Miranda GOLD Files Updated Preliminary Feasibility Study FOR the Lucky Shot Project, Alaska
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MIRANDA GOLD FILES UPDATED PRELIMINARY FEASIBILITY STUDY
FOR THE LUCKY SHOT PROJECT, ALASKA
Vancouver, BC, Canada – April 6, 2017 – Miranda Gold Corp. (“Miranda”) (TSX-V: MAD) is
pleased to announce it has filed an updated Preliminary Feasibility Study (“PFS”), NI43-101
technical report, for Alaska Gold Torrent, LLC’s (“Gold Torrent”) and Miranda’s Lucky Shot
Project in Alaska. The historic Lucky Shot Mine is in the Willow Mining District.
The report is titled “National Instrument 43-101 Technical Report: Preliminary Feasibility Study
for the Lucky Shot Project, Matanuska-Susitna Borough, Alaska, USA” prepared by Hard Rock
Consulting (“HRC”), Lakewood, Colorado. Miranda has previously referred to the Lucky Shot
Project as the Willow Creek Project.
The updated measured and indicated resource at a cutoff of 5.0 g Au/t is 206,600 tonnes at an
average grade of 18.3 g Au/t containing 121,500 ounces gold and an additional 59,000 tonnes
inferred at an average grade of 18.5 g Au/t containing 35,100 ounces, or 156,600 ounces total
at 18.3 g Au/t in both categories.
The proven and probable reserve, internal to the above resource, at a cutoff of 7 g Au/t and
34% mine dilution is 174,000 tonnes at 15.6 g Au/t containing 87,504 ounces gold. Stopes
would be mined using either the open stull or waste pillar method.
In the PFS, the project produces 79,114 ounces of gold in 5 years of production, with 25,645
ounces annually, at peak production. Net cash flow before taxes for the same operating period
is US$14,693,746. The forecast “All in Sustaining Costs” (ASIC) for the project are US$675
per ounce.
Miranda will receive 10% of the proceeds until Gold Torrent recovers US$10M of initial capital
investment; 20% until Gold Torrent recovers capital in excess of US$10M; and 30% thereafter.
Miranda also has an option to purchase, on installment payments, a 3.3% NSR on all production
for the life of mine.
Gold Torrent forecasts a Lucky Shot production start up of December 2018. Planned
underground exploration drilling after startup is intended to add open mineralization to the
mineral resource and to support conversion of mineral resources to mineral reserves.
Miranda’s CEO Joseph Hebert comments that: “The Lucky Shot Project will represent Miranda’s
first participation in production from its joint venture business model. While currently a modest
project, Lucky Shot will place Miranda in a small group of primary explorers with cash flow, and
will also fund our core business which continues to be world-class discovery in Colombia”.
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Highlighted Tables from the PFS are:
The proven and probable mineral reserves for the project as of May 31, 2016 are summarized in
the table below:
Classification Area Tonnes
(x1000)
Gold Silver Dilution g/t oz. g/t oz.
Proven Coleman
Lucky Shot
68.7
0.0
18.9
0.0
41,672
0
2.02
0.0
4,465
0
37%
0%
Total Proven 68.7 18.9 41,672 2.02 4,465 37%
Probable Coleman
Lucky Shot
87.9
17.8
13.4
13.8
37,936
7,897
1.67
0.09
4,728
51
26%
56%
Total Probable 105.7 13.5 45,833 1.41 4,779 31%
Proven +
Probable 174.4 15.6 87,504 1.65 9,244 34%
Notes: (1) Reserve cut-off grades are based on a 7.0 g/t gold equivalent with 78.3:1 silver to gold ratio. (2) Metallurgical
recoveries were estimated at 90.0% silver and 91.8% for gold. (3) Mining recoveries of 90% were applied. (4) Minimum
mining widths were 0.8 meters. (5) Dilution factors averaged 34%. Dilution factors are calculated based on internal stope
dilution calculations and external dilution factors of 20%. (6) Price assumptions are $15 per ounce for silver and $1,175 per
ounce for gold. (7) Figures in table are rounded to reflect estimate precision; small differences generated by rounding are not
material to estimates.
The mineral resource is summarized in the table below:
Classification Tonnes
(x1000)
Gold Silver
g/t oz. g/t oz.
Measured 57.9 26.8 49,900 2.5 4,700
Indicated 148.6 15.0 71,600 1.6 7,400
Measured + Indicated 206.6 18.3 121,500 1.8 12,100
Inferred 59.0 18.5 35,100 1.5 2,900
Note: Measured, Indicated and Inferred mineral classifications are assigned according to CIM Definition Standards.
Mineral resources, which are not mineral reserves, do not have demonstrated economic viability and there is no
guarantee that mineral resources will be converted to mineral reserves. (1) The mineral resource estimate was prepared
by HRC based on data and information available as of February 1, 2016. The 2016 Measured, Indicated and Inferred
mineral resources are reported considering a base case estimate that applies a cutoff grade of 5 g/t Au based on the
estimated operating costs, historical recoveries, and a $1,265/oz gold price.
