Wallbridge Mining Company Limited (TSX:WM,
OTCQX:WLBMF) (
“Wallbridge” or the
“Company”) is pleased to report positive results
from the Preliminary Economic Assessment (“
PEA”)
completed on its still growing, 100%-owned Fenelon gold project
(“
Fenelon” or the “
Project”)
located in the Abitibi Greenstone Belt, along the Detour-Fenelon
Gold Trend, Quebec (Table 1).
Tony Makuch, Chairman of Wallbridge, stated:
“Projects such as Fenelon, with a projected
annual production profile of more than 200,000 gold ounces, located
in a mining-friendly jurisdiction with established infrastructure,
having substantial exploration upside and access to clean
hydro-electric energy are highly desirable yet exceedingly rare in
the mining industry today. We are extremely pleased that the PEA on
Fenelon alone is demonstrating robust economics at this early
stage. We expect further improvements as we continue to add to the
resource base through our exploration efforts at Fenelon and
elsewhere on our very large land position in the northern Abitibi
greenstone belt.”
All results herein are reported in Canadian
dollars unless otherwise indicated.
PEA SUMMARY
- Average annual gold production of 212,000 oz over 12.3
years.
- Average annual free cash flow of $157 million over life
of mine (“LOM”).
- After-tax NPV of $721 million at base case gold price
of US$1,750 and $C/US$ of 1.30
- After-tax NPV of $1,070 million at spot gold price of
US$1,950 and $C/US$ of 1.34
- Initial capital expenditures of $645
million.
- Sustaining capital expenditures of $594
million.
- Total cash costs of US$749/oz.
- All-in-sustaining costs of
US$924/oz.
Marz Kord, Wallbridge’s President and Chief
Executive Officer, commented:
“Wallbridge acquired the original Fenelon
property in 2016 with a small historic resource based on sporadic
geological work by previous owners. Since then, we have been very
successful in delineating a multi-million-ounce gold resource,
which remains open in virtually all directions. Fenelon has now
reached another milestone with a robust PEA that demonstrates a
viable path to development and attractive economic returns based on
conservative assumptions. The PEA was designed to be rigorous,
using current cost data from contractors, suppliers and mining
companies operating in the region to arrive at realistic
projections. It represents a compelling starting point to build
upon as we scope out the full opportunity at Fenelon and
Martiniere, the two most advanced projects on our large,
underexplored property.
Over the next few months, we will evaluate
alternatives to advance Fenelon. While doing so, we will continue
to test new areas of mineralization at Fenelon. We have a great
near-term opportunity to incorporate satellite deposits such as
Martiniere into future studies, with the potential for substantial
synergies on a district scale. Our 2023 exploration programs will
further delineate the size and scale of the Fenelon and Martiniere
deposits while also targeting new greenfield discoveries on our
land package.”
Table 1: PEA Summary of Key Metrics and
Project Economics
Description |
Unit |
Base Case |
Spot Prices |
Metal Prices/FX |
|
|
|
Gold (Au) |
US$/oz |
$1,750 |
$1,950 |
Currency Exchange Rate |
C$/US$ |
|
1.30 |
|
1.34 |
Production Data |
|
|
|
Milled Tonnes |
million tonnes |
|
31 |
|
Gold Grade Mined |
g/t |
|
2.73 |
|
Gold Recovery |
% |
|
96 |
|
Daily Mill Throughput |
tpd |
|
7,000 |
|
Mine Life |
years |
|
12.3 |
|
Avg Annual Production |
oz Au |
|
212,000 |
|
Recovered Gold |
million oz |
|
2.61 |
|
Operating Costs |
|
|
|
Total Cash Costs 1,3 |
$/tonne milled |
|
82 |
|
Total Cash Costs 1,3 |
US$/oz |
|
749 |
|
All-in
Sustaining Costs2,3 |
US$/oz |
|
924 |
|
Capital Costs |
|
|
|
Initial Capital3 |
$ million |
|
645 |
|
Sustaining Capital3 |
$ million |
|
594 |
|
Financial Analysis |
|
|
|
Pre-Tax NPV 5% |
$ million |
|
1,210 |
|
1,788 |
Pre-Tax IRR |
% |
|
23.0 |
|
30.8 |
After-Tax NPV 5% |
$ million |
|
721 |
|
1,070 |
After-Tax IRR |
% |
|
18 |
|
24 |
Payback
Period (Production Start) |
years |
|
5.4 |
|
4.2 |
- Total cash costs include mining,
processing, tailings, surface infrastructures, transport, G&A
and royalty costs.
- All-in sustaining cost
(“AISC”) includes total cash costs, sustaining
capital expenses to support the on-going operations, and closure
and rehabilitation costs divided by payable gold ounces.
- Non-IFRS
financial performance measures with no standardized definition
under IFRS. Refer to note at end of this press release.
Financial Analysis
At base case gold price of US$1,750/oz, the
Project generates after-tax Net Present Value
(“NPV”) of $721 million using 5% discount rate and
an after-tax Internal Rate of Return (“IRR”) of
18%.
