Bisha Logo

February 18, 2014

 

Bisha Mining Increases Indicated Resource Tonnes by 29% and Contained Copper by 22%

 

 

Highlights

  • Bisha tenements indicated resources of contained copper increases by 22% to 1.4 billion pounds
  • Bisha tenements indicated resources of contained zinc increases to 3.2 billion pounds
  • Bisha pit supergene contained copper increases 1% in probable reserve, even after 2013 depletion
  • All deposits remain open to further resource expansion

Bisha Mining Share Company (“BMSC” or the “Company”) is pleased to announce the maiden open pit mineral resource estimates for the Hambok and Northwest Zone deposits and the updated mineral reserve estimates for the Bisha Main and Harena open pit mines. Hambok and the Northwest Zone are satellite deposits to the Bisha Main pit and, in addition to Harena, are expected to provide additional feed to the Bisha mill, extending mine life.

The total indicated mineral resource estimate of the combined BMSC property tenements has increased 29% from the previous total indicated mineral resource estimate of May 31, 2012, by an additional 9.3 million  combined oxide gold, supergene copper and primary copper-zinc zone tonnes. This results in an additional 247 million pounds of in-situ copper for a 22 percent increase in contained copper and an additional 47 million pounds of in-situ zinc for a 1 percent increase in contained zinc.  Tables 1.1 to 1.5 contain the complete mineral resource estimates for each deposit.

Using a Net Smelter Return (NSR) cut-off of US$39.55 per tonne at $2.90 and $0.92 per pound copper and zinc respectively, the updated Bisha Main pit probable mineral reserve estimate consists of supergene copper ore of 7.4 million tonnes grading at 3.57 % copper, 0.61 g/t gold and 27 g/t silver and primary copper-zinc ore of 18.4 million tonnes grading at 1.02 % copper, 5.66 % zinc, 0.68 g/t gold and 46 g/t silver.  See Table 2.1 to 2.3 for details.

Cliff Davis, BMSC’s Chairman, commented, “Despite mining depletion and cost inflation since our last reserve report in mid-2012, Bisha base metal mine life is 11 years, demonstrating the robust nature of the high grade Bisha Main ore body.”

The maiden open pit Hambok indicated mineral resource estimate includes 6.9 million tonnes grading at 1.14% copper and 1.86% zinc for 172 million pounds copper and 281 million pounds zinc.  The maiden open pit Northwest Zone indicated mineral resource estimate includes 1.0 million tonnes of supergene material grading 1.47% copper and 2.5 million tonnes of primary material grading at 1.04% copper and 1.08% zinc for a combined 92 million pounds copper and 60 million pounds zinc. See Tables 1.4 and 1.5 for details.

Chairman, Cliff Davis further commented, “The addition of new resources at Hambok and the Northwest Zone is an exciting first step to expanding the resource base at Bisha. All four Bisha deposits are open with extensions that we have yet to define.  We also look forward to further exploration success and unlocking the potential in the Bisha VMS camp.”

The associated NI 43-101 Technical Report further detailing and supporting the Mineral Resources and Mineral Reserves highlighted below in this release will be filed no later than 45 days from today’s date.

Forward Looking Statements:  The above contains forward-looking statements regarding increases in estimated grade and mineral resources and reserves, future production profiles, and the effect of future production profiles on future cash flows and net present value.  Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved.  Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors.  The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.

Bisha Mining Share Company

“Cliff T. Davis”

Cliff T. Davis
Chairman

Mineral Resources

The below reported Mineral Resources for Bisha and Harena are inclusive of Mineral Reserves.

