Coronet Metals Announces Joint Processing Agreement on White Caps Tailings Project
Vancouver, British Columbia--(Newsfile Corp. - March 28, 2017) - Coronet Metals Inc. (TSXV: CRF) (FSE: 2CM) (OTC Pink: CORMF) ("Coronet" or "the Company") is pleased to announce that the Company has entered into a binding letter of intent ("LOI") to form a Joint Venture agreement ("JV") with Mineworx Technolgies Inc. ("Mineworx"), a 100% wholly owned subsidiary of Iberian Minerals Ltd. (TSXV: IML) (OTCQB: SLDRF) ("Iberian") to process the estimated 250,000 tonnes gold bearing historic tails and mine dumps* at its wholly-owned White Caps Gold Mining Project ("White Caps" or "The Project") in the Manhattan Mining District of Nevada. Through Coronet's wholly-owned subsidiary, "White Caps Mining Company" ("WCMC"), the Company controls the historic tails and mine dumps.
Under the terms of the agreement, Coronet will provide all necessary funding for the testing and project development. When commercial production commence, the Joint Venture shall be responsible for all operational costs and all revenues & profits will be shared on a 50/50 basis, after Coronet fully recovers its investment. Mineworx's share of the JV will be reduced to 35% after a two year period.
Further to the February 2, 2017 new release, the Company successfully completed the first round of hydrometallurgical test results on the gold-bearing tailings and dumps. The hydrometallurgical test work was performed by Mineworx and Met-Solve Laboratories (Langley, BC) with ALS Global (Vancouver) performing independent verification of the sample solutions and solids.
The patent-pending, environmentally friendly, non-cyanide-based "EnviroLeach leaching formula", was used on the gold-bearing tailings and mine dumps to determine and optimize recoveries of gold.
Coronet and Mineworx. subsequently proceeded towards a second round of test work, adjusting the EnviroLeach formula and the results have either confirmed or improved upon the results from the first phase of testing. Given these grades and recoveries, it was decided to enter into a formal agreement to further investigate the economic potential of processing the material.
The Joint Venture will first build a small scale 50kg pilot plant at Mineworx's Burnaby, BC facility to determine recoverability and reusability of the formula, gold recovery from solution, optimization and preliminary economics. Following a successful small scale pilot plant test, a 1 tonne per day pilot plant will be built to test 40 tonnes of material to confirm scalability, recoveries and economics
Mr. Fred Tejada, P.Geo, a Director of the Company, is a Qualified Person under the meaning of Canadian National Instrument 43-101 and is responsible for the technical information contained in this news release.