The Project generates cumulative free cash flow
of $1,395 million and average annual free cash flow of $157 million
over a mine life of 12.3 years (Figure 1). Total taxes payable
over LOM at the base case gold price is $792 million.
Figure 1. Project After-Tax Cash Flow
Sensitivities
The PEA financial economic analysis is
significantly influenced by gold prices. At a spot gold price of
US$1,950/oz and FX of 1.34, the Project generates an after-tax NPV
of $1,070 million and an after-tax IRR of 24% with a payback period
of 4.2 years from the commencement of production (Table 2).
Table 2: PEA Sensitivity to Gold Price, Operating Costs
& Capital Costs
Gold Price US $/oz |
FX |
NPV$M |
IRR% |
PaybackYears |
$1,600 |
1.30 |
512 |
14 |
6.2 |
$1750 |
1.30 |
721 |
18 |
5.4 |
$1,900 |
1.30 |
923 |
21 |
4.6 |
$1,950 – Spot |
1.34 |
1,070 |
24 |
4.2 |
Operating Costs |
NPV$M |
|
Capital Costs |
NPV$M |
Base
Case -10% |
823 |
|
Base
Case -10% |
786 |
Base Case |
721 |
|
Base Case |
721 |
Base Case +10% |
614 |
|
Base Case +10% |
653 |
Base Case +20% |
506 |
|
Base Case +20% |
586 |
Production
Annual production over LOM is expected to
average 212,000 ounces with peak year production of 240,000 ounces
(Figure 2).
Figure 2. Production Profile
Capital Costs
The initial capital costs are estimated at $645
million, and the sustaining capital is estimated at $594 million
(Tables 3 & 4). A contingency of $54 million and $44 million is
included in initial and sustaining capital costs, respectively.
Initial and sustaining capital costs were
estimated based on current costs received from vendors as well as
developed from first principles, while some were estimated based on
factored references and experience from similar operating
projects.
Table 3: Initial Capital
Cost Element |
Initial Capital
($M)1,2 |
Mill |
220 |
|
Paste Plant |
46 |
|
Tailings and Water
Treatment |
36 |
|
Capitalized Operating
(Pre-production) |
99 |
|
Surface Civil &
Infrastructure |
87 |
|
Mining Equipment |
18 |
|
Underground Development |
83 |
|
Hydro
Electric Line & Distribution |
55 |
|
Total Initial Capital |
$645 |
|
- All values stated are undiscounted.
No depreciation of costs was applied.
- Non-IFRS financial performance
measures with no standardized definition under IFRS. Refer to note
at end of this press release.
Table 4: Sustaining Capital
Cost Element |
Sustaining Capital
($M)1,2 |
Production Shaft |
143 |
|
Mining Equipment |
140 |
|
Development |
158 |
|
Tailings & Water
Treatment |
63 |
|
Paste Distribution
Network |
13 |
|
Underground
Infrastructure |
45 |
|
Surface Infrastructure |
26 |
|
Closure |
8 |
|
Total Sustaining Capital |
$594 |
|
- All values stated are undiscounted.
No depreciation of costs was applied.
- Non-IFRS
financial performance measures with no standardized definition
under IFRS. Refer to note at end of this press release.
Cash Costs
The total cash costs including the 4% royalties,
is estimated at $82/t milled or US$749/oz payable gold. The AISC is
estimated at US$924/oz payable gold.
Operating cost estimates were developed using
first principles methodology, vendor quotes, and productivities
being derived from benchmarking and industry practices.
Table 5: Total Cash Costs
|
LOM Total $ million |
Average LOM ($/tonne milled) |
Average LOM (US$/oz) |
Mining |
1,320 |
42.7 |
391 |
Processing |
521 |
16.8 |
153 |
Water Treatment &
Tailings |
51 |
1.6 |
15 |
General & Admin. |
408 |
13.2 |
120 |
Royalty
(4%) |
237 |
7.7 |
70 |
Total Cash Costs 1,2 |
2,537 |
82.0 |
749 |
- Total operating costs include
mining, processing, tailings, surface infrastructures, transport,
G&A and royalty costs.
- Non-IFRS financial performance
measures with no standardized definition under IFRS. Refer to note
at end of this press release.
