The private placement is subject to the approval of the TSXV and the securities will be subject to a four month hold period under securities laws. Net proceeds from the financing will be used to advance the development of the Pegmont Lead-Zinc project and for general working capital. Finder's fees of up to 7% cash or 7% shares may be payable in this private placement.
Pegmont Program Update
Drilling at the Pegmont project was suspended on
A further 2 holes were completed at Killer Bore zinc prospect for a total of 355.10 m.
Logging and sampling of the core are now complete, samples have been submitted to ALS Townsville for analysis. The Company anticipates a turnaround time of approximately two months for assay results. Results will be reported as they become available.
Performance Share Units
The Company further announces receipt of
About the Pegmont Lead-Zinc Deposit
Vendetta's 100% owned
The current Mineral Resource Estimate at the Project is as follows:
Indicated 5,758 Kt @ 6.5% Pb, 2.6% Zn, 11 g/t Ag
Inferred 8,277 Kt @ 5.1% Pb, 2.8% Zn, 8 g/t Ag
1. Prepared by independent qualified persons (QPs)
2. CIM Definition Standards (2014) were used to report the Mineral Resources.
2. Cut-off grade applied to the open pit Mineral Resources is 3% Pb+Zn and that applied to the underground is 5% Pb+Zn.
3. Based on the following metal prices:
4. Exchange rate of
5. Metallurgical recoveries vary by zone and material type as follows:
Lead to Lead concentrate: from 80.6% to 91.3% for transition and 88.0% to 92.7% for sulphide.
Zinc to Zinc concentrate: from 19.3% to 75.2% for transition and 61.8% to 78.5% for sulphide.
6. Using drilling results up to
7. Mineral Resource tonnages have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
The results of a Preliminary Economic Assessment ('PEA') on Pegmont were released by the Company by news release dated
The PEA indicated a strong sensitivity to metal prices and US$:A$ exchange rate with a pre-tax IRR of 37% (after tax 27%) and NPV8% of
For full details of the Pegmont PEA please see the technical report titled 'Pegmont Project Mineral Resource Update and PEA,' prepared by independent qualified persons (QPs)
About
Qualified Person
Contact:
President & CEO
T: 604-484-7855
The
Cautionary Note Regarding Forward-Looking Information
The
This release includes certain statements and information that may be deemed to be 'forward-looking statements' or 'forward-looking information' within the meaning of the applicable
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.
Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices; changes in expected mineral production performance; unexpected increases in capital costs; exploitation and exploration results; continued availability of capital and financing; differing results and recommendations in the preliminary economic assessment; and general economic, market or business conditions.
In addition, forward-looking statements are subject to various risks, including but not limited to operational risk; political risk; currency risk; capital cost inflation risk; that data is incomplete or inaccurate; the limitations and assumptions within drilling, engineering and socio?economic studies relied upon in preparing the 2019 Pegmont PEA; and receipt of regulatory and other approvals and/or consents in respect of the Offering in particular. There can be no assurance that the Offering will be completed on their terms or at all.
The reader is referred to the Company's filings with the Canadian securities regulators for disclosure regarding these and other risk factors, accessible under the Company's profile at www.sedar.com.
There is no certainty that any forward-looking statement will prove to be accurate and investors should not place undue reliance upon forward-looking statements. The Company does not undertake to provide updates to any of the forward-looking statements in this release, except as required by law.
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