MY Announces Updated Resource for the Taylor Silver Project, Ely, Nevada
Montego Resources Inc.
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Montego Resources Announces Updated Resource for the Taylor Silver Project, Ely, Nevada
Vancouver, B.C. – January 29, 2019 – Montego Resources Inc. (CSE: MY) (FRA: 4MO1) (the “Company” or “Montego”) is pleased to announce an updated mineral resource estimate for the Taylor Silver Project in eastern Nevada, USA. This resource, summarized in Table 1, remains open for expansion and has demonstrated potential for higher grade silver mineralization in several key areas, including 1) underlying host rocks, 2) along the Argus fault zone where previous higher-grade underground mining was concentrated, and 3) peripheral to the current resource subject to silver price.
TABLE 1: Taylor Project, White Pine County, Nevada - Mineral Resource Estimate as of June 6, 2018
| 2018 Taylor Silver Resource (1.6 opt Silver Cut-off Grade) | |||||||
|---|---|---|---|---|---|---|---|
| Material | (Ktons) | Silver (opt) | Contained Silver (Koz) | ||||
| Measured | 1,456 | 2.89 | 4,213 | ||||
| Indicated | 2,333 | 2.89 | 6,742 | ||||
| Measured and Indicated | 3,789 | 2.89 | 10,995 | ||||
| Inferred | 180 | 2.91 | 603 |
a Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources estimated will be converted into a Mineral Reserves estimate.
b Optimization was based on assumed silver prices of US$17/oz. Recovery was set to 90% for Silver; an mining cost of US$2.50/t and processing cost of US$21.50/t; G&A costs of US$2.50/t; and pit slopes of 45 degrees.
c Resources are reported using a 1.6 opt contained Ag CoG.
d Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.
Source: SRK Consulting (U.S.), Inc., 2018.
Project Background. The Taylor Silver Project is an advanced stage exploration target located 24 km south of Ely, Nevada with access from a maintained mine road. Mineralization is interpreted to occur as a low sulfidation, epithermal replacement silver deposit in Devonian-age silty carbonate rocks.
The land package at Taylor is comprised of 131 unpatented lode claims and 4 patented claims all covering approximately 2,166 acres. Historic work includes underground mining in the 1890’s and open pit mining of silver rich jasperoids from 1981-84.
Montego Agreement. Pursuant to the terms of the agreement reached with Silver Predator Corp. (SPD) in 20171, Montego Resources can acquire the Taylor Property in consideration for the completion of a series of cash payments totalling US$1,200,000, issuing 2,500,000 common shares, and incurring expenditures of at least US$700,000 on the Property. Upon completion of the payments, share issuances and expenditures, the Company will hold a one-hundred percent interest in the Property, subject to a two-percent net smelter returns royalty and a one-percent net profit royalty.
SRK 2018 Resource. There are 481 drill holes, with 93,442 ft of total drilling included in the 2018 Taylor mineral resource estimate. The current Project drill hole database has 607 drill holes in the resource model area with valid location data. SRK excluded 126 drill holes from the resource estimation based on non-standard interval lengths greater than 20 ft, selective sampling, or lack of source documentation. These are the same drill holes that were excluded from the historic 2013 mineral resource estimate, after extensive data verification by SPD geologists.
The 2018 Taylor resource estimate was prepared by SRK Consulting (U.S.), Inc. under the direction of Brooke Miller Clarkson, CPG, who is independent of Montego and a Qualified Person as defined by National Instrument 43-101.
The updated Resource used a silver price of US$17.00, which was based upon a 36-month trailing monthly average (June 2018). Table 2 highlights the Taylor resource sensitivity with respect to silver price.
| TABLE 2: 2018 Mineral Resource Sensitivity, Measured | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| and Indicated Resources | |||||||||
| Measured and Indicated Resources | |||||||||
| Silver | Cut-off | Ktons | Silver | Contained Silver | |||||
| ($US/oz) | Grade (opt) | (opt) | (koz) | ||||||
| $14.00 | 1.9 | 2,684 | 3.26 | 8,754 | |||||
| $15.00 | 1.8 | 3,033 | 3.14 | 9,528 | |||||
| $16.00 | 1.7 | 3,401 | 3.02 | 10,256 | |||||
| $17.00 | 1.6 | 3,789 | 2.89 | 10,995 | |||||
| $18.00 | 1.5 | 4,190 | 2.78 | 11,633 | |||||
| $19.00 | 1.4 | 4,630 | 2.66 | 12,336 | |||||
| $20.00 | 1.3 | 5,084 | 2.56 | 13,013 | |||||
| $21.00 | 1.3 | 5,203 | 2.54 | 13,222 | |||||
| $22.00 | 1.2 | 5,693 | 2.44 | 13,877 | |||||
| $23.00 | 1.2 | 5,801 | 2.42 | 14,044 | |||||
| $24.00 | 1.1 | 6,403 | 2.32 | 14,839 | |||||
| $25.00 | 1.1 | 6,591 | 2.30 | 15,170 |
Source: SRK Consulting (U.S.), Inc., 2018.
William Cronk, Director commented “Montego has a high level of confidence in the work that SRK performed and we value their expertise and experience in Nevada. We understand that the resource at Taylor is sensitive to the current silver price, however, moving forward we feel we
1 https://s3-us-west-2.amazonaws.com/logic-shops/6d4e6d2b-4abf-4630-bc7b-78f8785e643a.pdf can add significantly to the resource by further drilling to extend the mineralization at depth and by re-drilling holes excluded from the mineral resource assessment that contain significant highgrade silver intercepts.”
Gold Exploration Potential. Although historic mining and exploration focussed on silver mineralization, some initial efforts have been made to identify and characterize significant gold zones within and around the current silver resource, and in outlying target areas. The Montego technical team has recently increased their focus on the added potential that these gold dominant portions of the geologic system could add to the size and economic potential of Taylor.
The scientific and technical data contained in this news release was prepared and reviewed by William Cronk, P.Geo., a non-independent Qualified Person to the Company. Mr. Cronk is responsible for ensuring that the geologic information provided in this news release is accurate and acts as a Qualified Person pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
ON BEHALF OF THE BOARD OF MONTEGO RESOURCES INC.
“William Cronk”
Director
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
This press release includes “forward-looking statements” including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.