Mr. K. Wayne Livingstone reports
NEW OROPERU: TRES CRUCES PROJECT UPDATE - BARRICK MAKES OPTION PAYMENT ON TRES CRUCES
Barrick has made the 2019 payment to maintain its option on 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 SA. 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 the Dec. 31, 2020, expiry date of the agreement, 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. The close proximity of Barrick's Lagunas Norte project creates potential operating synergies which could enhance the development opportunity for Tres Cruces.
New Oroperu has a National Instrument 43-101 entitled "Technical Report on the Tres Cruces Project, North Central Peru" dated Sept. 28, 2012, by Peter A. 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 Au cut-off in the measured and indicated category. The resources were estimated using data from 73,000 metres of drilling in 359 drill holes. A complete copy of the report is available at SEDAR or through the company's website.
Metallurgical testwork on Tres Cruces mineralization described in the company's National Instrument 43-101 technical report by Peter A. Lacroix described above, indicates 82-per-cent gold recoveries in sulphidic mineralization using a CIL flotation process. There is a component of oxide mineralization in the Tres Cruces deposit and it was assumed in the report that it would be treated with the sulphides. The oxide mineralization could also be processed separately by heap leaching.
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 higher-grade targets have not been completely drill tested and some holes have bottomed in mineralization.
The company looks forward to future developments on the Tres Cruces project with Barrick.
We seek Safe Harbor.
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