Vancouver, British Columbia – April 13, 2020 - THEMAC Resources Group Limited (TSX VENTURE:MAC) (“THEMAC” or the “Company”) has, further to its news release of February 28, 2020, completed and filed an updated technical report (“Report”) been filed on SEDAR at www.sedar.com concurrently with the issue of this press release. The Report, compiled by M3 Engineering & Technology Corporation in Tucson, Arizona, provides an update of project economics and permitting for the Copper Flat Mine Project in Sierra County, New Mexico, USA. The Report includes an update to the New Mexico Resource Excise Tax rate and small refinements to mining costs, which results in a slight decrease in the project economics when compared to the February 28 announcement and which are not considered material. Financial return estimates (after tax) from the completed report are summarized in the following table.
Copper Flat is a former producing mine located in Sierra County, New Mexico, approximately 150 miles south of Albuquerque, New Mexico, and 20 miles southwest of the town of Truth or Consequences, New Mexico. Theproject land package comprises 5,077 acres, with the majority of the mineral reserves located on patented mining claims that are wholly owned by THEMAC through its 100% ownership of New Mexico Copper Corporation (NMCC). Technical information in this news release has been reviewed by Richard Zimmerman, R.G. (M3 Engineering), Thomas Drielick, P.E. (M3 Engineering), John Marek, P.E. (Independent Mining Associates), Dave Kidd, P.E. (Golder Associates), and Jeffrey Smith, P.E. (THEMAC Resources) all of whom are Qualified Persons under Canadian NI 43-101.
ABOUT M3 ENGINEERING & TECHNOLOGY CORPORATION
The Feasibility Study Technical Report update was compiled by M3 Engineering & Technology Corporation (M3) of Tucson, Arizona. M3 provides full-service industrial design and EPCM services and is recognized as an industry leader in Feasibility Studies and associated NI 43-101 technical reports.
ABOUT INDEPENDENT MINING CONSULTANTS
Mineral resources, reserves, mine planning, and cost estimating were prepared by IMC of Tucson, Arizona. Since 1983 Independent Mining Consultants, Inc. (IMC) has been recognized worldwide for its expertise in Open Pit Mine Design and Mine Planning as well as Ore Reserve Estimation and Mineral Economics. IMC has worked for large international mining conglomerates, medium sized mines, multiple commodity producers, and exploration firms.
ABOUT GOLDER ASSOCIATES
Engineering, design, and cost estimating of the Copper Flat tailings storage facility were prepared by Golder Associates of Tucson, Arizona. Design of the Copper Flat Mine reclamation plan was prepared by Golder Associates of Albuquerque, New Mexico. Employee owned since being founded in 1960, Golder Associates Inc. provides engineering and environmental consulting services to mining, energy and natural resource industries. Golder has conducted similar studies and engineering evaluations in the southwestern US and internationally.
ABOUT THEMAC RESOURCES GROUP LIMITED
THEMAC is a copper development company with a strong management team and as of May 18, 2011, a 100% ownership interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA. We are continuing to advance the closed copper mine, Copper Flat, in Sierra County, New Mexico, toward production with innovation and a sustainable approach to mining development and production, local economic opportunities, and the best reclamation practices for our unique environment. The Company is listed on the TSX Venture Exchange (ticker: MAC) and has issued share capital of 79,400,122 common shares (fully diluted share capital 93,064,866).
For more information please visit www.themacresourcesgroup.com or review the Company’s filings on SEDAR (www.sedar.com).
FORWARD LOOKING STATEMENTS
Certain information contained or incorporated by reference in this press release, including any information as to THEMAC’s future financial or operating performance, the likelihood and timing of commercial production, construction of plant, and obtaining required permits, statements with respect to the estimation of mineral resources and reserves, expanding mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing and amount of estimated future production, capital costs, costs of production, metal or mineral recoveries, mine life and production rates, capital expenditures and success of mining operations, expected IRR and NPV constitute “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by THEMAC, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such assumptions include the specific assumptions set out in this press release and in the Report, that future capital and operating costs will be in line with THEMAC’S assumptions, that mineral resource and mineral reserve estimates prove accurate, permits required to commence production will be obtained on a timely basis, copper, molybdenum, gold and silver prices will remain consistent with THEMAC’s expectations, that there are no changes in THEMAC’s development plans as new information is received, that THEMAC will be able to access financing, equipment and sufficient labor to carry out its planned business. Known and unknown factors could cause actual results to differ materially from those projected in the forward- looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of copper, molybdenum, gold, and silver; volatility in the price of fuel and electricity; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada and the USA; business opportunities that may be pursued by THEMAC; operating or technical difficulties in connection with mining or development activities; employee relations; litigation; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits; uncertainty surrounding the availability of water rights required for mining operations which, if not secured, could result in changes to the proposed plan for development of Copper Flat; contests over title to properties, particularly title to undeveloped properties; failure of processing and mining equipment to perform as expected; labor disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results; the assumptions upon which the estimation of mineral resources and reserves prove inaccurate, which could lead to a restatement of reserves and resources;; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates may differ from what is indicated and the difference may be material; legal and regulatory proceedings and community actions; accidents, title matters; regulatory restrictions; permitting and licensing; volatility of the market price of Common Shares; insurance; competition; and hedging activities. In addition, there are risks and hazards associated with the business of exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave - ins, flooding and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks. Many of these uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, THEMAC. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. THEMAC disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws. “Operating cost per pound of copper”, “Life-of-mine sustaining capital”, “IRR” and similar terms are alternative performance measures. These performance measures are included because these statistics are key performance measures that management may use to monitor performance. Management may use these statistics in future to assess how THEMAC is performing to plan and to assess the overall effectiveness and efficiency of mining operations. These performance measures do not have a meaning within International Financial Reporting Standards (“IFRS”) and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
For further information contact:
THEMAC Resources Group Limited
Chief Executive Officer
Phone: +1 505.382.5770
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.