Havilah Mining Corporation Announces Successful Season from the Tailings Reprocessing Project
HAVILAH MINING CORPORATION ANNOUNCES SUCCESSFUL SEASON FROM THE TAILINGS
REPROCESSING PROJECT
TORONTO, ON, December 13, 2018 /CNW/ – Havilah Mining Corporation (TSXV: HMC) ("Havilah" or the
"Company") is pleased to announce a successful season from the tailings reprocessing project. In April of
2018, Klondex Mines Ltd. ( “Klondex”), acquired by Hecla Mining Company (“Hecla”) on July 20 , 2018,
commenced reprocessing operations at the True North facility (“True North”) in Bissett, Manitoba. After
the acquisition by Hecla , Havilah, which now h olds the True North assets, continued the reprocessing
operations. Under the stewardship of the Havilah team, True North produced approximately 3,200 ounces
of gold in roughly 4 months. The average grade was approximately 1 g/t and the operation ran at an
approximate rate of 990 tons per day.
“With the exemplary efforts from the staff, we were able to grow the balance sheet from $9 million and
no liabilities to approximately $9.7 million in cash today, and a strong working capital balance of $ 12 to
13 million. During the winter we expect to use cash while on care and maintenance, however we believe
the tailings reprocessing project will continue on this positive trend in the 2019. Meanwhile, we look
forward to the start of our 2019 exploration programs to test the potential of this exceptional land
package.”
With the change in weather conditions at the True North site , the Company has temporarily shut -down
the tailings reprocessing operations. The Company expects to restart operations in April of 2019, however
the exact start date is weather dependent and may vary slightly. During this shut down, the Company has
identified a number of items that require upgrade work, which should allow for an increase in throughput
during next year’s operating season. Approximately 35 positions at the operations will be displaced during
this shut down.
“Our employees worked hard to operate our facilities and to adjust to the changes with in our business,”
said Mr. Schultz, interim CEO and President. “I want to thank each and eve ry one of them for a job well
done. This was a difficult decision because of the impact on employees, but it is a necessary step to ensure
we stay in control of our costs as we look to improve our future outlook.
In the future the Company plans to operate the tailings reprocessing project at the True North facility on
a seasonal basis while continuing exploration activity year- round. This will improve the overall
sustainability of the operations while continuing to retain key personnel and perform annual
maintenance.
About Havilah Mining Corporation
Havilah is a junior gold producer that owns the True North mine and mill complex and is currently
reprocessing historic tailings. In add ition to operating True North in Bissett, Manitoba, Havilah owns
approximately 43,000 hectares of highly prospective land within and adjacent to the Rice Lake belt.
Havilah believes their land package is a prime exploration opportunity to develop a mining district with a
central milling facility. The Company also owns the Tully project near Timmins, Ontario. The Company
intends to focus on both organic growth opportunities and accretive acquisition opportunities in North
America.
Havilah's True North complex and exploration land package are located within the traditional territory of
the Hollow Water First Nation, signatory to Treaty No. 5 (1875). Havilah looks forward to maintaining
open, co-operative and respectful communication with the Hollow Water First Nation in order to build
mutually beneficial working relationships.
ON BEHALF OF THE BOARD OF DIRECTORS
Blair Schultz
Chairman, Interim President and Chief Executive Officer
Cautionary Statement Regarding Forward Looking Information:
This press release may contain forward -looking statements. Often, but not always, forward -looking
statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or describes a "goal", or variation 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.
This press release may contain forward -looking statements. Often, but not always, forward -looking
statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anti cipates" or "does not
anticipate", or "believes", or describes a "goal", or variation 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.
All forward -looking statements reflect the Company's beliefs and assumptions based on information
available at the time the statements were made. Actual results or events may differ from those predicted
in these forward -looking statements. All of the Company's forward -looking statements are qualified by
the assumptions that are stated or inherent in such forward -looking statements, including the
assumptions listed below. Although the Company believes that these assumptions are reasonable, this list
is not exhaustive of factors that may affect any of the forward-looking statements.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties
and other factors which may cause the actual results, performance or achievements to be materially
different from any future results, prediction, projection, forecast, performance or achievements
expressed or implied by the forward -looking statements. All statements that address expectations or
projections about the future are considered forward -looking statements, including, but not limited to:
statements relating to the continued processing of the tailings material at the True North mine and mill
complex, and the timing and results thereof; the continued financial health of the Company and its ability
to raise additional capital as needed; and any exploration success and ability to develop any future mining
operations within the Company’s extensive land position, and the results and timing thereof. Although
Havilah has attempted to identify important factors that could cause actual actions, events or results to
differ materially from those described in forward -looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance
that forward-looking 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.
The Company disclaims any intention or obligation to update or revise any forward -looking statements
whether as a result of new information, future events, or otherwise, except in accordance with applicable
securities laws.
Neither the TSXV nor its Regulatory Services Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this news release.