VANCOUVER, Oct. 10, 2017 /CNW/ - Blue Moon Zinc Corp. (TSXV:
MOON; US OTC: BMOOF) (the "Company") is pleased to announce
it has engaged Mine Development Associates, Inc. ("MDA") to carry
out a Preliminary Economic Assessment ("PEA") of the Blue Moon zinc
project in the foothills of California. MDA is an independent and
internationally recognized engineering firm based in Reno, Nevada. Completion of the PEA is
expected in the first quarter of 2018.
The updated NI 43-101 Mineral Resource estimate announced on
October 3, 2017 saw a 20% increase in
the indicated zinc resource to 377 million pounds of zinc and a 23%
increased in the inferred zinc resource to a total of 395 million
pounds of zinc, using a 4% zinc equivalent cut-off grade. The
updated Mineral Resource estimate will be utilized in the PEA.
Patrick McGrath, Chief Executive
Officer, stated "We are confident in MDA's experience to develop a
high quality technical report that will provide our shareholders
with a preliminary analysis of Blue Moon's economic potential. MDA
has a solid reputation and has worked extensively in the western
United States. We believe the Blue
Moon project represents an excellent near-term development project
for our shareholders." MDA's past clients include Golden Queen where MDA co-authored a 2015
feasibility study for the Soledad Mountain mine in Southern California that went into commercial
production in December 2016. MDA will
be assisted in the PEA by Samuel Engineering, an independent
engineering firm based in Denver,
Colorado.
The Blue Moon zinc deposit had modest production during World
War II with approximately 56,000 tons mined at 12% zinc. Advanced
stage work continued during the 1980s and 1990s by mid-tier
producers Imperial Metals and Boliden, including scoping and
optimization studies, metallurgy testing, baseline work and
culminated in the granting of a permit issued by the local
Californian County to build a shaft for underground development in
1991. The permit has since lapsed but the past production and
historical issuance of permits signifies the local County's past
support of the project's development.
The Blue Moon team includes two members with comprehensive
knowledge of mining in California
including building and revitalizing mines. Lutz Klingmann permitted, built and brought into
commercial production the Soledad Mountain mine as Chief Executive
Officer of Golden Queen and
Lawrence O'Connor restarted the
Mesquite mine as VP Operations of Western
Goldfield (now New Gold).
About Blue Moon
The 100% owned Blue Moon polymetallic deposit has a Mineral
Resource estimate of 3.7 million tons with a grade of 8.3% zinc
equivalence including approximately 377 million pounds of zinc in
the Indicated category and 4.1 million tons with a grade of 7.8%
zinc equivalence including approximately 395 million pounds of zinc
in the Inferred category with significant credits of copper, silver
and gold. The resource is open at depth and along strike and
historical metallurgical testing indicates excellent recovery and a
clean zinc concentrate. A NI 43-101 report detailing the resource
and summarizing metallurgical recoveries will be available on the
company's website (www.bluemoonmining.com) and on SEDAR within 45
days of October 3, 2017. The Company
plans to advance the Blue Moon project through to feasibility,
permitting and ultimately production.
Qualified Persons
Jack McClintock, P. Eng, a
Director of the Company, is a qualified person as defined by NI
43-101, has reviewed the scientific and technical information that
forms the basis for this press release.
Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of mineral resources will be converted to mineral
reserves. Inferred Mineral Resources are based on limited drilling
which suggests the greatest uncertainty for a resource estimate and
that geological continuity is only implied. Additional drilling
will be required to verify geological and mineralization continuity
and there is no certainty that all of the inferred resources will
be converted to measured and indicated resources. Quantity and
grades are estimates and are rounded to reflect the fact that the
resource estimate is an approximation.
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. This release includes certain statements
that may be deemed to be forward-looking statements. All statements
in this release, other than statements of historical facts that
address the Company's intention with the Blue Moon project, access
to capital, regulatory approvals, exploration and development
drilling, exploitation and development activities and events or
developments that the Company expects are forward-looking
statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, continuity of mineralization, uncertainties
related to the ability to obtain necessary permits, licenses and
title and delays due to third party opposition, changes in
government policies regarding mining and natural resource
exploration and exploitation, and continued availability of capital
and financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date it is
expressed in this press release, and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws. For
more information on the Company, investors should review the
Company's continuous disclosure filings that are available at
www.sedar.com.
SOURCE Blue Moon Zinc Corp.
