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HOCHSCHILD MINING PLC — M&A Activity 2020
Jul 23, 2020
4858_tar_2020-07-23_09077f98-ebc9-474f-8164-9514296b520a.html
M&A Activity
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National Storage Mechanism | Additional information
RNS Number : 8271T
Hochschild Mining PLC
23 July 2020
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23 July 2020
Skeena Resources Announces Maiden Resource for Snip
Hochschild Mining PLC ("Hochschild" or "the Company") is pleased to report that its partner, Skeena Resources Limited ("Skeena"), has recently achieved a maiden resource at their 100%-owned Snip Gold Project ("Snip") in northwest British Columbia, Canada.
Hochschild notes the release of an announcement titled "Skeena Announces Maiden Resource for Snip Gold Project" from 21 July 2020. Selected text of the release is included below.[1]
As a reminder, in September 2018, Skeena granted Hochschild an option to earn a 60% undivided interest in Snip by spending twice the amount Skeena had spent since it originally optioned Snip from Barrick. Under the Heads of Agreement agreed between Skeena and Hochschild, Hochschild had three years from the closing (by 16 October 2021) to provide notice to Skeena that it wished to exercise its option. Once exercised, Hochschild shall have three years to:
· incur expenditures on Snip that are no less than twice the amount of such expenditures incurred by Skeena from March 23, 2016 up until the time of exercise of the Option by Hochschild. (As of June 30 2020, Skeena had incurred C$18.9 million of expenditures at Snip);
· incur no less than C$7.5 million in exploration or development expenditures on Snip in each 12-month period of the Option Period; and
· provide 60% of the financial assurance required by governmental authorities for the Snip mining properties
Snip Underground Resource Estimate
The underground constrained Indicated resources include 244,000 ounces of gold hosted within 539,000 tonnes at an average gold grade of 14.0 g/t Au. Resources within the Inferred category include 402,000 ounces of gold hosted within 942,000 tonnes at an average gold grade of 13.3 g/t Au (Table 1). In the determination of reasonable prospects for economic extraction, long hole stoping is contemplated. Sensitivities to the gold cut-off are presented in Table 2.
Table 1: Snip Indicated and Inferred underground resources reported undiluted at a 2.5 g/t Au cut-off grade within stope optimised mining shapes.
| Domain | Tonnes (000) | Contained Grade Au (g/t) | Contained Metal Au (000 oz) | |
| Indicated Mineral Resources | ||||
| Main - V | 165 | 12.8 | 68 | |
| Main - S | 337 | 15.0 | 163 | |
| Twin West | 37 | 10.4 | 12 | |
| Total Indicated | 539 | 14.0 | 244 | |
| Inferred Mineral Resources | ||||
| Main - V | 287 | 13.1 | 121 | |
| Main - S | 599 | 13.4 | 258 | |
| Twin West | 56 | 12.4 | 23 | |
| Total Inferred | 942 | 13.3 | 402 |
Table 2: Snip Indicated and Inferred Resource sensitivities to block cut-off grade
| Cut-Off Grade Au (g/t) | Tonnes (000) | Grade (g/t) | Ounces (000) | |
| Indicated Category | ||||
| >2 | 557 | 13.7 | 245 | |
| >2.5 (reported) | 539 | 14.0 | 244 | |
| >3 | 518 | 14.5 | 242 | |
| >3.5 | 495 | 15.0 | 239 | |
| Inferred Category | ||||
| >2 | 977 | 12.9 | 404 | |
| >2.5 (reported) | 942 | 13.3 | 402 | |
| >3 | 911 | 13.6 | 399 | |
| Total Inferred | >3.5 | 880 | 14.0 | 396 |
Next steps
A technical report will be filed on the Skeena's website within 45 days of the 21 July 2020 press release. Skeena intends to commence drilling at Snip shortly to follow-up on the first campaign from 2019 with the aim of expanding the resource.
Please also refer to the original Skeena press release for Snip Mineral Resource Estimate Notes and a description of the Snip Mineralisation.
https://www.skeenaresources.com/news/skeena-announces-maiden-resource-for-snip-gold-project
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Enquiries:
Hochschild Mining PLC
Charles Gordon +44 (0)20 3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack +44 (0)207 796 4133
Public Relations
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About Hochschild Mining PLC
Hochschild Mining PLC is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and currently operates three underground epithermal vein mines, two located in southern Peru and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.
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LEI: 549300JK10TVQ3CCJQ89
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[1] Please note that Hochschild has not yet reviewed in detail the results presented by Skeena
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