Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
TORONTO, ONTARIO–(Marketwire – Nov. 28, 2011) – Probe Mines Limited (TSX VENTURE:PRB.V – News) (“Probe” or the “Company”) is pleased to announce that it has received positive preliminary gold metallurgical results from its Initial Scoping Metallurgical Study for the Borden Lake Gold Project near Chapleau, Ontario. The testwork was carried out on two composite samples, one higher-grade and one lower-grade, Composite 1 and Composite 2, respectively, taken from drill core samples through the discovery section of the Borden Lake Deposit. Metallurgical test results for gold (“Au”) indicate recoveries of up to 90.4% Au for Composite 1 and 92.6% Au for Composite 2 using standard gravity, flotation and leach methods.
Core samples from BL11-MET were sent to SGS Laboratories in Vancouver where they were combined into the two composite samples, 1 and 2, with average grades of approximately 1.6 g/t Au and 4.2 g/t Au, respectively. As part of the Initial Scoping Metallurgical study, the metallurgical test program results reported here for gold in the two composites consists of: 1) gravity separation of whole ore; 2) flotation testing of whole ore and gravity tailings; and 3) cyanide leaching of whole ore, gravity tailings, flotation tailings and flotation concentrate.
Flotation with and without gravity pre-concentration showed minor differences in gold recovery, indicating that any free gold present in the ore is relatively fine and recoverable by flotation. A combination of flotation and leaching produced the highest Au recoveries in the test work.
Cyanide leaching of whole ore at grind sizes ranging from K80 100 to 144 microns returned gold extractions ranging from 86.4 to 87.7% for the low grade composite and 90.1 to 91.8% for the high grade composite. Finer grinds have yet to be evaluated.
Full results are not yet in hand, but available data from cyanidation tests on gravity tailings suggest that gravity recoverable gold is relatively fine and recoverable by conventional cyanidation.
The metallurgical testwork is ongoing and results for silver recoveries, environmental testing of tailings and mineralogical studies are expected shortly.
For each composite, a total of 2 gravity separation tests, 5 whole ore rougher kinetics flotation tests, 4 whole ore open circuit cleaner flotation tests, 4 gravity tails flotation (2 rougher, 1 cleaner, 1 leaching feed) and 6 leaching tests (3 whole ore, 1 gravity tails, 1 flotation tails, 1 flotation concentrate) have been conducted to date. Highlights from these tests are presented in the following tables:
David Palmer, President and CEO, stated “We are very encouraged with the preliminary results from this initial metallurgical program, which has demonstrated that we can obtain good recoveries with standard, cost-effective methods. As with the drilling and resource estimates, these preliminary metallurgical results continue to validate the Borden Lake project’s economic potential. We are now focusing on the next phase of test work in order to optimize recoveries and the process flow sheet.”
The contents of this press release have been approved by Independent Qualified Persons Alfred Hayden, P.Eng of EHA Engineering Ltd., an independent consulting metallurgist, and Eugene Puritch, P.Eng. of P&E Mining Consultants. The press release has also been reviewed by Kristelle Sarinas and Jake Lang, B.E.Sc., of SGS Canada Inc.
About Probe Mines:
Probe Mines Limited is a well financed, Canadian base and precious metal exploration company with approximately $35MM in treasury and a portfolio of highly prospective mineral properties. The Company is actively exploring a significant new gold resource on its Borden Lake project near Chapleau, Ontario and owns 875 claims covering approximately 14,000 hectares in the McFauld’s Lake area, including a 100% interest in the Black Creek chromite deposit. Probe is also exploring its Cree Lake gold project in Ontario’s Swayze Belt, under option from Mantis Mineral Corp, and maintains a 5% net smelter royalty on a portion of Agnico Eagle’s Goldex Mine near Val d’Or, Quebec, which began production in 2008. Probe also maintains a 45% interest in a joint venture property with Lake Shore Gold Corp, which surrounds Lake Shore’s Timmins Mine project. The Company’s shares trade on the TSX Venture Exchange under the symbol PRB.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited, visit our website at www.probemines.com.
Forward-Looking Statements
This News Release includes certain “forward-looking statements”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Shares Issued: 62,870,980
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
