Analysis Confirms Substantial Grade Improvement for CuMo Project
Results show direct processing feed increasing up to 270 percent
Boise, Idaho—January 25, 2017: American CuMo Mining Corporation (CuMoCo) (MLYCF), and its wholly owned subsidiary, Idaho CuMo Mining Corporation (ICMC) announces excellent results when utilizing Ore-Sorting technology on samples from the CuMo Project located in Boise County. Results reported by Sacre-Davey Engineering on 400 representative samples confirm that mineralization at CuMo is amenable to significant upgrading and potential increase of up to 270 percent in value through Ore-Sorting technology.
“We know the demand is greatly increasing for molybdenum worldwide. The Ore-Sorting optimization and others that we are considering will improve the feasibility and increase the profitability of the CuMo Project,” said Shaun Dykes, President and CEO of CuMoCo. “With President Trump’s plans for extensive infrastructure projects, current molybdenum supplies will not be adequate and the CuMo Project will become critical to meeting US supply needs.”
The samples for the Ore-Sorting study were deliberately selected to match the grade and volume distribution of the various metals zones within the CuMo deposit as defined in the November 2015 43-101 resource calculation. The CuMo deposit has long been recognized as a stockwork vein deposit, consisting of narrow veins containing molybdenum and/or copper mineralization, surrounded by discard/waste material. With this vein mineralization structure, Ore-Sorting technology has provided excellent metallurgical recoveries even at lower-grade levels. This technology uses sophisticated X-ray technology (XRF) to identify rocks that contain processing grade minerals and separates them from those that do not.
CuMoCo intends to leverage these new results to produce an updated preliminary economic assessment, adding the substantial benefits of Ore-Sorting to the already robust economics of the deposit. The final stage will be to create a series of large bulk (five ton) samples for testing that will also be used in feasibility-level metallurgical testing. The combined results of Ore-Sorting and metallurgical test work will then be used in a feasibility-level economic study.
“As we progress the Project through these important studies, we remain focused on sustainable management and development of the world’s largest molybdenum deposit,” said Dykes. “The CuMo Project is projected to create thousands of long lasting jobs and hundreds of millions of dollars in tax revenue. Both are key factors in supercharging Idaho’s economy.”
Dykes shared that the ICMC management team is preparing for 2017 CuMo Project work program consisting of drilling, engineering, environmental baseline studies and completing the permitting process. Additionally, they will analyze other optimizations designed to lower operating and capital cost estimates for the Project with the goal of completing a pre-feasibility or an initial feasibility level economic study as soon as possible. The target for these optimizations is to confirm potential cash operating cost reductions per pound molybdenum to under one dollar per pound.
About Idaho CuMo Mining Corporation
Idaho CuMo Mining Corporation (ICMC) is the wholly-owned subsidiary of American CuMo Mining Corporation, a Canadian natural resource exploration and development company. ICMC is committed to conducting all exploration and development activities, present and future, in a manner that ensures a minimal impact on the environment. Every decision made by the development team is focused on designing an environmentally sound and socially responsible project. Currently, ICMC is advancing the CuMo Project in Boise County, Idaho and Calida Gold Project in Lemhi County, Idaho.
About the CuMo Project
The CuMo Project is a scientific exploration of the largest molybdenum deposit and one of the top 25 silver deposits in the world. CuMo is located in a historic mining district in Boise County, Idaho. American CuMo Mining Corporation (CuMoCo) acquired the claim in 2004. CuMoCo established Idaho CuMo Mining Corporation (ICMC), an Idaho-based, wholly-owned subsidiary, to manage the geologic and environmental exploration that will determine the future development plan.
About American CuMo Mining Corporation
CuMoCo is focused on advancing its CuMo Project towards feasibility and establishing itself as one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Management is continuing to build an even stronger foundation from which to move the Company and the CuMo Project forward. For more information, please visit cumoco.com and cumoproject.com .
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This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such the Company’s ability to move its CuMo Project to feasibility and production, and to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study and to put the CuMo project into production, that no labour shortages or delays are experienced, that plant and equipment function as specified that the Court will not intervene with the Company’s proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company’s publicly filed documents, including the Company’s Management’s Discussion and Analysis for the period ended September 30, 2016. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.