Development & Operating Plans Submitted
TSX Venture Exchange- Trading Symbol: CMB October 29, 2007
Vancouver, B.C.: CMC Metals Ltd. (the “Company”) is pleased to announce that it has submitted the Development and Operating Plan to the Yukon Government, Yukon Environmental and Socio-economic Assessment Board (YESAB) and the Yukon Water Board for review and approval of the Silver Hart Mine. The Development and Operating Plans are for a 20,000 tonne per year mine and an 80 tonne per day mill facility to concentrate the run-of-mine ore. The process requires YESAB to prescreen the application for environmental completeness prior to the Yukon Government review. The YESAB process is anticipated to take 90 days following which the Yukon Government and Yukon Water Board will review the application for a Quartz Mining License for production and a Type B Water Use License, which will allow the Company to start the mine and mill construction. It is anticipated that mill construction will be prefabricated and shipped to the site where it will be assembled. According to CEO and President, Don Wedman, P.Eng., “A tremendous amount of effort has gone into preparing this application. The Silver Hart property is a valuable asset that is ready for development and will provide an opportunity for the Company to demonstrate the financial, environmental and social sustainability of this property.” Scheduled commissioning of the facilities is for third quarter 2008.
The Development and Operating Plan call for a 20,000 tonne per year mine and an 80 tonne per day mill. Mining of the TM and S zone will be on a seasonal (June to October) basis and milling will be on a year round basis. There has been substantial exploration on the property since the mid-80’s. Additional drilling by the Company occurred in 2005, 2006, and 2007 to confirm past drill results and to provide the confidence in the substantial amount of historical data. A historic resource estimate (F. Smith, 1988) was determined at the end of 1987 for the TM zone. An estimate for proven and probable reserves of 72,345 tonnes (79,713 tons) with an average grade of 2,023 grams/tonne (59.0 oz/ton) silver, totaling 146,340 kg (4,705,463 ounces) of silver was concluded from the work conducted. Not included in the total was an inferred resource of 33,225 tonnes (36,609 tons) with an average grade of 1,755 grams/tonne (51.2 oz/ton) silver, totaling 58,310 kg (1,874,937 ounces) of silver. These historic resource estimates were based on 50 diamond drill holes (3658m, 12,000 feet) and 673m (2208 feet) of underground workings. The Company performed infill drilling and hole twinning as a due diligence to confirm the historical data. An updated detailed mining approach and review of the geological data provided input for the economic model to assess mine dilution, cut-off grades, run-of-mine head grades, and minimum mining widths. For further understanding of the property, the Company had SGS Lakefield Laboratories Ltd. to conduct a detailed metallurgical study to define the mineral recoveries, mill flow diagram, and rate of consumption mill reagents need to concentrate the ore. Based on the SGS Lakefield Laboratories Ltd. metallurgical test results, metal recoveries from the raw ore are 96.9% silver, 97.0% lead, and 80.0% zinc by flotation methods. It should be noted that due to the historical resource estimates not having an updated NI43-101 resource estimate, the Company is not allowed to disclose, estimated head grades, concentrate grades, or economic data.
Cautionary Notes: The Company has not completed an independent feasibility study and there is no certainty that the proposed operations will be economically viable. Statements in the release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.
A continuing focus for the Company is to explore other known surface mineralized exposures to expand additional tonnage that can be processed at the mill. Initial assay results from the 2007 exploration will be available within the next few weeks. The first set of assays are from the TM zone area confirming historical holes and for statistical comparisons of core recovery to historical thickness and grades.
The Company is also pleased to announce the appointment of Dale Matheson Carr-Hilton Labonte LLP, Chartered Accountants, as our new auditors.
Also, the Company wishes to announce the resignation of Donald Gee from the Board. The Company would like to thank Mr. Gee for his guidance and input over the past two years.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents. The technical information herein has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Donald Wedman, P.Eng., President and Chief Executive Officer for CMC Metals Ltd., a qualified person under National Instrument 43-101.
On behalf of the Board:
"Don Wedman”
Don Wedman, P.Eng.
CEO
CMC METALS LTD.
