Mr. Wayne Livingstone reports
TRES CRUCES PROJECT UPDATE -- BARRICK MAKES OPTION PAYMENT ON TRES CRUCES
New Oroperu Resources Inc. has noted that Minera Barrick Misquichilca SA has made the 2017 payment of $250,000 (U.S.) to maintain its option on the Tres Cruces project.
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 orebody in the current open pit. 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 (CIL) processing circuit to treat the refractory material below the current open pit. On Feb. 15, 2017, Barrick announced that it is now evaluating a sequenced approach to extending the life of the Lagunas Norte mine by first optimizing the recovery of carbonaceous oxide ore contained in existing stockpiles by grinding and CIL extraction, followed by extraction and processing of refractory ores as described above.
K. Wayne Livingstone, president, said: "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. Further exploration would better define known shallow higher-grade zones and expand higher-grade deep mineralization. We look forward to Barrick expanding and defining further Tres Cruces resources and ultimately making a production decision."
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.
Tres Cruces gold mineralization comprises a minor oxidized component and a dominant sulphidic component. Metallurgical test work on Tres Cruces mineralization described in the company's NI 43-101 technical report by Peter A. Lacroix, described as follows, indicates good gold recoveries in sulphidic mineralization using a CIL flotation process. The minor component of oxide mineralization in the Tres Cruces deposit is assumed, in the report, to be treated with the sulphides. The oxidized component is predominantly located in the south part of the deposit at shallow depths and associated with a higher-grade part of the deposit. Further drilling of these shallow mineralized zones may better define areas with better grade and gold recoveries. Some examples of shallow mineralization in the south part (southwest zone) of the Tres Cruces deposit that have been previously announced in news release are as follows.
Date Drill hole From To Interval Grade
(m) (m) (m) (g/t Au)
June 18, 2007 DTC 238 48.1 72.5 24.4 2.55
DTC 241 39.0 55.5 16.5 2.67
DTC 243 44.0 65.0 21.0 3.60
DTC 255 45.0 65.5 20.5 3.06
Aug. 13, 2007 DTC 293 37.5 66.5 29.0 2.97
In the southwest extension zone
DTC 279 57.0 144.0 67.0 3.42
March 4, 2008 RTC 236 54.0 75.0 21.0 2.89
In the southwest extension zone
RTC 255 37.0 62.0 25.0 3.37
As mentioned in prior news release, June 8, 2016, the depth potential with better-grade gold and silver remains untested. 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 gold with a shallow component from 37 metres to 62 metres (25 metres) grading 3.37 grams per tonne gold and a deeper component with higher grade from 197 metres to 210 metres (13 metres) grading 16.17 grams per tonne gold 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 gold with 84.2 grams per tonne silver. Not all deep holes measuring the deposit were assayed for silver. Silver reports as a recovered product in the metallurgical test work, as reported in the New Oroperu technical report.
In summary, the Tres Cruces deposit has several mineralized zones that are not fully defined. The southwest extension zone and the southwest zone display shallow, better-grade mineralization that also contains 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.
New Oroperu has an NI 43-101 report entitled "Technical Report on the Tres Cruces Project, North Central Peru," dated Sept. 28, 2012, by Peter A. Lacroix, PEng, of Lacroix and Associates, 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 company looks forward to future developments on the Tres Cruces project with Barrick.
We seek Safe Harbor.
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