Benton Resources Inc.
TSX VENTURE : BEX

Benton Resources Inc.

July 21, 2016 09:00 ET

Benton Partner Nordmin to Drill 5000m at Cape Ray Gold Zones

THUNDER BAY, ONTARIO--(Marketwired - July 21, 2016) - Benton Resources Inc. (TSX VENTURE:BEX) ("Benton" or "the Company") and its joint venture partner Nordmin Engineering Ltd. ("Nordmin"), are pleased to announce that they will be initiating a 5000 metre diamond drill program commencing in early to mid-August. The drilling is designed to infill and expand the 51 and 41 deposits to potentially increase and provide better confidence in the current resources in preparation for feasibility studies. In addition, Nordmin has notified Benton that it has submitted the project environmental description and registration report to the government of Newfoundland and Labrador Environment and Conservation Environmental Assessment Division located in St. John's for review. Earlier this year (see PR March 07, 2016) Benton and Nordmin released the results of a positive preliminary economic assessment ("PEA") for their Cape Ray gold project, located approximately 20km northeast of Port aux Basque, Newfoundland. The results of the PEA include a pre-tax net present value ("NPV") at a 7% discount rate of $48.4 million with a pre-tax internal rate of return ("IRR") of 29% and a post-tax NPV at a 7% discount rate of $32.6 million with a post-tax IRR of 24%.

The PEA is based on the mineral resource estimate completed by Sibley Basin Group Ltd. in the National Instrument 43-101 report dated April 29, 2015 entitled "Mineral Resource Estimate Technical Report For The Cape Ray Property,04,41,51 and Windowglass Hill Deposits, Isle aux Morts Area, Newfoundland and Labrador, Canada".

Highlights from the PEA, with the base-case gold price of $1,200 (U.S.) per ounce and an exchange rate of $1.25CDN/USD, are as follows (all figures in Canadian dollars unless otherwise stated):

  • Pre-production Capital is $47.3 million with a contingency of $4.7 million included within the initial Capital. Pre-production is for a 2 year period.
  • Sustaining Capital of $33.7 million for the Life of Mine ("LOM").
  • Pre-tax NPV(7%) of $48.4 million and internal rate of return of 29%.
  • Post-tax NPV(7%) of $32.6 million and internal rate of return of 24%.
  • Pre-tax Net Revenue of $88.4 million over 6 year LOM.
  • Post-tax Net Revenue of $63.4 million over 6 year LOM.
  • Positive Cash-flow is realized in year 3.
  • 1,700,000 tonnes of mill feed averaging a combined 4.6 g/t gold and 4.8 g/t silver.
  • Mill operates at average tonnage of 851 tonnes per day.
  • Total production of 250,000 ounces of gold and 260,000 ounces of silver.
  • Gold recovery of 97% and Silver recovery 45%.

The reader should be cautioned that the PEA is preliminary in nature. It contains inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The current drill campaign will help bring some of the inferred resources into indicated which will help with the confidence level of the project as it moves towards the feasibility stage.

About Benton Resources Inc. (TSX VENTURE:BEX)

Benton Resources Inc is a well-funded Canadian-based junior with a diversified property portfolio in Gold-Silver, Nickel, Copper, and Platinum group elements.

Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is the qualified person responsible for this release.

On behalf of the Board of Directors of Benton Resources Inc.,

Stephen Stares, President

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."

Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.

Contact Information