Sprott Resource Holdings Inc. Has Filed NI 43-101 Technical Report for Minera Tres Valles
Sprott Resource Holdings Inc. Has Filed NI 43-101 Technical Report for Minera
Tres Valles
TORONTO, April 12, 2018 -- Sprott Resource Holdings Inc. (“ SRHI” or the “Company”) (TSX:SRHI) is pleased to announce
that it has filed with Canadian securities regulators a NI 43-101 compliant independent technical report (the “ Technical
Report”) for its 70%-owned Minera Tres Valles (“MTV”) project located near Salamanca, Chile. The Technical Report is titled
“Minera Tres Valles Copper Project – Salamanca, Coquimbo Region, Chile – NI 43-101F1 Technical Report – Mineral
Resource Estimate, Chloride Leach Processing, and Don Gabriel Manto Pit Expansion ”, has an effective date of March 29,
2018, and is available under SRHI’s profile on SEDAR at www.sedar.com.
The Technical Report confirms and supports the results of the mineral reserve and mineral resource estimates for MTV, the
historical production and metallurgical recoveries at MTV, the pre-feasibility study for the implementation of chloride media
leaching (“Salt Leach ”) at MTV, and the feasibility study for the expansion of the Don Gabriel Manto open pit, which were
previously disclosed by SRHI in its press release dated March 2, 2018.
“We are very pleased that the updated technical studies validate our investment thesis through mineral reserve and resource
estimates that are in-line with the results of the due diligence we conducted before acquiring the MTV asset,” said Steve
Yuzpe, CEO of SRHI.
“In the current climate of rising global trade tensions, we believe this is an excellent time to own copper producing assets in
strong stable jurisdictions such as Chile, one of the world’s premier countries for mining investments,” said Rick Rule, CIO of
SRHI.
Mineral Resource Estimate Highlights:
• Total measured and indicated mineral resource of 18.3 million tonnes at 1.03% CuT containing 417 million pounds of
copper
• Total inferred mineral resource of 3.5 million tonnes at 1.11% CuT containing 84.4 million pounds of copper
Salt Leach Pre-Feasibility Study Highlights:
• Potential to increase copper recoveries by 10%, up to 40% reduction of leaching cycle, and up to 40% reduction in
sulfuric acid consumption
• Estimated capital cost of US$6.9 million, which includes the activities from detailed engineering to the end of
construction
Don Gabriel Manto Feasibility Study Highlights:
• Almost triples production from the Don Gabriel Manto open pit
• Mine plan based on mineral reserves of 5.17 million tonnes at 0.81% CuT at a copper cut-off grade of 0.25%
• Produce approximately 14 million pounds of copper per year over a six-year reserve life
• Net Present Value (“NPV”) of US$50.6 million using an 8.0% discount rate for the Don Gabriel Manto mineral reserves
utilizing salt-leach methods commencing in 2019
Note that the NPV does not include the capital cost of the Salt Leach, which will be carried by all of the deposits being
exploited on the MTV properties. Royalties and taxes are also excluded from this economic analysis. The economic analysis
only includes proven and probable mineral reserves from the Don Gabriel Manto production schedule that appears in Table 16-
3 of the Technical Report. Inferred mineral resource is assumed to be waste. Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
MTV continues to work with Wood plc on a pre-feasibility level underground mining study for the exploitation of the Papomono
Massive underground deposit, with the objective of defining further mineral reserves. It is MTV’s objective to combine the
studies with preliminary economic assessment level studies on ancillary deposits to produce a property-wide production
profile.
About MTV
MTV is a fully permitted operating mining complex located nine kilometers from Salamanca in Region IV of Chile. MTV
comprises two main deposits: Papomono (underground) and Don Gabriel (open pit). The mine is currently operating and
producing high grade copper cathodes. The mine has significant infrastructure in place with a processing plant with nameplate
capacity of up to 7,000 tonnes per day. The plant is designed to produce up to 18,500 tonnes per annum of thin copper
cathodes. For more information about MTV, please visit www.mineratresvalles.com.
About Sprott Resource Holdings Inc.
SRHI is a publicly-listed diversified resource holding company focused on holding businesses in the natural resource industry.
Based in Toronto, SRHI is a member of the Sprott Group of Companies and is managed by a team of leading resource
professionals. SRHI’s current businesses and holdings are concentrated in the mining and energy sectors. SRHI takes an
active role in the businesses in which it operates and is committed to being a high-value partner to the management teams it
backs and the co-investors who invest alongside SRHI. For more information about SRHI, please
visit www.sprottresource.com.
Qualified Persons
The scientific and technical information regarding the MTV project included in this press release has been reviewed and
approved by Michael G. Hester, Vice President, IMC, M.S. Mining Engineering; Gabriel Vera, President, GVMetallurgy,
Metallurgical Engineer; and Enrique D. Quiroga Vega, Mining Engineer, Q & Q Ltda., each of whom is an independent
“qualified person” (as defined in NI 43-101) and was involved in the preparation of the Technical Report. Scientific and technical
information regarding the MTV project has been included in this press release in reliance on their expertise.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this press release contain forward-looking information (collectively referred to herein as the "Forward-
Looking Statements") within the meaning of applicable Canadian securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are
intended to identify Forward-Looking Statements. In particular, but without limiting the forgoing, this press release contains
Forward-Looking Statements pertaining to: (i) the implementation of and expected benefits from the Salt Leach, (ii) the
expected benefits from the expansion of the Don Gabriel Manto open pit, (iii) expectations regarding the results of economic
and technical studies of the MTV properties, including the provision of technical reports with respect thereto, and (iv)
development of the mine plan at Papomono Massive, Don Gabriel Vein and other deposits.
Although SRHI believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results,
performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking
Statements, including: (i) copper markets and the price of copper in the future; (ii) the continued availability of quality
management; and (iii) that the effects of regulation and tax laws of governmental agencies will not materially change. Actual
results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking
Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or
other factors materialize, including: (i) possible variations in ore grade or recovery rates; (ii) copper price fluctuations and
uncertainties; (iii) delays in obtaining governmental approvals or financing; (iv) risks associated with the mining industry in
general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves,
production, costs and expenses; and labour, health, safety and environmental risks); (v) risks associated with investments in
emerging markets; and (vi) those risks disclosed in the Corporation’s filings with Canadian securities regulators on SEDAR at
www.sedar.com. The Forward-Looking Statements speak only as of the date hereof, unless otherwise specifically noted, and
SRHI does not assume any obligation to publicly update any Forward-Looking Statements, whether as a result of new
information, future events or otherwise, except as may be expressly required by applicable Canadian securities laws.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: This
press release may use the terms "measured", "indicated" and "inferred" mineral resources. United States investors are
advised that while such terms are recognized and required by Canadian regulations, the United States Securities and
Exchange Commission does not recognize them. "Inferred mineral resources" have a great amount of uncertainty as to their
existence, and 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 category. Under Canadian rules, estimates of inferred mineral resources may not
form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part
of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also
cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable.
For further information:
Glen Williams
Managing Director, Investor Relations
T: (416) 943-4394