Mr. Kurt Heikkila reports
NORTH AMERICAN TUNGSTEN: CANTUNG LIFE OF MINE EXTENDED BEYOND 2017
Exploration results at North American Tungsten Corp. Ltd.'s mine in the Northwest Territories (Cantung) indicate that estimates of mineral reserves have increased, extending the mine's life.
"This is excellent news for the company to report to the public, to its customers and to its employees: Over the past three years, NTC has extracted over 1.4 million tons of ore at Cantung, yet our probable reserve estimates over that period have increased from the 1.69 million tons reported in 2011 to our current estimate of 1.82 million tons.
"As the tables indicate, the updated reserves and resources support an extended mine life. We've identified sufficient reserves to support commercial operations at Cantung beyond the end of 2017, and our intention is to continue exploration and definition diamond drilling to add to the reserves and resources and, ultimately, the mine's operating life," said the company's chairman and chief executive officer, Kurt Heikkila.
"These exploration results validate the significant, longer-term investment our company has made in Cantung over the past several years, and reaffirm our confidence in the mine's future. As one example of improvements generated by targeted investments, mill throughput now averages over 1,300 tons per day, an important increase over the earlier daily averages of 1,100 tons."
Prepared in accordance with F-1 requirements of National Instrument 43-101, the full report upon which these estimates are based will be filed on SEDAR within 45 days.
The updated mineral reserves and resources are summarized in the attached probable reserves table.
CANTUNG PROBABLE MINERAL RESERVES
AS OF JULY, 2014
Zone Probable mineral reserve
Tons Grade (WO3%) STUs
Amber 442,000 0.85 374,000
Below 3,700 44,000 0.87 38,000
E zone 55,000 0.99 55,000
Pit 190,000 0.77 147,000
Pug 886,000 0.80 707,000
West extension 159,000 0.77 123,000
Stockpile 41,000 0.77 32,000
Grand total 1,818,000 0.81 1,476,000
Mineral resources, where insufficient work has been completed to date to demonstrate economic viability, have been excluded in determining the mineral reserves. Additional work may demonstrate economic viability for part of these mineral resources.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Processing is carried out by gravity and flotation circuits. Final products include a premium gravity concentrate (G1), containing on average 65 per cent plus tungsten trioxide and a flotation concentrate containing on average 35 per cent tungsten trioxide. The key risks to mine the probable reserves economically are APT quotations (ammonium paratungstate), metallurgical recovery and ore grades over the remaining mine life. Operations are subject to normal mining risks, which are detailed in the company's management's discussion and analysis that is available on SEDAR and the company's website.
When production is taken into account, probable mineral reserves have increased since the previous reserve estimate of Jan. 31, 2011. The increases are the result of exploration of new zones and the inclusion of lower-grade tons rendered economical by higher APT prices and increased mill capacity.
Cantung is a fully permitted and operating mine, and the orebodies included in the mining reserves are situated in close proximity to current mine workings and accesses.
CANTUNG INDICATED MINERAL RESOURCES
AS OF JULY, 2014
Zone Indicated mineral resource
Tons Grade (WO3%) STUs
Amber 1,199,000 1.09 1,305,000
Below 3,700 30,000 1.43 43,000
E zone 319,000 1.04 331,000
Pit 192,000 0.85 163,000
Pug 1,851,000 0.86 1,587,000
West extension 208,000 1.25 260,000
Stockpile 41,000 0.77 32,000
Grand total 3,839,000 0.97 3,720,000
Mineral resources, where insufficient work has been completed to date to demonstrate economic viability, have been excluded in determining the mineral reserves. Additional work may demonstrate economic viability for part of these mineral resources.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
CANTUNG INFERRED MINERAL RESOURCES
AS OF JULY, 2014
Zone Inferred mineral resource
Tons Grade (WO3%) STUs
Amber 730,000 0.7 511,000
Below 3,700 140,000 1.0 140,000
E zone 120,000 0.9 108,000
Pit -- -- --
Pug 60,000 0.8 48,000
West extension 140,000 0.8 112,000
Dakota 170,000 0.8 136,000
Grand total 1,370,000 0.8 1,096,000
The data used in this update are based on surface diamond drilling, underground diamond drilling and underground mapping. A quality assurance/quality control program ensured the accuracy of assay results. Two prospective horizons were targeted, namely the ore limestone unit and the Swiss cheese limestone unit. A geological model was constructed that honoured lithological boundaries. A block model that was constrained by the geological limits was created using commercially available 3-D block modelling software (MineSight).
Qualified person
Finley J. Bakker, PGeo, the company's superintendent of technical services, is a qualified person as defined by NI 43-101, and has reviewed and approved the technical disclosure of the reserves and resources contained in the news release.
Mr. Heikkila said in conclusion, "This 43-101 shows that Cantung will continue to be an important source of tungsten for the world for years to come."
We seek Safe Harbor.
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