As a result of a review by the British Columbia Securities Commission, Strongbow Exploration Inc. (TSX-V: SBW) is issuing the following news release to clarify disclosure regarding the mineral resource estimate contained in the NI 43-101 Technical Report for the South Crofty tin project announced April 19, 2016, and filed on SEDAR June 1, 2016.
The resource estimate comprises two zones:
- A Lower Mine tin-only resource;
Lower Mine Mineral Resource Estimate at 0.60% Sn Cut-Off Tonnes (‘000s) Sn Grade Contained Sn (tonnes) Indicated Resource 1,660 1.81% 30,000 Inferred Resource 738 1.91% 14,100
- An Upper Mine polymetallic resource, comprising tin, copper and zinc, previously reported as a tin equivalent (SnEq) grade only. Strongbow failed to provide details for each metal in the SnEq grade for the Upper Mine Resource in its news release dated April 19, 2016. This detail is provided below and the disclosure has been added to all other public documents where applicable.
Upper Mine Mineral Resource Estimate at 0.60% SnEq Cut-off (1-12) Tonnes (k) Sn % Cu % Zn % SnEq % Indicated Resource 257 0.70 0.79 0.58 0.99 Inferred Resource 464 0.67 0.62 0.63 0.91
Additional detail can be accessed from the NI 43-101 Technical Report on the Company's SEDAR page or from Strongbow's website at www.strongbowexploration.com
- CIM definitions were followed for Mineral Resources.
- The Qualified Persons for this Mineral Resource estimate are: Richard Routledge, M.Sc. (Applied), P.Geo. and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc.
- Mineral Resources are estimated by conventional 3D block modelling based on wireframing at a 0.50% SnEq cut-off grade and inverse distance to the power of 3 grade interpolation. The 0.5% Sn/SnEq cut-off for wireframing vs 0.6% Sn/SnEq cut-off for resource reporting is due to a shift to lower Sn prices between the commencement and finalization of this report.
- SnEq is calculated using the formula: %SnEq = Sn% + (Cu% x 0.311) + (Zn% x 0.084).
- For the purpose of resource estimation, assays were capped at 20% Sn for the Lower Mine and 6% for Sn, 4% for Cu and 20% for Zn for the Upper Mine.
- The 0.6% Sn/SnEq resource cut-off grade was derived from the approximate March 31, 2016 two year LME trailing average Sn price of US$8.50/lb, Cu price of US$2.75/lb, and Zn price of US$0.90/lb, 88.5%, 85% and 70% respective process recoveries, smelter payable of 95% and Sn refining charges of US$0.25.lb. Operating costs used were US$55/t mining, US$27/t processing and US$9/t G&A.
- Bulk densities of 2.77 tonnes/m3 and 3.00 tonnes/m3 have been applied for volume to tonnes conversion for the Lower and Upper Mine, respectively.
- Mineral Resources are estimated from near surface to a depth of approximately 869 m.
- Mineral Resources are classified as Indicated and Inferred based on drill hole and channel sample distribution and density, interpreted geologic continuity and quality of data.
- The mineral resources have been depleted for past mining, however, they contain portions that may not be recoverable pending a future engineering study.
- Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
- Figures in table are rounded and may not sum exactly.
Mr. Eugene Puritch, P. Eng., lead author of the NI 43-101 Technical Report and a "Qualified Person" as defined in NI-43-101 has reviewed and approved the contents of this news release.
For additional information please contact:
|Chief Executive Officer|
|(604) 638 8005|
|Blytheweigh (Financial PR/IR – London)|
|+44 (0) 207 138 3204|
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
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 statements" related to the estimation of a mineral resource.
The mineral resource figures referred to in this press release are estimates and are therefore insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of the technical or economic viability and no assurances can be given that mining of the South Crofty project will be technically viable or that the indicated levels of tin will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practises. Valid estimates made at any given time may significantly change when new information becomes available. While the Company believes that the resource estimates included in this press release are well established, by their very nature, resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company.
Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt of regulatory approvals, the successful integration of acquisitions; risks related to general economic and market conditions; risks related to the availability of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in mineral resources or grade; 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; changes in national and local government regulation of mining operations, tax rules and regulations.
Although Strongbow has attempted to identify important factors that could cause actual results to differ materially from those contained in 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 statements 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 statements. Strongbow undertakes no obligation or responsibility to update forward-looking statements, except as required by law.