Vancouver, British Columbia – December 22, 2017 – PPX Mining Corp. (the “Company” or “PPX”) is pleased to announce that over 2,239 tonnes of bulk sample grading 9.38 gpt gold were mined and processed during the month of November 2017. Together with stockpiled “low-grade” material, the Company mined a total of 3,360 tonnes of bulk sample during the month, a rate of approximately 112 tonnes/day. In addition, over 353 metres of lateral development were completed during the month in order to increase the bulk sampling rate to 150 tonnes/day in December. The Company’s mining partner Proyectos La Patagonia S.A.C. (“PLP”) provided the Company with a detailed report on operations at Mina Callanquitas for November 2017 as part of our systematic test mining and bulk sampling program to evaluate the potential commercial development of the Callanquitas gold and silver resource. Highlights of the operational results for November include:
- During the month of November 2017, PLP reports that ninety truckloads containing 2,239 tonnes of gold mineralized rock were shipped to the Malin Plant of Silver Cascas S.A.C. (“Silver Cascas”) during the November operating period. The average gold grade of the mineralized material was 9.38 gpt gold, which is higher than the average grade of 8.56 gpt gold of bulk samples processed to date, reflecting the bulk sampling of higher grade portions of the Callanquitas Resource. Gold recoveries from processing the mineralized rock at the Silver Cascas processing plant ranged from 71.0 to 90.0%, consistent with gold recoveries observed in previous bulk samples. Approximately 1,124 tonnes of “lower grade” mineralized rock containing approximately 4.1 gpt gold were added to the mine stockpile for future processing. Since the inception of the test mining program, PPX has bulk sampled over 11,165 tonnes of mineralized material from the previously defined Inferred Resource at Mina Callanquitas. 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 remains on target to achieve our goal of mining 150 metric tonnes/day of bulk sample by the end of calendar Q4 2017.
- PLP also completed over 353 metres of lateral development during the month of November. This development was planned in order to accommodate the increase in bulk sampling rate during November and December 2017. It is important for the Company to test stoping methods under real-life mining conditions, i.e. 150 tonnes/day, in order to evaluate mining costs and suitability for future production in the Mina Callanquitas Pre Feasibility Study (“PFS”) that is expected to be completed in calendar Q1 2018.
The information in this press release and the test-mining/bulk sampling program do not represent a decision by the Company to commence commercial production at the Igor Project. The test-mining/bulk sampling program is designed to gather the required data to produce an accurate economic evaluation in the PFS.
Brian J. Maher, President and CEO of PPX Mining commented: “November 2017 bulk sampling results contain the highest gold grades mined to date at Mina Callanquitas. Total tonnage sampled was also a monthly record and we remain on track for achieving a 150 tonnes/day bulk sampling rate by the end of 2017. We are also on schedule for completing the Mina Callanquitas PFS in calendar Q1 2018 and understanding the full value of the mine and the overall Igor Project.”
As disclosed previously (November 1, 2017), the Company has commenced the permitting process for a gold and silver heap leach processing plant at the Company’s Igor Project in northern Peru. Given the time line of the permitting process and the planned completion of a Pre Feasibility Study (“PFS”) in Q1 2018, the Company has opted to start permitting in order to minimize or eliminate delays in constructing the processing plant should that option be recommended by the PFS or due to further delays in the construction of a separate processing facility by AM Mining SAC. The Company will permit the processing plant utilizing a Semi Detailed Environmental Impact Assessment (“EIAsd”) submitted to the Gerencia Regional de Energía, Minas e Hidrocarburos (“GREMH”), Department of La Libertad. The first step in the process, the submission of the Terms of Reference (“TOR”), has been completed by the Company and approved by GREMH La Libertad. The TOR outlines the basic engineering and design of the heap leach plant and also the specific steps required to complete the EIAsd.
As submitted in the TOR, PPX plans to build a 350 metric tonne/day heap leach processing facility on Company owned land at the Igor Project. The facility will include a primary and secondary rock crusher, loading conveyers, heap leach pads, a Merrill-Crowe precious metal recovery plant capable of producing dore on site, and associated support facilities. The crushing circuit will be permitted at 350 tpd but have sufficient excess capacity to allow production of up to 700 tpd of crushed material to facilitate future expansion if warranted. Plant layout is being permitted so that other processing facilities, i.e. a conventional milling and tank leaching circuit, can be added in the future without undue additional cost.
About PPX Mining Corp: PPX Mining Corp. (TSX.V: PPX.V, BVL: PPX) is a Canadian-based exploration and development company with assets in northern Peru. Igor, the Company’s 100%-owned flagship gold and silver project, is located in the prolific Northern Peru gold belt in eastern La Libertad Department. PPX is pursuing a two-prong strategy to further develop and explore the Igor Project. The Company has begun work on its underground test mining and bulk sampling program which is designed to upgrade the resource estimate and generate data to evaluate the possibility of future mine development at Igor through the PFS process. To date, PPX has processed over 10,044 tonnes of bulk sample averaging 8.56 gpt gold. Simultaneously, PPX is accelerating its exploration program at Igor in order to fully evaluate the resource potential of the entire Igor project area. The Callanquitas Structure is open along strike and at depth. Parallel structures are unexplored and, coupled with the Domo and Tesoros areas; these drill targets highlight the exploration potential at Igor. Evaluating mine development alternatives in parallel with exploration drilling provide dual catalysts for growth and increasing shareholder value.
Previous exploration on the Callanquitas Structure discovered a significant Inferred gold and silver resource: 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, amended September 27, 2013, available on the Company’s website 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.
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
FOR FURTHER INFORMATION, PLEASE CONTACT:
PPX Mining Corp.
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.