Almaden Minerals Ltd. (“Almaden” or “the Company”)
(NYSE American:AAU) (TSX:AMM) is pleased to update investors on the
environmental and engineering work relating to the feasibility
study (FS) at the Ixtaca gold-silver project located in Puebla
State, Mexico.
The Company has selected a team of independent
engineers including SRK Consulting (U.S.), Inc. (SRK) and Moose
Mountain Technical Services (“MMTS”) to lead the FS.
Various programs currently underway include:
- A resource model update to include new drill hole data;
- Metallurgical test work to:
- demonstrate repeatability of metallurgical performance;
- test opportunities to further improve metallurgical
performance;
- Process and Infrastructure FS engineering design;
- Mine planning and production optimization studies;
- Further disassembly of the Rock Creek processing plant to
accelerate preparations for moving the plant to the Ixtaca
site;
- Construction and commissioning project management
planning;
- Geotechnical site investigation work; and
- Water management studies.
Almaden is also in the final stage of preparing
an Environmental Impact Assessment (Manifiesto de Impacto Ambiental
or “MIA”) for Ixtaca and expects to submit the MIA this year.
Morgan Poliquin, President and CEO of Almaden,
stated “We are pleased to have selected SRK and MMTS to conduct the
Ixtaca gold-silver project Feasibility Study. Along with greater
detail on the feasibility of the project, we are developing a full
understanding of social, hydrologic, hydrogeologic and geochemical
conditions at the site well in advance of mining activity. This is
all based on the work of the independent engineers we have engaged,
utilising best practices to international standards and is peer
reviewed. This understanding will help us ensure that the potential
impacts associated with eventual project development are identified
and mitigated and the opportunities for all stakeholders are
capitalised upon through the project life and beyond. Over the last
year exploration drilling has been delivering encouraging results,
both in the mine plan area and beyond, which supports our belief
that sustained exploration can extend the mine life.”
Hydrology and Geochemistry
Almaden is working closely with authorities and
local communities to protect local water resources while improving
quality and availability. The current mine plan includes a water
storage reservoir to be co-operated and maintained by local
residents during and after mine operation to provide a consistent
and long-term supply of water to local residents.
Rainfall in the Ixtaca vicinity falls primarily
during a relatively short rainy season. With no local water storage
facilities the flash flows of water are lost to the community.
Under the FS development plan, rainwater will be captured during
the rainy season in the water storage reservoir and slowly released
during the dry season, for use by both the mining operation and
local residents. Almaden is also exploring additional solutions to
improve the quality of drinking water available to residents in the
context of a Social Investment Plan (see press release of December
12, 2017). Water quality and a consistent long-term supply for
local residents is one of Almaden’s top priorities at Ixtaca and a
major component of the feasibility study.
In support of this priority for the FS, Almaden
and SRK will expand upon the recent (2017) pre-feasibility study
(PFS)1 through the completion of additional soil, surface water and
ground water characterization that will facilitate a more detailed
facility design. The PFS and subsequent studies include the
following highlights relating to water:
- Local water resources are underutilized and the mine plan will
not disturb local domestic water sources.
- In the current plan, groundwater pumping wells will not be
required, according to baseline hydrology studies and water balance
models.
- A robust tailings management facility (TMF) has been designed
so that no process water is discharged, i.e. the TMF will be a
“zero discharge facility”.
- Mine development includes a water storage reservoir that, based
on current water balance planning, could supply more than 2,000 m3
per day to the local community.
- The neutralizing potential present in the site rocks is
sufficient to neutralize any acid generated.
