Mr. Scott Trebilcock reports
KORE MINING FILES TECHNICAL REPORT FOR POSITIVE IMPERIAL GOLD PROJECT PRELIMINARY ECONOMIC ASSESSMENT
Kore Mining Ltd. has filed the technical report supporting the positive preliminary economic assessment for the company's 100-per-cent-owned Imperial oxide gold deposit, located in California.
The positive PEA, announced April 6, 2020
, demonstrated Imperial's potential to be a robust mid-tier gold mine with compelling project economics. In addition to the gold price, Imperial has upside potential from deposit extensions and exploration on the 100% owned Mesquite-Imperial-Picacho District which captures 28 kilometers of strike from the operating Mesquite mine (TSX:EQX) to the historic Picacho heap leach mine.
KORE's CEO Scott Trebilcock stated: "The Imperial PEA technical report is a key resource for investors and stakeholders seeking to understand Imperial as we move forward into permitting in mid-2020. With the recent strategic investment from Eric Sprott and Macquarie Bank we have mobilized resources to follow-up the Mesquite East exploration targets with additional geophysics and surface sampling while we permit drilling for fall 2020."
IMPERIAL PROJECT PEA HIGHLIGHTS:
Robust economics: US$ 343 million NPV5% post-tax with 44% IRR at US$1,450 per ounce gold
Low capital intensity project with only US$ 142 million pre-production capital cost
146,000 ounces gold per year over 8 years for 1.2 million ounces total production
Technically simple project: shallow open pit, run-of-mine heap leach with existing infrastructure
Value enhancement through Mesquite-Imperial-Picacho District exploration and resource expansion
There were NO significant changes to the previously released economic and technical data. The TR authors recommended that KORE undertake various technical and permitting activities including:
Execute infill and exploration drill programs (near mine targets);
Conduct environmental baseline studies and permitting;
Update mineral resource model with new drilling;
Conduct additional geotechnical, heap leach design and metallurgical test work; and
Undertake community engagement programs after completion of stakeholder mapping
QUALIFIED PERSONS/QUALITY ASSURANCE
The Preliminary Economic Assessment was prepared by Global Resource Engineering ("GRE") and SRK Consulting (Canada) Inc ("SRK") with Terre Lane, QP and Todd Harvey, PhD, QP being the Qualified Persons in charge of its preparation for GRE. The resource portion of the PEA is the same as the previous technical report dated December 30, 2019 and for this updated technical report, Glen Cole, PGeo. of SRK is the Qualified Person for SRK sections of the report. With regards to technical matters in this press release Marc Leduc, P.Eng. is the Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information in this press release is consistent with that provided by the Qualified Persons responsible for the PEA.
Further information about the PEA referenced in this news release, including information in respect of data verification, key assumptions, parameters, risks and other factors, can be found in the NI 43-101 technical report for the Imperial Oxide Gold Deposit filed on SEDAR (www.sedar.com) under KORE's profile and on the Company's website (https://www.koremining.com/imperial-project-pea).
The PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
KORE is 100% owner of a portfolio of advanced gold exploration and development assets in California and British Columbia. KORE is supported by strategic investors Eric Sprott and Macquarie Bank who, together with the management and Board own 65% of the basic shares outstanding.
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