International Wayside Gold Mines Ltd (the "Company") (TSX VENTURE:
WYG)(FRANKFURT: IWUB), announces that it has received a Preliminary
Feasibility Study ("PFS") including an updated NI 43-101 compliant
resource estimate, on the Bonanza Ledge Gold Project, B.C. Canada.
The Base Case economics at $750 per ounce gold show a pre-tax
Internal Rate of Return of 44% and a pre-tax cash flow of US$6.7
million. The payback period for the initial capital of US$3.6
million is approximately 2.5 years. The open pit operation will
mine ore at a rate of 220 tons (200 tonnes) per day and is expected
to produce an average of 20,000 ounces of gold per year by batch
tolling milling at a nearby CIP plant for an estimated mine life of
4 years.
Project Economics & Metal Price Sensitivities
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Pre-Tax NPV Pre-Tax NPV
Average Pre-Tax Cash @ 5% @ 8%
Economic Gold Price Flow Pre-Tax IRR Discount Discount
Case (US$) (US$) % (US$) (US$)
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Low 650 742,344 6.3 131,501 (164,400)
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Base 750 6,698,638 43.8 5,060,800 4,262,079
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Moderate 850 13,364,446 77.7 10,509,332 9,124,933
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Moderate-High 950 20,497,198 111.8 16,319,433 14,299,970
(Current Price)
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High 1050 27,755,213 140.4 22,207,927 19,527,628
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Metal prices for the Base Case were established by EBA
Engineering Consultants Ltd. ("EBA") and assume $750 per ounce of
gold for the life of mine. The Company has also run project
sensitivity analyses using variations of capital and operating
costs as well as metal recoveries. These analyses indicate that the
project is relatively insensitive to capital costs but more
sensitive to operating costs, metal recoveries and pricing. Other
defining parameters of the study are:
- The strip ratio for this reserve is estimated at an average of
18:1 over a mine life of 4 years. The first year has an average
strip ratio of 33:1 including pre-stripping. An optimized Phase I
starter pit can reduce the first years strip ratio to 12:1.
- Average predicted mill recoveries are 93% for gold.
- Overall pit slopes are estimated at 37 degrees.
Capital & Operating Costs
- Initial capital costs are estimated at US$3.6 million,
including a 15% contingency and, working capital of US$130
thousand. Sustaining capital costs are estimated at US$260 thousand
over the 4 years mine life.
- Cash operating costs for life of mine are approximately US$509
per ounce of gold.
The study has taken 14 months to complete and has involved the
focused efforts of a team of independent qualified persons,
professionals and consulting companies that included EBA (Overall
Report), F. Wright Consulting Inc. (Metallurgy), and Mintec
(Resources and Reserves).
Proven and Probable Reserves (August 31, 2009)
Bonanza Ledge Mineral Reserves
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Reserve Metric Au Short Au Contained Gold
Category(1) Tonnes gpt Tons opt Ounces(2)
---------------------------------------------------------------------------
Proven 130,726 10.23 144,099 0.298 42,900
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Probable 166,810 8.11 183,875 0.237 43,500
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(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded.
(2) Cutoff grade is 2.44 gpt Au. These reserves are diluted and mine
recoverable.
The following resource table shows the Measured, Indicated and
Inferred Mineral Resources that include the Mineral Reserves and
are based on 230 drill holes.
Measured, Indicated and Inferred Mineral Resources (August 31,
2009)
Bonanza Ledge Mineral Resources
---------------------------------------------------------------------------
Reserve Metric Au Short Au Contained Gold
Category(1) Tonnes gpt Tons opt Ounces(2)
---------------------------------------------------------------------------
Measured 234,677 6.69 258,685 0.195 50,392
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Indicated 334,433 5.31 368,645 0.155 57,140
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Inferred 373,123 6.10 411,293 0.178 73,087
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(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded.
(2) Cutoff grade is 0.69 gpt Au.
EBA including N. Eric Fier, CPG, P.Eng., Lara Reggin, P.Geo.,
Scott Martin, P.Eng.; F Wright Consulting including Frank Wright
P.Eng.; and Mintec including Abdullah Arik, AusIMM are the
Independent Qualified Persons for this news release and have
reviewed and approved its contents. An NI 43-101 Technical Report
detailing the results of the PFS and increased resources will be
filed on SEDAR within 45 days of this release.
