TORONTO, ONTARIO--(Marketwired - April 27, 2015) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
TMAC Resources Inc. ("TMAC" or the "Company") is pleased to announce the successful completion of its Pre-Feasibility Study ("PFS") on its 100% owned Hope Bay Project (the "Project") located northeast of Yellowknife in the Kitikmeot region of Nunavut, Canada. The PFS establishes new Proven and Probable Reserve estimates for the Project based on the Mineral Resources estimate released in January, 2015. The PFS also updates the Mineral Resource estimate for Boston. The PFS has an effective date of March 31, 2015 and has been prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101") by RPA Inc. ("RPA") of Toronto, Ontario, Canada, which has extensive worldwide experience in a variety of mining projects including many in the Canadian Arctic.
The PFS supports the sequential development and underground mining of the three known deposit trends at Doris, Madrid and Boston. The development plan in the PFS includes conventional high-grade underground mining that makes use of significant existing surface and underground infrastructure. The updated Mineral Resources estimate in the PFS includes 4.5 million ounces of gold in the Measured and Indicated categories, as well as TMAC's first reported Proven and Probable Reserves estimate of 3.5 million ounces in support of an initial 20 year mine life. Due in part to the pre-existing on-site infrastructure, capital and operating costs are expected to be low relative to underground gold mining industry averages, with the PFS forecasting operating costs and all-in sustaining costs of US$638 and US$785 per ounce, respectively. With low pre-production capital costs of US$175 million (C$206 million), the base case in the PFS estimates that the Project will generate a robust pre-tax internal rate of return ("IRR") of 44% and a post-tax IRR of 40%. By leveraging the existing advanced infrastructure at the Project, the PFS estimates that TMAC would realize a 1.7 year payback on modest up-front capital requirements.
PFS Highlights
Table 1. Economic highlights of the PFS (base case):
| Gold Price (US$/Oz) | $1,250 |
| Exchange Rate C$/US$ | 1.18 |
| Mine Life | 20 years |
| Mill Capacity (tonnes per day) | 2,000 |
| Tonnes Ore Mined | 14.3 million |
| Average LOM Grade | 7.6 g/t Au |
| Average Grade - First 5 Years | 9.4 g/t Au |
| Average LOM Recovery | 91% |
| Total Recovered Oz Au | 3.2 million |
| Average Annual Gold Production | 160,000 oz |
| Average Annual Gold Production Years 1-5 | 185,000 oz |
| Peak Annual Gold Production | 218,000 oz |
| Pre-production Capital (C$ million) | $206 |
| Pre-production Capital per Oz Au (C$) | $64 |
| Sustaining Capital (C$ million) | $436 |
| Sustaining Capital per Oz Au (C$) | $136 |
| Gross Revenue (C$ billion) | $4.7 |
| Total Operating Cash Flow (C$ billion) | $2.2 |
| Pre Tax NPV at 5% discount (C$ million) | $848 |
| Pre Tax IRR | 44% |
| Post Tax NPV at 5% discount (C$ million) | $626 |
| Post Tax IRR | 40% |
| Post Tax Payback Period | 1.7 years |
Terry MacGibbon, TMAC's Executive Chairman commented, "The PFS provides confirmation of the immediate development potential of the Hope Bay Project and the focused strategy of boot-strapping the belt by initiating production at Doris. The cash flows from early mining support the ramp-up of production at sites progressively further south in the belt and support exploration for significant additional mineralization along the belt. After two years of de-risking and advancing the Project we are in position to execute on a plan that realizes production of gold in late 2016. With three deposits already scheduled for production in the PFS, excellent potential to expand and grow those known deposits, and to discover new deposits along the 80 km long gold belt, we are truly at the early stages of building Canada's next great gold mining camp."
