Western Troy Provides Historical Resource Information for the San Nicolas Project
TORONTO, July 23, 2018 (GLOBE NEWSWIRE) -- Western Troy Capital Resources (TSX Venture:WRY) (“Western Troy” or the “Company”) announced today the results of its investigation into the historically reported resources at the San Nicolas Project near Cajamarca, Peru.
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In its press release of June 29, 2018, Western Troy announced, through a reverse takeover process with MASGLAS Peru S.A.C., a transaction that involves the acquisition of a minimum of a 70% interest of Cia. Mineral San Nicolas S.A. including, among other assets, concession rights to the San Nicolas Mine Project. Western Troy has received mine resource data from the historical records.
Rex Loesby, CEO of Western Troy, and Steve Friberg, independent geologist and Qualified Person under National Instrument 43-101, traveled to the San Nicolas Mine Project in early July of this year to investigate the basis for the resource data so as to allow publication of those data in compliance with NI 43-101 requirements. A second purpose of the visit was to satisfy the requirements necessary for Mr. Friberg to develop and publish a current draft NI 43-101 technical report for the San Nicolas Mine Project. The draft NI 43-101 report is expected to be ready for TSX-V review in late July or early August.
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Mr. Friberg took chip samples of mineralized material from underground and surface workings at the San Nicolas Project site. He also took samples of mineralized material and tailings at the Cosinsa Mill. The samples were transported to the ALS lab in Lima. The site verification confirms the existence of a steeply dipping mineralized vein system up to 15 meters in width, and adjacent moderately dipping mantos of up to 25 meters in thickness.
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In his research, Mr. Friberg also found a Roscoe Postle (RPA) 43-101 report on the San Nicolas Project published in 2005 for Goldmarca Limited (now Ecometals Limited) and posted on the SEDAR Website on February 28, 2006. This report relied upon data from 104 reverse circulation drill-holes totalling 10,680 meters plus surface and underground mapping and sampling that a prior company, El Misti Gold Limited, completed in 1997. RPA constructed a block model of the San Nicolas mineralization and, using a 0.5 g/t gold cut-off, calculated the following mineral resources:
| Mineral Resources – San Nicolas Project, Peru* | ||||||||||||||||
| Tonnes | Gold | Silver | Copper | Zinc | Lead | |||||||||||
| Indicated | 3,763,000 | 0.060 opt | 2.749 opt | 0.26 | % | 1.14 | % | 0.46 | % | |||||||
| Inferred | 1,352,000 | 0.051 opt | 2.394 opt | 0.28 | % | 1.08 | % | 0.46 | % | |||||||
| Total/Ave. | 5,115,000 | 0.06 opt | 2.665 opt | 0.27 | % | 1.12 | % | 0.46 | % | |||||||
| Pounds/Ounces | 303,000 oz | 3,792,000 oz | 29,845,000 lb | 126,140,000 lb | 51,807,000 lb | |||||||||||
* RPA 43-101 Technical Report dated December 28, 2005
From the available data, minimal mineral projection was included by RPA below the deepest underground drift level at San Nicolas. The RPA study concludes that “The current mineralization is open at depth and there is some potential along strike to increase the tonnage.” RPA chose to cap (cut) all gold and silver values (7.0 g/t Au and 350 g/t Ag) and the RPA report noted that this method “overly penalizes the high grades while leaving the lower grade portion of the distribution unaffected.” In the opinion of Mr. Friberg, the above historical Indicated and Inferred resources meet the definitions as stated by NI 43-101, and defined by the Canadian Institute of Mining (CIM) Standards on Mineral Resources definitions and guidelines as adopted by the CIM Council on August 20, 2002.
It is important to understand that the original mining done by the owners in the late 20th century concentrated strictly on the surface oxide enrichment zone. Very little attention was given to the sulfide mineralization at depth that was tested by the El Misti drill program. Very small scale mining has occurred in the sulfide zone and primarily included some of the narrow high grade areas, leaving most of the mineralized material in place for future mining. This mined material was shipped as far as 400 kilometers for milling. In addition, a down-dip mineralized extension of over 50 meters can be projected for additional resources but these are not included in the RPA resource data.
