Cameo Cobalt Initiates Comprehensive Review of Max Mill and Mine
TSX VENTURE: CRU
VANCOUVER, British Columbia, March 11, 2019 (GLOBE NEWSWIRE) -- Cameo Cobalt Corp. (TSX Venture: CRU) (OTC: CRUUF) (FWB: SY7N) (the “Company” or “Cameo”) is pleased to announce it has undertaken a series of strategic corporate initiatives, including a comprehensive review of its recently acquired MAX Mill and Molybdenum Project.
The Company is in the process of engaging a team of accomplished industry consultants, including mining engineers, geologists and financial advisors to administer an extensive review and analysis of the MAX Mill and Mine (the “MAX Analysis”). The MAX Analysis will include:
- Exhaustive inventory and asset review;
- 2019 replacement cost report;
- Review of the MAX Mine and Mill’s modern economics in relation to past production; and,
- Analysis of strategic funding sources.
Cameo plans to formally announce these strategic consultants upon official engagement.
Akash Patel, Chief Executive Officer and a Director of Cameo, stated: “2019 is set to be a transformative year for Cameo. With the addition of the Willa-Max, Cameo has redefined its corporate profile dramatically. Cameo’s Board is of the opinion that there is substantial shareholder value to be unlocked within our asset and property portfolios. The Company looks forward to advancing our exploration and development initiatives in an expeditious and responsible manner”.
MAX Mill and Molybdenum Project
The MAX Property covers more than 5,200 hectares near the community of Trout Lake in southeastern B.C., and includes the Max Mill and the underground workings of the MAX molybdenum project. The MAX Molybdenum project was explored by Newmont Exploration Canada Inc. in the late 1970’s and early 1980’s, including development of an underground access adit, rock dump, and roads. FortyTwo Metals Inc., the Vendor’s wholly-owned subsidiary, reportedly began mine development work and began commercial production in 2008. The mine production was suspended in September 2010 due to an underground pillar collapse, and was put into ‘care and maintenance’ in late 2011 due to continued low molybdenum prices.
The MAX molybdenum project mill is the suggested site for processing the gold-copper-silver ore from the Willa deposit, as described in the Willa PEA technical report (see below; Ash, et al., 2016). The MAX mill is located 142 km from the Willa deposit by road. Ash et al. (2016) noted that as of late 2015, the MAX mill had BCMEM permits in good standing, but they might need amending and/or extending if material is going to be shipped from the Willa Property and if new tailings are to be produced.
Willa Gold-Copper-Silver Project
The Willa Property, is a promising gold-copper-silver project with more than 500 drill holes and extensive underground workings, located 7.5 km south of Silverton B.C., near Slocan Lake.
This area has been the subject of small mining and prospecting projects since the late 1800’s. The first recorded work at the Willa project started in the 1890s, with the majority of exploration work (including more than 550 drill holes) starting in the 1960s. In the 1980s, the Willa project was explored by Rio Algom, BP and Northair Mines, which completed the 2,455 m of underground workings and recovered a 494 tonne bulk sample reportedly yielding 5.55 grams per tonne gold and 0.69% copper.
A historic estimate was reported by then-owners Discovery Ventures Inc. (name later changed to “MX Gold Corp.” – “the Vendors”) on the underground Willa project with an effective date of November 30, 2015 (Ash, et al., 2016) in a preliminary economic assessment (PEA) technical report following the standards of Canadian National Instrument 43-101 for, and filed on www.sedar.com. The Ash, et al., (2016) report historic estimate was 134,000 troy ounces gold (at 5.07 g/t Au grade); 15.5 million pounds copper (at 0.85% cu grade); and 244,000 oz silver (at 9.2 g/t Ag grade), in combined Indicated and Measured Mineral Resource categories following the category definitions set out in sections 1.2 and 1.3 of the CIM rules and regulations (June 24, 2011). The historic estimate used a 3.0 g/t Au equivalent cut-off grade, as summarized in Table 1 below (Ash, et al., 2016). The historic estimate was based on 593 holes totaling 56,312 m completed between 1965 and 2004 “the vast majority” of which were completed underground. Next steps, as recommended in Ash, et al., (2016) include a 10,000 tonne bulk sample to confirm existing metallurgical tests. Cameo will evaluate in the months ahead the relevance and reliability of the historic estimate and what steps must be taken to verify the key assumptions, parameters and methods used to characterize the Willa deposit.
The Ash, et al., (2016) historic estimate is the most recent estimate for the Willa deposit but was prepared before Cameo acquired the Willa deposit, and a qualified person (“QP”) working for Cameo has not done sufficient work to classify the historic estimate as a current mineral resource, and Cameo is not treating the historic estimate as current mineral resources.
The underground Willa deposit is located on a 5,600 hectare claims block accessible by B.C. Highway 6, approximately 160 kms south of Revelstoke, B.C., and 7.5 kms south of the small town of Silverton, set in the steep Aylwin Creek valley above Slocan Lake.
Table of Willa historic estimate above 3.0 g/t Au Eq cut-off grade from Ash, et al.(2016).
Harrison Cookenboo, Ph.D., P.Geo., is a qualified person as defined in National Instrument 43-101. He has reviewed and is responsible for the technical information in this news release.
CAMEO COBALT CORP.
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