Dr. Catharine Farrow, TMAC's Chief Executive Officer stated, "TMAC has advanced and de-risked the Project beyond expectations in the past 6 months with the completion of a highly successful drill programme that led to the upgrade of 1.7 million ounces of gold into Measured and Indicated Mineral Resources, the signing of a comprehensive suite of Inuit agreements with the Kitikmeot Inuit Association ("KIA") and Nunavut Tunngavik Inc. ("NTI") for the 20 year mine life represented by the PFS, and the completion of the PFS. The 20 years of estimated reserves that underpin the mine plan in the PFS is seldom achieved in these types of orogenic gold deposits and is the culmination of decades of excellent mineral resource drilling and development by previous owners and by TMAC. Of note is the fact that all of the known deposits are open at depth. Their potential future production would provide the cash flow and the time to develop the potential of the rest of the Hope Bay greenstone belt, thereby adding additional value for stakeholders. In addition, TMAC has been able to utilize existing infrastructure that is effectively ready for production and has settled on a fit for purpose processing plant that will help in achieving a late 2016 initiation of gold production. "
Table 2. Capital, operating and sustaining costs highlights (base case):
| US$ / oz | US$ / tonne | US$ Millions | C$ Millions | |
| Mining | 339 | 76 | 1,082 | 1,273 |
| Processing | 128 | 29 | 408 | 481 |
| Surface and camp | 171 | 38 | 548 | 644 |
| Total Opex | 638 | 143 | 2,038 | 2,398 |
| Refining and royalties | 31 | 7 | 99 | 116 |
| Mine development capex | 49 | 11 | 155 | 182 |
| Post production capex | 56 | 12 | 179 | 210 |
| Closure costs | 11 | 2 | 36 | 43 |
| All in sustaining costs | 785 | 175 | 2,507 | 2,949 |
| Pre-production capex | 54 | 12 | 175 | 206 |
| Total all in costs | 839 | 187 | 2,682 | 3,155 |
Mineral Resources
The Mineral Resource Estimates being reported in the PFS include Measured, Indicated and Inferred categories extractable by underground mining and are inclusive of Reserves. Both Doris and Boston mine environments have Measured Resources that contain 510,000 oz Au grading 15.1 g/t Au. Specifically, Doris Hinge contains 309,000 oz Au at a grade of 21.7 g/t Au in Measured Resources. The three mine environments contain Inferred Resources that total 1.4 million oz Au grading 7.4 g/t Au. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Table 3. Hope Bay Mineral Resource Estimate - March 31, 2015:
| Measured | Indicated | Measured and Indicated | Inferred | |||||||||
| Zone | Tonnes (000s) | Grade (Au g/t) | Au Oz (000s) |
Tonnes (000s) | Grade (Au g/t) |
Au Oz (000s) |
Tonnes (000s) | Grade (Au g/t) |
Au Oz (000s) | Tonnes (kt) | Grade (Au g/t) |
Au Oz (000s) |
| Doris Hinge | 443 | 21.7 | 309 | 108 | 14.0 | 48 | 550 | 20.2 | 358 | |||
| Doris Connector/Central | 1,562 | 9.4 | 472 | 1,562 | 9.4 | 472 | 246 | 7.4 | 59 | |||
| Doris Connector Deep | 150 | 7.1 | 34 | 150 | 7.1 | 34 | 340 | 7.1 | 77 | |||
| Doris North Deep | 32 | 6.3 | 6 | 32 | 6.3 | 6 | 194 | 7.4 | 46 | |||
| Doris South Deep | 234 | 8.6 | 65 | |||||||||
| Doris Total | 443 | 21.7 | 309 | 1,852 | 9.4 | 561 | 2,295 | 11.8 | 870 | 1,014 | 7.6 | 247 |
| Suluk South | 500 | 6.1 | 98 | |||||||||
| Suluk East | 437 | 6.1 | 85 | |||||||||
| Suluk West | 1,760 | 7.9 | 444 | 1,760 | 7.9 | 444 | 1,247 | 6.9 | 275 | |||
| Spur | 31 | 5.1 | 5 | |||||||||
| Rand | 419 | 6.6 | 89 | 419 | 6.6 | 89 | 127 | 6.0 | 24 | |||
| Naartok | 6,437 | 8.4 | 1,730 | 6,437 | 8.4 | 1,730 | 812 | 9.3 | 242 | |||
