VANCOUVER, Sept. 8, 2014 /PRNewswire/ - Bear Creek Mining
(TSX Venture: BCM) ("Bear Creek" or the "Company") is pleased to
provide an update on progress made on optimization studies at its
Corani Silver-Lead-Zinc deposit as the project advances towards
detailed engineering and permitting. The optimization
studies, involving three engineering firms led by Global Resource
Engineering of Denver, Colorado,
have been underway for six months and trade-off studies have
identified several design modifications enhancing the project
performance that will now be carried forward into the detailed
engineering. The project optimizations are not expected to
require a new Environmental and Social Impact study ("ESIA") and it
is expected that the Corani project can be moved forward with
modifications to the ESIA approved in September, 2013 (see News
Release dated September 25,
2013). The modifications, targeting reductions in initial and
sustaining CapEx while maintaining low OpEx (very low cash
costs/ounce Ag on a by-product basis) and expected high annual
silver output, include:
- In-pit tailings deposition beginning as early as year 5 of
operations combined with dry-stacking filtered tailings at
start-up, either eliminating the tailings dam requirement entirely
or, at a minimum, reducing the footprint. This design, for which
technology has advanced significantly over recent years, is
expected to substantially reduce the CapEx while expected to only
marginally increase OpEx. In addition to the economic
benefits, permitting is expected to be facilitated by this design
as the project footprint (impact area) will be reduced and
mine-closure procedures and associated costs are expected to be
reduced.
- Tailings pumping over the 22 year projected mine life are
expected to be reduced or eliminated improving operating
efficiencies and reducing OpEx, more than off-setting the expected
increase in OpEx related to tailings filtration and dry
stacking.
- Water demands will be reduced as opposed to conventional
wet-tailings disposal, eliminating the need for a fresh-water
storage dam, which is expected to reduce CapEx by as much as
$30M.
- New data regarding acid generating potential indicates that
over 50% of the waste rock is not acid generating which allows for
in-pit disposal of waste material, reducing haulage distances,
CapEx (smaller mine fleet equipment) and OpEx.
- Smaller SAG and ball mill components have been identified for
the 22,500 tonnes per day throughput rate while not impacting the
metal output of 13.4M ounces silver per year as stated in the 2011
feasibility study filed on SEDAR by the Company on December 22, 2011 entitled "Corani Project, Form
43-101F1 Technical Report, Feasibility Study" (the "FS" or
"Feasibility Study").
- Further studies are underway to consider contract mining for
the first 3-5 years. Trade-off studies will consider CapEx
savings versus OpEx increases. Innovations in contract mining
agreement structures will consider if purchasing the fleet in Year
5 can improve financial performance of the Corani project.
Andrew Swarthout, CEO and
President, stated "we are very encouraged by the optimization
phases of the detailed engineering which have identified
significant opportunities that are expected to maintain the project
CapEx in the $600M range of 2011
feasibility, maintain very low operating costs and minimize the
environmental footprint. To be able to negate the capital
cost creep of the last four years, and preserve the very low cash
costs per ounce of silver expected to be produced net of base metal
credits (negative for the first seven years of the projected 22
year mine life) is a very important achievement for our
Company. The driving factor is that we can minimize, or even
potentially eliminate, the tailings impoundment dam, which is the
largest capital and sustaining cost item in the 2011 Feasibility
Study. These opportunities are being verified by ongoing
engineering test work and will be incorporated into the detailed
engineering and revised mine plan immediately for preparation of an
updated Feasibility Study, expected to be completed by year-end
2014. The improved project design, as well as enhancing the
project economics, is also expected to facilitate permitting by
defining a lower impact project."
All scientific and technical information contained in this news
release has been reviewed and approved by Andrew Swarthout, P.Geo., the Chief Executive
Officer of the Company, who is a "qualified person" within the
meaning of National Instrument 43-101 ("NI 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 or
accuracy of this release.
Cautionary Note regarding Technical and Scientific
Disclosure and Forward-Looking Statements:
Please refer to the NI 43-101 technical report dated
December 22, 2011 entitled "Corani
Project, Form 43-101F1 Technical Report, Feasibility Study"
available under the Company's profile at www.sedar.com, as well as
the Company's news releases dated November
9, 2011 and January 4, 2012,
for further details of the mineral reserves, mineral resources and
the Feasibility Study in respect of the Company's Corani
project.
