Karmin Announces Developments at the Aripuanã Zinc Project
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November 16, 2016 08:15 AM Eastern Standard Time
TORONTO--(BUSINESS WIRE)--Karmin Exploration Inc. (“Karmin”) (TSXV and the Lima Stock Exchange: KAR) is pleased to report significant progress at the Aripuanã Zinc Project (“Aripuanã”) located in north-western Brazil. Karmin has a 30% carried interest in Aripuanã until 12 months after the delivery of a feasibility study.
2016 Work Program
The very extensive 2016 work program at Aripuanã continues with the following activities;
Seven surface drill rigs have been operating for several months with the objective of completing approximately 22,000 metres of diamond drilling during 2016. The primary target has been the “LINK ZONE” that lies between the AREX and AMBREX zones. The latter two zones contain 19.1 million tonnes of measured and indicated resources and 14.7 million tonnes of inferred resources (Table 1). To date, over US$50 million has been spent by Karmin's partners on developing Aripuanã including the completion of approximately 165,000 metres of drilling in over 500 diamond drill holes of which over Cdn$15 million has been spent during the past 3 years.
As previously reported (Karmin press release dated November 17, 2015) Karmin has engaged RPA Inc. to update the Mineral Resources and prepare a Technical Report at Aripuanã in accordance with the requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Karmin anticipates that RPA Inc. will complete this work early in 2017 which will include the results of the drilling on the LINK ZONE.
Engineering studies conducted by Worley Parsons Ltd. and other consultants, retained by Karmin's partners, have been evaluating capital cost estimates and mine plans, assessing portal development for mine access, flow sheet optimization, tailings disposal, road conditions, bridge requirements, transmission line trade offs and concentrate shipment routes.
Social and environmental work has included acquisition of land required for mine site development, updates for an environmental impact study, indigenous peoples studies and archaeological evaluations.
Corporate Developments with Aripuanã’s Owners
Compañía Minera Milpo S.A.A. (“Milpo”) (Lima Stock Exchange: MILPOC1) and Votorantim Metais Zinc S.A. (“Votorantim”) jointly own 70% of Aripuanã and are responsible for 100% of expenditures until 12 months after the delivery of a feasibility study. Under the terms of the Contract of Association, the feasibility study must be in a form acceptable to lending organizations for the purpose of raising financing, preferably as project finance on a limited recourse basis.
On April 12, 2016 it was reported that Votorantim Metais–Cajamarquilla S.A. purchased 20.17% of Milpo through the facilities of the Lima Stock Exchange thereby increasing its controlling stake in Milpo to 80.24%.
On November 30, 2016 Milpo is to have a shareholders’ meeting to vote on a motion to delist its shares from the Lima Stock Exchange. If this motion is carried Karmin will be the only public company exposed to the future developments of Aripuanã.
The common shares of Karmin are listed on the TSX Venture Exchange and the Lima Stock Exchange and trade in both markets under the symbol “KAR”. The principal business of Karmin is to acquire, explore and develop resource properties.
Karmin owns 30% of Aripuanã, one of the ten largest undeveloped zinc projects in the world. Aripuanã covers an 820 square kilometre mineralized massive-sulphide district that includes five areas of mineralization (Ambrex, Arex, Babacu, Massaranduba and Mocoto) over a 25-kilometre strike length. Votorantim and Milpo own the remaining 70% of Aripuanã, but are responsible for 100% of the project costs until 12 months after the completion of a feasibility study.
The Summary of Mineral Resources at Aripuanã is outlined in Table 1. This summary is detailed in a Technical Report prepared by RPA Inc. which conforms to NI 43-101 Standards of Disclosure for Mineral Projects and is dated January 29, 2013 (see Karmin press release dated February 21, 2013).