Post by
r2j316 on Jan 18, 2007 8:33am
NEWS !!
EXMIN Resources Inc.-Moris Mine Update: Due Diligence Program Confirms Grades and Potential to Expand Historical Resources; Process Improvements Identified, Ni 43-101 Report Commissioned
CCNMATTHEWS
EXMIN Resources Inc.
January 18, 2007 - 08:32:02 AM
EXMIN Resources Inc.-Moris Mine Update: Due Diligence Program Confirms Grades
and Potential to Expand Historical Resources; Process Improvements Identified,
Ni 43-101 Report Commissioned
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - EXMIN Resources
Inc. (EXMIN) (TSX VENTURE:EXM) is pleased to provide shareholders with an
update on the due diligence program at the Moris Mine that led to the positive
decision to complete the purchase of the assets of Minera Moris, in
conjunction with Minera Hochschild Mexico, S.A. de C.V, a subsidiary of
Hochschild Mining plc (Hochschild) (HOC.L for Reuters, HOC LN for Bloomberg)
as announced on December 12, 2006.
According to the results of due diligence program at the Moris Mine, EXMIN
believes that:
- Drill testing of the proven and probable blocks in the historical reserve
has confirmed the validity of historical data, and an NI 43-101 report is
being prepared on the resource.
- Exploration down dip and along strike from the mined portion of the Santa
Maria vein and in nearby areas of alteration and veining within the Moris Mine
land package is planned to identify additional mineralized zones.
- Preliminary results of metallurgical testing currently in progress indicate
that gold recoveries of 70% could be achieved when optimum crush sizes are
obtained.
- Review of historical operational data indicates that significant quantities
of gold may remain in the previously leached material, and that reprocessing
of the old heap to recover additional metal may be warranted.
- EXMIN and Hochschild believe that production may commence at the Moris Mine
in the third quarter of 2007, based upon analysis of the due diligence data
and evaluation of the mine installations.
Karl J. Boltz, President and CEO of EXMIN, stated, "The Moris Mine due
diligence program focused on confirming the grades of the historical reserve
that was left by Manhattan and also evaluated the historical feasibility and
operational data on the mine. All the permits and infrastructure have been
maintained and are in good shape, and miners living in Moris are available and
willing to work at the mine. EXMIN has engaged a Qualified Person under NI
43-101 standards to complete the work necessary to be able to determine
resources at the mine in the first quarter of 2007. The Moris Mine asset will
help EXMIN to qualify for listing on the TSX as we step towards planned
production by Q3 2007."
The Moris Mine purchase agreement is one of two joint venture agreements
between EXMIN and Hochschild's Mexican subsidiary, Minera Hochschild Mexico,
S.A. de C.V. (MHM), the project operator. EXMIN and Hochschild agreed to
purchase 100% (EXMIN 30%, Hochschild 70%) of the Moris Mine and facilities
from the former owner, Minera Moris, for a total purchase price of US$6
million plus 15% VAT (see News Release of July 19, 2006).
EXMIN has also signed an earn-in exploration joint venture agreement whereby
Hochschild can earn up to 70% interest in EXMIN's 100% mining concessions
related to an area of approximately 73,500 hectares that forms the Moris
exploration project that was announced on March 22, 2006 (see News Releases of
March 22 and July 18, 2006).
Moris Mine - Santa Maria Vein System And Production History
The Santa Maria vein system consists of massive quartz vein material with
stockworks in the adjacent wall rock and varies from a few metres to more than
30 metres in width. The vein strikes approximately north-south and is exposed
as erosional remnants on three hills exposed over a 1.1 kilometre strike
length at the edge of the Moris valley.
The vein dips moderately towards the valley, providing an ideal geometry for
bulk-tonnage mining with a low stripping ratio. Manhattan Minerals (Manhattan)
defined three deposits that correspond to the 3 erosional remnants. All of
Manhattan's production came from southernmost and largest of the bodies, the
Creston deposit.