Opportunities
The main opportunities for the Project that have
been identified include:
Opportunity |
Potential Benefits |
Additional infill drilling at Fenelon |
Would likely increase the resource grade and ounces and convert
more inferred to measured and indicated categories. |
Additional exploration drilling at Fenelon |
Deposit is open in all directions. Would likely increase the
mineral resources and extend mine life. |
Additional technical studies (borrow pits, geotechnical
investigation, hydrogeology, geochemical) |
Would likely improve project economics by reducing the capital
requirements. |
Additional geotechnical/rock mechanics |
Would likely reduce crown pillar thicknesses thus increasing
overall ounces. |
Additional metallurgical studies, paste fill testing, and tailings
testing |
Would likely lower project operating costs. |
Additional waste rock sampling |
Would likely identify clean waste rock to reduce site
infrastructure costs. |
Additional drilling at Martiniere |
Would likely add organic production growth by increasing mineral
resources and converting from inferred to measured and indicated
categories. |
Additional exploration outside the current mineral resources |
Large, underexplored land package. Potential for new discoveries to
add organic production growth. |
Mineral Resource Estimate
The PEA is based on the 2023 Fenelon Deposit
Mineral Resource Estimate (“MRE”) and contains
indicated and inferred mineral resource. Carl Pelletier, P.Geo.,
Vincent Nadeau-Benoit, P.Geo., Simon Boudreau, P.Eng. and Marc R,
Beauvais, P.Eng., all of InnovExplo Inc.
(“InnovExplo”) are the independent qualified
persons within the meaning of NI 43-101 for the 2023 Fenelon
MRE.
Table 6: Fenelon Deposit Mineral Resource
Estimate
Notes:
- The independent
and qualified persons for the current Detour-Fenelon Gold Trend
2023 MRE are Carl Pelletier, P.Geo., Vincent Nadeau-Benoit, P.Geo.,
Simon Boudreau, P.Eng. and Marc R, Beauvais, P.Eng., of InnovExplo
Inc. The Detour-Fenelon Gold Trend 2023 MRE follows 2014 CIM
Definition Standards and 2019 CIM MRMR Best Practice Guidelines.
The effective date of the Detour-Fenelon Gold Trend 2023 MRE is
January 13, 2023.
- These mineral
resources are not mineral reserves as they do not have demonstrated
economic viability.
- The QPs are not
aware of any known environmental, permitting, legal, title-related,
taxation, sociopolitical or marketing issues, or any other relevant
issue, that could materially affect the potential development of
mineral resources other than those discussed in the Detour-Fenelon
Gold Trend 2023 MRE.
- For Fenelon, 112
high-grade zones and seven (7) low-grade envelopes were modelled in
3D to the true thickness of the mineralization. Supported by
measurements, a density value of 2.80 g/cm3 was applied to the
blocks inside the high-grade zones, and 2.81 g/cm3 was applied
to the blocks inside the low-grade envelopes. High-grade capping
was done on raw assay data and established on a per-zone basis and
ranges between 25 g/t and 100 g/t Au for the high-grade zones
(except for the high-grade zones Chipotle and Cayenne 3 a
high-grade capping values of 330 g/t Au was applied) and
ranges between 4 g/t and 10 g/t Au for the low-grade
envelopes. Composites (1.0 m) were calculated within the zones and
envelopes using the grade of the adjacent material when assayed or
a value of zero when not assayed. A minimum mining width of 2
metres was used for underground stope optimization.
- The criterion of
reasonable prospects for eventual economic extraction has been met
by having constraining volumes applied to any blocks (potential
surface and underground extraction scenario) using Whittle and DSO
and by the application of cut-off grades. The cut-off grade for the
Fenelon deposit was calculated using a gold price of US$1,600 per
ounce; a CA/US exchange rate of 1.30; a refining cost of $5.00/t; a
processing cost of $18.15/t; a mining cost of $5.50/t (bedrock) or
$2.15/t (overburden) for the surface portion, a mining cost of
$65.00/t for the underground portion and a G&A cost of $9.20/t.
Values of metallurgical recovery of 95.0% and royalty of 4.0% were
applied during the cut-off grade calculation. The cut-off grade for
the Martiniere deposit was calculated using a gold price of
US$1,600 per ounce; a CA/US exchange rate of 1.30; a refining cost
of $5.00/t; a processing cost of $18.15/t; a mining cost of $4.55/t
(bedrock) or $2.15/t (overburden) for the surface portion, a mining
cost of $118.80/t for the underground portion using the long-hole
mining method (LH), a mining cost of $130.70/t for the underground
portion using the cut and fill mining method (C & F), a G&A
cost of $9.20/t and a transport to process cost of $6.50/t. Values
of metallurgical recovery of 96.0% and royalty of 2.0% were applied
during the cut-off grade calculation. The cut-off grades should be
re-evaluated in light of future prevailing market conditions (metal
prices, exchange rate, mining cost, etc.).
- Results are
presented in-situ. Ounce (troy) = metric tons x grade/31.10348. The
number of tonnes and ounces was rounded to the nearest thousand.
Any discrepancies in the totals are due to rounding effects;
rounding followed the recommendations as per NI 43-101.
Mining
The underground mine will have a production rate
of 7,000 tpd over a 12.3-year mine life. A total of 30.8 Mt of
mineralized material at an average grade of 2.73 g/t will be
extracted from three different mining zones:
- Tabasco-Cayenne zones with 68.5% of
the ounces to be mined;
- Area 51 zones with 31.1% of the
ounces to be mined; and
- Gabbro zones with 0.4% of the
ounces to be mined.
