TORONTO, ON--(Marketwired - February 13, 2017) -
- Optimization of the Project will culminate in an Updated PEA, planned in Q2
- Permitting will advance through 1H; negotiations continue with Contract Miners, Product Offtakers, Logistics Partners and Project Financiers, concluding by summer and leading to a Development Decision in Q3
- A positive Development Decision in Q3 will lead to anticipated Production and Sales from Silicon Ridge in Q4
Rogue Resources Inc. (TSX VENTURE: RRS) ("Rogue" or the "Company") is pleased to outline the major events anticipated for 2017, as the Company drives forward towards a development decision on its Silicon Ridge Project (the "Project" or "Silicon Ridge") located approximately 42 km north of Baie-Saint- Paul, Québec.
2017 - Moving into Production:
"2017 will be a crucial year for Rogue, as we advance Silicon Ridge toward a development decision and in the event of a positive development decision, subsequent production," stated Sean Samson, President & CEO. "We are very excited about the potential impact of the ongoing optimization on an already appealing Project and the Q2 PEA should have some very interesting results. Our permitting process is already underway and we are busy with commercial negotiations on multiple fronts which will remain our focus through the first half of the year. If successful, we believe Silicon Ridge can be a straightforward, profitable producer, for many years."
Working closely with SNC-Lavalin, Rogue continues to optimize and improve on the business case for the Silicon Ridge Project.
In addition to the overburden reduction previously announced in Q4, 2016, Rogue is working with SNC-Lavalin to update the wireframes and block model, from which the Company plans to develop an updated resource for the Project. Based on that resource, SNC-Lavalin will develop an optimized Mine Plan and Capex Plan, including analysis of a Direct-Ship Option ("DSO") which the Company believes will reduce the Project Capex as compared to the September 2016 PEA. The optimized Mine Plan and Capex Plan will be included into an updated, optimized PEA being authored by SNC-Lavalin with an anticipated completion in Q2.
"We believe that completing an updated study with SNC-Lavalin will allow Rogue to show investors an enhanced business case for the Project and present an even more compelling investment opportunity," stated Sean Samson, President & CEO. "This was not our original strategy, but realizing now that there are significant optimizations, an updated, optimized PEA will better reflect the value of the project."
With the assistance of SNC-Lavalin, the Company has begun the permitting process to receive the necessary permits, certificates and authorizations from the various Québec ministries, authorities and municipalities to initiate development and production activities in the coming months.
The permitting and authorization process for the Silicon Ridge Project will consist mainly of three separate ministries awarding permits, authorizations and certificates, including:
- The Ministère des Forêts, de la Faune et des Parcs (the "MFFP", Ministry for Forestry, Wildlife and Parks) which issues an authorization under section 128.7 of the Act Respecting the Conservation and Development of Wildlife (a "Sec 128.7"); in parallel to this, Rogue is applying to,
- The Ministère de l'Énergie et des Ressources naturelles (the "MERN", Ministry for Energy and Natural Resources) for a bail d'exploitation minière permit (also known as a "BEX permit"); these two approvals will lead to,
- The Ministère du Développement durable, de l'Environnement et de la Lutte contre les changements climatiques (the "MDDELCC", Ministry for Sustainable Development, Environment and Climate Change) which grants the Certificate of Authorization (a "CofA").
As outlined in the 2017 Plan, Rogue and SNC-Lavalin understand this process will culminate with the CofA, expected in the summer.
The Company will continue to advance and finalize the various negotiations that are underway to prepare Silicon Ridge for production. These include discussions with:
- Contract Miners -- with whom Rogue will partner for road construction, site preparation and pre-development, in addition to the eventual quarrying contract.
- Product Offtakers -- the buyers of the silica, with whom Rogue is advancing discussions, including the counterparties on the two non-binding Letters of Intent to Offtake (see December 22, 2016 press release) and also ongoing discussions with other buyers of quartz -- including ferrosilicon and silicon metal producers.
- Logistics -- Rogue is advancing discussions with road haulage companies for shipment of material from site to port, stevedores and port authorities for port service and maritime shipping suppliers.
- Project Financing -- Rogue is currently focused on non-dilutive sources of financing to assist in ultimately developing the Project.
"The first half of 2017 will be busy running multiple commercial negotiations timed to be completed in conjunction with the permitting, in the summer months," said Sean Samson, President and CEO of Rogue Resources. "This will keep us on-track for a development decision in Q3."
About Rogue Resources Inc.
Rogue is a mining company focused on generating positive cash flow. Not tied to any metal, it looks at rock value and good grade deposits that can withstand all stages of the metal price cycle. The current focus is Québec's Silicon Ridge Project. For more information visit www.rogueresources.ca.
The Silicon Ridge Project is under the direct supervision of Paul Davis, P Geo., and Vice-President, Technical of the Company, a Qualified Persons ("QP") as defined by National Instrument 43-101, has approved the scientific and technical content of this release.
On Behalf of Rogue Resources Inc.
President & CEO, Director
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 news release.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this release constitute forward-looking statements, including timing of completion of exploration work. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including availability of capital at terms acceptable to the Company, factors related to a development decision, that the Company is able to obtain any government or other regulatory approvals (including the permits referred to herein) that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results are consistent with management's expectations, the timing and result of the third party negotiations referred to herein, the results of the Company's optimization efforts, the conclusions of an optimized PEA and ultimately whether or not production is achieved. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, those matters identified in its continuous disclosure filings, including its most recently filed MD&A. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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