VANCOUVER, June 26, 2013 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX:YMI, OTCQX:YHMGF) announces the appointment of Frank D. Wheatley as Chief Executive Officer of the Company effective July 1, 2013. Mr. Wheatley has also been appointed as a director of the Company effective July 1, 2013, subject to TSX approval.
"Yellowhead is fortunate to have engaged Mr. Wheatley as our new CEO. He has the corporate skills and experience, along with the aptitude and attitude, required in today's market. The Yellowhead team looks forward to building the Company through the next stages of the development of the Harper Creek Project with Frank at the helm," stated Greg Hawkins, Chairman of the Board, as he concludes his service as Interim Chief Executive Officer.
Mr. Wheatley is a senior mining executive and legal counsel, with 28 years of business, financial and legal experience with Canadian public mining companies exploring, developing, permitting, financing and operating gold, silver, copper and lithium mines on several continents. His senior executive roles ranged from Executive Director, President, Chief Operating Officer, to Vice President & General Counsel, with emphasis on public financing, project debt financing, permitting of large scale mining projects in accordance with all international best practice, environmental and corporate social responsibility standards, together with strategic mergers and acquisitions in the international minerals industry.
Mr. Wheatley was most recently Executive Director, Corporate Affairs and Strategy with Talison Lithium Limited, a leading global lithium producer with operations in Western Australia, until its acquisition by Chengdu Tianqi Industry (Group) Co. in March 2013.
Mr. Wheatley is currently also a member of the board of directors of Teranga Gold Corporation (TSX, ASX) and Selwyn Resources Ltd. (TSX-V).
About Yellowhead Mining Inc.
Yellowhead's Harper Creek Project is a copper-gold-silver volcanogenic sulphide deposit located in south-central British Columbia, approximately 150 kilometers by highway north of Kamloops. The Company's development strategy is to engineer, permit, finance, construct, and operate the Harper Creek Project.
The Company's Feasibility Study, dated and filed on SEDAR on March 29, 2012 and restated and amended as of January 25, 2013, (and available for review on SEDAR and Yellowhead's website) shows an after-tax NPV8 of US$465.3 million with an IRR of 17.0% based on long-term metal price projections of US$2.50/lb Cu, US$1,250/oz Au and US$20/oz Ag, and a US$:Cdn$ exchange rate of 0.86:1. The Feasibility Study demonstrated a 28 year project life at a milling rate of 70,000 tpd (25.55Mt/y). The project as designed is expected to produce a total of 3.63 billion pounds of copper, 372,000 ounces of gold and 14 million ounces of silver contained in concentrate.
At a 0.14% Cu cutoff, Proven Reserves are estimated at 401.18Mt @ 0.272% Cu, 0.031g/t Au and 1.15g/t Ag; Probable Reserves 303.22Mt @ 0.248% Cu, 0.027g/t Au and 1.13g/t for a total Proven and Probable Reserve of 704.4Mt @ 0.262% Cu, 0.029g/t Au and 1.14g/t Ag.
The Feasibility Study is based on an updated resource (refer to news release dated February 16, 2012). At a 0.20% Cu cutoff Measured Resources are estimated at 348.5Mt at 0.31 % Cu, 0.034g/t Au, 1.3g/t Ag; Indicated Resources at 466.5Mt at 0.28% Cu, 0.03g/t Au, 1.3g/t Ag for a total Measured and Indicated Resource of 815Mt at 0.29% Cu, 0.032g/t Au and 1.3g/t Ag (5.26 billion pounds of copper contained). A further 80.17Mt at 0.30% Cu, 0.033g/t Au, and 1.4g/t Ag are estimated in the Inferred Resource category (0.53 billion pounds of copper contained) and are reported as waste in the mine production schedule until they can be upgraded by additional infill drilling.
Yellowhead has a 100% interest in the Harper Creek Project (subject to the payment of a 3% NSR royalty capped at $2.5 million, adjusted for inflation and an additional 2.5% NSR royalty on an estimated 1.5 Mt of ore which is expected to be mined beginning in year 16 of the Feasibility Study mine plan).
T. Gregory Hawkins, Interim Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this press release.
Forward Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Company's Annual Information Form filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect projected results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.
This news release includes disclosure of scientific and technical information, as well as information in relation to the calculation of mineral resources and reserves, with respect to the Harper Creek Project. Yellowhead's disclosure of mineral resource and reserve information is governed by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). There can be no assurance that mineral resources will ultimately be converted into mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability. This news release uses the terms "measured", "indicated" and "inferred" resources. U.S. persons are advised that while such terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred resources may not form the basis of feasibility or other economic studies. U.S. persons are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. U.S. persons are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
SOURCE: Yellowhead Mining Inc.
For further information: