and better Treasury yields, although Jerome Powell's US Federal Reserve chair renomination has pulled other factors into play — some market watchers believe he may move to taper and raise interest rates faster than anticipated.


If the Fed follows its previously laid out timeline for tapering, it will wrap up in mid-2022; the central bank has said it won't raise rates until after that. It has also emphasized that its roadmap may change if necessary.

Looking at the larger picture for gold, I heard recently from Nick Barisheff of BMG Group, who believes the stock market is due for a major correction.

"The market is due for a major correction. What will cause it and when it will happen is anybody's guess — it could be tomorrow, it could be six months from now" — Nick Barisheff, BMG Group

It's impossible to know when this correction will happen, but Nick emphasized the importance of acting before it's too late. He pointed out that investors are typically slow to get out of the market once a crash actually begins — they wait for a turnaround, and by the time it's clear there won't be one, they've experienced big losses.

In his opinion, the solution is to get out of the stock market early and transfer money into gold.

Here's how Nick explained it:

"Instead of taking your money off the table and going into cash … you go to gold (because cash is devaluing daily). Gold will at least hold its own and probably appreciate … so by sitting it out in gold you can wait until the market finishes correcting and then buy back in" — Nick Barisheff, BMG Group

With gold's future in mind, we asked our Twitter followers this week what price they think the metal will be at the end of 2021. By the time the poll closed, most respondents had voted for the US$1,800 to US$1,900 range.

We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the cannabis space, INN's Bryan Mc Govern spoke with Dan Ahrens of AdvisorShares to get his thoughts on 2021 trends and what's ahead in 2022.

Dan was candid, and said if he had to choose one word to describe the cannabis market in 2021, it would be "painful." Like many others, he's been disappointed in the industry's performance — while positivity initially ran high due to excitement about potential federal changes in the US, ultimately progress has been slow.

"Cannabis started with a big run-up in January and February ... and things dragged from there" — Dan Ahrens, AdvisorShares

Still, Dan has hope for 2022 and said it will be a "huge year" for cannabis. He believes US reforms will come sooner rather than later, and in his opinion those widely anticipated changes will bring a wave of M&A activity.

Specifically, he expects to see alcohol, tobacco and other consumer packaged goods companies making deals with cannabis players, not just cannabis entities doing transactions with each other.

"Those big alcohol companies, tobacco companies, other consumer packaged goods product companies — they're waiting. They're waiting on the US" — Dan Ahrens, AdvisorShares

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.

And don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

cannabis plant layered with German flag graphic
Dmytro Tyshchenko / Shutterstock

Catch up on some of the biggest news of the week for the cannabis investment world.

Three political parties have formed a coalition in Germany, leading to a new government, and it has promised cannabis reform in the European nation.

Meanwhile, a popular cannabis retailer confirmed consumers will now find its products available for delivery on the Uber Eats mobile application in Ontario.

Keep reading to find out more cannabis highlights from the past five days.


Coalition of parties promises forward-looking cannabis policy

Germany, a country with comprehensive and elaborate medicinal rules for cannabis, is in a time of transition as a new government is set to begin to take over after 16 years of Angela Merkel.

Olaf Scholz, the proposed next chancellor of Germany, leads a three party coalition that will become the country's governing body. As part of its promises, talk of adult-use cannabis regulation has now gained even more momentum. A report from MJBizDaily quotes a German policy document that shows the coalition's stance:

"We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors."

However, despite the promise and excitement, it remains to be seen how these ideas will be applied since no formal regulations have been drafted or approved yet.

Canadian cannabis retailer partners with popular delivery app

Tokyo Smoke, a cannabis retail operator in Canada owned by Canopy Growth (NASDAQ:CGC,TSX:WEED), announced a collaboration agreement with Uber Canada (NYSE:UBER) whereby cannabis consumers will be able to use the Uber Eats app to order products before they visit stores.

While the app won't let consumers get cannabis delivered to them, this new method opens the doors to more dynamic ways of buying cannabis.

"As a market leader in innovation and a platform used by so many Canadians, we believe this is the ideal next offering that can be done safely and conveniently on the Uber Eats app," Mark Hillard, vice president of operations with Tokyo Smoke, said in a press release.

A report from the Canadian Press indicates Ontario is considering allowing dispensaries to have delivery and pickup options made available to consumers permanently. The province allowed some of these purchasing options at the outset of the COVID-19 pandemic, but then removed them.

Lola Kassim, general manager of Uber Eats Canada, said this new end-to-end experience will provide consumers with responsible access to legal cannabis products.

Cannabis company news

  • Organigram Holdings (NASDAQ:OGI,TSX:OGI) issued financial results for its Q4 2021 period. In its report, the company notes a net loss of C$26 million despite a 22 percent uptick in net revenue to C$24.9 million. Beena Goldenberg, the newly appointed CEO of the firm, is encouraged by the market share position earned by the company, which said it became the fourth biggest producer in Canada during the reporting period.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) confirmed the decision for Akanda, its spinoff company focused on international cannabis opportunities, to begin trading on a US exchange. "The number of shares to be offered and the price range for the proposed offering have not yet been determined," the company told investors in a press release.
  • High Tide (NASDAQ:HITI,TSXV:HITI) announced the acquisition of 80 percent of NuLeaf Naturals, a CBD product wellness developer, for an estimated US$31.24 million. The deal includes a three year option clause for High Tide to complete a total acquisition. "As international markets open up and as export regulations evolve, NuLeaf's cGMP-certified facility positions us to take advantage of the global CBD business opportunity," Raj Grover, president and CEO of High Tide, said.
  • Humble & Fume (CSE:HMBL,OTC Pink:HUMBF) released the financial report for its first 2022 fiscal quarter to shareholders and the market. "As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers," Joel Toguri, CEO of Humble, said.

Don't forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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