The mining method will be long hole with
longitudinal stopes for 5 to 8 metres width, corresponding to 40%
of the stope tonnage. Transverse stopes are designed for stopes
with 8 to +15 metres width, which account for 60% of the remaining
stope tonnage. (Figure 3)
Stope dimensions are 30 metres (A51 Zones) to 40
metres (Tabasco-Cayenne Zones) in height, 5 to 15 metres in width
and 20 to 25 metres in length. The average size of the stopes from
all zones is approximately 15,000 tonnes and about 150 stopes will
be mined annually. Mining recovery is estimated at 96%. Stope
backfilling will be done with cemented rock fill (50%) and rock
fill (50%) or with paste backfill depending on the stope dimensions
and sequence.
Development will be done with a mining
contractor during Pre-Production Year 1. Starting at Pre-production
Year 2, development will be done with owner equipment-personnel.
Development priority is to develop the main Tabasco ramp and to
access production centers. The development mineralized material
will generate 10% of the total gold production.
The mining fleet, comprised of 99 pieces of
mobile equipment, will be purchased via a lease financing
agreement. Supporting underground infrastructure includes several
main pumping stations, two ventilation and heating systems and one
exhaust raise.
Figure 3. LOM schematic
Metallurgy
Metallurgical test work was completed in two
phases in 2020 and 2021 on material from Area 51 and
Tabasco-Cayenne zones by SGS Canada Inc.
Grindability testing was completed in 2021,
including SAG mill comminution test. The samples were characterized
as hard with respect to resistance to impact breakage during SMC
test, with Axb drop weight test values ranging from 23 to 31. Bond
rod mill index results are in a range of 15.6 to 16.9 kWh/tonne,
which can be classified as moderately hard to hard range. The bond
ball index ranges from 13.4 to 16.2 kWh/tonne, considered as in the
medium range of hardness.
Gravity gold recovery testing was done in 2021
on representative composite sample of Tabasco-Cayenne and Area 51
zone material. Gold recoveries to the gravity concentrate were as
high as 66.5% for Tabasco-Cayenne and 84.3% for Area 51, in line
with prior testing in 2020. The results of gold gravity recovery
testing show the need for a gravity circuit in the process
flowsheet.
Cyanidation testing was completed in 2020 on
representative samples following gravity recovery. Overall, gold
recoveries ranged from 94.6% to 96.9% for the Tabasco Zone and
95.3% to 97.1% for Area 51.
Based on 2020 and 2021 testing and planned
process flowsheet, the estimated process plant payable gold
recovery is to average 96.0% over the LOM.
Processing
A total of 7,000 tpd of material will be
processed in the plant, which will consist of a semi-autogenous
grinding mill in closed circuit with a pebble crusher and ball mill
in closed circuit with cyclones (SABC circuit). The crushing
circuit will consist of a temporary crusher at surface operated by
a contractor until the production shaft is operational. Once the
shaft is operating, the material will be crushed underground prior
to hoisting. A gravity circuit followed by leaching will recover
coarse gold from the cyclone underflow, while the cyclone overflow
is treated in one pre-leach tank and in a seven-tank carbon
in-leach circuit, followed by SO2/Air cyanide destruction. Gold
will be recovered in an adsorption-desorption-recovery Zedra
process circuit and electrowinning cells with gold room recovery
and production of gold bars, which will be shipped to mint
facilities for purification.
The SO2/Air circuit is followed by a tailings
flotation circuit with sulphide concentrate to produce paste
backfill to send underground and/or dry for tailings storage.
The process plant building will include a
laboratory, mill maintenance workshop, offices and a dry.
Figure 4. Process Flow
Sheet
Surface Infrastructure
The Project is approximately 75 kilometres from
the town of Matagami in Quebec and is accessible via a 24-kilometre
forestry road from Hwy. 810. The existing Fenelon camp site
includes a welcome center, 155-room dormitories, dry, kitchen,
dining room, game room, workshop and first nation cultural
center.
The existing mine site includes core shack,
modular offices, garage, water treatment plant, air
ventilation-heating system to serve underground opening, an open
pit and a portal connecting to an underground ramp. The camp and
mine site are served by diesel generators for electricity
production. All these facilities will be used at the start of the
Project, and will be upgraded, expanded or replaced during
construction and operations.
The mining and processing infrastructure will be
located at the Fenelon site. The mine envisions the upgrade of
existing surface infrastructure: site access road, potable water
and sewage systems, underground mine portal, mine ventilation
systems (intake and exhaust), main and remote gatehouses, surface
maintenance shop, waste rock stockpile, overburden stockpile, and
mineralized material stockpile. The Project will require
construction of the following infrastructure items: 7,000 tpd
process plant complex, paste plant, offices, dry, truck shop and
warehouse; 20 kilometres of 120 kV overhead transmission line; 120
kV main substation; final effluent water treatment plant; surface
water management facility, including ditches, pond and pumping
stations; service and haulage roads; and tailings management
facility.
The camp site will be expanded to 370 rooms with
associated kitchen, dining room and game-exercise room. A local
office with 25 places is planned in a nearby town to support
administration, communication, human resources and technical
personnel.
