Coronet Metals, Mineworx to form JV for White Caps
2017-03-28 10:46 ET – News Release
Mr. Theo van der Linde reports
CORONET ANNOUNCES JOINT PROCESSING AGREEMENT ON ITS WHITE CAPS TAILINGS PROJECT
Coronet Metals Inc. has entered into a binding letter of intent to form a joint venture (JV) with Mineworx Technolgies Inc., a 100 per cent wholly owned subsidiary of Iberian Minerals Ltd., to process the estimated 250,000-tonne gold-bearing historical tails and mine dumps (1) at its wholly owned White Caps gold mining project in the Manhattan mining district of Nevada. Through Coronet’s wholly owned subsidiary, White Caps Mining Company, the company controls the historical tails and mine dumps.
Under the terms of the agreement, Coronet will provide all necessary financing for the testing and project development. When commercial production commences, the joint venture shall be responsible for all operational costs, and all revenues and profits will be shared on a 50/50 basis, after Coronet fully recovers its investment. Mineworx’s share of the JV will be reduced to 35 per cent after a two-year period.
Further to the Feb. 2, 2017 new release, the company successfully completed the first round of hydrometallurgical test results on the gold-bearing tailings and dumps. The hydrometallurgical testwork was performed by Mineworx and Met-Solve Laboratories (Langley, B.C.) with ALS Global (Vancouver) performing independent verification of the sample solutions and solids.
The patent-pending, environmentally friendly, non-cyanide-based EnviroLeach leaching formula was used on the gold-bearing tailings and mine dumps to determine and optimize recoveries of gold.
Coronet and Mineworx subsequently proceeded toward a second round of testwork, adjusting the EnviroLeach formula, and the results have either confirmed or improved upon the results from the first phase of testing. Given these grades and recoveries, it was decided to enter into a formal agreement to further investigate the economic potential of processing the material.
The joint venture will first build a small-scale 50-kilogram pilot plant at Mineworx’s Burnaby, B.C., facility to determine recoverability and reusability of the formula, gold recovery from solution, optimization, and preliminary economics. Following a successful small-scale pilot plant test, a one-tonne-per-day pilot plant will be built to test 40 tonnes of material to confirm scalability, recoveries and economics.
Fred Tejada, PGeo, a director of the company, is a qualified person under the meaning of Canadian National Instrument 43-101 and is responsible for the technical information contained in this news release.
Cautionary notes regarding the White Caps production
The White Caps mining project has no established resource and is without a known body of commercial ore. The decision to commence production at the White Caps mine and Coronet’s plans for small-scale mining and milling operations of the historical tailings and mine dumps were based on economic models prepared by Coronet in conjunction with management’s knowledge of the property and the prior limited recent operating history of the White Caps project. The production decision and operating plan for the processing of the tailings and mine dumps were not based on any preliminary economic assessment, a prefeasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there are increased uncertainty and economic and technical risks of failure associated with the production decision and operating plan, in particular, the risk that mineral quantities and/or grades will be lower than expected, the risk that construction or operations will be more difficult or more expensive than expected, the risk that the company will not be able to transport or sell the metal it produces on the terms it expects, or at all, the risk that, due to the absence of a detailed economic and technical analysis according to and in accordance with NI 43-101, the production and economic variables associated with mineral extractions and sale may vary considerably. Readers are cautioned that no reliable estimates of future production capability or the economics of any extraction activity can be made.
(1) References to tonnages are historical estimates. The estimated tonnage of 250,000 tonnes was provided by the two different mining engineering companies in October, 2011, that the company engaged to provide an estimate. The stockpile measurement is a technique to measure the volume and weight of commodity stockpiles. It is a scientific/instrumental method using total station equipment to determine the volume of the stockpile quantity. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves nor does Coronet treat the historical estimate as current mineral resources or mineral reserves. The company will have to conduct independent surveying, drilling, sampling and assaying of the tailings and mine dumps to determine the NI 43-101 tonnes and grades of the tailings and mine dumps. In conjunction with that, the company will have to continue with independent metallurgical analysis to verify recoveries. This work will form the basis to upgrade or verify the historical estimates as NI 43-101 mineral resources or mining reserves.
About Coronet Metals Inc.
Coronet Metals is engaged in the business of acquiring, exploring and developing natural resource properties, with a focus on precious mineral properties/projects which have the potential for both near-term cash flow and significant exploration upside potential. Coronet’s White Caps gold project is near the town of Manhattan in northern Nye county. The project is well in line with its strategy of acquiring precious metals mining projects which have the potential for both near-term cash flow and exploration upside.
The company has also launched a fresh new website.
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Gold is ending the week near a five-month high because of renewed safe-haven demand after the U.S. launched 59 missiles at a Syrian military airbase overnight. The market also added to its gains after the U.S. government reported only 98,000 jobs were created last month, much less than expected.