| Madrid North Total | 8,616 | 8.2 | 2,263 | 8,616 | 8.2 | 2,263 | 3,155 | 7.2 | 730 | |||
| Patch 14 | 359 | 17.7 | 204 | 359 | 17.7 | 204 | 182 | 6.8 | 40 | |||
| Wolverine | 212 | 11.5 | 78 | 212 | 11.5 | 78 | 238 | 10.7 | 82 | |||
| Madrid South Total | 571 | 15.4 | 282 | 571 | 15.4 | 282 | 420 | 9.0 | 122 | |||
| Boston UG North | 236 | 6.0 | 46 | 236 | 6.0 | 46 | 628 | 6.5 | 131 | |||
| Boston UG B2 | 608 | 10.3 | 201 | 2,189 | 9.6 | 673 | 2,798 | 9.7 | 874 | 594 | 8.1 | 155 |
| Boston UG B3/B4 | 677 | 8.1 | 176 | 677 | 8.1 | 176 | 172 | 7.8 | 43 | |||
| Boston Total | 608 | 10.3 | 201 | 3,103 | 9.0 | 895 | 3,711 | 9.2 | 1,096 | 1,393 | 7.4 | 330 |
| Grand Total | 1,051 | 15.1 | 510 | 14,142 | 8.8 | 4,001 | 15,193 | 9.2 | 4,511 | 5,982 | 7.4 | 1,429 |
| Notes: | |
| 1. | CIM definitions were followed for Mineral Resources. |
| 2. | Mineral Resources are estimated at a cut-off grade of 4.5 g/t Au. |
| 3. | Mineral Resources are estimated using a long-term gold price of US$1,400 per ounce, and a US$/C$ exchange rate of 1.12. |
| 4. | A minimum mining width of approximately 1.5 m was used. |
| 5. | A 50 m crown pillar allowance was applied to resources located below lakes. |
| 6. | Numbers may not add due to rounding. |
Geology and Exploration
The gold mineralization at the Project is hosted in an 80 km long Archean-age (approximately 2.7 billion year old) greenstone belt, with similar rock types and relationships, structural setting and alteration styles as some of the world's largest orogenic gold-bearing greenstone belts, like the Abitibi of Ontario and Quebec that is host to the classic Kirkland Lake, Val D'Or and Timmins camps. There are three known deposit trends, Doris and Madrid in the north and Boston in the south. The belt is bisected by the roughly north-south oriented Hope Bay Deformation Zone (HBDZ) down its axis. Known gold mineralization is typically hosted in trends along splays and lower order structures both on the east and west sides of the HBDZ. To date, all three of the known deposit trends (Doris, Madrid and Boston) are open along strike and at depth, having previously only been explored to depths of a few hundred metres.
Doris trend known gold mineralization is associated with sub-vertical structures over a strike length of approximately 2.5 km. Gold-bearing, quartz-carbonate veining and associated intense alteration and fabric development occur in mafic metavolcanic host rocks. The Doris deposit is separated into upper and lower portions by the intrusion of the late (approximately 700 million year old) Doris diabase dyke, the upper portion being most intensely drilled and representing the majority of the estimated 870,000 oz Au in the Measured and Indicated Resource categories at Doris. The highest grades, 21.7 g/t Au in Measured Resources, are in the Hinge Zone, where upright vein structures flatten locally.
The Madrid trend is separated into Madrid North and Madrid South environments along the approximately 6 km long, curvilinear, Madrid Deformation Zone (MDZ). Of the estimated 2.3 million oz Au Indicated Resources contained within the Madrid Trend, 1.7 million oz Au occur in the Naartok Zone at the north end of the MDZ. The Naartok gold mineralization is hosted in silicified and sulphide-bearing breccia intruded into the altered mafic metavolcanic rocks on the north side of the MDZ. There the host breccias thicken locally as north-south -oriented shoots trapped under a relatively homogenous variolitic mafic metavolcanic unit. Gold grade increases with both increases in sulphide content and intensity of silicification in the breccia.
