Dec 4 2012
New Carolin Gold Corp. ("NCGC" or the "Company") is pleased to announce it has entered into a Letter of Intent with Shoreline Resource Management Group (SRM), located in Oakville, ON, in respect to establishing a tailings gold processing facility at the Carolin Mine in 2013.
SRM is a resource management consulting company that provides Engineering, Procurement, Construction and Management of Operations (EPCM) in the mining sector and whose principals have built mill facilities in over 40 countries. SRM management has combined over 150 years experience in the mining and mineral processing industry.
The NI 43-101 resource study delineated an Indicated Mineral Resource estimate of 23,700 oz gold in 445,378 tons at a cutoff grade of 1.00 g/t gold and an Inferred Mineral Resource estimate of 5,000 oz gold in 93,304 tons at a cutoff grade of 1.00 g/t gold (see press release of November 9, 2011).
Under the Terms and Conditions of the Letter of Intent:
- SRM will provide a turnkey operation and cover all costs associated with EPCM which SRM will coordinate with their contracting partners;
- SRM will retain a 65% share of the proceeds from the tailings resource and NCGC 35%;
- SRM's mining team will complete a site inspection scheduled for the second week of December 2012, to determine mill location and meet with Company representatives to discuss metallurgy, options for maximizing recoveries, improving gold concentrates and the schedule associated with constructing a modular gold processing facility;
- SRM has 45 days to complete their due diligence and develop an economical and financially viable processing plan and complete a definitive agreement;
- Upon completing the definitive agreement, NCGC will add a member of SRM's executive team to the Board of Directors of NCGC.
John Carter, CEO of Shoreline stated, "Shoreline looks forward to an alliance with NCGC to establish a mill facility, process the tailings to recover gold in concentrate and develop a long-term relationship with NCGC regarding its primary assets. Shoreline's mining group has been involved in the design, fabrication, and construction of many milling / processing facilities and based on our initial review of the NI 43-101, PEA and positive metallurgical test results, our team views processing the tailings to recover gold in concentrate as financially viable and a rewarding opportunity. The project may have even further benefit, as we noted in the NI 43-101 resource report that only 60% of the tailing surface was drilled. In any event, with our knowledgeable and experienced mining team behind this project, I am confident Shoreline can procure the best possible facility and gold recovery process to liberate the approximate 30,000 ounces gold in the tailings and ensure maximization of profits for this partnership."
Bruce Downing, President and CEO of NCGC stated, "The Company has been approached by several companies who have shown interest in the tailings project, including one that has expressed interest in an off-take agreement for the gold concentrate. After evaluation, the Company has selected Shoreline to take the lead in developing the tailings project. The success of this project will help to initiate the development process for the Carolin Mine, provide free cash flow to meet financial obligations and provide non-dilutive capital to drill and increase the existing resource. Based on the business acumen of the principals of Shoreline and their considerable mine and processing expertise, NCGC looks forward to a strategic relationship and moving from exploration to a production company. In anticipation of increased activity NCGC has rented a secured warehouse / office space in Hope, BC, for storage and local working purposes."