news Highbank retracts, clarifies Swamp Point disclosure
Ticker Symbol: C:HBK
Highbank retracts, clarifies Swamp Point disclosure
Highbank Resources Ltd (C:HBK)
Shares Issued 99,486,199
Last Close 2/13/2015 $0.165
Monday February 16 2015 - News Release
Mr. Victor Bryant reports
BCSC REVIEW DISCLOSURE
As a result of a review by the B.C. Securities Commission, Highbank Resources Ltd. is issuing the following news release to advise investors certain disclosure made in its news release of Oct. 14, 2014, website, corporate presentations, investor relations information handouts provided at the Vancouver Resource Investment Conference and videos pertaining to the Swamp Point aggregate project was not in accordance with National Instrument 43-101, and the company wishes to retract, restate and clarify such disclosure. The company:
-retracts statements and analyses regarding pre-tax profit, production economics, which could have been mistaken for a preliminary economic assessment ("PEA") or as qualifying an initial mineral reserve estimate. The company clarifies that it has no PEA or mining study suitable for public disclosure; -advises that while the Company has made the decision to put the Project into production, it is not basing its production decision on a feasibility study of mineral reserves demonstrating economic and technical viability and there may exist increased uncertainty, economic, and technical risk of failure associated with such production decision;
-retracts the use of any reference to gross in-situ aggregate values of the Project, including the value of "$2 billion" The Company clarifies that it has not done a pre-feasibility study necessary to qualify an initial reserve;
-clarifies the disclosure of its resource in the Project as follows:
-The mineral resource as was assessed by "Associated Geosciences" (now DMT Geosciences) in November 2007.
Limits consistent with mining and environmental regulations in British Columbia were applied prior to the resource calculation:
Material occurring within 30 m of the high water mark (HWM) was eliminated; there is a regulated offset from the HWM for minerals extraction. Material occurring within 5 m of the licence boundaries was not included in the estimate as there is a prohibition against working closer than 5 m to the license boundary in the BC mining code.
Material occurring within a band 15 m on either side of the crest of the banks of Donahue Creek was eliminated; working within these limits is forbidden under BC's environmental code.
The geological modeling and aggregate resource estimation was completed by Susan O'Donnell, Geol.I.T., under the direction of Mr. Keith McCandlish, P.Geo., using the Gemcom-Surpac (TM) suite of geological modeling applications.
Eric Beresford, P.Eng., completed the mine planning, under the direction of Peter Cain, Ph.D., P.Eng., AGL's Head of Mining Engineering. AGL has relied on aggregate testing results performed by Levelton Consultants of Richmond, B.C. in assessing the quality of the aggregates on the property. This testing was conducted on bulk samples collected by the Company and Portland Canal Aggregates Corporation ("PCAC").
The Industrial Mineral Resource Estimate tables' following provides resource volumes and tonnes for two separate areas, and a third summary table. The separate areas represent the License area held by PCAC and the area (the "extension area") for which an Investigation Permit was issued by the BC government for PCAC:
The specific gravity value of 2.17 used to convert volumes to tonnes is the value used by the Province of British Columbia to assess extraction tonnages for royalty revenue purposes.
Material located within 250 m of a drill hole and complemented by geophysical data has been classified as measured, while material located outside the 250 m radius of a drill hole but still within 125 m of a geophysical data point has been classified as indicated. Inferred resources encompass all additional material located outside the optimum range to which the data can reasonably be projected, but within the limits of mining.
The property has been has been designated as traditional Nisga'a land, however, this is under discussion as the Metlakatla are also claiming rights to area. Highbank has a cooperative agreement with the Metlakatla and a verbal commitment to employ Nisga'a First Nations which has already been enacted as the property is being developed.
The B.C. Ministry of Energy & Mines- Mines & Mineral Resources Division have approved the extraction of up to one million tonnes of aggregate, the associated mine plan and environmental requirements pertaining to the operation. Since the operation is in Canada there are no conceivable political risks associated with the operation. Also with the First Nations agreements in place, no socio-economic difficulties are anticipated.
An established engineering company has been retained to complete a preliminary economic assessment, the findings of which will be posted on SEDAR and public announcements made disclosing the report contents as required. The Company further wishes to clarify that all non-compliant information has been either removed or will be rectified.
The disclosure of the technical information contained in this news release has been reviewed and approved by Peter Cain, Ph.D., P.Eng., who is a Qualified Person as defined under NI 43-101.
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