Vancouver, British Columbia--(Newsfile Corp. - July 10, 2019) - Vendetta Mining Corp. (TSXV: VTT) ("Vendetta" or the "Company") is pleased to provide an update on project activities.
Ore Sorting Test Work
The Company has shipped three composites from three previously completed drill holes for sensor-based ore sorting screening test work; two holes from Zone 5 and one hole from Zone 2 (both sulphide mineralisation). Included in each sample was material from both the hanging wall and footwall at below cut-off grades to simulate mining dilution, at twice the amount of dilution assumed in the PEA mining study.
If successful, the sensor-based ore sorting will have a material impact on the project economics. The ore sorting units would be located after the primary crusher, depending upon the mass pull to the sorted concentrate there will be a corresponding decrease in the size and will be reflected in the capital cost of the processing plant.
Sensor based sorting is a dry material separation system and as such it is expected to have a material impact on the quantity of tails produced from the floatation process. The Pegmont project PEA contemplates using in-pit tails disposal and as a consequence the successful application of ore sorting could have significant positive impacts on the mining sequencing.
If the screening tests are successful the Company will drill to obtain fresh samples for pilot scale ore sorting test work. The sorted concentrate would then be sent for metallurgical floatation test work. Each pilot scale test will be 100 kg and will include ore from each material type from each mineralised Zone. The results of the pilot scale test work will then be included in the next iteration of the Pegmont Project mining study.
The detailed mapping program on the Pegmont tenements is now half complete and has covered the Bridge Zone, Burke Hinge Zone, along strike as well as around the large fold structure to the Bonanza and Airport BIF prospects. The mapping will now form the basis for developing the exploration programs over these prospects.
Historical drilling at Bonanza returned 5 m at 3.06% Pb and 3.69% Zn as well as 3.4 m @ 2.27% Pb and 3.42% Zn. At the Airport BIF prospect rock chips returned up to 5.01% Pb and 1.1% Zn. These targets are a high priority as the reconstructed unfolded position of both Bonanza and the Airport BIF places them into the zinc rich position of the zoned mineralised system, essentially along strike from Zone 5.
The second phase of the mapping program will cover the copper prospect where previous drilling intersected 3 m @ 3.31% Cu and 0.57 g/t Au. The second phase will continue down to the southern boundary of the exploration lease where it is interpreted and where the Pegmont banded ironstone host unit returns close to surface as evidenced by BIF intersections from historic drilling on the southern boundary.
Australian Corporate Tax Phased Reduction
The Australian federal government has initiated a progressive reduction in corporate tax rates from the current 30%. For the annual turnover contemplated in the Pegmont PEA the tax rate applicable to the Pegmont Project from July 2020 will be 27.5% with successive reductions of 27% for 2024 - 2025, 26% for 2025 - 2026 and July 2026 onwards a rate of 25% will apply. These reductions will have a material positive impact to the after-tax Project NPV and will be captured in the next study phase.
Transition Metallurgical Test Work
To further de-risk the start-up period a variability metallurgical program was commenced on Zone 1. Transition material from six previously drilled holes in Main Pit 1 (the second pit to be mined in the PEA) is being tested. The objective of this test work was to understand the range of possible results within the transition material, that is material that is predominately lead & zinc sulphide mineralisation in weathered country rock. Results to date indicate that visually it is possible to distinguish between oxide, transition and primary styles of mineralisation. Test work is on-going.
The Company continues to work towards closing its previously announced private placement. Directors Michael Williams and Peter Voulgaris have indicated that they will participate in the next tranche.
About the Pegmont Lead Zinc Project
Vendetta's 100% owned Pegmont Lead Zinc Project is situated in the Mount Isa - McArthur Mineral Province, Australia, which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several significant lead-zinc-silver mines.
