HAYDEN, ID, May 30, 2013 /CNW/ - Americas Bullion Royalty Corp. (TSX: AMB) (the "Company") is pleased to report positive results of metallurgical
test work and estimated gold recoveries for the Brewery Creek project
in Yukon, Canada. Current test work results on oxide material crushed
to 80% passing 9.5 mm achieved average column leach recoveries by
deposit of 77.9% to 82.9%1. Test work was conducted on material from seven deposits and on
material from the former heap leach pad.
The results of the test work indicate that significant increases in gold
extraction over the previous operation can be achieved from oxide
material after crushing to a nominal size of 80% passing 9.5mm. The
results also show that additional gold extraction can be achieved from
the existing heap leach material after crushing. The 4 preliminary
column tests from the Classic zone show that the syenite host rock
which was not mined in the previous operation is likely amenable to
gold extraction through the heap leach process.
The Brewery Creek mine was operated as an open pit run-of-mine heap
leach operation from 1995 until the early 2000's. The operation
reported mining and processing approximately 9.5 million tonnes of
oxide material and achieved an overall recovery of approximately 60%.
This recovery was achieved with no crushing. The current studies were
undertaken to establish and verify management's view that by crushing
the overall recovery of the oxide material at Brewery Creek could be
"Although the company is focusing on its royalty business, we are
continuing to advance the Brewery Creek project which remains a
substantial asset for the Company. These column tests are an integral
component of establishing the economic viability of the proposed mine.
The results of these tests show a one-third increase in gold recovery
over previous operations and clearly establish the potential of the
proposed mine," said William M. Sheriff, Chairman. "The Company will
continue to advance the project through the YESSA executive committee
assessment process working towards a government approval of amendments
required to our current licenses which would allow a resumption of
mining at Brewery Creek. We are continuing to look at various methods
to realize the value of the project for our shareholders."
Metallurgical Test Work
Metallurgical test was conducted by McClelland Laboratories of Sparks,
Nevada and included head assay characterization, bottle roll testing
and column leach testing. The test work was conducted on composite
samples from PQ core holes for seven deposits and from sonic drill hole
samples obtained from the existing heap leach pad.
A total of 36 locked cycle column leach tests were conducted on
composite samples crushed to 80 percent passing 9.5 mm. The 36 column
tests included 32 columns from 7 deposits and 4 columns from the
existing heap leach pad material:
22 columns; material from East and West Big Rock, Lower Fosters,
Schooner and Bohemian deposits with Indicated and Inferred mineral
4 columns; material from the former heap leach pad
4 columns; the Classic zone Inferred resource area
6 columns; the old Moosehead pit area
Average recoveries by deposit ranged from 77.9% to 82.9%1 based on 17 column leach tests on Indicated and Inferred oxide resource
material from the East & West Big Rock, Lower Fosters, Schooner and
Four column leach tests achieved gold recoveries of 42.9% to 57.3 %1 on material from the previously processed heap leach pad. Four other
column leach tests achieved gold recoveries of 41.4 to 95.5 %1 on material from the Classic Inferred resource area. Two column leach
tests on oxide material from the former Moosehead pit area achieved
recoveries of 10.3% to 49.2%1. Further testing will be necessary to identify a preferred method of
recovery for any material from the small Moosehead area.
Nine column leach tests were conducted on unoxidized and material
historically reported as preg robbing to observe their metallurgical
responses. Generally the material responded as predicted with low
recoveries < 25.0% but one sample of unoxidized material achieved 97.4%
recovery and 2 samples of mixed oxide and potentially preg robbing
material achieved 76.6% to 93.2% recovery. These results are in
themselves positive in that we may be able to increase the amount of
material available for leaching by careful material characterization
prior to any processing.
Further metallurgical work is planned to continue to refine the
metallurgical responses by rock type for areas with Indicated and
Inferred resources and to test the effects of varying sodium cyanide
concentrations on gold recoveries and reagent consumption.
