UPDATE ON THE LAKE VICTORIA GOLD PLANNED ACQUISITION AND RESCHEDULED GENERAL MEETING
MetalNRG plc (LON: MNRG), the natural resource investing and exploration company, is pleased to provide further details relating to the planned acquisition of Lake Victoria Gold Ltd (“LVG”) (announced 20th October 2020) and the rescheduled date for the General Meeting (adjournment announced 26th November 2020).
LVG are the operators of the Imwelo Project in Tanzania which has a JORC (2012)1 compliant Total Resource of 4.73Mt @ 1.92g/t gold2 based on Resource drilling completed in 2016 and a Mineral Resource Estimate in 2017. In addition, an open-pit mining Pre-Feasibility study and underground mining Scoping Study was completed by Measured Group Pty Ltd (“MG”) for the Imwelo Project in June 2017 (the “Pre-Feasibility and Scoping Study Report” or “2017 PFS”)3.
The 2017 PFS considered a conventional drill blast, load and haul open-pit mining operation based on mining open-pit Reserves of 1.362Mt at 2.22g/t Au for a total 87.66koz gold recovered over 4 years, based on a gold price of US$1,250/oz. The scoping study considered a transition from open-pit mining to underground mining.
On the successful completion of the LVG acquisition, MNRG intends to commission MG to revise, optimise, and update the 2017 PFS and historical Reserves to take into account the current significantly higher gold price and investment optimisation. It is envisaged that the updated study will facilitate the Project’s fast track to production, with the resultant cashflows supporting further Resource development and underground mining studies.
MetalNRG previously announced the General Meeting (“GM”) was to be held on Friday 27th November 2020. This electronic meeting was adjourned on 26th November 2020 and has now been reconvened to be held by video conference at 11.00 am on Wednesday the 9th of December 2020. Details for shareholders wishing to attend this electronic meeting are as follows:
To join the General Meeting, shareholders should type or paste the following web address into their web browser:
Shareholders will be asked to enter a password to gain access to the General Meeting. This code can be found on the bottom section of the Proxy Form which shareholders will have received. Proxy votes previously received for the GM will be valid for the reconvened GM unless revoked.
Rolf Gerritsen, CEO of MetalNRG commented
“The Company views the planned update of the 2017 Pre-Feasibility and Scoping Study Report as an opportunity to demonstrate additional value from the development of the Imwelo Project in light of the significant increases in the gold price since that time. Through commissioning an independent study we aim to optimise the economics of the Project with a view to setting out a fast-track plan to production and cashflow generation.”
Competent Person Statement
Technical information in this announcement has been reviewed by Christian Schaffalitzky, the Company’s Non-Executive Director. Christian has over 40 years’ experience in the industry, having worked as a geological consultant and minerals exploration specialist for CSA Global which he founded, as well as listed mining companies and is currently Chairman of Eurasia Mining plc. He holds a BA Moderatorship in Geology from Trinity College Dublin (equivalent to BSc. Hons), is a European Geologist, a Fellow of the Institute of Materials, Minerals & Mining and a Chartered Engineer.
The person who arranged for the release of this information is Rolf Gerritsen, the Company’s Chief Executive Officer.
1. Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 edition.
2. Source: Measured Group Pty Ltd, Geology and Resource Estimate Report, Imwelo Project, Tanzania, Lake Victoria Gold Ltd, dated August 2020. Total tonnages rounded. Measured Resources: 414,000t @ 3.15g/t Au; Indicated Resources:1,530,300t @ 1.95g/t Au; and Indicated Resources: 2,781,500t @ 1.56g/t Au.
3. Source: Measured Group Pty Ltd, Lake Victoria Gold Ltd Imwelo Project, Pre-Feasibility and Scoping Study Report, report number MG159_Report_01, dated June 2017.
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