|June 18, 2019|
Rathdowney Announces AGM Results and Corporate Update
|June 18, 2019, Vancouver, BC - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSX-V: RTH) is pleased to announce the results of its Annual General Meeting ("AGM"), held in Vancouver, BC on June 14, 2019, and to provide an update on its corporate activities and plans. |
At the AGM, shareholders voted in favour of all matters of business. These matters included appointing DeVisser Gray LLP as auditors; ratifying and approving extension of the continuation of the Company's Share Option Plan; setting the number of directors at eight; and re-electing Lena Brommeland, Rene Carrier, David Copeland, Barry Coughlan, George Ireland, Robert Konski, Michael Nolan and Dick Whittington to the Company's Board of Directors.
Following the meeting, management and directors affirmed management's new direction and strategy. The Company is now embarking on a focused, two-year plan to secure a Mining License for its 100%-owned Olza project in Poland. To meet that objective, management and the project team will be working toward the following milestones:
Olza is zinc-lead-silver project located in the Upper Silesian Mining District of southwest Poland, a region of world-class Mississippi Valley type zinc-lead-silver deposits. Deposits of zinc and lead were identified in the immediate area of Project Olza though core drilling by Polish State companies, including the Polish State Geological Institute ("PSGI"), in the 1950s to 1980s. PSGI also completed several historical estimates, indicating the potential for significant zinc-lead resources. An example is PSGI's 1990 estimate of 77 million tonnes at a grade of 6.15% combined zinc and lead. A qualified person has not done sufficient work to classify this historical estimate as current mineral resources and the Company is not treating it as current.
Rathdowney acquired Project Olza in 2010, and initiated technical studies to advance the project. The Company's technical team assessed the historical data for the project, planned and conducted confirmatory core drilling over a portion - about 30% - of the area of the historical core drilling, and completed geological and resource studies as well as metallurgical testing and other engineering work for this area. Current inferred resources (in the 30% area described above) are 24 million tonnes at a grade of 7.02% (zinc plus lead)i. In 2015, the Company announced the results of a Preliminary Economic Assessment ("PEA") forecasting strong potential financial returns, including an after-tax Internal Rate of Return ("IRR") of 30%, a US$170 million Net Present Value ("NPV") and a 2.4-year payback for a 6,000 tonnes per day underground mine with on-site processing facility at Project Olzaii. Moreover, the PEA forecasts US$125 million of free cash flow annually, or US$375 million on a cumulative basis, over the first three years of operation.
Rathdowney believes that there is excellent potential to increase the mineral resources, supporting a long life mine at Project Olza. Only 30% of the area of historical core drilling at Project Olza has been drill-tested so far by Rathdowney's confirmatory core drilling program. A recent Exploration Target Range study further assessed the potential in the area of the historical drilling but outside of the area of Rathdowney's current mineral resource. Using conditional simulation, the study outlined an Exploration Target Range (as defined under 43-101) of 54 - 92 million tonnes at grades of 3.9-5.2% zinc and 1.0-1.3% leadiii. This Exploration Target Range is conceptual in nature and is not a mineral resource estimate. While there is no guarantee if further drilling will lead to a resource estimate in this range, this Exploration Target Range represents excellent potential to be followed-up after Project Olza has a mining license.
Since the release of the positive results from the PEA, the Company has completed environmental baseline surveys, and conducted land use planning, geotechnical and further engineering studies to prepare for the environmental assessment and mine permitting processes in Poland. Specialists from Rathdowney's project team in Poland have continued to meet regularly with local communities in the area of Project Olza to discuss and obtain input on it is programs and plans, as has been done during each stage of its project work.
"Rathdowney's comprehensive work programs have put in place a strong foundation to enable the Olza project to move forward through the permitting and development stage," said President and CEO Dick Whittington. "We are now shifting to a focused plan to be deployed over the next two years, designed to secure a Mining License - the key step toward creation of an international standard, first world mining operation at Project Olza."
The Preliminary Economic Assessment is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized.
The technical disclosure in this release has been reviewed and approved by Qualified Person ("QP") David Copeland, PEng, who is Chairman and a director of the Company.
About Rathdowney and Project Olza
Rathdowney is focused on advancing Project Olza through permitting and toward production. Located in a region of with a long mining history and well-developed infrastructure, Project Olza is along strike from ZGH Boleslaw's Pomorzany zinc-lead mine, which has produced some 90 Mt (www.geoportal.gov.pl) over some 40 years, and 25 km north of the ZGH Boleslaw zinc smelter. A spur from the main national railway line runs through the Olza property and provides access to local facilities and to other smelters via Baltic ports. The project site is a one-hour drive from Krakow, a major city with full services, including an international airport. Access roads to and from the property are already in place. Power is available from the existing electrical grid, and skilled mine workers live in the area.
Rathdowney acquired three land concessions - Zawiercie, Rokitno and Chechlo - at Project Olza in 2010 and 2011. Although some drill-testing was done on all three concessions, the Company's programs have mainly concentrated on the excellent potential on the Zawiercie and Rokitno concessions. With a refocus of efforts toward obtaining a mining license for this core area, Rathdowney also reviewed its land holdings, and has relinquished its interest in the Chechlo concession.
For further details on Rathdowney and Project Olza, please visit our website at www.rathdowneyresources.com or contact investor services at 604-684-6365 or toll free (NA) at 1-800-667-2114.
On behalf of the Board of Directors
J.R.H. (Dick) Whittington
President & CEO
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.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Assumptions used by the Company to develop forward-looking statements include the following: Project Olza will obtain all required environmental and other permits and all land use and other licenses, studies and development of Project Olza will continue to be positive, and no geological or technical problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, potential environmental issues and liabilities associated with exploration, development and mining activities, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.
i At 2% Zn cut-off, as audited and verified and restated at February 2015 by independent QP - L. Roberts, MAusIMM (CP) of SRK Consulting (UK) Ltd. Individual metal grades are 5.53% Zn and 1.49% Pb. Mineral Resources that are not mineral reserves do not have demonstrated economic viability.
ii For further details, see Rathdowney news release dated April 20, 2015 or the PEA technical report posted on the Company's website and on its profile at www.sedar.com.
iii Olza Project Exploration Target Range (ETR) Study, unpublished internal report, by R. Mohan Srivastava and David Gaunt (2019). Mr. Gaunt is a QP that is not independent of the Company and Mr. Srivastava is an independent QP. The exploration target area of interest is inside the Zawiercie and Rokitno concessions and substantially overlaps the area of historical estimates but excludes the footprint of the current mineral resource and a buffer zone surrounding it. The exploration target ranges (ETR) of tonnages and grades were derived by completing a series of 100 equally plausible conditional simulations. A histogram of the tonnage and grade values from these simulations was completed, and the 10th and 90th percentile selected as the ETR bounds.
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