VANCOUVER, BC, July 22, 2021 /CNW/ - Orea Mining Corp.
("Orea") (TSX: OREA) (OTCQX: OREAF) (FRA: 3CG) is very
pleased to announce that the Administrative Court of Appeal of
Bordeaux has rejected the French
Government's appeal and request for a stay of execution of the
court rulings of December 24, 2020,
which ordered the renewal of the Montagne d'Or gold project mining
concessions, owned 44.99% by Orea and 55.01% by operator
Nord Gold plc (the "JV") (see
news releases dated December 31, 2020
and February 11, 2021).
In its ruling, the Court of Appeal concluded that the arguments
put forth by the French Government were without merit and that the
JV submitted complete applications and met all requirements for the
renewal of the mining concessions. This ruling provides strong
arguments in support of the additional court claim by the JV made
on June 25th for the
French Government to pay 10,000 Euro
a day in penalties, for every day that the mining concessions are
not renewed.
Rock Lefrançois, President and CEO of Orea,
commented "Two courts have now agreed with us that we
have the right to the renewal of the mining concessions to our
world-class gold deposit. We've prepared all applications for mine
construction and mining permits, including comprehensive
environmental studies, and are set to file as soon as the Supreme
Court puts an end to these delays. Fortunately, Orea is fully
carried until all permits are received and is not required to fund
the legal costs."
The Government has two months to file one final appeal to the
Supreme Court (Conseil d'Etat). An appeal, if filed, would,
in principle, have no suspensive effect; the Supreme Court would
not reconsider the facts and would limit its review to
interpretation of relevant law.
*About Montagne d'Or
Montagne d'Or is a permitting-stage open pit gold deposit that
hosts Measured Mineral Resources of 10.3 Mt at 1.804 g/t (600,000
oz), Indicated Mineral Resources of 74.8 Mt at 1.350 g/t (3.25 Moz)
and additional Inferred Mineral Resources of 20.2 Mt at 1.48 g/t
gold (960,000 oz), prepared in accordance with the requirements of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). The Mineral Resources are
confined within a pit shell defined by a gold price of US$1,300/oz and a cut-off grade of 0.4 grams per
tonne gold. Mineral Reserves have also been defined with Proven
Mineral Reserves of 8.25 Mt at 1.99 g/t (530,000 oz) and Probable
Mineral Reserves of 45.87 Mt at 1.50 g/t (2.2 Moz). The Proven and
Probable Mineral Reserves were estimated using a gold price of
US$1,200 per ounce at varied cut-off
grades from 0.552 to 0.665 grams per tonne gold, dependent on
lithological rock types, economics and estimated metallurgical
recovery. Montagne d'Or ore can be readily processed to recover the
contained gold and silver values using unit operations considered
standard to the industry. It is a large and unique Paleoproterozoic
gold-rich volcanogenic sulfide deposit, presently drill-defined
over a strike extent of 2,300 meters and to a vertical depth of 200
to 250 meters.
Montagne d'Or is located in northwestern French Guiana, 180 kilometers west of the
capital Cayenne and is accessed by 125 kilometers of laterite road
from the commune of Saint-Laurent
du Maroni, the second largest city in French Guiana. Nord
Gold first earned a 50.01% interest in the project in
September 2017 by spending
US$30 million and completing a
Bankable Feasibility Study ("BFS"). Nordgold then acquired
an additional 5% interest pursuant to a share purchase
agreement.
The 2017 BFS contemplates an open pit operation over a 12-year
mine life. Highlights of the BFS at a gold price of US$1,250 per ounce are as follows:
- After-tax Net Present Value (NPV) at a 5% discount rate:
US$370 million
- After-tax Internal Rate of Return (IRR): 18.7%
- After-tax payback period: 4.1 years
- Average annual gold production for years 1 to 10: 237,000
ounces
- Average gold grade for years 1 to 10: 1.73 grams per tonne
gold
- All-In Sustaining Cost (AISC) for years 1 to 10: US$749 per ounce of gold
- Initial capital expenditures (after surplus tax credit):
US$361 million
The BFS economic model gold price sensitivity shows that the
after-tax project NPV at a 5% discount rate changes approximately
US$1.24 million for every
US$1 change in gold price. At a gold
price of US$1,500 per ounce, the NPV
and IRR increase respectively to US$681
million and 26.7%.