Cautionary Note regarding Forward-Looking
Statements:
This document contains "forward-looking information" within
the meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. This information and
these statements, referred to herein as "forward-looking
statements" are made as of the date of this news release or as of
the date of the effective date of information described in this
news release, as applicable. Forward-looking statements relate to
future events or future performance and reflect current estimates,
predictions, expectations or beliefs regarding future events and
include, without limitation, statements with respect to: (i)
modifications, if any, and timing of the ESIA; (ii) the planned
development of the Corani project or any of the Company's other
projects, including the timing thereof, and (iii) preparation of a
updated Feasibility Study, including the timing thereof. Any
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as "expects", "anticipates", "plans",
"projects", "estimates", "envisages", "assumes", "intends",
"strategy", "goals", "objectives" or variations thereof or stating
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved, or the negative
of any of these terms and similar expressions) are not statements
of historical fact and may be forward-looking statements.
All forward-looking statements are based on the Company's or
its consultants' current beliefs as well as various assumptions
made by and information currently available to them. These
assumptions include, without limitation: (i) the presence of and
continuity of metals at the project at modeled grades; (ii) the
capacities of various machinery and equipment; (iii) the
availability of personnel, machinery and equipment at estimated
prices; (iv) exchange rates; (v) metals and minerals sales prices;
(vi) appropriate discount rates; (vii) tax rates and royalty rates
applicable to the proposed mining operation; (viii) financing
structure and costs; (ix) anticipated mining losses and dilution; *
metals recovery rates, (xi) reasonable contingency requirements;
and (xiii) receipt of regulatory approvals on acceptable terms and
in the timeframes expected by the Company, including, without
limitation, in relation to a modified ESIA or updated Feasibility
Study, if any. Although management considers these assumptions to
be reasonable based on information currently available to it, they
may prove to be incorrect. Many forward-looking statements are made
assuming the correctness of other forward looking statements, such
as statements of net present value and internal rate of return,
which are based on most of the other forward-looking statements and
assumptions herein. The cost information is also prepared using
current values, but the time for incurring the costs will be in the
future and it is assumed costs will remain stable over the relevant
period.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and
risks exist that estimates, forecasts, projections and other
forward-looking statements will not be achieved or that assumptions
do not reflect future experience. We caution readers not to place
undue reliance on these forward-looking statements as a number of
important factors could cause the actual outcomes to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates assumptions and intentions expressed in
such forward-looking statements. These risk factors may be
generally stated as the risk that the assumptions and estimates
expressed above do not occur, but specifically include, without
limitation, risks relating to variations in the mineral content
within the material identified as mineral reserves and mineral
resources from that predicted; variations in rates of recovery and
extraction; developments in world metals and minerals markets;
risks relating to fluctuations in the Canadian dollar relative to
other currencies; increases in the estimated capital and operating
costs or unanticipated costs; difficulties attracting the necessary
work force; increases in financing costs or adverse changes to
global market conditions and the terms of available financing, if
any; tax rates or royalties being greater than assumed; changes in
development or mining plans due to changes in logistical, technical
or other factors, changes in project parameters as plans continue
to be refined; risks relating timing and to receipt of regulatory
approvals; adverse changes to government approval processes; the
effects of competition in the markets in which the Company
operates; operational and infrastructure risks; and the additional
risks described in the Company's Annual Information Form, annual
financial statements and management's discussion and analysis for
the year ended December 31, 2013 and
in the feasibility study entitled "Corani Project, Form 43-101F1
Technical Report, Feasibility Study" filed by the Company on
December 22, 2011 filed on the SEDAR
website in Canada (available at
www.sedar.com). The foregoing list of factors that may affect
future results is not exhaustive.
When relying on our forward-looking statements, investors and
others should carefully consider the foregoing factors and other
uncertainties and potential events. The Company does not undertake
to update any forward-looking statement, whether written or oral,
that may be made from time to time by the Company or on behalf of
the Company, except as required by law.
SOURCE Bear Creek Mining Corporation