FIRESTEEL RESOURCES INC. (TSX-V: FTR) today announced the results of an economically positive Preliminary Economic Assessment for the Company’s 100% owned Laiva Gold Mine near Raahe in Finland. Laiva is a past producing gold mine that has been on care and maintenance since 2014 and is now 100% owned by Firesteel.
The mine is fully built, fully permitted and financed to production via a gold forward sale. Production is scheduled to start in the 4thquarter of 2018. The PEA was conducted by John T. Boyd Company of Denver, Colorado. The final report will be filed on SEDAR within 45 days of this announcement.
Other Highlights include:
The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that PEA results will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
As previously announced, when Firesteel acquired the Laiva Mine, the Company was granted, €131,716,248in tax loss provisions which may be used to offset future taxes should taxable income be earned in Finland prior to the expiration of the tax loss carryforwards. The tax loss provisions expire between 2020 and 2028 (see the Company’s audited financial statements for the year ended January 31, 2018, for detailed disclosure of the expiration schedule). The recognition of the tax loss carryforwards have a material impact on the economic assessment of the Laiva Gold Mine project and are contingent upon the Company achieving taxable net income per Finnish tax laws.
Michael Hepworth, President, and CEO of Firesteel commented; “The release of the details of this study is an important milestone. Although we had previously conducted an extensive internal study used for financing and had already made the decision to advance to production, for the benefit of the market, we needed confirmation from a more formal study. In addition, the three exploration properties offer significant blue-sky exploration potential. It is our intention to more fully explore these properties with an extensive drill program in early 2019. Our goal is to have additional pits close to the mill.”
Firesteel’s management has identified several opportunities outside of the scope of the mine plan studied in the PEA, which could further improve the mine plan and the economics of the project. Most important of these being the three additional 100% owned exploration properties close to the mine. Firesteel is currently conducting magnetic surveys on all of the company’s properties. All three properties are fully permitted for exploration.
Mineral Resources were prepared by JT Boyd (Firesteel Press Release August 21, 2017).
The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101 and a director of the Company.
For readers to fully understand the information in this news release, they should read the PEA technical report in its entirety which the Company expects to file in accordance with NI 43-101 within 45 days from the date of this news release on SEDAR (www.sedar.com). The report will also be available at that time on the Firesteel website, including all qualifications, assumptions and exclusions that relate to the PEA. The technical report is intended to be read as a whole, and sections should not be read or relied upon out of context.
Disclosure:Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the risks and uncertainties associated with a production decision. The Company has not completed a feasibility study on, nor has the Company completed a mineral reserve estimate at the Laiva Mineand as such the financial and technical viability is deemed to have higher risk than if this work had been completed. Based on historical engineering and geological reports, historical production data and current engineering work completed or in process by Firesteel, the Company intends to move forward with the development of this asset.
The Company further cautions that it is not basing any production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and therefore there is a much greater risk of failure associated with its production decision. In addition, readers are cautioned that inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.
Firesteel is an exploration-stage junior mining company engaged in the acquisition and exploration of prospective precious and base metal properties in Finland and Canada. Firesteel is currently working to evolve from an exploration company to become a junior producer. It the owner of a 100% interest in the Laiva Mine near Raahe in Finland and holds a 49% interest in the Star Property, a highly prospective property in British Colombia. The Star Property is currently operated under a joint venture agreement between Firesteel and Prosper Gold.
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