The Boston trend gold mineralization is hosted in a bimodal assemblage of mafic and felsic volcanic rocks with associated sedimentary rocks, all of which are complexly folded about a large-scale, synformal anticline. The core of the anticline is represented by mafic volcanic rocks that host the Boston deposit which is overlain by sedimentary rocks. The Boston trend hosts an estimated 1.1 million ounces Au in the Measured and Indicated Resources categories. Gold mineralization occurs in three zones in sub-vertical horizons of extensive hydrothermal alteration within a large iron-rich, carbonate-altered, shear zone. It is best developed within and around structurally controlled quartz-carbonate veins along lithological contacts.
The Hope Bay belt has excellent exploration potential at a variety of scales ranging from supporting the PFS-defined mine plan, adding Mineral Resources near existing or planned mine infrastructure at the Doris, Madrid and Boston trends, to the discovery of new gold-mineralized trends and possibly different gold deposit types elsewhere in the belt. TMAC's future exploration programs will be strategically developed to take advantage of the extensive historical drilling, geophysical and geochemical databases.
Mineral Reserves
The Mineral Reserve estimate being reported in the PFS includes both Proven and Probable Reserves that cover the contemplated 20 year mine life. The Doris and Boston mine environments have estimated Proven Reserves that aggregate 461,000 oz Au grading 11.0 g/t Au. The three mine environments contain approximately 3.0 million oz Au grading 7.4 g/t Au in Probable Reserves for a total of approximately 3.5 million oz Au grading 7.7 g/t Au in both the Proven and Probable Reserves categories.
Table 4. Hope Bay Reserves Estimate - March 31, 2015:
| Proven | Probable | Total | |||||||
| Zone | Tonnes | Grade | Oz Au | Tonnes | Grade | Oz Au | Tonnes | Grade | Oz Au |
| (000s) | (g/t Au) | (000s) | (000s) | (g/t Au) | (000s) | (000s) | (g/t Au) | (000s) | |
| Doris Connector | - | - | - | 1,526 | 8.0 | 395 | 1,526 | 8.0 | 395 |
| Doris North | 650 | 13.4 | 281 | 168 | 8.0 | 43 | 817 | 12.3 | 324 |
| Suluk | - | - | - | 2,002 | 5.8 | 373 | 2,002 | 5.8 | 373 |
| Rand | - | - | - | 344 | 5.2 | 57 | 344 | 5.2 | 57 |
| Naartok | - | - | - | 5,536 | 7.0 | 1,246 | 5,536 | 7.0 | 1,246 |
| Patch | - | - | - | 365 | 14.5 | 170 | 365 | 14.5 | 170 |
| Wolverine | - | - | - | 261 | 7.2 | 60 | 261 | 7.2 | 60 |
| Boston | 657 | 8.5 | 180 | 2,687 | 8.1 | 703 | 3,343 | 8.2 | 883 |
| Total | 1,306 | 11.0 | 461 | 12,888 | 7.4 | 3,046 | 14,194 | 7.7 | 3,507 |
| Notes: | |
| 1. | CIM definitions were followed for Mineral Reserves. |
| 2. | Mineral Reserves are estimated at a cut-off grade of 4.7 g/t Au for Longhole mining and 5 g/t Au for Drift and Fill mining. |
| 3. | Mineral Reserves are estimated using an average long-term gold price of US$1,250 per ounce and a US$/C$exchange rate of 0.85. |
| 4. | A minimum mining width of 1.5 m for Longhole mining and 3 m for Drift and Fill mining was used. |
| 5. | Bulk density is 2.87 t/m3. |
| 6. | Numbers may not add due to rounding. |
Mining
The PFS considers two primary mining methods, retreat longhole stoping and overhand cut and fill with life of mine mining costs of US$76/tonne or US$339/oz Au. Locally, retreat back stoping will be utilized where ore can be fully recovered from a single access. Longhole stoping will have top and bottom cuts developed in ore. Stoping will begin at the extents of the ore zone and retreat toward the access with remote mucking of blocks up to 35 m in length and 20 m high. Longitudinal stope blocks will be backfilled with a mix of cemented and run of mine waste fill. Cut and fill mining methods will be utilized in thicker zones to achieve full extraction and in select narrow vein environments.
