TRANSATLANTIC MINING -NI 43-101 AND PRELIMINARY ECONOMIC ASSESSMENT ALDER GULCH PROJECT – US GRANT MINE 12th December 2016 TSX Venture Exchange
Transatlantic Mining Corp. | Suite 800 | 1199 West Hastings Street | Vancouver | Canada V6E 3T5
T 604-424 8257 | F 604-357 1139| www.transatlanticminingcorp.com
TRANSATLANTIC MINING -NI 43-101 AND PRELIMINARY ECONOMIC
ASSESSMENT
ALDER GULCH PROJECT – US GRANT MINE
12th December 2016 TSX Venture Exchange
Trading Symbol: TCO
Vancouver, British Columbia
Transatlantic Mining Corp. (“TCO” or the “Company”) (TSX-V: TCO) is pleased to provide the following
update to investors.
Highlights
A NI 43-101 and Preliminary Economic Assessment
Maiden Mineral Resource of 53,800 Gold Equivalent Ounces
A Preliminary Economic Assessment with All-In Sustaining Cost of $905 /Oz Au equivalent
An estimated Internal Rate of Return of 272%
An Exploration Target of 500Koz Gold Equivalent Ounces
Summary
The US Grant Mine is a group of patented and unpatented claims within the Alder Mountain Project. The Alder
Mountain Project property comprises a 535 acre total land package with 5 patented and 28 unpatented claims
located in the Virginia City Mining District of Madison County, Montana.
As original ly announced January 22, 2016, the Company has an exclusive Option and Lease to Purchase
Agreement with the current owners, Madison Mining Corporation and Elite Properties, for the US Grant Mine and
Alder Mountain Project. This agreement commenced effective January 18, 2016. On completion of the terms of
this agreement, TCO, at its election within the 16 month (4 month due diligence and 12 month lease) period, can
earn 100% ownership on election to purchase. TCO can also utilize all plant and equipment within the lease
period with that processing benefit direct to the TCO account.
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The Company has now received a National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral
Projects compliant resource estimation and Preliminary Economic Assessment (PEA) for the patented portion of
the US Grant Mine property. This is based predominantly on historical information and recent TCO sampling of
accessible US Grant Mine workings (the “Report”). The Report was authored by Chris Pfahl, PE, PLS, who is a
Qualified Person under NI 43-101 and has revie wed and approved the disclosure of a scientific or technical
nature herein.
All required permits have been secured for the PEA activities at the US Grant Mine property. The current Small
Miner’s Exclusion Statement permit #25-221 allows for up to five acres of disturbance. No additional permitting
from the Montana DEQ is necessary at this time.
Maiden NI 43-101 Mineral Resource
The following table represents the current maiden NI 43 -101 mineral resource for the US Grant Mine property
based on mapping and sampling information as at June 30, 2016. The following figure illustrates the mineral
resource outline and mine design used for the PEA.
Table 1: The US Grant Vein Measured Indicated and Inferred Mineral Resource
Resource Class
Cutoff
EqAu (oz
tr/sh ton)
Total Sh Tons
(Undiluted)
Au Grade
(oz tr/sh ton)
Ag Grade
(oz tr/sh ton)
Equivalent Au
grade
(oz tr/sh ton)
Au
Troy Ounces
Ag
Troy Ounces
Equivalent Au
Troy Ounces
Measured 0.09 14,100 0.16 7.0 0.25 2,300 98,100 3,600
Indicated 0.09 13,500 0.16 7.2 0.26 2,200 97,000 3,500
Measured + Indicated 0.09 27,600 0.16 7.1 0.26 4,500 195,100 7,000
Inferred 0.09 165,000 0.18 7.7 0.28 30,000 1,278,400 46,800
*Equivalent Au based on USD $1200 Au and USD $15.80 Ag
*Figures may not total due to rounding of significant figures
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Preliminary Economic Assessment (PEA)
This PEA has been developed based on the mineral resource as described in the Table 1. The current levels of
mineral resource do not demonstrate economic viability or a mineral reserve. Unless otherwise stated, all cost
estimates in this PEA are reported in United State Dollars.
Figure 1 : A Schematic Long Section covering the US Grant Vein and Design
The 3.6 year life-of-mine (LOM) has estimated total capital costs of $8.8 M.