Upside Potential of Montagne d'Or
There are several opportunities to increase the current Mineral
Reserves and mine life within the designed resource pit.
Approximately 2 million ounces of Mineral Resources are not
converted to Mineral Reserves, which include Inferred Mineral
Resources of 960,000 ounces of gold at average grade of 1.48 grams
per tonne gold. Infill drilling has the potential to convert some
of these Inferred Mineral Resources to higher resource
classification categories.
There is also the potential to lower the cut-off grade used for
the Mineral Reserve estimates, in consideration of the current
higher gold price, which could convert some additional Indicated
Mineral Resources into Mineral Reserves.
Limited drilling has been carried-out outside the resource pit.
The 2017 drilling program was successful in confirming gold
mineralization up to 400 meters on strike to the west (0.56 g/t
gold over 58.1 meters, including 2.32 g/t gold over 9.0 meters) and
at depth, 100 meters below the resource pit (0.92 g/t Au over 41.2
meters, including 1.92 g/t Au over 17.7 meters) (see Orea's news
release dated August 15, 2017).
For more information, see Orea's news release titled
"Columbus Gold Announces Positive Bankable Feasibility Study for
Montagne d'Or Gold Project, French
Guiana" dated March 20, 2017
and filed on SEDAR and the technical report prepared in accordance
with the requirements of NI 43-101 titled "NI 43-101 Technical
Report, Bankable Feasibility Study – Montagne d'Or Project,
French Guiana" by SRK Consulting
for Columbus Gold (now Orea Mining)
and Nordgold with an Effective Date of March
6, 2017, and a report date of April
28, 2017, which was filed on SEDAR on April 28, 2017.
Qualified Person
Rock Lefrançois, President & Chief Executive Officer of Orea
and Qualified Person under National Instrument 43-101, has reviewed
this news release and is responsible for the technical information
reported herein, including verification of the data disclosed.
About Orea Mining
Orea Mining is a leading gold exploration and development
company operating in a prospective and underexplored segment of the
Guiana Shield, South America. Its
mission is to develop gold deposits with a reduced environmental
footprint using innovative technologies, and upholding the highest
international standards for responsible mining. In French
Guiana, Orea holds a major interest in the world-class Montagne
d'Or mine development project, and is also advancing the Maripa
gold exploration project.
For more about Orea Mining visit the company's website at
www.oreamining.com
ON BEHALF OF THE BOARD:
Rock Lefrançois
President & CEO
Forward-looking statements
Certain statements made herein, including statements relating
to matters that are not historical facts and statements of the
Company's beliefs, intentions and expectations about developments,
results and events which will or may occur in the future,
constitute "forward looking information" within the meaning of
applicable Canadian securities legislation ("forward-looking
statements"). Forward-looking statements relate to future events or
future performance, reflect current expectations or beliefs
regarding future events and are typically identified by words such
as "anticipate", "could", "should", "expect", "seek", "may",
"intend", "likely", "budget", "plan", "estimate", continue",
"forecast", "believe", "predict", "potential", "target", "would",
"might", "will", and similar words, expressions or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook. These include, but are not limited
to, statements and information regarding: the Company's plans to
construct and develop the Montagne d'Or project, including
anticipated timing thereof; the satisfaction of regulatory
requirements in respect of the permitting and construction of the
Montagne d'Or project, including but not limited to, the submission
and processing of mine permit applications, the timing thereof and
the timing of completion of environmental and engineering studies;
the Company's ability to renew the concessions for the Montagne
d'Or project and to comply with the conditions thereof; the outcome
of the appeal process from the French court decision ordering the
renewal of the Montagne d'Or concessions and Orea's and the
Montagne d'Or joint venture's intentions regarding the defense
thereof, economic analysis for the Montagne d'Or project and
related exploration objectives and plans; the conversion of mineral
resources into mineral reserves and the conversion of inferred
mineral resources into higher resource classification categories;
the Company's objective of become an emerging gold producer; the
acquisition of exploration projects including terms of acquisition,
exploration or development plans, intentions to acquire additional
exploration or development interests and the implications thereof;
future exploration and mine plans, objectives and expectations and
corporate planning of the Company, future studies and environmental
impact statements and the timetable for completion and content
thereof and statements as to management's expectations with respect
to, among other things, the matters and activities contemplated in
this news release.
