Mr. Eugene Beukman reports
NEW EXPLORATION TARGETS TO BE TESTED
Bard Ventures Ltd. has provided a summary of the
previously reported final results from its 2011 phase one exploration drill program on its Lone Pine property, along with conclusions and recommendations of the company's NI 43-101 positive preliminary economic
assessment on the Alaskite zone completed in March, 2011.
Positive results received from drill holes BD-11-67 to BD 11-70 demonstrate the continuity of high-grade mineralization
through areas of widely spaced drill hole intercepts (see news releases dated Sept. 6, 9, 19, 22 and 28). The
property is located 15 kilometres north-northwest of Houston, B.C., and is situated in the Omineca mining division.
Alaskite zone
A summary of significant drill hole intercepts from BD-11-67 is highlighted in the associated table.
From To Interval Molybdenum Copper
(m) (m) (m) % %
47.7 67.7 20.0 0.04
113.7 687.1 573.4 0.10
Including
345.0 458.7 113.7 0.19
Including
503.5 537.3 33.8 0.19
59.7 472.7 413.0 0.04
Quartz breccia zone (QBZ)
A summary of significant drill hole intercepts from BD-11-69 is highlighted in the associated table.
SILVER
From To Interval Silver
(m) (m) (m) g/t
18.6 233.3 214.7 70.49
Including
49.3 51.0 1.7 711.0
Including
142.5 148.8 6.3 1,483.83
And
146.3 146.8 0.5 15,920.00 (1)
Including
180.0 183.3 3.3 920.96
439.6 450.8 11.2 8.51
Including
446.5 448.7 2.5 25.76
(1) 15,920 grams silver equals 464 ounces equals 15.92 kilograms.
COPPER
From To Interval Copper
(m) (m) (m) g/t
49.3 235.3 186.0 0.11
Including
49.3 54.2 4.9 0.27
Including
120.5 124.0 3.5 0.38
Including
142.5 148.8 6.3 1.35
And
146.3 146.8 0.5 14.08
Including
168.5 185.3 16.8 0.24
309.0 312.9 3.9 0.04
329.1 336.4 7.3 0.08
MOLYBDENUM
From To Interval Molybdenum
(m) (m) (m) %
329.1 446.5 117.4 0.09
Including
373.9 382.3 8.4 0.60
There has been no low or high assay cut-offs applied to any analytical results as the project is still in the exploration phase.
The only interval that had non-detectable silver (less than 0.5 gram per tonne) in the interval from 18.6 metres to 233.3 metres reported was from 55.4 metres to 58.4 metres, a drilled width of 3.0 metres.
A summary of significant drill hole intercepts from BD-11-70 is highlighted in the associated table.
SILVER
From To Interval Silver
(m) (m) (m) g/t
47.4 55.2 7.8 9.04
123.7 198.1 74.4 8.51
Including
178.1 187.1 9.0 28.41
295.8 311.7 15.9 6.27
329.9 334.4 4.5 10.24
395.1 399.7 4.6 15.4
COPPER
From To Interval Copper
(m) (m) (m) g/t
47.4 59.3 11.9 0.17
86.7 338.5 251.8 0.09
Including
178.1 196.1 18.0 0.13
Including
221.5 280.6 59.1 0.14
Including
293.0 311.7 18.7 0.18
360.1 365.2 5.1 0.41
377.4 385.3 7.9 0.16
MOLYBDENUM
From To Interval Molybdenum
(m) (m) (m) %
55.2 124.7 69.5 0.04
169.8 183.0 13.2 0.05
202.1 272.3 70.2 0.03
299.2 407.5 108.3 0.09
Including
358.7 365.2 6.5 0.28
Including
372.7 387.3 14.6 0.12
420.8 429.7 8.9 0.03
There has been no low or high assay cut-offs applied to any analytical results as the project is still in the exploration phase.
The only intervals that had non-detectable silver (less than 0.5 g/t) in the interval from 123.7 metres to 198.1 metres reported are three isolated and scattered sample intervals varying from 1.5 metres to 2.0 metres in length.
Drill hole BD-11-68 is the third and final drill hole completed during the phase one drill program on the QBZ located one
kilometre north of the Alaskite zone molybdenum-copper-silver resource.
A summary of significant drill hole intercepts from BD-11-68 is highlighted in the attached table.
