Dec 19th, 2012
Smithers, British Columbia
Dome Mountain Mine Update
Management of Metal Mountain Resources Inc. and Gavin Mines Inc. (the "Company") are pleased to provide the following update on the progress at the Dome Mountain gold-silver mine near Smithers, British Columbia.
Over the past year, Gavin Mines assembled an excellent crew and developed strong ore control, safety and engineering protocols to support the mining. However, at the beginning of October management made the difficult decision to temporarily shut down mining operations at the Dome Mountain Mine. The closure followed more than ten months of reviewing various methods of processing the ore from the mine. Management has determined that the most feasible means of processing the ore from the Dome Mountain Mine is to build an on site mill. The Company is now in an excellent position to resume mining activities at the Dome Mountain Mine as the development work required to achieve full scale production has been 75% completed. Resumption of mining activities are anticipated to commence two months before the completion of the on site mill.
We are working diligently toward on site concentrating of the gold-silver ore from the Dome Mountain Mine. The Company is in discussions with private and institutional sources that have expressed interest in financing the project. At the same time, the Company is currently preparing an application to amend our existing Mines Act and Environmental Management Act permits to include on site milling and tailings disposal. The application will be submitted to the Provincial Government early in 2013.
In support of these efforts, Linden Mining and Consulting was contracted to update the pre-feasibility study. After the costs for permitting, engineering, procurement and construction of a 250 tonne per day flotation mill were scoped, Linden Mining & Consulting recalculated the cut-off grade. Based on current reserves, Stage 2 (on site milling) has a positive Internal Rate of Return.
In the meantime, Stage 2 baseline data acquisition and engineering is advancing on the mill and tailings management facility (TMF). Inspectorate Exploration & Mining Services Ltd. has commenced the pre-feasibility level metallurgical level test work required for the mill design. This work is under the direction of Matt Bolu, P.Eng. The engineering firm Golder Associates has been retained to select the TMF site and to complete a scope of test work on the tailings to determine the feasibility of producing a thickened tailings product. The use of thickened tailings has the potential to reduce the cost of tailings storage as well as reduce long term reclamation costs and liability. Work on site selection for the TMF has progressed to the point where four hydrogeological wells and two geotechnical holes will be drilled in early January.
The water treatment plant operated a total of 24 weeks in 2012 treating 38,000m³ or 230m³ per day. In order to reduce this volume in future years, a recycling pump was installed to return water to the mine for use in drilling. The plant was shut down December 4 and is currently being winterized. Based on the current inflows, it is estimated that treatment and discharge will recommence in mid-April 2013.
In addition, on November 19, Kevin Tattersall and Daryl Hanson made a presentation to the Lake Babine Nation Chief and Council, Hereditary Chiefs and members of the community. This was the Company's first contact with the Chief and Council since the elections in June. The Company presented an up-date on our progress at the mine and our plans to permit and construct a mill in 2013. We also restated our willingness and availability to commence negotiations on an Impact-Benefits Agreement (IBA) with Lake Babine Nation.
Daryl Hanson, P.Eng.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. Daryl Hanson, P.Eng. is contracted as a consultant to the company and acted as the company's Qualified Person, as defined by National Instrument 43-101 and has reviewed and approved the full contents of this news release.
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FORWARD LOOKING STATEMENTS:
The information contained in this website is provided solely for the reader's general knowledge. The information is not intended to be a comprehensive review of all matters and developments concerning Metal Mountain Resources Inc. All information is offered on a "best intentions" basis. No securities commission or other regulatory authority in Canada or any other country or jurisdiction has in any way passed upon this information and no representation or warranty is made by the Company to that effect.
This website includes "forward looking statements". Other than statements of historical fact, all statements included in this document, including without limitation, statements regarding exploration results, future plans and objectives of the Company may be forward looking statements. These statements may reflect management's current beliefs and are based on information currently available to management. Forward looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements, including, but not limited to, general economic conditions, changes arising as drilling results unfold, changes in regulatory environments affecting the Company and the availability and terms of subsequent financings. Although the forward looking statements included in this document are based upon what management believes to be reasonable assumptions, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.