Vancouver, British Columbia – June 12, 2017 – PPX Mining Corp. (the “Company” or “PPX”) is pleased to announce that Company is resuming operations at Mina Callanquitas. Rainfall has subsided in northern Peru and the Company has been able to evaluate the impacts to regional transportation infrastructure as it affects operations at Mina Callanquitas. The access road between Mina Callanquitas and the Malin Plant of Silver Cascas S.A.C., where the Company processes its bulk samples, has reopened to small vehicle traffic, i.e. pick-up trucks and SUVs. Additional road repairs are needed to allow the passage of large capacity trucks and to connect Mina Callanquitas to the regional road network; these repairs have commenced and are expected to be completed within the next two weeks.
- It is anticipated that road repairs will be sufficiently complete to begin shipping stockpiled gold and silver mineralized material from Mina Callanquitas to the Malin Plant within two weeks. Simultaneously, the Company will begin restarting test-mining and bulk-sampling operations at Mina Callanquitas. PPX plans to begin mining new bulk samples at Mina Callanquitas by the last week of June 2017.
- The Company is repairing the section of road between Mina Calanquitas and the regional road that connects the village of Callanquitas with Sayapullo, the road then continues to Nueve de Octubre, the location of the Malin plant. The first two kilometers of the road will also serve as the access road to the site where the Company proposes to permit, construct, and operate a processing plant to treat mineralized material from Mina Callanquitas on its own behalf.
- PPX utilized the recent temporary cessation of activities at Mina Callanquitas to thoroughly review the existing bulk-sampling and test-mining program. A new mine plan has been created utilizing more efficient extraction methods that should lower the cost per tonne of mined material. The new mine plan will allow the Company to achieve a bulk-sampling rate of 150 tonnes per day by the end of calendar Q4 2017. The plan also anticipates accelerating the mining rate to 350 tonnes per day by mid-2018 in order to prepare the mine for potential future commercial production.
- As previously announced, PPX plans to utilize the economic, engineering, and technical data generating during the test-mining and bulk-sampling program as the basis for a Pre Feasibility Study (PFS) to evaluate the economics of potential future mining operations at Mina Callanquitas. Bulk-sampling at Mina Callanquitas is scheduled to continue throughout 2017 and into 2018.
Brian J. Maher, President and CEO of PPX Mining commented: “PPX is pleased to restart operations at Mina Callanquitas. While the delay in our bulk-sampling and test-mining program has been unfortunate, we have utilized the time to fine-tune our mine plan in order to increase the bulk-sampling rate to 150 tonnes per day at a reduced per tonne unit cost. We will provide timely updates on the bulk-sampling program as it progresses through 2017. The Company also anticipates receiving permits to resume exploration drilling in the coming weeks. The resumption of exploration drilling, in order to expand and upgrade gold and silver resources at the Igor Project, has been a goal of the Company for several years and we look forward to the planned program”.
About PPX Mining Corp.: PPX Mining Corp. (PPX: TSX.V; BVL) is currently exploring and evaluating mine development opportunities at its Igor Mine Project in Northern Peru. The Igor project explores several high grade, gold and silver mineralized high-angle structures that host significant gold and silver resources. The Callanquitas Structure at the Igor Project contains Inferred gold and silver resources of 7,189,000 tonnes grading 1.94 gpt gold and 71.8 gpt silver containing 448,500 ounces of gold and 16,600,000 ounces of silver at a cutoff grade of 1.5 gpt gold equivalent. Included within this resource estimate is a higher grade zone consisting of 2,730,000 tonnes grading 2.73 gpt gold and 119.1 gpt silver containing 239,400 ounces of gold and 10,500,000 ounces of silver using a 3.0 gpt gold equivalent cutoff grade (Please see Technical Report as amended on September 27, 2013 entitled “Technical Report on the Callanquitas Structure, Igor Mine Project, Northern Peru, South America”, available on the Company’s web site or SEDAR). Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. The Company has begun work on its underground test mining and bulk sampling program which is designed to validate and upgrade the resource estimate, and generate data to evaluate the possibility of future mine development at Igor. The Company is accelerating its exploration program at Igor in order to fully evaluate the resource potential of the entire Igor project area.
All scientific and technical information in this press release has been reviewed and approved by Quentin J. Browne, P.Geo., Independent Consulting Geologist to PPX Mining Corp., who is a qualified person under the definitions established by National Instrument 43-101.
On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain disclosure in this release, may constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks are detailed from time to time in the Company’s filings with the appropriate securities commissions, and may include, among others, market conditions, and delays in obtaining or failure to obtain required regulatory approvals or financing. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.