airborne geophysical surveys for geological mapping

Spruce Ridge Receives Positive PEA at Great Burnt Copper-Gold Property

(TheNewswire)

Spruce Ridge Resources Ltd

TheNewswire - February 23, 2022 - Spruce Ridge Resources Ltd. (TSXV:SHL) (OTC:SRCGF) ("Spruce Ridge" or the "Company") is pleased to announce that it has received the results of a Preliminary Economic Assessment ("PEA") on the Company's wholly-owned Great Burnt Copper-Gold Project in Central Newfoundland. The PEA is incorporated in a Technical Report, with an updated Mineral Resource Estimate that has an Effective Date of January 17 th , 2022, prepared by P&E Mining Consultants Inc. (the "Technical Report").

John Ryan, CEO of Spruce Ridge, stated "We are very encouraged to have received this PEA, which illustrates the robust economics of a copper-gold mine at Great Burnt. Although the Mineral Resource is just over a million tonnes, the high copper grade provides a strong revenue stream, and we look forward to proceeding towards possible mine development and production in the near term. The PEA uses a copper price of US$4.00 per pound, and the spot price of copper has been higher than that since last April. The sensitivity analysis in the PEA indicates a base-case IRR of 23.3%, and if the financial model were to use the current NYMEX spot price of US$4.55 a pound, the IRR would rise to 81.5%. With industrialized countries moving towards near-total electrification of their economies in response to climate change, we envisage an increasingly strong demand for copper to continue for the foreseeable future".

The PEA is based on an underground mine, with 20-metre deep "starter pits" to provide rapid cash flow, on both the Great Burnt Copper Deposit and the South Pond "A" Copper-Gold Zone. Following are some highlights of the PEA:

Mine Life

4.0 years

Production rate

1,000 tonnes per day

Mining methods

"Starter" open pits and underground mining with ramp access

Average grades over life-of-mine (LOM)

2.13% Cu, 0.08 g/t Au after estimated dilution and losses (blended average of open pit & underground, Great Burnt & South Pond)

Processing

Custom (toll) processing is contemplated

Projected process plant recoveries

Copper 96% (25% Cu concentrate), gold 55% overall LOM average

Total tonnage mined & processed

1,068,300 tonnes

Following are some of the salient points of the cash flow analysis and financial model included in the PEA (all figures are in Canadian dollars unless indicated otherwise):

Commodity prices used

Copper US$4.00/pound, gold US$1,675/ounce, Cdn$ = US$0.77

IRR after tax

23.3%

Payout

2.9 years

After tax cash flow over LOM

$14.7 million

After tax NPV @ 6%

$9.3 million

Revenue over LOM

$215.7 million

Cash operating cost

$125.71 per tonne processed

Cash cost of product

US$2.18 per pound of copper (net of by-product credits)

AISC

US$3.15 per pound of copper (net of by-product credits)

Total CAPEX

$59.0 million

Table 1 shows the results of sensitivity analysis included in the PEA, using the price of copper as the dependent variable. The line using a current NYMEX spot price has been added for illustration purposes.

TABLE 1: Sensitivity analysis - copper price

Cu Price

After-tax NPV at 6%

After-tax IRR

US$/lb

$millions

Percent

$3.20

-$26.3

-31.6%

$3.60

-$8.5

-7.7%

Base case $4.00

$9.3

23.3%

$4.40

$27.2

64.9%

$4.55*

$32.9

81.5%

$4.80

$42.6

114.2%

* - NYMEX spot price Feb 18th, 2022

Access: The PEA assumes that a new all-weather road will be constructed to link with existing forestry roads at Atlantic Lake, 27 km from the Great Burnt Copper Deposit and 17.5 km northeast of the South Pond "A" Copper-Gold Zone. This would reduce road distance from Great Burnt to Grand Falls-Windsor, the commercial hub of Central Newfoundland, from its current 250 km to less than 90 km.

Mining Methods: The PEA envisages initial mining to take place in open pits to a depth of 20 metres at the Great Burnt and South Pond "A" Zone, which will partially finance the underground development phase. Underground access will be by decline ramp, with trackless transport of mineralized material and waste rock. Mining will be by longitudinal-retreat longhole stoping. The Great Burnt Lower Zone, which has a relatively low dip, will be mined by a combination of cut-and-fill and drift-and-fill methods.