 

Table 1.1 Mineral Resource Estimate (Combined Bisha, Harena, Northwest and Hambok)

Paul Gribble, C. Eng, Effective Date: December 31, 2013

Indicated 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

480

-  

 -

6.6

20

-  

-  

100

300

Supergene Phase

8,480

3.41

 -

0.6

25

638,650

-  

160

6,920

Primary Phase

32,260

1.05

4.59

0.6

36

743,920

3,223,350

570

36,430

Total Indicated

41,220

 

 

 

 

1,382,570

3,223,350

830

43,650

 

 

 

 

 

 

 

 

 

 

Inferred 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

570

-  

-  

3.9

19

-  

-

61

350

Supergene Phase

110

1.37

-  

3.4

18

4,200

-

10

70

Primary Phase

1,752

0.80

4.19

0.7

33

31,230

163,210

40

1,910

Total Inferred

2,432

 

 

 

 

35,430

163,210

111

2,330

                       

 

Table 1.2 Bisha Mineral Resource Estimate

Paul Gribble, C. Eng, Effective Date: December 31, 2013

Indicated 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

410

-  

 -

6.8

21

-

-

90

270

Supergene Phase

7,460

3.68

 -

0.6

27

605,500

 -

150

6,590

Primary Phase

21,070

1.05

5.87

0.7

47

487,770

2,726,870

480

31,770

Total Indicated

28,940

 

 

 

 

1,093,270

2,726,870

720

38,630

 

 

 

 

 

 

 

 

 

 

Inferred 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

30

-

-  

7.3

39

-

-

10

30

Supergene Phase

10

7.23

-  

0.1

10

2,200

-

0

0

Primary Phase

1,300

0.80

4.50

0.5

36

23,100

129,600

20

1,500

Total Inferred

1,340

 

 

 

 

25,300

129,600

30

1,530

 

 

Table 1.3 Harena Mineral Resource Estimate

Paul Gribble, C. Eng, Effective Date: December 31, 2013

Indicated 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

70

 -

 -

5.5

14

 -

 -

10

30

Primary Phase

1,800

0.65

3.91

0.6

23

25,760

154,990

30

1,350

Total Indicated

1,870

 

 

 

 

25,760

154,990

40

1,380

 

 

 

 

 

 

 

 

 

 

Inferred 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

20

-

-  

5.9

8

-  

-

0

10

Primary Phase

350

0.75

4.10

0.8

32

5,700

31,200

10

350

Total Indicated

370

 

 

 

 

5,700

31,200

10

360

                       

 

Table 1.4 Northwest Mineral Resource Estimate

Paul Gribble, C. Eng, Effective Date: December 31, 2013

Indicated 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

-

 -

 -

-

-

 -

 -

-

-

Supergene Phase

1,020

1.47

 -

0.2

10

33,150

-

10

330

Primary Phase

2,530

1.04

1.08

0.3

13

58,020

60,250

20

1,050

Total Indicated

3,550

 

 

 

 

91,170

60,250

30

1,380

 

 

 

 

 

 

 

 

 

 

Inferred 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

500

-

-

3.7

18

-

-

50

300

Supergene Phase

100

0.80

-

3.7

19

2,000

-

10

70

Primary Phase

100

0.90

0.90

2.9

15

2,400

2,400

10

60

Total Inferred

700

 

 

 

 

4,400

2,400

70

430

                     

 

Table 1.5 Hambok Mineral Resource Estimate

Paul Gribble, C. Eng, Effective Date: December 31, 2013

Indicated 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

-

 -

 -

-

-

 -

 -

-

-

Primary Phase

6,860

1.14

1.86

0.2

10

172,370

281,240

40

2,260

Total Indicated

6,860

 

 

 

 

172,370

281,240

40

2,260

 

 

 

 

 

 

 

 

 

 

Inferred 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

('000s)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

20

-

-

1.5

17

-

-

1

10

Primary Phase

2

0.90

0.20

0.2

8

30

10

0

0

Total Indicated

22

 

 

 

 

30

10

1

10

 

Notes to be read in conjunction with the Resource tables above:

