Vancouver, B.C., January 12, 2015: American CuMo Mining Corporation (“CuMoCo” or the “Company”) (TSXV: MLY; OTC-Pink: MLYCF) announces excellent positive results from utilizing Ore-Sorting technology on samples from its CuMo deposit located in Idaho. Preliminary results reported by Sacre-Davey Engineering clearly establish that mineralization at the CuMo deposit is amenable to significant upgrading using Ore-Sorting technology.
The CuMo deposit has long been recognized as a stockwork vein deposit, consisting of narrow veins containing molybdenum and/or copper mineralization, surrounded by discard/waste material. With this vein mineralization structure, excellent metallurgical recoveries can be achieved with the latest Ore-Sorting technology, even at lower-grade levels. CuMoCo is performing larger bulk tests on its CuMo material with STEINERT Elektromagnetbau GmbH (www.steinertglobal.com), a world-recognized leader in Ore-Sorting with numerous installations worldwide.
New Ore-Sorting technology uses sophisticated X-ray technology (XRF/XRT) to identify rocks that contain processing grade minerals and separates them from those that do not. Previous methods of visual ore-sorting can now be performed with much greater accuracy and efficiency. Rock is placed on a conveyor belt following primary crushing (10 to 200 mm). It is then scanned, and based on a grade/value cutoff, either accepted for processing or rejected.
“Ore-Sorting marks the first of several optimizations for the CuMo deposit in preparation for its Feasibility Study. The updated resource calculation and Preliminary Economic Assessment (PEA) (November 8, 2015) combined with the excellent Ore-Sorting results show the potential of CuMo to compete on a cost-to-produce basis with not only primary molybdenum producers but also with copper projects producing molybdenum as a by-product,” stated Shaun Dykes, President and CEO of CuMoCo. “The results also provide support for CuMo’s potential as a large-scale, low-cost producer of molybdenum with significant copper, silver and rhenium by-products”, Dykes added.
Overall preliminary results indicate that by incorporating modern Ore-Sorting technology, CuMoCo can mine large tonnages of 150K to 250K per day while requiring only smaller tonnages of 50K to 100K per day to recover the majority of its metals. The overall objective is to have 25 to 50% of the material recovering 85 to 95% of the value, substantially increasing profitability and reducing capital and operating costs. Using the values in the PEA, a reduction in processing size from 150K to 50K per day could achieve a CAPEX savings for the CuMo Project of between US$800 million and US$1 billion, substantially reducing the cost per pound of molybdenum, net of by-products copper, silver and rhenium.
The following table shows the results of the preliminary testing for various Ore-Sorting scenarios, based on the amount of rock accepted for processing.
|Recovered Cu% Equiv. value||0.44||2.15||1.83||1.14||1.01||0.91||0.78||0.72|
|Equiv. Value recovered||100%||22.8%||38.6%||49.0%||54.6%||59.5%||68.9%||79.0%|
|Cu grade (ppm)||822.2||326.0||270.0||717.0||691.0||781.0||921.0||881.0|
|Mo grade (ppm)||849.9||4,722.0||4,011.0||2,405.0||2,133.0||1,897.0||1,588.0||1,448.0|
Note: all tons are short tons as per the USA system.
Due to the multi-element nature of the mineralization, a recovered metal value is used to separate the accepted material from the rejected. Also, it is important to note that under non-sorting conditions all the material would be sent for processing. Medium long-term metal prices of US$10 moly oxide (US$15 moly metal Mo), and US$3 copper were used. Silver is not included in the calculation as only copper and molybdenum are used in the sorting process.
The formula for calculating recovered metal value (XRF cutoff) is:
RCV= ((Cu/10000)*20*$(Cu)* Cu recv) + ((Mo/10000) *20*$(Mo)* Mo recv). Copper recovery (Cu recv) is 75% and moly recovery (Mo recv) is 90%.
Cu% Equiv. =RCV/(20*$(Cu))
Mo% Equiv. =RCV/(20*$(Mo))
Excellent results were demonstrated for the molybdenum sorting. Copper results were incomplete due to the large number of molybdenum samples in the sample set. Further work will be required to determine actual copper recoveries to the processing feed.
For example, at a $13 per ton XRF grade cutoff, 25% of the rock was accepted, representing a recovery of 54.6% of the Equiv. values, 21% of the copper and 62.7% of the molybdenum with the Equiv. values of the processing feed increasing by 227.79% from 0.44% to 1.01% for Cu% Equiv. and 0.089% to 0.202% for the Mo% Equiv. Copper grade reduced to 84.04% of original, while Molybdenum grade increased by 250.97%.
At a $7 per ton XRF grade cutoff, 50% of the rock was accepted, representing a recovery of 79.0% of the Equiv. values, 53.6% of the copper and 85.2% of the molybdenum with the value of the processing feed increasing by 161.59% from 0.44% to 0.72% for Cu% Equiv. and 0.089% to 0.144% for the Mo% Equiv.. Copper grade increased 107.15% while Molybdenum grade increased by 170.37%.
A total of seventy five (75) intervals (each 0.5 to 1 meter in length) from the measured and indicated mineralized zone were delivered to the University of British Columbia. The intervals represent material that was classified as mill feed within the original and recently updated PEA (see News Release dated November 9, 2015). An initial one hundred (100) rock samples of between 25 and 125 mm in size were randomly selected and tested at the University using X-ray and electromagnetic scanners. After scanning, the samples were then assayed to determine the copper and molybdenum grade.
The next stage in the testing will be to analyze all seventy five intervals using STEINERT’s XXS T and XXS F commercial scanners. Following this would be a large bulk (5 ton) sample test that will also be used in feasibility-level metallurgical testing. The end results combining both the ore sorting and metallurgical test work will then be used in a feasibility-level economic study.
More information about STEINERT’s ore-sorting technology can be found at: http://www.steinertglobal.com/us/en/products/sensor-sorting/steinert-xss-x-ray-sorting-system/
In other news, the Company announces the following:
All interest payments due in 2015 to IEMR (HK) for the US and Canadian denominated debentures have been made.
The CuMo deposit has now received all necessary permits to continue with advanced exploration. Work has begun preparing for the 2016 work program, consisting of drilling, engineering and environmental baseline studies. During 2016, the Company plans to further analyze additional optimizations designed to lower operating and capital cost estimates for the project. The target for these optimizations is to reduce potential cash operating costs per pound molybdenum to under US$1 per pound.
The targets and the potential optimizations are conceptual in nature as there has been insufficient work done to confirm the target values as defined by NI 43-101 and it is uncertain that further work would result in establishing these targets.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company is the designated qualified person for the CuMo Project, and prepared the technical information contained in this news release.
CuMoCo is focused on advancing its CuMo Project towards feasibility and establishing itself as one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Management is continuing to build an even stronger foundation from which to move the Company and the CuMo Project forward. For more information, please visit www.cumoco.com and www.cumoproject.com
For further information, please contact:
American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such the Company’s ability to move its CuMo Project to feasibility and production, and to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study and to put the CuMo project into production, that no labour shortages or delays are experienced, that plant and equipment function as specified that the Court will not intervene with the Company’s proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company’s publicly filed documents, including the Company’s Management’s Discussion and Analysis for the period ended September 30, 2015. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.