Bisha Mining Delivers Significant Resource Growth from 2014 Drilling
February 3, 2015
Highlights
- Measured and indicated resources of our deposits now contain 1.2 billion pounds copper, 3.4 billion pounds zinc, 750 thousand ounces gold, and 42 million ounces silver
- Inferred resources contain an additional 237 million pounds copper , 757 million pounds zinc, 311 thousand ounces gold, and 11 million ounces silver
- Harena indicated resources approximately doubled in size
- Harena inferred resources grew eighteen fold to 6.4 million tonnes with grades of 1.1% Cu and 3.7% Zn
- Bisha remains open at depth, Harena remains open at depth and along strike
- Drilling is underway at Bisha and Harena with an accelerated exploration plan for 2015
- Underground scoping assessment to begin at Bisha and Harena
Bisha Mining Resource Company (BMSC or the Company) is pleased to announce the updated mineral resource estimate effective date December 31, 2014, for the Bisha and Harena deposits. These updated resources form the first part of the annual year end mineral reserve and mineral resource statement for 2014. The updated mineral reserve estimate will be released in the coming weeks.
The Bisha primary indicated resource grew by 0.9 million tonnes and primary inferred resource grew 0.6 million tonnes. This primary zone growth added indicated resources of 83 million pounds of zinc and 40 million pounds of copper and inferred resources of 96 million pounds of zinc and 21 million pounds of copper. Of even greater significance was the exceptional growth due to the 2014 exploration drilling of the Harena primary deposit. The Harena open pit indicated resource grew by 1.4 million tonnes adding 113 million pounds of zinc and 32 million pounds of copper and primary inferred resources increased by 6.1 million tonnes for an addition of 498 million pounds of zinc and 156 million pounds of copper. Tables 1.1 to 1.5 contain the complete mineral resource estimates for each deposit.
Cliff Davis, BMSC Chairman, commented, “The drilling at Harena has produced a substantial increase in the total resource available for the Bisha operations and demonstrates the success of the 2014 drilling program. Since the restart of exploration last year, the estimated cost of discovery at Harena has been approximately 2 cents per pound copper and 1 cent per pound zinc. This tremendous cost efficiency speaks to how we approach our operating practices. As exploration continues at Harena, excellent potential remains for additional resource expansion not only at Harena, but also at our three other deposits within the Bisha VMS District. The same methodology that was applied to Harena is now being applied to the Bisha deposit as we further explore Bisha along strike and at depth. During 2015 we will begin the scoping of underground mining at Bisha and Harena.”
Qualified Persons Statement
The information in this news release that relates to mineral resources for Harena and Bisha was prepared by Matt Bampton, a Qualified Person as defined by NI 43-101. Mr. Bampton has reviewed and approved the technical contents of this press release for his relevant sections. The information in this press release that relates to mineral resources for Hambok and Northwest have not changed from the previous year as there was no update. Last year, this had been prepared by Paul Gribble, a Qualified Person as defined by NI 43-101. Mr. Gribble has again reviewed and approved the technical contents of this press release for his relevant sections.
A Quality Assurance/Quality Control programme was part of the sampling programme for the Bisha work. Certified reference material (standards), duplicates and blank samples are systematically inserted into the flow of drill samples and results analysed on a batch by batch basis. This programme includes a chain of custody whereby diamond drill core samples are initially crushed and subsampled at the Bisha Mine sample preparation facility and pulverised and analysed by ALS Chemex in Vancouver. Multi-element analysis is completed using ICP-AES methods; gold is analysed by fire assay with AAS finish. Reverse circulation drill samples are processed at the Bisha Mine on site laboratory, which is a member of the SGS group. Multi-element analysis is completed using AA methods with gold also analysed by fire assay.
Forward Looking Statements: The above contains forward-looking statements regarding increases in estimated grade and mineral resources and reserves, future production profiles, and the effect of future production profiles on future cash flows and net present value.Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.
Bisha Mining Share Company
“Cliff T. Davis”
Cliff T. Davis
Chairman
Mineral Resources
The below reported Mineral Resources for Bisha and Harena are inclusive of Mineral Reserves which will be reported in the coming weeks.