A complete table of results can be found on the Company's website at:
Brewery Creek Project
The Brewery Creek Project is a past producing heap leach gold mining
operation with a total of 278,484 oz Au produced from seven
near-surface oxide deposits along the property's Reserve Trend from
1996 through 2002, when the mine (operated by Viceroy Resource
Corporation) shut down primarily due to low gold prices. The 200 km2 property is located 55 km due east of Dawson City, accessible by paved
and gravel roads from the junction of the North Klondike and Dempster
The Project is in receipt of all necessary permits required to conduct
additional exploration. The Brewery Creek Project holds a Type A Water
License with an expiry date of December 31, 2021, subject to the
restrictions and conditions contained in the Yukon Water Act and
Regulations. The Project also holds a Quartz Mining License (QML) with
an expiry date of December 31, 2021. The Company is working to amend
the Water License and the QML to incorporate current mine planning and
design studies which are currently underway. In addition, a restated
and amended Socio-Economic Accord with Tr'ondek Hwech'in First Nation
with respect to the Brewery Creek Project is in place.
Brewery Creek hosts a NI 43-101 compliant resources of 581,000 indicated
gold ounces in 20.417 million tonnes at 0.89 g/t and 346,000 inferred
gold ounces in 12.990 million tonnes at 0.83 g/t (see June 18, 2012
news release). The Company anticipates publishing an updated resource
estimate, incorporating the 2012 drilling program, in 2013.
The Brewery Creek Project has the support of the community of Dawson
City and the Tr'ondek Hwech'in because the Company remains committed to
advancing the project in a socially and environmentally responsible
manner, rehabilitating a previously operational gold mine bringing
social and economic benefits to the region and, particularly to the
Tr'ondek Hwech'in who have partnered with the Company for the
development of this project.
The technical content of this news release has been reviewed and
approved by Michael Maslowski BSc, CPG, the Company's Chief Operating
Officer and a Qualified Person as defined by National Instrument
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. focuses on acquiring precious metal
royalties and streaming assets which provide revenue as well as lower
risk exposure to shareholders through project diversity in stable,
mining-friendly jurisdictions. The Company's existing portfolio is
highlighted by Gross in-kind Royalties on Midway Gold's Pan and Gold
Rock deposits, as well as 2 separate royalties encompassing more than
34 square miles at Barrick Gold's Bald Mountain project in Nevada.
The Company holds additional royalties including Net Smelter Return
Royalties on the Taylor Silver project and a portion of the Tonkin
Springs project also in Nevada. The Company's royalty holdings comprise
more than 100,000 acres located primarily in Nevada, with 7 of the
projects located in Wyoming, Oregon, California and Mexico. Current
royalty revenue is expected to accelerate as early as 2014 as several
of these projects commence production. Americas Bullion Royalty Corp.'s
prime royalty portfolio is unique in the mineral development industry
due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash), its possession of gross royalties
with no exposure to operator cost, as well as its security of title
with no buyback or buyout provisions. The Company continues to advance
or monetize other assets including its significant Yukon property
holdings, security holdings and the Taylor Mill in Nevada.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This
press release contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements
based on current expectations involving a number of risks and
uncertainties and are not guarantees of future performance. There are
numerous risks and uncertainties that could cause actual results and
Americas Bullion's plans and objectives to differ materially from those
expressed in the forward-looking information. Actual results and future
events could differ materially from those anticipated in such
information. These and all subsequent written and oral forward-looking
information are based on estimates and opinions of management on the
dates they are made and are expressly qualified in their entirety by
this notice. Except as required by law, Americas Bullion assumes no
obligation to update forward-looking information should circumstances
or management's estimates or opinions change.
1= Column leach test recoveries are not adjusted to estimate potential
commercial recoveries of gold to dore. For more information, please see
the complete table of results found on the Company's website.
SOURCE: Americas Bullion Royalty Corp.
For further information:
Americas Bullion Royalty Corp.
Janet Lee-Sheriff, Vice President Communications and First Nation Relations