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February 3, 2015

Bisha Mining Delivers Significant Resource Growth from 2014 Drilling

Highlights

  • Measured and indicated resources of our deposits now contain  1.2 billion pounds copper, 3.4 billion pounds zinc, 750 thousand ounces gold, and 42 million ounces silver
  • Inferred resources contain  an additional 237 million pounds copper , 757 million pounds zinc, 311 thousand ounces gold, and 11 million ounces silver
  • Harena indicated resources approximately doubled in size
  • Harena inferred resources grew eighteen fold to 6.4 million tonnes with grades of 1.1% Cu and 3.7% Zn
  • Bisha remains open at depth, Harena remains open at depth and along strike
  • Drilling is underway at Bisha and Harena with an accelerated exploration plan for 2015
  • Underground scoping assessment to begin at Bisha and Harena

 Bisha Mining Resource Company (BMSC or the Company) is pleased to announce the updated mineral resource estimate effective date December 31, 2014, for the Bisha and Harena deposits.  These updated resources form the first part of the annual year end mineral reserve and mineral resource statement for 2014.  The updated mineral reserve estimate will be released in the coming weeks.

 The Bisha primary indicated resource grew by 0.9 million tonnes and primary inferred resource grew 0.6 million tonnes.  This primary zone growth added indicated resources of 83 million pounds of zinc and 40 million pounds of copper and inferred resources of 96 million pounds of zinc and 21 million pounds of copper.  Of even greater significance was the exceptional growth due to the 2014 exploration drilling of the Harena primary deposit.  The Harena open pit indicated resource grew by 1.4 million tonnes adding 113 million pounds of zinc and 32 million pounds of copper and primary inferred resources increased by 6.1 million tonnes for an addition of 498 million pounds of zinc and 156 million pounds of copper.  Tables 1.1 to 1.5 contain the complete mineral resource estimates for each deposit. 

Cliff Davis, BMSC Chairman, commented, “The drilling at Harena has produced a substantial increase in the total resource available for the Bisha operations and demonstrates the success of the 2014 drilling program.  Since the restart of exploration last year, the estimated cost of discovery at Harena has been approximately 2 cents per pound copper and 1 cent per pound zinc.  This tremendous cost efficiency speaks to how we approach our operating practices.  As exploration continues at Harena, excellent potential remains for additional resource expansion not only at Harena, but also at our three other deposits within the Bisha VMS District. The same methodology that was applied to Harena is now being applied to the Bisha deposit as we further explore Bisha along strike and at depth.  During 2015 we will begin the scoping of underground mining at Bisha and Harena.” 

Qualified Persons Statement

 The information in this news release that relates to mineral resources for Harena and Bisha was prepared by Matt Bampton, a Qualified Person as defined by NI 43-101.  Mr. Bampton has reviewed and approved the technical contents of this press release for his relevant sections. The information in this press release that relates to mineral resources for Hambok and Northwest have not changed from the previous year as there was no update.  Last year, this had been prepared by Paul Gribble, a Qualified Person as defined by NI 43-101.  Mr. Gribble has again reviewed and approved the technical contents of this press release for his relevant sections.

 A Quality Assurance/Quality Control programme was part of the sampling programme for the Bisha work. Certified reference material (standards), duplicates and blank samples are systematically inserted into the flow of drill samples and results analysed on a batch by batch basis. This programme includes a chain of custody whereby diamond drill core samples are initially crushed and subsampled at the Bisha Mine sample preparation facility and pulverised and analysed by ALS Chemex in Vancouver. Multi-element analysis is completed using ICP-AES methods; gold is analysed by fire assay with AAS finish. Reverse circulation drill samples are processed at the Bisha Mine on site laboratory, which is a member of the SGS group. Multi-element analysis is completed using AA methods with gold also analysed by fire assay. 

 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 which will be reported in the coming weeks.

 

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

Matt Bampton, MAusIMM, MAIG (Cube Consulting) and Paul Gribble, C. Eng, Effective Date: December 31, 2014

Measured 

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

1,420

4.50

 

0.6

23

141,000

  

30

1,060

Primary Phase

 

 

 

 

 

 

 

 

 

Total Measured

1,420

 

141,000

  

30

1,060

 

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

200

 

 

7.8

3

 

 

50

20

Supergene Phase

3,560

2.58

 

0.5

17

202,150

 

60

1,970

Primary Phase

34,610

1.07

4.48

0.5

35

816,390

3,419,490

610

38,770

Total Indicated

38,370

 

1,018,540

3,419,490

720

40,760

 

Measured and 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

200

   

7.8

3

   

50

20

Supergene Phase

4,980

3.13

 

0.6

19

343,150

 