Under the PFS mining is scheduled for initiation at Doris North in 2015 with the development of lateral drifts, sized to match vein width, in ore. Retreat longhole stoping will commence with process plant commissioning in late 2016. Thicker portions of the Doris North Hinge structure will be mined using overhand cut and fill methods with selective cemented backfill. Underground access to Doris Central and Connector will be developed concurrent with ore production at Doris North. Production from Doris Central and Connector is scheduled to begin replacing Doris North production in early 2018. Development of the Madrid South and Naartok (Madrid North) underground infrastructure is planned to begin in 2019 and 2020, respectively. Surface construction of the road to Boston is scheduled to commence in 2021. Boston production is planned for a 2022 start.
The PFS estimates total operating cost (mining, processing, surface and camp costs) for the life of the currently known reserves estimated on the Project of C$2.4 billion (US$2.0 billion) at US$143/tonne or US$638/oz Au. Sustaining capital costs of US$785/oz Au include the cost of the Boston road.
Processing
By leveraging existing infrastructure at the Project, TMAC has been able to focus its efforts on the last major requirement for the initiation of gold production in the belt, the processing plant. The gold processing plant for the Project is being designed, manufactured, constructed and commissioned by Gekko Systems Pty Ltd. ("Gekko"), and will be located at the Doris site. TMAC personnel will be integrated with Gekko personnel during the construction and commissioning phases of the plant.
The Doris processing plant will consist of two, 1,000 tonness/day, modular, pre-concentrator lines, termed Python lines ("Python"), of secondary crushing, grinding, gravity gold recovery and flotation. The two Pythons will be fed by a primary jaw crusher. Gravity and flotation products will be processed in the Concentrate Treatment Plant ("CTP"). The CTP will consist of regrind, cyanidation, resin gold recovery, doré gold bar production, and tailings treatment.
Capital Costs and Project Timelines
TMAC upgraded infrastructure at the Project in 2014 with the commissioning of the existing 5.8MW portion of the primary power house and mine ventilation surface infrastructure, and full restoration of Doris camp support systems after they had been placed in care and maintenance by the previous owner. A small set of mining equipment was delivered to site by air freight in March 2015 to complete underground development of the secondary escape way and to complete a test-stoping program designed to verify mining methods. Mining equipment for the first year of Doris production has been procured for delivery on the September 2015 sealift. In the PFS schedule, immediately after the sealift, underground development at Doris will commence using this equipment. The proposed 2015 site infrastructure work plan will include completion of the primary power house to 11.6 MW capacity for commissioning in 2016, widening of the airstrip, and development of the road to the south end of the tailings impoundment facility with construction of the south dam in 2016.
The design of the process plant equipment and building was completed in early 2015, and both the plant and building have progressed to fabrication. The process plant building construction will begin with earthworks and foundation construction in the spring and summer of 2015. The building materials and construction equipment are scheduled for delivery on the 2015 sealift. Building construction is scheduled for mid-2016, before shipment of the processing plant modules on the 2016 sealift. Assembly of the plant will be by TMAC and contract employees within the completed building under the direction of the manufacturer's technical team. Commissioning of the plant is scheduled to begin in December 2016 with production of doré from the gravity gold circuit by the end of that month. The processing plant will progress to 1,000 tonnes/day throughput in January 2017. By the time commissioning begins, approximately 100,000 tonnes of high grade, Doris ore will be stockpiled at site. Pre-production capital expenditures associated with this work plan are estimated in the PFS at C$206 million.
Madrid construction to facilitate bulk sampling is scheduled for initiation in early 2019 at Madrid South and early 2020 at Naartok, with the development of both surface and underground infrastructure. Madrid production is planned with ramp-up in 2020 following successful bulk sample results and permit acquisition. Construction of the road between Boston and Madrid is planned for 2021 after receipt of regulatory approvals, with a target completion of work and reopening of the Boston portal in 2022. Existing underground workings at Boston will provide immediate access to gold zones to rapidly bring the mine into production using methods employed elsewhere in the belt. Total capital expenditures for the 20 year life of the Project contemplated in the PFS are estimated to be C$641 million (US$545 million), with total sustaining capital of C$436 million (US$370 million).