Lucky Shot Project operating costs per ounce gold and tonne ore:
AISC Operating Costs $/oz au $/tn ore
Total Mining $344.08 $156.04
Total Processing $165.68 $75.14
Total Site G&A $92.88 $42.12
Transportation & Refining $1.65 $0.75
Bi-Product Credits (silver) -$1.75 -$0.79
CASH Operating Costs $602.54 $273.26
Royalties $67.14 $30.45
Production Taxes $5.62 $2.55
Total Operating Costs $675.30 $306.26
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The Lucky Shot economic profile:
Project Valuation After Tax Before Tax
Net Cashflow (millions) $14.69 $20.64
NPV @ 5.0%; (millions) $9.17 $13.68
NPV @ 7.5%; (millions) $7.05 $11.01
NPV @ 10.0%; (millions) $5.28 $8.76
Internal Rate of Return 21.80% 28.10%
Payback Period, Years 1.88 1.75
Payback Multiple 1.91 2.27
Total Initial Capital (millions) $(15.06) $(15.06)
Max Neg. Cashflow (millions) $(16.21) $(16.21)
Project Details:
The Lucky Shot Project is located 166 km by road, north from Anchorage, Alaska. It is east of
the town of Willow and can be accessed by a well-maintained gravel road. The project covers
the majority of the historic Willow Creek mining district and is comprised of 43 patented lode
mining claims and 62 State of Alaska lode mining claim s for a total of approximately 4,290
hectares. Numerous historical mines occur on the property including the Coleman, Lucky Shot,
War Baby, and Gold Bullion Mines. These mines exploit faulted segments of the same vein
system. Historic production from land controlled by the Gold Torrent-Miranda joint venture is
estimated at greater than 500,000 ounces at 41.14 g Au/t (1).
Gold is found in shallow dipping mesothermal quartz veins. Gold is predominantly free and
associated with telluride. Very little gold is occluded in sulfide, and historic milling recovered
more than 85% of contained gold through gravity separation, demonstrating very favorable
metallurgy, and non-chemical processing.
There is excellent potential for extending mineralization down-dip and along strike from historic
workings. The Murphy area, drilled in 2006 and 2007 extends the strike of the mineralized vein
system to 1,800 meters, or 600 meters beyond historic workings. Two of five holes drilled in the
Murphy show high-grade mineralization (up to 0.98 meters at 54.6 g Au/t) 300 meters below the
surface. The Murphy area mineralization is not delineated and supports significant upside
potential near historic workings.
In 2014, Miranda completed a 234-station soil grid on Bullion Mountain centered approximately
two kilometers from the Coleman and Lucky Shot mines. The highlight of this work was the
discovery of three quartz vein sub-crops that assayed 50.74 g Au/t, 17.05 g Au/t and 18.5 g
Au/t. These anomalies strongly suggest that the Lucky Shot veins extend as near continuous
faulted segments from the Lucky Shot Mine, for four kilometers to Bullion Mountain. The Bullion
Mine produced 77,000 ounces at an average grade of 48 g Au/t.
The resource occurs on private surface patented claims. Permits will be issued by the State of
Alaska.
Qualified Persons:
This updated mineral resource estimate was completed by Zachary J. Black, SME-RM, of HRC.
Mr. Black has reviewed pertinent geological information in sufficient detail to support the data
incorporated in the mineral resource estimate. Mr. Black is an Independent Qualified Person as
defined by NI 43-101, and is responsible for the mineral resource estimate presented in this
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release.
This updated mineral reserve estimate and economic disclosure was completed by Jeffery W.
Choquette, P.E., of HRC. Mr. Choquette has reviewed pertinent geological information in
sufficient detail to support the data incorporated in the mineral re serve estimate and the
economic disclosure. Mr. Choquette is an Independent Qualified Person as defined by NI 43-
101, and is responsible for the mineral reserve estimate and economic disclosure presented in
this release.
Both Mr. Black and Mr. Choquette have reviewed the content of this news release, and each
consents to the information provided in the form and context in which it appears.
Data disclosed in this press release has also been reviewed and verified by Miranda’s Chief
Executive Officer, Mr. Joseph Hebert, C.P.G., B.Sc. Geology, and Qualified Person as defined
by National Instrument 43-101.
About Miranda
Miranda is a gold Prospect Generator focused on Colombia with a production joint venture in
Alaska. Our emphasis is on acquiring gold exploration projects with world -class discovery
potential and then joint venturing those projects. This busines s model maximizes investor
exposure to discovery by exploring numerous projects, while reducing financial risk and
preserving its treasury. Miranda has ongoing relationships with Gold Torrent, Inc., IAMGOLD
Corporation, and Montezuma Mines Inc.
For more information related to Miranda contact Joseph Hebert, Chief Executive Officer at 1-
775-340-0450 or [email protected].
www.mirandagold.com
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(1) Stoll, W. M., 1997, Hunting for Gold in Alaska’s Talkeetna Mountains 1897-1951, Henry Publishing Co,
Greensburg, PA
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Neither the 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.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "i ntend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will"
occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual
events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward -looking
statements. Such factors include, among others: the actual results of current exploration activit ies; conclusions of economic
evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates;
accidents, labor disputes and other risks of the mining industry; delays in obtaining government al approvals or financing; and
fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, esti mated or
intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise. Forward -looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Notice to US investors:
U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.
We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC.
This press release uses the terms “measured resources”, "indicated resources" and "inferred resources", which are estimated in
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accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification
system. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and
Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits
in these categories will ever be converted into reserves. In addition, "Inferred resources" have a great amount of uncertainty as to
their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher ca tegory. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility studies, except in certain exceptional cases. U.S. investors are
cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.