VANCOUVER, BC--(Marketwired - February 02, 2017) -
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- Major mill components are now completed
- Testing of the crushing and screening plant are completed
- Testing of the gravity circuit underway
- Work on test milling has commenced
Resource Capital Gold Corp. (TSX VENTURE: RCG) ("RCG" or the "Company") is pleased to announce that it has started and tested all of the major components in the mill at its Dufferin Gold Mine ("Dufferin Project") located in Nova Scotia, Canada. The Company has also commenced test milling operations in preparation for full milling operations, subsequently followed by the resumption of mining operations.1
Mill mechanical start up
A complete assessment of the mill has been undertaken along with a number of improvements and modifications that have been implemented. The ball mill has been successfully re-seated in the bearing housing, charged with a 12 tonne ball charge including new 3 inch grinding balls, and is now turning and going through customary start-up testing. Refurbishment of the jaw and cone crusher has been completed, and the crushing and material handling circuits are now operable and going through start-up testing. The gravity circuit has been cleaned and refurbished, now ready for start-up testing. All major components of the gravity flowsheet are now ready for start up and final testing with waste material stockpiled by the previous operator.
Initial test milling commenced on gold-bearing stockpile materials and tailings
Following the successful completion of testing the crushing and screening circuit with waste material, the Company will commence testing on the grinding and gravity concentrating circuit using a bulk sample of tailings and other mineralized material stockpiled at the site, left by the previous operator. Initial test milling calls for detailed sampling and mass balance calculations on a 15-tonne sample of mineralized material, which is believed to have similar overall mineralogy to materials to be mined and to have a grade exceeding 4 grams per tonne gold. This will enable the determination of recovery efficiency in the mills gravity circuit.
Following completion of the testing, the Company will be making appropriate adjustments in the mill to improve recovery in the gravity circuit in preparation for the restart of milling operations on the remaining materials stockpiled on the surface. This processing will be undertaken while simultaneously completing upgrades to the underground electrical circuits and rehabilitating certain parts of the mine in preparation for resumption of mining operations at the mine. The Company expects to generate cash flow from processing these materials preparatory to the commencement of mining.
Testing of gold recovery from previous operator's concentrates stored on site
The Company has also commenced testing of gold recovery from concentrates stored on site and left by the previous operator on the Dufferin Project. This work is being conducted under confidentiality agreement with an independent laboratory. While this work is in the very early phase, it is expected to produce a small amount of gold revenue, and, more importantly, to help evaluate processing options for the production and treatment of concentrates in the future as the Company's operations mature at the Dufferin Project.
"Mechanical completion of the major mill components and the commencement of circuit testing comprise another set of major milestones reached by RCG in our work to re-open the mine and begin producing gold revenues," said George S. Young, CEO of RCG. "We are on schedule to generate revenue from the surface materials and recommence mining activities. Work to date has been funded from cash on hand, and we expect to generate cash flow from the milling of surface materials to provide additional funds needed for sustaining capital and the rampup of our mining operations. We are excited to move quickly toward full production and expansion of our operations at Dufferin while we complete the Preliminary Economic Assessments at Tangier and Forest Hill. In this manner, within a six-month period from the closing of the Dufferin acquisition in October of 2016, we will have completed the first major steps in our larger gold 'roll up' strategy in Nova Scotia with minimal capital outlay."
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 1,684 hectares in 104 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 potentially open-pittable 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.
On behalf of the Board of Directors of Resource Capital Gold Corp.
George S. Young
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.