SOURCE: NMC Resource Corporation

NMC Resource Corporation

November 17, 2014 18:54 ET

NMC Resource (TSX VENTURE: NRC) Announces Financial Results for the Nine Months Ended September 30, 2014, and Assay Results From Drill Holes BOSS-14-03 to BOSS-14-06

VANCOUVER, BC--(Marketwired - November 17, 2014) - NMC Resource Corporation (TSX VENTURE: NRC) ("NMC Resource" or the "Company") released its unaudited condensed consolidated financial statements for the nine months ended September 30, 2014.

 
 
* Selected Information (Expressed in Canadian Dollars unless otherwise stated)
     Nine Months Ended September 30      2014      2013
   
Revenue 9,079,120 6,808,837
   
Net Loss 481,736 1,193,261
   
Weighted average number of common shares outstanding 27,566,667 shares 27,566,667 shares
   
EBITDA at NMC Moland Mine ("Moland") 2,521,446 1,482,816
   
Adjusted EBITDA1 2,430,821 1,299,468
   
Molybdenum sold 752,327 lbs 695,776 lbs
   
Realized molybdenum average price per pound US$ 10.93 US$ 9.53
   
Ore mined 236,923 218,740
   
Produced molybdenum concentrate 649 T (721 wet T) 601 T (667 wet T)
   
Mill head grade 0.28% 0.29%
   
Recovery 90.5% 91.5%
   
   

During the nine months ended September 30, 2014, NMC Resource improved production by 8% and sales by 33% year- on-year. The EBITDA at Moland increased by 70%. All-in cash cost2 for this period was US$7.80 per pound of molybdenum sold. In Q3, the molybdenum price began to decline and in October, it mostly traded below US$10 per pound. The Company is actively implementing a mine plan to be prepared for soft molybdenum prices. At Moland, testing to produce lubricant grade molybdenum concentrate is ongoing.

Assay Results from BOSS-14-03 to BOSS-14-06:
Continued Confirmation and Extension of Mineralization at the Boss Mountain Project ("Boss Mountain")

NMC Resource is pleased to report the results from an additional four holes from the Boss Mountain project located near 100 Mile House B.C. Assay results from the remaining 5 holes are currently pending, and will continue to be reported once received.

Hole BOSS-14-03, the third hole of the 2014 program, returned 0.14% Mo (0.23% MoS2) over 46.75m and up to 3.66 g/t Re over 0.75m. Hole BOSS-14-03 was successful in extending the depth of mineralization mined in Pit 3 prior to intersecting a chlorite-clay altered porphyry unit at a depth of 135.30m. This unit may represent an important feeder system for the observed mineralization at Boss Mountain and therefore, further drilling in this unit is warranted to establish any relationship it may have with the molybdenum mineralization at Boss Mountain.

BOSS-14-04 returned 0.07% Mo (0.11% MoS2) over 59.05m. This hole confirmed the presence of the previously reported mineralization, and it also extended the known mineralization further at depth.

BOSS-14-05, located between pits 2 and 3, was successful in its objective of extending the known area of mineralization, returning 0.05% Mo (0.08MoS2) over 198.80m. Mineralization in this hole was successfully extended 128 meters deeper than the previously tested depth.

BOSS-14-06, an angled hole which was designed to test the extent of the high grade mineralization located to the south of the Open Stope, and the deeper mineralization located between pits 1 and 2 successfully returned 0.082% Mo (0.14 MoS2) over 259.00m. This hole confirmed previously reported mineralization and was successful in locating additional high grade mineralization between pits 1 and 2. Additionally, hole BOSS-14-06 intersected up to 1.29 g/t Re, and continued to support the emerging correlation between Mo and Re.

Rhenium is among the rarest metals on earth, used mainly in the aerospace industry as an alloying agent and in chemical industry as a catalyst, as it is historically known to have a propensity to be associated with molybdenite mineralization.

Results from BOSS-14-03 to BOSS-14-06 are reported below:

 
 
Table 1. BOSS-14-03 significant results
 
Hole
Number
  From
(m)
To (m)
Total
Length
(m)

Mo (%)
MoS2
(%)
Re (g/t)
BOSS-14-03   77.25 124.00 46.75 0.14 0.23  
Including            
" 77.25 78.25 1.00 0.649 1.083 0.57
" 81.75 82.75 1.00 0.155 0.259 -
" 82.75 83.75 1.00 0.395 0.659 0.347
" 95.25 96.25 1.00 0.184 0.307 -
" 103.75 104.50 0.75 0.434 0.724 0.545
" 108.50 109.50 1.00 0.103 0.172 -
" 112.00 112.75 0.75 3.33 5.555 3.66
" 116.75 117.75 1.00 0.139 0.232 -
" 120.60 121.60 1.00 0.216 0.360 0.237
"123.00124.001.000.2840.4740.278
        
        

 
 
Table 2. BOSS-14-04 Significant Results
 

Hole
Number
 
From
(m)


To (m)
Total
Length
(m)

Mo (%)
MoS2
(%)

