Pine Point Mining Limited (TSX VENTURE:ZINC) (“Pine Point” or the “Company“) is pleased to announce that Quantec Geoscience has begun a ground gravity survey over several underexplored portions of the Company’s large lead-zinc property near Hay River, Northwest Territories. The survey will include 97 line-kilometres at 100 metre line spacing, and follow-up with 50 metre lines where any anomalies are identified. Modelling of known deposits has demonstrated that prismatic and all but the smallest/deepest tabular ore bodies should have a clear gravity response.
One of the key targets of the survey is the former townsite of Pine Point. When the original mine and Pine Point townsite were built by Cominco in 1962-64, the known mineralization was in two trends, known as the Main and North trends. In 1965, another company found the X-15 deposit and in doing so discovered a new mineralized area now known as the South Trend. Cominco acquired the deposit and went on to mine 17.4 million tonnes grading 6.2% zinc and 2.0% lead by open pit. Several other deposits were also discovered along that trend, which provided about 30% of the historical production at Pine Point. The South Trend went directly through the Pine Point townsite, which was withdrawn from staking for several decades. The survey will target both prismatic and tabular type deposits along a 3.3 km portion of the South Trend under the former town site (see survey map).
A survey will also be conducted around the former Pine Point mill site, which was also under-explored. Any targets outlined in this survey will be drilled as part of the fall drilling program expected to begin in early October.
In November, a heli-borne gravity gradiometer survey will be conducted in the western portion of the North Trend, covering an additional 709 line-kilometres at 50 metre line spacing, which will be followed up by drilling over the coming winter.
Stephen Reford, P.Eng., a Qualified Person under NI 43-101, reviewed and approved the scientific and technical information presented in this press release.
About Pine Point Mining Limited
Pine Point Mining acquired a 100% interest in the Pine Point lead-zinc project in December, 2016. Since that time a positive Preliminary Economic Assessment (PEA) on the project showing a robust mining operation which, over a 13-year mine life, would have an after-tax net present value of $C210.5 million and internal rate of return of 34.5%, with a payback of 1.8 years. The study assumed a zinc price of US$1.10 per pound and a lead price of US$1.00 per pound, and used an exchange rate $C:$US of 0.75. The PEA was prepared by JDS Energy and Mining and is based on a mineral resource estimate for the Pine Point project published as a National Instrument 43-101 technical report with an effective date of April 18, 2017.
Readers are cautioned that the Pine Point 2017 PEA is preliminary in nature and includes the use of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized. There is no certainty that the inferred resources will be converted to the indicated or measured categories, or that the potential measured or indicated resources would be converted to the proven or probable mineral reserve categories. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The estimates of mineral resources in the PEA and the mineral resource statement may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues. The Pine Point 2017 PEA recommends that the project be advanced to a feasibility-level study in order to increase confidence in the estimates.
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Pine Point expects are forward-looking statements. Although Pine Point believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Pine Point, investors should review registered filings at www.sedar.com.
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.
Pine Point Mining Limited
President and Chief Executive Officer
Renmark Financial Communications Inc.
(416) 644-2020 or (514) 939-3989
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