Hochschild Mining PLC Skeena Announces Maiden Resource for Snip (8271T)

TIDMHOC

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   Contained 
                                                             Grade Au    Metal Au 
                                                              (g/t)      (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     Tonnes (000)   Grade (g/t)   Ounces (000) 
                           Au (g/t) 
-------------------- 
 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

[phone]

Head of Investor Relations

Hudson Sandler

Charlie Jack [phone]

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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July 23, 2020 02:00 ET (06:00 GMT)