Updated Resource Estimate for CuMo Project delivers significant increases in Measured and Indicated with a New Measured Category

Vancouver, B.C., July 8, 2015: American CuMo Mining Corporation (“CuMoCo” or the “Company”) (TSXV: MLY; OTC-Pink: MLYCF) is pleased to announce that Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo, President and Chief Executive Officer and CuMoCo’s qualified person under National Instrument 43-101, has reported the results of a new 43-101 compliant independent mineral resource estimate for the Company’s CuMo porphyry molybdenum-copper-silver deposit located in Idaho. Gary Giroux of Giroux Consultants, an independent, internationally recognized mineral industry consultant, completed the estimate. 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 new resource estimate confirms that the CuMo Project is the largest unmined open-pit molybdenum deposit in the world, and also one of the world’s largest silver deposits. A full 43-101 technical report will be filed on Sedar within 45 days.

The NI 43-101 estimation confirms that the CuMo deposit contains, at a Recovered Metal Value (RCV) $2.50 cut-off (all dollar amounts are expressed in US dollars):

Measured Indicated Meas.+Ind. Inferred Metal
438.2 1,952.9 2,391.1 2,426.9 million pounds of molybdenum oxide(MoO3)
292.3 1,301.9 1,594.2 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

Medium long-term metal prices of $10 moly oxide ($15 moly metal Mo), $3 copper, $12.50 per ounce silver and $15 per pound tungsten were used.   (The $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 measured and 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

“I am extremely pleased with the results of CuMo’s new 43-101 mineral resource estimate. The increases in the measured and indicated categories were the result of recent drilling being concentrated in the area of the core of the deposit. Together with a new measured category and an overall increase in the measured and indicated categories, the estimate significantly increases the project’s previous valuations,” stated Mr. Dykes.

“The new estimate represents a substantial milestone towards completing our feasibility study and achieving our goal of trading on a major international stock exchange,” added Mr. Dykes.

The following tables present three different cut-off values of $2.50, $7.50 and $12.50 at three different metal prices of low, medium and high for copper and molybdenum.

Note: Some of the totals may not sum exactly due to rounding.

Table 1 is for low metal prices of $7.50 Mo oxide and $2.50 copper.

Table 2 is for medium metal prices of $10 Mo oxide and $3.00 copper.

Table 3 is for high metal prices of $15 Mo oxide and $3.50 copper.

CuMo’s assay results also indicate the presence of significant quantities of rhenium, a special metal, which due to the lack of historical assays could not be estimated at this time.

Note: The mineralized zones have different metal distributions, thus the overall grades tend to be misleading due to an averaging of these zones. The deposit has a copper zone (with low molybdenum and higher copper grades) overlying a copper-moly zone (molybdenum medium and copper medium grades) in turn overlying a molybdenum zone (with high molybdenum and low copper grades).

For example:

The following blocks at $10 Mo oxide ($15 Mo), $3.00 copper, and $12.50 silver all have the same Recovered Metal Value (RCV) value of $23.77.

Zone MoS2 % Cu% Ag ppm
CuAg 0.024 0.28 5.16
CuMo 0.054 0.20 4.00
Mo 0.113 0.05 0.87
Average 0.064 0.18 3.34

The average overall grade is misleading as the block’s mine-ability is decided by value, not by average grade. Different recoveries for each of the elements are applied within each of the zones.

An interactive table will be available on CuMoCo’s website, www.cumoco.com that allows the user to enter various copper and moly prices as well as cut-off values to show the sensitivity of the resource to different metal prices and cut of values. Given the recent volatility in metal prices, this allows the user to see the effects of various different metal price scenarios on the overall resource.

Table 1 Mineral Resource for Low Prices

Low Price $7.50 Mo oxide, $2.50 Copper, $12.50 Silver, $15 Tungsten.
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 $2.50 307.00 0.079 0.08 0.06 48.70 0.28 290.81 436.22 460.54 18.72 29.90
Indicated $2.50 2,159.50 0.050 0.08 0.07 38.20 0.21 1,294.60 1,941.89 3,498.42 158.10 164.99
Measured + Indicated $2.50 2,466.60 0.054 0.08 0.07 39.50 0.22 1,585.41 2,378.11 3,958.96 176.81 194.89
Inferred $2.50 3,214.80 0.041 0.06 0.06 32.90 0.16 1,580.33 2,370.49 3,793.48 184.72 211.53
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 $7.50 270.40 0.087 0.08 0.06 51.00 0.30 282.01 423.01 410.94 16.24 27.58
Indicated $7.50 1,464.80 0.064 0.09 0.08 42.40 0.25 1,123.98 1,685.97 2,636.59 111.93 124.21
Measured + Indicated $7.50 1,735.20 0.068 0.09 0.07 43.70 0.26 1,405.99 2,108.98 3,047.53 128.18 151.79
Inferred $7.50 1,591.60 0.063 0.07 0.06 35.90 0.23 1,202.24 1,803.36 2,228.29 102.60 114.28
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 $12.50 185.80 0.107 0.07 0.06 51.90 0.35 238.34 357.52 267.53 10.30 19.28
Indicated $12.50 720.70 0.085 0.09 0.08 46.00 0.31 734.44 1,101.66 1,326.01 54.86 66.30
Measured + Indicated $12.50 906.50 0.090 0.09 0.07 47.20 0.32 972.78 1,459.17 1,593.54 65.16 85.58
Inferred $12.50 519.60 0.089 0.08 0.07 40.70 0.31 554.48 831.72 831.39 34.40 42.30