Two geochemical studies completed in 2015 and
2017 evaluated the potential for acid rock drainage and metal
leaching from the waste rock and tailings using globally-accepted
standardized methods of laboratory testing and in compliance with
Mexican regulations; including NOM-157-SEMARNAT-2009, which
establishes procedures to implement mine waste management plans and
Anexo Normative 5 of NOM-141-SEMARNAT-2003, which describes the
test methods for whole rock chemistry analysis, leach tests and
acid base accounting. The studies stated that “there is more than
enough neutralizing potential present in the site rocks to
neutralize any acid generated,” and also reported that laboratory
testing indicates a low potential for metal leaching. To confirm
these findings and to bring the geochemical data set to feasibility
level, SRK’s scope for the geochemical characterization program in
the FS will be expanded to include additional geochemical sampling
to evaluate the development rock and tailings in greater
detail.
Community and Transparency
A key component of Almaden’s work at Ixtaca
continues to be engagement with people in the region. With the
receipt of the summary Social Impact Assessment late last year,
Almaden has commenced the development of a Social Investment Plan
(“SIP”). Representatives of GMI Consulting are currently preparing
for consultations which will inform the SIP.
In recent years, with the continued advancement
of engineering studies, Almaden has had the opportunity to expand
its program of social engagement in the area of the Ixtaca project,
with a special focus on providing opportunities for local
stakeholders to learn about the Ixtaca project in particular and
the mining industry in general. Videos showing some of the
approaches we are using are available on the Almaden website
(www.almadenminerals.com). To date, Almaden has:
- Coordinated eight large community meetings, with total
attendance at these meetings of more than 3,300 people.
- Taken a total of approximately 480 people, drawn from local
communities, on 24 trips to see an operating mine (see video on
website).
- Arranged 35 sessions of “Dialogos Transversales”, wherein
community members are invited to attend discussions with experts on
a diverse range of issues relating to the mining industry, such as
an overview of Mexican Mining Law, Human Rights and Mining, mineral
processing, explosives, water in mining, risk management, and mine
infrastructure, among other things (see video on website).
- Opened a central community office in the town of Santa Maria
Zotoltepec, which is open to community members and includes an
anonymous suggestion box.
- Developed a “Mobile Information Module” which allows company
representatives to visit communities and provide information to
communities more distant from the project. To date 35 communities
have been visited.
- Employed as many local people as possible, reaching up to 75
people drawn from 5 local communities. Almaden operates the drills
used at the project, and hence can draw and train a local workforce
as opposed to bringing in external contractors.
- Initiated a program of scholarships for top performing local
students, with 100 scholarships granted to date to individuals from
31 different communities (57 women and 43 men).
- Established several clubs, including English, reading, zumba,
football, and theatre clubs, to contribute to the vitality of local
communities.
- Focused on education, enabling over 4,300 people to be
positively impacted by our investments, such as rehabilitation of
school-related infrastructure, donation of electronic equipment,
and scholarships for top-performing students.
About SRK and MMTS:
SRK Consulting is an independent, international
consulting practice providing focused advice and solutions to the
earth and water resource industries. They offer specialist services
in fields such as due diligence, feasibility studies, permitting,
operation optimization, mine waste and water management, and mine
closure. They have been involved in a wide range of projects in
most areas of the world and across the full spectrum of mineral
commodities. Formed in 1974, SRK employs more than 1,400
professionals in over 45 offices on 6 continents.
MMTS is an association of Geologists, Engineers
and Technicians providing experienced knowledge in Geology, Mine
Engineering, and Metallurgical Services and Support to the mining
industry for over 15 years. Through their network of associates,
they provide an integrated team of experts and QP’s. Services range
from early grassroots exploration and development, block model
builds, resource and reserve estimates, advanced planning and
studies for mine proposals (including operational support), process
design and permitting process guidance and support. MMTS has
experience working on coal, gold, silver, copper, molybdenum, and
tungsten deposits throughout North and South America and around the
world. A list of specific projects worked on by MMTS can be found
at www.moosemmc.com.
About Ixtaca:
The proposed Ixtaca mine is anticipated to
process 7,500 tonnes per day of primarily limestone host rock with
lesser amounts of shale and volcanic tuff to produce gold and
silver dore. The Pre-Feasibility Study announced in April,
20171 projects that the mine will employ 400 people during
construction, 430 over the mine life, and contribute on the order
of US$248 million in taxes, including approximately US$55 million
to Puebla State and US$35 million to the local municipality.
