QMX Gold Enters Four-Year Custom Milling Agreement and Completes Mining of the FL Zone
Estimating 7,000 oz of gold production from Herbin in 2016
TORONTO, ONTARIO--(Marketwired - Jan 13, 2016) - QMX Gold Corporation ("QMX") (TSX VENTURE:QMX) is pleased to announce that it has entered into a four year custom milling agreement for the Aurbel Gold Mill, Val d'Or with Gold Bullion Development Corp. ("GBB") (TSX VENTURE:GBB). The agreement provides:
- custom milling of an initial 70,000 tonnes of stockpiled material from GBB's Grenada Mine near Rouyn-Noranda, Quebec;
- funding for the expansion of operating capacity of the Aurbel Mill from 650 tonnes per day (tpd) to 1,200 tpd; and
- commencing in late 2016 and extending over three years, custom milling of up to 1,400,000 tonnes of material from open pit mining operations at GBB's Granada Mine in Rouyn-Noranda.
The initial milling program in 2016 will treat approximately 70,000 tonnes of material from GBB's Granada mine near Rouyn-Noranda. The material was stockpiled as oversized blocks during prior periods of open pit production on the property. Following processing of the stockpile, GBB has committed to provide financing for the expansion of the Aurbel Gold Mill from its current processing rate of 650 tonnes per day to its full capacity at 1,200 tonnes per day. GBB will then provide up to 1.4 million tonnes of material for custom milling over the next three to four years, potentially commencing in the latter part of 2016. Capital expenditures by GBB will be offset against future treatment and processing costs and repaid over the length of the contract. The contract can be extended by the mutual consent of the parties after its four year term. The agreement is conditional upon GBB securing financing while processing of ore from the Grenada open pit mine is conditional on GBB receiving permits for open pit mining at the Grenada Mine and the permitting of tailings areas adjacent to the Aurbel Mill in order for them to receive GBB tailings.
David Rigg, President and CEO of QMX Gold Corp. commented: "This custom milling agreement supports operations at the Aurbel Mill over the next four years. It will almost double our processing capacity and support exploration and acquisitions. It is a great step for QMX and should allow us to grow the Company."
QMX's Aurbel Mill is located 15 km east of Val d'Or and approximately 100 kilometres from the Granada gold property. The Aurbel Mill uses conventional gravity, floatation and cyanide leach circuits to process gold-bearing material. The mill circuits will be modified to the specific metallurgical requirements of GBB to ensure optimum recoveries for gold.
The Aurbel Mill was temporarily shut down in September 2015 for maintenance and cleaning to recover any gold locked in the circuits. A total of approximately 2,000 ounces of gold have been recovered during cleanup. Maintenance work is to be conducted in February and milling of the initial 70,000 tonnes can commence thereafter.
Lac Herbin Mine Update
The Lac Herbin Mine was closed in March 2015. Milling of surface stockpiles from the mine was completed in September. However, exploration adjacent to the Lac Herbin Portal in mid-2015 however successfully outlined near-surface mineralization in the FL zone. As a result, underground activities recommenced in September 2015. The water table is being held at the 250 meter level and further exploration is being advanced on shallow areas in the mine. Development and subsequent mining of the new areas on the FL zone was completed on January 8th, 2016 and 5,700 tonnes of ore is currently being custom milled.
Additional underground exploration drilling was also successful in the delineation of additional shallow mineralization in the S1 Zone. QMX will proceed to develop and mine this zone during 2016. Mining is expected to be completed in late July with milling of this material at Aurbel provisionally schedule starting June 10th, 2016 and continuing until the end of August. The initial material from GBB will be milled prior to S1 Zone production. Production from the Lac Herbin mine is anticipated to be over 7,000 ounces in 2016.
Qualified Person
Scientific and technical information included in this release have been supervised, compiled, reviewed and approved by David Rigg, P.Geo., Chairman, President and CEO of the Company and a Qualified Person as defined under NI 43-101.
About QMX Gold Corporation
QMX Gold Corp. is a Canadian mining company traded on the TSX-V under the symbol "QMX". The Company is focusing on mine development and exploration in Quebec and is actively looking for mining projects for acquisition or option in the Val d'Or area. In addition, QMX operates its Aurbel gold mill as a toll milling facility servicing clients in the Abitibi Region.
Cautionary Note Regarding Forward-Looking Information and Mineral Resources:
This press release contains or may be deemed to contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding performance of the toll milling contract; permitting; available financing; operational schedules and profitability at the mill; impact of the agreement on QMX production forecasts for Lac Herbin and other statements. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, its properties and/or its projects to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the disclosure documents of the Company filed under the Company's profile on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
QMX Gold Corp.
David Rigg
Chairman, President and CEO
(416) 861-5889
QMX Gold Corp.
Louis Baribeau
Public Relations
(514) 667-2304
QMX Gold Corp.
Rob Hopkins
Investor Relations
(416) 861-5899
QMX Gold Corp.
Toll free: +1 877-717-3027
info@qmxgold.ca
www.qmxgold.ca