Table 1.1 Mineral Resource Estimate (Combined Bisha, Harena, Northwest and Hambok)
Matt Bampton, MAusIMM, MAIG (Cube Consulting) and Paul Gribble, C. Eng, Effective Date: December 31, 2014
Measured |
Contained Metal |
||||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
||
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
||
Oxide Phase |
|
|
|
|
|
|
|
|
|
||
Supergene Phase |
1,420 |
4.50 |
|
0.6 |
23 |
141,000 |
|
30 |
1,060 |
||
Primary Phase |
|
|
|
|
|
|
|
|
|
||
Total Measured |
1,420 |
|
141,000 |
|
30 |
1,060 |
|||||
|
|||||||||||
Indicated |
Contained Metal |
||||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
||
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
||
Oxide Phase |
200 |
|
|
7.8 |
3 |
|
|
50 |
20 |
||
Supergene Phase |
3,560 |
2.58 |
|
0.5 |
17 |
202,150 |
|
60 |
1,970 |
||
Primary Phase |
34,610 |
1.07 |
4.48 |
0.5 |
35 |
816,390 |
3,419,490 |
610 |
38,770 |
||
Total Indicated |
38,370 |
|
1,018,540 |
3,419,490 |
720 |
40,760 |
|||||
|
|||||||||||
Measured and Indicated |
Contained Metal |
||||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
||
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
||
Oxide Phase |
200 |
7.8 |
3 |
50 |
20 |
||||||
Supergene Phase |
4,980 |
3.13 |
|
0.6 |
19 |
343,150 |
90 |
3,030 |
|||
Primary Phase |
34,610 |
1.07 |
4.48 |
0.5 |
35 |
816,390 |
3,419,490 |
610 |
38,770 |
||
Total Meas & Ind |
39,790 |
1,159,540 |
3,419,490 |
750 |
41,820 |
||||||
Inferred |
Contained Metal |
||||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
||
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
||
Oxide Phase |
1,120 |
|
|
3.9 |
21 |
|
|
141 |
760 |
||
Supergene Phase |
1,200 |
1.1 |
|
0.3 |
3 |
29,000 |
|
10 |
100 |
||
Primary Phase |
8,402 |
1.1 |
4.1 |
0.6 |
38 |
208,430 |
757,410 |
160 |
10,210 |
||
Total Inferred |
10,722 |
|
237,430 |
757,410 |
311 |
11,070 |
|||||
Table 1.2 Bisha Mineral Resource Estimate
Matt Bampton, MAusIMM, MAIG (Cube Consulting), Effective Date: December 31, 2014
Measured |
Contained Metal |
||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
Oxide Phase |
|
|
|
|
|
|
|
|
|
Supergene Phase |
1,420 |
4.50 |
|
0.6 |
23 |
141,000 |
|
30 |
1,060 |
Primary Phase |
|
|
|
|
|
|
|
|
|
Total Measured |
1,420 |
4.50 |
|
0.6 |
23 |
141,000 |
|
30 |
1,060 |
|
|
|
|
|
|
||||
Indicated |
Contained Metal |
||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
Oxide Phase |
180 |
|
|
9.2 |
|
|
|
50 |
|
Supergene Phase |
2,540 |
3.01 |
|
0.6 |
20 |
169,000 |
|
50 |
1,640 |
Primary Phase |
22,000 |
1.09 |
5.79 |
0.7 |
46 |
528,000 |
2,810,000 |
500 |
32,690 |
Total Indicated |
24,720 |
|
697,000 |
2,810,000 |
600 |
34,330 |
|||
|
|||||||||
Measured and Indicated |
Contained Metal |
||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
Oxide Phase |
180 |
|
|
9.2 |
|
|
|
50 |
|
Supergene Phase |
3,960 |
3.55 |
|
0.6 |
21 |
310,000 |
|
80 |
2,700 |
Primary Phase |
22,000 |
1.09 |
5.79 |
0.7 |
46 |
528,000 |
2,810,000 |
500 |
32,690 |
Total Meas & Ind |
26,140 |
|
838,000 |
2,810,000 |
630 |
35,390 |
|||
|
|
||||||||
Inferred |
Contained Metal |
||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
Oxide Phase |
500 |
|
|
5.1 |
23 |
|
|
80 |
360 |
Supergene Phase |
1,100 |
1.1 |
|
|
1 |
27,000 |
|
|
30 |
Primary Phase |
1,900 |
1.0 |
5.4 |
0.5 |
38 |
44,000 |
226,000 |
30 |
2,340 |
