VANCOUVER, BC, May 8, 2023
/CNW/ -- Lodestar Battery
Metals ("Lodestar" or the "Company") (TSX-V:
SVTN) Is pleased to announce it has filed the independent technical
report for the Peñasco Quemado Project ("PQ" or the
"Project") updated Mineral Resource Estimate ("MRE").
The report titled "NI 43-101 Technical Report for the 2023 Mineral
Resource Estimate on the Peñasco Quemado Project, Sonora, Mexico" is dated April 17, 2023 (with an effective date of
March 21, 2023) (the "Technical
Report"). The Technical Report can be found on the Company's
website (www.lodestarbatterymetals.ca) or under the Company's
issuer profile on SEDAR (www.sedar.com).
The Technical Report was prepared in accordance with National
Instrument 43-101 ("N.I. 43101") Standards of Disclosure for
Mineral Projects by Micon International Ltd. ("Micon") of
Toronto, Canada. Highlights of the
MRE include:
- 6.2 million ounces ("Moz") silver classified as inferred
("inf") at Peñasco Quemado with an average grade of 168.6
grams per tonne ("g/t") silver.
- Conservative base-case estimate uses 85 g/t silver cut-off
grade.
- Relatively low strip ratio of 2.25:1 for Peñasco Quemado
resource.
- Future resource growth potential remains at Peñasco
Quemado.
"We're thrilled to have filed an updated 43-101 Technical Report
for our Peñasco Quemado Project in Sonora, Mexico," said Lowell Kamin, President, CEO & Chairman of
the Board of Lodestar. "An updated Mineral Resource Estimate is
important to show our investors and other key stakeholders that
there's legitimate value in our properties. We look forward to
exploring our established resource zones as we continue to consider
our diverse portfolio of Company assets."
Peñasco Quemado Project Mineral Resource Estimate.
The 2023 MRE objective was to upgrade the historic Peñasco
Quemado resource estimate to current standards under the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM"). The most
notable change in the 2023 MRE is the significant decrease in
resource tonnage and a notable resource classification category
limited to only inferred resources. The Peñasco Quemado resource
now contains 6.2 Moz silver in 1.1 Mt at an average grade of 168.6
g/t silver in the Inferred category.
In addition to its defined silver resources at PQ mineralized
zone, a separate pit was generated for the PQ South zone; however,
this does not meet the requirement for being potentially economic,
as it generated a negative net present value. Thus, a
pit-constrained mineral resource could only be reported for the PQ
mineralized zone. This leaves Lodestar with a significant
opportunity to expand and build upon the established resources at
the Peñasco Quemado property: Further drilling in and around this
area may be able to enlarge the existing PQ mineral resource, and
this would assist in potentially bridging the gap between the two
detached mineralized zones and increasing the resource potential
beyond the extent of the current pit shell.
Micon's QPs have conducted an independent review of the
exploration potential of the Peñasco Quemado Project, using
historically available information and discussions with Lodestar
personnel.
Table 1: Mineral Resource Estimate for the Peñasco Quemado
Project at 85 g/t Ag Cut-off as of March 21, 2023
Pitshell
|
Resource
Category
|
Zone
|
Stripping
|
Tonnage
(Mt)
|
|
Average
Grade
|
Metal
Content
|
Ratio
|
Ag
(g/t)
|
Ag (Million
oz)
|
Inpit
|
Inferred
|
PQ
|
2.25
|
1.1
|
168.6
|
6.2
|
|
|
|
|
|
|
|
|
Notes:
- The effective date for the Peñasco Quemado Project mineral
resource estimate is March 21,
2023.
- The mineral resources are reported based on open-pit mining
method scenarios.
- The pit was constrained based on a bench slope of 30° for the
overlying alluvium and 45° for the remaining lithologies.
- The mineralized wireframes (PQ zone) within which the resources
are contained were modelled on a cut-off silver grade of 25
g/t.
- Grade capping was applied to reduce the influence of outlier
samples, and a cap of 460 g/t silver was applied for the PQ
zone.
- The economic parameters used to define mineral resources are a
metal price of USD25 per troy ounce
of silver, a mining cost of USD2/t, a
processing cost of USD40/t and a
G&A cost of USD5/t, for a total
of USD47/t mined and processed. The
silver recovery was estimated at 69%.
- The resource is estimated for silver only, as manganese is not
recoverable into a salable product for Peñasco Quemado
Project.
- The entire mineral resource has been categorized in the
Inferred category.
- The mineral resources presented here were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM),
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council on May 10, 2014.
