NWM Announces Drill Program to Increase Resources/Reserves at Lluvia de Oro
TSX Venture Exchange
TORONTO, April 4, 2013 /CNW/ - NWM Mining Corporation ("NWM" or the "Company")
(TSX-V: NWM) is initiating a drill program with the objective of adding
mineral resources and mineral reserves at the Company's Lluvia de Oro mine in
Sonora, Mexico. The primary focus of the program will be to upgrade a
significant portion of the currently defined inferred resources (approximately
200,000 ounces / 17,000,000 tonnes at 0.36 g/t Au)(*1) at the Lluvia de Oro
deposit to a status of measured and indicated mineral resources. The cost
structure of the current mining operations indicates that these mineral
resources can then be converted to mineral reserves. In addition, the drill
program will also aim to define new inferred resources along strike from the
currently defined mine reserves. An updated reserve/resource estimate is
expected to be completed during the summer of 2013.
Highlights for the planned resource expansion program include:
-- The inclusion of new data from 111 drill holes (75 diamond/"DD"
and 35 reverse circulation/"RC") totalling approximately 18,000
meters that were completed prior to the existing resource
estimate (2010). These holes have been re-logged and prepared
for data analysis. The holes were completed to test extensions
of the Lluvia de Oro deposit as well as to test other
prospective locations within NWM Mining's 5,700 Ha contiguous
-- Approximately 5,000 meters of RC drilling that is targeted
specifically at areas of the Lluvia de Oro deposit containing
significant quantities of inferred gold resources. The goal is
to convert a substantial portion of these gold ounces into
measured and indicated resources.
-- Recent geological modelling has clearly identified potential
areas for extension of the Lluvia de Oro orebody along strike
from the current reserves. A portion of the currently planned
program will target these areas in order to expand the overall
-- A small grid of shallow drill holes will be completed at the
company's Gold Ridge target located adjacent to the Lluvia de
Oro deposit in an area where test mining was undertaken in
2012. The objective of this work is to better define the
geological continuity of this highly prospective area.
"The new management team continues to make progress at Lluvia de Oro including
developing a more comprehensive understanding of the geological model for the
Lluvia de Oro deposit. This work has allowed NWM to optimize this Phase 1
program such that a modest quantity of drilling can be leveraged to have the
maximum impact on growing overall project resources. The Lluvia-Jojoba
property is underexplored and the planned drill program is expected to add
meaningfully to gold reserves and mine life. Additional operational changes
continue to be implemented at site as mine production rates ramp up over the
course of 2013," said Chris Berlet, CEO
(*1) Inferred resources as recalculated from existing 43-101 resource estimate
block model (Pre-feasibility Report Update and Reserve Analysis, July 2010)
using current project economics and gold price of $US 1400 per ounce.
About NWM Mining Corporation
NWM is in commercial gold production at its wholly owned Lluvia de Oro and La
Jojoba gold mine. The mine is an open pit heap leach operation in Northern
Sonora State, Mexico. Management believes the property is underexplored and
hosts significant potential to provide further gold discovery and resource and
reserve upgrades. While management has focused in the past on developing the
mine and supporting cash flows, the focus in 2013 will shift to increasing
mining rates and drilling to expand geological resources and reserves.
This press release has been reviewed by Mr. Darren Koningen, P. Eng. Mr.
Koningen is a Qualified Person under National Instrument 43-101.
Additional information about NWM can be found on the NWM website at
www.nwmcorp.ca or on SEDAR at www.sedar.com.
Neither the 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 of this release.
NWM Mining Corporation at (416) 364-6799.
SOURCE: NWM Mining Corporation
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-0- Apr/04/2013 13:00 GMT
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