COPPER
From To Interval Copper
(m) (m) (m) g/t
24.0 326.7 302.7 0.08
Including
41.2 68.0 26.8 0.13
Including
100.1 120.8 20.7 0.13
Including
148.8 166.5 17.7 0.11
Including
185.6 207.3 21.7 0.18
Including
297.6 303.6 6.0 0.29
MOLYBDENUM
From To Interval Molybdenum
(m) (m) (m) %
32.61 418.9 386.29 0.06
Including
103.4 120.8 17.4 0.12
Including
131.8 155.0 23.2 0.15
Including
199.1 207.3 8.2 0.14
Including
253.3 264.2 10.9 0.12
Including
322.7 339.0 16.3 0.14
Vertical drill hole BD-11-68 intersected extensive intervals of copper and molybdenum mineralization from bedrock at 24.0
metres to a downhole depth of 418.9 metres through a broad zone of andesitic to basalt-rich stratigraphy intercalated with
intervals of crystal tuff, volcaniclastics and minor Alaskite dikes. The drill hole terminated at a downhole depth of 590.4
metres. Molybdenum and chalcopyrite mineralization is vein hosted; silver mineralization is vein hosted and scattered with
best results reporting from 179.2 grams per tonne silver over 1.0 metre to 6.6 grams per tonne silver over 4.9 metres.
Gold and rhenium analysis have been received from selected drill holes in the QBZ. Gold analyses were completed over the
entire length of those drill holes located along the western margin of the QBZ, where polymetallic copper-silver-molybdenum mineralization was intersected over extensive intervals in six drill holes including BDQ-08-02 to BDQ-08-05,
and BD-11-69 and BD-11-70. Along the eastern margin of the QBZ, four drill holes (BD-07-02, BD-07-06, BDQ-08-01 and
BD-11-68) intersected broad intervals of near-surface porphyry-style molybdenum-copper mineralization; gold analysis was
completed across angled drill hole BDQ-08-01. Elevated and anomalous gold results were received in all drill holes along
the western margin of the QBZ with best results reporting up to 0.54 gram per tonne gold over 188.27 metres.
Rhenium enrichment is associated with molybdenum mineralization with best results reported from higher-grade,
molybdenum-rich intervals. Rhenium analyses were completed over selected portions of angled drill hole BDQ-08-01 and
BD-11-70. Elevated and anomalous results were received from sections of higher-grade molybdenum intercepts with best
results reporting from 0.45 g/t Re over 5.1 metres to 0.16 g/t Re over 67.6 metres. A summary of significant drill hole results
for gold and rhenium are highlighted in the attached table. All intervals are reported as drill core widths.
Drill hole From To Width Gold Rhenium
(m) (m) (m) (g/t) (g/t)
BDQ-08-01 185.0 191.0 6.0 0.21
Including 189.0 191.0 2.0 0.34
217.0 221.0 4.0 0.12
309.0 333.0 24.0 0.11
401.0 407.0 6.0 0.12
9.0 11.0 2.0 0.30
BDQ-08-02 75.0 81.0 6.0 0.28
Including 75.0 77.0 2.0 0.60
197.0 211.0 14.0 1.24
Including 203.0 209.0 6.0 2.62
401.0 403.0 2.0 0.30
409.0 411.0 2.0 0.57
BDQ-08-03 67.0 117.0 50.0 0.21
Including 99.0 101.0 2.0 1.36
137.0 151.0 14.0 0.17
Including 149.0 151.0 2.0 0.48
227.0 229.0 2.0 2.29
281.0 283.0 2.0 1.83
297.0 299.0 2.0 0.85
BDQ-08-04 211.0 213.0 2.0 0.35
293.0 311.0 18.0 0.28
Including 297.0 307.0 10.0 0.39
319.0 323.0 4.0 0.43
329.0 345.0 16.0 0.14
363.0 551.27 188.27 0.54
Including 377.0 385.0 8.0 1.81
Including 407.0 421.0 14.0 1.24
Including 431.0 433.0 2.0 2.22
Including 441.0 449.0 8.0 1.86
Including 475.0 477.0 2.0 1.49
Including 515.0 517.0 2.0 1.01
Including 531.0 547.0 16.0 0.72
BDQ-08-05 137.0 223.0 86.0 0.19
Including 155.0 193.0 38.0 0.26
Including 201.0 203.0 2.0 0.46
Including 219.0 221.0 2.0 0.60
275.0 333.0 58.0 0.32
Including 287.0 291.0 4.0 0.80
Including 315.0 325.0 10.0 0.74
Including 323.0 325.0 2.0 2.10
355.0 359.0 4.0 0.28
BD-11-69 45.0 51.0 6.0 0.63
Including 49.3 51.0 1.7 1.55
79.0 80.9 1.9 0.72
86.8 89.5 2.7 0.72
134.1 181.9 47.8 0.50
Including 142.5 146.8 4.3 2.60
Including 146.3 146.8 0.5 14.20
Including 158.0 159.5 1.5 1.24
Including 174.5 176.0 1.5 0.94
Including 180.0 181.9 1.9 1.0
335.0 336.4 1.4 3.84
448.7 450.8 2.1 1.53
BD-11-70 299.2 305.0 5.8 0.16
310.0 311.7 1.7 0.36
319.7 387.3 67.6 0.16
Including 323.7 334.4 10.7 0.21
Including 352.1 353.3 1.2 1.21
Including 360.1 365.2 5.1 0.45
195.5 196.1 0.6 0.47
397.4 399.7 2.3 0.45
Rhenium compounds are included in molybdenum concentrates derived from porphyry copper deposits, and rhenium is