- 0. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. Therefore, the QP believes that,
at this time, the mineral resource estimate is not materially
affected by environmental, permitting, legal, title,
socio-political, marketing, or other relevant issues. However, as
the Peñasco Quemado Project advances, further required studies in
these areas or other socio-political factors may affect the
resource estimate.
- 1. The mineral resource estimate has been prepared without
reference to surface rights or the potential presence of overlying
infrastructure.
- Figures may not total due to rounding.
Infographic
- https://mma.prnewswire.com/media/2071076/Lodestar_Battery_Metals_Corp_Figure_1_Infographic.jpg
Figure 1: 3D Perspective of the Peñasco Quemado Project Drill
Hole Locations and the Two Mineralized Envelopes
Infographic
- https://mma.prnewswire.com/media/2071077/Lodestar_Battery_Metals_Corp_Figure_2_Infographic.jpg
Figure 2: 3D Perspective of the PQ Mineralized Zone Block
Model, also showing the area of Pit -Constrained Resources
Data Validation
The 2023 MRE considered drilling information up to and including
the most recently completed program in 2019, as well as geological
information from previous work programs completed at the property.
A total of 138 drill holes have been completed on the property.
Drilling data supporting the 2023 MRE includes information from
historic drilling data from 97 holes, a total of 1548 samples for
1,956m at PQ main zone, and 57
samples for 84.5 m at the PQ south
zone contribute to the MRE. Nominal drill hole spacing is
approximately 50 x 100 m within the
inferred portions of the 2023 MRE. Verification of drilling
exploration data used for the 2023 MRE was performed by
William J. Lewis, B.Sc. P.Geo.
(Micon), an independent Qualified Person.
Sensitivity Analysis
Micon's QPs have performed a resource sensitivity analysis for
the PQ zone, based on a silver price range from 15 USD/oz to 30
USD/oz, with an increment of every 5
USD. Different silver prices correspond to different cut-off
grades. Other economic parameters (mining and processing cost,
G&A cost, and silver metallurgical recovery) remain unchanged.
Table 1.4 summarizes the result of this analysis. The reader is
cautioned that the figures provided in Table 1.4 should not be
interpreted as a mineral resource statement. Instead, the reported
quantities and grade estimates at different silver prices and
cut-off grades are presented to demonstrate the mineral resource's
sensitivity to variations in the price of silver. Micon's QP has
reviewed the sensitivity study and believes that the results meet
the requirements to demonstrate potential economic extraction at
the silver prices used.
Table 2: Silver Price-based Mineral Resource Sensitivity for
the Peñasco Quemado Project. Source: Micon, 2023.
Pitshell
|
Silver
Price
|
Cut-off
Grade
|
Stripping
|
Resource
Category
|
Tonnage
(Mt)
|
Average
Grade
|
Metal
Content
|
USD/oz
|
Ag
(g/t)
|
Ratio
|
Ag
(g/t)
|
Ag (Million
oz)
|
Inpit
|
15
|
141
|
2.96
|
Inferred
|
0.6
|
217.6
|
4
|
20
|
106
|
2.35
|
0.9
|
189.2
|
5.2
|
25*
|
85
|
2.25
|
1.1
|
168.6
|
6.2
|
30
|
71
|
2.07
|
1.3
|
155.3
|
6.7
|
*Peñasco Quemado 2023 base case Mineral Resource Estimate.
The updates made to the resource calculations can be
attributed to several key factors. Firstly, an updated block model
was implemented to replace the original polygonal method, which was
deemed less accurate. Secondly, the reclassification of the
resources was largely due to the historical nature of the drilling,
necessitating a re-evaluation of the data. Finally, changes in the
CIM Standards and Definitions since the previous mineral resource
estimate was disclosed also significantly influenced the updated
calculations.
Cut-Off Grade and Reasonable Prospects for Eventual Economic
Extraction
The base-case COG (85 g/t silver) was determined using the
following assumptions:
- Silver price of US$25.0 per
troy ounce;
- Processing costs of US$40
per short ton;
- General and administrative costs of US$5 per short ton;
- Mining costs of US$2.0 per
short ton; and
- Silver recovery of 69%
Metal recoveries are based on preliminary results from the 2012
Metallurgical Test Program completed by Silvermex and is consistent
with recoveries for comparative operations. Silver price was
calculated by averaging the price from the last 12 months up to
March 1st, 2022. Changes
in metal prices, optimized processing parameters and/or improved
metal recoveries will all impact COGs and any resultant MRE.
Economic pit shell utilizing a bench slope of 30° was used for the
overlying alluvium, and a slope of 45° was used for all other
lithologies.
