American CuMo Mining Corporation (CuMoCo or the Company) (TSXV: MLY; OTC-Pink: MLYCF) announces the signing of an agreement to earn 100 percent interest in eight unpatented mining claims known as the Calida Mine Property located in southeastern Idaho.
“We are extremely pleased to add the Calida Mine Property to our portfolio. This is a highly prospective gold, silver and copper property that has significant historic drill results and has the potential of being developed in a relatively short period,” said Shaun Dykes, President and CEO of CuMoCo.
The Calida claims cover several significant mineralized gold, silver, and copper veins that range in width from 1.5 meters (5 feet) to more than 30 meters (100 feet) and have been exposed on the surface for approximately 4,267 meters (14,000 linear feet).
The agreement gives CuMoCo a ten-year option to earn 100 percent interest by making a series of payments. An initial payment of $40,000 US dollars has been made and ongoing payments consist of the following in US funds:
- $40,000 on or before 90 days of the effective date.
- $50,000 on or before six months of the effective date.
- $50,000 on or before 12 months of the effective date.
- $50,000 on or before 18 months of the effective date.
- $50,000 on or before 24 months of the effective date.
- $50,000 every six months until commercial production or ten years.
- $1 million at the start of commercial production.
The Calida agreement includes a variable buyout price, the Actual Exercise Price (AEP), that is based on the number of ounces of gold equivalent as defined in an independent 43-101 pre-feasibility or feasibility study. The AEP has a minimum price of $10 million dollars for one million ounces of gold equivalent, rising at the rate of $10 million dollars for each one million ounces of gold equivalent to a maximum price of $50 million dollars for greater than five million ounces of gold equivalent.
The property has been extensively explored for the past thirty years. Exploration has included drilling 23 holes in 1983 as well as thorough trenching and sampling. A total of ten mineralized veins have been identified on the property to date. Significant intersections from the drilling are listed below:
In 2009, an independent resource calculation using the historic data was completed which defined a resource of 8,059,304 tons grading 0.168 ounces gold/ton, 6.12 ounces silver/ton and 2.86 percent copper.
The 2009 resource is considered an historical resource, as a technical report on the resource was never filed although the calculation was completed. It is the qualified person’s opinion that the resource is reliable having been done by a reputable independent third party who verified data and checked assays. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. The Company is not treating the resource as a “current resource” and does not intend to rely on this resource but will use it as a guide.
Examination of available data indicates a target area of at least 100 meters (328 feet) wide, 1500 meters (4921 feet) long and 500 meters (1640 feet) deep that contains gold with copper bearing mineralization. CuMoCo has constructed a three-dimensional model of the veins and has identified a preliminary exploration target of between 8 and 30 million tonnes grading between 5 and 10 grams per tonne gold, 150 to 200 grams per tonne silver and 2 to 3 percent copper.
The Company intends to further the exploration and cautions that the target, the potential quantity and grade is conceptual in nature as exploration work done to define Mineral Resources as defined by NI 43-101 has been insufficient. It is uncertain if further exploration will result in establishing the existence of Mineral Resources.
“It is important for our shareholders to know that we remain completely focused on developing the CuMo Project and advancing its towards production,” said Dykes. “Being a significant gold property, the Calida Mine provides an excellent opportunity to add value to the Company for its ongoing negotiations with Chinese or other investors.”
Shaun Dykes, M.Sc. (Eng); P.Geo (#20044), a Qualified Person as defined in NI 43-101, is responsible for the review of all scientific and technical information contained in this release.
About CuMoCo
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 www.cumoco.com and www.cumoproject.com
For further information, please contact:
American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.
Forward-looking information
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 as the Company’s ability to successfully negotiate the Definitive Agreement with the Chinese Partners, the Company’s ability to move the CuMo Project through development to feasibility and production, and for the Company 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 fiscal year ended June 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.