Clarifying News Release on Bralorne PEA
17.10.2012 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/17/12 -- Bralorne Gold Mines Ltd. (TSX VENTURE: BPM) (OTCQX: BPMSF) (FRANKFURT: GV7) ("Bralorne or the Company") has been instructed by IIROC to issue this news release to clarify its recently announced Preliminary Economic Assessment on the Bralorne project located near Gold Bridge, British Columbia.The Company has been instructed to retract all the results of the economic analysis of the "Postulated Case of Increasing Operations to 250 tpd" because the results of this part of the analysis are not based on a current resource estimate as required by disclosure regulations. The results of the Postulated Case must not be relied upon.
The Postulated Case should be considered as a sensitivity analysis only that looks at expanding the mine if sufficient resources can be defined. The analysis was done to determine the physical and capital requirements, and the potential economic benefit. The results of the analysis are goals for further exploration and development.
The Preliminary Economic Analysis of the current operation shows that the Company is expected to have a positive net present value discounted at 5% of $6.4 million based on gold prices of US$1650/oz for 2012 and US$1500/oz for succeeding years, thus providing an acceptable return on investment. For clarification, the mine life on which the present operations 85tpd production rate NPV is based is 4.3 years, as described in the PEA report by Beacon Hill Consultants (1988) Ltd.
Furthermore, since the PEA is based on mineral resources and not reserves, the Company has been instructed by IIROC to state, as required by disclosure regulations, that "mineral resources that are not mineral reserves and do not have demonstrated economic viability."
For more information, please visit our website at: www.bralorne.com
ON BEHALF OF THE BOARD
William Kocken
Chief Executive Officer
This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
Neither 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.
Contacts:
Bralorne Gold Mines Ltd.
604.682.3701
604.682.3600 (FAX)
ir@bralorne.com
www.bralorne.com