Forward-looking statements are made based upon certain
assumptions and other important factors that, if untrue, could
cause the actual results, performance or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such statements. Such
assumptions and analyses are made by the Company's management in
light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are reasonable and appropriate in
the circumstances. All assumptions and analyses are those of the
Company's. There can be no assurance that such statements will
prove to be accurate. Forward-looking statements are based on
numerous assumptions regarding present and future business
strategies, local and global economic conditions, and the
environment in which the Company will operate in the future,
including compliance by the Company with regulatory and permitting
requirements applicable in French
Guiana, the legal status of the Montagne d'Or concessions,
the sufficiency of Company's working capital; the Company's ability
to secure additional funding for the continued exploration and
development of its properties; the price of gold and other metals;
and the Company's ability to retain key personnel. You are hence
cautioned not to place undue reliance on forward-looking
statements.
Certain important factors that could cause actual results,
performance or achievements to differ materially from those in the
forward-looking statements include, among others, political and
economic risks in France,
political and economic risks in French
Guiana, risks related to the renewal applications for the
Concessions and the possible outcomes thereof; possible negative
outcomes of any appeals from the decision of the Administrative
Court of Cayenne in French Guiana;
regulatory risk including but not limited to unforeseen changes in
regulatory requirements, the Company's ability to enforce its
contractual and other legal rights to explore and exploit its
properties, risks related to exploration and development,
permitting and licensing risk, the estimation of mineral resources
and mineral reserves and related interpretations and assumptions,
future profitability of the Company, the ability to obtain
additional financing on a timely basis, the price of gold and
marketability thereof, government regulations including with
respect to taxes, royalties, land tenure and land use, title to the
Company's properties, currency exchange rates and fluctuations,
environmental risks, dilution resulting from the issuance of
additional securities of the Company, joint venture risks, reliance
on Nord Gold SE as operator of the Montagne d'Or project, the
availability of equipment, conflicts of interest, competition in
the mining industry, uninsured risks, market fluctuations, global
financial conditions, credit risk and risks arising from pandemics
and epidemics such as the COVID-19 pandemic. Although the Company
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. These statements, however, are subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements.
Readers are cautioned not to place undue reliance on
forward-looking statements. By their nature, forward-looking
statements involve numerous assumptions, inherent risks and
uncertainties, both general and specific, which contribute to the
possibility that the predicted outcomes will not occur. Events or
circumstances could cause the Company's actual results to differ
materially from those estimated or projected and expressed in, or
implied by, these forward-looking statements. Important factors
that could cause actual results to differ from these
forward-looking statements are included in the "Risk Factors"
section in Company's annual information form dated December 11, 2020 for the year ended September 30, 2020 ("AIF").
Readers are further cautioned that the list of factors
enumerated in the "Risk Factors" section of the AIF that may affect
future results is not exhaustive. When relying on the Company's
forward-looking statements and information to make decisions with
respect to the Company, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Furthermore, the forward-looking statements and
information contained herein are made as of the date of this
document and the Company does not undertake any obligation to
update or to revise any of the included forward-looking statements
or information, whether as a result of new information, future
events or otherwise, except as required by applicable law. The
forward-looking statements and information contained herein are
expressly qualified by this cautionary statement.
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SOURCE Orea Mining Corp.