Mr. Adam Lundin reports
JOSEMARIA DELIVERS ENVIRONMENTAL SOCIAL IMPACT ASSESSMENT TO THE PROVINCE OF SAN JUAN, ARGENTINA
Josemaria Resources Inc. completed and presented the environmental social impact assessment (ESIA) to Governor Sergio Unac at a ceremony held in San Juan province, Argentina, today.
Adam Lundin, chief executive officer, commented: "We are proud to present Governor Unac with the completed ESIA today as it is an important milestone in our partnership with the people of San Juan. The ESIA brings us a step closer to achieving our goal of developing Josemaria into a large-scale copper producer in time to meet rising worldwide demand and ensuring the surrounding communities and stakeholders receive direct and indirect benefits from the project. Haciendo que el futuro cobre vida! (We make the future come to life!)"
The Josemaria project, optimally located in the San Juan province of Argentina, is on track to become one of the next major copper-gold project developments globally. Project construction is expected to create over 4,000 jobs and over 1,000 operations jobs once in production.
The governor of San Juan province, Mr. Unac, commented: "There are many benefits to working alongside a company like Josemaria. They have demonstrated reliability, and their positive goals with regards to the environment and the community are in alignment with ours in San Juan. Their planned investment of $3-billion in our San Juan province would be the engine for improving the livelihoods of the stakeholders and the local communities. It will contribute significantly to the economic diversification of San Juan by creating more formal jobs and stable incomes for the work force and increasing the sales of goods and services of our local suppliers. Josemaria will provide a very significant social and economic contribution to our province, and will double our provincial exports and increase mining employment by over 30 per cent."
President and chief executive officer Adam Lundin will speak with Josemaria's Argentine general manager, Alfredo Vitaller, live, on Feb. 25 at 8 a.m. PST, to recap the highlights of the presentation ceremony. Tune in to Josemaria's Facebook, Twitter, LinkedIn or YouTube channel to view this exclusive live stream. For a reminder, subscribe to Josemaria's investor alerts.
About Josemaria Resources Inc.
Josemaria is a natural resource company, focused on developing its advanced-stage, 100-per-cent-owned Josemaria copper-gold project in the San Juan province of Argentina. A recently published feasibility study (see "NI 43-101 Technical Report, Feasibility Study for the Josemaria Copper-Gold Project, San Juan Province, Argentina," dated Nov. 5, 2020) demonstrates a simple and conventional open-pit copper-gold project with robust economics and a rapid payback period. Josemaria is a Lundin group company and works in partnership with the Lundin Foundation to execute best practices in responsible mineral development in Argentina, where the Lundins have a 30-year record of value creation.
MINERAL RESERVE STATEMENT FOR JOSEMARIA PROJECT, SAN JUAN PROVINCE, ARGENTINA, SEPT. 28, 2020
Category Tonnage Grade Contained metal
(Mt) Cu (%) Au (g/t) Ag (g/t) Cu lb Au oz Ag oz
(millions) (millions) (millions)
Proven 197 0.43 0.34 1.33 1,844 2.14 8.43
Probable 815 0.27 0.19 0.85 4,861 4.87 22.29
Total proven and probable 1,012 0.30 0.22 0.94 6,705 7.02 30.72
Notes to accompany Josemaria mineral reserve statement
1. Mineral reserves have an effective date of Sept. 28, 2020. The qualified person for the estimate is Robert McCarthy, PEng.
2. The mineral reserves were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Reserves, as prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
3. The mineral reserves were based on a pit design, which, in turn, aligned with an ultimate pit shell selected from a Whittle pit optimization exercise. Key inputs for that process are:
- Metal prices of $3 per pound copper, $1,500 per ounce gold and $18 per ounce silver;
Variable mining cost by bench and material type; average costs are $1.351 per tonne, $1.36 per tonne and $1.65 per tonne for ore, NAG waste and PAG waste, respectively;
Processing costs vary by metallurgical zone, ranging from $3.77 per t tonalite ore milled to $3.71 per t supergene;
- Infrastructure on and off-site at 43 cents per t milled;
Indirect costs of 46 cents per t milled;
Sustaining capital costs of 54 cents per t;
Pit overall slope angles varying from 33 degrees to 45 degrees;
- Process recoveries for Cu and Au are based on grade; the average recovery is estimated to be 85 per cent for Cu and 63 per cent for Au; Ag recovery is fixed at 72 per cent.
4. Mining dilution is accounted for by averaging grades in adjacent blocks across a thickness of 2.5 metres into each block (5.0 m per block contact).
5. The mineral reserve has an economic cut-off for prime mill feed, based on NSR (net smelter royalty), of $5.22 per t, $5.21 per t, $5.18 per t and $5.16 per t milled for tonalite, rhyolite, porphyry and supergene material, respectively, and an additional 53 cents per t for stockpiled ore.
6. There are 991 million tonnes of waste in the ultimate pit. The strip ratio is 0.98 (waste to ore).
7. All figures are rounded to reflect the relative accuracy of the estimate. Totals may not sum due to rounding as required by reporting guidelines.
Qualified persons and technical report
The technical information in this press release has been reviewed and approved by Bob Carmichael, PEng (British Columbia), the company's vice-president of exploration, and Dustin Smiley, PEng (B.C.), the company's engineering manager. Both Mr. Carmichael and Mr. Smiley are qualified persons under National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
We seek Safe Harbor.
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