(1) NSR Cut-Off ($US/t): variable as per tables above. Mineral Resources are defined within an optimal Lerchs-Grossman (LG) Pit Shell, generated using metal prices for copper, zinc, gold and silver of $3.35/lb, $1.09/lb, $1350/oz, $23/oz respectively using blocks of all Resource categories. The mining cost and total ore based cost (process, G&A and stockpile rehandle) applied was the 2014 budget mining cost with appropriate ore haulage costs for each satellite deposit. Overall pit slopes varied from 34.5 deg to 44 deg for Bisha, 29 deg to 35.5 deg for Harena, from 39 to 45 for Northwest and 40 overall for Hambok (preliminary assessment).
(2) Net Smelter Return values were calculated for each block using both Indicated and Inferred categories, metal prices, recoveries, appropriate smelter terms and downstream costs. Metallurgical recoveries, supported by metallurgical test work, were applied as follows:

              a. Bisha oxide zone: recoveries of 88% and 22% were applied for gold and silver respectively.
              b. Harena oxide zone: a recovery of 75% was applied for gold.
              c. Bisha Supergene zone; recoveries of 88%, 46% and 50% were applied for copper, gold and silver respectively.
              d. Bisha Hanging wall zone; recoveries of 85%, 46% and 50% were applied for copper, gold and silver respectively.
              e. Bisha Transition zone (mixed zinc and secondary copper zone below the supergene); recoveries as per supergene zone were applied.
              f. Bisha Primary zone; recoveries to copper concentrate of 85%, 36% and 29% were applied for copper, gold and silver respectively. Recoveries to zinc concentrate of 83.5%, 9% and 20% were applied for zinc, gold and silver respectively.
              g. Harena primary zone; recoveries to copper concentrate of 85%, 36% and 29% were applied for copper, gold and silver respectively. A zinc recovery to zinc concentrate of 72% was applied.
              h. Northwest oxide zone; recoveries of 88% and 22% were applied to gold and silver respectively.
              i. Northwest Supergene zone; recoveries of 87%, 46% and 50% were applied for copper, gold and silver respectively. Zinc has not been assigned a recovery as the values are isolated on the fringes of the deposit.
              j. Northwest Primary zone; recoveries to copper concentrate of 87%, 36% and 29% were applied for copper, gold and silver respectively. Recoveries to zinc concentrate of 81%, 9% and 20% were applied for zinc, gold and silver respectively.
              k. Hambok oxide zone; recoveries of 88% and 22% were applied to gold and silver respectively.
              l. Hambok; recoveries to copper concentrate of 88%, 87%, 36% and 29% were applied for copper, zinc, gold and silver respectively. Preliminary metallurgical characterisation studies, but not full testing have been completed for Hambok.
(3) Mineral Resources are reported within the pit shell generated using the specified commodity prices, using NSR block grade cut-off derived as above. Tonnage is rounded to the nearest 10,000 tonnes and grades are rounded to two decimal places for copper and zinc, one decimal place for gold and no decimal places for silver. Tonnages and grades for the Inferred category are further rounded reflecting the uncertainty that attaches to this category.
(4) Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.
(5) Tonnage and grade measurements are in metrics units. Contained gold and silver ounces are reported as troy ounces, contained copper and zinc pounds as imperial pounds.
(6) Stockpile tonnages are included as Indicated Resources in the total given in the tables for Bisha and Harena.
(7) The Bisha Primary Inferred Resource includes an underground Resource. This was derived by defining a shape around contiguous blocks where an NSR of $100 was achieved. The value of NSR $100 represents the processing cost plus approximately $60/t mining cost.
(8)           Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

 

Mineral Reserves

 

Table 2.1 Mineral Reserve Estimate (Combined Bisha and Harena)

Jay Melnyk, P.Eng, Effective Date December 31, 2013

Probable 

 

Contained Metal 

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

(1000's)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

510

-

-

6.25

19

-

-

103

280

Supergene Phase

7,400

3.57

-

0.61

27

582,420

-

145

6,420

Primary Phase

19,550

1.00

5.54

0.67

45

429,910

2,386,030

421

28,020

Total Probable

27,460

 

 

 

 

1,012,330

2,386,030

669

34,720

 

Table 2.2 Bisha Mineral Reserve Estimate

Jay Melnyk, P.Eng, Effective Date December 31, 2013

Probable 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

(1000's)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

430

-

-

6.50

20

-

-

90

280

Supergene Phase

7,400

3.57

-

0.61

27

582,420

-

145

6,420

Primary Phase

18,390

1.02

5.66

0.68

46

413,540

2,294,730

402

27,200

Subtotal Probable

26,220

 

 

 

 

995,960

2,294,730

637

33,900

 

