Compagnie Minière de Touissit doubles mine life at Tighza with significant increase in resources

TORONTO, May 28, 2014 /PRNewswire/ - Compagnie Minière de Touissit ("CMT"), the second largest mining company operating in Morocco with significant current production of lead, silver and zinc, is pleased to announce the results of an independent reserves and resources report which demonstrates the substantial potential of the Tighza ore bodies. The report significantly extends Tighza's mine life, expands its existing reserves and resources base, and brings them into compliance with recognized international standards (1).

Summary of new reserves and resources estimates

CMT today has more than 16 years of mine life (based on proven and probable reserves only) and has the potential to significantly expand its mine life through the future conversion of 6mt of inferred resources and 5mt of measured and indicated resources.

"This is a tremendously positive report for Compagnie Minière de Touissit. A significant reserves and resources expansion, coupled with plans for a notable increase in throughput, provides us with an exceptional opportunity to leverage our position as one of Morocco's leading mining companies," said Jean-François Fourt, Chairman of CMT. "Our Tighza mine is a flagship asset and represents a uniquely attractive growth platform in Morocco."

The report was conducted by Mélabar Geoconsulting, a respected technical consultant in France, over the fourth quarter of 2013, based on the results of mining operations and new diamond drill program carried out in the last 3 years at the Tighza mine. The drilling program comprises 21,000 m across 71 diamond drill holes, in addition to the 16,290 m of mining exploration work

(1)Note: The presentation of the audit carried out at the Tighza mine does not strictly correspond to the NI 43-101 standard, but contains a classification of resources that Melabar Geoconsulting considers compliant with international standards (JORC 2012, CIM)

The combination of the compelling results demonstrated in the report, in addition to the successful preliminary results recorded from exploration activities focused on lead, gold and copper prospects across Morocco, suggests that CMT has the potential to become the leading mining company in the country.

"Morocco is an excellent mining jurisdiction, with highly prospective concessions, a stable and mining-friendly political and regulatory system, and a growing economy. I firmly believe CMT has tremendous potential to continue to grow and thrive from our interests in Morocco", said Mr Fourt.

The report demonstrates the opportunity of the construction of a new shaft (1,100m) allowing to grow production of the Tighza mine by c.25% in the medium term.

CMT also operates beyond Morocco. It is the largest shareholder (23%) of Auplata, a French Guiana-based gold producer which operates more than 700km² of permits in this promising region. Auplata is also the biggest single shareholder (25%) in Vancouver-listed exploration company Columbus Gold.

Osead SA, CMT's largest shareholder, has engaged Credit Suisse Securities (Europe) Ltd. as its exclusive financial adviser to assist it in evaluating a range of strategic alternatives for CMT.

About Compagnie Minière du Touissit:

CMT is currently the No.1 producer of lead concentrate and No.2 producer of silver in Morocco, headquartered in Casablanca and listed on the Casablanca Stock Exchange. During 2013, the output of Tighza mine, CMT's flagship asset, yielded approximately 318.9 kt of ore, with mill grade of 6.54 % for lead, 1.05% for zinc and 120 g/t for silver. That translated into total production of 25.4 kt of 77.76% lead concentrate, 4.4 kt of 51.7% zinc concentrate and 1.2 moz of silver contained in concentrate, as well as sales and EBITDA of $65 million / MAD547 million and €38 million / MAD323 million (59% margin), in 2013, respectively. In addition to its existing production at the Tighza mine, CMT conducts exploration activities on site and across Morocco. CMT holds 39 research permits, 22 exploitation permits and 13 mining concessions.

About Mélabar Geoconsulting:

Henri Sanguinetti is a well-known expert and has conducted the research on behalf of Mélabar Consulting. He has 44 years of experience in economic geology. This experience includes all phases of work from mineral exploration to project development, resource estimation using advanced geostatistics, grade control in underground and pit mines, reserves calculation and mining projects. Positions held include Project Geologist, Project Manager, Chief Mine Geologist, Principal Geologist Geostatistician and Head of Department (Resource Evaluation), and Private consultant. The majority of professional experience was acquired through working with uranium deposits, but also focused on gold, nickel, coal and iron deposits. He is Fellow of the Australian Institute of Mining & Metallurgy. Uranium expert. Chartered Professional.

Main clients of Mélabar Geoconsulting include Comilog (Gabon), Global Atomic Fuels Corporation (Canada & Niger), Goviex Holding (Canada), GGNSA (Niger), OSEAD (Luxembourg), SLN (New Caledonia), SORED (Senegal).

SOURCE Compagnie Minière de Touissit