TSX Venture Exchange
TORONTO, April 4, 2013 /CNW/ - NWM Mining Corporation ("NWM" or the "Company") (TSX-V: NWM) is initiating a drill program with the objective of adding mineral resources and mineral reserves at the Company's Lluvia de Oro mine in Sonora, Mexico. The primary focus of the program will be to upgrade a significant portion of the currently defined inferred resources (approximately 200,000 ounces / 17,000,000 tonnes at 0.36 g/t Au)*1 at the Lluvia de Oro deposit to a status of measured and indicated mineral resources. The cost structure of the current mining operations indicates that these mineral resources can then be converted to mineral reserves. In addition, the drill program will also aim to define new inferred resources along strike from the currently defined mine reserves. An updated reserve/resource estimate is expected to be completed during the summer of 2013.
Highlights for the planned resource expansion program include:
- The inclusion of new data from 111 drill holes (75 diamond/"DD" and 35 reverse circulation/"RC") totalling approximately 18,000 meters that were completed prior to the existing resource estimate (2010). These holes have been re-logged and prepared for data analysis. The holes were completed to test extensions of the Lluvia de Oro deposit as well as to test other prospective locations within NWM Mining's 5,700 Ha contiguous claim area.
- Approximately 5,000 meters of RC drilling that is targeted specifically at areas of the Lluvia de Oro deposit containing significant quantities of inferred gold resources. The goal is to convert a substantial portion of these gold ounces into measured and indicated resources.
- Recent geological modelling has clearly identified potential areas for extension of the Lluvia de Oro orebody along strike from the current reserves. A portion of the currently planned program will target these areas in order to expand the overall resource base.
- A small grid of shallow drill holes will be completed at the company's Gold Ridge target located adjacent to the Lluvia de Oro deposit in an area where test mining was undertaken in 2012. The objective of this work is to better define the geological continuity of this highly prospective area.
"The new management team continues to make progress at Lluvia de Oro including developing a more comprehensive understanding of the geological model for the Lluvia de Oro deposit. This work has allowed NWM to optimize this Phase 1 program such that a modest quantity of drilling can be leveraged to have the maximum impact on growing overall project resources. The Lluvia-Jojoba property is underexplored and the planned drill program is expected to add meaningfully to gold reserves and mine life. Additional operational changes continue to be implemented at site as mine production rates ramp up over the course of 2013," said Chris Berlet, CEO
*1 Inferred resources as recalculated from existing 43-101 resource estimate block model (Pre-feasibility Report Update and Reserve Analysis, July 2010) using current project economics and gold price of $US 1400 per ounce.
About NWM Mining Corporation
NWM is in commercial gold production at its wholly owned Lluvia de Oro and La Jojoba gold mine. The mine is an open pit heap leach operation in Northern Sonora State, Mexico. Management believes the property is underexplored and hosts significant potential to provide further gold discovery and resource and reserve upgrades. While management has focused in the past on developing the mine and supporting cash flows, the focus in 2013 will shift to increasing mining rates and drilling to expand geological resources and reserves.
This press release has been reviewed by Mr. Darren Koningen, P. Eng. Mr. Koningen is a Qualified Person under National Instrument 43-101.
Neither the 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 of this release.
SOURCE: NWM Mining Corporation
For further information:
NWM Mining Corporation at (416) 364-6799.