The current Mineral Resource Estimate at the Project:
Indicated 5,758 Kt @ 6.5% Pb, 2.6% Zn, 11 g/t Ag
Inferred 8,277 Kt @ 5.1% Pb, 2.8% Zn, 8 g/t Ag
The results of a Preliminary Economic Assessment ("PEA") on Pegmont were released by the Company by news release dated January 28, 2019. The PEA outlined a 10-year mine plan that generates a strong economic return with a (base case) pre-tax IRR of 32% (after tax 24%) and NPV8% of $201M ($128M after tax) using long term consensus metal prices of $0.91/lb lead, $1.09/lb zinc and $16.50/oz silver.
The PEA indicated a strong sensitivity to metal prices and US$:A$ exchange rate with a pre-tax IRR of 37% (after tax 27%) and NPV8% of $249M ($158M after tax), using metal prices as of January 22, 2019 of $0.94/lb lead, $1.25/lb zinc and $15.30/oz silver and US$:A$ of $0.71.
The PEA identified further project enhancements and Vendetta has identified several high priority exploration targets.
About Vendetta Mining Corp.
Vendetta Mining Corp. is a Canadian junior exploration company engaged in acquiring, exploring, and developing mineral properties with an emphasis on lead and zinc. It is currently focused on advancing the Pegmont Lead Zinc project in Australia. Additional information on the Company can be found at www.vendettaminingcorp.com.
Peter Voulgaris, MAIG, MAusIMM, a Director of Vendetta, a "qualified person" as defined by NI 43-101 - Standards of Disclosure for Mineral Projects. Mr. Voulgaris has reviewed and approved the technical content of this press release, and consents to the information provided in the form and context in which it appears.
For details of the Pegmont Project including the effective date of the resource estimate, quality control measures applied, key assumptions, parameters and methods used to estimate the mineral resources set forth herein and any known legal, political, environmental or other risks that could materially affect the potential development of the mineral resource estimate, please refer to the technical report entitled "Technical Report - Pegmont Mineral Resource Update and PEA" dated effective January 21, 2019 and available under the Company's profile at www.sedar.com.
The Preliminary Economic Assessment (PEA) referred to herein, is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
ON BEHALF OF THE BOARD OF DIRECTORS
President & CEO
Forward Looking Information
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This release includes certain statements and information that may be deemed to be "forward‐looking statements" or "forward looking information" within the meaning of the applicable Canadian Securities laws. All statements in this release, other than statements of historical facts are forward looking statements or information, including without limitation, statements or information regarding the completion of the Offering , the use of proceeds of the Offering, estimated project economics, including but not limited to, mill recoveries, payable metals produced, production rates, payback time, capital and operating and other costs, IRR and mine plan; expected upside from additional exploration; expected capital requirements and timing; and other future events or developments. Forward-looking statements include statements that are predictive in nature, are reliant on future events or conditions, Forward‐looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward‐looking statements.
Factors that could cause actual results to differ materially from those in forward‐looking statements include, but are not limited to, the failure to complete the Offering on the proposed terms, changes in commodities prices; changes in expected mineral production performance; unexpected increases in capital costs; exploitation and exploration results; continued availability of capital and financing; differing results and recommendations in the PEA; and general economic, market or business conditions.
In addition, forward‐looking statements are subject to various risks, including but not limited to operational risk; political risk; currency risk; capital cost inflation risk; that data is incomplete or inaccurate; the limitations and assumptions within drilling, engineering and socio‐economic studies relied upon in preparing the PEA; and receipt of regulatory and other approvals and/or consents in respect of the Offering in particular. There can be no assurance that the Offering will be completed on their terms or at all.
The reader is referred to the Company's filings with the Canadian securities regulators for disclosure regarding these and other risk factors, accessible through Vendetta Mining's profile at www.sedar.com.
There is no certainty that any forward‐looking statement will prove to be accurate and investors should not place undue reliance upon forward‐looking statements. The Company does not undertake to provide updates to any of the forward‐looking statements in this release, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46187