Figure 5. Fenelon Location Map
Figure 6. Mine Site
Production Shaft and Underground
Infrastructure
The construction of the shaft is planned to
start in Year 2 of production and be fully operational prior to
Year 5 of production.
The surface infrastructure for the production
shaft consists of a steel headframe with backlegs, a hoist room
building, a silo and a conveyor feeding the process plant dome
stockpile. The shaft is dedicated for material handling only. The
skip will be raised to the surface in a dedicated rope guided shaft
by a double drum hoist located on the surface in a 1,040 metre deep
shaft.
The construction of the following infrastructure
is envisioned for the underground material handling complex: a
grizzly on top of a 4-metre diameter by 25-metre high silo for the
mineralized material. The same is planned for the waste rock. Both
would be equipped with a rock breaker. The mineralized material
from the silo will go through a crushing plant equipped with a jaw
crusher and sacrificial conveyor. The crushed mineralized material
will then be accumulated in a 6.1-metre diameter by 25-metre high
silo. A loading station with an apron fed conveyor from the waste
and crushed mineralized material silos will bring the material to
measuring boxes to be loaded into the 18-tonne skip and hoisted to
the surface.
Tailings Management and Paste
Plant
The desulfurized thickened tailings from the
mill operations will be managed with two approaches: used as
underground paste backfill or disposed on surface as high-density
thickened tailings. From the tailing thickener underflow will be
pumped either to the paste backfill plant or to the tailings
management facility (“TMF”).
The selected site is located 1.4 kilometres
northwest of the existing small pit.
The waste rock proposed for construction coming
from underground development, may be metal leaching. As a
mitigation measure, an impervious geomembrane will be installed to
encapsulate the waste rock. A geomembrane is also considered on the
bottom of the emergency cell.
At the paste backfill plant, thickened sulphide
tailings are stored in a large, agitated tank which is sized to
provide several days of storage at peak sulphide production from
the mill. When the paste backfill plant is running, tailings from
the filter feed tank are fed to a single vacuum disc filter for
dewatering. The vacuum filter cake feeds the paste mixer. The
thickened sulphide tailings are also pumped into the paste mixer
during backfill production for inclusion in the paste recipe. This
is the primary means of sulphide tailings disposal – underground in
the paste backfill. The other streams reporting into the paste
mixer to achieve the target recipe are binder (a slag cement
mixture) and slump water if required to further control the paste
density. The paste backfill will be distributed throughout the mine
using either a single paste pump or gravity depending on the
location of the stope.
Water treatment
All contact water, including groundwater,
surface runoff and water from the TMF shall be collected and
treated at the water treatment plant before being discharged to the
environment.
Environment and Permitting
In Northern Quebec (James Bay region located
south of the 55th parallel), all mining developments must follow
the environmental assessment (“EA”) and review
procedures under the Regulation respecting the environmental and
social impact assessment (“ESIA”) and review
procedure applicable to the territory of James Bay and Northern
Québec. Additionally, with a planned production capacity of 7,000
tpd, the mining project exceeds the 5,000 tpd threshold for the
federal environmental assessment procedure, therefore an EA in
compliance with the requirements of the new Impact Assessment Act
(S.C. 2019, c. 28, s. 1) will be required.
The acquisition of baseline environmental
knowledge on the Fenelon property began several years ago and is
still ongoing today. To date, preliminary environmental
characterizations of the physical environment and biological
environment have been carried out and/or are ongoing. Confirmation
of the regulatory context made it possible to identify the scope of
the environmental studies required to obtain environmental
authorizations. Inventory work is underway to fill these gaps.
To date, no major environmental issues have been
identified in the work undertaken. The situation of the woodland
caribou, designated as vulnerable in Quebec and threatened at the
federal level, remains uncertain to date in the Project area with
regard to future legal protection of its habitat.
A preliminary geochemical characterization
program has been in progress since 2020 to identify the
geo-environmental characteristics of ore and mine wastes and
classify their environmental risk (e.g., for acid rock drainage and
metal leaching) based on Québec provincial guidance documents.
Findings from the geochemical study have been incorporated into the
Project design.
Closure
A closure and rehabilitation plan for the land
affected by the Project will be prepared and submitted for
authorization. The preliminary concept for site closure is
estimated at $10.5 million. The current financial deposit for site
closure is estimated at $2.9 million for a net closure cost of $7.6
million.
Stakeholder Engagement
The Project is located in the Nord-du-Québec
region, within the James Bay and Northern Qué bec Agreement
territory on Category III lands, managed by the Eeyou Istchee James
Bay Regional Government, with exclusive trapping rights for the
Crees. The Project site is located on lands that are part of the
traditional territories claimed by the Cree people of Waskaganish
and Washaw Sibi, and by the Algonquin people of Abitibiwinni
(Pikogan). The Project is located on a Washaw Sibi trapline.
