Pinecrest Announces Start of Drill Program at Its 100% Owned Enchi GOLD Project, Ghana & Management Update
PINECREST RESOURCES LTD.
NEWS RELEASE
PINECREST ANNOUNCES START OF DRILL PROGRAM AT ITS 100% OWNED ENCHI GOLD PROJECT, GHANA &
MANAGEMENT UPDATE
November 22, 2017 TSX-V: PCR
Vancouver, British Columbia: Pinecrest Resources Ltd. (TSX -V: PCR ) (the “ Company” or “ Pinecrest”) is
pleased to announce the commencement of a 3,000 metre Reverse Circulation (“RC”) drill program on the
100% owned Enchi Gold Project (“Enchi or the Project”), located in Southwest Ghana, a region well-known
for prolific gold production.
Highlights on the Enchi Gold Project
Pinecrest has commenced a RC drilling program testing shallow extensions of the existing open pit,
one million ounce, Inferred gold resource (37.36 Mt grading 0.9 g/t) at Enchi
The program includes 3,000 meters in approximately 27 RC drill holes
Past work at Enchi has included extensive RC and diamond drilling (52,385 m in 646 drill holes),
resource estimation and a Preliminary Economic Assessment (“PEA”) study (Pre-Tax NPV 5%: US$102
million using US$1,300/oz gold)
The Enchi gold deposit remains open for further resource expansion along strike and to depth.
Numerous, additional high priority gold targets exist on the 568 km2 property
Ryan King, President and Director of Pinecrest, commented: “The Company is pleased to be starting the
2017 RC drilling program which will test on -strike targets of the current gold resource and follow-up on
high priority targets where previous drilling has been limited. Based on the current Preliminary
Economic Assessment , at market gold prices we have the potential for a robust project however we
believe there is significant opportunity to expand on the current one million ounc e gold resource. The
Enchi gold deposit covers 40 km of the prolific Bibiani Shear Zone were several multi-million-ounce gold
deposits have been discovered and mined including the Chirano gold mine operated by Kinross Gold
Corporation located 70 km northwest of the Project.”
The 2017 Enchi Drill Program
The 2017 RC drill program will include approximately 27 holes totalling 3,000 metres of infill, step out
and exploration drilling on the Boin and Sewum Zones and two new zones outside of the maiden
Inferred Resource; Boin northwest and Kojina Hill both representing high priority targets based on
geological, geochemical and geophysical surface work and previous drilling.
BOIN NORTHWEST (‘NW”) TARGET
Boin NW target is located approximately 1000 metres northwest of the main Boin Gold Z one and
importantly not currently included in the NI 43 -101 Inferred Resource Estimate or PEA. Previous
trenching intersected 26 metres grading 0.61 g/t Au and 40 metres gra ding 0.54 g/t Au including 10 m
grading 1.64 g/t Au. Past limited drilling intersected 23 m at 0.43 g/t Au and 39m at 0.43 g/t Au within
the near surface oxidized material.
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KOJINA HILL TARGET
Kojina Hill is located approximately 400 metres northwest of th e Nyam Gold Zone and not included in
the previous NI 43 -101 Inferred Resource Estimate. Previous drilling highlights from only 8 drill holes
included near surface intercepts of: 42 metres grading 1.68 g/t Au and 17 metres grading 0.94 g/t Au.
Enchi Gold Project Preliminary Economic Assessment Highlights
The Enchi Gold Project is road accessible, is on the Ghanaian power grid and is situated along the
eastern margin of the Sefwi gold belt that hosts multi -million ounce producing mines such as the
Chirano Gold Mine and past producing Bibiani Gold Mine . Enchi includes six prospecting licenses within
a total 568km 2 land package. Previous work carried out on the project has included: RC and diamond
drilling (52,385 m) , airborne geophysical surveys, soil sampl es and trenching from numerous targets
which resulted in an Inferred Resource Estimates and a Preliminary Economic Assessment conducted on
three main gold zones (Boin, Nyam and Sewum). All zones within the Inferred Resource are open for
expansion down dip and along strike, particularly the Boin zone that has undrilled internal gaps in the
well-defined structure of up to 400 metres in strike length. Additional new high priority targets include
Boin Northwest and Kojina Hill both located within 10 km of the main Boin zone where previous work
completed includes trenching and drilling.
