NMC Resource Corporation
TSX VENTURE : NRC

NMC Resource Corporation

November 01, 2011 08:00 ET

NMC Resource (TSX VENTURE:NRC) Substantially Increases Mineral Resources at High Grade Producing Moland Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2011) -

HIGHLIGHTS

  • HIGH GRADE INDICATED MOLYBDENITE RESOURCE (0.35% MoS2) AT 0.14% MoS2 CUT-OFF
  • INDICATED CATEGORY (44% OF TOTAL RESOURCE) AT 1,669,000 TONNES OF 0.35% MoS2
  • EXPLORATION DRILLING CONTINUES WHILE THE MINE IS IN OPERATION

NMC Resource Corporation (TSX VENTURE:NRC) ("NMC Resource") is pleased to announce an updated mineral resource estimate for the NMC Moland Mine in South Korea. At a potentially economic cut-off of 0.14% MoS2, total Indicated mineral resources are 1.669 million tonnes grading 0.35% MoS2 and the Inferred mineral resources are approximately 2.094 million tonnes grading 0.32% MoS2, which reflects a considerable increase in tonnage compared to the previous October 2009 mineral resource estimate. The updated mineral resource estimate is based on 88 drillhole records and 1,938 channel samples.

Cut-off (MoS2%) Indicated Inferred
Tonnes (1000 t ) MoS2 (% ) Tonnes (1000 t ) MoS2 (% )
0.14 1,669 0.35 2,094 0.32

Do Hyung Kim, Executive VP and Director states, "We are very pleased to see the mineral resource more than double, even using a 40% higher cut-off grade than the previous resource estimate. KORES (Korea Resource Corporation) continues to sponsor our deep drilling exploration and we will notify the market of results when they are received."

In order to test the sensitivity of the mineral resource estimate to the MoS2 cut-off, mineralized tonnage sensitivity was also tabulated against a range of cut-off grades.

Cut-off (MoS2%) Indicated Inferred
Tonnes (1000 t ) MoS2 (% ) Tonnes (1000 t ) MoS2 (% )
0.25 912 0.49 1,102 0.43
0.24 968 0.48 1,162 0.42
0.23 1,025 0.46 1,227 0.41
0.22 1,083 0.45 1,307 0.40
0.21 1,145 0.44 1,388 0.39
0.20 1,208 0.43 1,485 0.38
0.19 1,276 0.41 1,593 0.37
0.18 1,348 0.40 1,697 0.35
0.17 1,430 0.39 1,794 0.35
0.16 1,507 0.38 1,901 0.34
0.15 1,589 0.37 2,008 0.33
0.14 1,669 0.35 2,094 0.32
0.13 1,746 0.35 2,188 0.31
0.12 1,819 0.34 2,275 0.30
0.11 1,898 0.33 2,363 0.30
0.10 1,977 0.32 2,429 0.29
0.09 2,058 0.31 2,491 0.29
0.08 2,142 0.30 2,565 0.28
0.07 2,226 0.29 2,641 0.27
0.06 2,309 0.28 2,700 0.27

(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

(2) The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resources, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resources category.

(3) Mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

(4) Inverse distance weighting of capped composite grades within grade envelopes was used for estimation.

(5) Composite grade capping of 3.0% was implemented prior to estimation.

(6) A bulk density of 3.34 t/m3 was used for tonnage calculations.

(7) The cut-off grade calculation was based on the following parameters:

  • US$16/lb Molybdenum
  • US$11/t mining cost
  • US$13/t process cost
  • US$1.75/t G&A cost
  • 89% process recovery
  • 59% smelter payable Mo in MoS2
  • US$20/t concentrate shipping
  • 0.3% Mass pull to concentrate

(8) A lower cut-off grade may be used for production when molybdenum price increases or operating costs decrease.

The mineral resource estimate was completed by Fred H. Brown, CPG, Pr.Sci.Nat., who is an independent geological consultant associated with P&E Mining Consultants Inc. ("P&E") and an independent qualified person "QP" as defined by Canadian Securities Regulations in National Instrument 43-101. The primary analytical facility for NMC Moland Mine is ALS Chemex, which is located in North Vancouver, BC, Canada. Further details of the estimation procedure will be available in a NI 43-101 technical report, which will be posted on SEDAR no later than 45 days from the date of this news release.

Check Samples

During a site visit to NMC Moland Mine in September 2011, P&E collected five check samples from drillhole core, and six check samples from on-site pulps. For the eleven samples, two drillhole core samples appear to be from a different drillhole sequence due to a change in drillhole numbering for the NMK series. The remaining assay results for the check samples are in good agreement with the assay values as reported by NMC Resource.

Modeling

A bulk density value of 3.34 t/m3 was used for the mineral resource model, consistent with the bulk density used for the October 2009 mineral resource estimate. The average bulk density of the check samples taken by P&E is 3.46 t/m3. Based on decile analysis of the composite sample population, a capping value of 3.0% MoS2 was implemented on composites prior to estimation. A total of eleven composites were capped. Block grades for MoS2 were estimated using anisotropic inverse distance cubed (ID3) linear weighting of capped composites. Mined out areas as identified by NMC Resource were depleted from the model.

NMC Moland Mine

NMC Moland Mine has been in commercial production since April 2010 and continues to provide NMC Resource with a stable revenue stream. The process plant crushing facility at NMC Moland Mine is located underground, and 100% of the process water is recycled. NMC Moland Mine does not have a tailings pond since all tailings are used in the manufacture of cement.

About NMC Resource Corporation

NMC Resource Corporation (TSX VENTURE:NRC) is a mining company with two molybdenum assets: the NMC Moland Mine in South Korea (a producing molybdenum mine with an increasing production profile and resource base) and Boss Mountain Mine in British Columbia, Canada. NMC Resource's assets are strategically located to supply the growing demand for molybdenum from the Asian markets.

The contents of this press release have been reviewed and approved by Eugene Puritch, P.Eng. and Fred Brown, CPG of P&E. The updated NMC Moland Mine mineral resource report will be filed on SEDAR within 45 days of the issue of this press release.

On behalf of the board of NMC RESOURCE CORPORATION

Yoo Sup Han; President and Director

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 that the updated NMC Moland Mine mineral resource report will be filed on SEDAR within 45 days of the issue of this press release. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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