The Moris Mine was operated by Manhattan from 1996 to 1999 and was shut down
in 2000 due to low gold prices. At the time of the mine's closing, Manhattan
had been producing 3000 tons per day and reported a remaining proven and
probable mineable reserve of 3.1 million tonnes at grades of 1.73 grams per
tonne (g/t) Au and 6.55 g/t Ag based on an independent estimate by JAC
International Ltd. of Tucson, Arizona ((i)See Note below). This model used a
gold price of US$300, a cutoff of 0.74 g/t gold equivalent and a recovery of
65%, and resulted in a low strip ratio of 1.5 tonnes of waste for every 1.0
tonne of ore moved. Also, the historical data indicate that the highest grade
portion of the deposit remains in the unmined portion of the Creston pit.
A total of 4.05 million tonnes of potential mineralization at similar grades
was classified by Manhattan as measured and indicated resources and included a
fourth deposit on a separate structural zone that has only been partly
explored. The total inferred resource at that time was stated to be 4.7
million tonnes for a total of about 250,000 ounces of contained gold and
850,000 ounces of contained silver. The table below summarizes the Manhattan
reserves and resources at the time the mine was shut down.
Historical reserves and resources reported by Manhattan in 2000
------------------------------------------------------------------------
Category Tonnes (000) Au (g/t) Ag (g/t) Au (oz) Ag (oz)
------------------------------------------------------------------------
------------------------------------------------------------------------
Mineable Reserves 3,139 1.73 6.55 174,672 661,399
------------------------------------------------------------------------
Measured and
Indicated Resources
(includes reserves) 4,050 1.62 5.79 210,941 753,919
Inferred Resources 667 1.86 4.65 39,887 99,717
(i) Note: EXMIN is reporting data from the operation of Manhattan
Minerals from 1996-2000. These data were generated before current
industry regulations were adopted under NI 43-101 standards. EXMIN
considers these data 'historical' in nature and has engaged a
Qualified Person to complete a report under NI 43-101 guidelines in
order to recalculate the 'historical estimate' following CIM
classifications, and until complete, the 'historical information'
should not yet be relied upon. The EXMIN-Hochschild JV is in the
process of replacing the 'historical data' with due diligence data
of its own, as reported in this release.
Due Diligence Program - Drilling Confirms Historical Resource Blocks
Confirmation drilling of the remaining historical resource blocks that were
reported by Manhattan on closing of the mine in 1999 was carried out during
the 6 month due diligence period. A total of 1,126.45 metres have been drilled
in 21 diamond drill core holes to confirm the reserve data: ten holes were
drilled on the Creston deposit, five on the San Luis deposit and six on the
Eureka deposit (see table below). Assay results from one hole are pending.
Internal analysis by EXMIN and Hochschild personnel have verified the
Manhattan data to the Companies' satisfaction, based on comparative analysis
of the assays and lithologic data obtained from the due diligence program and
from the Moris Mine database, subject to the preparation of a NI 43-101 report
by a Qualified Person under CIM classifications.
