GoldMining Completes Acquisition of the Crucero Gold Project in Peru from Lupaka Gold
GoldMining Completes Acquisition of the Crucero Gold Project
in Peru from Lupaka Gold
Highlights:
Acquisition of a 100% interest in the Crucero Gold Project in
Southeastern Peru
;
Lupaka previously reported a pit constrained
indicated resource of 1.00 million ounces grading 1.01 g/t gold and aninferred
resource of 1.03 million
ounces grading 1.03 g/t gold at a 0.4 g/t gold cut-off at the Project (see Table 1 below). GoldMining is treating
this estimate as a historic estimate and plans to engage a qualified person to complete the necessary work to verify the estimate and
complete an independent technical report (see below);
Approximately 23,000 m of diamond drilling over 72 holes have been completed historically; and
Total consideration at closing will be 3,500,000 common shares and
$750,000
in cash representing less than 3% dilution to GoldMining
shareholders.
VANCOUVER
,
Nov. 21, 2017
/CNW/ -
GoldMining Inc. (the "
Company
" or "
GoldMining
") (TSX-V: GOLD; OTCQX: GLDLF)
is
pleased to announce that, further to its news release dated
September 19, 2017
, the Company has completed its acquisition of the Crucero Gold
Project (the "Project") located in
Southeastern Peru
from Lupaka Gold Corp. ("Lupaka"). This transaction represents GoldMining's first
acquisition in
Peru
, which is among the world's largest producers of gold, copper and silver, and ranks as one of the most attractive jurisdictions
for mining investment in
Latin America
(Fraser Institute, 2016).
Amir Adnani
, Chairman of GoldMining, commented: "We are very pleased to close on our third meaningful gold resource acquisition this year, a
testament to the hard work and dedication of our team in identifying and executing on our vision of consolidating gold assets in the Americas. Peru
is a highly regarded mining jurisdiction, and we're keen to establish our presence in-country with the acquisition of Crucero. We look forward to
working with our technical staff and consultants to update the resource at Crucero in the coming months, further building upon our already sizeable
resource base to maximize gold leverage for our shareholders."
Garnet Dawson
, CEO of GoldMining, commented: "The Project is in the Puno Orogenic Gold Belt, which is seeing renewed exploration activity
and is the source of extensive alluvial placers in the region. With this acquisition, we will be acquiring not only a project in a favourable mining
jurisdiction with a historic pit-constrained resource, but also one that has had significant historical investment and exploration that has identified
numerous targets for follow-up exploration."
The Transaction
Pursuant to the Agreement, GoldMining has acquired all of the shares of a wholly owned subsidiary of Lupaka, which holds a 100% interest in the
Project. Total consideration payable by GoldMining to Lupaka under the transaction is 3,500,000 common shares of GoldMining (the
"GoldMining Shares") plus
$750,000
in cash.
The GoldMining Shares issued under the transaction are subject to certain resale restrictions pursuant to the terms of the Agreement.
The Project
The Project is located 150 km northeast of the city of Juliaca in the Department of Puno, in southeastern
Peru
. The Project is road accessible by
paved road from Juliaca to the town of Crucero, with the remaining 50 km to site by gravel road. High-power electrical lines pass within 8 km of
the property.
The Project is comprised of three mining and five exploration concessions with an aggregate area of 4,600 hectares. The three mining concessions
are held indirectly by a subsidiary of GoldMining through a 30-year assignment from a third party running until 2038 and are subject to certain net
smelter return royalties of 1-5%, based on monthly gold prices.
Historic exploration programs have focused on the A1 deposit, however geophysical and geochemical surveys have identified 10 additional targets
(A2 to A11) for follow-up exploration. The A1 deposit, as currently defined by trenching and drilling, strikes northwest and dips vertically to
steeply to the northeast. The deposit is approximately 750 m long by 100 m in width and has been traced to a vertical depth of 400 m, but most
of the drilling is confined to within 250 m of surface. The deposit is open at depth and along strike to the northwest and southeast. The orogenic
gold mineralization is associated with sulphide veins hosted within strongly deformed metasedimentary rocks.
The A1 deposit was the subject of a resource estimate published by Lupaka in 2013 (Table 1), which will be treated as a historic estimate by
GoldMining. The conceptual pit delineated resource was based on 72 diamond drill holes (approximately 23,000 m) and is reported within a
conceptual pit shell. High-grade gold values were capped at 17 g/t gold with 5 assays falling above this value. Average bulk density of 2.85 g/cm
3
was used to convert block model volumes to tonnages.
Table 1: A1 deposit historical pit constrained resource estimate published by Lupaka in 2013.
