Vancouver, B.C., August 18, 2015: American CuMo Mining Corporation (“CuMoCo” or the “Company”) (TSXV: MLY; OTC-Pink: MLYCF) announces that, further to its news release of July 8, 2015, it has received an independent mineral resource estimate report for the Company’s CuMo porphyry molybdenum-copper-silver deposit located in Idaho. Gary Giroux of Giroux Consultants and Jim Place of Geomorph Consulting, both independent and experienced mineral industry consultants, completed the report. As disclosed on July 8, 2015, the results represent significant additions to the 2011-12 resource estimate. Most notable are a new measured category and substantial increases to the silver, copper and tungsten measured and indicated estimates. The new estimate covers only approximately 60% of the mineralizing system’s footprint identified to date.
The report, titled “Summary Report on the CuMo Property, Boise County, Idaho” and dated August 15, 2015, has been filed on SEDAR and is posted on the Company’s web site.
The mineral resource estimate in respect of the CuMo deposit (at a Recovered Metal Value (RCV) US$2.50 cut-off) is as follows:
| Measured | Indicated | Meas.+Ind. | Inferred | Metal |
|---|---|---|---|---|
| 438.2 | 1,952.9 | 2,391.1 | 2,426.9 | million pounds of molybdenum oxide (MoO3) |
| 292.1 | 1,301.9 | 1,594.1 | 1,617.9 | million pounds of molybdenum (Mo) |
| 456.5 | 3,501.4 | 3,957.9 | 3,845.9 | million pounds of copper (Cu) |
| 18.8 | 160.3 | 179.1 | 189.9 | million ounces of silver (Ag) and |
| 30.0 | 166.6 | 196.6 | 216.6 | million pounds of tungsten (W) |
| 308.4 | 2,216.1 | 2,524.5 | 3,373.6 | million tons |
Note: there was a typographical error in the July 8, 2015 news release, as the estimate of measured molybdenum should have read 292.1 million lbs instead of 292.3 million lbs.
Medium long-term metal prices of US$10 moly oxide (US$15 moly metal Mo), US$3 copper, US$12.50 per ounce silver and US$15 per pound tungsten were used. (The US$2.50 cut-off is used for comparison purposes as it is consistent with all previous resource calculations.)
These new estimates represent the following increases over the previous indicated resource estimate (Snowdon 2011, updated 2012):
21.4% increase in ounces of Silver,
17.4% increase in pounds of Copper,
10.5% increase in pounds of Molybdenum Oxide,
19.5% increase in pounds of Tungsten, and
19.6% overall increase in tons
| Medium Long-Term Prices: $10.00 Mo oxide, $3.00 Copper, $12.50 Silver, $15 Tungsten. (Summarized on Page 1) |
|||||||||||||
| Cutoff | Tons > Cutoff | Grade > Cutoff | Contained Metal | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RCV $US | Million | MoS2 | Cu | Ag | W | Cu Eq | Million | Million | Million | Million | Million | ||
| Tons | (%) | (%) | (oz/t) | (ppm) | % | lbs. Mo | lbs MoO3 | lbs Cu | oz Ag | lbs W | |||
| Measured | $2.50 | 308.40 | 0.079 | 0.07 | 0.06 | 48.60 | 0.36 | 292.15 | 438.22 | 456.48 | 18.80 | 29.98 | |
| Indicated | $2.50 | 2,216.10 | 0.049 | 0.08 | 0.07 | 37.60 | 0.25 | 1,301.93 | 1,952.89 | 3,501.38 | 160.30 | 166.65 | |
| Measured + Indicated | $2.50 | 2,524.60 | 0.053 | 0.08 | 0.07 | 39.00 | 0.27 | 1,594.07 | 2,391.11 | 3,957.86 | 179.10 | 196.63 | |
| Inferred | $2.50 | 3,373.60 | 0.040 | 0.06 | 0.06 | 32.10 | 0.20 | 1,617.92 | 2,426.88 | 3,845.86 | 189.91 | 216.58 | |
| Cutoff | Tons > Cutoff | Grade > Cutoff | Contained Metal | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RCV $US | Million | MoS2 | Cu | Ag | W | Cu Eq | Million | Million | Million | Million | Million | |
| Tons | (%) | (%) | (oz/t) | (ppm) | % | lbs. Mo | lbs MoO3 | lbs Cu | oz Ag | lbs W | ||
| Measured | $7.50 | 282.00 | 0.085 | 0.08 | 0.06 | 50.60 | 0.38 | 287.41 | 431.12 | 428.67 | 16.94 | 28.54 |
| Indicated | $7.50 | 1,708.30 | 0.059 | 0.09 | 0.08 | 41.10 | 0.30 | 1,208.41 | 1,812.62 | 3,006.55 | 129.05 | 140.42 |
| Measured + Indicated | $7.50 | 1,990.40 | 0.063 | 0.09 | 0.07 | 42.40 | 0.31 | 1,495.82 | 2,243.73 | 3,435.21 | 145.99 | 168.96 |
| Inferred | $7.50 | 1,996.00 | 0.056 | 0.07 | 0.07 | 35.10 | 0.27 | 1,340.14 | 2,010.20 | 2,794.35 | 129.82 | 140.12 |
| Cutoff | Tons > Cutoff | Grade > Cutoff | Contained Metal | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RCV $US | Million | MoS2 | Cu | Ag | W | Cu Eq | Million | Million | Million | Million | Million | |
| Tons | (%) | (%) | (oz/t) | (ppm) | % | lbs. Mo | lbs MoO3 | lbs Cu | oz Ag | lbs W | ||
| Measured | $12.50 | 227.90 | 0.097 | 0.08 | 0.06 | 51.80 | 0.42 | 265.00 | 397.50 | 341.79 | 13.29 | 23.61 |
| Indicated | $12.50 | 1,050.60 | 0.076 | 0.09 | 0.07 | 44.20 | 0.36 | 957.35 | 1,436.03 | 1,891.14 | 78.14 | 92.88 |
| Measured + Indicated | $12.50 | 1,278.60 | 0.079 | 0.09 | 0.07 | 45.50 | 0.37 | 1,222.35 | 1,833.53 | 2,232.92 | 91.43 | 116.48 |
| Inferred | $12.50 | 996.40 | 0.078 | 0.06 | 0.06 | 37.60 | 0.34 | 931.81 | 1,397.71 | 1,275.37 | 57.54 | 74.93 |
Immediate plans for the CuMo deposit are to continue drilling to further delineate the mineralized zones and to convert the large part of the inferred resource to measured and indicated. Engineering and environmental work will aim to produce a feasibility study in two to three years. Drilling is scheduled to resume in mid-September.
About CuMoCo
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 a strong 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
Email: info@cumoco.com
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.
Forward-looking information
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 financial year ended June 30, 2014. 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.