Assay results from drilling of the historical resource, Moris Mine
--------------------------------------------------------------------------
Intercept Inclin-
Drill Hole Depth (m)(ii) Au (g/t) Ag (g/t) TD Azimuth ation
--------------------------------------------------------------------------
Creston Deposit
---------------
HMC-1 33.7 3.6 0.86 1.8 75 90 -45
and 52.0 6.0 0.50 2.9
HMC-2 50.0 1.35 0.65 2.5 51.35 90 -50
HMC-3 16.0 16.45 0.74 2.0 62 90 -50
and 36.0 11.65 1.76 2.5
HMC-4 26.0 28.4 3.22 4.3 99 90 -45
includes 9.0 6.86 5.7
HMC-5 2.7 0.45 3.38 60.0 42 70 -45
and 11.5 6.7 (FW) 2.45 8.7
includes 0.45 13.85 14.5
HMC-6 6.9 9.0 13.37 19.9 60.1 90 -45
includes 3.0 33.67 41.1
HMC-7 20.4 6.6 0.53 1.9 46.5 90 -45
and 39.45 1.45 (FW) 4.47 3.4
HMC-13 16.0 11.6 1.62 3.1 44.8 -- Vertical
includes 2.6 4.30 7.8
HMC-14 35.85 11.5 3.01 4.4 70 90 -75
includes 0.75 19.40 27.2
HMC-17 8.4 18.1 3.76 4.8 40 -- Vertical
includes 3.0 15.33 14.7
and 34.05 4.0 (FW) 0.49 1.9
San Luis Deposit
----------------
HML-1 1.3 7.4 0.97 2.5 60.6 -- Vertical
HML-2 33.5 2.5 (FW) 0.52 0.8 39.9 -- Vertical
HML-4 3.5 8.5 (HW) 1.85 7.9 53.1 -- Vertical
and 16 1.05 (HW) 3.32 3.0
and 19 13 1.00 3.3
and 39 1.0 (FW) 1.84 2.1
HML-5 2.3 20.45 0.95 7.5 57.8 -- Vertical
includes 8.15 1.32 11.1
HML-6 1.1 5.7 1.40 7.6 72.15
and 31.25 3.45 1.95 1.3
Eureka Deposit
--------------
HME-1 3.2 2.1 0.62 1.4 46.8 90 -45
HME-2 2.1 11.35 1.26 11.9 40 90 -45
HME-3 1.4 7.0 2.00 6.6 35.35 90 -45
HME-4 1.15 5.15 1.12 4.9 40 -- Vertical
and 22 1.5 3.00 8.7
HME-5 16.4 5.6 1.16 2.6 40 -- Vertical
HME-6 Pending 50
--------------------------------------------------------------------------
(ii) Intercepts approximate true widths for angle holes and are greater
than true with for vertical holes. Intercepts include the main vein as
well as hangingwall (HW) and footwall (FW) zones.
Note: Results for holes HMC-1 to HMC-7 were previously released but
intercepts have been recalculated, and are included for the purpose of
continuity.
Due Diligence Program - Surface Channel Sampling Confirms Grades
Several trenches and road cuts were sampled in the Creston and San Luis
deposits. This data also confirms the grades of the mineralization as reported
in the historical reserve (see table below). The widths of the mineralized
zones reported do not represent true widths, because the trenches in the
Creston deposit, although transverse to the vein, are horizontal across the
dipping vein, while the San Luis samples were taken in road cuts as horizontal
channels both transverse to strike as well as parallel to the strike
direction.
Channel samples from the Moris mine
------------------------------------------
Au Ag
Trench/Cut Interval (g/t) (g/t)
------------------------------------------
Creston
-------
1 19.2 0.99 4.2
2 23.7 1.00 3.2
with 12.0 1.34 4.1
3 29.7 1.53 7.2
with 11.4 2.48 6.2
San Luis
--------
508 42.0 1.11 6.7
with 6.0 3.73 13.5
509 22.0 2.98 6.2
510 16.0 4.68 5.7
Moris Mine Upside - Operational Changes May Increase Recoveries
Analysis of the mine production data shows that problems with metallurgical
recoveries that plagued the Moris Mine operation were most likely a result of
changes to the crushing circuit made in an attempt to mitigate the effect of
the low gold price in 1998 and 1999. These changes included an increase in
plant throughput that resulted in a larger than optimal crush size and removal
of the agglomerator, factors that apparently negatively impacted metal
recoveries.
Metallurgical tests for Manhattan's feasibility study for the original mining
operation were performed by Kappes Cassidy and Associates and indicated gold
recoveries in excess of 70% for a crush size of 100% -6.3 mm. Data from the
Manhattan operation indicates that the crushing circuit averaged about 80%
-12.5 mm and in the last few months of operation, averaged about 80% -20mm.
