GMV Minerals Inc. Announces Positive Preliminary Economic Assessment (PEA) Study ON Mexican Hat GOLD Project
280 - 1090 West Georgia Street
Vancouver, British Columbia. V6E 3V7
GMV MINERALS INC. ANNOUNCES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT (PEA)
STUDY ON MEXICAN HAT GOLD PROJECT
VANCOUVER, BC, November 07, 2018 – GMV Minerals Inc. (the “Company” or “GMV”) (TSX -V: GMV) is
pleased to release the results of its preliminary economic assessment (the “Study”) for the Mexican Hat Project gold
deposit located in Cochise County, Arizona (“Mexican Hat” or the “project”). GMV Minerals Inc. is a publicly traded
exploration company solely focused on developing precious metal assets in Arizona.
PEA Highlights
The base case assumes a gold price of US$1,3 25/ounce (“oz”). All figures are stated in U.S. Dollars (“$”) unless
otherwise noted. All tonnages are metric tonnes. Precious metal grades are in grams per metric tonne (g/t).
The Technical Report , pursuant to National Instrument (“NI”) 43 -101 guidelines for the Preliminary Economic
Assessment, will be filed on SEDAR within 45 days.
• Mine life of five (5) years with a one-year pre-production period
• Life of mine (“LOM”) head grade of 0.66 g/t gold
• Low LOM Strip Ratio of 2.8
• Total amount of gold recovered is estimated at 470,000 oz
• Average annual gold production of approximately 94,000 oz
• Peak annual gold production of approximately 118,000 oz
• LOM direct operating cash cost is estimated at $647/oz of gold recovered
• All-in sustaining cost is estimated at $747/oz of gold recovered
• LOM sustaining capital costs estimated at $36.4 million
• The Mexican Hat Mineral Resource is currently open in three directions and to depth
Financial Indicators Before Taxes
NPV @ 0% US$133.3 M
NPV @ 5% US$101.0 M
IRR % 33.0%
Payback (years) 2.0
Financial Indicators After Taxes
NPV @ 0% US$113.1 M
NPV @ 5% US$83.9 M
IRR % 29.0%
Payback (years) 2.2
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INITIAL CAPITAL EXPENDITURES ($ MILLIONS)
Mine Initial Fleet Lease $14.9
Pre-Production Waste Removal $15.2
Process $105.0
Owner’s Cost $5.0
Total $140.1
OPERATING COSTS
The mine operating costs were calculated to average $1.84 per tonne moved.
Area Unit Cost (USD$/t moved)
Drilling 0.26
Blasting 0.30
Loading 0.17
Hauling 0.43
Auxiliary Equipment 0.25
Mine and Maintenance General 0.18
Mine General and Administration 0.25
Total Cost 1.84
The life of mine operating costs were calculated to average $12.13/tonne ore.
Cost per Tonne of Ore Processed
Mining $6.62
Process $4.21
G&A $1.30
Total Site Operating Cost $12.13
MINERAL RESOURCES
An updated Mineral Resource Estimate was prepared by Tetra Tech Inc. (Tetra Tech) with an effective date of June 22,
2018 and announced by GMV in a News Release dated July 17, 2018. Details of the Mineral Resource Estimate can be
found in a Technical Report filed on SEDAR and announced by GMV in a News Release dated August 29, 2018.
Category Cut-off (g/t Au) Grade (Au, g/t) Tonnes Gold Oz Strip Ratio
Inferred 0.20 0.616 32,876,000 651,000 2.56
• The Mineral Resource Estimate has been constrained to a preliminary optimized pit shell, using the following parameters: SG = 2.57 gm/cc based on testwork, mining costs =
$1.50/tonne, mining recovery =98%, mining dilution = 2%, process cost = $3.25 per ton ne, G&A = $0.55 per tonne, gold price = $1,300 per troy ounce, throughput at 15,000 tpd,
discount rate = 7%. Top cut at 32 g/t.
• Mineral Resources constrained to optimized pit shells are not mineral reserves and do not have demonstrated economic viabilit y.
• Conforms to NI 43-101, Companion Policy 43-101CP, and the CIM Definition Standards for Mineral Resources and Mineral Reserves. Inferred Resources have been estimated from
geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
• All numbers are rounded. Overall numbers may not be exact due to rounding.
• There are no known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.
MINE PLAN
The mine plan is currently conceived as a conventional hard rock open pit. There are two independent pits which are
developed with five phase or pushback designs. The mine plan produces a nominal ore tonnage to the process plant of
5,475 Ktonnes of ore per year (15,000 tpd) from a total material movement of 20,880 Ktonnes per year (52,200 tpd).
Over the course of the five-year mine life, 25 .1 Mtonnes of mineralization are planned for processing out of a total
material movement of 96.4 Mtonnes.