Table 2.3 Harena Mineral Reserve Estimate

Jay Melnyk, P.Eng, Effective Date December 31, 2013

Probable 

 

Contained Metal

 

Tonnes

Copper

Zinc

Gold

Silver

Cu

Zn

Au

Ag

Zone

(1000's)

%

%

g/t

g/t

('000 lbs)

('000 lbs)

('000 Oz)

('000 Oz)

Oxide Phase

80

-  

-  

4.93

16

-

-

13

-

Primary Phase

1, 160

0.64

3.57

0.52

22

16,370

91,300

19

820

Subtotal Probable

1,240

 

 

 

 

16,370

91,300

32

820

 

Notes to be read in conjunction with the Reserve tables above:

(1) NSR Cut-Off ($US/t): Oxide Phase $40.55 for Bisha and $42.41 for Harena: Supergene Phase $39.55 for Bisha and Primary Phase $39.55 for Bisha and $42.41 for Harena. Mineral Reserves are defined within a mine plan, with phase designs guided by Lerchs-Grossman (LG) Pit Shells, generated using metal prices for copper, zinc, gold and silver of $2.90/lb, $0.92/lb, $1175/oz, $20/oz respectively. The mining cost applied was the 2014 budget mining cost with appropriate haulage cost adjustments. The total ore based cost (process, G&A and stockpile rehandle) are $40.55/t for oxide, and $39.55/t for supergene and primary ores. Harena ore based costs include an additional $2.63/t overland ore haulage cost. Overall pit slopes varied from 34.5 deg to 44 deg for Bisha and from 29 deg to 35.5 deg for Harena.  
(2) Net Smelter Return values were calculated using diluted indicated grades, metal prices, recoveries and appropriate smelter terms and downstream costs. Metallurgical recoveries, supported by metallurgical test work, were applied as follows:
              a. Bisha oxide zone: recoveries of 88% and 22 % were applied for gold and silver respectively.
              b. Harena oxide zone: a recovery of 75% was applied for gold, 80 ktonnes of oxide remain in the Harena pit.
              c. Bisha Supergene zone; recoveries of 88%, 46% and 50% were applied for copper, gold and silver respectively.
              d. Bisha Hanging wall zone; recoveries of 85%, 46% and 50% were applied for copper, gold and silver respectively.
              e. Bisha Transition zone (mixed zinc and secondary copper zone below the supergene): the same metallurgical parameters as the Bisha supergene zone are applied.
              f. Bisha Primary zone; recoveries to cooper concentrate of 85%, 36% and 29% were applied for copper, gold and silver respectively. A recovery to zinc concentrate of 83.5%, was applied for zinc. Gold and Silver reporting to zinc concentrate are not expected to be payable.
              g. Harena primary zone; recoveries to copper concentrate of 85%, 36% and 29% were applied for copper, gold and silver respectively. A zinc recovery to zinc concentrate of 72% was applied. Gold and Silver reporting to zinc concentrate are not expected to be payable.
 (3) Mineral Reserves are reported within Bisha and Harena ultimate pit designs, using NSR block grade, where the marginal cut-off is the total ore based cost stated above. Tonnages are rounded to the nearest 10,000 tonnes and grades are rounded to two decimal places with the exception of silver which was rounded to zero decimal places.
(4) Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.
(5) Tonnage and grade measurements are in metrics units. Contained gold and silver ounces are reported as troy ounces, contained copper and zinc pounds as imperial pounds.
(6) The life of mine stripping ratios tonnes for Bisha and Harena are 5.6: 1 and 5:7 : 1 respectively.
(7) The Bisha Probable oxide Mineral Reserve includes the pyrite sand and uncrushed DSO stockpiled material, being 320 kt at 7.8 g/t Au in stockpile as of 31 Dec 2013.
(8) The Bisha Probable supergene Mineral Reserves include 105 kt at 5.25% Cu in stockpile as of 31 Dec 2013.
.(9) For Bisha and Harena, conversion from Mineral Resource to Mineral Reserve included a mining dilution of 2m applied around contiguous blocks that exceeded the appropriate NSR cut-off value.