Montero Announces NI 43-101 Mineral Resource Estimate on the Uis Lithium-Tin Tailings Project, Namibia

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NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES

TORONTO, Jan. 14, 2019 (GLOBE NEWSWIRE) — Montero Mining and Exploration Ltd (TSX.V: MON) (“Montero”) has completed a maiden lithium and tin Mineral Resource estimate for the Uis Tailings Project and will file the NI 43-101 Mineral Resource estimate on SEDAR and add this estimate to the Company’s website within 45 days. The Uis Lithium Tin Tailings Project is located in Namibia and consists of large coarse sands and fine slimes tailings deposits on surface. The tailings material represents the waste processed material derived from the Uis pegmatite tin mine and process plant prior to its closure in 1990.

The NI 43-101 Mineral Resource estimate is based on the preliminary drilling program of 63 air core drill holes on the coarse and fine tailings material located on the Uis mine site.

The quantity and grade of coarse and fine material for six tailings deposits (Zones A to E is shown in Figure 1) were estimated by ordinary kriging. Two commodities were considered in the estimation of the Mineral Resources, lithium (Li2O) and tin (SnO2).  Zone A represents the largest tailings deposit and contains coarse tailings material, whilst Zones B to E and Zone A fines represents the fine tailings material.

A total Inferred Mineral Resource of 14.4 million tonnes at 0.37% LiO2and 17.1 million tonnes at 0.05% SnO2were estimated for the Uis Lithium Tin Tailings Project. This resource consists of 14.4 million tonnes at 0.37% Li2O and 0.05% SnO2 in the coarse tailing material (Zone A or A1 to A3) and 2.7 million tonnes at 0.06% SnO2 in the fine tailing material (Zone B to E and Zone A4 for Zone A fines). Insufficient test work has been completed on lithium extraction from the fine tailings material to include this material as a Mineral Resource at this time. Commodity price, product, mining and processing costs and recoveries, and mining parameters and assumptions informed the determination of the cut-off grades.

Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, “Montero’s initial Resource estimate is reported as 14.4 million tonnes at 0.37% lithium as Li2O and 17.1 million tonnes at 0.05% tin as SnO2. Further drilling, in-fill drilling and metallurgical test-work will be required to upgrade the Inferred resource announced today to an Indicated resource. Montero will also be evaluating early production scenarios in tandem with upgrading the resource in order to meet expected lithium and tin demand.”

The independent Mineral Resource estimate was prepared by independent qualified person (QP) Dr. Heather King, Pr. Sci. Nat. of Deloitte Technical Mining Advisory (Deloitte) assisted by other Independent QP’s; Mr. Nico Scholtz, Pr. Sci. Nat. (geology) and Mr. Peter Hand, FSAIMM (metallurgy). The Inferred Mineral Resource estimate at Uis Lithium Tin Tailings Project is encouraging as it has been established to have reasonable prospects of eventual economic extraction.

The report details the following Inferred Mineral Resources:

Table 1. Inferred Mineral Resource Coarse material (Zone A) Li2O and SnO2 at a cut-off 0.35 % Li2O

Zone Density (t/m3) Million Tonnes Average grade  Metal Content 
             
  Li2O (%) SnO2 (%) Li2O (t) SnO2 (t)
Zone A Coarse 1.6 14.4 0.37 0.05 53 280 7 200
TOTAL   14.4 0.37 0.05 53 280 7 200

Table 2. Inferred Mineral Resource Fines material (Zones B to E and Zone A Fines) at a cut-off 47ppm SnO2

Zone Density (t/m3) Million Tonnes Average grade  Metal Content 
             
  Li2O (%) SnO2 (%) Li2O (t) * SnO2 (t)
Zone A4 1.6 0.44 - 0.09 - 396
Zone B 1.6 0.56 - 0.06 - 336
Zone C 1.6 0.98 - 0.06 - 588
Zone D 1.6 0.32 - 0.06 - 192
Zone E 1.6 0.41 - 0.06 - 246
TOTAL   2.71 - 0.06 - 1 758