J Frank Callaghan, President and CEO of the Company stated, "We
are pleased to have completed and received the PFS and updated
NI43-101 resource on the Bonanza Ledge Gold Project and are excited
with the results. The Company continues to take positive steps
towards our stated goal of project development in Q4 2009 pending
receipt of required operating permits. Existing resources combined
with the exploration upside on the Company's projects, cast a
bright light leading us forward".
International Wayside Gold Mines Ltd. Resources 0.69 gpt Cutoff
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Contained
Grade Gold
Area Category(1) Tonnes (g/t) Ounces(2) Prepared by
---------------------------------------------------------------------------
Cariboo Indicated 6,013,000 2.23 430,885
Gold --------------------------------------------- Giroux 2006
Quartz Inferred 1,527,000 1.85 90,936
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Measured 234,677 6.69 50,392
---------------------------------------------
Bonanza Ledge Indicated 334,433 5.31 57,140 Mintec 2009
---------------------------------------------
Inferred 373,123 6.10 73,087
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Indicated 296,000 5.31 50,600
BC Vein --------------------------------------------- Giroux 2002
Inferred 291,000 2.40 22,400
---------------------------------------------------------------------------
(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded.
(2) Cutoff grade is 0.69 gpt Au.
About International Wayside Gold Mines
International Wayside Gold Mines has been developing its Cariboo
Gold Project in Barkerville, B.C., which encompasses (from
northwest to south east) the former producing Hardscrabble Tungsten
Mine, Mosquito Creek Gold Mine (now on care and maintenance), Aurum
Mine, Island Mountain Mine, Cariboo Gold Quartz Mine, Bonanza Ledge
(proposed mine), the Cariboo Thompson Gold & Silver Mine and
the Cariboo Hudson Mine.
The Company has also entered into a letter of intent with
0373849 B.C. Ltd. (formerly Cross Lake Minerals Ltd.) ("Cross
Lake") pursuant to which the Company will purchase a subsidiary of
Cross Lake holding all of Cross Lake's interest in the QR Mine and
Mill (the "Sale Transaction"). Concurrently with the completion of
the Sale Transaction, the Company will enter into a Spin-off
Transaction to transfer all of its properties, including the QR
Mine and Mill, Cariboo Gold Project, and its assets, liabilities
and obligations, to Barkerville Gold Mines Ltd. ("Barkerville"), a
wholly-owned subsidiary of the Company, in exchange for shares of
Barkerville (the "Barkerville Shares") and will then distribute the
Barkerville Shares to the shareholders of the Company on the basis
of one Barkerville Share for each share of Wayside. The Sale
Transaction and Spin-Off Transaction (together, the "Transactions")
will be structured as a Plan of Arrangement involving the Company,
its security holders, Cross Lake and Barkerville pursuant to the
provisions of the B.C. Business Corporations Act. The final terms
of the Transactions will be modified to the extent necessary to
give effect to tax and legal advice to be sought by the
parties.
Barkerville will make an application to list its shares on the
TSX Venture Exchange (the "TSXV"). This transaction is subject to
meeting the usual listing requirements of the TSXV, which will
include having the necessary funds to meet the obligations of
operating the QR Mine and Mill, conduct recommended work programs
on its Cariboo Gold exploration projects, satisfy the necessary
general and administrative expenses and having unallocated working
capital.
Completion under the Plan of Arrangement will also be subject to
obtaining the necessary shareholder, regulatory and court
approvals.
This news release contains forward-looking statements, which
address future events and conditions, which are subject to various
risks and uncertainties. The Company's actual results, programs and
financial position could differ materially from those anticipated
in such forward-looking statements as a result of numerous factors,
some of which may be beyond the Company's control. These factors
include: the availability of funds; the timing and content of work
programs; results of exploration activities and development of
mineral properties, the interpretation of drilling results and
other geological data, the uncertainties of resource and reserve
estimations, receipt and security of mineral property titles;
project cost overruns or unanticipated costs and expenses,
fluctuations in metal prices; currency fluctuations; and general
market and industry conditions.
Forward-looking statements are based on the expectations and
opinions of the Company's management on the date the statements are
made. The assumptions used in the preparation of such statements,
although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be
placed on forward-looking statements.
ON BEHALF OF THE BOARD OF DIRECTORS
J. Frank Callaghan, President and CEO
Neither 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.
Contacts: International Wayside Gold Mines Ltd. Andrew H. Rees
Director 604-669-6463 or Toll Free: 1-800-663-9688 604-669-3041
(FAX) www.wayside-gold.com
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