TORONTO, Feb. 18 /CNW/ - Win-Eldrich Mines Limited (TSXV-WEX) ("Win-Eldrich" or the "Company") announced its intention to complete a National Instrument 43-101 ("NI 43-101") compliant technical report on the gold deposit located north of, and above, the current molybdenum resource at its Ashdown Property. In connection with the preparation of the technical report, the Company plans to complete a drilling program targeting the gold deposit.
The Ashdown Mine has historically produced approximately 16,000 ounces of gold at an average grade of 0.36 ounces per ton ("opt") from an underground mine and stamp mill from the late 1880s to 1942. From 1979 to 1986, American Copper and Nickel (the US subsidiary of INCO) drilled 135 surface holes to determine if previous operators had left a recoverable amount of gold. In 1988 - 89 Win-Eldrich drilled an additional 32 holes and completed a pre-NI 43-101 feasibility study indicating an open-pittable - heap leachable reserve containing 1.07 million tons with an average grade of 0.088 opt (94,000 oz). In 1990, Billiton Minerals drilled an additional 22 holes and in 1991 completed a pre-NI 43-101 feasibility study indicating an open pittable - heap leachable reserve containing 1.02 million tons with an average grade of 0.077 opt (78,000 oz). In 1994, North Lily Mining drilled an additional 5 holes and completed a pre-NI 43-101 feasibility study indicating an open-pittable - heap leachable reserve containing 1.5 million tons with an average grade of 0.078 opt (117,000 oz). None of these reports are NI 43-101 compliant. A qualified person has not done sufficient work to classify these historical estimates as current mineral resources. The Company is not treating these historical estimates as current NI 43-101 compliant resources. These historical estimates should not be relied upon. For this reason, the Company plans to review and verify the information in those reports to prepare a NI 43-101 compliant current mineral resource estimate. The Company believes the historical estimates provide an indication of the potential of the gold deposit at the Ashdown mine.
In conjunction with the planned drilling on the gold resource, the Company would also target the molybdenum zone with the intention of identifying additional resources. The company currently operates an underground mine and molybdenum sulfide flotation mill. Mineralization occurs over a strike length of approximately 500 feet and a dip length of approximately 250 feet. Previous drilling indicates the potential for a resource over a strike length of about 2,500 feet and a dip length of about 500 feet. This zone is open along strike to the north for at least another 2,500 feet and is open to an unknown depth. Molybdenum prices dropped to less than US$8 per pound in late 2008 - early 2009, but have recovered to about US$16/lb in recent months. As the global economy expands, management believes that the demand and price for molybdenum should increase.
Win-Eldrich, owner of the Ashdown Project LLC, recently promoted Darrin Quimby to Mine Manager and Lauren Longley to Mine Superintendent. Both men have extensive experience in the mining industry. Perry Muller, President of both Win-Eldrich and its US subsidiary, Win-Eldrich Gold, Inc., has also appointed Tom Jones as Mill Manager. Over the past six months they have been able to increase the average grade of mill feed and average mill recovery significantly. Muller responded that these managers will lead our family of miners and mill technicians during these difficult economic times to further reduce our costs and improve profits.
Pete Winn, a director of Win-Eldrich, is the qualified person as defined in NI 43-101 who reviewed and approved the technical information in this press release.
This news release includes certain forward-looking information and forward-looking statements (collectively "forward looking statements") concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Specifically, this news release includes forward-looking statements regarding the completion of the NI 43-101 technical report, planned drilling activities, the expected demand and price for molybdenum and the identification of additional molybdenum resources. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results, including in respect of the increase in production levels at the Ashdown mine. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking statements are inherently uncertain and subject to a variety of risks and uncertainties, including the speculative nature of mineral exploration and development generally and specifically in respect of the interpretation of the geology, continuity, grade and size of mineral deposits, unanticipated operational or technical difficulties, fluctuating commodity prices, competitive risks and the availability of financing, changes in laws or regulations, changes in the financial markets and changes in general economic conditions, as described in more detail in our recent securities filings available at www.sedar.com. Such forward-looking statements are based on a number of assumptions, including but not limited to the level and volatility of the price of molybdenum, the availability of financing, the accuracy of reserve and resource estimates and the assumptions on which those estimates are based and the ability to achieve and maintain certain operational efficiencies. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual events or results may differ materially from those expressed or implied in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements, except as required by applicable law.
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SOURCE WIN-ELDRICH MINES LIMITED
For further information: For further information: Perry Muller, President and Director of Win-Eldrich, at (402) 435-7206