Wallbridge has always prioritized engaging
stakeholders and implementing a consultation plan. Over 130
communication activities have been conducted since acquisition,
including meetings, site visits, and workshops. The First Nation
communities of Washaw Sibi, Waskaganish and Abitibiwinni (Pikogan)
have been extensively consulted. Concerns raised include
employment, entrepreneurial opportunities, training, land use and
disturbance, water quality, impacts to wildlife, and the cumulative
effects of all projects in the area. To date, Wallbridge has taken
actions to address these concerns and promote local benefits,
including a hiring and contracting policy and the construction of a
Cultural Centre. Furthermore, Wallbridge signed a Pre-Development
Agreement with the Cree Nations of Waskaganish and Washaw Sibi and
the Cree Nation Government in 2022. Wallbridge is committed to
continuing consultations with First Nations, local communities, and
stakeholders through the EA process.
Workforce
During production, the average number of
employees and contractors will be 535 with a maximum at 670. The
working schedule for hourly workers is based on 7 days at site (10
or 12 hours per day) and 7 days off site. The working schedule for
staff is based on 5 days at site and 2 days off. The maximum
employees and contractor on site will reach 340.
During the pre-production period, the average
number of employees, contractor and construction workers will be
490 with a peak of 690 during the second half of pre-production
Year 2.
Next Steps
The positive results of the PEA study warrants
advancing the Project to the next study stages. In order to advance
the Project to pre-feasibility study level, the following programs
are required:
- Infill diamond drilling to convert inferred resources to
indicated resources.
- Metallurgical study including more variability testing.
- Detailed characterization and testing of thickened tailing and
paste.
- Detailed geochemical characterization of waste and ore
rock.
- Detailed characterization of rock mass and stope design.
- Detailed geotechnical investigation at various infrastructure
sites.
- Detailed hydrogeology studies to better characterize major
structures.
- Revised underground mine planning and scheduling based on
revised MRE.
- Trade-off studies on material handling system, stope backfill,
and electric equipment.
- Detailed unit cost evaluation for development and mining.
Independence and
Responsibilities
The PEA was prepared for Wallbridge Mining by
independent consulting firms with their respective responsibilities
listed in Table 7. The Qualified Persons (“QP”)
are not aware of any environmental, permitting, legal, title,
taxation, socio-economic, marketing, political, or other relevant
factors that could materially affect the PEA. Each QP has reviewed
and approved the content of this press release.
All scientific and technical data contained in
this presentation has been reviewed and approved by Francois
Chabot, Eng., Wallbridge’s Manager of Technical Services, a QP for
the purposes of NI 43-101.
The Company cautions that the results of the PEA
are preliminary in nature and include inferred mineral resources
that are considered too speculative geologically to have economic
considerations applied to them to be classified as mineral
reserves. There is no certainty that the results of the PEA will be
realized.
Table 7: Consulting Firm, Area of
Responsibility and Qualified Person
Consulting Firms |
Area of Responsibility |
Qualified Person1 |
|
InnovExplo Inc. |
|
- Carl Pelletier, P.Geo.,
- Vincent Nadeau-Benoit, P.Geo.,
- Simon Boudreau, P.Eng.,
- Marc R, Beauvais, P.Eng.
|
InnovExplo Inc. |
- Mine design and scheduling, mine
capital, and operating costs; G&A cost estimates and financial
analysis
|
|
G-Mining Services |
- Metallurgy, processing plant design,
capital, and operating cost estimates.
|
|
BBA Inc. |
- Tailings management site design,
capital, and operating costs; and reclamation costs.
|
- Luciano Piciacchia, P.Eng.,
Ph.D.
- Mélanie Turgeon, P.Eng.
|
WSP |
- Infrastructure & material
handling, and capital cost estimate.
- Rock mass classification, and stope
design.
- Environment
|
- Jonathan Cloutier, P.Eng
- André Harvey, Eng.
- Nathalie Fortin, P.Eng., M.Env.
|
Responsible Mining Solutions Corp. |
- Paste plant design, capital, and
operating costs.
|
- Roberge, Jean-Louis, Eng.
|
ASDR Canada Inc. |
- Water treatment plant design,
capital, and operating costs.
- UG dewatering design, capital, and
operating costs.
|
- Dan Chen, P. Eng.
- Martin Lessard, Eng.
|
Hydro-Ressources Inc. |
- Mine hydrogeology and site
hydrology.
|
- Michael Verreault, Eng.,
M.Sc.A.
|
The QPs mentioned above have reviewed and
approved their respective technical information contained in this
press release.
The reader is advised that the PEA summarized in
this press release is intended to provide only an initial,
high-level review of the project potential and design options. The
PEA mine plan and economic model include numerous assumptions and
the use of inferred mineral resources. Inferred mineral resources
are considered to be too speculative to be used in an economic
analysis except as allowed for by NI 43-101 in PEA studies. There
is no guarantee that inferred mineral resources can be converted to
indicated or measured mineral resources, and as such, there is no
guarantee the project economics described herein will be
achieved.
