Corporate Update; PL Mine Drilling Program Underway, PL Mine Feasibility Study Gold Price Leverage and Option Grants
Corporate Update; PL Mine Drilling Program
Underway, PL Mine Feasibility Study Gold
Price Leverage and Option Grants
Toronto, Ontario--(Newsfile Corp. - July 30, 2020) -
Minnova Corp. (TSXV: MCI) (OTC Pink: AGRDF)
("
Minnova
" or the "
Company
"), a discovery-stage exploration and advanced development-stage gold
company focused on the expansion and re-start of our 100% owned PL Mine in central Manitoba is
pleased to provide a corporate update on our recently initiated PL Mine drill program.
Following the
close of a flow though financing on July 16, 2020 we initiated drilling on July 17, 2020.
The drill program calls for approximately 2,000 meters of drilling focused outside of the current PL
mineral resource and reserve to demonstrate the exploration and resource expansion potential on the
permitted mining lease.
Following the conclusion of the drill program work will shift to property wide
surface exploration and prospecting to trace the strike extensions of the PL deposit trend, the PL North
Extension Trend and an emerging new trend identified in current drilling hosted within the footwall
Tonalite.
In Table 1 (below) we have summarized the drill program details to date including geologist
observations of mineralized intercepts.
The holes are designed to test the vein/structure at shallow
depths (-50m to -150m).
All drill holes and vein/structure intercepts are located on the permitted Mineral
Lease within 350m of the PL Mill and other PL Mine site infrastructure.
Results to date appear to be
defining a new mineralized vein/structure within the Tonalite that typically occurs in the footwall of the
main PL deposit.
If the assay results confirm the visible gold observed in the core the area could be
rapidly advanced with additional drilling and included in a future NI 43-101 resource estimate and
possibly included in an updated feasibility study.
Table 1: PL Gold Mine - 2020 Mineral Lease Drill Program Results to July 30, 2020
Hole ID
Easting
Northing
Dip
Azimuth
Hole
Depth
Mineralization
Intercept
Mineralization
Description
from
to
M-20-01
373028
6100986
90
223
161
103.3
107.3
V.G. qzvn w/
apy-py-po-cpy
M-20-02
373028
6100986
70
223
140
85.05
91.12
V.G. qzvn w/
apy-py-po-cpy
M-20-03
373051
6100947
90
227
161
98.46
99.5
qzvn w/ py-po
M-20-04
373051
6100947
70
227
110
87.8
91.6
qzvn w/ py-po-
apy
M-20-05
373051
6100947
45
227
110
88.9
95.3
qzvn w/ py-po-
apy
M-20-06
373082
6100932
90
230
152
122.85
123
qzvn w/ py-po-
apy; 111.5-
112.4m w/ D2
qtz-py-po
M-20-07
373089
6100933
45
230
134
93.8
94.8
qzvn w/ py-po-
asp
M-20-08
373101
6100967
90
230
161
132.2
135.6
qzvn w/ asp-py-
po
M-20-09
372984
6100932
70
230
In progress
Notes: V.G. - visible gold observed, qzvn - quartz vein, apy - arsenopyrite, py - pyrite, po - pyrrhotite,
qtz - quartz, cpy - chalcopyrite, D2 - deformation stage.
Gorden Glenn, CEO commented "The PL Mine Mineral Lease and surrounding property have
exceptional exploration and resource expansion potential.
This drill program was designed to
demonstrate the on-lease exploration potential.
We are pleased to see a new mineralized vein/structure
emerging in the Tonalite where visible gold has been observed in core on our initial 2 holes.
We
encourage our shareholders and new investors to watch our social media accounts for pictures and
updates on our 2020 summer drilling and exploration program."
PL Mine Feasibility Financial Analysis and Sensitivities
Since the beginning of 2020, the Gold price has increased steady, recently achieving an all time high of
over US$1,950/oz.
This is well above the base case financial analysis from the PL Mine 2017 Feasibility
Study ("2017 FS"), which used a gold price of US$1,250/oz, to yield a pre-tax NPV
5%
of $55.9 million
and IRR of 65% and an after-tax NPV
5%
of $36.7 million with an IRR of 53%.
The results of the sensitivity
analysis for the Base Case indicate that the project is sensitive to changes in gold price.
