American CuMo Mining Corporation (“CuMoCo” or the “Company”) (TSXV: MLY; OTC-Pink: MLYCF) announces that its wholly-owned subsidiary, Idaho CuMo Mining Corporation (Idaho CuMo), has purchased from a group of local prospectors twenty (20) unpatented mining claims, covering an area of approximately 400 acres adjacent to the CuMo Project. The consideration payable for the claims was a onetime payment of the issuance of Idaho CuMo’s 7-year term silver convertible debenture valued at US $250,000, one million common shares of CuMoCo, and the sum of US $10,625 representing an advance on the initial 6-month interest payment on the convertible debenture. This purchase is subject to exchange approval.
“These claims lie approximately 10 miles northeast of Pioneerville, Idaho and immediately next to our CuMo Project. Collectively, they represent an important addition to our overall land position and an integral part of the continuing development of our CuMo Project,” said Shaun Dykes, President and CEO of CuMoCo.
The Company also announces that it has completed additional analysis on its Ore-Sorting results recently announced (please refer to the Company’s news release of January 24, 2017). The analysis shows that a two-sort process will be best for the CuMo deposit. The initial sort would sort material into waste and mill feed plus stockpile and the second sort would separate the feed from stockpile with feed being sent straight to processing and the remainder sent to a stockpile. Proceeding in this manner is designed to maximize the returns during the first 40 years of a possible operation. It should be noted that recent advancements in Ore-Sorting technology can perform both sorts at the same time. The tables below contain values from the case selected by the Company to be used to test bulk samples to establish the final values to be used in pre-feasibility and feasibility studies.
Table 1 shows the results of the testing for the selected Ore-Sorting scenario of 75% mined material accepted in initial sort and Table 2 shows 50% of the 75% accepted on the second sort, based on the amount of rock accepted for processing.
|Start grade||Metal % Accepted||Accepted grade|
|%||%||US$||Accept %||Accept %||Accept %||%||%||US$|
|CuAg||0.019||0.078||$ 9.35||68.29%||85.12%||83.79%||0.023||0.105||$ 12.27|
|CuMo||0.042||0.058||$ 10.43||83.45%||97.21%||86.92%||0.049||0.072||$ 12.55|
|Mo||0.051||0.052||$ 11.01||71.51%||95.29%||78.01%||0.068||0.051||$ 13.04|
|Overall||0.047||0.055||$ 10.78||75.00%||95.02%||83.55%||0.062||0.069||$ 13.90|
|Sort 1 accepted grade||Metal % Accepted||Accepted grade|
|CuAg||0.023||0.105||$ 12.27||10.98%||41.34%||14.79%||0.102||0.130||$ 24.35|
|CuMo||0.049||0.072||$ 12.55||40.36%||84.93%||51.54%||0.085||0.070||$ 16.85|
|Mo||0.068||0.051||$ 13.04||29.66%||85.75%||48.64%||0.140||0.081||$ 24.69|
|Overall||0.062||0.069||$ 13.90||37.50%||76.89%||35.49%||0.127||0.081||$ 23.07|
- all tons are short tons as per the USA system.
- Tables based on an initial sort of 75% of the material above a mine cutoff and a 50% second sort to separate mill feed from stockpile. Stockpile would be processed later.
- Mined material is based on the 150,000 tons per day case in the PEA, where 150,000 tons of mill feed and 150,00 tons of stockpile were proposed to be mined.
The tables show the volumes delivered to the mill and the metal content of those values. For example, in the case of the Mo zone, 29.66% of the material is direct feed and it contains 85.75% of the molybdenum and 48.64% of the copper in the original mined material. The initial mine grades were 0.051% Mo and 0.052% Cu with a recovered value of $11.01. Following the second sort, the grades are 0.140% Mo and 0.081% Cu with a recovered value of $24.69. This represents a grade increase of 274.5% in molybdenum, 147.3% in copper and 224.0% increase in value.
Due to the multi-element nature of the mineralization, a recovered metal value is used to separate the accepted material from the rejected. It is also important to note that under non-sorting conditions, all the material would be sent for processing. Low metal prices of US $5 moly oxide (US $7.5 moly metal Mo), and US $2.75 copper from the PEA were used as they are close to current prices. Silver is not included in the calculation as only copper and molybdenum are used in the sorting process.
The formula for calculating recovered metal value is:
RCV= ((Cu/10000) *20*$(Cu)* Cu recv) + ((Mo/10000) *20*$(Mo)* Mo recv). Copper recovery (Cu recv) is 75% and moly recovery (Mo recv) is 90%.
Finally, the Company announces that it has granted as of March 1, 2017, a total of 2,450,000 new stock options to directors, officers, and consultants. The options granted are for a period of five years expiring on March 1, 2022, at a price of thirty cents ($0.30).
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. CuMoCo also intends to advance its newly-acquired Calida Gold Project. Management is continuing to build an even stronger foundation from which to move the Company and its projects forward. For more information, please visit www.cumoco.com, www.idahocumo.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 as the Millennia Minerals satisfactorily completing due diligence and Company, Idaho CuMo, Poly and Millennia Minerals subsequently entering into a definitive agreement; Millennia Minerals completing the three private placements into Poly; 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, 2016. 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.