VANCOUVER, July 31, 2017 /CNW/ - Leagold Mining Corporation (TSX: LMC) ("Leagold" or the "Company") received the environmental permit for development of the portal and ramp for the Bermejal Underground deposit, an attractive expansion project with potential to increase gold production and extend mine life at Los Filos. The permit was received on June 14, 2017 and required submission of an additional economic/technical document which was completed on July 28, 2017 such that the permit is now in effect. A portal and ramp design has been completed and is being used for tendering, and a total of six underground tunneling contractors have completed site visits. Contractor selection will be completed in August.
Neil Woodyer, CEO stated "Development of the exploration ramp is an important step in advancing Bermejal Underground towards production. The ramp will provide access to the eastern and central portions of the deposit. The mineralization is similar to the Los Filos Underground deposits where we are currently mining, and this development provides an opportunity to carry out additional exploration from underground as well as demonstrate the minability of Bermejal Underground. Access to the ore body will also provide a larger sample for confirmatory metallurgical testwork for heap leaching. These steps will advance the deposit towards declaration of reserves and incorporation into the mine plan."
During Q2 2017, a trade-off study was completed to determine the optimal portal location and ramp design to provide initial access to the deposit. Multiple portal locations were analyzed based on development costs, construction schedules and geotechnical parameters. The preferred portal location is at the base of the northern end of the existing Bermejal Open Pit, where surface mining has already been completed. The selected portal location and ramp design offers the advantages of a deeper starting point, shortest distance to access an initial test stoping area, proximity to existing infrastructure, and commencement of the portal within competent carbonate wallrock.
The ramp design is 5 metres wide by 5 metres high with full underground mining infrastructure. Two ventilation raises will also be completed using a Robbins raise-bore. This location provides the shortest decline access to the eastern flank of the deposit (650 linear metres of development) and to the main body of the deposit (1,600 linear metres of development). The design provides access to the eastern flank to allow initial trial mining.
The portal design commences at 1,329 metres elevation in the bottom of the Bermejal open pit. Development is within carbonate rock in the hangingwall to mineralization and extends across the strike length of the resources defined in the East Sector. The ramp will decline at 15% slope and extend 1,600 metres to the central, high grade portion of the Bermejal Underground mineralization.
The portal preparation work is anticipated to commence in Q3 2017, with access to the first stoping area early in 2018 and completion of the ramp to the Central Sector by Q4 2018.
Doug Reddy, P.Geo, Leagold's Senior Vice President – Technical Services, is a Qualified Person under NI 43-101, and has reviewed and approved the technical contents of this news release on behalf of Leagold.
About Leagold Mining Corporation
Leagold is building a new mid-tier gold producer with a focus on opportunities in Latin America. Leagold is based in Vancouver, Canada and is listed on the TSX Exchange under the trading symbol "LMC". The recent acquisition of the Los Filos Mine, a low-cost gold producer in Mexico, provides an excellent platform for growth.
On behalf of Leagold Mining Corporation
Neil Woodyer, Chief Executive Officer
This news release contains "forward-looking statements" and "forward looking information" (as defined under applicable securities laws), including but not limited to plans for future development of the Los Filos Mine. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" and "anticipates". Forward-looking statements and information, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the receipt of all necessary approvals for conversion of the Orion Subscription Receipts; risks related to the Los Filos Mine, risks related to the successful integration of the acquisition; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Leagold operates. Although Leagold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward looking information are made as of the date hereof and Leagold disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward looking information contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and information. Please refer to Leagold's most recent filings under its profile at www.sedar.com for further information respecting the risks affecting Leagold and its business.
Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Leagold Mining Corporation
For further information: on Leagold please visit the Company website at www.leagold.com or contact: Doug Reddy, SVP Technical Services, +1-604-609-6114, [email protected]