Preliminary results of metallurgical studies currently in progress by Kappes
Cassidy and Associates also indicate that gold recoveries could be achieved at
70% when optimum crushing is obtained and the ore is agglomerated. EXMIN
believes that not only can metallurgical recoveries be increased, but that
significant gold values may remain in the leach pad and re-processing of this
material could increase the amount of metal recovered during operation of the
mine.
Additionally, the occurrence of significant coarse gold in certain areas of
the historical resource has been recognized. Some of this material has been
mined at a small scale by artisanal miners, or gambusinos, during the period
that the mine was shut down. This gold is too coarse to be effectively
recovered by heap leaching. The addition of a circuit for processing of this
gold-rich material prior to leaching could increase the amount of metal
recovered. Analysis of different mining and metallurgical scenarios is planned
for the first quarter of 2007.
Quality Control - Quality Assurance
Individual samples were prepared and analyzed by ALS Chemex at their labs in
Mexico and Vancouver. Core was cut into two approximately equal portions, with
one half sent to the geochemical lab for assay and the second half conserved
on site. In certain cases, the remaining half was removed for metallurgical
studies. Gold analyses were performed by fire assay with an AA finish, and
silver analyses were part of a multi-element package.
Hochschild completes its exploration programs and resource calculations under
the Australian Code for Reporting of Exploration Results, Mineral Resources,
and Ore Reserves (JORC Code) and has emplaced quality control procedures
consisting of insertion of standards and blanks (coarse and fine) in the
sample stream as well as submission of duplicate samples and repeated assays
of both fine (pulps) and coarse material.
Dr. Craig Gibson, PhD., Executive Vice President of Exploration, is the
authorized professional geologist for EXMIN Resources Inc. and the direct
manager of all technical programs and information on the part of EXMIN.
Neither EXMIN's joint venture partner, Minera Hochschild Mexico, nor
Hochschild Mining plc or any of its subsidiaries, accept any responsibility
for the use of project data or the adequacy or accuracy of this release.
About Hochschild
Minera Hochschild Mexico (MHM) is a subsidiary of Hochschild Mining plc
(Hochschild) (HOC.L for Reuters, HOC LN for Bloomberg), a publicly held,
Peru-based precious metals mining company, listed on the London Stock Exchange
in November 2006. Hochschild is a primary silver producer and also produces a
significant quantity of gold (approximately 10.5 million ounces of silver and
approximately 232 thousand ounces of gold in 2005). The company has over forty
years experience in the exploration, evaluation and extraction of precious
metal epithermal vein deposits. Currently, it has three underground,
epithermal vein mines supported by fully developed infrastructure, at the
Arcata, Ares and Selene operations in Southern Peru. Hochschild also has two
advanced and two early stage development projects in Argentina, Mexico and
Peru and in addition, over twenty long-term prospects throughout Latin
America. Hochschild's company headquarters are in Lima.
About EXMIN
EXMIN Resources Inc. (EXMIN) is currently focused on the exploration and
development of precious metal properties of exceptional merit in the Sierra
Madre gold belt of Northwestern Mexico.
Note: EXMIN Resources Inc. (EXMIN) has taken all reasonable care in producing
and publishing information contained in this news release. Material in this
news release may still contain technical inaccuracies, omissions or
typographical errors, for which EXMIN assumes no responsibility. This news
release may include certain "forward-looking statements" including but not
limited to comments regarding predictions and projections. All statements,
other than statements of historical fact, included in this news release,
including, without limitation, statements regarding potential mineralization,
exploration results, and future plans and objectives of EXMIN, are
forward-looking statements that involve various 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 disclosed in documents filed
from time to time with the regulatory authorities.
FOR FURTHER INFORMATION PLEASE CONTACT:
EXMIN Resources Inc. Karl J. Boltz President & CEO 1-888-244-0304
EXMIN Resources Inc. Investor Relations 1-888-244-0304 Email:
info@exmin.com Website: www.exmin.com
The TSX Venture Exchange has not reviewed this release and does not accept
responsibility for the adequacy or accuracy of this news release.