Since 2014, Almaden has been conducting a
detailed water monitoring program in the project area to measure
the pre-mining water quality conditions and to establish a baseline
against which potential future impacts to surface water and
groundwater from mining activity can be evaluated. The program
includes eight groundwater monitoring wells and 12 surface water
monitoring stations. As part of the FS, groundwater monitoring will
be expanded with the installation of additional wells completed
under SRK’s hydrogeologic study for the open pit. In addition, the
existing surface water monitoring program will be augmented to
supplement the existing database of streamflow data.
A sitewide water balance model was developed in
support of the 2017 PFS to develop a water management strategy that
focuses on consuming all impacted water generated at the site in
the mineral extraction and beneficiation process and avoids having
to treat and discharge water to the environment or require
additional external sources of water. As part of this strategy, a
large portion of the water used by the process plant is recycled
water collected from the tailings facility. Additional water
required by the process plant is supplied by collection of runoff
and rainwater through the construction of a water supply reservoir.
The current water management strategy calls for up to 850,000 m3 of
runoff and rainwater to be released annually to the downstream
communities during and following mine operations.
Based on the results of the water balance model
and water management plan, impacts on the groundwater aquifer and
surface water sources in the area are not anticipated to be
significant, as the proposed project facilities do not impact the
current water supply for local communities. In addition, the
groundwater aquifer around the mine is not over-exploited according
to a 2007 CONAGUA study, and additional studies found that the
Water Stress Index in the region is very low (0.029 on a scale of
0.01 to 1.0, with least stressed at 0.01 to most stressed at 1.0).
During the FS the water balance model will be updated to include a
daily simulation model based on project design changes and
additional site monitoring data and a more robust water footprint
will be developed for the mine to confirm the current outlook.
Tracey Meintjes, P.Eng., a qualified person
(“QP”) under the meaning of NI 43-101, and Principal of MMTS,
reviewed the technical information in this news release.
About Almaden:
Almaden Minerals Ltd. owns 100% of the Tuligtic
project in Puebla State, Mexico, subject to a 2.0% NSR royalty held
by Almadex Minerals Limited. Tuligtic covers the Ixtaca Gold-Silver
Deposit, which was discovered by Almaden in 2010.
1Available on SEDAR or at:
http://www.almadenminerals.com/DOCUMENTS/Reports/N43-101%20-%20Ixtaca%20PFS%20-%2017May2017.pdf
Neither the Toronto Stock Exchange (TSX) nor the
NYSE American have reviewed or accepted responsibility for the
adequacy or accuracy of the contents of this news release which has
been prepared by management. Except for the statements of
historical fact contained herein, certain information presented
constitutes "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
Canadian securities laws. Such forward-looking statements,
including but not limited to, those with respect to potential
expansion of mineralization, potential size of mineralized zone,
and size and timing of exploration and development programs,
estimated project capital and other project costs and the timing of
submission and receipt and availability of regulatory approvals
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievement of
Almaden to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others,
risks related to international operations and joint ventures, the
actual results of current exploration activities, conclusions of
economic evaluations, uncertainty in the estimation of mineral
resources, changes in project parameters as plans continue to be
refined, environmental risks and hazards, increased infrastructure
and/or operating costs, labour and employment matters, and
government regulation and permitting requirements as well as those
factors discussed in the section entitled "Risk Factors" in
Almaden's Annual Information form and Almaden's latest Form 20-F on
file with the United States Securities and Exchange Commission in
Washington, D.C. Although Almaden has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. Almaden disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, other than
as required pursuant to applicable securities laws. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Contact Information:
Almaden Minerals Ltd.Tel. 604.689.7644Email:
info@almadenminerals.comhttp://www.almadenminerals.com/