TORONTO, Dec. 12, 2013 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) ("Wallbridge") today announced that it has signed a binding term sheet, (the "Term Sheet") with Northern Sun Mining Corp. (formerly Liberty Mines Inc.) (TSX: NSC) ("Northern Sun") for the custom milling of its Broken Hammer ore at Northern Sun's Redstone concentrator in Timmins, Ontario. The Term Sheet is subject to, among other things, a Definitive Agreement to be entered into on or before February 7, 2014.
"We are excited to have completed another important step towards the development of the Broken Hammer deposit. Most permits are in place and negotiations with copper smelters and mining contractors are going well. Once these other facets of the project are in place, which is expected to be in early 2014, a production decision will be made to start construction in March 2014 with the expectation of ore delivery in May 2014, immediately after the half-load restrictions in Northern Ontario are lifted," Marz Kord, President and CEO of Wallbridge stated, "At today's metal prices we expect the project to proceed in late Q1 2014 and start generating cashflow in Q2-2014, that Wallbridge can put towards exploration opportunities at Broken Hammer and elsewhere in Sudbury".
The securing of a satisfactory milling and processing contract for the Broken Hammer ore was a critical path item in determining the schedule for the project. Discussions with local milling facilities in Sudbury did not result in a contract being finalized and as a result Wallbridge explored other processing options, including, but not limited to, the possibility of processing the ore at Northern Sun's Redstone Mill in Timmins, Ontario.
Broken Hammer is primarily a copper and platinum group elements ("PGE") deposit. The decision to use Northern Sun's Redstone Mill is based on positive preliminary results of a metallurgical study currently being completed at Xstrata Process Support ("XPS"). This study is expected to be completed before year end.
The Redstone Mill has a gravity concentrator which will provide efficient recovery of precious metals such as platinum and gold, particularly given the extremely coarse grained sperrylite (a dense gravity recoverable platinum mineral present in the Broken Hammer ore). Additionally, the processing of the ore in a dedicated circuit at the Redstone Mill, a custom milling facility, removes the requirement for a sample tower on site and results for a reduction in crushing costs on site. These factors as well as better anticipated metal payabilities are expected to offset the additional transportation costs of Broken Hammer ore from Sudbury to Timmins.
Broken Hammer Project Description Wallbridge discovered the Broken Hammer Zone as a result of an ongoing grass roots exploration program on the North Range of the Sudbury Basin.
An updated resource estimate prepared by Roscoe Postle Associates Inc. ("RPA") according to NI43-101 standards was filed in a technical report on the property on August 1, 2012 (refer to June 19, 2012 press release). This resource was later updated in September 2013 incorporating additional mineralization intersected while conducting geotechnical studies. Summary of the Updated Mineral Resource and Mineral Reserve is in Tables 1 & 2 below (for more detail please refer to Wallbridge press release dated September 18, 2013). Table 1: Updated mineral resource estimate, with an effective date of September 12, 2013
|BROKEN HAMMER MINERAL RESOURCE, Sept. 12, 2013|
|Category||Tonnes||Cu (%)||Ni (%)||Pt (g/t)||Pd (g/t)||Au (g/t)||Ag (g/t)|
Table 2: Mineral Reserve estimate
|BROKEN HAMMER MINERAL RESERVES, May 1, 2013|
|Category||Tonnes||Cu (%)||Ni (%)||Pt (g/t)||Pd (g/t)||Au (g/t)||Ag (g/t)|
|Waste Rock||1,597,000 tonnes|
The Qualified Person for the Broken Hammer updated resource estimate is Mr. Bruce Churchill, P. Geo., who prepared the 2012 updated resource estimate contained in the prefeasibility study for the Broken Hammer Project which was filed on August 2, 2012 and the new Updated Resource in September 2013. Mr. Churchill is a Qualified Person under NI43-101 and is independent of Wallbridge. The Qualified Person for the Broken Hammer updated reserve estimate is Mr. Jason Cox, P. Eng. of RPA. Mr. Cox is a Qualified Person under NI43-101 and is independent of Wallbridge.
About Wallbridge Mining
Wallbridge Mining Company Limited (WM:TSX) is an established junior company, formed in 1996, whose mission is to explore and develop platinum group elements (PGE's) in mining friendly jurisdictions of North America.
Wallbridge is currently exploring and developing a large package of properties in Sudbury, Ontario, Canada's premier mining district. These include the pre-feasibility stage Broken Hammer development project and significant exploration joint ventures with partners Lonmin Plc, Impala Platinum Holdings Limited and Glencore Xstrata.
In 2005, Wallbridge created Duluth Metals Limited (TSX:DM) to explore and develop projects in Minnesota, USA. Duluth Metals has since defined the world's largest undeveloped sulfide PGEs, copper and nickel deposit which it is developing through Twin Metals Limited, a joint venture with copper producer Antofagasta Plc. Wallbridge currently retains 10.1 million shares of Duluth Metals (8.1%).
In 2010, Wallbridge created Miocene Metals Limited (TSXV:MII) to explore and develop seven porphyry copper-gold-molybdenum projects in British Columbia, Canada, within a previously under-recognized belt of Miocene-age intrusions. These projects are early stage with large mineralized structures and alteration zones that are ready for drilling with potential for large tonnage deposits. Wallbridge currently retains 28.4 million shares of Miocene Metals (40.5%).
This press release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the operations of Wallbridge and the environment in which it operates. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Wallbridge has relied on a number of assumptions and estimates in making such forward-looking statements, including, without limitation, the costs associated with the development and operation of its properties. Such assumptions and estimates are made in light of the trends and conditions that are considered to be relevant and reasonable based on information available and the circumstances existing at this time. A number of risk factors may cause actual results, level of activity, performance or outcomes of such exploration and/or mine development to be materially different from those expressed or implied by such forward-looking statements including, without limitation, whether such discoveries will result in commercially viable quantities of such mineralized materials, the possibility of changes to project parameters as plans continue to be refined, the ability to execute planned exploration and future drilling programs, the need for additional funding to continue exploration and development efforts, changes in general economic, market and business conditions, and those other risks set forth in Wallbridge's most recent annual information form under the heading "Risk Factors" and in its other public filings. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of Wallbridge. Although Wallbridge has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof.
Wallbridge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. The forward-looking statements contained herein are expressly qualified by this disclaimer.
SOURCE: Wallbridge Mining Company Limited
For further information:
Please visit the Company's website at www.wallbridgemining.com, or contact:
Vice President, Corporate Communications
Tel: (705) 682-9297 ext. 263
Email: [email protected]