Patriot Gold Corp.
Tuesday, March 07, 2017 - 9:00 AM EST

Patriot Gold Provides Shareholder Update



Las Vegas Nevada (FSCwire) - Patriot Gold Corp (PGOL) (“Patriot”) provided the following update today to shareholders on its Moss Mine royalty, its 30% Bruner gold project interest, and its 100% interest Vernal and Windy Peak gold projects.

 

The Moss Mine:

 

The Moss Mine is owned by Northern Vertex Mining Corp. (“Vertex”). On February 23, 2017, Vertex confirmed that the Moss Mine is scheduled to commence commercial gold-silver production in Q4 2017, has a capital cost estimated at US$33 million, and is expected to generate an average annual production of 42,000 oz gold Eqv. with an all-in sustaining costs of US$662/oz gold and an after-tax IRR of 48% (based on US$1,250/oz gold and US$20/oz silver).

 

Vertex also provided an update (on February 2, 2017) on the Phase III Mine Extension, stating that Vertex has engaged the services of Mine Development Associates (“MDA”), of Reno, NV to initiate mine design for the Phase III Mine Plan of Operations (MPO) and Permitting. The Phase III resource is estimated at 435,000 gold Eqv. oz (Measured 4.86M tonnes @ 1.1 gpt gold Eqv. and Indicated 10.62M tonnes @ 0.77 gpt gold Eqv., using $1,250/oz gold and $20/oz silver price) and was identified in the National Instrument 43-101 Technical Report (effective date October 31, 2014, report dated December 30, 2014). The Phase II pit Feasibility Study Technical Report (effective date June 8, 2015, report dated July 13, 2015) was constrained by the boundary limits of the patented property resulting in a proven & probable reserve of 238,010 gold Eqv. oz (7.96M tonnes @ 0.93 gpt) and stock pile reserves of 1,750 gold Eqv. oz (61,965 tonnes @ 0.88 gpt, using $1,250/oz gold and $18.50/oz silver price) planned to be mined in Phase II. To utilize the balance of the resource identified in the December 30, 2014 report will require operations on the company’s unpatented claims (BLM Land). Mining on, or disturbance on the BLM Land must first undergo NEPA (National Environmental Policy Act) analysis and Federal permitting starting with the submission of a Mining Plan of Operations (MPO) to the BLM. The engagement of MDA for pit design will be the first step in the MPO process and will give Northern Vertex a preliminary start towards Phase III permitting.

 

Phase III would substantially increase the size of the Moss Mine and more than double the mine life.

 

Patriot Gold owns a 3% royalty on the Moss Mine. The undiscounted value of the royalty based on Phase II and Phase III of Moss Mine Production is between US$ 13-15 MM. Based on the 42,000 oz gold Eqv. production per annum at the Moss Mine, Patriot Gold's royalty equates to 1,260 oz gold Eqv. per annum.

 

The Bruner gold project:

 

The Bruner gold project in Nevada is 30% owned by Patriot and 70% owned by Canamex Resources Corp ("Canamex"). The project has had a preliminary economic assessment ("PEA") carried out to provide an independent opinion on the technical and economic aspects and mineral resources at Bruner, which conforms to NI 43-101, Companion Policy 43-101CP and Form 43-101F, and is based on all available technical data and information as of February 29, 2016. The PEA plan is for an open pit mine for the Bruner Gold Project, and shows the economic viability of the deposit.

Mineral resources based on design pits for $1350/oz Au price cone shell are estimated to be:

 

  • An Indicated Mineral Resource of 14,050,000 tonnes at an internal cutoff grade of 0.117 gpt Au_Eq, an average grade of 0.58 gpt Au containing 260,000 gold ounces.

 

  • An Inferred Mineral Resource of 2,950,000 tonnes at an internal cutoff grade of 0.117 gpt Au_Eq, an average grade of 0.66 gpt Au containing 63,000 gold ounces.

 

  • The Project demonstrates strong economic viability at a variety of metal prices with a significant upside potential should metal prices regain previous strengths seen in the three year trailing average.

 

  • At the PEA base case of $1,250/oz Au the Project has strong economics with a pre-tax payback of nominally 1.25 years, pre-tax IRR of 42.1%, and an after-tax IRR of 39%.

 

  • The PEA estimates initial capital expenditures to be $33.4 million. 

 

The Vernal and Windy Peak gold projects:

 

The Vernal gold project is located within the Walker Lane, a northwest trending belt with several producing mines, all million ounce plus deposits. The property is located approximately 140 miles east-southeast of Reno, Nevada on the west side of the Shoshone Mountains. In previous sampling, a 225 foot wide zone of outcropping quartz stockworks was identified with assays as high as 0.46 oz/ton (15.7 g/t) gold. Sampling of old dumps and pits shows an open-ended gold anomaly that measures 630 feet by 450 feet within which assays of up to 0.44 oz/ton gold are found. The property contains untested veins, sheeted veins, and stockwork targets. Patriot's exploration of the Vernal to date has consisted of geologic mapping, rock chip geochemical sampling, and trenching. Based on these results, Patriot intends to initiate further sampling in order to define drilling targets. Patriot has a 100% interest in the Vernal gold project.

 

The Windy Peak gold project consists of 79 unpatented mineral claims located in the Fairview mining district in southwest Nevada. Windy Peak is easily accessed, and is approximately 45 miles southeast of Fallon and 6 miles from Middlegate. Extensive historic work has been conducted on the project, including geologic mapping, rock and float sampling, geophysical surveys and drilling. Several drill-ready targets have been identified which will test the project's potential for large-tonnage, disseminated gold mineralization adjacent to gold-mineralized structures. Patriot has a 100% interest in the Windy Peak gold project.

 

Qualified Person:

 

The foregoing technical information contained in this news release has been reviewed and verified by Zachary Black, Director and a Qualified Person (“QP”) for the purpose of National Instrument 43-101 (Disclosure Standards for Mineral Projects).

 

About Patriot Gold:

 

Patriot Gold Corp. is a precious metals exploration and production company with the mission to discover and develop significant gold and silver assets in Arizona and Nevada. Patriot holds a 3% royalty in the Moss Mine in Arizona, a 30% interest in the Bruner gold project in Nevada, and a 100% interest in the Vernal and Windy Peak projects in Nevada.

 

For further information about Patriot Gold Corp, please visit www.patriotgoldcorp.com

or contact Investor Relations at: 702-456-9565.

 

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.



To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/Patriot03072017.pdf

Source: Patriot Gold Corp. (OTCQB:PGOL)

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