About the Peñasco Quemado Property
The Peñasco Quemado Project is located in the Mexican
state of Sonora, south of the
American state of Arizona.
Specifically, the Project is located within the north-central
portion of Sonora, approximately
14.5 km northwest of the town of Tubutama and in the Magdalena-Tubutama mining district.
Infographic
- https://mma.prnewswire.com/media/2071078/Lodestar_Battery_Metals_Corp_Figure_5_Infographic.jpg
Figure 5 Location and claims outline of the Peñasco Quemado
property
The Peñasco Quemado property is extensively covered by a cap of
alluvium and valley fill which varies from 0 to 40 m thick. The alluvium and fill overlie the Pit
(Volcaniclastic) Conglomerate (formerly named the Red Conglomerate)
and the Upper conglomerate, which is up to 200 m thick, as evidenced by drill hole
intersections. The Pit (Volcaniclastic) Conglomerate is in a
high-angle fault contact with a volcanic sequence that includes
andesite tuffs, andesite breccia and andesite flows. The entire
upper lithological column unconformably overlying a basement of
gneissic granite. Between the two units, there exists a complex
unit that has been described by the geologists of
Silvermex/Terra Plata as felsite.
The felsite is associated with a mylonite zone that has been
identified along a strike distance of several kilometers from the
western portion of the property, where it outcrops in the areas
called the Low Angle, The Pink Breccia and the Stockwork. In the
Peñasco pit area, mylonite has been encountered up to 130 m to 150 m deep
in the drill holes.
Qualified Person
The scientific and technical data contained in this news release
was reviewed and approved by William J.
Lewis, P.Geo., Chitrali Sarkar, M.Sc, P.Geo., both of
Micon and Rodrigo Calles-Montijo,
CPG, AIPG., of Servicios Geológicos IMEx, S.C. All are Qualified
Persons independent of the Company. All are Independent Qualified
Persons as defined by National Instrument 43-101 Standards for
Disclosure of Mineral Projects.
The mineral resource estimate was produced in conformance with
the Canadian Institute of Mining Metallurgy and Petroleum ("CIM")
"Estimation of Mineral Resource and Mineral Reserves Best
Practices" guidelines and is reported in accordance with NI 43-101.
The Waterloo mineral resource estimate has an effective date of
February 8, 2023. Mineral resources
are not mineral reserves and do not have demonstrated economic
viability. There is no certainty that any mineral resource will be
converted into a mineral reserve.
This news release has also been reviewed and approved by
Luke van der Meer, P.Geo, an
consultant for the Company and an Independent Qualified Person as
defined by National Instrument 43-101 Standards for Disclosure of
Mineral Projects.
Update to Lodestar Leadership
Effective immediately, Lowell
Kamin holds the positions President, CEO & Chairman of
the Board, (previously CEO & Director), to better reflect Mr.
Kamin's roles and responsibilities with the Company. In addition,
Director Scott Margach has been
appointed Executive Vice President & Director to better reflect
his role with Lodestar.
About Lodestar Battery Metals Corp.
Lodestar Battery Metals Corp. is a Canadian mining exploration
company focused on the battery metals space. The Company's 100%
owned flagship Peny Property comprises 47 mineral claims totaling
11,191 hectares in the Snow Lake
District, Manitoba, with access to
tier-1 existing infrastructure: railway, roads, airstrip, and
power. The Company also owns 100% interest in two significant
silver assets in Mexico. The
Company intends to build a strong portfolio of battery metals
projects to drive future growth through exploration success and
from later-stage projects with production potential. The Lodestar
business plan calls for a dynamic combination of developing its
existing properties, acquisitions, and partnerships to achieve this
growth. For more information, visit
https://lodestarbatterymetals.ca/.
Contact
Lodestar Battery Metals Corp.
Lowell Kamin, President, CEO &
Chairman of the Board
(416) 272-1241
lowell@lodestarbatterymetals.ca
Investor Relations
Alyssa Barry, IR Labs Inc.
1-833-947-5227
investors@lodestarbatterymetals.ca
Forward-Looking Statements
The information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions, and expectations. They are
not guarantees of future performance. Lodestar cautions that all
forward-looking statements are inherently uncertain, and that
actual performance may be affected by a number of material factors,
many of which are beyond Lodestar's control. Such factors include,
among other things: risks and uncertainties relating to Lodestar's
limited operating history and the need to comply with environmental
and governmental regulations. Accordingly, actual and future
events, conditions and results may differ materially from the
estimates.
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PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
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SOURCE Lodestar Battery Metals Corp.