Table 2 Mineral Resource for Medium Prices

Medium Price $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


Table 3 Mineral Resource for High Prices

High Price $15.00 Mo oxide, $3.50 Copper, $12.50 Silver, $15 Tungsten.
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 $2.50 308.60 0.079 0.07 0.06 48.60 0.50 292.28 438.42 456.69 18.81 29.99
Indicated $2.50 2,288.60 0.048 0.08 0.07 36.80 0.34 1,317.08 1,975.61 3,570.15 162.87 168.44
Measured + Indicated $2.50 2,597.30 0.051 0.08 0.07 38.20 0.36 1,588.21 2,382.31 3,999.91 181.82 198.44
Inferred $2.50 3,567.20 0.038 0.06 0.06 31.00 0.26 1,625.23 2,437.85 3,923.89 197.68 221.16
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 $7.50 291.10 0.083 0.08 0.06 50.00 0.52 289.70 434.55 442.49 17.58 29.11
Indicated $7.50 1,894.90 0.055 0.09 0.07 40.10 0.39 1,249.59 1,874.39 3,259.31 141.49 151.97
Measured + Indicated $7.50 2,186.30 0.059 0.09 0.07 41.40 0.41 1,546.55 2,319.82 3,716.66 159.42 181.02
Inferred $7.50 2,348.00 0.051 0.07 0.06 34.80 0.34 1,435.72 2,153.58 3,193.23 147.92 163.42
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 $12.50 268.20 0.088 0.08 0.06 50.80 0.55 283.01 424.52 402.35 15.96 27.25
Indicated $12.50 1,444.20 0.066 0.09 0.07 42.00 0.45 1,142.81 1,714.22 2,512.89 106.57 121.31
Measured + Indicated $12.50 1,712.60 0.069 0.09 0.07 43.40 0.46 1,416.84 2,125.26 2,911.47 122.38 148.66
Inferred $12.50 1,543.70 0.065 0.07 0.06 35.90 0.42 1,203.02 1,804.52 2,006.75 92.75 110.83

Giroux Consultant’s resource estimate is based on drill core assay results from 26,606 meters (87,290 feet) of drilling in 32 holes CuMoCo completed between 2006 and 2012 and 10,178.8 meters (33,395 feet) in 23 diamond drill holes completed by AMAX between 1971 and 1981.  Due to mineral zonation, the deposit was split into five mineral zones, or domains, one grading downward into the next: a weathered near-surface zone, a Cu-Ag zone, a Cu-Mo zone, a Mo zone, and finally a footwall zone (MSI).  Copper and silver were highest within the Cu-Ag and Cu-Mo Domains, while molybdenum was highest in the Cu-Mo, Mo and MSI domains.  The estimated grade distribution for each variable was examined in each zone with erratic high grades capped.  Uniform 50-foot composites were formed that honored the boundaries of the five grade zones.  Variograms were assessed for each metal variable within each zone and anisotropic models were fit to the data.  Grade estimates for each variable were interpolated into 50 x 50 x 50 foot blocks by ordinary kriging with parameters derived from the variograms models.  Specific gravities were obtained from drill core and the metallurgical bulk sample and average values were applied to each zone.  Giroux then applied a very conservative approach to the resource classification by restricting the Measured classification to one-quarter of the variograms’ range, and Indicated classification to one-half of the variograms’ range only within the drilled area. All other blocks were assigned the Inferred classification. A preliminary conceptual pit design was applied to the overall block model and blocks outside of this preliminary design were removed from the results.

CuMoCo has substantiated that the 2015 CuMo estimated resource consists of approximately 60% of the identified mineralized system covered by the property. The current geological block model comprising 100% of the known mineralized system has a total of 1,251,248 blocks while Giroux estimated 720,749 blocks for a total of 58% of the blocks in the geologic model of the mineralized system.  A large portion of the 2015 exploratory drill program will be focused on drilling in the areas of the un-estimated blocks and improving the confidence in the resource.
CuMo is located in southwestern Idaho in an extensively logged, historic gold placer and lode mining area, readily accessible from nearby major centers of Idaho City and Boise. Mineralization consists of copper, molybdenum, silver, tungsten, rhenium and gallium. As a result of the multi-element nature of the mineralization, CuMoCo decided to include a copper equivalent.  See notes below for explanation of the calculation of the Recovered Metal Value (RCV) and copper equivalent (Cu Equiv.).  The presence of the by-product elements of copper, silver, tungsten, and rhenium is significant.

