Vancouver, British Columbia – October 26, 2016 – PPX Mining Corp. (the “Company” or “PPX”) is pleased to announce that underground test mining and bulk sampling have commenced at Mina Callanquitas on its Igor Project in northern Peru. The Company’s mining partner Proyectos La Patagonia S.A.C. (“PLP”) has received the Autorizacion Inicio de Actividades (AIA, Authorization to Begin Activities) from the regional authorities in the Department of La Libertad. Underground development to facilitate our previously announced bulk sampling program, has started with initial work focused on the 3390 level of Mina Callanquitas.
- PLP has begun excavating the 3390 level ramp and will immediately begin developing sublevel three for test mining and bulk sampling. The sub-vertical geometry of the Callanquitas structure combined with favorable topography will allow PLP to begin extracting gold and silver mineralized material rapidly in preparation for large-scale bulk sampling.
- Gold and silver mineralized material mined during the initial stages of development of the 3390 level will be stockpiled. PPX intends to process this preliminary bulk sample at a nearby toll processing facility in order to calibrate the facility and verify its operating parameters. The stockpiled development rock is mineralogically and metallurgically similar to the bulk of the Callanquitas resource and is therefore ideal for evaluating the suitability of the toll processing facility for testing bulk samples of Callanquitas-style gold and silver mineralization. It is anticipated that several thousand tonnes of stockpiled gold and silver mineralized material will be processed during this evaluation phase.
- The Company and PLP intend to accelerate mine development by starting an additional ramp on the 3440 level. Utilizing access from both levels, the Company expects to be able to extract up to 150 tonnes per day of bulk sample by Q1 2017. This will enable the extraction of large volume bulk samples from the gold and silver resource blocks outlined by surface diamond drilling. The bulk samples will be utilized to verify the resource model, generate real-life mining cost profiles, and validate previously completed bench-scale metallurgical testing.
- 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.
- All of the Company’s capital requirements for test mining and bulk sampling program have been met by previously completed private placements with PLP or its affiliates. PLP will be providing the balance of the upfront and working capital required for mine development, therefore PPX will have no further capital commitments for test mining at Mina Callanquitas.
Kimberly Ann Arntson, CFO and Vice President – Corporate Development of PPX Mining Corp commented: “Today is an important day for our shareholders and for the history of our Company. With the commencement of underground bulk sampling at Mina Callanquitas, we begin a new phase in the growth of our Company and begin a corporate transition. Our capital commitments for test mining have been met and, with the completion of our recent financing with RIVI Capital, the company is poised to move forward with a strong balance sheet.”
Brian J. Maher, President and CEO of PPX Mining Corp further commented: “We expect to begin shipping gold and silver mineralized bulk samples from Mina Callanquitas to a nearby processing facility very soon and we look forward to reporting the initial results of processing this rock. We will accelerate test mining, targeting 150 tonnes per day by Q1 2017 in order to facilitate large-scale bulk sampling throughout 2017. Coupled with a revitalized exploration program at Igor, the company is positioned to make major steps forward in realizing the full value of our Igor Project in 2017.”
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 Peruvian Precious Metals, 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
FOR FURTHER INFORMATION, PLEASE CONTACT:
PPX Mining Corp.
Kimberly Ann Arntson, Chief Financial Officer and Vice President – Corporate Development
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, including statements regarding the terms of the private placement, the possible completion of the private placement and the intended use of proceeds from the private placement, 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, including that the Company is able to obtain any required regulatory approvals to complete the Company’s planned private placement, that the Company is able to complete the private placement, and that the Company will be able to use the proceeds from the private placement as intended. 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, that the private placement will not complete, 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.