Braveheart Announces Positive Preliminary Economic Assessment for Thierry Mine Project
Braveheart Announces Positive Preliminary
Economic Assessment for Thierry Mine
Project
Calgary, Alberta--(Newsfile Corp. - January 14, 2021) -
Braveheart Resources Inc.
(TSXV: BHT)
(OTCQB: RIINF)
("
Braveheart
" or the "
Company
") is pleased to announce the completion of a
positive
Preliminary Economic Assessment ("PEA") for its newly acquired Thierry Mine Project
("Thierry") near Pickle Lake, Ontario.
The PEA was independently prepared by P&E Mining Consultants
Inc. ("P&E") of Brampton, Ontario under the supervision of Eugene J. Puritch, P.Eng., FEC, CET.
Highlights of the PEA
This PEA is focused solely on mining of the Mineral Resources at the Thierry underground mine and
provides a solid base case for moving the Project forward.
The PEA indicates a 14-year mine plan
based on a 4,000 tonne per day underground mining and processing operation.
The mine plan assumes
the potentially extractable tonnage of Measured, Indicated and Inferred Mineral Resources is diluted by
20% and a 90% mine recovery factor is applied.
Measured and Indicated Mineral Resources represent
8,131,000 tonnes at 1.46% Cu, 0.18% Ni and 3.7 g/t Ag.
Inferred Mineral Resources represent
11,507,000 tonnes at 1.46% Cu, 0.15% Ni and 6.1 g/t Ag.
Palladium, platinum and gold do not make
material contributions to metal revenues.
Metal prices are based on long-term industry consensus with copper representing the primary
contribution to revenues.
US metal prices used in the PEA were $3.48/lb Cu, $8.00/lb Ni, $21.00/oz Ag,
$1,250/oz Pd, $1,100/oz Pt and $1,600/oz Au.
A USD exchange rate of 0.75 is applied.
Life of mine ("LOM") processing recovers 880,000 tonnes of copper concentrate at 30% Cu.
In addition,
157,000 tonnes of nickel concentrate at 8% Ni are recovered.
This results in 567,000,000 lbs of payable
Cu and 21,000,000 lbs of payable Ni.
LOM revenues from net smelter returns are estimated at $2,579
million.
LOM operating costs are $1,063 million.
Mining costs are estimated at $38.64 per tonne, processing
costs are $14.47 per tonne and G&A costs are $5.30 per tonne.
C1 cash operating costs are $1.43/lb in
CuEq and all-in sustaining costs ("AISC") are $1.98/lb in CuEq.
LOM capital costs are estimated at $710 million and include pre-production capital costs of $407
million.
LOM cash flow in terms of EBITDA is $1,516 million.
Pre-tax Net Present Value ("NPV") is estimated at $373 million using a 6% discount rate.
Pre-tax
Internal Rate of Return ("IRR") is 23%.
Net cash flow of $1,516 million less taxes of $256 million and capital expenditures of $710 million results
in an after-tax cash flow of $549 million.
After-tax NPV using a 6% discount rate is estimated at $242
million.
After-tax IRR is 19%.
The prior independent National Instrument 43-101 ("NI 43-101") Technical Report and Mineral Resource
Estimate for the Thierry Project was completed by P&E Mining Consultants Inc. in February 2012 and is
available on Cadillac Venture Inc.'s SEDAR profile at
www.sedar.com
. The previous 2012 Thierry and
K1-1 Mineral Resource Estimates have been reviewed taking into account current metal prices, US$
exchange rate trailing averages and recently updated operating costs. P&E's findings are that the 2012
Mineral Resource Estimates are valid for use in the PEA. The current Thierry underground Measured
and Indicated Mineral Resource is 8,815,000 tonnes at a grade of 1.66% Cu and 0.19% Ni.
There are a
further 14,922,000 Inferred tonnes at a grade of 1.64% Cu and 0.16% Ni.
The Thierry Project also
contains a near surface current Inferred Mineral Resource at the K1-1 Deposit of 53,614,000 tonnes at a
grade of 0.38% Cu and 0.10% Ni.
Lesser amounts of palladium, platinum, gold and silver occur in all
deposits.
Ian Berzins, President and CEO of Braveheart commented: "We are extremely pleased with the results
of the PEA which is focused solely on the current underground Mineral Resource.
There remains
excellent potential to increase and upgrade the quality of the near surface mineralization at Thierry
particularly at the K1-1 location thereby adding additional years of production or providing the basis for
an increase in annual throughput.
Braveheart acquired a 100% interest in the Thierry Property for
approximately $2.19 million in cash and shares so this result is extremely accretive.
Braveheart now has
two significant copper projects in favourable Canadian mining jurisdictions."
Qualified person
Braveheart's disclosure of a technical or scientific nature in this news release has been reviewed and
approved by Eugene J. Puritch, P.Eng., FEC, CET who is independent of the Company and a Qualified
Person under the definition of National Instrument 43-101.
A NI 43-101 Technical Report will be filed on
SEDAR within 45 days of this press release.
About Braveheart Resources Inc.
Braveheart is a Canadian based junior mining company focused on building shareholder value through
exploration and development in favourable Canadian mining jurisdictions at or near past-producing
properties.
Braveheart's main asset is the 100% owned Bull River Mine project near Cranbrook, British
Columbia which has a current Mineral Resource containing copper, gold and silver.
Braveheart's newest
acquisition is the 100% owned Thierry Mine project near Pickle Lake, Ontario containing copper, nickel,
palladium, platinum, gold and silver.
Contact Information
Braveheart Resources Inc.
Ian Berzins
President & Chief Executive Officer
M: +1-403-512-8202
Website:
www.braveheartresources.com
For more investor information, please contact Braveheart at:
Kevin Shum
O: +1-647-725-3888 Ext 702
M: +1-604-376-0323
E:
E:
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under
applicable Canadian securities legislation. Forward-looking information includes, but is not limited to,
statements about strategic plans, future work programs and objectives and expected results from such
work programs. Forward-looking information necessarily involve known and unknown risks, including,
without limitation, risks associated with general economic conditions; inability to access sufficient
capital from internal and external sources, and/or inability to access sufficient capital on favourable
terms; and other risks.
Forward-looking information is necessarily based upon a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors
which may cause the actual results and future events to differ materially from those expressed or
implied by such forward-looking information and the risks identified in the Company's continuous
disclosure record. There can be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on forward-looking information. All forward-
looking information contained in this news release is given as of the date hereof and is based upon
the opinions and estimates of management and information available to management as at the date
hereof. The Company disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise, except as required by
law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new
release.
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