Red Tiger Mining Files Updated Technical Report on San Antonio Properties
Canada NewsWire
TORONTO, Aug. 12, 2013
TORONTO, Aug. 12, 2013 /CNW/ - Red Tiger Mining Inc., (TSXV: RMN), (the "Company") is pleased to announce that an updated Independent Technical Report ("The Report") for resource and reserve disclosure on the Company's wholly owned San Antonio Properties ("the Property") in Sonora, Mexico, in accordance with NI 43-101 reporting standards has been filed on SEDAR (www.sedar.com).
The Report was completed by P&E Mining Consultants Inc. ("P&E"), Brampton, Ontario, Qualified Persons and Independent Consultants Eugene Puritch, P.Eng., Richard H. Sutcliffe, P.Geo., Tracy Armstrong, P.Geo., David Burga, P.Geo., Ken Kuchling, P.Eng., Alfred Hayden, P.Eng., who authored the resource and reserve estimations for copper and gold mineralization on the Property.
Luz del Cobre Copper Project
After 20 months of mining operations, the remaining mineral reserve tonnage to be mined within the Luz del Cobre and Calvario pits as of July 1, 2013 is summarized in the following table. These mineral reserves include an allowance for mining losses and dilution. No Inferred mineralization is included in the mineral reserve.
| Luz Del Cobre Mineral Reserves (As of July 1, 2013) | |||||||||
| July 1, 2013 | Oxide | Mixed Ore | Mixed B580N | Total | |||||
| Zone | Tonnes | Grade CuT (%) | Tonnes | Grade CuT (%) | Tonnes | Grade CuT (%) | Tonnes | Grade CuT (%) | |
| Proven | |||||||||
| Luz del Cobre | 324,000 | 0.84 | 999,000 | 1.18 | 467,000 | 1.52 | 1,790,000 | 1.21 | |
| Calvario | - | - | - | - | - | - | - | - | |
| Total Proven | 324,000 | 0.84 | 999,000 | 1.18 | 467,000 | 1.52 | 1,790,000 | 1.21 | |
| Probable | |||||||||
| Luz del Cobre | 188,000 | 0.66 | 841,000 | 0.82 | 515,000 | 0.81 | 1,544,000 | 0.80 | |
| Calvario | 14,000 | 0.70 | 257,000 | 0.74 | - | - | 271,000 | 0.74 | |
| Total Probable | 202,000 | 0.67 | 1,098,000 | 0.80 | 515,000 | 0.81 | 1,815,000 | 0.79 | |
| Proven & Probable | |||||||||
| Luz del Cobre | 512,000 | 0.77 | 1,840,000 | 1.02 | 982,000 | 1.15 | 3,334,000 | 1.02 | |
| Calvario | 14,000 | 0.70 | 257,000 | 0.74 | - | - | 271,000 | 0.74 | |
| Total Proven & Probable | 526,000 | 0.77 | 2,097,000 | 0.98 | 982,000 | 1.15 | 3,605,000 | 1.00 | |
| 1) | The mineral reserves presented in this report release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. |
| 2) | The cut-off grades used are: Oxide ore at 75% process recovery = 0.23% CuT; Mixed ore at 80% process recovery = 0.22% CuT; Mixed Below 580 North Bench ore at 70% process recovery = 0.25% CuT, at an applied copper price of US$3.25/lb. |
The Report reconfirmed the positive economics of the operations at Luz del Cobre. The analysis indicates that at a discount rate of 7%, the net present value of the discounted cash flows over the life of the Luz del Cobre project will be approximately US$57 million.
The Company announced on July 3, 2013, that commercial levels of production had been reached and that the Company began reporting revenues and cost of sales on the income statement from July 1st onwards. The monthly production of COMEX Grade 1 copper cathodes during the past three calendar months were as follows: May - 404 tonnes, June - 505 tonnes and July - 515 tonnes.
Sapuchi Gold Target
The Sapuchi gold target is located following the same breccia-formed ridge from the Luz del Cobre Deposit to approximately 1,000 metres to the west. Open ended oxidized gold mineralization at Sapuchi has been traced by historic drilling along a distance of approximately 200 metres in an east-west direction, approximately 150 metres in a north-south direction, and to a depth of approximately 75 metres.
