Vancouver, BC / TheNewswire / February 1st, 2017 - Montan Mining Corp. (TSXv: MNY | FSE: S5GM | SSE: MNYC) ("Montan" or the "Company") is pleased to announce that the operational transition of its recently acquired Cerro Dorado mill project is proceding ahead of schedule. The Company is also proceding with a sampling program at certain exposed surface veins and a review of underground potential at its Rey Salomon mine including the vetting of potential contract operators at Rey Salomon.
The Company's Rey Salomon mine is located adjacent to its Cerro Dorado processing plant complex and has recorded off-site sales of mineralised rock from past production of some 1,675 tonnes grading 11.80 g/t Au between 2012 and 2015, with earlier recorded production of 670 tonnes grading 15.23 g/t Au (as per Minera OFIR 2012 sales records). Included in the most recent sales records are 466.8 dry tonnes with a grade of 10.6g/t Au sold to the Chala One plant belonging to Inca One Gold Corp. (TSX-V: IO) and 370.2 dry tonnes with a grade of 9.5g/t Au sold to the Koricancha plant belonging to JDL Gold Corp., formerly Anthem United (TSX-V: JDL).
Permitting Expansion Update
The company is also pleased to announce that it has expanded permitting of the Cerro Dorado plant to an effective 125 tons per day ("TPD") by submitting a revised Instrumento de Gestion Ambiental Correctivo ('IGAC') to both the Regional Government of Arequipa and to the Environmental Ministry of Peru as required by Peruvian law. The application proposes a new 60 TPD flotation circuit, an expansion of the tailings pond area to accommodate for an estimated five years of tailings residue, a sampling assay laboratory and a truck scale. Peruvian law allows Montan to proceed with the building of the items under the IGAC permit application covering the Cerro Dorado plant, commencing immediately.
"The submitted permit application allows Montan to begin building out the facilities we need to accept mineral feed from the surrounding area which is host to numerous gold producers," stated Ian Graham, CEO. "Also, the flotation circuit would add to efficiencies in sulphide gold recovery and increase total permitted capacity to 125 TPD. This permitting effort at the plant in conjunction with work planning on the Rey Salomon mine commenced before Montan closed on the acquisition of Cerro Dorado and has allowed us to hit the ground running now that we own this very exciting asset."
Peru Management Update
Montan's VP Operations in Peru Mr. Jose Luis Garcia Yrivarren has been designated as the General Manager nominee for Cerro Dorado S.A.C., Montan's 100% owned Peruvian subsidiary that owns the Cerro Dorado Plant and Rey Salomon gold mine.
Mr. Jose Luis Garcia Yrivarren was formerly the Commercial Manager at Peru's largest private gold processing company, a firm that produced 79,966 ounces of gold in 2014 through its gold milling facility located in the Chala district. During his tenure, Mr. Garcia was responsible for the organization and formalization of mineral feed purchases as well as overseeing the business' mineral supply chain which is secured through satellite receiving stations dispersed among the established gold production districts in southern Peru. In his former role, Mr. Garcia assisted in achieving a 300% gold production increase, as well as improving average feed grade from 0.53 oz per ton ("oz/tn") to 0.79 oz/tn gold. Mr. Garcia also helped shorten the feed assay and mineral supply payment process, reducing wait time for miners and rendering the process more efficient and transparent. Mr. Garcia was also responsible for helping miners through the formalization process. Mr. Garcia helped maintain rigorous safety standards which among other things reduced the average number of transport accidents from five per year to one per year during his tenure. Mr. Garcia is a graduate of the University of San Martin (B.A Econ) and holds a Diploma of Finance from ESAN, Peru's most prestigious business school.
Financing Update
The company is currently engaged on securing the financing necessary to commence full operations at the Cerro Dorado project. The company is focused on securing debt or streaming financing options as the expected financial performance of the Cerro Dorado project has interested debt and stream lenders both in Canada and Europe. The company has NDA's signed with various potential financial and strategic investors and will advise forthwith on progress.