Notes:

  • The effective date for the Mineral Resource estimates is 14 October 2018
  • Mineral Resource estimate reflects 100% of material/asset; Montero has a binding Heads of Agreement to purchase 95% of the Uis Tailings material
  • The Mineral Resource for Li2O in the coarse tailings material (Zone A) is based on a grade cut-off of 0.35% Li2O at 5% product grade
  • The Mineral Resource for SnO2 in the fine tailings deposits (Zones B to E and Zone A4) is based on a grade cut-off of 47ppm SnO2 * No lithium resources have been reflected in the fine tailings material due to insufficient or no test work on his material. (Zone B to E and Zone A4)
  • As the process flow for the material will extract the SnO2 via shaking tables before the Li2O circuit for the Zone A coarse material, no cut-off has been applied to the SnO2
  • A Mineral Resource for Li2O is not reported for the fines material (Zones B to E and Zone A4) as the average Li2O grade of the fines material does not hurdle the cut-off of 0.82% Li2O
  • The product price applied to the coarse and fine tailings material was the Li2O spodumene price of US$925/t
  • A SnO2 price of USD23,500/t was applied, based on consensus forecast information
  • A processing recovery of 70% for Li2O of the coarse material was applied and a 30% recovery for the fines material of Zones B to E
  • A processing recovery of 60% for SnO2 for both the coarse and fine material was applied
  • The QP for the Mineral Resources considers the existing estimation database and information available from Montero and the QP Geology and QP Metallurgy to be adequate to support reporting a low confidence Mineral Resource, that being an Inferred Mineral Resource.  As per the CIM Definitions Standards (May 10, 2014), an Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity

Figure 1. Aerial view of the Uis Lithium Tin Tailings Project showing locations of Zone A coarse tailing and Zones B-E fine tailing material. Zone A fines are annotated as A4.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/217f76eb-c588-4f78-9cd2-75fbe3739ac7

A full copy of the Mineral Resource estimate report will be available on the SEDAR website and Montero website within 45 days.

Metallurgical test work on samples from the property, in-fill drilling on the tailings material and further drilling is planned. These results will form the basis for an updated Mineral Resource estimate.

Qualified Person’s Statement

This press release was reviewed and approved by Mr. Mike Evans, M.Sc. Pr. Sci. Nat., who is a qualified person for the purpose of National Instrument 43-101 and a Consulting Geologist to Montero. A review was also undertaken by Dr Heather King, PhD, Pr. Sci. Nat., Mr. Nico Scholtz, M.Sc., Pr. Sci. Nat. and Mr. Peter Hand, B.Sc. (Hons), FSAIMM as Qualified Persons for the purpose of National Instrument 43-101.

About Montero
Montero is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties in Africa. Currently these include lithium and tin in Namibia, phosphates in South Africa and rare earth elements in Tanzania. Montero is reviewing and evaluating other opportunities from its operating base in South Africa. Montero trades on the TSX Venture Exchange under the symbol MON.

For more information, contact:

Montero Mining and Exploration Ltd.
Dr. Tony Harwood, President and Chief Executive Officer
E-mail: ir@monteromining.com
Tel: +1 416 840 9197 | Fax: +1 866 688 4671
www.monteromining.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements, projections and estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Such information is based on information currently available to Montero and Montero provides no assurance that actual results will meet management’s expectations. Forward-looking information by its very nature involves inherent risks and uncertainties that may cause the actual results, level of activity, performance, or achievements of Montero to be materially different from those expressed or implied by such forward-looking information. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of Montero’s mineral properties, and financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Montero’s activities; and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Montero’s forward-looking statements. These and other factors should be considered carefully and accordingly, readers should not place undue reliance on forward-looking information. Montero does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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