Vancouver, British Columbia--(Newsfile Corp. - September 1, 2017) - Coronet Metals Inc. (TSXV: CRF) (FSE: 2CM) (OTC Pink: CORMF) ("Coronet" or "the Company") is pleased to announce that Mineworx Technologies Ltd. (TSXV: MWX) (OTCQB: MWXRF) ("Mineworx") completed the second round of hydrometallurgical test results on Coronet's gold-bearing tailings and dumps at its 100% owned White Caps Gold Mining Project ("White Caps" or "the Project").
As per the April 19, 2017 new release, Mineworx will be applying its license to utilize the EnviroLeach Technologies Inc. (CSE: ETI) ("EnviroLeach") patent-pending, non-cyanide leach formula to process the estimated 250,000 tonnes of gold bearing historic tailings and mine dumps at the project.
For the second round of hydrometallurgical testing Mineworx and Coronet focused on the Dumps and Pink Tailings which represents over 95% of the Project. The Bill Placer and Brown Tails were not tested during the second round. (See February 2, 2017 news release for those results).
Highlights of the hydrometallurgical test work can be summarized as follows:
- Average grades of 2.32 g/t Au on the Pink Tails
- Average grades of 1.33 g/t Au on the White Caps Dumps
- Recovery % as high as 72% in 24 hours on the Pink Tails
- Recovery % as high as 80% in 24 hours on the White Caps Dumps
Approximately 57 kg and 39 kg of the Dumps and Pink Tailings samples were provided to Mineworx for testing. These samples were sent to and independent laboratory, Met-Solve Laboratories, Inc, for preparation (proper crushing, splitting and grinding as required).
The samples were prepared as follows:
1. Pink Tails
The Pink Tails sample was slightly damp so it was dried and then rotary split to obtain representative subsamples for a head screen fraction assay for gold and ICP analysis. Smaller samples were also split out for the leach test work. No grinding was done on this sample as it was already relatively fine.
2. Dumps
The Dump sample, which contained coarse rocks along with fines, was subject to crushing prior to being split into sub-samples for a head screen fraction for gold assay and ICP analysis. A screen metallics assay was also done to minimize the nugget effect on this sample as it was thought to contain coarse gold. Three subsamples, weighing 2 kg each, were ground down to particle sizes of 56, 105 and 181 um (P80) for comparing the impact on grind size on leach extraction
Head and Screen Fraction Assays
Multiple head assays were carried out on the samples; head screen fraction assay (SFA), a bulk assay by Enviroleach on both samples and a screen metallics assay on the Dumps sample to address any potential nugget effect.
The average assay results for the Pink Tails and the Dumps were 2.32 g/t Au and 1.33 g/t Au respectively.
In general, the grades appear to be higher in the finer fractions of both samples with the highest grades occurring in the sub 400 mesh fractions indicating that the gold is likely finely disseminated.
Leach Test Results
Leach tests using variations of Enviroleach's proprietary technology were carried out on both samples however the Dumps samples were ground to different particles size prior to leaching.
1. Dumps
The results from leaching over 24 hours which included measuring incremental recoveries show that there is a significant increase in recovery by leaching for 24 hours. The recoveries were as high as 80%
2. Pink Tails
Similar to the Dumps sample, the results from leaching over 24 hours while measuring incremental recoveries show that there is a significant increase in recovery going to 24 hours. The recoveries were as high as 72% .
Coronet and Mineworx are confident in the the X-leach formula and will continue to adjust the formula as testing continues. The 2nd round results continue to be encouraging with increased recoveries from the first round of testing. The lower grades on the larger sample used in second round (2.32 g/t Au on the Pink Tails vs. 5.43 g/t Au in round one and 1.33 g/t Au on the White Caps Dumps vs 15.94 g/t Au in round one) shows that the grade of the gold-bearing tailings and dumps is not uniform and therefore further test work, including bulk sampling and/or drilling, will be conducted as a next step. Coronet and Mineworx are discussing the next steps of testing before a decision is anticipated with respect to commencement of work on a pilot plant to treat the tails and begin recovering gold at the White Caps property.
