Re: News Release - Tuesday, May 03, 2011
CMC Signs LOI to Purchase Radcliff Mine =======================================================================
Vancouver, B.C.: CMC Metals Ltd. (the "Company") is pleased to announce it has purchased 25 percent of the permitted Radcliff Mine located in Inyo County, California for a total payment of US$300,000, US$225,000 of which has been paid and US$75,000 is due in thirty days, to Pruett Ballarat Inc. ("PBI"). The total payment of US$300,000 is to be expended by PBI on the Radcliff Mine for exploration and to stock pile ore for the Bishop Mill. As part of the agreement, the Company can increase its ownership of the Radcliff Mine to 50% upon a further payment of $300,000 on or before December 31, 2013. Currently, PBI has completed the initial development drift and is finishing the raise to the high-grade zone. The last two rounds produced 50 tons per round and demonstrated grades ranging between .5 to 1.0 ounces per ton gold. The production goal of the Radcliff Mine is to sustain 100 tons per day and to stockpile an initial 3000 tons for the Bishop Mill start-up. It is anticipated that ore from the Radcliff Mine will provide 100 percent of the Bishop Mill capacity feedstock from the high grade zone for the next 3 years.
The Radcliff (Worldbeater) Mine is located 8 km from the town of Ballarat and 13 km northeast of the operating Briggs Mine. The current mine developments occur at the upper elevations (4530 to 6580 foot) of the Panamint Mountain Range. Mineralization occurs within quartz-sulfide veins, disseminated sulfides and locally massive sulfides which were emplaced along zones of shearing and dilatency within the argillite and amphibolite units. These units structurally and unconformities overlie quartzofelspathic gneisses and granites of the Worldbeater complex.
The historical production of 14,000 tons produced 14,500 ounces of gold. Only oxide ore was mined and as the development reached the sulfide ores, the development headings were stopped. The Radcliff Mine didn't receive any further development until 1989. Kerr-McGee conducted mapping, sampling, magnetic and IP surveys, plus road construction. In 1992, Echo Bay Exploration optioned the property and continued the exploration of the site and extensively drilled the property. A drill program of 87 drill holes spaced 140 feet for a total 16,806.5 feet delineated the current ore body being developed by PBI. In addition to the drilling, 110 underground channel samples were taken throughout the seven levels and 2400 feet of underground workings. Several preliminary metallurgical studies were also conducted for Kerr-McGee, Battle Mountain Gold, and Echo Bay. The Bishop Mill is a suitable facility to process the Radcliff Mine ore. Once the approval for the new tailings pond and amended Plan of Operation received, stockpiling of the Radcliff ore will begin. It is anticipated that this will this July.
Non-Compliant NI43-101 Historical Resources
The most recent historical resource estimate was conducted by Echo Bay Exploration in 1993. It was estimated that there were 1,148,978 tons grading .244 ounces of gold per ton for a total 280,350 insitu ounces of gold (Echo Bay Exploration, 1992, Mine Development Associates, Neil Prenn, P.Eng., Steven Ristorcelli, P.Geo., 1995). The historical resource estimate was based on a .07 opt Au cut-off and a 2.0 opt high grade cut-off. It was stated by PBI, that the modeled data demonstrated a high-grade zone of 100,000 tons grading 1.0 ounces of gold per ton. The current development plan by PBI is to mine the high grade zone initially for processing at the Bishop facilities than retreat mine the remaining in-place resources.
Cautionary Note: Although the estimate was evaluated by a professional geologist, the estimate preceded the implementation of the NI43-101 Standards of Disclosure and therefore, should not be considered as current mineral resource or mineral reserves as defined in section 1.2 and 1.3 of the NI43-101. Historical estimates should not be relied upon.
In compliance with NI 43-101, Don Wedman, P.Eng., President and Chief Executive Officer of the Company, is the Qualified Person who prepared or supervised the preparation of the technical information presented in this news release.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Donald W. Wedman"
Donald W. Wedman, P.Eng.
CMC METALS LTD.