HAYDEN, ID, May 30, 2013 /PRNewswire/ - Americas Bullion Royalty Corp. (TSX: AMB) (the "Company") is pleased to report positive results of metallurgical test work and estimated gold recoveries for the Brewery Creek project in Yukon, Canada. Current test work results on oxide material crushed to 80% passing 9.5 mm achieved average column leach recoveries by deposit of 77.9% to 82.9%1. Test work was conducted on material from seven deposits and on material from the former heap leach pad.
The results of the test work indicate that significant increases in gold extraction over the previous operation can be achieved from oxide material after crushing to a nominal size of 80% passing 9.5mm. The results also show that additional gold extraction can be achieved from the existing heap leach material after crushing. The 4 preliminary column tests from the Classic zone show that the syenite host rock which was not mined in the previous operation is likely amenable to gold extraction through the heap leach process.
The Brewery Creek mine was operated as an open pit run-of-mine heap leach operation from 1995 until the early 2000's. The operation reported mining and processing approximately 9.5 million tonnes of oxide material and achieved an overall recovery of approximately 60%. This recovery was achieved with no crushing. The current studies were undertaken to establish and verify management's view that by crushing the overall recovery of the oxide material at Brewery Creek could be significantly enhanced.
"Although the company is focusing on its royalty business, we are continuing to advance the Brewery Creek project which remains a substantial asset for the Company. These column tests are an integral component of establishing the economic viability of the proposed mine. The results of these tests show a one-third increase in gold recovery over previous operations and clearly establish the potential of the proposed mine," said William M. Sheriff, Chairman. "The Company will continue to advance the project through the YESSA executive committee assessment process working towards a government approval of amendments required to our current licenses which would allow a resumption of mining at Brewery Creek. We are continuing to look at various methods to realize the value of the project for our shareholders."
Metallurgical Test Work
Metallurgical test was conducted by McClelland Laboratories of Sparks, Nevada and included head assay characterization, bottle roll testing and column leach testing. The test work was conducted on composite samples from PQ core holes for seven deposits and from sonic drill hole samples obtained from the existing heap leach pad.
A total of 36 locked cycle column leach tests were conducted on composite samples crushed to 80 percent passing 9.5 mm. The 36 column tests included 32 columns from 7 deposits and 4 columns from the existing heap leach pad material:
- 22 columns; material from East and West Big Rock, Lower Fosters, Schooner and Bohemian deposits with Indicated and Inferred mineral resources
- 4 columns; material from the former heap leach pad
- 4 columns; the Classic zone Inferred resource area
- 6 columns; the old Moosehead pit area
Average recoveries by deposit ranged from 77.9% to 82.9%1 based on 17 column leach tests on Indicated and Inferred oxide resource material from the East & West Big Rock, Lower Fosters, Schooner and Bohemian deposits.
Four column leach tests achieved gold recoveries of 42.9% to 57.3 %1 on material from the previously processed heap leach pad. Four other column leach tests achieved gold recoveries of 41.4 to 95.5 %1 on material from the Classic Inferred resource area. Two column leach tests on oxide material from the former Moosehead pit area achieved recoveries of 10.3% to 49.2%1. Further testing will be necessary to identify a preferred method of recovery for any material from the small Moosehead area.
Nine column leach tests were conducted on unoxidized and material historically reported as preg robbing to observe their metallurgical responses. Generally the material responded as predicted with low recoveries < 25.0% but one sample of unoxidized material achieved 97.4% recovery and 2 samples of mixed oxide and potentially preg robbing material achieved 76.6% to 93.2% recovery. These results are in themselves positive in that we may be able to increase the amount of material available for leaching by careful material characterization prior to any processing.
Further metallurgical work is planned to continue to refine the metallurgical responses by rock type for areas with Indicated and Inferred resources and to test the effects of varying sodium cyanide concentrations on gold recoveries and reagent consumption.
A complete table of results can be found on the Company's website at:
Brewery Creek Project
The Brewery Creek Project is a past producing heap leach gold mining operation with a total of 278,484 oz Au produced from seven near-surface oxide deposits along the property's Reserve Trend from 1996 through 2002, when the mine (operated by Viceroy Resource Corporation) shut down primarily due to low gold prices. The 200 km2 property is located 55 km due east of Dawson City, accessible by paved and gravel roads from the junction of the North Klondike and Dempster Highways.
The Project is in receipt of all necessary permits required to conduct additional exploration. The Brewery Creek Project holds a Type A Water License with an expiry date of December 31, 2021, subject to the restrictions and conditions contained in the Yukon Water Act and Regulations. The Project also holds a Quartz Mining License (QML) with an expiry date of December 31, 2021. The Company is working to amend the Water License and the QML to incorporate current mine planning and design studies which are currently underway. In addition, a restated and amended Socio-Economic Accord with Tr'ondek Hwech'in First Nation with respect to the Brewery Creek Project is in place.
Brewery Creek hosts a NI 43-101 compliant resources of 581,000 indicated gold ounces in 20.417 million tonnes at 0.89 g/t and 346,000 inferred gold ounces in 12.990 million tonnes at 0.83 g/t (see June 18, 2012 news release). The Company anticipates publishing an updated resource estimate, incorporating the 2012 drilling program, in 2013.
The Brewery Creek Project has the support of the community of Dawson City and the Tr'ondek Hwech'in because the Company remains committed to advancing the project in a socially and environmentally responsible manner, rehabilitating a previously operational gold mine bringing social and economic benefits to the region and, particularly to the Tr'ondek Hwech'in who have partnered with the Company for the development of this project.
The technical content of this news release has been reviewed and approved by Michael Maslowski BSc, CPG, the Company's Chief Operating Officer and a Qualified Person as defined by National Instrument 43‐101.
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. focuses on acquiring precious metal royalties and streaming assets which provide revenue as well as lower risk exposure to shareholders through project diversity in stable, mining-friendly jurisdictions. The Company's existing portfolio is highlighted by Gross in-kind Royalties on Midway Gold's Pan and Gold Rock deposits, as well as 2 separate royalties encompassing more than 34 square miles at Barrick Gold's Bald Mountain project in Nevada.
The Company holds additional royalties including Net Smelter Return Royalties on the Taylor Silver project and a portion of the Tonkin Springs project also in Nevada. The Company's royalty holdings comprise more than 100,000 acres located primarily in Nevada, with 7 of the projects located in Wyoming, Oregon, California and Mexico. Current royalty revenue is expected to accelerate as early as 2014 as several of these projects commence production. Americas Bullion Royalty Corp.'s prime royalty portfolio is unique in the mineral development industry due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash), its possession of gross royalties with no exposure to operator cost, as well as its security of title with no buyback or buyout provisions. The Company continues to advance or monetize other assets including its significant Yukon property holdings, security holdings and the Taylor Mill in Nevada.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Americas Bullion's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Americas Bullion assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
1= Column leach test recoveries are not adjusted to estimate potential commercial recoveries of gold to dore. For more information, please see the complete table of results found on the Company's website.
SOURCE Americas Bullion Royalty Corp.