Re (g/t)
BOSS-14-04   19.4 28.25 8.85 0.089 0.15 -
  39.15 98.20 59.05 0.067 0.11 -
  120.6 128.00 7.40 0.047 0.08 -
  134.70 158.35 23.65 0.061 0.10 -
  173.8 192.70 18.90 0.080 0.13 -
Including            
" 48.60 49.20 0.60 0.387 0.646 -
" 56.50 57.50 1.00 0.364 0.607 -
" 76.30 77.00 0.70 0.383 0.639 -
" 48.60 49.20 0.60 0.387 0.646 -
" 84.65 85.25 0.60 0.617 1.029 0.476
" 85.80 86.80 1.00 0.219 0.365 -
" 88.80 89.40 0.60 0.204 0.340 -
" 92.50 93.40 0.90 0.305 0.509 -
" 147.95 148.85 0.90 0.208 0.347 -
" 173.80 174.60 0.80 0.283 0.472 -
" 181.25 182.00 0.75 0.214 0.357 -
" 185.50 186.00 0.50 0.208 0.347 -
" 190.80 191.70 0.90 0.209 0.349 -
        
        
 
 
Table 3. BOSS-14-05 significant Results
 
Hole
Number
  From
(m)

To (m)
Total
Length
(m)

Mo (%)

MoS2 (%)

Re (g/t)
BOSS-14-05  38.20 237.00 198.80 0.048 0.080 -
Including38.20 45.70 7.50 0.094 0.157 -
"52.50 69.60 17.10 0.069 0.115 -
"77.60 92.75 15.15 0.068 0.113 -
"116.40 140.60 24.20 0.064 0.107 -
"151.30 162.60 11.30 0.082 0.137 -
"203.10 237.00 33.90 0.048 0.080 -
Including           
"43.80 44.70 0.90 0.210 0.350 -
"44.70 45.70 1.00 0.219 0.365 -
"56.90 57.60 0.70 0.218 0.364 -
"58.30 59.30 1.00 0.221 0.369 -
"89.90 90.60 0.70 0.206 0.344 -
"90.60 91.35 0.75 0.196 0.327 -
"91.35 92.15 0.80 0.192 0.320 -
"92.15 92.75 0.60 0.193 0.322 -
"135.00 135.50 0.50 0.475 0.792 -
"135.50 136.50 1.00 0.478 0.797 -
"151.30 152.00 0.70 0.588 0.981 0.56
"155.00 156.00 1.00 0.186 0.310 -
"156.00 157.00 1.00 0.193 0.322 -
"177.00 178.00 1.00 0.150 0.250 -
"184.65 185.30 0.65 0.176 0.294 -
"210.00 210.50 0.50 0.316 0.527 -
"231.00 231.70 0.70 0.122 0.204 -
"236.00 237.00 1.00 0.215 0.359 -
        
        
 
 
Table 4. BOSS-14-06 significant Results
 
Hole
Number
 From
(m)

To (m)
Total
Length
(m)

Mo (%)

MoS2 (%)

Re (g/t)
BOSS-14-06 3.00262.00259.000.0820.137 
Including3.00 32.00 29.00 0.120 0.200  
"74.00 120.00 46.00 0.140 0.234  
"128.00 134.75 6.75 0.097 0.162  
"160.00 183.20 23.50 0.066 0.110  
"194.50 219.00 24.50 0.077 0.128  
"236.75 243.75 7.00 0.140 0.234  
Including           
"4.00 5.00 1.00 0.2160 0.360 0.29
"5.00 6.00 1.00 0.3800 0.634 0.57
"6.00 7.00 1.00 0.3850 0.642 0.51
"7.00 8.00 1.00 0.3740 0.624 0.48
"74.00 75.00 1.00 0.2130 0.355 0.17
"76.00 77.00 1.00 0.2030 0.339 0.17
"80.75 81.75 1.00 0.3130 0.522 0.25
"81.75 82.75 1.00 0.2690 0.449 0.16
"83.74 84.75 1.01 0.2280 0.380 0.14
"85.75 87.00 1.25 0.2200 0.367 0.10
"102.00 103.00 1.00 0.2030 0.339 0.12
"160.00 161.00 1.00 0.2680 0.447 0.36
"166.90 168.00 1.10 0.2890 0.482 0.25
"203.00 204.00 1.00 0.2440 0.407 0.22
"211.50 212.00 0.50 0.9630 1.606 1.29
"237.75 238.75 1.00 0.3880 0.647 0.29
        
        

Width refers to drill hole intercepts. All assays reported are uncut.

Significant mineralization in drill holes BOSS-14-03 to BOSS-14-05 is associated with quartz veins, up to 30cm wide, which contain up to 5% coarse disseminated molybdenite. Typically these veins contain only trace amounts of pyrite and, preliminary results indicate that rhenium mineralization is intimately associated with molybdenum within these vein sets. Hole BOSS-14-06 not only exhibited mineralization within quartz veins, but also formed part of the matrix of the brecciated granodiorite (phase 3 and phase 4 breccia), resulting in more robust and pervasively mineralized zones. The host rock is a variably brecciated granodiorite with localized regions of potassic and argillic alteration within the mineralized zones.