Permitting
TMAC is in possession of all federal and territorial approvals required to commence production at the Doris North mine. Since the Hope Bay acquisition in March 2013, TMAC has operated in material compliance with its environmental approvals and has successfully administered a rigorous environmental monitoring and reporting program. TMAC also has maintained the rigorous baseline data collection programs required to support the future permitting of additional mining areas, including those at Madrid and Boston.
The Doris North mine has been issued a Project Certificate by the Nunavut Impact Review Board (NIRB) and a Type A water licence issued by the Nunavut Water Board (NWB), renewed September, 2013. TMAC is in the process of seeking amendments to both the Doris project certificate and water licence to, among other things, increase production rates and mine life, permit tailings management changes and facilitate ocean effluent discharge. TMAC has also submitted a Madrid Bulk Sample Water License Application in December, 2014 which is currently in review by various regulatory organizations. A Phase 2 draft environmental impact study was initiated in March 2015 which will apply to the entire Hope Bay belt, including all mines and other infrastructure. The initial project submission was in 2013 and guidelines based on that submission have been received.
On March 30, 2015 TMAC signed landmark, 20 year, belt-wide agreements on surface tenure for Inuit Owned Land with the KIA. These included a comprehensive Framework Agreement and Inuit Impact Benefits Agreement. At that time a previously signed 20 year Mineral Exploration Agreement and a form of Production Lease for Inuit Owned Mineral Rights with NTI was ratified. This was a major de-risking event for TMAC and ensures long-term land tenure on Inuit Owned Lands for the life of the Project as contemplated in the PFS.
Hope Bay Project Economics Sensitivities
The economics in the PFS are robust through a range of gold price and foreign exchange rate sensitivities, including gold prices as low as US$1,000/oz Au and a US$/C$ ratio of 0.80.
Table 5. PFS gold price and exchange rate sensitivities:
| Unit | -$250/oz | -$150/oz | Base Case | +$50/oz | +$150/oz | |
| Gold | (US$/oz) | $1,000 | $1,100 | $1,250 | $1,300 | $1,400 |
| US$ / C$ | (ratio) | 0.80 | 0.80 | 0.85 | 0.85 | 0.90 |
| Pre-Tax IRR | (%) | 28% | 37% | 44% | 47% | 49% |
| Pre-Tax NPV5% | (US$ mm) | $368 | $561 | $720 | $811 | $862 |
| Post-Tax IRR | (%) | 26% | 34% | 40% | 43% | 45% |
| Post-Tax NPV5% | (US$ mm) | $298 | $420 | $532 | $593 | $629 |
PFS Contributions and Qualified Persons
The Hope Bay PFS was led by Roscoe Postle Associates Inc. ("RPA") and contributed to by ERM Canada Consultants Inc. ("ERM"; environment, permitting), SRK Consulting (Canada) Inc. ("SRK", water balance, tailings facility, waste rock storage, geomechanics, mine closure and reclamation), TMAC (contributions to mine design) and Gekko Systems Pty Ltd (design and cost estimates for processing plant). The qualified persons were Graham Clow, P.Eng., Sean Horan, P.Geo., and Holger Krutzelmann, P.Eng., all of RPA, Derek Chubb, P.Eng. of ERM, Maritz Rykaart, P.Eng. of SRK, Paul Christman, P.Eng. of TMAC, and Timothy Hughes, AusIMM of Gekko. All scientific and technical information in this press release is based on the PFS.
RPA had previously completed a PEA on Hope Bay in March 2014 which demonstrated positive project economics using the existing mineral resources and estimated capital and operating costs at that time.
Data Verification and QA/QC
TMAC follows industry standard best practice quality assurance/quality control (QA/QC) for drillhole surveys and assays. The QA/QC program for gold analyses includes blank and standard samples routinely inserted into the sample stream, as well as routine duplicate samples, and third party laboratory check assays. QA/QC data are reviewed internally throughout the year and an external third party review is conducted annually. Gold analyses are completed by fire assay with atomic absorption (AA) finish on a 50g split. Screen metallic fire assays with a gravimetric finish are performed on samples returning higher than 10 g/t Au from initial fire assay results. Sample preparation and analyses are completed using industry accepted practices at ALS Chemex in Yellowknife and Vancouver. RPA has reviewed the QA/QC performed by TMAC and is of the opinion that the results and data are suitable to support Mineral Resource and Mineral Reserve estimation.
