Rosita Mining Provides Update on Stockpile and Tailings Project in Nicaragua
Toronto, Ontario / TheNewswire / May 31, 2016 - Rosita Mining Corp. (RST: TSX-V) ("Rosita" or the "Company") is pleased to provide an update on the Santa Rita Stockpile and Tailings Project in Nicaragua.
DENM Engineering, ("DENM") which was awarded the engineering contract for work on the treatment plant, (see Press Release of March 21, 2016) have begun the next stage of their work program.
Metallurgical Program
The draft flow sheet has been completed by DENM and each aspect of this will be examined by a testwork program that is being designed by DENM, in collaboration with SGS Lakefield.
The program will start with bench scale testwork followed by a pilot plant test; concentrating on the higher grading North stockpile which will be the focus of initial production.
Staff at the mine site have taken a new sample from this area to supplement the earlier samples. New tailings samples for testwork have also been taken.
Testwork will provide the basis for more detailed engineering by DENM. Modelling will use estimates of reagent costs delivered to site and will examine and cost local capital equipment. This data will provide input for a Preliminary Economic Assessment ("PEA") to be completed in the 4th quarter of 2016. John Cook, President and CEO, stated that "Advances in the flow sheet development have been very positive but further testwork is required for confirmation of these results."
Santa Rita Stockpile Resources
The updated NI 43-101 resources for this metallurgical program were filed with Sedar on March 21st, 2016. This incorporated the results of a reverse circulation drilling campaign completed by Rosita in the fourth quarter of 2015. This work included 1,040 m of drilling in 55 vertical in-fill holes on five stockpiles located near the former Santa Rita open pit and 87 auger holes totaling 460 metres in a portion of the tailings piles, drilled in 2012 and 2013.
Drilling to test the tailings only tested a small portion of the overall tailing piles which remain open for possible resource expansion.
Table 1 - Indicated and Inferred Mineral Resource Estimate, Santa Rita Stockpiles
| Stockpiles | Class | Tonne (kt) | Au (g/t) | Contained Au (koz) | Cu % | Contained Cu (kt) | AG (g/t) | Contained Ag (koz) | NSR ($) |
| North | Indicated | 2,007 | 0.66 | 42.4 | 0.89 | 17.8 | 10.94 | 706.0 | 41.02 |
| Inferred | 907 | 0.65 | 19.0 | 0.95 | 8.6 | 12.28 | 358.0 | 42.54 | |
| East | Indicated | 1,049 | 0.30 | 10.1 | 0.43 | 4.5 | 8.77 | 295.8 | 20.44 |
| Inferred | 520 | 0.31 | 5.1 | 0.81 | 4.2 | 12.84 | 214.5 | 29.33 | |
| South | Indicated | 800 | 0.52 | 13.5 | 0.46 | 3.7 | 5.88 | 151.1 | 26.98 |
| Inferred | 634 | 0.43 | 8.9 | 0.29 | 1.9 | 3.90 | 79.5 | 20.35 | |
| Southwest | Indicated | 2,603 | 0.37 | 30.7 | 0.24 | 6.2 | 4.39 | 367.6 | 17.36 |
| Inferred | 796 | 0.41 | 10.5 | 0.27 | 2.2 | 4.21 | 107.7 | 19.37 | |
| Northeast | Inferred | 431 | 0.26 | 3.5 | 0.71 | 3.1 | 12.39 | 171.7 | 25.73 |
| North2 | Inferred | 150 | 0.68 | 3.3 | 0.71 | 1.1 | 5.42 | 26.1 | 36.36 |
| Stockpile Total | Indicated | 6,460 | 0.47 | 96.7 | 0.50 | 32.2 | 7.32 | 1,520.5 | 26.40 |
| Inferred | 3,437 | 0.46 | 50.3 | 0.61 | 21.0 | 8.66 | 957.5 | 28.71 | |
| Tailings | Inferred | 1,956 | 0.56 | 35.2 | 9.65 | 607.0 |
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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.
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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.
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3.The mineral resources in this press 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 the CIM Council.
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4.A gold price of US$1,200/oz, copper price of US$2.5/lb and silver price of US$16/oz were utilized in the NSR calculations of block values with process recoveries of 80% for gold, 35% for Cu (10% deducted for smelting) and 65% for silver. These values were equated against a cut-off grade of US$10 for stockpiles and 0.3 g/t Au for tailing mineral resources.
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5.For the cut-off grade, mining costs were assumed at US$1.50/t, process costs at US$7.84/t and G&A costs at US$1.50/t
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6.Totals in the table may not sum due to rounding.
About Rosita Mining Corporation
Rosita is a junior mining and exploration resource company focused on growing shareholder value through the development of near-term mining projects and advancing accretive exploration opportunities.
Rosita and Calibre Mining Corp. hold a 65% and 35% interest respectively in the Rosita copper-gold-silver supergene/skarn/porphyry project in Nicaragua located 275 kilometres northeast of Managua.
The technical information included in this press release has been reviewed and approved by John Cook, MIMMM, President and CEO of Rosita Mining Corp. and a "Qualified Person", under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
For additional information, please visit our website at www.rositaminingcorp.com.
For further information, contact:
John Cook, President and CEO
Telephone: +1 416 200 8073
Email: johncook@kos.net
or
Nick Tintor, Chairman
Telephone: 416 987 0855
Email: ntintor@rgmi.ca
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