Boss Mountain is located near the historic mining town of Hendrix Lake, approximately 88 km east of 100 Mile House in British Columbia, Canada. Noranda produced 7,430,340 tonnes of ore at 0.217% Mo (0.36% MoS2) intermittently for the period of 1965 - 1983. Surface access roads leading to and across the site remain in excellent condition and provide easy access to the areas where the historic surface mining occurred. These access roads will be instrumental in facilitating expedited any potential restart at the site, should the Company decide to re-start mining operations at Boss Mountain.

The region encompasses the Upper Triassic- Lower Jurassic Takomkane Batholith, which is host to the mineralization. Similar to Guichon Batholith which hosts the extensive Highland Valley deposit, the Takomkane Batholith intrudes Upper Triassic and older Nicola volcanics and other sedimentary rocks. The Cretaceous quartz monzonite intrudes the older rocks and flanks the Takomkane Batholith to the East. Eight stages of oscillatory magmatic activity have been recognized at the Boss Mountain deposit, three of which resulted in the emplacement of the substantial molybdenum mineralization. Mineralization on site occurs as both high grade molybdenum bearing quartz veins, and as disseminated grains in the matrix which forms an intensely fractured quartz-andesite breccia.

QA/QC Statement

Drill cores were cut in half using a diamond saw, with one-half place in sealed bags. Core samples were transported via courier to AGAT Laboratories accredited sample preparation facility in Burnaby, BC, and were analyzed with 4-acid digestion and an inductively coupled plasma - optical emission spectroscopy finish by AGAT Laboratories in Mississauga, ON. A sample quality control/ quality assurance program was implemented. The Company maintained a well-structured QA/QC policy during the 2014 exploration program. Blanks and three individual standards were used. Either a blank or a standard was inserted at a minimum of every 10 samples. Replicates are to be sent to a separate laboratory for third party testing. In addition, the geologist had the discretion to insert blanks in mineralized areas to detect any cross contamination during analysis. AGAT Laboratories also prepared their own QA/QC program, systematically inserting standards, blanks, and replicates into sample batches. Results of the 2014 QA/QC program are pending. If any material differences are detected in the evaluation of the resulting data, the Company will make the required disclosure of such material differences.

Technical information of this news release was prepared by Mr. Cameron Norton, P.Geo, and reviewed by Mr. Bruce Durham, P.Geo. Mr. Durham and Mr. Norton are Qualified Persons as defined by NI 43-101.

Please visit www.nmcresource.com for more information.

1. Adjusted EBITDA: Net earnings before interest, taxes, amortization, share-based payment and impairment on a consolidated basis

2. All-in cash cost includes operating expenses, exploration expenses, selling, general & administrative expenses, and sustaining capital expenditure at Moland

3. Mo = Molybdenum, MoS2 = Molydenum Disulfide, Re = Rhenium

4. For a map of the 2014 drilling campaign, please visit the following link. http://www.nmcresource.com/i/pdf/2014%20Boss%20Mountain%20Drilling%20Map.pdf

About NMC Resource Corporation

NMC Resource Corporation (TSX VENTURE: NRC) is a mining company with two molybdenum assets: Moland in South Korea and Boss Mountain in British Columbia, Canada. Moland started commercial production in April 2010 and has been in production with improved production profile every year. Boss Mountain is a past molybdenum producer. The Company has an option agreement on Boss Mountain with Glencore Canada Corporation to earn 100% interest by spending 3 million Canadian dollars among other requirements.

On behalf of the board of

NMC RESOURCE CORPORATION

Per: "Do Hyung Kim"
Do Hyung Kim; President, Chief Executive Officer and Director

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Forward-Looking Statements: This news release includes certain forward-looking information and forward-looking statements (collectively "Forward-Looking Statements") concerning the future performance of the Company's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Specifically, this news release includes Forward-Looking Statements regarding that the Company is actively implementing a mine plan to be prepared for soft molybdenum prices, that these access roads will be instrumental in facilitating expedited any potential restart at the site, should the Company decide to re-start mining operations at Boss Mountain. Forward-Looking Statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-Looking Statements are based on the current opinions and expectations of management. All Forward-Looking Statements are inherently uncertain and subject to a variety of risks and uncertainties, including the speculative nature of mineral exploration and development generally and specifically in respect of the interpretation of the geology, continuity, grade and size of mineral deposits, unanticipated operational or technical difficulties, fluctuating commodity prices, competitive risks and the availability of financing, changes in laws or regulations, changes in the financial markets and changes in general economic conditions, as described in more detail in our recent securities filings available at www.sedar.com. Such Forward-Looking Statements are based on a number of assumptions, including but not limited to the level and volatility of the price of molybdenum, the availability of financing, the accuracy of reserve and resource estimates and the assumptions on which those estimates are based and the ability to achieve and maintain certain operational efficiencies. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual events or results may differ materially from those expressed or implied in the Forward-Looking Statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these Forward-Looking Statements, except as required by applicable law.

Contact Information

  • Suite 1100 - 1111 Melville Street
    Vancouver, BC Canada V6E 3V6
    Tel: (604) 643-1730
    Toll Free: (888) 617-5333
    www.nmcresource.com