VANCOUVER, British Columbia, Aug. 11, 2017 (GLOBE NEWSWIRE) -- Trek Mining Inc. (TSX-V:TREK) (“Trek Mining” or the “Company”) has filed a National Instrument 43-101 Technical Report regarding the feasibility study and mineral reserve estimate for its 100% owned Aurizona Gold Mine (“Aurizona”) located in northeastern Brazil, the results of which were announced on July 31, 2017.
The technical report is available for download on SEDAR at www.sedar.com and on Trek Mining’s website at www.trekmining.com.
About the Aurizona Gold Mine
The Aurizona feasibility study is based on a new mine plan and updated mineral reserve estimate and outlines the design of an open-pit gold mine producing on average approximately 136,000 ounces of gold per year, with an initial 6.5-year mine life and significant exploration upside, as demonstrated with recent drill results. Initial capital to fund construction and commissioning is estimated at US$130.8 million due to the Company’s ability to leverage significant existing infrastructure in place at the brownfields mine site. Life-of-mine sustaining capital is estimated at US$51.3 million, including closure costs. All-in-sustaining costs are estimated at US$754 per ounce over the life of mine, which is in the lowest quartile of the industry average. Aurizona demonstrates strong returns in the current gold price environment, with an after-tax internal rate of return of 34% and an after-tax net present value using a 5% discount rate of US$197.1 million using a base case gold price of US$1,250 per ounce. First gold pour at Aurizona is targeted for year-end 2018.
About Trek Mining Inc.
Trek Mining is a Canadian mining company with a portfolio of production, near-production and exploration-stage projects in North and South America. The Company is producing gold from its Koricancha Mill, a custom-built gold and silver ore processing facility in Peru, and expects to commence construction in the second half of 2017 at its past-producing Aurizona Gold Mine in Brazil with the objective of pouring gold at Aurizona by the end of 2018. Trek Mining’s exploration properties include both near-mine and district exploration opportunities at Aurizona; the Warintza porphyry copper-molybdenum exploration project in Southeastern Ecuador; the Ricardo porphyry copper-molybdenum exploration project in Chile; and Elk Gold, a past-producing high-grade gold mine in British Columbia, Canada. Further information about Trek Mining’s business strategy and portfolio of assets is available at www.trekmining.com or by email at ir@trekmining.com.
On Behalf of the Board of Trek Mining Inc.
“Christian Milau”
CEO & Director
Trek Mining Contacts
Christian Milau, Chief Executive Officer
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
Email: ir@trekmining.com
Cautionary Notes
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will”, “expects”, “estimated”, “objective” and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this press release include statements regarding planned exploration activities and results at Aurizona; planned development activities and commencement of construction at Aurizona; the anticipated restart of production at Aurizona; the anticipated capital costs, sustaining costs, all-in-sustaining costs per ounce, net present value, and internal rate of return for Aurizona; and production rates at Aurizona. Although Trek Mining believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Trek Mining can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in Trek Mining’s periodic filings with Canadian securities regulators, and assumptions made with regard to: the anticipated Board of Directors decision to approve construction of Aurizona; the ability to raise the capital required to fund construction and development of Aurizona; the ability to restart production at Aurizona; timing of the anticipated restart of production; and the Company’s ability to achieve the results outlined in the feasibility study. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Trek Mining does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.