Leagold files updated technical report for Los Filos Gold Mine, increasing reserves by 59% to 2.7 million ounces gold

 

VANCOUVER, March 8, 2018 /CNW/ - Leagold Mining Corporation (TSX:LMC; OTCQX:LMCNF) ("Leagold" or the "Company") has filed a NI 43-101 technical report on SEDAR entitled "Technical Report for the Los Filos Gold Mine, Guerrero State, Mexico" dated March 7, 2018 and having an effective date of December 31, 2017 (the "Los Filos Technical Report"). 

As of December 31, 2017, Leagold's Proven and Probable mineral reserves ("P&P reserves") totaled 2.7 million ounces ("Moz") of gold (see Table 1), a 59% increase over the previous year.  With estimated depletion from mining of 0.3 Moz during 2017, the estimated total addition to Proven and Probable reserves was 1.3 Moz during 2017. 

Neil Woodyer, CEO, stated "We are extremely pleased with the 59% increase in P&P reserves at Los Filos, which reflects the success of our 2017 programs focused on extending mine life.  Furthermore, this growth we are reporting today excludes any additional contribution from the Bermejal Underground expansion project, which has M&I resources of 2.1 Moz of gold (see Table 3) at a grade of 5.96 g/t, as reported as of December 31, 2017.  The Bermejal Underground expansion is currently in the mine design phase in preparation for declaration of reserves in mid-2018. With the exploration success during 2017 and the reassessment of Los Filos' long-term potential, studies are underway to evaluate building a carbon-in-leach processing plant, enabling higher recoveries for a wider range of ore types."

The Los Filos Technical Report filed today focuses on the current Los Filos operations and excludes the additional contribution from the Bermejal Underground expansion project, which can only be reported as a mineral resource at this time until feasibility level studies are completed.  A new site-wide technical report is expected in mid-2018 that will incorporate the Bermejal Underground expansion project within a site-wide production plan for Los Filos.   

Table 1. Los Filos Mine Mineral Reserve Statement (Effective Date of December 31, 2017)

As detailed in Table 1 and as of December 31, 2017, Leagold's P&P open pit and underground mineral reserves totaled 61.4 Mt at an average grade of 1.26 g/t containing 2.5 Moz of gold plus a Probable heap leach reserve of 216 koz recoverable ounces (net of 2017 depletion and additions) for a total of 2.7 Moz of gold.

Mineral resources were added at both the Bermejal Underground and Guadalupe areas, however more restrictive mineral resource classification was applied which resulted in movement of some mineral resources to the Inferred category; this is illustrated in Figure 2, which shows that the contained gold in Leagold's Measured and Indicated mineral resource categories remained similar to the previous year, but the contained gold in the Inferred mineral resource category increased by 1.7 Moz. 

Table 2. Los Filos Mine Mineral Resource Statement (Effective Date of December 31, 2017)

The update of the Bermejal Underground mineral resource estimate to the end of 2017 is provided in Table 3 and reflects the additional infill holes that were completed at the end of the drilling program.  Mine design and engineering is ongoing using this mineral resource estimate.

Table 3. Mineral Resource for the Bermejal Underground Deposit (below current open pit mine design, Effective Date of December 31, 2017)

Qualified Persons

The year-end mineral reserves and mineral resources are derived from Los Filos Technical Report that was prepared under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").  The Los Filos Technical Report was prepared for Leagold by Doug Reddy (Leagold, SVP Technical Services), Rodolfo Balderrama Neder (Administración Los Filos, S.A.P.I de C.V., a wholly-owned subsidiary of the Company, Mine Operations Manager), Paul Sterling (Consultant to Leagold) and Dr. Gilles Arseneau (Associate Consultant with SRK Consulting (Canada) Inc., and independent of the Company), each of whom is a Qualified Person as that term is defined in NI 43-101. The authors of the Los Filos Technical Report prepared or supervised the preparation of the technical information upon which this news release is based. Each of the authors have reviewed and approved the technical contents of this news release.

The Los Filos Technical Report has been filed with the securities regulatory authorities in each of the Provinces and Territories of Canada, other than Québec, and can be found under the Company's profile on SEDAR at www.sedar.com.

About Leagold Mining Corporation

Leagold is building a new mid-tier gold producer with a focus on opportunities in Latin America. Leagold is based in Vancouver, Canada and is listed on the TSX under the trading symbol "LMC" and trades on the OTCQX market as "LMCNF". The 2017 acquisition of the Los Filos Mine, a low-cost gold producer in Mexico, provides an excellent platform for growth. For more information on Leagold please visit the Company website at www.leagold.com or contact:  

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This news release contains "forward looking information" or "forward looking statements" within the meaning of applicable securities legislation. Forward-looking information and forward looking statements include, but are not limited to, statements with respect to the underground expansion project, declaration of reserves in mid-2018, possibility of a carbon-in-leach processing plant, potential for higher recoveries, and completion of a site-wide technical report.  Generally, these forward looking information and forward looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "will continue" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Statements concerning mineral resource estimates may also be deemed to constitute forward looking information to the extent that they involve estimates of the mineralization that will be encountered. The material factors or assumptions used to develop forward looking information or statements are disclosed throughout this document.

Forward looking information and forward looking statements, while based on management's best estimates and assumptions, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Leagold to be materially different from those expressed or implied by such forward-looking information or forward looking statements, including but not limited to: risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in mineral reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which the Company operates, actual resolutions of legal and tax matters, as well as those factors discussed in the section entitled "Description of the Business – Risk Factors" in Leagold's most recent AIF available on SEDAR at www.sedar.com.

Although Leagold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. The Company has and continues to disclose in its Management's Discussion and Analysis and other publicly filed documents, changes to material factors or assumptions underlying the forward-looking information and forward-looking statements and to the validity of the information, in the period the changes occur. The forward-looking statements and forward looking information are made as of the date hereof and Leagold disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward looking statements or forward looking information contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and information.

Appendix

Mineral Resource Statement By Mining Method for Los Filos Mine (Effective Date of December 31, 2017)

 

Los Filos Mine Total Mineral Reserve Statement (Effective Date of December 31, 2017)

SOURCE Leagold Mining Corporation

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