Sonoro Gold Corp. (TSXV: SGO |
OTCQB: SMOFF | FRA: 23SP) (“Sonoro” or the “Company”) is pleased to
report the filing of a technical report titled “Updated Preliminary
Economic Assessment of the Cerro Caliche Project, Sonora, Mexico”
(the “PEA”) with an effective date of May 9, 2022.
The PEA has been prepared in accordance with the
requirements of National Instrument 43-101 by D.E.N.M. Engineering
Ltd. of Burlington, Ontario (“D.E.N.M.”), with David Salari, P.Eng.
as the lead author. William Lewis, P.Geo., of Micon International
Limited of Toronto, Ontario (“Micon”) was the Qualified Person
responsible for the mineral resource estimate.
The updated PEA contemplates an optimized mine
plan for an open pit, heap leach mining operation with an initial
two-year production rate of 8,000 metric tonnes per day (“mtpd”)
and an increase to 15,000 mtpd for the remaining Life of Mine
(“LOM”).
The PEA can be found under the Company’s profile
at www.sedar.com and on Sonoro’s website at www.sonorogold.com.
PEA Highlights:
- Pre-Tax net present value
discounted at 5% (“NPV5”) of USD $84.4 million
- Pre-Tax Internal Rate of Return
(“IRR”) of 74.9%
- After-Tax NPV5 of USD $53.5
million
- After-Tax IRR of 45.6%
- Gold recovery of 74% and silver recovery of 27%
- 7-year LOM with 344,500 ounces
(“oz”) of gold equivalent (“AuEq”)
- LOM annual average production of
45,000 oz AuEq (Years 1-7)
- Years 1 to 3 annual production of
46,000 oz AuEq at 0.58 g/t AuEq
- Initial CAPEX costs of USD $26
million, including USD $3 million in contingency
- Sustaining capital costs of USD
$7.4 million
- Cash(1) costs of USD $1,206/oz
AuEq
- AISC(2) of USD $1,333/oz AuEq
- Payback period of 2.2 years
Note: All currencies are reported in U.S.
dollars. Base case parameters assume $1,750/oz of gold and $22/oz
of silver.(1) Cash costs include mining, crushing, processing,
assaying, and administration.(2) All-in-Sustaining Costs include
cash costs plus sustaining, refining and reclamation costs, as well
as 2% royalties.
Mineral Resource EstimateThe
updated PEA utilizes mineral resource estimate contained in the
Company’s initial PEA, dated October 29, 2021, and is based on
the Company’s September 2018 to April 2021 drilling campaigns.
Readers are cautioned that these potential
mineralization ranges are conceptual in nature and that despite
being based on a limited amount of exploration drilling and
sampling outside the current resource pit shells, it is uncertain
that further exploration will result in the mineralization targets
being delineated as a mineral resource.
Drilling DataApproximately
7,200 meters of additional drilling recently completed at Cerro
Caliche was not included in the current mineral resource estimate.
The new geological data is to be included in an updated resource
estimate scheduled to be filed in the fall of 2022.
Since drilling resumed in November 2021, the
Company has announced multiple high-grade intercepts and expansions
of several known mineralized zones in the southwestern region of
the property. The potential economic impact of the updated resource
on the proposed heap leach mining operation will be contemplated in
a further technical report.
PEA SummaryThe PEA is
preliminary in nature and includes inferred resources that are
considered too speculative to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves and there is no certainty the estimates presented in the
PEA will be realized.
Qualified Person StatementDavid
Salari, P.Eng., of D.E.N.M. Engineering Ltd. and William Lewis,
P.Geo., of Micon International Limited, both of whom are
independent of the Company, have reviewed and approved the
scientific and technical information herein regarding the Company’s
Cerro Caliche Project. William Lewis, P.Geo., was responsible for
the updated Cerro Caliche Mineral Resource Estimate and, along with
David Salari, P.Eng., has approved the information pertaining to
the Cerro Caliche Project in this news release. Each of David
Salari, P.Eng. and William Lewis, P.Geo., is a Qualified Person as
defined in NI 43-101.
Stephen Kenwood, P.Geo., a Director of Sonoro
Gold, is a Qualified Person within the context of National
Instrument 43-101 (NI 43-101) and has read and approved this news
release.
About D.E.N.M. Engineering
Limited
D.E.N.M. Engineering
Ltd. is a niche engineering company servicing the mining / mineral
processing sector that specializes in Engineering & Design,
Equipment Supply, Project & Construction Management,
Commissioning and Operations Support. D.E.N.M. Engineering Ltd. has
proven success while championing projects for over fifteen years in
Canada, USA, Mexico and Central America.
In addition, D.E.N.M.
Engineering, with its principal and independent specialists,
performs NI 43-101 compliant assessments and studies in the
sections of mineral processing metallurgical design, process
design, capital and operating costing and cash flow analysis.
About Micon International
Limited
Micon International
Limited (Micon) has provided consulting services to the worldwide
mining industry since 1988 from its offices in Canada and the UK.
Micon comprises a multi-disciplinary group of highly qualified and
experienced professionals who are guided by the Company principles
of Integrity, Competence and Independence.
Micon’s experience in
Mexico ranges from exploration programs and resource estimation to
technical studies on operating mines as well as due diligence for
precious metals and base metals projects. Micon has worked in most
of the major mining districts throughout Mexico, as well as some
lesser-known historical districts. In northern Mexico, assignments
have been undertaken in the gold and silver districts of Sonora,
Durango, Zacatecas, Chihuahua and Baja California.
About Sonoro Gold Corp.Sonoro
Gold Corp. is a publicly listed exploration and development company
holding the near development stage Cerro Caliche project and the
exploration stage San Marcial properties in Sonora State, Mexico.
The Company has highly experienced operational and management teams
with proven track records for the discovery and development of
natural resource deposits.
On behalf of the Board of Sonoro Gold
Corp.Per: “Kenneth
MacLeod” Kenneth
MacLeod President
& CEO
For further information, please contact: Sonoro Gold Corp. -
Tel: (604) 632-1764 Email: info@sonorogold.com
Forward-Looking Statement
Cautions: This press release may contain "forward-looking
information" as defined in applicable Canadian securities
legislation. All statements other than statements of historical
fact, included in this release, including, without limitation,
statements regarding the Cerro Caliche project, and future plans
and objectives of the Company, including the NPV, IRR, initial and
sustaining capital costs, operating costs, and LOM production of
Cerro Caliche, constitute forward looking information that involve
various risks and uncertainties. Forward-looking information is
based on a number of factors and assumptions which have been used
to develop such information but which may prove to be incorrect,
including, but not limited to, assumptions in connection with the
continuance of the Company and its subsidiaries as a going concern,
general economic and market conditions, mineral prices, the
accuracy of Mineral Resource Estimates. There can be no assurance
that such information will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such forward-looking information. Important factors that could
cause actual results to differ materially from the Company's
expectations include exploration and development risks associated
with the Company’s projects, the failure to establish estimated
Mineral Resources or Mineral Reserves, volatility of commodity
prices, variations of recovery rates, and global economic
conditions. The forward-looking information contained in this
release is made as of the date of this release. The Company
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 or the
policies of the TSX Venture Exchange. Readers are encouraged to
review the Company’s complete public disclosure record on SEDAR at
www.sedar.com.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the
adequacy or accuracy of this release.
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