Mr. K. Wayne Livingstone reports
NEW OROPERU RESOURCES INC.: TRES CRUCES PROJECT UPDATE - BARRICK MAKES OPTION PAYMENT ON TRES CRUCES
Minera Barrick Misquichilca SA has made the 2016 payment to maintain its option on the New Oroperu Resources Inc.'s Tres Cruces project.
The Tres Cruces property, 100 per cent owned by New Oroperu, is under an option-to-purchase agreement with a Peruvian subsidiary of Barrick Gold Corp., Minera Barrick Misquichilca. Maintaining the option requires an annual payment of $250,000 (U.S.), subject to 30-per-cent withholding for Peruvian tax. Under the terms of the agreement, all exploration expenditures deemed necessary by Barrick to make a production decision will be paid by Barrick at no cost to the company. Following a production decision, which must be made on or before Dec. 31, 2020, the company would retain a 30-per-cent fully financed interest subject to certain payback provisions, a 2-per-cent royalty interest and receive a $1-million (U.S.) advance royalty payment.
The Tres Cruces project is located about 10 kilometres south of Barrick's Lagunas Norte gold deposit, where production started in June, 2005. On Feb. 22, 2016, Barrick announced the results of a prefeasibility study on a plan to extend the life of Lagunas Norte by mining the refractory material below the oxide ore body in the current open pit. The refractory material cannot be economically processed using heap leaching due to low recoveries. This study, described in a Barrick National Instrument 43-101 technical report dated March 21, 2016, contemplates the installation of a new grinding-flotation autoclave and carbon-in-leach processing circuit to treat the refractory material below the current open pit. The study notes that the addition of a refractory processing facility could also unlock other potential refractory mineralization sources in the region surrounding Lagunas Norte, which are not included in the scope of the study.
Prior metallurgical testwork on Tres Cruces mineralization described in the company's National Instrument 43-101 technical report by Peter A. Lacroix, described below, indicates good gold recoveries in sulphidic mineralization using a carbon-in-leach flotation process. There is a minor component of oxide mineralization in the Tres Cruces deposit, and it is assumed, in the report, that this oxide component would be treated with the sulphides.
K. Wayne Livingstone, president, says: "We believe the potential addition of a grinding-flotation autoclave and carbon-in leach processing circuit to extend the life of Barrick's Lagunas Norte mine could enhance the development opportunity for Tres Cruces because of the proximal advantages to and synergies with Barrick's operations. We look forward to Barrick expanding and defining further Tres Cruces resources and ultimately making a production decision."
New Oroperu has a National Instrument 43-101 entitled, "Technical report on the Tres Cruces project, north-central Peru," dated Sept. 28, 2012, by Mr. Lacroix, PEng, of Lacroix and Associated, which updated mineral resource estimates for the Tres Cruces project based on all available information to that date. According to the report, the Tres Cruces mineral resource is estimated to contain 2.6 million ounces of gold at a 0.6-gram-per-tonne-gold cut-off in the measured and indicated category. A complete copy of the report is available on SEDAR or through the company's website.
The Tres Cruces deposit has several mineralized zones which are not fully defined. The Southwest Extension zone and the Southwest zone display shallow better-grade mineralization which also contain oxidized components in their upper part. There is also deep mineralization indicated in several holes. These deeper high-grade targets have not been completely drill tested, and some holes have bottomed in mineralization.
Drill hole RTC 255, previously reported in the company's news release, dated March 4, 2008, is an example of a well-mineralized hole which bottomed in mineralization. It averages 228 metres grading 2.95 grams per tonne Au with a shallow component from 37 metres to 62 metres (25 metres) grading 3.37 grams per tonne Au and a deeper component with higher grade from 197 metres to 210 metres (13 metres) grading 16.17 grams per tonne Au with 67.7 grams per tonne silver. Drill hole DTC 278 (Twin) has a deep mineralized interval from 235 metres to 261 metres (16 metres) grading 5.05 grams per tonne Au with 84.2 grams per tonne Ag. Not all deep holes measuring the deposit were assayed for silver. Silver reports as a recovered product in the metallurgical testwork as reported in the New Oroperu technical report.
The company looks forward to future developments on the Tres Cruces project with Barrick.
We seek Safe Harbor.
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