Pinecrest Resources Advances Enchi Gold Project, Ghana
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2015) - Pinecrest Resources Ltd. ("Pinecrest" or the "Company") (TSX VENTURE:PCR) is pleased to provide an update on activities on the Company's 100% owned Enchi Gold Project ("Enchi" or "the Project") in Ghana, West Africa.
Preliminary Economic Assessment ("PEA") Update
The Company recently announced the results of the owner operated PEA on the Enchi Gold Project. Highlights of the PEA at $1300/oz gold include: a Pre-Tax Net Present Value (NPV) at a 5% discount rate of $US 102 million and an Internal Rate of Return (IRR) of 33% (see March 2, 2015 News Release for further details and cautionary language http://www.pinecrestresources.com/). Pinecrest plans to evaluate a contract mining scenario which could enhance already robust Project economics while decreasing upfront capital requirements. Pinecrest has engaged WSP Canada to evaluate a contract mining scenario at the Enchi Project and we anticipate that this study will be completed by Q3/2015.
Ryan King, President stated: "On the back of announcing a positive PEA in March, 2015 the Company is reviewing opportunities to potentially reduce capital costs and maximize project economics. In addition to optimizing the PEA, field work is planned to begin in Q3/2015 on the 568 km2 Project to define additional high priority targets for resource expansion drilling."
Metallurgical Test Work
Pinecrest is currently evaluating several options for advancing metallurgical test work on the Project. The work will be focussed on evaluating heap leach gold recoveries on oxide material. The PEA utilized 75% gold recovery for oxide and transitional material and 73% gold recoveries for sulphide mineralization. These recoveries are based on bottle roll testing and assumed similar process designs to other heap leach facilities in the region. Additional metallurgical testing will better define and optimize the kinetics associated with heap leach gold recovery on the Enchi project.
Resource Expansion Exploration Program
Field work will evaluate several targets with a goal of defining additional targets for resource expansion drilling. Follow-up on high priority drill targets outside of the current Inferred Resources will include previously drilled gold mineralized zones at: Eradi, Boin NW, Sewum South, Achimfo and the Sewum-Tokosea. Additional work will be completed to advance high priority airborne electromagnetic, geophysical, and structural targets on the 568 km2 Project. Field work will consist of geological mapping, trenching, auger drilling, and geochemical sampling.
Environmental Baseline Study and Environmental Impact Study
The Company is anticipating starting the Environmental Baseline Study in 2015. The data and results will be used in the preparation of an Environmental Impact Study for a potential open pit, heap leach operation.
Additional information as well as a copy of the Technical Report detailing the recently completed Preliminary Economic Assessment are available at www.sedar.com and on the Company's web site www.pinecrestresources.com.
Mr. Gregory Smith, P. Geo. Vice President, Exploration of Pinecrest is the qualified Person as defined by NI 43-101 and has prepared and approved the technical data and information in this news release.
About Pinecrest
Pinecrest is a British Columbia corporation that is based in Vancouver, B.C. The Company engages principally in the acquisition, advancement and development of precious mineral properties and the Company intends to advance and develop the Company's 100% owned Enchi gold project located in South West Ghana. Major shareholders of the Company include; Red Back Mining Ghana Ltd. (wholly owned subsidiary of Kinross Gold Corp.), Sandstorm Gold Ltd. and Management.
On Behalf of the Board of Directors
Ryan King, President, Director
Completion of the Transaction is subject to a number of conditions, including TSX Venture Exchange acceptance and if applicable shareholder approval. The Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Pinecrest should be considered highly speculative.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
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 or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements
This news release contains certain forward-looking statements Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with respect to the price of gold, potential mineralization, reserve and resource determination, exploration results, and future plans and objectives of the Company involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Atlas to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Contact
Pinecrest Resources Ltd.
Ryan King
President, Director
(604) 628-1012
rking@pinecrestresources.com
