TORONTO, Dec. 7, 2016 /CNW/ - Orefinders Resources Inc. ("Orefinders" or the "Company") (TSX.V: ORX) is pleased to announce that it has engaged an independent mining consultancy to begin work on an updated NI 43-101 Mineral Resource Calculation which will be used as the basis for the Mirado Mine's first Preliminary Economic Assessment ("PEA"). The PEA will focus on restarting mining operations on the Mirado Mine's high grade zones within the open pit. Initially, milling of ore would be conducted on a toll-milling basis.
Orefinders believes it can restart the Mirado Mine in a relatively short time frame using a toll-milling operation since this would not require the high capital expenditures of building a mill. It would also reduce the permitting requirements by eliminating the need to build a tailings facility. Orefinders also believes that there is substantial milling capacity from multiple mills in the areas surrounding Kirkland Lake.
"The Stockpile project was meaningful not only in terms of generating revenue, but also by establishing credibility in the ability of our team and the Mirado asset to create cash flowing opportunities. The information that we accumulated throughout the Stockpile project's execution will be incorporated in our next steps. Orefinders is in a unique situation where it can leverage its existing infrastructure including roads and bridges to easily access the Mirado Mine and its existing open pit. This data and experience in terms of costs and procedures has added to our understanding of the economics behind restarting the Mirado Mine," said Orefinders CEO, Stephen Stewart. He continued, "While mining is always a complex task, the scenario that we are exploring simplifies our path to consistent cash flow and will allow us to one day evolve to building our own mill. The initiative behind the Stockpiles was organic development to protect our capital structure by using the Mirado Mine to develop itself. That's how we plan on moving forward with the Mirado and other projects that we evaluate."
Orefinders believes that the Mirado Project, which includes the open pit Mirado Mine on the South zone and the North zone's historic underground mine, has the potential for a significant commercial mining operation. The Company will look to initiate the necessary studies and permits for its own mill in parallel with the cash flow received from the initial toll-milling plan.
Updated permitting will be required for the actual mining operation, however much of the baseline work has been completed through the stockpile's existing closure plan. Additionally the on-site crushing, hauling and logistics behind the Stockpile Project will be mirrored in the process for this toll-milling plan.
Stockpile Milling Progress at the Westwood Mine
The Company would also like to announce that further to its November 18, 2016 news release, the Westwood mill maintenance work has been completed, the milling of the Stockpile resource has resumed.
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.
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SOURCE Orefinders Resources Inc.
For further information: To Speak to the Company directly, please contact: Stephen Stewart, Chief Executive Officer, Phone: 416.644.1567, Email: email@example.com, www.orefinders.ca