Metallurgical Testwork: The Technical Report presents the results of preliminary metallurgical testwork carried out by SGS Lakefield. A composite sample was made up of quartered drill core from the 2020 drilling program on the Great Burnt Main Zone, with an average grade of 2.82% Cu and 0.03 g/t Au, to approximate the run-of-mine grade. It responded well to preliminary flotation tests. A locked-cycle test run on material ground to 80% minus 55µm produced a concentrate grading 25.1% Cu and 0.23 g/t Au, with copper recovery of 98.5% and gold recovery of 58.6%. The PEA used a grind to 80% minus 50µm, a copper recovery of 96%, a concentrate grade of 25% Cu and a gold recovery of 55%.

Preliminary tests were run on sorting using X-Ray atomic density, with a view to upgrading the run-of-mine material to reduce shipping and processing costs. Copper recovery was 80%, and the grade was increased to 5.35% Cu. It was considered that the loss was excessive, and the PEA was completed on the assumption that run-of-mine would be trucked to a toll process plant. Further tests, possibly using different sensing equipment, are being considered for the future.

The Technical Report includes an updated Mineral Resource Estimate that incorporated the results of the 2020 diamond drilling program on the Great Burnt Main Zone, which was summarized in news release 2021-12 on July 8 th , 2021. It is repeated in Table 2 below.

TABLE 2: Great Burnt Underground Mineral Resource Estimate at 0.90% CuEq Cut-Off

Classification

Tonnes (k)

Cu

%

Au

g/t

CuEq

%

Cu

Mlbs

Au

koz

CuEq Mlbs

Great Burnt Main Zone

Indicated

667

3.21

Nil

3.21

47.2

Nil

47.2

Inferred

482

2.35

Nil

2.35

25.0

Nil

25.0

South Pond "A" Deposit

Indicated

214

1.26

1.21

2.10

6.0

8.3

9.9

Inferred

145

1.07

1.02

1.78

3.4

4.8

5.7

Total

Indicated

881

2.74

0.29

2.94

53.2

8.3

57.1

Inferred

627

2.05

0.24

2.22

28.4

4.8

30.7

John Ryan, CEO, added "We are awaiting assay results from last fall's 3,000 metre drill program on the South Pond "B" Gold Zone, and anticipating that this may give us a possible addition to the Mineral Resource. Furthermore, we will be doing infill and step-out drilling at the South Pond "A" Copper-Gold Zone, which will firm up - and possibly add to - that Mineral Resource. We will also be following the recommendations of the Technical Report to do additional drilling on the Great Burnt Copper Deposit, with a view to converting some of the Inferred Mineral Resource into the Indicated classification."

Colin Bowdidge, Ph.D., P.Geo. and Eugene Puritch, P.Eng., Fec, CET, Qualified Persons as defined in NI43-101, have reviewed and approved the technical information in this news release . Mr. Bowdidge is a director and VP Exploration of Spruce Ridge and Mr. Puritch is independent of Spruce Ridge.

About Spruce Ridge Resources Ltd.

Spruce Ridge holds a 100% interest in 26,640 hectares in Central Newfoundland, including:

  • the 2,890-hectare Great Burnt VMS copper-gold property;

  • the 4,575-hectare Pipestone nickel prospect and;

  • the 19,175-hectare Foggy Pond property

In addition to its mineral assets, Spruce Ridge acquired leases with petroleum and natural gas rights, plus shut-in oil and gas wells, pipelines, and facilities, in the Unity area of southwestern Saskatchewan and is in the process of putting these assets back into production.

Spruce Ridge currently holds 5,594,955 shares of Canada Nickel Company Inc. and 10,000,000 shares of Noble Mineral Exploration Inc.

For further information please contact:

John Ryan, President and CEO

Spruce Ridge Resources Ltd.

Phone: 519-822-5904

Email: spruceridgeresources@gmail.com

Forward-Looking Statements

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. This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the intention to complete the transactions, and the Company's objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to an inability to complete the transactions, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, delays in obtaining or failures to obtain required regulatory, governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies 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. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (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.

Copyright (c) 2022 TheNewswire - All rights reserved.