A NI 43-101 technical report supporting the PEA
will be filed on SEDAR within 45 days of this press release and
will be available at that time on the Company’s website.
Webcast
Wallbridge management will host a webinar to discuss the Fenelon
PEA results.
Date and Time: Tomorrow, Tuesday, June
27th, 2023, starting at 10:00
a.m. EDT
Registration: To participate in the webinar,
please register
here: https://us06web.zoom.us/webinar/register/WN_UERQ0nCNSLq2WSQPQJQm9w
A presentation that summarizes the PEA results
of the Project is available on the Company’s website.
About Wallbridge Mining
Wallbridge is focused on creating value through
the exploration and sustainable development of gold projects along
the Detour-Fenelon Gold Trend while respecting the environment and
communities where it operates.
Wallbridge’s flagship project, Fenelon Gold
(“Fenelon”), is located on the highly prospective
Detour-Fenelon Gold Trend Property in Québec’s Northern Abitibi
region. An updated mineral resource estimate completed in January
2023 yielded significantly improved grades and additional ounces at
the 100%-owned Fenelon and Martiniere projects, incorporating a
combined 3.05 million ounces of indicated gold resources and 2.35
million ounces of inferred gold resources. Fenelon and Martiniere
are located within an 830 km2 exploration land package controlled
by Wallbridge. In addition, Wallbridge believes that the extensive
land package is extremely prospective for the discovery of
additional gold deposits.
Wallbridge also holds a 19.9% interest in the
common shares of Archer Exploration Corp.
(“Archer”) as a result of the sale of the
Company’s portfolio of nickel assets in Ontario and Québec in
November of 2022.
Wallbridge will continue to focus on its core
Detour-Fenelon Gold Trend Property while enabling shareholders to
participate in the potential economic upside in Archer.
For further information please visit the
Company’s website at www.wallbridgemining.com or contact:
Wallbridge Mining Company
Limited
Marz Kord, P. Eng., M. Sc., MBAPresident &
CEOTel: (705) 682‒9297 ext. 251Email:
mkord@wallbridgemining.com
Victoria Vargas, B.Sc. (Hon.) Economics,
MBACapital Markets Advisor
Email: vvargas@wallbridgemining.com
Cautionary Note Regarding
Forward-Looking Information
This press release contains forward-looking
statements or information (collectively, “FLI”)
within the meaning of applicable Canadian securities legislation.
FLI is based on expectations, estimates, projections, and
interpretations as at the date of this press release.
All statements, other than statements of
historical fact, included herein are FLI that involve various
risks, assumptions, estimates and uncertainties. Generally, FLI can
be identified by the use of statements that include words such as
“seeks”, “believes”, “anticipates”, “plans”, “continues”, “budget”,
“scheduled”, “estimates”, “expects”, “forecasts”, “intends”,
“projects”, “predicts”, “proposes”, "potential", “targets” and
variations of such words and phrases, or by statements that certain
actions, events or results “may”, “will”, “could”, “would”,
“should” or “might”, “be taken”, “occur” or “be achieved.”
FLI herein includes, but is not limited to,
statements regarding the results of the Fenelon
PEA, including the production, operating cost,
capital cost and cash cost estimates, the projected valuation
metrics and rates of return, and the cash flow projections, as well
as the anticipated permitting requirements and Project design,
including processing and tailings facilities, infrastructure
developments, metal recoveries, mine life and production rates for
the Project, the potential to further enhance the economics of the
Project and optimize the design, potential timelines for obtaining
the required permits and financing. Forward-looking information is
not, and cannot be, a guarantee of future results or events.
FLI is designed to help you understand
management’s current views of its near- and longer-term prospects,
and it may not be appropriate for other purposes. FLI by their
nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance, or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such FLI. Although the FLI
contained in this press release is based upon what management
believes, or believed at the time, to be reasonable assumptions,
the Company cannot assure shareholders and prospective purchasers
of securities of the Company that actual results will be consistent
with such FLI, as there may be other factors that cause results not
to be as anticipated, estimated or intended, and neither the
Company nor any other person assumes responsibility for the
accuracy and completeness of any such FLI. Except as required by
law, the Company does not undertake, and assumes no obligation, to
update or revise any such FLI contained herein to reflect new
events or circumstances, except as may be required by law. Unless
otherwise noted, this press release has been prepared based on
information available as of the date of this press release.
Accordingly, you should not place undue reliance on the FLI or
information contained herein.
Assumptions upon which FLI is based, without
limitation, include the results of exploration activities, the
Company’s financial position and general economic conditions; the
ability of exploration activities to accurately predict
mineralization; the accuracy of geological modelling; the ability
of the Company to complete further exploration activities;
potential changes in project parameters or economic assessments;
the legitimacy of title and property interests in the Project; the
accuracy of key assumptions, parameters or methods used to estimate
the MREs and in the PEA; the ability of the Company to obtain
required approvals; geological, mining and exploration technical
problems; failure of equipment or processes to operate as
anticipated; the evolution of the global economic climate; metal
prices; foreign exchange rates; environmental expectations;
community and non-governmental actions; any impacts of COVID-19 on
the Project; and, the Company’s ability to secure required funding.