Furthermore the Company would like to announce that it has applied to the TSX Venture Exchange (the "Exchange") to amend the terms of 1,616,000 common share purchase warrants (the "2016 Warrants") as follows:
- the expiry date be extended by two years to September 19, 2019, and
- the exercise price be lowered from $0.50 to $0.35 per common share.
The 2016 Warrants were originally issued pursuant to a non-brokered private placement closed in September 2016. Each 2016 Warrant entitles the holder to acquire one common share in the capital of the Company at an exercise price of S0.50 per common share until September 19, 2017. No 2016 Warrants issued under the private placement have been exercised to date, and none of these warrants are held, directly or indirectly, by any insiders of the Company.
The amendments to the 2016 Warrants are subject to approval of the Exchange
Mr. Fred Tejada, P.Geo, a Director of the Company, is a Qualified Person under the meaning of Canadian National Instrument 43-101 and is responsible for the technical information contained in this news release.
Cautionary Notes Regarding The White Caps Production
The White Caps Mining Project has no established resource and is without a known body of commercial ore. The decision to commence production at the White Caps Mine and Coronet's plans for small scale mining and milling operations of the historic tailings and mine dumps were based on economic models prepared by Coronet in conjunction with management's knowledge of the property and the prior limited recent operating history of the White Caps Project. The production decision and operating plan for the processing of the tailings and mine dumps were not based on any preliminary economic assessment, a pre-feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with the production decision and operating plan, in particular the risk that mineral quantities and/or grades will be lower than expected, the risk that construction or operations will be more difficult or more expensive than expected, the risk that the Company will not be able to transport or sell the metal it produces on the terms it expects, or at all, the risk that due to the absence of a detailed economic and technical analysis according to and in accordance with NI 43-101 the production and economic variables associated with mineral extractions and sale may vary considerably. Readers are cautioned that no reliable estimates of future production capability or the economics of any extraction activity can be made.
* References to tonnages are historical estimates. The estimated tonnage of 250,000 tonnes was provided by the two different mining engineering companies in October 2011 that the Company engaged to provide an estimate. The stockpile measurement is a technique to measure the volume and weight of commodity stockpiles. It is a scientific/ instrumental method, using Total Station equipment to determine the volume of the stockpile quantity. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves nor does Coronet treat the historical estimate as current mineral resources or mineral reserves. The Company will have to conduct independent surveying, drilling, sampling and assaying of the tailings and mine dumps to determine the NI 43-101 tonnes and grades of the tailings and mine dumps. In conjunction with that, the Company will have to continue with independent metallurgical analysis to verify recoveries. This work will form the basis to upgrade or verify the historical estimates as NI 43-101 mineral resources or mining reserves.
About Coronet Metals
Coronet Metals Inc. is engaged in the business of acquiring, exploring and developing natural resource properties, with a focus on precious mineral properties/projects which have the potential for both near-term cash flow and significant exploration upside potential. Coronet's White Caps Gold Project is near the town of Manhattan in Northern Nye County. The Project is well in line with its strategy of acquiring precious metals mining projects which have the potential for both near-term cash flow and exploration upside.
The Company continues to pursue other near-term, promising high value gold and silver projects in the area that will augment its 120 patented and unpatented claims in the Manhattan District in Nevada. The Company is in discussions with third parties on possible acquisitions and to date nothing has been consummated
About Mineworx
Mineworx is positioned for growth through partnerships with advanced mining and E-Waste opportunities utilizing its licensed cyanide-free precious metals extraction formula and patent-pending portable extraction technologies. These three innovations will increase and enhance business opportunities by deploying cost effective, environmentally friendly extractive metallurgy solutions.
Forward Looking Information
This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are risks detailed from time to time in the filings made by the Company with securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.
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.
FOR FURTHER INFORMATION AND ENQUIRIES:
Theo van der Linde
President and CEO
Tel: +1 604-336-3193
Email: [email protected]
