Vancouver, B.C.: CMC Metals Ltd. (the "Company") wishes to provide an update on the status at the Radcliff Mine which forms part of the World Beater Property. The Company holds a 100% interest in the Bishop Mill and owns a 50% interest in the World Beater Property and Radcliff Mine.
Pruett Ballarat Inc., ("Pruett") the current operator of the Radcliff Mine, has advised the Company that underground development work on the 5510 Level adit has intersected the targeted high grade mineralized zone. The mineralized zone was partially defined by previous drilling and the 5510 Level adit was driven roughly perpendicular to the strike of the mineralized zone. Mineralization occurs over a drift length of approximately 20 feet (6.1 meters) from Station 1+20 to Station 1+40.
Pruett Ballarat Inc. has also advised the Company that systematic channel sampling has been completed to assess the overall grade of the mineralized zone. A total of 20 systematic channel samples and 10 muck samples have been collected and will be submitted to ALS Global's assay facility in Reno Nevada with results expected to be available in approximately three weeks. Pruett has also advised the Company that a series of six grab samples were collected from the mineralized zone and submitted for assay at Florin Analytical Services, Reno Nevada. The preliminary sample assay results range from 0.058 oz/ton gold to 9.326 oz/ton gold and the arithmetic average of the samples is 2.55 oz/ton. The Company has not independently verified the preliminary sample results reported by Pruett.
Material from the mineralized zone is currently being stockpiled adjacent to the Radcliff mine workings pending final approval of the operating permit for the Company's Bishop Mill. The Company's current business plan is to selectively mine portions of the high grade indicated resource by underground mining methods and process this material at its wholly owned mill located near the town of Bishop approximately 150 kilometers north of the mine.
The Company advises that management has not based its production decision on a feasibility study of mineral reserves, demonstrating economic and technical viability, and as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
The scientific and technical data contained in this news release pertaining to the World Beater / Radcliff Mine Project was prepared under the supervision of Carl von Einsiedel, PGeo. who is responsible for ensuring that the geologic information provided in this news release is accurate. Mr. von Einsiedel is a "non-independent qualified person" as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Jack Bal, CEO of the Company, states "We are very happy with the progress Pruett Ballarat has had at the Radcliff Mine. We are very encouraged with the high grade assays reported by Pruett Ballarat."
The Company further wishes to announce that it has agreed to issue up to 10,000,000 Units at $0.05 per unit, each unit consisting of one common share and one transferable share purchase warrant. One warrant will be exercisable for one additional common share at $0.06 per share for a two year period. The proceeds derived from this placement will be used towards development of the Company's Bishop Mill and Radcliff Property projects held in the US. A finder's fees may payable in relation to this private placement. This transaction is subject to TSX Venture Exchange approval.
The Company further wishes to announce that it has granted 3,000,000 common shares pursuant to incentive stock options under the Company's Rolling Stock Option Plan, which Plan received shareholder approval at its last Annual General Meeting held August 19, 2014. The options granted will be set for a two year period expiring April 15, 2017 at the exercise price of $0.05 per share. This transaction is subject to TSX Venture Exchange approval.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Jack Bal"
Jack Bal, President & CEO
CMC METALS LTD.
For further information on the Company, please contact Mr. Jack Bal, CEO, Telephone: 604-306-5285 [email protected].
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
"This news release includes certain statements that constitute "forward-looking information" within the meaning of applicable securities law, including without limitation, statements that address the timing and content of upcoming work programs, geological interpretations, receipt of property titles and exploitation activities and developments. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks, including the ability of the Company to raise the funds necessary to fund its projects and, accordingly, may not occur as described herein or at all. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Readers are referred to the Company's filings with the Canadian securities regulators for information on these and other risk factors, available at www.sedar.com. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation"