Americas Bullion Completes Acquisition of Springer Mining Company and Nevada Assets, Acquires Additional Royalty Interests from Atna Resources Inc.
Americas Bullion Royalty Corp. (TSX: AMB) (the “Company” or “AMB”) is pleased to announce it has closed the previously announced transaction with EMC Metals Corp. (“EMC”) to acquire a 100% interest in EMC’s wholly owned subsidiary, the Springer Mining Company (“Springer”), including all related mine, mill and tungsten resource assets, along with other Nevada mineral properties, for US$5.0 million. The Company is also pleased to announce it has acquired five additional royalty interests, from Atna Resources, Inc., for the purchase price of US$120,000.SPRINGER MINING COMPANY, NEVADA
Springer is a former tungsten production facility consisting of a 1,360-ft vertical shaft and underground workings, a 1,200 ton per day mill with automated rod/ball mill grinding and flotation circuits, plus all water rights, and virtually all permits necessary for operation of the facility. The original construction cost for the asset in 1981 was $71 million, and EMC has invested approximately $20 million in mill and site refurbishment and upgrading/automation in the last 4 years.
Springer is located in Pershing County between Winnemucca and Lovelock, Nevada and is accessible by paved road. The mine and mill were originally constructed by General Electric in the late 1970’s. The mill facility has been maintained on care and maintenance continually with major renovation conducted between 2007 and 2012. Springer is immediately adjacent to the Company’s Humboldt mill site which includes several permits related to the potential development of a 200 tpd gravity floatation gold circuit.
In 2012, EMC Metals Corp. demonstrated viability of restarting the Springer project with the issuance of a new and larger tungsten mineral resource, along with a Preliminary Economic Assessment (“PEA”) filed on SEDAR in a NI 43-101 Technical Report.
Asset Highlights
- Underground & surface mine along with surface mill facility;
- Current mineral resource and PEA completed and disclosed in accordance with NI-43-101 and filed on SEDAR;
- Mine/mill sized for 1,200 tpd - production capacity of 146,000 MTU WO3 p.a;
- Located in a historic tungsten-producing district, with excellent infrastructure in place;
- Environmental and operating permits largely in place to re-start facility;
- Strong tungsten prices, advanced permitting status, and a refurbished mill are cited in the PEA as likely leading to production capability within 12 months of funding.
On September 20, 2012, EMC announced the results of a positive, Preliminary Economic Assessment ("PEA") in accordance with NI 43-101. The PEA was prepared for EMC by Associated Geosciences LTD. of Calgary, Alberta, Canada, and Practical Mining LLC. of Elko, Nevada, USA, both independent mining industry consultants.
| Highlights from the PEA/Resource Update*: | |||||||||||||||
| Springer Mine - Mineral Resource Statement of Resources | |||||||||||||||
| Resource | Cut-Off Grade | Resource | Grade | Contained Tungsten Units | |||||||||||
| STU's | MTU's | ||||||||||||||
|
| |||||||||||||||
| Indicated Total (Sutton only) | 0.20% | 355,000 | 0.537% | 190,635 | 172,990 | ||||||||||
| Inferred (by location) | |||||||||||||||
| Sutton Resources | 0.20% | 1,616,000 | 0.459% | 741,744 | 673,089 | ||||||||||
| George Resource | 0.20% | 143,950 | 0.423% | 60,863 | 55,230 | ||||||||||
| O'Byrne Resources | 0.20% | 173,670 | 0.862% | 149,719 | 135,861 | ||||||||||
| Inferred Total | 0.20% | 1,933,620 | 0.493% | 952,326 | 864,180 | ||||||||||
| NOTE: A short ton unit (STU) = 20lbs. WO3: a metric ton unit (MTU) = 22.04lbs. WO3 Effective Date of August 20, 2012 | |||||||||||||||
- Project restart is economic, feasible, and supported by existing tungsten prices, based on a five year production schedule from the current mineral resource
- Five-year mine life NPV of $22.8 million (8% discount, constant dollar, after tax)
- IRR of 47% on restart capital of just under $30 million
- Indicated resource increase of 81,000 tons (+29.6 %) over previous resource estimate
- Inferred resource increase of 837,600 tons (+76.3 %) over previous resource estimate
- New resource added on western side of the property, no previous resource estimate; and
- Average annual tungsten (WO3) production of 134,960 MTU (total 674,790 MTU) (1)
* Based on the technical report entitled “Preliminary Economic Assessment of the Springer Tungsten Mine, Pershing County, Nevada, USA” prepared for EMC Metals Corp. by Associated Geosciences Ltd. of Alberta, Canada. Resource estimates have an effective date of August 20, 2012. To the best of the Company’s knowledge, information, and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources and results of the preliminary economic assessment inaccurate or misleading. The preliminary economic assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Michael Maslowski, a qualified person under NI 43-101, reviewed the report on behalf of AMB.