A NI 43-101 compliant Preliminary Economic Assessment (the “PEA” or the “Study”) completed in 2015
was prepared by WSP Canada Inc. (“WSP”) using a base case , pit constrained Inferred Mineral Resource
of 1.07 million ounces (oz) of gold (37.3 million tonnes grading 0.9 gram of gold per tonne (g/t Au), at a
cut-off of 0.5 g/t Au). The PEA contemplated an owner operated, open pit, heap leach operation
processing 3.0 million tonnes per year (Mtpy). All currency figures are in US Dollars (US$ or $) and using
a base case gold price of $1 ,300/oz, the Study shows that the Project has net Pre -Tax cash flow of $145
million, a Pre -Tax Net Present Value (NPV) at 5% discount rate of $102 millio n and an Int ernal Rate of
Return (IRR) of 34 %. (See news release linked here dated June 29 , 2015 for full details and Technical
Report filed on Sedar under Pinecrest Resources Ltd.)
Base Case $1,300/oz gold price1
Average Mined Gold Grade (g/t) 0.91
Processing Rate (Mtpy) 3.0
Mine Life (years) 8.7
Life-of-Mine (LOM) Strip Ratio 3.16:1
IRR Pre-Tax (%) 34
NPV Pre-Tax (5% Discount Rate) (US$ Million) 102
IRR After-Tax (%) 25
NPV After-Tax (5% Discount Rate) (US$ Million) 62
Initial Capital Cost (US$ Million) 84
LOM Sustaining Capital Cost (US$ Million) 39
Payback (Pre-Tax)(years) 2.8
Payback (After-Tax) (years) 3.4
LOM Cash Costs (US$/oz) 802
Metallurgical Recoveries (oxide/transition/sulphide %) 75/75/73
Total Recovered Gold (oz) 538,450
Average Annual Gold Production (oz) 61,749
Peak Annual Gold Production (oz) 76,210
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1. The PEA is preliminary in nature, and it includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as
mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Numbers may not
add exactly due to rounding. Cash cost includes all operating costs, royalties, refining charges, environmen tal
monitoring, tenure fees as well as general and administration costs. Cash cost excludes any capital cost, either initial
or sustaining and closure and remediation costs.
Mineral resources that are not mineral reserves do not have demonstrated economic viability
The PEA was based on the July 15, 2014 NI 43-101 Inferred Mineral Resource estimate prepared by WSP
and using a 0.5 g/t cut-off. (See Table 2 for details).
Table 2 Enchi Gold Project - Inferred Mineral Resource (0.5 g/t Cut-Off)
Cut-off Zone Tonnes Grade Contained Gold
Au (g/t)
Au (g/t) (ounces)
0.5 Boin 15,872,000 0.96 489,892
0.5 Nyam 5,350,000 0.96 165,129
0.5 Sewum 16,135,000 0.82 423,676
TOTAL 37,357,000 0.90 1,078,697
1. CIM definition standards were followed for the resource estimate.
2. The 2014 resource models used ordinary kriging (OK) grade estimation within a three -dimensional block model with
mineralized zones defined by wireframed solids.
3. A base cut-off grade of 0.5 g/t Au was used for reporting resources with a capping of gold grades at 18 g/t.
4. A US$1,300/ounce gold price, open pit with heap leach operation was used to determine the cut-off grade.
5. A density of 2.45 g/cm3 was applied.
6. Numbers may not add exactly due to rounding.
7. Mineral Resources that are not mineral reserves do not have economic viability
The 2014 Mineral Resource estimate was based on 52,385 metres of diamond and RC drilling in 646
holes as well as data from 102 surface trenches totalling 13,799 metres. The drilling is generally spaced
at 25 to 50 metre intervals.
Mr. Gregory Smith, P.Geo, the Vice -President of Exploration of the Company, is the Qualified Person as
defined by NI 43 -101, and is responsible for the accuracy of the technical data and information
contained in this news release.
Management Update
The Company also announces that Mr. George Salamis is stepping down as Chief Executive Officer of the
Company effective immediately to focus on his new role as President and CEO of Integra Resources
Corp. Mr. Salamis will continue as a director of Pinecrest. The Board of Directors would like to thank
Mr. Salamis for his contribution as a Senior Officer of Pinecrest and looks forward to continuing to work
with George at the Board level. Ryan King, current President and Director of the Company will expand
his current role with his appointment as President and Chief Executive Officer.
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About Pinecrest Resources
Pinecrest engages principally in the acquisiti on, advancement and developme nt of precious metal
properties with the Company’s primary focus being the 100% owned Enchi Gold Project located in
Southwest Ghana. Major shareholders of Pinecrest include Kinross Gold Corp oration, Management and
Directors.
Pinecrest Resources Ltd.
“Ryan King”
Ryan King
President, CEO & Director
For further information contact:
Ryan King
604 628-1012
www.pinecrestresources.com
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This news release contains certain forward-looking statements, Any statements that express or involve discussions with respect
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historical fact contained herein, the information presented constitutes “forward -looking statements” w ithin the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with
respect to the price of gold, potential mineralization, reserve and resource determination, exploration resu lts, and future
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actual results, performance or achievement of Atlas to be materially different from any future results, performance or
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