Vendetta Increases Pegmont Lead-Zinc Mineral Resource to 5.8 Million Tonnes Indicated and 8.3 Million Tonnes of Inferred. Open Pit Constrained Mineral Resource now at 54% Indicated
FOR IMMEDIATE RELEASE August 9th, 2018
(VTT2018 – NR #7)
Vendetta Increases Pegmont Lead-Zinc Mineral Resource to 5.8 Million Tonnes
Indicated and 8.3 Million Tonnes of Inferred. Open Pit Constrained Mineral
Resource now at 54% Indicated
Vancouver, BC – August 9th, 2017 − Vendetta Mining Corp. (VTT-TSX:V) (“Vendetta” or the
“Company”) is pleased to provide the results of the updated Mineral Resource estimate for the Pegmont
Lead-Zinc sulphide project in Queensland, Australia . This Mineral Resource will form the basis of
the Pegmont Preliminary Economic Assessment (PEA), with a planned completion in the next 6 to
8 weeks.
Highlights Include:
• Significant increase in the Indicated Mineral Resource from 2.2 Mt to 5.8 Mt. See Table 4.
• Maiden Mineral Resource for the underground Bridge Zone: Indicated 560 Kt at 9.5% Pb,
2.5% Zn, 15 g/t Ag and Inferred 309 Kt at 8.7% Pb 2.5% Zn, 14 g/t Ag. See Table 2.
• Open pit constrained Indicated Mineral Resource of 5.1 million tonnes at 6.2% Pb, 2.6%
Zn, 15 g/t Ag and Inferred Mineral Resource of 4.4 million tonnes at 5.1% Pb, 2.2% Zn, 14
g/t Ag. See Table 3.
• Increasing overall grade as the Mineral Resource moves from Inferred to Indicated. Zinc
grade increasing at depth. See Table 4.
The updated Mineral Resource estimate was performed by AMC Mining Consultants (Canada) Limited
(AMC). The estimate includes the addition of more than 22,400 m of resource development drilling
conducted during 2017 by Vendetta and the results of the recent Locked Cycle metallurgical test work.
The combined Mineral Resource for the open pit constrained and underground portions of the project
are provided in Table 1.
Table 1: July 2018 Mineral Resource Estimate (see notes for details)
Classification Material type Tonnes Pb Zn Ag
(kt) (%) (%) (g/t)
Indicated
Transition 1,111 4.9 2.3 8
Sulphide 4,647 6.9 2.6 12
Total 5,758 6.5 2.6 11
Inferred
Transition 1,829 5.2 2.0 7
Sulphide 6,447 5.1 3.1 9
Total 8,277 5.1 2.8 8
1. CIM Definition Standards (2014) were used to report the Mineral Resources.
2. Cut-off grade applied to the open pit Mineral Resources is 3% Pb+Zn and that applied
to the underground is 5% Pb+Zn.
3. Based on the following metal prices: US$0.95/lb for Pb, US$1.05/lb for Zn, and
US$16.5/oz for silver.
4. Exchange rate of US$0.75 : A$1.0
5. Metallurgical recoveries vary by zone and material type as follows:
• Lead to lead concentrate: from 80.6% to 91.3% for transition and 88.0% to 92.7%
for sulphide.
• Zinc to zinc concentrate: from 19.3% to 75.2% for transition and 61.8% to 78.5%
for sulphide.
6. Using drilling results up to 15 April 2018.
7. Mineral Resource tonnages have been rounded to reflect the accuracy of the estimate,
and numbers may not add due to rounding.
Vendetta’s CEO and President Michael Williams, stated: “This Mineral Resource Update achieved
the goals we set at the start of the 2017 drilling program. We are excited to deliver on four fronts; an
overall increase in the Mineral Resource at a higher grade, a maiden resource on the 2017 high grade
underground Bridge Zone discovery and a significant increase in confidence of the open pit constrained
Mineral R esource, which is now at 54% Indicated. These significant advances place us on a solid
foundation for the PEA.
With the discovery of another high grade fold in Zone 3 and with the higher grade zinc Zone 5 still open
for expansion, we expect that the Pegmont Deposit will continue to deliver significant results beyond
this Mineral Resource estimate.”