Results of the exploration to date indicate that CuMo has a configuration that will potentially allow for low-cost open-pit mining.  The thick mineralization is very continuous, indicates little internal waste, and is persistent over a broad area measuring 2 km by 3 km. Mineralization begins at the bedrock surface which is covered by a thin layer of overburden and broken rock ranging from 4 to 20 meters thick.  The deposit is currently 650-850 meters thick and open to the south and west.  If further exploration substantiates these overburden characteristics, development would involve an unusually low strip ratio.

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.

Logging and sampling of the drill cores are completed at CuMoCo’s secure facility at Garden Valley, Idaho.  The entire HQ diameter core was cut in half longitudinally using a diamond saw and sampled. Half the core is sent for analysis; the other half has been retained and stored at the secure core storage facility.  Following cutting, the samples are delivered directly by CuMoCo personnel to ALS Chemex in Elko, Nevada, a fully accredited analytical laboratory. They are first analyzed for 47 elements using a four acid digestion with analysis by Inductively Coupled Argon Plasma Optical Mass Spectrometer (ICP-MS).  Copper and molybdenum bearing samples are then checked by using a larger 5 gram sample and analyzed using pressed powder pellet X-Ray Fluorescence Spectroscopy (XRF).  In addition, duplicates, blanks, and standards are analyzed to ensure analytical accuracy and reproducibility. All rejects are being kept for further analysis and for use in metallurgical testing.

Drill hole location maps, an outline of the CuMo deposit and mineralized zone, an interactive drill hole model and a complete tabulation of significant intersections from the CuMo drill programs to date can be found on CuMoCo’s web site at www.cumoco.com.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and Chief Executive Officer and Director of CuMoCo is the designated qualified person for the CuMo Project.  Mr. Dykes prepared the technical information in this news release.  Mr. Gary Giroux is the independent designated qualified person who is responsible for the resource estimate.


RCV is a recovered metal value based on the grade and tonnage estimates and metal recoveries described below (see Table 5).

$2.50 RCV cut-off was chosen as the base cut-off grade for comparison with historic global resources, as it is the lowest cut-off value that has reasonable prospects of economic extraction, especially given the volatility in current metal prices.

Comment on current molybdenum prices: There is a significant disparity between the spot price of the metal and the actual price received by molybdenum producers. Because molybdenum is usually sold under long-term contracts, the spot price can move up and down but the amount paid to molybdenum producers remains constant. In the current market, the spot price is currently trading at an unsustainable low price as it is below what it costs to produce about 42% of the world’s production.   For example, China produces approximately 38% of the world’s molybdenum at a cost of between $12 and $13 per pound (Roskill, Platts metals), significantly higher than the current spot price of approximately $7.50.  Recently higher-cost producers such as Thompson Creek and Endako have shut down. As the long-term contracts expire, they will not be renewed at current prices. This will lead to a stabilization in the price of molybdenum as steel companies look to replace their supplies of molybdenum. Thus, a base price of $7.50 per pound molybdenum oxide ($11.30 /lb Mo) as a low price, a medium price of $10 per pound ($15 /lb Mo) and a high price of $15 per pound ($22.50 /lb Mo) are reasonable, given market terms and conditions.

Some of the totals may not sum exactly due to rounding.

Due to NI 43-101 rules, only the cut-off can be reported prior to feasibility, not the actual dollar values.  A Copper equivalent (Cu. Equiv.) is based on the following metal prices (all in US$): Copper $3.00/lb, Molybdenum Oxide ($10/lb), Silver $12.5/ounce and Tungsten 15.00 per lb.

Other factors include 1% = 20 pounds; 1 ppm = 1 gm/T; 1000ppb =1 ppm = 1 gm/T.

Molybdenum is sold as either ferro-molybdenite or molybdenum oxide.

To obtain the amount of molybdenum oxide that can be produced from MoS2, the following is required:
Convert MoS2 to Mo by dividing MoS2 by 1.6681 then convert to MoO3 (molybdenum oxide) by multiplying by 1.5. Therefore the amount of molybdenum oxide is pounds MoS2 times 1.5 / 1.6681.

Estimated metallurgical recoveries used in the calculations are shown below for each metal zone.

Recoveries are slightly lower than those currently reported by SGS in their recent metallurgical study, as they have been adjusted by Ausenco to reflect losses anticipated during the cleaning, roasting and smelting stages.

Zone Cu Recovery MoS2 Recovery Ag Recovery W Recovery
Oxide 60 80 65 0
CuAg 68 86 75 35
CuMo 85 92 78 35
Mo 72 95 55 35
MSI 72 95 55 35


Recovery (recv) for a metal is taken from the above table for each assay/block in a particular zone and is
value percentage/100

RCV= ((Cu*20*$* recv)+((MoS2*20*(1.5/1.6681)*$(MoO3)* recv)+(Ag/34.286*$* recv)+(W*$* recv*20/10000))

Recovered Cu. Equiv. = RCV / ($(Copper) *20)

Mineral Resources do not have demonstrated economic viability.

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.

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