14:28 | 19.12.2017
Karmin Provides Update on Aripuanã Zinc Project
Karmin Exploration Inc. (“Karmin”) (TSXV and the Lima Stock
Exchange: KAR) is pleased to provide an update on its 30% owned Aripuanã
Zinc Lead Silver Project including significant expenditures of US$8.4
million to the end of the third quarter of 2017.
The Aripuanã project is owned by Mineração Dardanelos Ltda., a joint
venture between Nexa (which holds a 63.3% interest), Milpo (which holds
a 7.7% interest) and Mineração Rio Aripuanã Ltda., a
subsidiary of Karmin Exploration Inc. (which holds the remaining 30%).
Aripuanã is an underground polymetallic project containing zinc, lead
and copper, with an anticipated mine life of 24 years and a projected
start date in 2020. The estimated aggregate capital expenditure required
for this project is US$354.3 million. It is currently estimated that the
Aripuanã project, if and when it is fully developed and
begins operation, could produce an annual average of approximately 51.0
thousand tonnes of zinc in concentrate, 20.0 thousand tonnes of lead in
concentrate, 4.0 thousand tonnes of copper in concentrate, 1.0 million
ounces of silver and 25.0 thousand ounces of gold over a 24-year life of
Aripuanã is an underground polymetallic project located in the State of
Mato Grosso, Brazil, exhibiting characteristics of a Volcanogenic
Massive Sulfide, or VMS, deposit similar to those found at Cerro Lindo.
During 2016 and 2017, the Worley Parsons Company was engaged to develop
a conceptual engineering study on development of an operation with 5,000
tpd ore mining and processing capacity. The environmental impact study
for this project has been submitted to the SEMA/MT and is expected to be
in its approval phase by the second quarter of 2018.
Nexa has a strong track record of mine development and expansion in Peru
and Brazil including the modular expansion of Cerro Lindo’s processing
capacity from an original 5,000 tonnes per day to the current capacity
of 21,000 tonnes per day.
Mineral exploration activities continue to identify mineralized deposits
in the Aripuanã project. The results from these activities indicate
there is the potential to increase the mineral resources in the Aripuanã
project, supporting continued investment in mineral exploration
activities in the project. In particular, the large resource base in the
project indicates the potential for a long mine life of up to 24 years.
Exploration has identified incremental resource expansion at Arex, Link,
Ambrex and Babaçu. In order to execute this expansion, a 28,000 meter
drill program is planned in 2017 focused on resource growth. Geological
mapping and preliminary exploration activities have helped identify
additional, potentially mineralized bodies at Massaranduba, Boroca,
Mocoto and Arpa. It may also be possible to selectively mine areas
containing high-grade ore during the early years of the life of mine to
improve capital returns. It is intended that trade-off studies will be
carried out related to the mineral process in order to better identify
the potential of the Aripuanã project.
The common shares of Karmin are listed on the TSX Venture Exchange and
the Lima Stock Exchange and trade in both markets under the symbol
“KAR”. The principal business of Karmin is to acquire, explore and
develop resource properties.
Disclaimer Relating to Forward-Looking Information
This news release contains forward-looking statements that are based on
the belief of management and reflect Karmin’s current expectations.
Forward-looking statements include, but are not limited to, possible
events and statements. The words “potential,” “possible,” “expects,”
“plans,” “scheduled,” “estimates,” “anticipates” 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
or occur, and similar expressions identify forward-looking statements.
The forward-looking statements and information in this press release
include, but are not limited to the mineral resource estimates and the
business plans of Karmin. Such statements and information reflect the
current view of Karmin with respect to risks and uncertainties that may
cause actual results to differ materially from those contemplated in
those forward-looking statements and information.
Such statements are not historical facts. Readers are cautioned not to
place undue reliance on forward-looking statements, as there can be no
assurance that the plans, intentions or expectations upon which they are
based will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections in the forward-looking statements
will not occur, and that actual performance and results in future
periods may differ materially from any estimates or projections of
future performance or results expressed or implied by such
The Aripuanã Zinc-Lead-Silver Project and the land it relates to is an
exploration property only. Accordingly, there are a number of important
factors that could cause Karmin’s actual results to differ materially
from those indicated or implied by forward-looking statements and
information. Such factors relating to the Aripuanã Zinc-Lead-Silver
Project include, among others, the timing and content of work programs,
results of the development of mineral properties, the interpretation of
drilling results and other geological data, the uncertainties of
resource and reserve estimates, receipt and security of mineral property
titles, receipt of licenses to conduct mining activities, project cost
overruns or unanticipated costs and expenses, fluctuations in metal
prices and general market and industry conditions, changes in national
and local government legislation, taxation, controls, policies and
regulations, the security of personnel and assets, and political or
economic developments in Canada and Brazil, operating or technical
difficulties in connection with mining or development activities,
employee relations, the speculative nature of mineral exploration and
development and the risks and hazards associated with the business of
mineral exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins and flooding.
The forward-looking statements contained in this news release are made
as of the date of this news release. Readers should not place undue
importance on forward-looking information and should not rely upon this
information as of any other date. Except as required by law, Karmin
disclaims any intention and assumes no obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Karmin undertakes no
obligation to comment on the expectations of, or statements made by,
third parties in respect of the matters discussed above.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171219005642/en/