Table 2. Underground Mineral Resource Summary by Material Type and Zones (see notes for
Table 1)
Zone Classification Material
type
Tonnes Pb Zn Ag
(kt) (%) (%) (g/t)
Zone 3
Indicated
Sulphide
23 5.0 2.0 11
Inferred 750 6.2 2.3 12
Zone 4
Indicated
Sulphide
50 5.5 3.4 8
Inferred 468 4.4 3.5 8
Zone 5
Indicated
Sulphide
10 5.9 3.5 9
Inferred 2,353 4.5 4.1 6
Bridge zone
Indicated
Sulphide
560 9.5 2.5 15
Inferred 309 8.7 2.5 14
Total
Underground
Indicated
Sulphide
644 9.0 2.6 14
Inferred 3,880 5.1 3.6 4
Table 3. Open Pit Constrained Mineral Resource Summary by Material Type and Zones (see notes
for Table 1)
Zone Classification Material
type
Tonnes Pb Zn Ag
(kt) (%) (%) (g/t)
BHZ
Indicated
Transition 72 4.2 2.2 7
Sulphide 286 4.7 3.0 9
Sub-total 357 4.6 2.9 8
Inferred
Transition 5 3.9 2.0 6
Sulphide 125 6.3 3.1 11
Sub-total 131 6.2 3.1 11
Zone 1
Indicated
Transition 342 5.9 2.7 10
Sulphide 1,466 6.4 2.4 12
Sub-total 1,808 6.3 2.5 11
Inferred
Transition 969 5.0 1.9 8
Sulphide 1,161 4.7 1.8 10
Sub-total 2,131 4.8 1.8 9
Zone 2
Indicated
Transition 689 4.5 2.2 7
Sulphide 1,819 6.9 2.7 12
Sub-total 2,508 6.3 2.6 10
Inferred
Transition 556 6.1 2.1 5
Sulphide 330 5.3 2.3 9
Sub-total 887 5.8 2.2 6
Zone 3
Indicated
Transition 8 3.9 1.7 8
Sulphide 433 6.5 2.6 11
Sub-total 441 6.4 2.6 11
Inferred
Transition 298 4.2 2.4 7
Sulphide 950 5.2 2.8 9
Sub-total 1,248 4.9 2.7 8
Total
Open pit
Indicated
Transition 1,111 4.9 2.3 8
Sulphide 4,003 6.5 2.6 11
TOTAL 5,114 6.2 2.6 11
Inferred
Transition 1,829 5.2 2.0 7
Sulphide 2,567 5.0 2.3 10
TOTAL 4,396 5.1 2.2 8
Table 4. Comparison of the 2017 and 2018 Mineral Resource Estimates
Classification Material
Type
2017 2018
Tonnes
(kt)
Pb
(%)
Zn
(%)
Ag
(g/t)
Tonnes
(kt)
Pb
(%)
Zn
(%)
Ag
(g/t)
Indicated
Transition 685 5.2 2.5 9 1,111 4.9 2.3 8
Sulphide 1,560 5.7 2.7 11 4,647 6.9 2.6 12
TOTAL 2,245 5.6 2.6 10 5,758 6.5 2.6 11
Inferred
Transition 1,035 5.3 2.6 8 1,829 5.2 2.0 7
Sulphide 8,612 4.9 2.9 8 6,447 5.1 3.1 9
TOTAL 9,647 5.0 2.9 8 8,277 5.1 2.8 8
Details of the Mineral Resource Estimate
An inverse distance estimate was run using Datamine’s dynamic anisotropy search to estimate lead, zinc
and silver into the block model. The new block model is built using 1% Pb+Zn 3D wireframe envelope
positioned within a geological 3D envelope constructed using both geology and background grades,
nominally 0.2% Pb+Zn. A 3D model of the cross cutting post mineral amphibolite dyke is superimposed
on the model at zero grade. The zones are broadly based on their geometry, and are for reporting purposes
only.
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
There is no certainty that all or any part of mineral resources will be converted to mineral
reserves. Quantity and grades are estimates and are rounded to reflect the fact that the resource
estimate is an approximation.
• The Mineral Resource update has been prepared by independent qualified persons (“QPs”) J.M.