Risks and uncertainties about Wallbridge's business are more fully
discussed in the disclosure materials filed with the securities
regulatory authorities in Canada, which are available at
www.sedar.com. Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in FLI.
Non-IFRS Financial Measures
Wallbridge has included certain non-IFRS
financial measures in this press release, such as initial capital
expenditures, sustaining capital expenditures, total cash costs and
all in sustaining costs, which are not measures recognized under
IFRS and do not have a standardized meaning prescribed by IFRS. As
a result, these measures may not be comparable to similar measures
reported by other companies. Each of these measures used are
intended to provide additional information to the user and should
not be considered in isolation or as a substitute for measures
prepared in accordance with IFRS. Non-IFRS financial measures used
in this press release and common to the gold mining industry are
defined below.
Total Cash Costs and Total Cash Costs
per Ounce
Total cash costs are reflective of the cost of
production. Total cash costs reported in the PEA include mining
costs, processing, general and administrative costs of the mine,
off-site costs, refining costs, transportation costs and royalties.
Total cash costs per ounce is calculated as total cash costs
divided by payable gold ounces.
All-In Sustaining Costs and All-In
Sustaining Costs per Ounce
All-in sustaining costs and all-in sustaining
costs per ounce are reflective of all of the expenditures that are
required to produce an ounce of gold from operations. All-in
sustaining costs reported in the PEA include total cash costs,
sustaining capital, closure costs, but exclude corporate general
and administrative costs. All-in sustaining costs per ounce is
calculated as all-in sustaining costs divided by payable gold
ounces.
A description of the significant cost components
that make up the forward looking non-IFRS financial measures of
total cash costs and all in sustaining costs per ounce of payable
gold produced is shown in the table below.
|
Payable Ounces |
LOM Costs(millions) |
US$ Per Ounce |
Cash Operating Costs |
2,606,384 |
2,299,4 |
679 |
Royalties |
|
237.2 |
70 |
Total Cash Costs |
|
2,536.6 |
749 |
Sustaining Capital Expenditures and Closure |
|
594.4 |
175 |
All in Sustaining Costs |
|
3,131.0 |
924 |
Cautionary Note to United States
Investors
Wallbridge Mining prepares its disclosure in
accordance with the requirements of securities laws in effect in
Canada, which differ from the requirements of U.S. securities laws.
Terms relating to mineral resources in this press release are
defined in accordance with NI 43-101 under the guidelines set out
in CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the Canadian Institute of Mining, Metallurgy
and Petroleum Council on May 19, 2014, as amended ("CIM
Standards"). The U.S. Securities and Exchange Commission
(the "SEC") has adopted amendments effective
February 25, 2019 (the "SEC Modernization Rules")
to its disclosure rules to modernize the mineral property
disclosure requirements for issuers whose securities are registered
with the SEC under the U.S. Securities Exchange Act of 1934. As a
result of the adoption of the SEC Modernization Rules, the SEC will
now recognize estimates of "measured mineral resources", "indicated
mineral resources" and "inferred mineral resources", which are
defined in substantially similar terms to the corresponding CIM
Standards. In addition, the SEC has amended its definitions of
"proven mineral reserves" and "probable mineral reserves" to be
substantially similar to the corresponding CIM Standards.
U.S. investors are cautioned that while the
foregoing terms are "substantially similar" to corresponding
definitions under the CIM Standards, there are differences in the
definitions under the SEC Modernization Rules and the CIM
Standards. Accordingly, there is no assurance any mineral resources
that Wallbridge Mining may report as "measured mineral resources",
"indicated mineral resources" and "inferred mineral resources"
under NI 43-101 would be the same had Wallbridge Mining prepared
the resource estimates under the standards adopted under the SEC
Modernization Rules. In accordance with Canadian securities laws,
estimates of "inferred mineral resources" cannot form the basis of
feasibility or other economic studies, except in limited
circumstances were permitted under NI 43-101.
Photos accompanying this announcement are available
at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/8ed2c0ec-91e2-43a1-a62a-92bdcd005daf
https://www.globenewswire.com/NewsRoom/AttachmentNg/53e9a456-8119-4229-9494-754152602298
https://www.globenewswire.com/NewsRoom/AttachmentNg/713ffca7-06c4-44c9-9ece-f2eabc501587
https://www.globenewswire.com/NewsRoom/AttachmentNg/6b4d27cd-d2fa-4475-bec9-4d4e03a7234f
https://www.globenewswire.com/NewsRoom/AttachmentNg/cdb97e83-07b5-4ea8-96e6-b90ac37d88c9
https://www.globenewswire.com/NewsRoom/AttachmentNg/0395338c-b876-40c5-8d6c-786f7bdd395d
https://www.globenewswire.com/NewsRoom/AttachmentNg/2ac89b5f-7dc6-4f15-b4c7-25c65d585da4
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