VANCOUVER, BC--(Marketwired - January 26, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Further to its news releases of November 9 and November 28, 2016, Resource Capital Gold Corp., (TSX VENTURE: RCG) ("RCG" or the "Company") is pleased to announce that it has filed on SEDAR the Preliminary Economic Assessment ("PEA") on the Company's Dufferin Gold Project (Dufferin") located in Nova Scotia, Canada.
The PEA was completed by MineTech International Ltd. of Halifax, Nova Scotia, and Global Mineral Resource Services of Vancouver, British Columbia and conforms to the previously announced resource estimate and economic results, with the production of 216,050 ounces of gold during a 10-year mine life, and a pre-tax IRR of 158%. Dufferin carries in the PEA a pre-tax net present value of CAD$121,100,000 at a 5% discount rate, with an after tax IRR and NPV of 121% and CAD$89,200,000, respectively.
"This positive PEA is a major milestone in the Company's plans to consolidate near-term precious-metals production," said RCG's CEO George Young. "The Dufferin project offers the opportunity for relatively lower-risk growth through our more than doubling of the project's resources, acquisition of adjacent property, and a 4x multiple of the project's NPV over previous analyses. We are very pleased with the PEA results and look forward to quickly advancing the project, as well as the filing of PEA's on our Tangier and Forest Hill projects in early 2017."
The Company previously announced the acquisition of the Tangier project (mineral resource of 41,700 ounces gold in the indicated category (134,000 tonnes grading 9.67 g/t Au), and 131,500 ounces gold in the inferred category (271,000 tonnes grading 15.09 g/t Au)) and the Forest Hill project (mineral resource of 173,800 ounces gold in the indicated category (225,000 tonnes grading 24.02 g/t Au) and 152,900 ounces gold in the inferred category (383,000 tonnes grading 12.42 g/t Au)). When combined with the ounces in the Dufferin PEA, the projects represent total resources of 273,500 ounces in the indicated category and 434,400 ounces in the inferred category. The Company expects to file a PEA on Tangier in February and on Forest Hill in April, 2017.
The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
About Resource Capital Gold
Resource Capital Gold Corp. is developing the high-grade Dufferin Gold Mine and mill in Nova Scotia, with initial gold production scheduled for February 2017. The Dufferin project covers 874 hectares in 54 mineral claims which contain more than 14 east-west trending "saddle reef" quartz vein gold-bearing structures, each with free-milling gold. The stacked gold reefs are open at depth and extend along trend for over 4.7 kilometers.
The Company is also advancing the Tangier and Forest Hill gold projects and is preparing preliminary economic assessments ("PEA's") on both. These historic mines add considerable high-grade gold to Resource Capital Gold's resource inventory and they provide the momentum for RCG to fast-track the development of low-cost gold production from a network of high-grade deposits in Nova Scotia. RCG is also earning-in to the high-grade Corcoran silver-gold project in Nevada, USA.
The scientific and technical data contained in this news release was reviewed and approved by Michael P. Gross, M.Sc., P.Geo., who is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Gross reviewed the technical reports referenced above on behalf of the Company.
The PEA was prepared by independent Qualified Persons Mr. Douglas Roy M.A.Sc., P.Eng., and Mr. Patrick Hannon, M.A.Sc., P.Eng. of MineTech International Ltd. Mr. Roy also prepared the East Dufferin mineral resource. Both Mr. Roy and Mr. Hannon have reviewed and approved the contents of this news release.
The mineral resource at West Dufferin was prepared by independent Qualified Person Mr. Greg Mosher of Global Mineral Resource Services. Mr. Mosher has reviewed and approved the contents of this news release.
On behalf of the Board of Directors of Resource Capital Gold Corp.
George S. Young
Chairman and CEO
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.
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the Company's plans for Dufferin. and the respective timing for completion of any activities to further such plans, the results of the PEA and the ability of the Company to achieve those results, including capital and operating costs, mine life, anticipated internal rate of return and net present value, payback period, ramp-up periods, production costs, production parameters, recovery rates, assumptions on which the PEA is based including metal prices and exchange rates, and the Company's prospects for growth and the ability to attain such growth.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks as a result of the Company having a limited operating history, uncertainty as to the ability to achieve the results described in the PEA as the PEA is preliminary in nature and may have a wide variance from actual results, risks from making a production decision without any feasibility study completed on the Company's properties, uncertainty regarding the inclusion of inferred mineral resources in the mineral resource estimate which are too speculative geologically to be classified as mineral reserves, uncertainty regarding the ability to convert any part of the mineral resource into mineral reserves, uncertainty involving resource estimates and the ability to extract those resources economically, or at all, uncertainty involving drilling programs and the Company's ability to expand and upgrade existing resource estimates, any applicable regulatory processes and actions, risks applicable to mining operations generally, and risk as a result of the Company being subject to certain covenants with respect to its activities by creditors, as well as other risks.
Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
(1) The Company is not basing its production decision on a feasibility study of mineral reserves demonstrating economic and technical viability; as a result there is increased uncertainty and economic and technical risks of failure associated with its production decision.