Shannon P.Geo, D Nussipakynova P.Geo, M. Angus MAIG, P. Lebleu P.Eng, of AMC and A
Riles MAIG, of Riles Integrated Resource Management Pty Ltd., and has an effective date of 31
July 2018, incorporating drill results to 15 April 2018, including 22,163 m in 107 new holes
drilled in 2017 and early 2018.
• Quality Assurance/Quality Control (“QA/QC”) protocols were carried out during Vendetta’s
2014, 2016 and 2017 drill programs to assess the quality of the drilling assay results and the
confidence that can be placed in the assay data. The QA/QC data available demonstrate the
analytical data are of sufficient quality to be used in estimating Mineral Resources.
• Bulk density is applied based on oxidation state and zone to capture variation in mineralogy
between the zones. These are individually calculated on grade for each zone and the range at
greater than 3% Pb+Zn for transition material is 3.22 to 3.60 t/m3. The range for sulphide is
between 3.91 and 4.08 t/m3. At greater than 5% Pb+Zn for the Bridge Zone the average bulk
density is 4.19 t/m3
Financial considerations used in determining cut off’s:
• Commodity price assumptions: Lead US$0.95/lb, Zinc US$1.05/lb and Silver US$16.50/oz.
• Australian Dollar (A$) to USA Dollar (US$) exchange rate of 0.75.
• Concentrate transport costs of A$37/t Lead concentrates and AU$49/t Zinc concentrates.
• Lead concentrate terms: treatment and refining charges of US$170/t, payables of 95% Lead, 50%
Zinc, 95% Silver, with minimum deductibles of 3% Lead, and 50g/t Silver and a US$1.25/oz
Silver refining charge.
• Zinc concentrate terms: treatment and refining charges of US$180/t, payables of 50% Lead, 85%
Zinc and 70% Silver, with minimum deductibles of 8% Zinc, and 93g/t Silver and a US$1.25/oz
Silver refining charge.
• Queensland Government net smelter return royalties of 4.28% on Lead and 2.92% on Zinc and
a vendor net smelter return royalty of 1.5% on all minerals.
Specific details relating to the open pit constrained and underground Mineral Resources are found below.
Additional Notes on Open Pit Constrained Mineral Resource
AMC Consultants performed the open pit optimisation using the Lerch-Grossman algorithm coded into
the Whittle software. The open pit shell used to constrain the Mineral R esource was based on a net
smelter return (NSR) cut- off of A$32.42/t determined using the parameters defined above and the
following assumptions:
• 55° pit slopes were used, based on experience with similar rocks and conditions within the region.
• Zones 1, 2, 3 and BHZ sulphide and Zone 1 transition m etallurgical recoveries and concentrate
grades (locked cycle) are as per Vendetta News Release dated March 5th, 2018.
• BHZ transition metallurgical recoveries and concentrate grades (open cycle) are as per Vendetta
News Release dated March 6th, 2017.
• An 8% discount rate is applied.
• Open pit mining costs of A$3.50/t ore and A$2.50/t waste, A$1/t ore ROM rehandle, A$4.50/t
ore mine supervis ion and technical services, AU$2/t ore surface general and administrative
overheads and processing costs of A$23.92/t ore.
Within the open pit shell the Mineral Resource is stated at a 3% lead + zinc cut off , based on a
comprehensive cut off approach, approximately equal to the A$32.42/t NSR cut off used to generate the
pit shells.
Oxide lead-zinc mineralisation is not included in the current Mineral Resource as with the sequential
flotation processing flow sheet envisaged it is considered that there is no effective method for mineral
processing of oxide mineralisation and hence no economic basis for its inclusion.
Additional Notes on Underground Mineral Resource
Mineral Resources outside of the open pit shell are considered to be potentially minable using
underground mining methods. Underground Mineral Resources have been defined using a 5% lead +
zinc cut -off based on a cut -off calculation determined from the parameters defined above and the
following assumptions:
• Zone 3 and Bridge Zone m etallurgical recoveries and concentrate grades (locked cycle) are as
per Vendetta News Release dated March 5th, 2018
• Zone 5 metallurgical recoveries and concentrate grades (open cycle) are as per Vendetta News
Release dated March 6th, 2017.
• Underground mining costs of A $45.00/t ore and G&A of A$5.00/t ore and processing costs of
A$23.92/t ore.