recovered as a byproduct from roasting such molybdenum concentrates. Important uses of rhenium have been in platinum-rhenium catalysts, used primarily in producing lead-free, high-octane gasoline and in high-temperature superalloys used for
jet engine components. Rhenium analyses were completed in the Alaskite zone (news release dated Jan. 20, 2009)
where elevated and anomalous rhenium results averaging 0.1 g/t Re over 753.74 metres to 0.4 g/t Re over 26.0 metres were
reported from high-grade molybdenum intersection in holes BD-08-25 and BD-08-35. Rhenium analyses in the QBZ
returned similar results over shorter intervals through sections of higher-grade molybdenum. Elevated and anomalous gold
assay results over significant widths from drill holes located along the western edge of the QBZ, where polymetallic copper-silver-molybdenum mineralization were intersected, are considered significant.
All intervals are reported as drill core widths and may not represent true width as there has not been enough drilling to
delineate the shape of the mineralization at this early stage of wide-spaced exploration drilling.
Drill core samples from BD-11-67 to BD-11-70 were analyzed by Acme Analytical Laboratories in Vancouver utilizing the
Group 1E analysis. Analytical procedures consist of a 31-element ICP analysis followed by assay for any molybdenum ICP
analysis greater than 4,000 parts per million Mo. Gold analysis was performed by fire assay utilizing Group 3b methodology. Rhenium
analysis was completed utilizing Acme's Group 1F ultratrace analysis by ICP mass spectrometry.
The company has completed an NI 43-101 positive preliminary economic assessment on the Alaskite zone (see news
release March 11, 2011).
Conclusions and recommendations
P&E concludes that the property has favourable economic potential as an open-pit mine producing Mo and Cu concentrates.
The base case economic analysis contemplates an average life-of-mine strip ratio of 5 to 1 (including the prestripping), a
40,000-tonne-per-day mill feed rate and a 12-year mine life. Preproduction capital expenditures, including contingencies,
are estimated to be $435-million. The property has an estimated pretax net present value (NPV) of $505-million (at a 5-per-cent
discount rate) and an internal rate of return (IRR) of 12.4 per cent using a base case Mo price of $19.00 (U.S.) per pound and Cu
price of $3.00 (U.S.) per pound. These prices correspond to the approximate three-year trailing average prices of these metals as
of Dec. 31, 2010.
The estimated average resource grades including mine dilution and losses, and the life-of-mine metal production from the
property are listed in the associated table.
Recovered Recovered
Mineral resource Ore Mo Cu Mo Cu
(tonnes) % % (pound) (pound)
Classification (millions) (millions)
Measured and indicated 146,365,000 0.069 0.034 189.3 65.2
Inferred 16,679,000 0.081 0.034 25.3 7.4
P&E notes that the PEA is preliminary in nature and its minable tonnage includes inferred resources that 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 projections in a preliminary assessment incorporating these resources will be
realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The potentially
minable mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing
Committee on Reserve Definitions.
P&E recommends that the company advance the project with additional exploration and delineation drilling, as well as with
studies in metallurgical, geotechnical and environmental matters, with the intention to continue the project to the feasibility
stage.
Economic analysis
The economic analysis uses a simple pretax cash flow model where undiscounted revenues during the 12-year mine life are
projected on an annual basis. The mine would produce a Mo concentrate and a Cu concentrate. The currency exchange rate
used was 95 U.S. cents equals $1.00.
Highlights:
- Total undiscounted cash flow of $1,234-million;
- With a 5-per-cent discount rate (base case): $505-million;
- With a 7-per-cent discount rate: $321-million;
- With a 10-per-cent discount rate: $112-million;
- Internal rate of return of 12.4 per cent;
- Project payback period from start of production is 8.6 years;
- Maximum negative cumulative cash flow of $624-million occurs in the fourth year of production.
The attached sensitivity table demonstrates the positive effect on project economics if higher molybdenum prices are
realized during the 12-year mine life.
