Loma Larga – Outlook and Update

 

In June 2017, the company awarded the Feasibility Study (“FS”) of the Loma Larga Gold Project to a consortium of consultants led by DRA Americas Inc. (“FS Consultants”). The engineering work started immediately and is ongoing, preparing the FS, building upon the Company’s Pre-feasibility Study (“PFS”) prepared in 2016 (See Technical Report).

The FS Consultants have begun the engineering and permitting work on the mine adit for the Underground Confirmation Program (“UCP”), metallurgical test work on the confirmation of the process flow sheet along with testing of the low-grade portion of the resources to determine viability, mine design and infrastructure, as well as continuing work on hydrogeological and geo-mechanical models.

The purpose of the UCP will be to drive an access to the ore to allow further drilling of the resource, as well as obtaining further metallurgical samples, while studying the development of the water inflow model and the ground support requirements. This will also allow the Company to commence a training program for local constituents, who may have the opportunity to work at the mine during construction and later in operations. It is anticipated that the UCP will commence in 2018.

On September 18, 2017, the Company announced the results of the recent exploration program at Loma Larga The Company drilled 13 exploration holes at Loma Larga, totalling 4,567 m, primarily testing the western extension of the deposit and following up on mineralization discovered during the geotechnical drill program in early 2017. Management is encouraged with the results of the drill program which demonstrate the deposit remains open to the west and the broader high sulphidation system extends beyond the known resources. The next phase of the exploration program at Loma Larga will be to analyze the information collected and to target locations for potential high-grade feeder zone to the west, with the goal of adding to the current resource and to discover new deposits on the property. Please refer to press release for further details.