(1) A price of tungsten of $US400 MTU, or $US320 per tonne of concentrate, was used.
CARLIN VANADIUM, NEVADA
In connection with the Springer acquisition, AMB also closed its acquisition of the Carlin Vanadium property under the terms of the LOI with EMC. One of the largest known primary vanadium resources in the United States, the Carlin Vanadium property consists of 72 unpatented mineral claims covering 1,149 acres (~578 hectares). The property is located along the Carlin gold trend 10 km southwest of Newmont's Carlin Operations, approximately 10 km west of Newmont's Rain Deposit (gold), and 15 miles from the community of Carlin, Nevada. Mineralization is hosted within a 50 ft thick horizon of black shales within the Devonian Woodruff Formation, which consists of dark grey to black siliceous mudstones, and chert with lesser amounts of shale, siltstone, dolomitic siltstone, and calcareous sandstone. The Woodruff formation is unconformably overlain by shallow dipping Permian-Pennsylvanian siltstones, shales, conglomerates, and carbonates of the Chainman and Diamond Peak Formations. Anomalous gold has been encountered in limited surface exploration of the upper plate.
EMC Metals received a technical report prepared pursuant to NI 43-101 from SRK Consulting (US), Inc. entitled “NI 43-101 Technical Report on Resources - EMC Metals Corp. - Carlin Vanadium Project -Carlin, Nevada” with an effective date of April 9, 2010. The technical report disclosed a resource estimate including an inferred resource of 25.4 million tonnes, grading 0.51% V2O5, containing 289 million pounds of V2O5, at 0.3% cut-off grade. To the best of the Company’s knowledge, information, and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading.
COPPER KING PROJECT, NEVADA
In connection with the Springer acquisition, AMB also closed its acquisition of the Copper King Property, Nevada, located in Pershing County, Nevada, as outlined under the terms of the LOI with EMC. The Copper King Property is comprised of 8 Lode mining claims. A historic resource is reported of 500,000 tons of 0.45% WO3 (Nevada Bureau of Mines, Bulletin 105, 1988). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
ACQUISITION OF ROYALTY INTERESTS
The Company has completed a Royalty Purchase Agreement with Atna Resource, Inc. for the purchase of five royalty interests for US$120,000.
| Property | Location | Operator | Atna NSR | Metal | ||||||||
| Adelaide | Nevada, USA | Wolfpack Gold | 1.5%* | Au | ||||||||
| Atlanta | Nevada, USA | Meadow Bay | 3.0% | Au | ||||||||
| Tuscarora | Nevada, USA | Wolfpack Gold | 1.5% * | Au | ||||||||
| Windfall Hills (Uduk Lake) | British Columbia, Canada | Canarc Resources | 3.0% | Au, Ag | ||||||||
| Celeste | Chile, Region II | Coro Mining | 0.5% | Cu | ||||||||
* 1.5% NSR when gold prices are above $900/oz.; can be reduced as low as 0.5% if new royalties are placed on projects.
Acquisition of the Adelaide and Tuscarora Royalties for projects operated by Wolfpack Gold Corp. (TSX:WFP.V) were a driving factor in the royalty interest acquisition. The Adelaide and Tuscarora Projects are located in Humboldt and Elko Counties, Nevada and are subject to sliding scale royalties which include a 1.5% Net Smelter Revenue Royalty when gold is over $900/oz, now held by the Company.
The Celeste Project associated with various mining concessions located in the community of Chanaral, III Region of Chile, now subject to a 0.5% Net Smelter Royalty by the Company. The Atlanta Project is comprised of 125 unpatented lode mining claims in Lincoln County, Nevada to which the Company now retains a 3% Net Smelter Revenue Royalty Interest. The Uduk Lake Properties are located 65 kilometres south of Burns Lake in the Omineca Mining Division of British Columbia and total 83 units totalling 959.2 ha., to which the Company now holds a 3% Net Smelter Revenue Royalty.
The technical content of this news release has been reviewed and approved by Michael Maslowski BSc, CPG, the Company's Chief Operating Officer and a Qualified Person as defined by National Instrument 43?101.
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. invests in undervalued natural resource assets seeking to provide superior investment returns. Americas Bullion’s assets include royalty holdings across Mexico, Nevada, Wyoming, Oregon and California; the Springer Tungsten Mine and Mill; the Taylor mill and Humboldt mill site in Nevada; the Brewery Creek project, and a portfolio of Yukon exploration properties. The Company provides shareholders with the potential for exploration success through equity positions in related companies while continuing to advance and monetize its holdings.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Americas Bullion’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Americas Bullion assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Contact
Americas Bullion Royalty Corp.
William M. Sheriff, Chairman & CEO
208-635-5415
info@aubullion.com
www.aubullion.com