Orefinders Announces Agreement with Province of Ontario to enable Development of McGarry Mine & Barber-Larder Project
Orefinders Announces Agreement with Province of Ontario to enable Development of McGarry Mine & Barber-Larder Project |
[28-June-2018] |
TORONTO, June 28, 2018 /CNW/ - Orefinders Resources Inc. ("Orefinders" or the "Company") (TSXV: ORX) is pleased to announce that it has negotiated an agreement with the Province of Ontario's Ministry of Northern Development and Mines to resolve a series of Directors Orders and other outstanding issues that have effectively impeded investment on the McGarry Mine & Barber Larder properties. Accordingly, Orefinders has now waived a condition precedent to completing its acquisition of these properties and will now move to close the acquisition in the near term. "This a big win for our shareholders. The price we paid for McGarry/Barber-Larder reflected an asset which had been tied up in controversy, litigation and environmental issues. This new understanding with the Province eliminates such issues and creates a clear path forward for Orefinders to develop this project. Having resolved this issue, we will now own a valuable asset encompassing 3.0km of prime Cadillac-Larder Lake Break real estate, a high-grade resource with significant upside, all of which sits between the historic world-class Kerr-Addison Mine and Bonterra's Larder Lake assets. This agreement opens up the region and we see McGarry and its neighbours having a bright future," said Stephen Stewart, Orefinders' Chief Executive Officer. Over the past 12 months, Orefinders has completed substantial due diligence to evaluate and devise a strategy to ultimately de-risk this project. The region's environmental issues largely stemmed from the lack of a progressive rehabilitation plan for the tailings facility for the Kerr Addison Mine, which has historically produced over 11 million ounces of gold during a 56-year period. With the new progressive rehabilitation plan in place and the Province's Directors Orders now being rescinded, Orefinders sees this as the inflection point for investment flowing into the McGarry, and surrounding Larder Lake district, which has a long and well understood history of high grade gold mineralization and production. Orefinders now owns a large and self-contained tailings facility Tailings facilities are the most complex and time-consuming element with respect to permitting any mill or processing facility, thus ownership of this brownfield facility could prove advantageous as Orefinders moves its development plans ahead. McGarry & Barber-Larder Are Positioned Between Two Highly Prospective Assets About McGarry Mine & Barber-Larder McGarry hosts a NI43-101 indicated resource of 123,000 oz at an average grade of 7.7g/t gold (uncut or 112,000 ounces with grades top-cut to 51.4 gpt), and an additional inferred resource of 30,000 oz. at an average grade of 5.3 g/t (uncut or 29,000 ounces with grades top-cut to 51.4 gpt) as per McGarry resource estimate from 2009 (see cautionary below). McGarry also has a NI 43-101 Preliminary Economic Assessment, published in 2011, which is based off McGarry's 2009 resource estimate. McGarry is located east of and immediately adjacent to the Kerr-Addison Mine, which was one of Canada largest gold mines producing over 11,000,000 ounces gold over a 58-year period ending in 1996 (Figure 1) (see MNDM OFR5831). Adjacent to the west of McGarry is Bonterra Resources' Cheminis Mine and Bear Lake deposits which host a historic estimate (2011, P+E Mining) of 3,750,000 tonnes at 5.7 g/t (683,000 oz) (inferred) and the Cheminis Deposit contains a historic resource estimate (2011, P+E Mining) of 335,000 tonnes of indicated resources at 4.1 g/t (43,800 oz) and 1,391,000 tonnes of inferred resources at 5.2 g/t (233,400 oz). Bonterra's Technical Reports are available at www.sedar.ca. On site infrastructure includes a head frame, shaft compartments, hoist, offices, and fully functional core shack all refurbished over the last ten years. McGarry is easily accessible with the Trans-Canada Highway running directly through the property. McGarry Production and Infrastructure 325 N Zone – 2280 sublevel
325 N Zone – 2330 sublevel
440 N Zone – 2250 level
The above exploration results and grades include 35% dilution and are reported from Kerr Mines news release April 22, 2013 which is available on Sedar.com. McGarry Historical Mineral Resources Cautionary Statement
The McGarry Project contains a historic mineral resource estimate. Python Mining Consultants Inc. was commissioned by Armistice Resources Corp (now Kerr Mines) to prepare a mineral resource estimate as reported in a technical report titled "Technical Report and Mineral Resource Estimate McGarry Project, McGarry Township (Virginiatown), Ontario". This report was published on 8 April 2009 and was amended on 30 September 2011. Orefinders considers the historical estimate to be relevant and reliable given that it was prepared under NI 43-101 standards. However, Orefinders considers this resource estimate to be historical as it has not independently verified it, and therefore it cannot be relied upon as a current mineral resource for Orefinders. A qualified person of Orefinders has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and as such, Orefinders is not treating the historical estimate as current mineral resource. Barber-Larder Open Pit McGarry Exploration Potential McGarry Mine Exploration on the McGarry Deposit was quite extensive in and near the existing mining infrastructure but generally outside the area of the shaft between the 1,250 and 2,250 ft levels exploration has been a lot less intensive. Considering the abundant underground infrastructure, the targets that can be pursued can be quite small. In particular, between the shaft and the eastern limit of the Property, there is ample room for discovery and the proximity of the historic Kerr-Addison mine opens up the possibility of deep extensions of that deposit on the west side of the Armistice Fault as suggested by north side down movement along the Larder Lake Break (see MNDM OFR5831). Barber-Larder Extensions To the west of the Barber-Larder deposit, previous exploration identified a number of targets that merit follow-up. Approximately 150 metres grid-west of the shaft a hole intersected 1.8 meters grading 3.4 gpt gold. 30 metres grid-east of this, another hole intersected 3.9 gpt gold over 3.5 metres. Approximately 25 metres east of the open pit a hole intersected a 7.9 metre interval grading 7.5 gpt gold and although there is only 330 metres between the eastern end of the old workings in the Barber-Larder mine (120 metres) and the western end of the 2,250 foot level in the McGarry Mine the vertical distance is over 550 metres. Within this envelope there is ample room for exploration. Peninsula Zone Mill Zone and Western Zone The Western Zone is located near the northeastern end of the same altered ultramafic unit. The zone was trenched over 75 metres in length and indicated the presence of a small mineralized shoot approximately 15 metres long and 1.7 metres wide and assaying an average of 3.9 gpt gold (see MNDM AFRI 32D04SE0402). Dyke Zone Lamprophyre Zone Arjon Zone This target needs to be followed-up for its potential for intrusion-hosted bulk-minable gold mineralization. About Orefinders Resources Inc. Orefinders is a Gold exploration and development company focused exclusively within the Abitibi Greenstone Belt. The Company owns all of its assets 100% and is listed on the Toronto Venture Exchange under the symbol ORX. QP Statement The technical information contained in this news release has been reviewed and approved by Charles Beaudry, P.Geo, Director and Vice President Exploration for Orefinders, who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects." For the latest updates please contact or follow us on Twitter @OrefindersR Neither 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. Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Orefinders' assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Orefinders. Additional information identifying risks and uncertainties is contained in filings by Orefinders with Canadian securities regulators, which filings are available under Orefinders' profile at www.sedar.com. SOURCE Orefinders Resources Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: TorontoVE:ORX |
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