Lodestar Battery Metals (“Lodestar” or the “Company”) (TSX-V: SVTN) announce it has filed the independent technical report for the Peñasco Quemado Project (“PQ” or the “Project”) updated Mineral Resource Estimate (“MRE”).
The report titled “NI 43-101 Technical Report for the 2023 Mineral Resource Estimate on the Peñasco Quemado Project, Sonora, Mexico” is dated April 17, 2023 (with an effective date of March 21, 2023) (the “Technical Report”). The Technical Report can be found on the Company’s website (www.lodestarbatterymetals.ca) or under the Company’s issuer profile on SEDAR (www.sedar.com).
The Technical Report was prepared in accordance with National Instrument 43-101 (“N.I. 43101“) Standards of Disclosure for Mineral Projects by Micon International Ltd. (“Micon“) of Toronto, Canada. Highlights of the MRE include:
- 6.2 million ounces (“Moz“) silver classified as inferred (“inf“) at Peñasco Quemado with an average grade of 168.6 grams per tonne (“g/t”) silver.
- Conservative base-case estimate uses 85 g/t silver cut-off grade.
- Relatively low strip ratio of 2.25:1 for Peñasco Quemado resource.
- Future resource growth potential remains at Peñasco Quemado.
Lowell Kamin, President, CEO & Chairman of the Board of Lodestar, said:
We’re thrilled to have filed an updated 43-101 Technical Report for our Peñasco Quemado Project in Sonora, Mexico.
“An updated Mineral Resource Estimate is important to show our investors and other key stakeholders that there’s legitimate value in our properties. We look forward to exploring our established resource zones as we continue to consider our diverse portfolio of Company assets.”
Peñasco Quemado Project Mineral Resource Estimate.
The 2023 MRE objective was to upgrade the historic Peñasco Quemado resource estimate to current standards under the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”). The most notable change in the 2023 MRE is the significant decrease in resource tonnage and a notable resource classification category limited to only inferred resources. The Peñasco Quemado resource now contains 6.2 Moz silver in 1.1 Mt at an average grade of 168.6 g/t silver in the Inferred category.
In addition to its defined silver resources at PQ mineralized zone, a separate pit was generated for the PQ South zone; however, this does not meet the requirement for being potentially economic, as it generated a negative net present value. Thus, a pit-constrained mineral resource could only be reported for the PQ mineralized zone.
This leaves Lodestar with a significant opportunity to expand and build upon the established resources at the Peñasco Quemado property: Further drilling in and around this area may be able to enlarge the existing PQ mineral resource, and this would assist in potentially bridging the gap between the two detached mineralized zones and increasing the resource potential beyond the extent of the current pit shell.
Micon’s QPs have conducted an independent review of the exploration potential of the Peñasco Quemado Project, using historically available information and discussions with Lodestar personnel.
Notes:
- The effective date for the Peñasco Quemado Project mineral resource estimate is March 21, 2023.
- The mineral resources are reported based on open-pit mining method scenarios.
- The pit was constrained based on a bench slope of 30° for the overlying alluvium and 45° for the remaining lithologies.
- The mineralized wireframes (PQ zone) within which the resources are contained were modelled on a cut-off silver grade of 25 g/t.
- Grade capping was applied to reduce the influence of outlier samples, and a cap of 460 g/t silver was applied for the PQ zone.
- The economic parameters used to define mineral resources are a metal price of USD25 per troy ounce of silver, a mining cost of USD2/t, a processing cost of USD40/t and a G&A cost of USD5/t, for a total of USD47/t mined and processed. The silver recovery was estimated at 69%.
- The resource is estimated for silver only, as manganese is not recoverable into a salable product for Peñasco Quemado Project.
- The entire mineral resource has been categorized in the Inferred category.
- The mineral resources presented here were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014.
- 0. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Therefore, the QP believes that, at this time, the mineral resource estimate is not materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues. However, as the Peñasco Quemado Project advances, further required studies in these areas or other socio-political factors may affect the resource estimate.
- 1. The mineral resource estimate has been prepared without reference to surface rights or the potential presence of overlying infrastructure.
- Figures may not total due to rounding.
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Lodestar Battery Metals Files N.I. 43-101 Technical Report for the Peñasco Quemado Project Updated Mineral Resource Estimate, VANCOUVER, BC, May 8, 2023