Total Inferred |
3,500 |
|
71,000 |
226,000 |
110 |
2,730 |
|||
Table 1.3 Harena Mineral Resource Estimate
Matt Bampton, MAusIMM, MAIG (Cube Consulting), Effective Date: December 31, 2014
Indicated |
Contained Metal |
||||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
||
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
||
Oxide Phase |
20 |
|
|
2.5 |
25 |
|
|
0 |
20 |
||
Primary Phase |
3,220 |
0.82 |
3.77 |
0.5 |
27 |
58,000 |
268,000 |
50 |
2,770 |
||
Total Indicated |
3,240 |
|
58,000 |
268,000 |
50 |
2,790 |
|||||
|
|
|
|
|
|
|
|
|
|
||
Inferred |
Contained Metal |
||||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
||
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
||
Oxide Phase |
100 |
|
|
4.2 |
33 |
0 |
0 |
10 |
90 |
||
Primary Phase |
6,400 |
1.1 |
3.7 |
0.6 |
38 |
162,000 |
529,000 |
120 |
7,810 |
||
Total Inferred |
6,500 |
|
162,000 |
529,000 |
130 |
7,900 |
|||||
Table 1.4 Northwest Mineral Resource Estimate
Paul Gribble, C. Eng, Effective Date: December 31, 2014
Indicated |
Contained Metal |
|||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
|
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
|
Oxide Phase |
|
|
|
|
|
|
|
|
|
|
Supergene Phase |
1,020 |
1.47 |
|
0.2 |
10 |
33,150 |
|
10 |
330 |
|
Primary Phase |
2,530 |
1.04 |
1.08 |
0.3 |
13 |
58,020 |
60,250 |
20 |
1,050 |
|
Total Indicated |
3,550 |
|
91,170 |
60,250 |
30 |
1,380 |
||||
|
|
|
|
|
|
|
|
|
|
|
Inferred |
Contained Metal |
|||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
|
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
|
Oxide Phase |
500 |
|
|
3.7 |
18 |
|
|
50 |
300 |
|
Supergene Phase |
100 |
0.8 |
|
3.7 |
19 |
2,000 |
|
10 |
70 |
|
Primary Phase |
100 |
0.9 |
0.9 |
2.9 |
15 |
2,400 |
2,400 |
10 |
60 |
|
Total Inferred |
700 |
|
4,400 |
2,400 |
70 |
430 |
||||
Table 1.5 Hambok Mineral Resource Estimate
Paul Gribble, C. Eng, Effective Date: December 31, 2014
Indicated |
Contained Metal |
||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
Oxide Phase |
|
|
|
|
|
|
|
|
|
Primary Phase |
6,860 |
1.14 |
1.86 |
0.2 |
10 |
172,370 |
281,240 |
40 |
2,260 |
Total Indicated |
6,860 |
|
172,370 |
281,240 |
40 |
2,260 |
|||
|
|
|
|
|
|
|
|
|
|
Inferred |
Contained Metal |
||||||||
|
Tonnes |
Copper |
Zinc |
Gold |
Silver |
Cu |
Zn |
Au |
Ag |
Zone |
('000s) |
% |
% |
g/t |
g/t |
('000 lbs) |
('000 lbs) |
('000 Oz) |
('000 Oz) |
Oxide Phase |
20 |
|
|
1.5 |
17 |
|
|
1 |
10 |
Primary Phase |
2 |
0.9 |
0.2 |
0.2 |
8 |
30 |
10 |
0 |
0 |
Total Indicated |
22 |
|
30 |
10 |
1 |
10 |
|||
Notes to be read in conjunction with the Resource tables above:
(1) Mineral Resources are defined within an optimal Lerchs-Grossman (LG) Pit Shell, generated using metal prices for copper, zinc, gold and silver of $3.35/lb, $1.15/lb, $1,335/oz and $21/oz respectively using blocks of all Resource categories. The mining cost and total ore based cost (process, G&A and stockpile rehandle) applied was approximately 10-15% below the long term view on costs with appropriate ore haulage costs for each satellite deposit. Overall pit slopes varied from 31 deg to 44 deg for Bisha, 29 deg to 35.5 deg for Harena, from 39 to 45 for Northwest and 40 overall for Hambok (preliminary assessment). NSR cut-off ($US/t) used were:
a. Bisha: $40.55 for Oxide Phase; $39.55 for Supergene and Primary Phase.
