TORONTO, March 26, 2013 /CNW/ - Wallbridge Mining Company Limited (TSX: WM) (FWB: WC7) ("Wallbridge") today announced that it has received written notice from the Ontario Ministry of Northern Development & Mines that the certified Broken Hammer Project mine closure plan has been considered filed pursuant to section 143.(8) of the Mining Act, R.S.O. 1990, Chapter M14.
"We are very pleased to have received the formal acceptance and filing of the Broken Hammer Mine Closure Plan. The Closure Plan is a major regulatory requirement and this acceptance and filing has brought Wallbridge's management and board of directors a major step closer to the production decision on this project", stated Marz Kord, President and CEO of Wallbridge. "We will continue our efforts to secure the remaining necessary permits as well as milling and mining contracts, in order to be able to make a final production decision".
Based on the success of a 30,000 tonne bulk sample from the Broken Hammer Zone, excavated and processed in 2011, Wallbridge completed an updated mineral resource estimate and subsequently completed a prefeasibility study in 2012 to determine the economics of the project.
The prefeasibility highlights include:
- Estimated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $8.4 million or $42.60 per tonne of ore
- Estimated total capital costs (CAPEX) for the project of $1.9 million
- Estimated pre-tax Net Present Value (NPV) of $6.0 million using an 8% discount factor
- production rate of 750 tonnes of Cu- PGE ore per day similar to the 2011 bulk sample production rate with an estimated mine life of 12 months
The prefeasibility study recommended that the project proceed to feasibility study. The feasibility study components include securing the necessary permits, a milling contract as well as securing the mining contracts before a final decision is made by Wallbridge's board of directors to proceed with the production of the Broken Hammer project.
The Broken Hammer Mine Closure Plan was prepared for Wallbridge Mining by AMEC Consultants. In Ontario, an accepted, certified Closure Plan is required before starting advanced exploration or mine production. The Closure Plan is an environmental review of the project by the regulatory authorities including public and First Nation groups and it describes measures to rehabilitate the site, and provides financial assurance for the rehabilitation. Pursuant to the Closure Plan, Wallbridge Mining has placed a bond for the rehabilitation of the Broken Hammer Mine with the Ministry of Northern Development & Mines. Other environmental permit applications have also been submitted and are being reviewed by the various governmental agencies and are expected in the second quarter of 2013.
The Qualified Person responsible for the technical content of this press release is Marz Kord, P. Eng., M. SC., MBA, President & CEO For Wallbridge Mining Company Limited.
About Wallbridge Mining
Wallbridge Mining Company Limited (WM:TSX) is an established junior company, formed in 1996, whose mission is to explore and develop platinum group elements (PGE's) in mining friendly jurisdictions of North America.
Wallbridge is currently exploring and developing a large package of properties in Sudbury, Ontario: Canada's premier mining district. These include the permitting stage Broken Hammer mine development project and significant exploration joint ventures with partners Lonmin Plc, Impala Platinum Holdings Limited.
In 2005, Wallbridge created Duluth Metals Limited (TSX:DM) to explore and develop projects in Minnesota, USA. Duluth Metals has since defined the world's largest undeveloped sulfide PGEs, copper and nickel deposit which it is developing through Twin Metals Limited, a joint venture with copper producer Antofagasta Plc. Wallbridge currently retains 10.1 million shares of Duluth Metals (8.1%).
In 2011, Wallbridge created Miocene Metals Limited (TSXV:MII) to explore and develop porphyry copper-gold-molybdenum projects in British Columbia, Canada, within a previously under-recognized belt of Miocene-age intrusions. These projects are early stage with large mineralized structures and alteration zones that are ready for drilling with potential for large tonnage deposits. Wallbridge currently retains 28.4 million shares of Miocene Metals (40.8%).
Wallbridge has a record of successfully generating high potential mineral projects and structuring partnerships and new companies to create value for its shareholders and its partners.
This press release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the operations of Wallbridge and the environment in which it operates. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Wallbridge has relied on a number of assumptions and estimates in making such forward-looking statements, including, without limitation, the costs associated with the development and operation of its properties. Such assumptions and estimates are made in light of the trends and conditions that are considered to be relevant and reasonable based on information available and the circumstances existing at this time. A number of risk factors may cause actual results, level of activity, performance or outcomes of such exploration and/or mine development to be materially different from those expressed or implied by such forward-looking statements including, without limitation, whether such discoveries will result in commercially viable quantities of such mineralized materials, the possibility of changes to project parameters as plans continue to be refined, the ability to execute planned exploration and future drilling programs, the need for additional funding to continue exploration and development efforts, changes in general economic, market and business conditions, and those other risks set forth in Wallbridge's most recent annual information form under the heading "Risk Factors" and in its other public filings. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of Wallbridge. Although Wallbridge has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof.
Wallbridge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. The forward-looking statements contained herein are expressly qualified by this disclaimer.
SOURCE: Wallbridge Mining Company Limited