Pine Point Mining Limited (TSX VENTURE:ZINC) (“Pine Point” or the “Company“) is pleased to announce that is has negotiated and signed two Exploration Agreements (EA) with three First Nations groups in the Northwest Territories. The first agreement is jointly between the Deninu Kue First Nation (DKFN) and the Fort Resolution Metis Council (FRMC) (the “Coalition”) and the second exploration agreement is with the Kátl’odeeche First Nation (KFN). These First Nations groups are located near the towns of Hay River and Fort Resolution, near the previous Pine Point mine site where the Company’s property is located. These agreements establish a commitment by all parties for a mutually beneficial, co-operative and productive working relationship with respect to exploration activities within the Coalition’s and the Kátl’odeeche First Nation’s traditional territory for the potential development of the Pine Point Project.
The agreement allows for Pine Point, the Coalition and the KFN to cooperatively establish a long-term relationship based on mutual respect and openness towards developing an Impact Benefits Agreement (IBA) for eventual production. Pine Point recognizes that its proposed Exploration Program will potentially impact the First Nation’s traditional lands, their relationship with the land, water and resources, their social and cultural values, their way of life and the environment, and therefore wanted to take positive steps towards development of a respectful relationship with the First Nation. Pine Point intends to conduct its Exploration Program in a manner which is beneficial to the First Nation’s and their traditional territory.
John Key, Chief Operating Officer of the company stated, “I am extremely pleased and impressed with the desire of each of these leaders to bring development to the South Slave region that will benefit the aboriginal residents while protecting the traditional land uses and cultural quality of the Pine Point area. I look forward to working with these forward-thinking groups in the exploration and eventual development of the Pine Point in a manner that is respectful to their values and desires. I thank each of the leaders, their councils and the people of the KFN, DKFN and the FRMC for the honest and open discussions.”
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.
Stanley Clemmer, a Qualified Person under NI 43-101, reviewed and approved the scientific and technical information presented in this press release.
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.
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