Trading Symbol: TSX-V: ZFR
Shares Outstanding: 24,395,961
HALIFAX, Aug. 27, 2015 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSX-V: ZFR) is pleased to announce completion of a preliminary mine plan and cost estimate ("Mine Plan") for its 100% owned Dawson Property located in Freemont County, Colorado, U.S.A. MineTech International Limited of Halifax, Nova Scotia completed the work at a preliminary economic assessment ("PEA") level of accuracy. The Mine Plan addresses all aspects pertaining to mine design, mine scheduling, mining method, proposed equipment, manpower, capital cost (capex) and operating cost (opex), but does not include milling or general and administrative costs.
- Recoverable ounces gold to mill – approx. 27,200 oz/year; total in current Mine Plan – 116,100 ounces
- Mining Cost* - Underground - US$80/ton (US$88./tonne)
- Open pit - US$36/ton (US$37/tonne)
- Capital Cost - US$12.3 million
- Mining Rate - Daily - 300 tons (272 tonnes)
- Yearly – 110,000 tons (100,000 tonnes)
- Diluted Recoverable Resources** in current Mine Plan
- Dawson Segment – 451,000 tons @ 0.25 oz/ton (409,000 tonnes @ 8.53 g/t)
- Windy Gulch Segment – 14,700 tons @ 0.27 oz/ton (13,400 tonnes @ 9.2 g/t)
- Total – 466,000 tons@ 0.25 oz/ton (422,[email protected] g/t)
- Dilution – 7.5 to 23%; average 14.5%
- Mine Access (U/G) – Portal and 15 ft. x 11 ft., -15% decline (4.6 x 3.4m) totaling approximately 2,500 ft. (762 m) to the 6125 ft level in year 1
- Mining Method – Predominantly fully mechanized; longhole sublevel open stoping
* Mining costs include all development and production costs. Capital costs are not included.
** Recoverable resources estimated utilizing a 3.0 g/t cutoff, 40 g/t cap and a 95% mine recovery.
Recommendations include completion of the mine permitting process, tailings dam design, completion of a limited drill program at Windy Gulch and completion of a PEA at a total budgeted cost of $900,000. The drill program at Windy Gulch will focus on adding resources to the current inferred resource of 52,000 tonnes grading 9.89 g/t (4.0 g/t cutoff and 40 g/t cap). The proposed open pit at Windy Gulch currently incorporates approximately 25% of these resources. Additional resources will be added to the mine plan subsequent to completion of the recommended drill program. The drill program will target potential near surface resources to the east of the current resource boundary which remains open to the east and at depth.
The current undiluted inferred resource at the Dawson Segment stands at 371,000 tonnes grading 10.09 g/t (4.0 g/t cutoff and 40 g/t cap) and 11.42 g/t uncut. The Dawson Segment remains open at depth and to the west.
Loren Komperdo, President and CEO stated - "We are pleased that the mine plan confirms our view that the Dawson Gold Project ("Dawson") represents a potentially low capex and low opex operation. We remain very confident that the PEA will show Dawson to be a profitable operation even in this price environment, and that the excellent exploration potential over the 2.6 km strike length of the gold mineralized zone will result in building the resource base. Our view is that in the current market environment extensive drill programs on our multiple drill targets should be done from cash flow rather than capital raisings."
The effective date of the Mine Plan is August 26, 2015, the supporting report for which will be filed on Sedar on or before Oct. 9, 2015.
About Zephyr Minerals Ltd.
Zephyr Minerals Ltd. is a gold exploration and development company focused on advancing its flagship Dawson Gold Project in Colorado, USA. Dawson is an advanced stage high-grade gold property with excellent blue sky potential. In the fall of 2013, Zephyr announced filing on SEDAR a technical report, prepared in accordance with National Instrument -- Standards of Disclosure for Mineral Projects ("NI 43-101") on Dawson. Zephyr has commenced base line environmental studies as part of its efforts to advance the Dawson Project with the ultimate goal of production, subject in part to a positive economic study.
Mr. Doug Roy, P.Eng., with MineTech International Limited, is a Qualified Person as defined under National Instrument 43-101 and has reviewed the scientific and technical information in this news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Company, including, with respect to the use of funds, expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the exploration work on the Dawson Gold Project.
The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Zephyr Minerals Ltd.
For further information: Loren Komperdo, President & CEO or David H. Felderhof, Executive Vice President, Zephyr Minerals Ltd., T: 902 446-4189, F: 866 941-4715