EDMONTON, ALBERTA--(Marketwired - Aug. 30, 2013) - Firestone Ventures Inc. (News - Market indicators) ("Firestone") announces today that Melior Resources Inc. (TSX VENTURE:MLR) ("Melior") has informed Firestone that they will no longer be proceeding with the Proposed Transaction as announced on July 5, 2013. In addition the bridge loan whereby Melior had agreed to provide Firestone with up to C$500,000 is also terminated with no funds being advanced.
"Although we are disappointed with Melior's decision, Firestone management and board maintain our opinion that our Torlon Hill Zinc-Lead Project is of high quality," said Pamela Strand, President of Firestone "We will start to pursue alternate financing options for the development of the deposit that we have been unable to explore as a result of the non-solicitation covenant granted to Melior."
About Firestone
Firestone is a Canadian-based exploration and development company with zinc-lead-silver projects in Central America. Our 100% owned flagship project is the Torlon Hill Zinc-Lead-Silver Project that hosts a NI 43-101 oxide resource totaling 1,891,636 tonnes in the Measured and Indicated category grading 7.32% zinc, 2.41% lead and 14.25 g/t silver. An additional 169,705 tonnes is classified as Inferred resources grading 4.42% zinc, 1.96% lead and 12.53 g/t silver (see news release Nov. 18, 2008). The NI 43-101 resource used a 3% zinc equivalent cut-off grade and a 35.5% zinc top-cap. The deposit remains open to expansion.
A Preliminary Economic Assessment was completed on the Torlon Hill deposit in March, 2013 by ProMet Dadi Africa (Pty) Ltd., South Africa (see news releases Mar. 6 and Apr. 24, 2013). The PEA Highlights an operation with a five year mine life producing a total of 303,977 tonnes of zinc concentrate at an average grade of 35% zinc and 71,632 tonnes of silver rich lead concentrate at an average grade 60% lead. The lead concentrate will also contain 766,800 oz of payable silver. This projects a 45% IRR, an $18.1 million net present value ("NPV") at an 8% discount rate, a 1.2 year payback with a capex of $26 Million for the Torlon Hill Project using $0.80/lb Zn, $0.80/lb Pb and $24/oz Ag.
In addition to Torlon, Firestone also has a large land position covering a significant portion of the Central Guatemala Zinc District with four drill ready targets and over fifty zinc mineral occurrences. The land position has excellent exploration potential and with systematic exploration could develop as the world's next major zinc district.
The technical information in this news release has been reviewed and approved by Pamela Strand, P.Geol., President of Firestone and a Qualified Person in accordance with NI 43-101.
FORWARD LOOKING STATEMENTS
This news release may contain certain statements regarding future events, results or outlooks that are considered forward looking statements within the meaning of securities regulation. These forward looking statements reflect management's best judgment based on current facts and assumptions that management considers reasonable and include the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential" and "should". Forward looking statements contain significant risks and uncertainties. A number of circumstances could cause results to differ materially from the results discussed in the forward looking statements including, but not limited to, changes in general economic and market conditions, metal prices, political issues, permitting, environmental, exploration and development success, continued availability of capital and other risk factors. The forward looking statements contained in this document are based on what management of Melior and Firestone believes to be reasonable assumptions, however, we cannot assure that the results will be compatible to the forward looking statements as management assumes no obligation to revise them to reflect new circumstances. Readers should not place reliance on forward looking statements.