For example, in
Table 2 below, one can see the impact of an increase in gold price, to US$1,875 per ounce
(approximately 50% higher than the 2017 FS) on the project's after-tax NPV
5%
.
In the case of the PL
Mine re-start, a 50% increase in gold price could potentially increase the project NPV
5%
from the base
case of $36.70 million to $185.62 million, a potential increase of over 400%.
Table 2: Results of Gold Price Sensitivity Analysis of the Base Case (2017 Feasibility Study)
After-Tax NPV
5%
Variation of Parameter Relative to Feasibility Study Base Case
(Base Case Gold Price - US$1,250 per oz = 0%)
Gold Price
(US$/oz)
$1,125
$1,250
$1,375
$1,500
$1,625
$1,750
$1,875
$2,000
% change
-10%
0%
10%
20%
30%
40%
50%
60%
ATNPV
5
%
(C$M)
$6.21
$36.70
$66.49
$96.28
$126.06
$155.84
$185.62
$215.38
IRR %
16%
53%
82%
109%
135%
160%
184%
209%
Readers are cautioned that the above sensitivity analysis only considers a single change in a variable
(i.e. the change in price of gold) and does not consider any changes in other variables that may have
occurred since the completion of the 2017 FS.
Gorden Glenn, CEO commented "As I have said many times to existing shareholders and new investors.
the PL Mine has exceptional exploration and resource expansion potential AND high leverage to gold
price.
I believe the content of this press release clearly highlights both property attributes with a new
mineralized structure identified in the footwall Tonalite and the positive impact to the 2017 FS NPV
5%
using a higher (current) gold price. Since acquiring the project management has diligently de-risked the
project to the "shovel ready" stage with the completion of the 2017 FS.
Following the positive 2017 FS
we have patiently and prudently evaluated various funding and M+A opportunities to maximize
shareholder value.
In the current gold price environment, we are seeing a return of investor interest
seeking permitted, development stage projects and the PL Mine is one of a very few projects in this
category. There is also considerable interest earlier stage, exploration companies and PL Mine also has
once again demonstrated its exceptional exploration upside.
We look forward to updating the market on
all aspects of the PL Mine re-start as we advance the project toward production."
The Company also wishes to announce it has granted an aggregate of 1,000,000 options to purchase
common shares of the Company exercisable at a price of $0.25 per common share for a period of 5
years, to certain directors, officers, employees and consultants. The common shares issuable upon
exercise of the options are subject to a four month hold period from the original date of grant.
About Minnova Corp.
Minnova Corp. is an emerging Canadian gold producer focused on re-starting the PL Gold Mine and
expanding gold resources on its PL and Nokomis gold deposits. The Company has completed a
Positive Feasibility Study in support of re-starting the PL Mine at an average annual production rate of
46,493 ounces over a minimum 5 year mine life. The resource remains open to expansion and future
surface exploration work programs will target resource expansion. The PL Gold Mine has a relatively
short pre-production timeline forecast at 15 months, benefits from a valid underground mining permit
(Environment Act 1207E), an existing processing plant, over 7,000 meters of developed underground
ramp to -135 metres depth, is fully road accessible and close to existing mining infrastructure in the
prolific Flin Flon - Snow Lake Greenstone Belt of Central Manitoba.
Qualified Person
Mr. Chris Buchanan, M. Sc., P. Geo., a consultant of the Company and a "Qualified Person" under
National Instrument 43-101, has reviewed and approved the scientific and technical information in this
press release.
For more information please contact:
Minnova Corp.
Gorden Glenn
President & Chief Executive Officer
For further information, please contact Investor Relations at 647-985-2785 or
Visit our website at
www.minnovacorp.ca
and follow us on social media (twitter: @MinnovaCEO and
Instagram: minnovacorp)
Forward Looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, but is not limited to, information regarding
the Company including management's assessment of future plans and operations, that may involve
risks associated with mining exploration and development, volatility of prices, currency fluctuations,
imprecision of resource estimates, environmental and permitting risks, access to labour and services,
competition from other companies and ability to access sufficient capital. As a consequence, actual
results may differ materially from those anticipated in the forward-looking statements.
Although
Minnova has attempted to identify important factors that could cause actual results to differ materially
from those contained in forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. 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. Minnova does not undertake to update any forward-looking information, except in
accordance with applicable securities laws.
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.
NOT FOR DISSEMINATION INTO THE UNITED STATES
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/60836