About TMAC
TMAC is a privately held mineral exploration and development company focused on the development of western Nunavut's Hope Bay Belt. TMAC management has an exceptional track record of exploring for, developing and operating high grade, profitable underground mines.
Forward-Looking Statements
This release contains "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws that are intended to be covered by the safe harbors created by those laws. "Forward-looking statements" or "forward-looking information" include statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, the economic analysis contained in the PFS, including the net present value, the IRR, capital and operating costs, cash flow amounts and timing, recoveries and estimated production amounts and timing, mineral reserve and mineral resource estimates, the completion of the development of Hope Bay, the timing for delivery and completion of the processing plant, the potential for commissioning and production in late 2016, cash flows being used to develop the rest of the Hope Bay belt and the potential to discover additional mineralization and to add to TMAC's mineral resources..
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including among other things assumptions about: the ability to raise sufficient capital to advance the development of the Project and pursue planned exploration; future prices of gold and other metal prices; accuracy of the mineral resource and mineral reserve estimates in the PFS; the geology of the Project being as described in the PFS; the metallurgical characteristics of the deposit being suitable for the Gekko plant; the successful and timely delivery, installation and operation of the Gekko plant; production costs being as estimated in the PFS; accuracy of budgeted exploration and development costs and expenditures, including to complete development of the infrastructure at the Project; the price of other commodities such as fuel; future currency exchange rates and interest rates; favourable operating conditions; political and regulatory stability; receipt of governmental approvals and permits and all necessary third party financing on favourable terms; obtaining renewals for existing licences and permits and obtaining all other required licences and permits; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with the KIA and NTI and other local groups; and the Company's ability to operate in the harsh northern Canadian climate. The assumptions used to produce the mineral reserve and resource estimates and the PFS are set out above and are detailed in the PFS. While the Company considers these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking information. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.
Furthermore, such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: general business, economic, competitive, political, regulatory and social uncertainties; disruptions or changes in the credit or securities markets and fluctuations in prices for the Company's securities; a material decline in the price of gold; adverse variations in mineral grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; failure to deliver the Gekko plant on the September 2016 sealift; damage to the Gekko plant in the course of transport or assembly; differences in size, grade, continuity, geometry or location of mineralization from that predicted by geological modeling; the speculative nature of mineral exploration and development, including the risk of diminishing quantities or grades of mineralization and the inherent riskiness of inferred resources; failure to renew existing licences and permits or obtain required licences and permits; changes in project parameters as development plans are refined; changes in labour costs or other costs of production; accidents, labour disputes and other risks of the mining industry, including but not limited to environmental risks and hazards, cave-ins, flooding, rock bursts and other acts of God or natural disasters or unfavourable operating conditions and losses; political instability, hostilities, insurrection or acts of war or terrorism; adverse changes in government legislation and regulation; adverse fluctuations in commodity prices; failure to raise sufficient funding to meet development and exploration plans and budgets, satisfy contractual obligations and additional capital needs generally;
changes or disruptions in financial markets and capital goods markets; increased infrastructure and/or operating costs; unanticipated reclamation costs; the Company's lack of operating history and no history of earnings; reliance on a finite number of properties; limits of insurance coverage and uninsurable risk; disputes over title to properties; environmental risks and hazards; limitations on the use of community water sources; failure to comply with laws and regulations or other regulatory requirements; the impact of competitive conditions in mineral exploration and mining business; the inability of the Company to retain its key management employees and shortages of skilled personnel and contractors; influence of third party stakeholders; risks of litigation; failures or deficiencies in the Company's system of internal controls; conflicts of interest; credit and/or liquidity risks; fluctuations in the value of Canadian and United States dollars relative to each other; and the risks involved in the exploration, development and mining business generally. Although TMAC has attempted to identify important factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those described in forward-looking information, there may be other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended.
TMAC cautions that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, this forward-looking information. Forward-looking information contained herein is made as of the date of this document and TMAC disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable law. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Contact Information:
416-520-3516
Catharine Farrow
416-628-0216