Marlin Gold Mining (MLN-V) May 18, '16 is extremely pleased to announce that it has commenced mining at the high grade HS Zone at its wholly owned La Trinidad mine in Sinaloa, Mexico ("La Trinidad"). The past one and a half years of commercial mining has been in preparation for this milestone, and over the course of the next weeks and months, La Trinidad will transition from being a high cost operation to become one of the lowest cost gold mines in the world.
Additionally, Marlin has completed an exploration program at La Trinidad. New drill intersections described below focused on the south side of the Taunus pit. Last year, Management deferred mining activities towards the south so that the Company could reach the high grade HS zone on an accelerated basis; as a result of this decision, the Company incurred $22.6 million in aggregate write-downs during 2015 as approximately 40,000 ounces were removed from the La Trinidad mine plan. Given the successful drill campaign on the south side of the deposit, the Company has recommenced mining on the south side of the Taunus pit. An updated life of mine plan is being engineered, and Management believes that there is a high likelihood that some, if not all, of the previously sustained write downs will be written back up over the course of 2016.
Drill Results Include:
| | | | | From | | To | | Interval | | Gold | | Hole # | | | | (m) | | (m) | | (m) | | (g/t) | | 15TRD08 | | | | 90.0 | | 100.4 | | 10.4 | | 1.79 | | 15TRD09 | | | | 82.3 | | 90.6 | | 8.3 | | 1.21 | | 16TRD10D | | | | 34.3 | | 44.7 | | 10.3 | | 0.49 | | 16TRD11B | | | | 33.5 | | 40.0 | | 6.5 | | 0.46 | | 16TRD12 | | | | 0 | | 10.0 | | 10.0 | | 0.84 | | | | and | | 94.5 | | 101.7 | | 7.2 | | 0.36 | | 16TRD13 | | | | 22.0 | | 28.0 | | 6.0 | | 0.64 | | 16TRD14 | | | | 8.0 | | 26.0 | | 18.0 | | 1.26 | | 16TRD15 | | | | 58.0 | | 78.8 | | 20.8 | | 3.55 | | | | including | | 69.7 | | 78.9 | | 9.2 | | 6.29 | | 16TRD17 | | | | 117.6 | | 124.5 | | 6.9 | | 3.98 | | 16TRD18 | | | | 96.6 | | 104.0 | | 7.4 | | 0.45 | | 16TRD19 | | | | 28.0 | | 34.0 | | 6.0 | | 0.68 | | 16TRD20 | | | | 0 | | 26.9 | | 26.9 | | 1.20 | | 16TRD22 | | | | 47.9 | | 59.0 | | 11.0 | | 6.91 | | | | including | | 49.8 | | 57.3 | | 7.5 | | 9.73 |
* Significant intersection defined as minimum gold assay of 0.3 gpt over minimum 6m interval with no more than 2m of internal dilution below 0.3 gpt.
Previously reported drill results from this program are:
Hole # |
Zone | From
(m) | To
(m) | Interval
(m) | Gold
(g/t) | Comments | | 15TRD02 | Eldorado | 30 | 36 | 6 | 1.17 | | | 15TRD03 | Eldorado | 38 | 44 | 6 | 0.41 | | | 15TRD03 | HS Zone | 70 | 78 | 8 | 0.85 | | | | and | 84 | 112.4 | 28.4 | 3.45 | Hole ended in 6.2 g/t gold | | 15TRD04 | HS Zone | 44 | 70 | 26 | 0.89 | | | | and | 74 | 101.7 | 27.7 | 3.08 | Hole ended in 1.5 g/t gold | | 15TRD05 | HS Zone | 61 | 84 | 23 | 8.59 | | | | including | 62 | 68 | 6 | 18.1 | |
Dr. Matthew D. Gray. C.P.G., of Resource Geosciences Incorporated, a Qualified Person under the definitions of CSA NI 43-101, implemented and supervised industry standard QA/QC protocols for the Taunas drill sampling program including insertion of duplicate and reference standard samples. Dr. Gray has verified the reliability of the drill sampling results reported in this press release.
Akiba Leisman, Chairman and CEO of Marlin, states that "it took a lot of hard work and money to get the Company to where it is now. I would like to congratulate the operating team led by Marlin's COO, Jesse Munoz for this accomplishment. As gold from the high grade HS Zone is recovered through our heap leach process and adsorption, desorption and recovery ("ADR") plant, the Company will begin to significantly increase its free cash flow. With the closing of the $13 million rights offering earlier this week, Marlin is in the strongest position in its history, and we aim to use this position of strength to grow our Company into a successful mid-tier gold producer".
About Marlin Gold
Marlin is a publicly-traded gold and silver mining company with properties located in Sinaloa, Mexico and Arizona, USA. Marlin's priority is to advance its properties toward commercial production and enhance shareholder value through the growth of its wholly-owned subsidiary, Sailfish Royalty Corp. The La Trinidad property in Sinaloa, Mexico, declared commercial production on November 1, 2014. A NI 43-101 mineral resource estimate and preliminary economic assessment for the La Trinidad mine and Commonwealth project can be found at www.sedar.com or at www.marlingold.com.
Marlin Gold Mining Ltd.
Akiba Leisman
Chairman and CEO
604-642-2411
203-862-7059
aleisman@marlingold.com
www.marlingold.com |
