Iconic Minerals Ltd. Announces Review by BC Securities Commission of Content of PowerPoint Presentation on the Company's Website and Recent MD&A
21.08.2014 | The Newswire
Vancouver, August 21, 2014 / Iconic Minerals Ltd. (the Company or Iconic) ((TSX-V: ICM) (FSE: YQG) as a result of a review by the British Columbia Securities Commission (BCSC), is issuing the following news release to clarify its disclosure. On July 31, 2014, Iconic received a letter from the BCSC stating it had completed a technical disclosure review to assess the Company's disclosure practices and overall level of compliance. The review identified disclosure and filing issues with a PowerPoint presentation on the Company's website and November 21, 2013 to July 24, 2014 MD&A filings. Details are presented below. Given the material deficiencies in the Company's disclosure of resource estimates, and failure to file a supporting technical report, the BCSC has placed the Company on the Commission's Issuers in Default list.
Retraction of Current Resource Estimate at Hercules
In the April 2014 PowerPoint Presentation on its website titled "Corporate Presentation-Nevada Gold" the Company disclosed on page 6 under "Non-compliant Resource" an indicated and inferred resource for its Hercules Property (the April 2014 Estimate). This was from a mid-2012 draft report that the Company did not file on SEDAR, and not previously disclosed by news release. The page 6 disclosure was as follows:
- "Indicated Resource of 473,000 ounces (13.4 Mi g/t) of Gold and 6.5 million ounces (184.3 Mi g/t) of Silver, Avg grade 0.0141 opt AuEq"
- "Additional Inferred Resources of 427,000 ounces (12.1 Mi g/t) of Gold and 6 million ounces (170.1 Mi g/t) of Silver, Avg grade 0.0144 opt AuEq"
During the course of a previous BCSC review, the company disclosed a smaller estimate of the same grade in its July 24, 2012 news release (the July 2012 Estimate). At that time, the company was unable to support the July 2012 Estimate by filing a compliant technical report, and the company retracted the July 2012 estimate in its August 31, 2012 news release.
The Company hereby retracts the above April 2014 resource estimate at Hercules. The Company's September 7, 2012 NI 43-101 Technical Report on the Hercules Property is still the current technical report, and does not contain any current resource estimates at Hercules. There are historical resource estimates at Hercules, supported by the September 7, 2012 Technical Report, as follows:
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|“Drill Indicated” Resource (Historical)
|
|-------------------------------------------------------------------------|
|Total |Avg Grade|Contained|Avg Grade,|Contained |Avg
Grade,|Contained|
|Short |Au EQ |Ounces |Ag Only |Ounces, Ag|Au Only
|Ounces, |
|Tons |(opt) |(AuEQ) |(opt) |Only |(opt) |Au
Only |
|-------------------------------------------------------------------------|
|24,000,000|0.024 |580,000 |0.271 |6,500,000 |0.019
|470,000 |
|-------------------------------------------------------------------------|
|Inferred Resource (Historical)
|
|-------------------------------------------------------------------------|
|Total |Avg Grade|Contained|Avg Grade,|Contained |Avg
Grade,|Contained|
|Short |Au EQ |Ounces |Ag Only |Ounces, Ag|Au Only
|Ounces, |
|Tons |(opt) |(AuEQ) |(opt) |Only |(opt) |Au
Only |
|-------------------------------------------------------------------------|
|24,000,000|0.021 |527,000 |0.250 |6,000,000 |0.018
|427,000 |
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Mr. Paul Noland, a Qualified Person, completed a technical report on the property for Willow Creek Enterprises, Inc. ("Willow Creek"), entitled "Hercules Project, Lyon County, Nevada, Revised Technical Report" and dated April 6, 2011. (the "WCE Report"). The WCE Report included an "historical estimate" (the "Willow Creek Estimate" or 'WCE') which does not qualify as a current mineral resource under NI 43-101. The WCE should not be relied upon due to the irregular and sometimes widely spaced drill intercepts, unverifiable drill and trench composite samples, and the unsupported projection of mineral polygons between sections, between drill intercepts, down dip and along strike.
The Willow Creek Estimate was based on 113 of 221 drill holes distributed throughout four separate Target areas. Many of the earliest drill holes were assayed for gold only and were consequently removed from consideration in preparing the Willow Creek Estimate. The Willow Creek Estimate utilized polygons created on cross-sections of the existing drill holes. The polygons were projected to surface where detailed and reliable surface trench sampling was available. The sections were spaced on 100 foot to 200 foot intervals. A gold equivalent was used based on the historic and unverified metallurgical work conducted in the mid 1980's. The Willow Creek Estimate is an historical estimate and does not represent current mineral resources or mineral reserves under NI 43-101 and the Company is not treating the estimate as a current mineral resource. The Willow Creek Estimate was calculated using wide spaced as well as close spaced drill holes with continuity between some areas only suggested by geology and alteration patterns. Additional drilling is needed to verify this historical estimate. A qualified person has not done sufficient work to classify the Willow Creek Estimate as current mineral resources or mineral reserves under NI 43-101.
Clarification of New Pass Property Resource Estimates
In the Company's MD&A beginning with the MD&A dated November 21, 2013, and continuing to the MD&A dated July 24, 2014, the Company disclosed an out-of-date resource at its New Pass Property. The resource disclosed was from an October 18, 2006 NI 43-101 report by Sam Arentz. The resource reported in the November 21, 2013 MD&A filings on page 3 was as follows:
"According to the Arentz report the New Pass project contains an Inferred Mineral Resource of 11.5 million tons (10.5 million tonnes) averaging 0.0226 oz/t (0.78 g/t) gold and 0.2214 oz/t (7.59 g/t) silver. This is equivalent to approximately 260,000 ounces of gold and 2.546 million ounces of silver."
This 2006 resource estimate for New Pass was updated in a September 3, 2010 NI 43-101 report by Paul Noland. The Noland report lists the following inferred resource on page 2:
|
|Inferred Resource Summary | |
|
|-------------------------------------------------------------------------|
|Total |Avg Grade|Contained|Avg Grade,|Contained |Avg
|Contained|
|Short |Au EQ |Ounces |Ag Only |Ounces, Ag|Grade,
|Ounces, |
|Tons |(opt) |(AuEQ) |(opt) |Only |Au |Au
Only |
| | | | | |Only |
|
| | | | | |(opt) |
|
|-------------------------------------------------------------------------|
|15,515,488|0.022 |341,750 |0.202 |3,139,054 |0.018
|282,986 |
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Iconic failed to update its MD&A from the 2006 estimate to the newer 2010 estimate. When reporting this estimate in the MD&A it failed to report the date of the report and to provide the name of the Qualified Person.
The Company retracts the 2006 resource estimate and replaces same with the 2010 estimate as shown above. It will update its future MD&A with the more current 2010 estimate.
Richard Kern, Certified Professional Geologist (#11494) and CEO of Iconic is the Qualified Person who has prepared and reviewed this press release in accordance with NI 43-101 reporting standards.
On behalf of the Board of Directors
SIGNED: "Richard Kern"
Richard Kern, CEO
Contact:
(604) 336-8614
For further information on ICM, please visit our website at www.iconicmineralsltd.com
The Company's public documents may be accessed at www.sedar.com
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.
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