News Provided by TheNewsWire via QuoteMedia

SHL:CA
The Conversation (0)
airborne geophysical surveys for geological mapping

Spruce Ridge Received Option Payments for the Viking and Kramer Properties, Viking Project, Newfoundland

(TheNewswire)

Spruce Ridge Resources Ltd

March 7, 2022 TheNewswire - Spruce Ridge Resources Ltd. (TSXV:SHL) (OTC:SRCGF) ("Spruce Ridge" or the "Company") is pleased to announce that it has received m ilestone option payments from Magna Terra Minerals Inc. ("Magna") per the Amended Option Agreements (the "Agreements") (See Press Release dated September 15, 2020) for the Viking and Kramer Properties.

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Gold bull jumping.

How High Can the Gold Price Go? Mining Billionaires Share Big Predictions

The gold price has hit record levels in 2024, leaving investors wondering just how high it can go.

During a recent webinar presented by the Mining Network, host Simon Catt, asset management director at Arlington Group, was joined by a group of industry veterans who gave their thoughts on where gold and silver may be going.

The group was comprised of Eric Sprott, founder of Sprott Securities and Sprott Asset Management; Franco-Nevada (TSX:FNV,NYSE:FNV) founder and Chair Emeritus Pierre Lassonde; Ned Naylor-Leyland, gold and silver fund manager at Jupiter Asset Management; Luke Gromen, founder of macroeconomic research firm Forest for the Trees; and Michael Oliver, founder and CEO of technical research firm Momentum Structural Analysis.

Keep reading...Show less

Trojan Gold Inc. Announces Non-Brokered Private Placement

Trojan Gold Inc. (CSE: TGII) (the "Company" or "Trojan") is pleased to announce a private placement financing consisting of the sale of up to 10,000,000 units (the "Units") and 5,000,000 flow-through units (the "FT Units") in the capital of the Company at a price of CDN$0.05 per Unit and CDN$0.10 per FT Unit for aggregate gross proceeds of a minimum of CDN$350,000 and a maximum of CDN$1,000,000 (the "Offering").

Each Unit will consist of one common share (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Unit Warrant"). Each Unit Warrant will entitle the holder thereof to purchase one Common Share in the capital of the Company for a price of CDN$0.08 for a period of 24 months from the date of the closing, subject to acceleration of the expiry date upon the occurrence of certain events.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

MONTAGE GOLD ANNOUNCES NOTICE OF ANNUAL GENERAL MEETING ALONG WITH PROPOSED DIRECTOR NOMINEES

Montage Gold Corp. ("Montage" or the "Company") (TSXV: MAU) (OTCQX: MAUTF) announces that it will hold its Annual General and Special Meeting (the "Meeting") on Friday, June 7, 2024 . The Notice of Meeting and Management Information Circular relating to the meeting has been mailed to shareholders and has been filed under the Company's profile at www.sedarplus.ca .

Montage Gold logo (CNW Group/Montage Gold Corp.)

The proposed slate of director nominees will consist of six individuals: Ron Hochstein , Richard P. Clark , Anu Dhir, David Field , Alessandro Bitelli and Martino De Ciccio . If elected, Ron Hochstein will be proposed as the Chair of the Board replacing Peter Mitchell who is not standing for re-election. In addition, Sasha Bukacheva and Hugh Stuart will not be standing for re-election as directors. With the successful transition of the previously announced new management team complete, Hugh Stuart , Kevin Ross , and Adam Spencer will be stepping down from their executive positions over the coming weeks.

Ron Hochstein , proposed Chair of the Board commented: "I would like to thank Peter Mitchell for his contributions and leadership during his time as Chair of the Board. I would also like to thank Sasha and Hugh for their contributions to the board during their tenure as directors. I also extend my gratitude to Hugh, Kevin, and Adam for their assistance during this transition phase for the Company as well as their significant contributions to the success of Montage over the years."

Shareholders as of the record date of April 26, 2024 , will be eligible to vote at the Meeting. Shareholders are encouraged to vote by proxy, which must be received by Endeavor Trust by 10:00 a.m. , Vancouver Time on Wednesday, June 5, 2024 .