SENSITIVITY OF PROJECT ECONOMICS TO MO PRICES AT VARIOUS DISCOUNT RATES
Mo per pound IRR NPV (millions of dollars)
(U.S. dollars) 0% 5% 7% 10%
$19.00 12.4% 1,233 505 320 112
$20.00 14.4% 1,459 651 445 206
$22.50 19.1% 2,024 1,017 757 443
$25.00 23.6% 2,589 1,383 1,068 679
$27.50 27.8% 3,153 1,749 1,380 915
$30.00 32.0% 3,718 2,115 1,691 1,152
Development plan
The mine has been planned as a conventional open-pit mining operation producing 40,000 tonnes per day of mill feed at full
production. The plan anticipates mining 14 million tonnes of ore annually based on a 350-day operating year. The
stripping ratio for the first seven years of operation (excluding prestripping of about 10 million tonnes) is approximately 7.0 to 1 but
reduces to an average of 1.8 to 1 for the remaining five years of operations. Overall pit slopes have been designed at
approximately 50 degrees.
Drilling will be carried out by electric, track-mounted drill units. Operating bench heights of 15 metres have been assumed
for the ore and waste mining operations. Electric hydraulic shovels with 327-tonne waste haul trucks and 222-tonne ore haul
trucks are contemplated for this operation, with annual total material movement of up to 114 million tonnes (325,000 tonnes
per day).
Mining operations will commence with an initial mill feed grade of 0.035 per cent Mo, which increases as the mine deepens. In the
last seven years of the mine life, the average Mo grade will be approximately 0.091 per cent. Copper grades will remain relatively constant
throughout the mine life at approximately 0.034 per cent. The project is expected to produce 214 million pounds of Mo and 72
million pounds of Cu over a 12-year mine life. Process recoveries of 85 per cent for Mo and 65 per cent for Cu were utilized in the cash
flow model while the metal payables were 98.5 per cent for Mo and 85 per cent Cu.
The mine plan contemplates transporting the resource by truck to a primary crushing and processing plant near the open pit.
The processing plant will utilize the conventional processes of crushing, grinding and froth flotation to produce separate
concentrates of Cu and Mo. The plant tailings will be pumped to a tailings management facility. Waste rock will be
deposited in an adjacent rock storage facility.
Estimated mine closure and site rehabilitation cost allowances have been included in the economic analysis. During mine
operation, health and safety, and environmental protection costs, including effluent treatment, have also been estimated.
Eugene Beukman, president and chief executive officer of the company, stated: "The PEA ascribes an estimated pretax
NPV to the property of approximately $505-million, using a discount rate of 5 per cent. The molybdenum price used in this PEA
was $19.00 (U.S.) per pound, which approximates the Dec. 31, 2010, three-year trailing average price. We are very
encouraged by these results, and we still believe we can improve the project economics through continued infill drilling of
inferred resources and in further exploration of the Quartz breccia zone and 61 zone on the property, which are in close
proximity to the area evaluated by the PEA. In addition, we are strongly optimistic that the price of molybdenum which will
actually be realized during the proposed mine life, will be significantly higher than utilized in this PEA. This would result in
a substantially higher NPV and the IRR. Bard will continue to advance this strategic deposit which is well located in terms
of ideal infrastructure, secure land tenure in a politically stable geographic location."
P&E Mining Consultants is an internationally recognized, well-established geological and mine engineering consulting
firm specializing in the areas of NI 43-101 geological reports, resource estimates, preliminary economic analyses of mining
projects and preliminary feasibility studies. This PEA was completed under the direction of Eugene Puritch, PEng, and Kirk
Rodgers, PEng, of P&E, who were responsible for mine design, production scheduling and overall financial analysis.
Alfred Hayden, PEng, of EHA, was responsible for metallurgical process capital and operating costs.
Each of the individuals named above is a qualified person, as defined in National Instrument 43-101, and is independent of
the company.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. A copy of the report is
available on SEDAR.
The company plans to follow up on numerous drill targets and proposes step-out drill holes in the QBZ, and will evaluate the
61 zone immediately to the north of the Alaskite zone resource. The proposed drill holes will test elevated and anomalous
Mo, Cu, zinc and silver soil geochemical and rock grab results as well as the granite contacts and bounding stratigraphy.
The property has an ideal location for operations with established infrastructure including:
-
Highway 16;
- A natural gas pipeline;
- A major hydro power transmission line and transformer substation;
- Is located only 15 kilometres from the CN rail line in Houston, B.C.
Bard is earning a 100-per-cent interest in the property under the terms of an option agreement (news release dated
Sept. 15, 2006). The Lone Pine exploration is being conducted under the supervision of qualified person, Rick Kemp,
PGeo, vice-president, exploration. Mr. Kemp has read and approved the technical content of this news release.
We seek Safe Harbor.
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