Strongbow South Crofty Preliminary Economic Assessment On Schedule for First Quarter 2017
Water Treatment Testwork Initiated
Community Meetings Commence
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 24, 2016) - Strongbow Exploration Inc. (TSX VENTURE:SBW) is pleased to provide the following progress report for its wholly owned South Crofty tin project, Cornwall, UK:
P&E Mining Consultants Inc. engaged to produce a PEA for the South Crofty Tin Project
Strongbow is pleased to announce that P&E Mining Consultants Inc. of Ontario have been engaged to produce a Preliminary Economic Assessment ("PEA") of the South Crofty tin Project.
The PEA is expected to be completed in Q1, 2017.
P&E Mining Consultants Inc. also produced Strongbow's Mineral Resource Estimate, prepared in accordance with National Instrument 43-101 ("NI 43-101") for South Crofty, which was announced April 19, 2016, and filed on SEDAR (www.sedar.com) June 1, 2016. A summary of the NI 43-101 Mineral Resource Estimate is presented at the end of this release and can be found at www.strongbowexploration.com.
Water Treatment Testing
The Company has retained Siltbuster Ltd, one of the UK's leading water treatment providers, to conduct water treatment tests at South Crofty. The objective of the testwork is to demonstrate that mine water can be treated to remove suspended solids (iron oxide) and dissolved metals to meet Environment Agency guidelines for discharge. Test work is anticipated to commence in early November, 2016 and continue over a three month period. At the end of the test period the Company will apply to the Environment Agency for a discharge permit to commence dewatering the South Crofty mine.
The goal is to be able to treat and discharge up to 25,000m3 per day, which would allow for the mine to be dewatered over an 18-24 month period.
First Community Meeting held in Camborne
The Company hosted its first community meeting on Monday, October 10 at Camborne College. Approximately 80 people attended, including local councillors and parish councillors. The initial response to the Company's plans regarding South Crofty was very positive and overwhelmingly supportive. Further community meetings will take place as development at South Crofty progresses.
Richard Williams, President & CEO stated "We have made excellent progress on the ground at South Crofty since completing the acquisition of the project in July this year. Engaging the local community and other stakeholders, and working on a continuous basis with the Environment Agency, the Mineral Planning Authority, and the local council is fundamental to the future success of this project. We look forward to publishing the PEA results and completing the water treatment tests in Q1, 2017."
About South Crofty
The South Crofty tin project comprises an Underground Mine Permission area that covers 1,490 Hectares, an area which includes twenty six (26) former producing mines. Production records go back to 1592, but full-scale mining activities commenced in the mid 17th century. The mine closed in 1998 as a result of the tin price collapse of 1985 and impending changes to mining laws and liabilities in the late 1990s.
A new Mine Permit was granted in 2013, and is valid until 2071, subject to certain planning consents being discharged.
Strongbow acquired the project from administration in July 2016 (see news release dated July 12, 2016), following the publication of a new NI 43-101 Mineral Resource Estimate (see news releases dated April 19, June 1, and July 20, 2016).
The NI 43-101 Mineral Resource Estimate comprises two zones:
- A Lower Mine tin-only resource;
| Lower Mine Mineral Resource Estimate at 0.60% Sn Cut-Off | ||||||
| Tonnes ('000s) | Sn Grade | Contained Sn (tonnes) | ||||
| Indicated Resource | 1,660 | 1.81% | 30,000 | |||
| Inferred Resource | 738 | 1.91% | 14,100 | |||
- An Upper Mine polymetallic resource, comprising tin, copper and zinc:
| Upper Mine Mineral Resource Estimate at 0.60% SnEq Cut-off (1-12) | |||||
| Tonnes (k) | Sn % | Cu % | Zn % | SnEq % | |
| Indicated Resource | 257 | 0.70 | 0.79 | 0.58 | 0.99 |
| Inferred Resource | 464 | 0.67 | 0.62 | 0.63 | 0.91 |
Additional detail can be accessed from the NI 43-101 Technical Report on the Company's SEDAR page or from Strongbow's website at www.strongbowexploration.com, and key notes are provided below:
| (1) | CIM definitions were followed for Mineral Resources. |
| (2) | The Qualified Persons for this Mineral Resource estimate are: Richard Routledge, M.Sc. (Applied), P.Geo. and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. |
| (3) | Mineral Resources are estimated by conventional 3D block modelling based on wireframing at a 0.50% SnEq cut-off grade and inverse distance to the power of 3 grade interpolation. The 0.5% Sn/SnEq cut-off for wireframing vs 0.6% Sn/SnEq cut-off for resource reporting is due to a shift to lower Sn prices between the commencement and finalization of this report. |
| (4) | SnEq is calculated using the formula:%SnEq = Sn% + (Cu% x 0.311) + (Zn% x 0.084). |
| (5) | For the purpose of resource estimation, assays were capped at 20% Sn for the Lower Mine and 6% for Sn, 4% for Cu and 20% for Zn for the Upper Mine. |
| (6) | The 0.6% Sn/SnEq resource cut-off grade was derived from the approximate March 31, 2016 two year LME trailing average Sn price of US$8.50/lb, Cu price of US$2.75/lb, and Zn price of US$0.90/lb, 88.5%, 85% and 70% respective process recoveries, smelter payable of 95% and Sn refining charges of US$0.25.lb. Operating costs used were US$55/t mining, US$27/t processing and US$9/t G&A. |
| (7) | Bulk densities of 2.77 tonnes/m3and 3.00 tonnes/m3have been applied for volume to tonnes conversion for the Lower and Upper Mine, respectively. |
| (8) | Mineral Resources are estimated from near surface to a depth of approximately 869 m. |
| (9) | Mineral Resources are classified as Indicated and Inferred based on drill hole and channel sample distribution and density, interpreted geologic continuity and quality of data. |
| (10) | The mineral resources have been depleted for past mining, however, they contain portions that may not be recoverable pending a future engineering study. |
| (11) | 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. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. |
| (12) | Figures in table are rounded and may not sum exactly. |
About the Tin Market
Approximately 350,000 tonnes of tin is consumed annually worldwide. Over 50% of the tin is used in high tech electronics, mainly in the form of lead-free solder. Major producers of tin include China, Indonesia, Peru, Bolivia and Myanmar. In 2016, the tin price has increased from a low point of US$13,000 / tonne (US$5.91 / lb) in January to its current level of approximately US$20,000 / tonne (US$9.09 / lb). For more information on tin, please visit https://www.itri.co.uk (the International Tin Research Institute).
Qualified Person
Richard Williams, P.Geo. (BC), President & CEO of Strongbow and a Qualified Person under NI 43-101, has reviewed and approved the contents of this news release.
For additional information please contact Richard Williams at (604) 638-8005 or by e-mail at rwilliams@strongbowexploration.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard D. Williams, P.Geo
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 contains "forward-looking statements" including but not limited to statements with respect to Strongbow's ability to successfully treat mine-water to Environmental Agency discharge guidelines, to obtain an increase to the water discharge permit and planning consents for the South Crofty tin project, to dewater the mine within the time-frames contemplated and to deliver a positive PEA for the South Crofty tin project.
Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt of regulatory approvals and project social acceptability; risks related to general economic and market conditions; risks related to the availability of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities, the PEA and water treatment testing results; possible variations in mineral resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations.
Although Strongbow has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements. Strongbow undertakes no obligation or responsibility to update forward-looking statements, except as required by law.
Contact
Blytheweigh (Financial PR/IR - London)
Camilla Horsfall / Megan Ray
+44 (0) 207 138 3204