The Life of Mine operating costs are $18.2 M as detailed in the following table.
Table 2: The US Grant Vein Life of Mine Operating Costs
The base case financial model for the US Grant Mine property is estimated to have an after-tax internal rate of
return (IRR) of 2 78% with payback occurring at approximately 16 months from commencing operations with
allocated funding.
Description Total Life of
Mine Cost
Average
Annual Cost
LOM Cost
per Ton Ore
Mining 8,176,706 2,281,871 48.89
Milling 4,487,736 1,252,391 26.83
G&A 5,563,367 1,552,568 33.26
Total Operating Costs (USD) $18,227,810 $5,086,831 $108.98
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The following table summarizes a base-case net present value (NPV) with various discount rates which also
incorporates the purchase price of the US Grant Mine property of $6M within that model. The gross revenue is
based on a gold price of $1350 and a silver price of $19 and on the US Grant Vein only. Exploration upside could
exist outside this initial assessment.
The All-in-sustaining-costs ( AISC) are estimated at $ 905 per equivalent gold ounce on the current
assessment without any upside or full conversion of the inferred mineral resource contained above.
Exploration Opportunity
The US Grant Mine property has had only a limited amount of historical exploration drilling during its time. The
mineral resource and cost estimates within this PEA include a portion of the US Grant vein without the addition
of any future exploration potential on other veins or opportunities within the greater Alder Mountain Project. An
exploration target of approximately 500,000 gold equivalent ounces has been planned to be drill tested of which
the full expenditure has not been allowed for and is outside the scope of the PEA and Mineral resource outlined
above. The fund allocation within the PEA only supports drilling to upgrade the confidence levels in the Mineral
Resource and subsequent decision to purchase the Alder Mountain Asset . It is the opinion of the author of the
NI 43-101 Report that the US Grant Mine property has not been adequately explored. S urface drilling targeted
the vein system to less than 300 feet below the surface from three locations. Underground drilling targeted the
vein system less than 100 feet below the US Grant Mine #3 level and only provided a cursory look for additional
vein systems in the hangingwall and footwall of the US Grant vein.
The author recommends both surface and underground drill programs to increase the resource base of the US
Grant Mine property. The intercept in drill hole USG-88-2 is open along strike and down dip. The well-developed
road system at the property provides access to offset drill this intercept. The US Grant Mine #3 level should be
extended approximately 1,800 feet to the southwest end line of the property and the vein developed where grade
and widths indicate the potential for resource expansion and extension. Drilling to optimise the mine design and
current capital infrastructure to the limit of the claim block to identify additional mineralized structures are
warranted.
This Technical Report is dated Effective December 09, 2016 and entitled “The Mineral Resource and Preliminary
Economic Assessment at the US Grant Mine Property, Virginia City, Madison County, USA ” Transatlantic
requested Chris Pfahl to prepare the Technical report. Mr Pfahl is a “Qualified Person” as defined in NI 43 -101
and is Independent of Transatlantic Mining Corporation
Discount Rate 0% 2.5% 5% 7.5% 10%
NPV ($M) 6.93 6.44 5.99 5.58 5.21
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Corporate Snapshot
The Company provides the following update on corporate initiatives currently in progress. Over the next 30 days,
shareholders and prospective investors should expect:
An update to progress on operating activities at the US Grant Mine
Results to Surface drilling programs.
CEO Rob Tindall commented,
‘TCO is pleased to provide this initial NI 43-101 and PEA. The Company looks forward to building on the base
case of this report and building the US Grant Project into a sound production asset along with its exciting
exploration opportunities at hand.’
About Transatlantic Mining Corp.
Transatlantic Mining (TSX-V: TCO) is an emerging precious and base metal explorer, developer and producer.
The Company has a focus on high -grade deposits in safe and prolific mining jurisdictions. The Company is
engaged in controlling and owning mineral properties interests, such as an 80% earn -in option on the Monitor
Copper-Gold project in Idaho (USA). In January 2016, the Company entered a lease/purchase option agreement
for 100% of the US Grant Gold-Silver Mine & Mill complex in Montana (USA). A proven management team,
led by Executive Chairman Bernie Sostak and CEO Rob Tindall, seek to enhance shareholder value through
expert exploration/development and expansion of existing assets in conjunction with selective acquisitions.
For further information contact: Rob Tindall at 604-424-8257
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