QMX Gold Outlines Potential New Production Targets and Provides Corporate Update
TORONTO, ONTARIO--(Marketwired - Sep 29, 2015) - QMX Gold Corp. (TSX VENTURE:QMX)("QMX Gold", "QMX" or the "Company") wishes to outline its upcoming operational plans, including the discovery and way forward on several new production targets, on its extensive land-package in Val d'Or, Quebec. Along with the focus on exploration and discovery on its own properties, the Company is actively seeking mine projects for acquisition, joint venture or option in the Val d'Or area, and will continue to operate the Aurbel gold mill as a toll milling facility providing services to projects in the Abitibi Region.
New Production Targets
QMX is moving ahead with the search for, and discovery of, new sources of ore on the Lac Herbin Property. The Company has identified three targets with excellent potential in the short term for future production.
Lac Herbin - FL3 Zone - The FL3 Zone is located near the top of the principal Lac Herbin access ramp and is recognized as one of three en-echelon zones which trend towards surface. The FL1 and FL2 zones respectively were mined in 2014 from development 105 meters and 65 meters below surface. The FL3 zone was highlighted in mapping and sampling in June and twelve short drill holes were completed to delineate the high-grade, narrow, Quartz-Tourmaline-Pyrite Vein. Engineering design work required to exploit the zone was recently completed and mining of the zone was tendered to Mining Contractors active in the region. QMX Gold expects mining of the area to commence in October and continue for approximately two months.
Lac Herbin Mine - An additional 4,000 metres of delineation or exploration drilling has been planned in the upper part of the mine to test at least five additional targets which may offer potential for development and mining in 2016. Two targets currently have Inferred Resources and lie on the S1 shear, one of the principal shears at the Lac Herbin Mine. Drilling on these targets requires the use of the ramp as a drilling platform and therefore, has always been hampered by mobile equipment travelling in the ramp.
An initial program of 2,000 metres of delineation or exploration drilling will take place during mining on the FL Zone in 2015. This will allow drilling and mining to benefit from shared mine support costs over this period. QMX Gold will keep the mine dewatered to the 260-meter level in order to maintain ventilation and safety access in the upper levels. This will support the potential underground mining on these targets in 2016 should Reserves be established.
Ferdeber Open Pit - A potential open pit target has also been identified only 200 meters from the Aurbel Mill. It may represent the crown pillar of the Shaft Zone at the historic Ferdeber Mine. An initial open pit design has been developed and a seismic survey and geotechnical overburden drilling program completed. A program of ten shallow surface drill holes is in progress to further delineate the deposit and confirm grade. QMX will perform more advanced engineering studies, providing that the potential economics remain positive.
Other Targets - QMX Gold has identified several additional open pit targets on the large land package held in the Val d'Or area. These are prioritized and appropriate work is being advanced to evaluate their potential.
Aurbel Mill
Mining activities at the Lac Herbin Mine ceased in April 2015 and the mine was temporarily closed. All accumulated stockpiles of broken ore were processed by the end of July. In August 2015, QMX Gold elected to take the temporary closure as an opportunity to undertake a three-month clean-up and maintenance program at the Aurbel Mill.
QMX is also working on the clean-up of slag generated during the gold smelting process and accumulated at Aurbel over the last three years. Approximately 20 tonnes of slag has been shipped to a refinery in the USA for further processing.
QMX Gold anticipates that enough gold will be recovered from clean-up and slag that this can be considered a source of cash flow for the company over the short term.
Lac Pelletier Update
QMX acknowledges the termination of the option agreement from Thundermin Resources Inc. ("Thundermin") on the Lac Pelletier Property in Rouyn-Noranda.
On September 1, 2005, Thundermin granted QMX an option (the "QMX Option") to acquire a 100% interest in the Pelletier Lake Property subject to annual Advanced Royalty payments and a 2.5% NSR to Thundermin. In September 2010 Thundermin, upon notification that QMX had vested in the property, elected to contest this notification through binding arbitration. The result of arbitration was announced in May 2014 and confirmed QMX's right to a 100% interest in the Pelletier Lake Property. It also confirmed that QMX should make annual Advanced Royalty payments as agreed in the original contract, and recommencing in September 2015. The arbitration decision also imposed a firm date for QMX to achieve commercial production, February 28, 2018.
QMX notified Thundermin in late August 2015 that, due to market conditions, in particular as related to Mine financing, and due to the loss of momentum on the project due to the four-year arbitration process; QMX considered the Production Deadline impractical. QMX requested that Thundermin agree to renegotiate the agreement in order to identify reasonable conditions for continuing exploration and subsequent development and production, prior to making the Advanced Royalty payment. Thundermin has terminated all rights of QMX and have requested that QMX submit a written proposal setting out its views as to the terms of a renegotiated agreement. QMX is currently reviewing its response.
Qualified Person
Scientific and technical information included in this release have been supervised, compiled, reviewed and approved by David Rigg, P.Geo., Chairman, President and CEO of the Company and a Qualified Person as defined under NI 43-101.
About QMX
QMX Gold Corp. is a Canadian mining company traded on the TSX-V under the symbol "QMX". The Company is focusing on mine development and exploration in Quebec and is actively looking for mining projects for acquisition or option in the Val d'Or area. In addition, QMX operates its Aurbel gold mill as a toll milling facility servicing clients in the Abitibi Region.
Cautionary Note Regarding Forward-Looking Information and Mineral Resources:
This press release contains or may be deemed to contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements (express or implied). Generally, forward-looking information 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", 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". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, its properties and/or its projects to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the disclosure documents of the Company filed under the Company's profile on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. It should also be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
QMX Gold Corp.
David Rigg
Chairman, President and CEO
(416) 861-5889
QMX Gold Corp.
Louis Baribeau
Public Relations
(514) 667-2304
QMX Gold Corp.
Rob Hopkins
Investor Relations
(416) 861-5899
QMX Gold Corp.
Toll free: +1 877-717-3027
info@qmxgold.ca
www.qmxgold.ca