TORONTO, Jan. 10, 2017 /CNW/ - Kerr Mines Inc. ("Kerr" or the "Company") (TSX:KER) is pleased to announce that it has engaged JDS Energy and Mining Inc. ("JDS") to provide technical consulting services in support of the Company's Copperstone mine in Arizona. Specifically, JDS will provide geological, engineering and economic evaluation consulting services to Kerr.
"As Kerr progresses to the next stage of its turnaround efforts and the continued dewatering provides access to key underground working areas of the mine, JDS will provide the technical expertise to develop the work plan for the coming few months," said Chris Hopkins Interim President & Chief Executive Officer. "This key addition of proven technical expertise promises to provide Kerr with a high quality and cost effective solution as we diligently plan for a successful and prudent restart of operations at Copperstone."
JDS will provide the technical expertise to design and manage the mine's definition drilling program, resource modeling and mine planning work that will form the backbone of a new business plan to re-start the project. JDS has been provided with the extensive Copperstone project geological and drill hole database compiled by Kerr after acquiring Copperstone in June 2014. This will allow the advisors to efficiently utilize this data that includes approximately 1,000 drill holes, 540,000 feet of drilling and 71,000 assays. JDS also has prior experience at Copperstone as they were also engaged to review the project in late 2015 on behalf of investors that have supported the Company's turnaround efforts since then.
Over the past year, Kerr has focused on restructuring the Company, completing a number a number of milestones, including:
- the completion of a significant financial restructuring providing a net working capital improvement of approximately $21 million compared to March 31, 2016 when the restructuring began;
- access to additional capital from its major shareholders;
- the sale of its non-core Bear Lake property to Bonterra Resources Inc.;
- key additions to the Board and management teams;
- the closing of the sale of a portion of its Bonterra Resources Inc. shareholding for cash; and
- the commencement dewatering and rehabilitation work at the Copperstone mine.
JDS Energy & Mining Inc. (JDS) was founded in 2004 and is now composed of over 150 skilled and highly experienced mining and construction professionals, including 30 mining engineers. With a proven record providing clients with fit-for-purpose solutions and value delivery, JDS has acquired a reputation for delivering and executing project plans on budget, on time, and most importantly, safely. The JDS team prides itself on delivering project concepts from inception to full operations – a process it has executed seamlessly for operations throughout Canada and the world, including the Minto Mine in the Yukon, the Gahcho Kue Mine located in the Northwest Territories, and most recently the Silvertip Mine in northern British Columbia.
Kerr is a North American gold exploration and development company based in Toronto, Canada. Kerr's core focus is to commence operations at the Copperstone Mine in Arizona. The Copperstone Mine produced nearly 500,000 ounces of gold through open pit mining. Existing infrastructure which remains from this time, or which has been subsequently installed by the Company's predecessor and wholly owned subsidiary, American Bonanza Gold Corp., is considerable and serves to reduce the current capital requirements for the mine. Existing infrastructure includes a power line and substation, and three water wells, all sufficient for the proposed operations at Copperstone. Additional infrastructure on site includes offices, maintenance shops and a laboratory building permitted tailings facility, processing facility and mill.
This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Kerr Mines' business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Kerr Mines assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release and no stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Kerr Mines Inc.
For further information: Chris Hopkins, Interim President & Chief Executive Officer, Email: [email protected], Tel: 416.786.9793