Prior to receiving the RPA 43-101 report, the following Historical Mineral Resource calculations dated April 18, 1994, made by Cia. Mineral San Nicolas S.A., were made available to Western Troy:
| Mineral Resources – San Nicolas Project, Peru* | ||||||||||||||
| Tonnes | Gold | Silver | Copper | Zinc | Lead | |||||||||
| 11,800,000 | 0.075 opt | 5.238 opt | 0.68 | % | 0.96 | % | 1.02 | % | ||||||
| Pounds/Ounces: | 884,056 oz. | 61,832,000 oz. | 176,848,960 lb. | 249,669,120 lb. | 264,273,440 lb. | |||||||||
* Cia. Mineral San Nicolas S.A. Company Reports dated April 18, 1994
These calculations, which have not been verified by Western Troy, do not meet the classification and guidelines as adopted by the CIM Council. The documentation of this reported resource included the term “Inferred Surface Resources” but Mr. Friberg was unable to verify whether the surface resources meet the CIM standards for Inferred Resources. The reported resource includes the projection of mineralization approximately 70 meters below the lowest underground drift level. As noted above, the El Misti drilling and the RPA report did not include these potential resources in their estimates nor did they use any of the extensive underground sampling. It is the opinion of Mr. Friberg that the Cia. Mineral San Nicolas S.A. calculations will require further study to determine the validity for future reporting. Mr. Friberg noted that he has not done sufficient work to classify the Cia. Mineral San Nicolas S.A. estimate as current mineral resources, and Western Troy is not treating the historical estimate as current mineral resources.
Not included in any mineral resource estimations are mill tailings reported by Cia. Mineral San Nicolas S.A. to include 2,250,000 tonnes that were processed by the Cosinsa mill in the past. These tailings were viewed during the property examination but were not verified for volume or tonnage. Two assays are pending that were taken on the tailings. The historical tonnage data of this material currently do not meet current NI 43-101 definitions but are relevant for future evaluation in that they may contain mineral value.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/116a9ea6-79f6-4d81-bd27-241bb8a102b3
One of the properties included in the transaction is a 24 hectare parcel adjacent to Regulus Resources’ Antakori Project. The adjacent map has been assembled based upon public information. The drill-hole locations and projections have not been independently verified by Mr. Friberg. The rectangle in yellow represents the 24 hectare San Nicolas concession. During the site visit in early July, Mr. Friberg took chip samples of mineralized material from this 24 hectare parcel.
The San Nicolas Properties are located in the Hualgayoc District near Cajamarca, Peru. In 2004, Newmont proposed an expansion of the Yanacocha Gold Mine in the District (the Conga gold and silver project). The expansion was opposed by the people of the District and led to massive and sometimes violent protests, primarily due to potential water pollution from the project. The expansion was defeated. Based on Western Troy’s news release of June 29, 2018, MASGLAS and Western Troy received on July 3, 2018, an unsolicited letter of support signed by 23 community leaders in the Hualgayoc District. The English translation of the letter stated, in part, “Hualgayoc welcomes you and expresses our sincere wishes for success for the future. Please understand that we will do everything possible to always have a good relationship and we help each other.”
Mr. Robert S. Friberg, a Geologist and member of the Society for Mining, Metallurgy, and Exploration (SME) Member Registration No. 4031861RM, has approved the technical data presented in the news release. Mr. Friberg is an independent consultant for Western Troy and acts as the Qualified Person under National Instrument NI-43-101.
Contact Information:
Western Troy Capital Resources Rex E. Loesby, CEO
Tel: 303-771-9610
Email: RexLoesby@gmail.com
Website: www.westerntroycapital.com
CAUTIONARY STATEMENT:
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Western Troy. Forward-looking statements include estimates and statements that describe Western Troy’s future plans, objectives or goals, including words to the effect that Western Troy or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Western Troy, Western Troy provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward- looking information. Forward looking information in this news release includes, but is not limited to, Western Troy’s objectives, goals or future plans, statements (including the terms, conditions and objectives of the Transaction), details of the exploration results, potential mineralization, the company’s portfolio, treasury, management team and enhanced capital markets profile, the receipt of regulatory approvals for the Offering, the receipt of regulatory approvals of the Transaction, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure or inability to complete the Transaction and the Offering on the terms as announced or at all, regulatory approval processes, failure to identify mineral resources, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in Western Troy’s public documents filed on SEDAR. Although Western Troy believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Western Troy disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.