Cut-off
Tonnes & Grade
Contained Metal
Resource
Category
Au
(g/t)
Tonnes
(Mt)
Au
(g/t)
Au
(Moz)
Indicated
0.40
30.9
1.01
1.00
Inferred
0.40
31.2
1.03
1.03
The following assumptions / parameters were utilized by Lupaka to establish the conceptual pit:
Parameter
Value
Unit
Gold Price
1,400
US$/oz
Mine Operating Cost (Mineralization and Waste)
1.50
US$/t milled
Process Operating Cost
13.00
US$/t milled
General & Administrative
2.00
US$/milled
Overall Pit Slope
47
Degrees
Gold Process Recovery
90
%
Mining Dilution
5
%
Mining Recovery
100
%
The above resource estimate is historical in nature and will not be treated as a current resource estimate by the Company as a qualified person has
not done sufficient work on behalf of the Company to classify the historical estimate as a current mineral resource. The Company believes the
historical estimate provides an indication of the potential of the property and is relevant to any future exploration. The historical resource estimate
for the Project is set forth in the technical report completed for Lupaka by
Gregory Z. Mosher
, M.Sc., P.Geo. of Tetra Tech WEI Inc. and
Anoush Ebrahimi
, P.Eng. of SRK Consulting (
Canada
) Inc. titled "Technical Report for the Crucero Property, Carabaya Province,
Peru
" with an
effective date of
January 17, 2013
(amended and re-stated
October 22, 2013
).
No new drilling or sampling has been completed on the A1
deposit since the above resource estimate was completed. However, GoldMining intends to engage an independent qualified person to, among
other things, examine the cut-off grade with reference to today's metal prices, verify historic sampling and results and complete a technical report,
including a current resource estimate on behalf of the Company.
Advisors
Haywood Securities Inc. ("Haywood") has advised GoldMining in connection with the transaction, and Sangra Moller LLP and CMS Grau are
acting as legal counsel to GoldMining.
GoldMining has issued 90,587 common shares of the Company to
Haywood
in connection with its fees under the transaction.
Qualified Person
Paulo Pereira
, President of GoldMining Inc. has reviewed and approved the technical information contained in this news release. Mr. Pereira
holds a Bachelors degree in Geology from Universidade do Amazonas in
Brazil
, is a Qualified Person as defined in National Instrument 43-101
and is a member of the Association of Professional Geoscientists of
Ontario
.
Cautionary Note
Investors are cautioned not to assume that any part or all of the mineral deposits in the "indicated" and "inferred" categories will ever be converted
into mineral reserves with demonstrated economic viability or that inferred mineral resources will be converted to the measured and/or indicated
categories through further drilling. In addition, the estimation of inferred resources involves far greater uncertainty as to their existence and
economic viability than the estimation of other categories of resources. Under Canadian rules, estimates of Inferred Mineral Resources may not
form the basis of feasibility or other economic studies.
About GoldMining Inc.
GoldMining Inc. is a public mineral exploration company focused on the acquisition and development of gold projects in the Americas.
GoldMining is advancing its Titiribi and La Mina Gold-Copper Projects located in the Department of Antioquia,
Colombia
, its São Jorge and
Cachoeira Gold Projects located in the State of Pará, northeastern
Brazil
, its Whistler Gold-Copper Project located in the
State of Alaska
,
United
States of America
, its Yellowknife Gold Project located in the
Northwest Territories, Canada
and its Rea Uranium Project in the western
Athabasca
Basin in northeast
Alberta, Canada
.
Forward-looking Statements
This document contains certain forward-looking statements that reflect the current views and/or expectations of GoldMining with
respect to its business and future events, including expectations and future plans respecting the Project and completion of a current
resource estimate by GoldMining on the Project. Forward-looking statements are based on the then-current expectations, beliefs,
assumptions, estimates and forecasts about the business and the markets in which GoldMining operates, including that GoldMining will
confirm historical exploration results and historical resource estimates. Investors are cautioned that all forward-looking statements
involve risks and uncertainties, including: the inherent risks involved in the exploration and development of mineral properties, the
uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development
activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results
will not be consistent with GoldMiningꞌs expectations, accidents, equipment breakdowns, title and permitting matters, labour disputes or
other unanticipated difficulties with or interruptions in operations, fluctuating metal prices, unanticipated costs and expenses,
uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the
Project, and that GoldMining may not be able to confirm historical exploration results or complete a current resource estimate for the
Project. These risks, as well as others, including those set forth in GoldMiningꞌs filings with Canadian securities regulators, could cause
actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and
information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such
forward looking information, will prove to be accurate. GoldMining does not undertake any obligations to release publicly any revisions
for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Providers (as that term is defined in the
policies of the TSX Venture Exchange and the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news
release.
SOURCE
GoldMining Inc.
View original content: http://www.newswire.ca/en/releases/archive/November2017/21/c5185.html
%SEDAR: 00025119E
For further information:
GoldMining Inc., Amir Adnani, Chairman, Garnet Dawson, CEO, Telephone: (855) 630-1001, Email:
CO: GoldMining Inc.
CNW 09:25e 21-NOV-17