The historic resource area is located approximately a mile west of the new discovery at Penelas East and was drilled in the late 1970s through the early 1990s by previous explorers, including Kennecott, Newmont, Viceroy, and Miramar, among others. There are very few drill holes between the historic resource area and the new discovery hole at Penelas East. The metallurgical test program was undertaken to determine if gold extractions and reagent consumptions were sufficiently favorable to warrant further drilling and advancement of the historic resource and its open extensions.
"The very positive metallurgical results support advancing the historic resource area to a level that will allow reporting both the resource and the ultimate project economics under NI-43-101 standards," said Greg Hahn, Chairman and CEO of Canamex.
"We are pleased with the results of the metallurgical test program which reaffirms our belief in the resource potential of the Bruner project area and the significance of pushing the historic area to be reportable under NI-43-101 standards," said Karl Boltz, Vice President of Business Development for Patriot Gold. "The Bruner site continues to live up to its promise and we look forward to reporting more positive findings going forward."
The final calculated head grade of the sample was 0.0311 opt Au (1.067 gpt), and final tail analysis was 0.0034 opt Au (0.1166 gpt). The final head grade is close to both the targeted and estimated grades of the historic resource; therefore, the sample is believed to be representative of the deposit. Final cyanide consumption was 1.24 lbs./ton and lime addition was 3 lbs./ton, which are both low and which represent low reagent consumption and therefore low reagent costs for heap leaching.
Completion of an internal review of the impact of these results indicates that advancing the historic resource area to be reportable under NI 43-101 standards is well worth doing and could add significant shareholder value as the process progress. The internal review included examination of the merits of advancing the historic resource area towards development, as well as a comparison of gold extractions with those from a full feasibility study completed in 2012 and reported for a nearby gold project of similar size and grade, and with similar physical characteristics and reagent consumption.
"The material in columns was still leaching after 83 days, and we believe we can ultimately achieve higher column extractions by maintaining material under leach for longer periods of time. The most important aspect of the column test results is that we achieve +80% extractions in both -3 inch and -3/4 inch crush sizes in 40 days," concluded Greg Hahn, Chairman and CEO of Canamex. Tail screen analyses indicate the majority of what little gold remains in the tails was in the coarse fraction, suggesting either longer leach times or additional crushing could liberate the balance of the contained gold.
The Bruner Project
The Bruner Project is situated in central Nevada, fifteen miles north of the Paradise Peak mine, forty-five miles northwest of Round Mountain and twenty-five miles east of the Rawhide mine. Historic production included about 100,000 ounces at an average grade of 0.56 opt gold. Since commencing drilling with Canamex in November 2011, the project has completed 14 drill holes through reverse circulation techniques.
All metallurgical testing and analytical work was performed by Kappes, Cassidy & Associates in Sparks, Nevada, under the guidance and supervision of Mr. Eugenio Iasillo, P.E., consulting metallurgist to the Company.
The geological disclosure in this press release has been reviewed and verified by Canamex's Chairman and CEO, Greg Hahn, a Certified Professional Geologist (#7122), a Qualified Person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
Patriot Gold's Option To Canamex
Through its subsidiary Provex Resources, Patriot Gold owns 100% undivided rights, title and interest in the project. In May 2010, Provex entered into an agreement with Canamex Resources Corp. to develop the property. Under the agreement, Canamex has the right to earn 70% interest in the Bruner project by spending $6 million over seven years and may earn an additional 5% by completing a bankable feasibility study for a total of 75% interest in the project.
Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.