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Montage Gold Corp. (TSXV: MAU) is a Canadian-listed company focused on becoming a premier multi-asset African gold producer, with its flagship Koné project, located in Côte d'Ivoire, at the forefront. Based on the Feasibility Study published in 2024, the Koné project ranks as one of the highest quality gold projects in Africa with a long 16-year mine life, low AISC of $998 /oz over its life of mine, and sizeable annual production of +300koz of gold over the first 8 years. Over the course of 2024, the Montage management team will be leveraging their extensive track record in developing projects in Africa to progress the Koné project towards an investment decision, thereby unlocking significant value for all its stakeholders.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian securities legislation (collectively, "Forward-looking Statements"). All statements, other than statements of historical fact, constitute Forward-looking Statements. Words such as "will", "intends", "proposed" and "expects" or similar expressions are intended to identify Forward-looking Statements. Forward looking Statements in this press release include statements related to the use of proceeds from the Offering; the final acceptance of the TSX Venture Exchange; the Company's mineral reserve and mineral resource estimates; the timing and amount of future production from the Koné project; expectations with respect AISC of the Koné project; anticipated mine life of the Koné project; and expected recoveries and grades of the Koné project. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties inherent in the preparation of mineral reserve and resource estimates and definitive feasibility studies such as the Mineral Reserve Estimate and the UFS, including but not limited to, assumptions underlying the production estimates not being realized, incorrect cost assumptions, unexpected variations in quantity of mineralized material, grade or recovery rates, unexpected changes to geotechnical or hydrogeological considerations, unexpected failures of plant, equipment or processes, unexpected changes to availability of power or the power rates, failure to maintain permits and licenses, higher than expected interest or tax rates, adverse changes in project parameters, unanticipated delays and costs of consulting and accommodating rights of local communities, environmental risks inherent in the Côte d'Ivoire, title risks, including failure to renew concessions, unanticipated commodity price and exchange rate fluctuations, risks relating to COVID-19, delays in or failure to receive access agreements or amended permits, and other risk factors set forth in the Company's 2023 AIF under the heading "Risk Factors". The Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.

NON-GAAP MEASURES

This press release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including cash costs and AISC (or "all-in sustaining costs") per payable ounce of gold sold and per tonne processed and mining, processing and operating costs reported on a unit basis. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. The Company discloses "cash costs" and "all-in sustaining costs" and other unit costs because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS, do not fully illustrate the ability of mines to generate cash flows. The measures, as determined under IFRS, are not necessarily indicative of operating profit or cash flows from operating activities. The measures cash costs and all-in sustaining costs and unit costs are considered to be key indicators of a project's ability to generate operating earnings and cash flows. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS. Readers should also refer to our management's discussion and analysis, available under our corporate profile at www.sedarplus.ca for a more detailed discussion of how we calculate such measures.

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/montage-gold-announces-notice-of-annual-general-meeting-along-with-proposed-director-nominees-302148393.html

SOURCE Montage Gold Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2024/17/c6524.html

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Impact Minerals

Impact funded to complete Pre-Feasibility Study at the Lake Hope High Purity Alumina Project, WA

Impact Minerals Limited (ASX:IPT) (Company) is pleased to advise that it has received firm commitments from sophisticated investors for a strategic placement (Placement) to raise A$3,000,000 (before costs) via the issue of 150,000,000 fully paid ordinary shares (Placement Shares) in the capital of the Company (Shares) at an issue price of A$0.02 per Placement Share. For every three Placement Shares subscribed for, one free-attaching option will be issued with an exercise price of $0.027 per option and an expiry date that is 15 months after the date of issue (Placement Options).

Keep reading...Show less
John Feneck, gold bars.

John Feneck: Gold, Silver, Copper, Uranium — 10 Stocks I'm Watching Now

John Feneck, partner and portfolio manager at Feneck Consulting, shared his thoughts on gold, silver, copper and uranium, outlining his outlook for these commodities and stocks he's currently watching.

Starting with gold, he said he thinks it's proven itself as a safe-haven asset, with more "smart money" now getting involved. At the same time, he sees gold-mining companies starting to put on positive performances.

"We're off to the races in gold producers in terms of doing well at the earnings level, and that gets the attention of big money ... (and) that's what's needed to generate more interest in the space," Feneck said.

Keep reading...Show less
ALX Resources

ALX Resources


Keep reading...Show less

Latest Press Releases

Related News

×