VANCOUVER, Nov. 14, 2018 /CNW/ - Leagold Mining Corporation
(TSX:LMC; OTCQX:LMCNF) ("Leagold" or the "Company") is pleased to
announce an increase of the Proven and Probable mineral reserves
(P&P reserves) at the Los Filos open pit to 40.5 million tonnes
grading 0.60 g/t containing 780 thousand ounces (koz) of gold as of
October 31, 2018 (see Table 1). This
represents a 122% increase over the December
31, 2017 estimate of 351 koz. After accounting for mining
depletion of 99 koz from January 1 to
October 31, 2018, the total addition to the Los Filos open
pit P&P reserves is 528 koz. This reserve update does not
reflect changes to the Bermejal open pit or Los Filos underground
mining areas, or potential additions from the Bermejal underground
deposit.
Leagold CEO Neil Woodyer
commented: "As we are nearing the completion of our site-wide
studies on options for Los Filos mine expansion, the integration
and scheduling of the mining and processing of the four sources of
ore is a complex task to optimize. We now have the good problem of
re-scheduling to include this significant increase in gold reserves
at the Los Filos open pit which will contribute to the production
schedule until 2027. This is just one component of the expanded Los
Filos mine, and it provides an indication of the expansion
potential. We are also completing studies to update the mineral
reserves for Los Filos underground and Bermejal open pit, establish
an initial mineral reserve for Bermejal underground, and evaluate
the increased benefits of constructing a carbon-in-leach plant to
improve recovery rates."
Table 1. Los Filos Mine Open Pit Mineral Reserve Statement
(Effective as of October 31, 2018)
(Excludes Bermejal Underground, Bermejal Open Pit, Los Filos
Underground)
Classification
|
Tonnes
(kt)
|
Au Grade
(g/t)
|
Au
Contained
Ounces
(koz)
|
Proven
|
32,300
|
0.62
|
647
|
Probable
|
8,200
|
0.51
|
133
|
Total Proven and
Probable
|
40,500
|
0.60
|
780
|
Notes:
|
1.
|
Mineral Reserves are
based on Measured and Indicated Mineral Resources within pit
designs and supported by a mine plan, featuring variable throughput
rates (depending on the pit being mined), variable metallurgical
recoveries (depending on geometallurgical domain), and cut-off
optimization.
|
2.
|
Metal price
assumption for gold was US$1,200/oz.
|
3.
|
Open Pit Mineral
Reserves:
|
|
a.
|
Los Filos Open Pit
includes the mineralization within the planned 4P pit
extension.
|
|
b.
|
Los Filos Open Pit
crush-leach ore is based on an operational 0.36 g/t Au cut-off
grade; ROM ore is based on a variable 0.146 to 0.314 g/t Au
operational cut-off grade that is determined by lithology. Los
Filos Mineral Reserve is based on a 0.192 g/t Au cut-off
grade.
|
|
c.
|
Process gold
recoveries vary from 54% to 76% for crush-leach ore and from 30% to
64% for ROM ore at Los Filos Open Pit; Technical Report for Los
Filos Gold Mine, Guerrero State, Mexico Page xviii Los Filos Mine
Effective Date: December 31, 2017
|
4.
|
Tonnage and grade
measurements are in metric units. Contained gold is reported as
troy ounces.
|
5.
|
Summation errors may
be present due to rounding.
|
The additional contribution from the Bermejal underground
expansion project cannot yet be reported as a mineral reserve until
feasibility level studies are completed and an integrated site-wide
mine plan is finalized. A site-wide independent technical report
which will now be required is under way and will be available by
year-end. The report will incorporate this Los Filos open pit
mineral reserve update within a new site-wide production plan,
including contributions from the Bermejal underground, Bermejal
open pit, and Los Filos underground mine.
Technical Disclosure
The technical disclosure included in this news release was
reviewed and approved by Rodolfo Balderrama
Neder, Mine Operations Manager of Administración Los Filos,
S.A.P.I de C.V., a wholly owned subsidiary of the Company. Mr.
Balderrama Neder is a Qualified
Person as defined in NI 43-101.
For a description of the key assumptions, parameters and methods
used to estimate mineral reserves and resources at Los Filos, as
well as data verification procedures and a general discussion of
the extent to which the estimates of scientific and technical
information may be affected by any known legal, political or other
relevant factors relating to the potential development of the
mineral resources or mineral reserves, please see the 2018
Technical Report filed by the Company on SEDAR.
About Leagold Mining Corporation
Leagold is building a mid-tier gold producer with a focus on
opportunities in Latin America.
The Company is based in Vancouver,
Canada and owns four operating gold mines in Mexico and Brazil, along with a near-term gold mine
restart project in Brazil and
additional expansion and growth opportunities. Leagold is listed on
the TSX under the trading symbol "LMC" and trades on the OTCQX
market as "LMCNF".
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward looking information" or
"forward looking statements" within the meaning of applicable
securities legislation. Forward-looking information and forward
looking statements include, but are not limited to, statements with
respect to the production schedule and expansion opportunities.
Generally, these forward looking information and forward looking
statements can be identified by the use of forward looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", "will continue"
or "believes", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". Statements
concerning mineral resource estimates may also be deemed to
constitute forward looking information to the extent that they
involve estimates of the mineralization that will be encountered.
The material factors or assumptions used to develop forward looking
information or statements are disclosed throughout this
document.
Forward looking information and forward looking statements,
while based on management's best estimates and assumptions, are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Leagold to be materially different from those
expressed or implied by such forward-looking information or forward
looking statements, including but not limited to: risks related to
international operations; risks related to general economic
conditions and credit availability, actual results of current
exploration activities, unanticipated reclamation expenses; changes
in project parameters as plans continue to be refined; fluctuations
in prices of metals including gold; fluctuations in foreign
currency exchange rates, increases in market prices of mining
consumables, possible variations in mineral reserves, grade or
recovery rates; failure of plant, equipment or processes to operate
as anticipated; accidents, labour disputes, title disputes, claims
and limitations on insurance coverage and other risks of the mining
industry; delays in obtaining governmental approvals or financing
or in the completion of development or construction activities,
changes in national and local government regulation of mining
operations, tax rules and regulations, and political and economic
developments in countries in which the Company operates, actual
resolutions of legal and tax matters, as well as those factors
discussed in the section entitled "Description of the Business –
Risk Factors" in Leagold's most recent AIF available on SEDAR at
www.sedar.com.
Although Leagold has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such information or statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information or statements. The Company has and
continues to disclose in its Management's Discussion and Analysis
and other publicly filed documents, changes to material factors or
assumptions underlying the forward-looking information and
forward-looking statements and to the validity of the information,
in the period the changes occur. The forward-looking statements and
forward looking information are made as of the date hereof and
Leagold disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the forward
looking statements or forward looking information contained herein
to reflect future results. Accordingly, readers should not place
undue reliance on forward-looking statements and information.
SOURCE Leagold Mining Corporation