00:06:58 EDT Thu 01 Oct 2020
Norsemont Mining Inc
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Shares Issued 15,213,496
Close 2020-07-30 C$ 2.51
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Norsemont discusses prior exploration at Choquelimpie

2020-07-30 17:59 ET - News Release

Mr. Allan Lamour reports

NORSEMONT PROVIDES UPDATE ON HISTORICAL RESOURCE AND PREVIOUS EXPLORATION WORK COMPLETED ON CHOQUELIMPIE

Norsemont Mining Inc. has provided an update on previous exploration work completed on the Choquelimpie gold-silver project.

The Choquelimpie project is a past-producing, district-scale project, covering an area of 5,757 hectares. The project is located 185 kilometres east of the city of Arica at an elevation of 4,600 to 4,900 metres in the Arica-Parinacota region in northern Chile.

There are over 1,700 drill holes totalling more than 123,000 metres of drilling on the project, which have been relied upon to prepare the historic resource estimate in 2017, as discussed herein.

                                         HISTORIC RESOURCE ESTIMATE

                                                 Choque model

Classification       Tonnage, M       Au (ppm)     Ag (ppm)       Cu (%)      Total ounces Au      Total ounces Ag

Indicated            62,344,040          0.72        12.44        0.054             1,435,541           24,928,841
Inferred            154,366,381          0.53         7.41        0.036             2,628,064           36,788,355
Total               216,710,421          0.58         8.86        0.041             4,063,605           61,717,196

                                                Espanola model 

Classification       Tonnage, M       Au (ppm)     Ag (ppm)       Cu (%)      Total ounces Au      Total ounces Ag

Indicated             1,488,095          0.58        11.26        0.059                27,898              538,712
Inferred                637,955          0.53        11.50        0.025                10,817              235,777
Total                 2,126,050          0.57        11.33        0.049                38,716              774,489

Grand total         218,836,471          0.58         8.88        0.041             4,102,320           62,491,684

Notes:

  • The attached table of resources is not intended to be declared in a public instrument such as a National Instrument 43-101 report.
  • Mineral resources are calculated as of the effective date Jan. 19, 2017.
  • Mineral resources which are not mineral reserves do not have demonstrated economic viability.
  • Mineral resources are reported as based upon a cut-off grade of 0.3 gram per tonne gold equivalent and volumes within a resource pit based upon a price of $1,300 (U.S.) per ounce and defined processing costs.
  • Mineral resources are reported by category based upon data spacing, averages of drill holes, level of confidence in the estimations of grades and traceability of drill hole information.
  • The attached table is extracted from the Amec Foster Wheeler report as presented in Spanish in the original report and has been translated herein.

On Jan. 30, 2017, Amec Foster Wheeler completed a preliminary resource estimate for the Choque and Espanola pits.

During the late 1980s and early 1990s, a joint venture amongst Royal Dutch Shell PLC, Northgate and Citibank produced approximately 400,000 ounces of gold and two million ounces of silver. These ores were mined from the upper levels of the Choque pit.

The Choquelimpie project was optioned to Rio Tinto in 2006 until 2008. Rio completed a comprehensive review and analysis of the project to evaluate the potential of a significant porphyry copper-gold target at depth.

The summary results of this historic estimate are set out in the attached table. The current resource is not National Instrument 43-101 compliant given that much of the drilling was performed prior to the development of generally accepted best practice standards and procedures. Further, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the company is not treating the historical estimate as current mineral resources or mineral reserves. Additional confirmation drilling, metallurgical study and modelling will be necessary to achieve a resource estimate which will be compliant with the requirements of NI 43-101. The Amec Foster Wheeler historic resource estimate applies a cut-off grade of 0.3 gram per tonne gold equivalent and assumes recoveries and operating costs.

Allan Lamour, chief executive officer of the company, stated: "The well-known Choquelimpie gold-silver project in Chile represents one of the most advanced and prospective exploration projects to come to the public market in a long time, positioning Norsemont to enter the big leagues of mining in a friendly jurisdiction. It hosts historic, non-compliant 4.1 million ounces of gold and 62 million ounces of silver, through the existing 1,700 drill holes. This is a golden opportunity to work on an advanced-staged project that has the potential for significant and rapid growth not only on the gold/silver side, but also on the copper-gold side, with the potential of a significant deep copper-gold porphyry."

Qualified person confirmation

The technical information in this news release has been reviewed and approved by Darby I. Fletcher, PhD, CPG, an outside consultant to the company, who is a qualified person as defined by NI 43-101.

We seek Safe Harbor.

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