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The reader is ca utioned that this mine plan is based on a mineral resource which includes inferred category
mineralization. The reader is further cautioned that mineral resources are considered too speculative geologically to have
economic considerations applied to them t hat would enable them to be categorized as mineral reserves. There is no
certainty that the mineral resources will be realized or that they will convert to mineral reserves.
There is no mineral reserve at Mexican Hat at this time. A component of the mineral resource, inclusive of inferred
mineralization has been designated as potentially minable material for this PEA. This material does not constitute a
mineral reserve and any reference to the word “ore” is for convenience of defining material that i s planned for
processing in the Preliminary Economic Assessment (PEA).
INFRASTRUCTURE & PROCESS PLANT
The Mexican Hat Project is located in the southeastern part of the State of Arizona, approximately 115 km east -
southeast of Tucson, and can be accessed from the Old Ghost Town Rd., a gravel road extending south of the Town
of Pearce or north from Gleeson Rd.
Groundwater will be used as the source of water for mining operations. No permitting restrictions or quantity issues
are anticipated.
A 69 kV powerline to site will be supplied by Sulphur Springs Valley Electric Cooperat ive. The power plant is located
30 km north of the site.
The crushing plant will produce ore with a 25 mm top size to be stacked on the heap. Pregnant solution from the heap
leach will be processed in a conventional adsorption desorption recovery ( ADR) plant. The process plant includes a
refinery that will produce doré bars.
TECHNICAL REPORT
A National Instrument 43 -101 (NI 43 -101) compliant technical report entitled " Mexican Hat Project NI 43 -101
Technical Report, Preliminary Economic Assessment" prepared by the following Qualified Persons will be filed by the
Company within 45 days of this release on www.sedar.com:
• Daniel Roth, PE, P.Eng. of M3 Engineering & Technology – Process Plant and Infrastructure Capital Costs, and
Economic Analysis.
• Justin Black, PE of M3 Engineering & Technology – Recovery Methods and Process Operating Costs.
• Dave Webb, PhD., P.Geo., P.Eng. of DRW Geological Consultants Ltd – Property Description and Location,
Accessibility, Climate, Local Resource, Infrastructure and Physiography, History, Geological Setting and
Mineralization, Deposit Types, Exploration, Drilling, Sample Preparation, Analysis and Security, Data
Verification.
• John M. Marek, RM-SME of Independent Mining Consultants, Inc. – Mining Methods, Mine Operating Costs,
Mine Capital Costs.
• James Barr, P.Geo. of Tetra Tech – Mineral Resource Estimate.
• John Fox, P.Eng. of Laurion Consulting Inc. – Mineral Processing and Metallurgical Testing.
• Dawn H. Garcia, CPG, P.G. – Environmental.
All Qualified Persons have contributed to their corresponding sections in Interpretation and Recommendations. The
Qualified Persons have reviewed and approved the scientific, technical, and economic information obtained in this news
release.
Ian Klassen, President of the Company states “We are pleased with these results as they demonstrate that the mineralization
found to date is potentially economic with robust net operating revenues.” The metallurgical results enable excellent
recoveries at a coarse crush, keeping costs low. The Company wishes to confirm its internal economic assumptions to the
public and can now focus on further expansion of the deposit. Development drilling will focus on:
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1. Extensions to the known resource by six to eight step-out holes totaling around 2,500 m.
2. Infill drilling of two to three drill holes totaling 700 to 800 m to discover additional gold resources within the pit,
currently considered waste, due to a lack of drill test data. In addition, the program is expected to confirm a higher-
grade domain located approximately 100 m from surface and within the pit.
3. To add expected positive infill drilling assays into the PEA model.
In addition, certain recommendations regarding the collection of geotechnical, water, and environmental data can be
collected with the next drill program enabling refinement of the economic model in future updates.
A PEA, as defined under the terms of National Instrument 43 -101 Standards of Disclosure for Mineral Projects (NI
43-101), is an economic analysis intended to examine the potential viability of a mineral project. A PEA analyzes and
assesses geological, engineering, and economic factors to reach its conclusions.
About GMV Minerals Inc.
GMV Minerals Inc. is a publicly traded exploration company focused on developing precious metal assets in Arizona.
GMV, through its 100% owned subsidiary, has a 100% in terest in a Mining Property Lease commonly referred to as
the Mexican Hat project, located in Cochise County, Arizona, USA. The project was initially explored by Placer Dome
(USA) in the late 1980's to early 1990's. GMV is focused on developing the asset and realizing the full mineral potential
of the property through near term gold production. The Company recently updated its inferred mineral resource to
32,876,000 tonnes grading 0.616 g/t gold at a 0.2 g/t cut-off, containing 651,000 ounces of gold.
ON BEHALF OF THE BOARD OF DIRECTORS
________________________________________
Ian Klassen, President
Neither 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.
For further information please contact:
GMV Minerals Inc.
Ian Klassen
Tel: (604) 899-0106
Email: [email protected]
This news release may contain forward -looking statements based on assumptions and judgments of management of the Company regarding future
events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from
those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements except as
may be required by law.