2018 Resource Development Drilling Update
Logging and sampling of the first phase of the 2018 drilling program has been completed, interpretation
and assay results are pending. The recent program has further tested a new high grade structure in Zone
3 that was identified at the close of the 2017 Program . This new discovery was not included in this
Mineral Resource estimate, nor will it be included in the PEA.
A metallurgical drilling program was also conducted in one of the pits contemplated to be mined first,
although the results of this test work will not be available for the PEA they are an important par t of
further de-risking the project for the next phase of study work.
About Pegmont
Pegmont is a stratiform, Broken Hill-Type deposit that outcrops with an overall shallow dip to the south
east and is hosted in a magnetite-rich banded iron formation within high grade metamorphic rocks. The
project consists of three granted mining leases and one exploration permit that cover an area of
approximately 8,290 ha.
Pegmont is situated in the Mount Isa – McArthur Mineral Province, which hosts one of the world’s
richest endowments of lead -zinc-silver mineralization, including several world -class lead -zinc-silver
mines.
Pegmont is located 25 km west of South 32’s Cannington silver-lead-zinc operation, one of the world’s
largest producers of lead and silver and 28 k m north of Chinova Resources’ Osborne copper -gold
operations. Pegmont is proximal to existing infrastructure including public roads, mine haul roads, rail,
and a natural gas pipe line for power generation.
About Vendetta Mining Corp.
Vendetta Mining Corp. is a Canadian junior exploration company focused on advanced stage exploration
and development at the Pegmont Lead Zinc Project in Australia. Vendetta has an option to acquire a
100% interest by completing certain work requirements and making option and advance royalty
payments. Additional information on the Company can be found at www.vendettaminingcorp.com
Qualified Person
Peter Voulgaris, MAIG, MAusIMM, a Director of Vendetta, is a non- independent Qualified Person as
defined by NI 43- 101. Mr. Voulgaris has reviewed the technical content of this press release, and
consents to the information provided in the form and context in which it appears.
John Morton Shannon P.Geo., Principal Geologist at AMC Mining Consultants (Canada) Limited, is an
independent qualified person, as defined in NI 43-101. Mr. Shannon has reviewed the technical content
relating to the Mineral Resource disclosure of this press release, and consents to the information
provided in the form and context in which it appears.
ON BEHALF OF THE BOARD OF DIRECTORS
“Michael Williams”
Michael Williams
President & CEO
Forward Looking Information
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain statements within this news release, other than statements of historical fact relating to Vendetta
Mining Corp., are to be considered forward-looking statements with respect to the Company’s intentions for
its Pegmont project in Queensland, Australia. Forward-looking statements include statements that are
predictive in nature, are reliant on future events or conditions, or include words such as “expects”,
“anticipates”, “plans”, “believes”, “considers”, “significant”, “intends”, “targ ets”, “estimates”,
“seeks”, attempts”, “assumes”, and other similar expressions.
The forward-looking statements are based on a number of assumptions which, while considered
reasonable by Vendetta Mining Corp., are, by their nature, subject to inherent risks and uncertainties and
are not guarantees of future performance. Factors that could cause actual results to differ materially from
those in forward-looking statements include: the interpretation of previous and current drill, further
results from the 2018 drilling program, the accuracy of exploration results, the accuracy of Mineral
Resource Estimates, the anticipated results of future exploration, the forgoing ability to finance further
exploration, delays in the completion of exploration, delays in the completion of the updated Mineral
Resource Estimate, the future prices of lead, zinc, and other metals, and general economic, market and/or
business conditions. There can be no assurances that such statements and assumptions will prove accurate
and, therefore, readers of this news release are advised to rely on their own evaluation of the information
contained within. In addition to the assumptions herein, these assumptions include the assumptions
described in Vendetta Mining Corp.’s Management’s Discussion and Analysis for the nine months ended
February 28,, 2018..
Although Vendetta Mining Corp. has attempted to identify important risks, uncertainties and other factors
that could cause actual performance, achievements, actions, events, results or conditions to differ materially
from those expressed in or implied by the forward-looking statements, there may be other risks, uncertainties
and other factors that cause future performance to differ from what is anticipated, estimated or intended.
Unless otherwise i ndicated, forward-looking statements contained herein are as of the date hereof and
Vendetta Mining Corp. does not assume any obligation to update any forward-looking statements after the
date on which such statements were made, except as required by applicable law.