In order for constrained mineralization in the Sapuchi Ridge model to be considered potentially economic, a first pass Whittle pit optimization was carried out. The resources are summarized in the following table:
| Sapuchi Gold Oxide Zone Resources @ 0.30 g/t Au Cut-Off Grade | |||
| Classification | Tonnes | Au (g/t) | Au (oz) |
| Indicated | 2,220,000 | 1.04 | 74,300 |
| Inferred | 872,000 | 0.86 | 24,100 |
| 1) | Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. |
| (2) | The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. |
| (3) | The mineral resources in the above table were estimated using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines. |
| (4) | The cut-off grade used: oxide ore at 80% process recovery = 0.30 g/t Au at an applied gold price of US$1,550 per ounce. |
Realito Gold Trend
The Realito Trend is located 1,500 metres to the south-west of Luz del Cobre. It consists of a north-easterly trending zone measuring approximately 2,000 metres in length and 100 to 200 metres in width. Eight areas of open ended gold mineralization have been found along this trend to date. From the north-east to the south-west, they are known as Chalate, Centenario, Mina Loca, Promontorio, California, Golfo de Oro, Brasiles, and El Tigre. Of these eight areas, the Centenario, California and Golfo de Oro prospects have had sufficient drilling density to enable an estimate of the tonnage and average grade of the gold mineralization present. This is summarized in the following table:
| Realito Gold Underground Resource @ 2.5 g/t Au Cut-Off Grade | ||||
| Classification | Tonnes | Au (g/t) | Au (oz) | |
| Golfo de Oro | ||||
| Measured & Indicated | 1,200,000 | 4.67 | 180,300 | |
| Inferred | 96,000 | 4.25 | 13,200 | |
| Centenario | ||||
| Measured & Indicated | 295,000 | 3.79 | 35,900 | |
| Inferred | - | - | - | |
| California | ||||
| Measured & Indicated | 244,000 | 3.59 | 28,200 | |
| Inferred | 66,000 | 3.57 | 7,600 | |
| Total | ||||
| Measured & Indicated | 1,739,000 | 4.37 | 244,400 | |
| Inferred | 162,000 | 3.97 | 20,800 | |
| Realito Gold Open Pit Resource @ 1.0 g/t Au Cut-Off Grade | ||||
| Golfo de Oro | ||||
| Measured & Indicated | 181,000 | 2.38 | 13,800 | |
| Inferred | - | - | - | |
| California | ||||
| Measured & Indicated | 370,000 | 1.93 | 22,900 | |
| Inferred | 72,000 | 2.13 | 4,900 | |
| Total | ||||
| Measured & Indicated | 551,000 | 2.08 | 36,700 | |
| Inferred | 72,000 | 2.13 | 4,900 | |
| (1) | Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. |
| (2) | The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. |
| (3) | The mineral resources in the above table were estimated using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines. |
| (4) | The cut-off grades used are: Open Pit Gold Cut-Off Grade (Mill Incremental Grade) at 85% process recovery = 1.00 g/t Au; Underground Gold Cut-Off at 85% recovery = 2.5 g/t Au, at an applied gold price of US$1,550 per ounce. |
Dr. Thomas Utter, President and CEO of the Company and Qualified Person (European Geologist) under NI 43-101 commented: "We are pleased about the re-confirmation of the positive economics of our Luz del Cobre copper project and about the confirmation of our gold resources known to date at San Antonio".
The contents of this press release have been reviewed and approved by Eugene Puritch, P.Eng. of P&E Mining Consultants Inc.
Red Tiger Mining Inc. is listed on the TSX Venture Exchange (symbol "RMN"). The number of shares outstanding is 100,626,335.
Neither the 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.
This news release includes certain statements that may be deemed "forward-looking statements" within the meaning of the applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Company's operations, exploration and development plans, expansion plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. Generally, these forward-looking statements can be identified by the forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "projects", "intends", "anticipates", or "does not anticipate", or "believes", or "variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might", or "will" be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Red Tiger Mining Inc. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: forecasts of net present value, internal rate of return, initial and sustaining capital costs, operating costs and cash flows and sensitivity analysis, taxes, and royalties, risks related to the exploration and development and operation of the Company's projects in Mexico, risks related to international operations, construction delays and cost overruns, the actual results of current exploration, development and construction activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of copper and gold, risks relating to completing acquisition transactions as well as those factors discussed in the sections relating to risk factors of our business filed in Red Tiger Mining Inc.'s required securities filings on SEDAR. There can be no assurance that any forward-looking statements will prove accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Tiger Mining Inc. does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
SOURCE Red Tiger Mining Inc.
Contact
Red Tiger Mining Inc.
20 Toronto Street, 12th Floor, Toronto, ON, M5C 2B8
Fax: 416-367-3638
info@redtigermining.com
www.redtigermining.com
Dr. Thomas Utter
President and CEO
Tel.: +1 52 662 311 8839
thomasutter@gmx.net
David Lurie
CFO and Secretary
Tel.: 416-637-1517 x 107
dlurie@redtigermining.com