90

3,030

Primary Phase

34,610

1.07

4.48

0.5

35

816,390

3,419,490

610

38,770

Total Meas & Ind

39,790

 

1,159,540

3,419,490

750

41,820

           

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

1,120

 

 

3.9

21

 

 

141

760

Supergene Phase

1,200

1.1

 

0.3

3

29,000

 

10

100

Primary Phase

8,402

1.1

4.1

0.6

38

208,430

757,410

160

10,210

Total Inferred

10,722

 

237,430

757,410

311

11,070

 

Table 1.2 Bisha Mineral Resource Estimate

Matt Bampton, MAusIMM, MAIG (Cube Consulting), Effective Date: December 31, 2014

Measured 

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

1,420

4.50

 

0.6

23

141,000

 

30

1,060

Primary Phase

 

 

 

 

 

 

 

 

 

Total Measured

1,420

4.50

 

0.6

23

141,000

 

30

1,060

 

 

 

 

 

 

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

180

 

 

9.2

 

 

 

50

 

Supergene Phase

2,540

3.01

 

0.6

20

169,000

 

50

1,640

Primary Phase

22,000

1.09

5.79

0.7

46

528,000

2,810,000

500

32,690

Total Indicated

24,720

 

697,000

2,810,000

600

34,330

 

Measured and 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

180

 

 

9.2

 

 

 

50

 

Supergene Phase

3,960

3.55

 

0.6

21

310,000

 

80

2,700

Primary Phase

22,000

1.09

5.79

0.7

46

528,000

2,810,000

500

32,690

Total Meas & Ind

26,140

 

838,000

2,810,000

630

35,390

 

 

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

 

 

5.1

23

 

 

80

360

Supergene Phase

1,100

1.1

 

 

1

27,000

 

 

30

Primary Phase

1,900

1.0

5.4

0.5

38

44,000

226,000

30

2,340

Total Inferred

3,500

 

71,000

226,000

110

2,730

 

 

Table 1.3 Harena Mineral Resource Estimate

Matt Bampton, MAusIMM, MAIG (Cube Consulting), Effective Date: December 31, 2014

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

20

 

 

2.5

25

 

 

0

20

Primary Phase

3,220

0.82

3.77

0.5

27

58,000

268,000

50

2,770

Total Indicated

3,240

 

58,000

268,000

50

2,790

 

 

 

 

 

 

 

 

 

 

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

100

 

 

4.2

33

0

0

10

90

Primary Phase

6,400

1.1

3.7

0.6

38

162,000

529,000

120

7,810

Total Inferred

6,500

 

162,000

529,000

130

7,900

 

 

Table 1.4 Northwest Mineral Resource Estimate

Paul Gribble, C. Eng, Effective Date: December 31, 2014

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

0.8

 

3.7

19

2,000

 

10

70

Primary Phase

100

0.9

0.9

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, 2014

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

0.9

0.2

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)    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, $1.15/lb, $1,335/oz and $21/oz respectively using blocks of all Resource categories. The mining cost and total ore based cost (process, G&A and stockpile rehandle) applied was approximately 10-15% below the long term view on costs with appropriate ore haulage costs for each satellite deposit. Overall pit slopes varied from 31 deg to 44 deg for Bisha, 29 deg to 35.5 deg for Harena, from 39 to 45 for Northwest and 40 overall for Hambok (preliminary assessment). NSR cut-off ($US/t) used were:

a.     Bisha: $40.55 for Oxide Phase; $39.55 for Supergene and Primary Phase.

b.     Harena: $42.71 for Oxide Phase and $41.71 for Primary Phase.

c.     Northwest: $40.70 for Oxide Phase, $39.70 for Supergene and Primary Phase.

d.     Hambok: $44.45 for Oxide Phase and $43.45 for Primary Phase.

(2) Net Smelter Return values were calculated for each block using all resource 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 85%, 54% and 74% were applied for copper, gold and silver respectively.

d.     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.

e.     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.

f.      Northwest oxide zone; recoveries of 88% and 22% were applied to gold and silver respectively.

g.     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.

h.     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%, 36% and 29% were applied for zinc, gold and silver respectively.

i.      Hambok oxide zone; recoveries of 88% and 22% were applied to gold and silver respectively.

j.      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 zero decimal places for silver. Tonnages and grades for the Inferred category are further rounded reflecting the uncertainty that attaches to this category. Contained metal for copper and zinc are rounded to the nearest million pounds for Bisha and Harena.

(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 in the total given in the tables for Bisha and Harena, with their resource category generally reflecting the underlying resource category from which they were derived.

(7) Both the Bisha and Harena Primary Inferred Resources includes an Underground Resource. These were derived by defining a shape around contiguous blocks outside the optimized resource pit shell, where an overall 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.