b. Harena: $42.71 for Oxide Phase and $41.71 for Primary Phase.
c. Northwest: $40.70 for Oxide Phase, $39.70 for Supergene and Primary Phase.
d. Hambok: $44.45 for Oxide Phase and $43.45 for Primary Phase.
(2) Net Smelter Return values were calculated for each block using all resource categories, metal prices, recoveries, appropriate smelter terms and downstream costs. Metallurgical recoveries, supported by metallurgical test work, were applied as follows:
a. Bisha oxide zone: recoveries of 88% and 22% were applied for gold and silver respectively.
b. Harena oxide zone: a recovery of 75% was applied for gold.
c. Bisha Supergene zone; recoveries of 85%, 54% and 74% were applied for copper, gold and silver respectively.
d. Bisha Primary zone; recoveries to copper concentrate of 85%, 36% and 29% were applied for copper, gold and silver respectively. Recoveries to zinc concentrate of 83.5%, 9% and 20% were applied for zinc, gold and silver respectively.
e. Harena primary zone; recoveries to copper concentrate of 85%, 36% and 29% were applied for copper, gold and silver respectively. A zinc recovery to zinc concentrate of 72% was applied.
f. Northwest oxide zone; recoveries of 88% and 22% were applied to gold and silver respectively.
g. Northwest Supergene zone; recoveries of 87%, 46% and 50% were applied for copper, gold and silver respectively. Zinc has not been assigned a recovery as the values are isolated on the fringes of the deposit.
h. Northwest Primary zone; recoveries to copper concentrate of 87%, 36% and 29% were applied for copper, gold and silver respectively. Recoveries to zinc concentrate of 81%, 36% and 29% were applied for zinc, gold and silver respectively.
i. Hambok oxide zone; recoveries of 88% and 22% were applied to gold and silver respectively.
j. Hambok; recoveries to copper concentrate of 88%, 87%, 36% and 29% were applied for copper, zinc, gold and silver respectively. Preliminary metallurgical characterisation studies, but not full testing have been completed for Hambok.
(3) Mineral Resources are reported within the pit shell generated using the specified commodity prices, using NSR block grade cut-off derived as above. Tonnage is rounded to the nearest 10,000 tonnes and grades are rounded to two decimal places for copper and zinc, one decimal place for gold and zero decimal places for silver. Tonnages and grades for the Inferred category are further rounded reflecting the uncertainty that attaches to this category. Contained metal for copper and zinc are rounded to the nearest million pounds for Bisha and Harena.
(4) Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.
(5) Tonnage and grade measurements are in metrics units. Contained gold and silver ounces are reported as troy ounces, contained copper and zinc pounds as imperial pounds.
(6) Stockpile tonnages are included in the total given in the tables for Bisha and Harena, with their resource category generally reflecting the underlying resource category from which they were derived.
(7) Both the Bisha and Harena Primary Inferred Resources includes an Underground Resource. These were derived by defining a shape around contiguous blocks outside the optimized resource pit shell, where an overall NSR of $100 was achieved. The value of NSR $100 represents the processing cost plus approximately $60/t mining cost.
(8) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.