Marlin retracts non-compliant Commonwealth disclosure
AS A result of a review by the B.C. Securities Commission (BCSC), Marlin Gold Mining Ltd. is issuing the following press release to clarify its disclosure. The historical mineral resource estimates, economic analysis and preliminary economic assessment on the company’s wholly owned Commonwealth silver-gold property in Cochise county, Arizona, referred to in certain of the company’s prior press releases (including its March 30, 2015, press release), its corporate presentation posted to its website, its website and certain other disclosure documents, are not supported by a current technical report compliant with the requirements of National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and are retracted and should not be relied upon until they have been verified and are supported by a current technical report compliant with NI 43-101. NI 43-101 prohibits the disclosure of an economic analysis that is based on a historical estimate. The company’s corporate presentation also included historical drill results on the San Cristobal gold target without disclosing all of the information required under Section 3.3 of NI 43-101. The historical drill results on the San Cristobal gold target have been removed from slide 16 of the corporate presentation.
The company is in the process of having a current technical report prepared for the Commonwealth project within the next two months, which will contain an updated resource estimate on the Commonwealth project. This updated resource estimate will use the same geological model and the same metallurgical parameters as the historical resource estimate. The technical report will not contain an economic analysis or constitute a preliminary economic assessment under NI 43-101. The company will provide an update to this news release and file such technical report on the Commonwealth project under its profile on SEDAR.
Since the acquisition of the Commonwealth project in 2015, Marlin’s activities with respect to the Commonwealth project have been focused on: (i) consolidating the land ownership at the Commonwealth project; (ii) improving the underlying geological model that is the basis of the historical resource estimate; and (iii) undergoing a comprehensive metallurgical program that would serve as the ba sis for an up dated NI 43-101 technical report. All of this work is expected to be complete by early 2018. When Marlin’s updated geological model and metallurgical program are complete, it expects that there will be an additional revision to this resource estimate, which may include an updated preliminary economic assessment, but this will not be complete until 2018.
Additionally, the company wishes to clarify that it has not made a production decision with respect to the Commonwealth project. The company has not completed a feasibility study or established the economic viability of the Commonwealth project or proposed operations on the Commonwealth project, and no mineral reserves have been established for the Commonwealth project that would support a production decision. Projects that are put into production without first establishing mineral reserves and completing a feasibility study have historically had a higher risk of economic or technical failure.
The company retracts all non-compliant disclosures referenced above, and it has amended its website and corporate presentation to remove such disclosures.
About Marlin Gold Mining Ltd.
Marlin, a growth-oriented gold and silver mining company focused on the Americas, owns three properties in Mexico and the United States and a portfolio of royalties. Marlin’s priority is to profitably operate its La Trinidad mine, conduct further exploration on its other projects and enhance shareholder value through the growth of its wholly owned subsidiary, Sailfish Royalty Corp. Marlin is backed by a well-financed investor with a successful record in the resource sector. The La Trinidad mine in Sinaloa, Mexico, declared commercial production on Nov. 1, 2014, and is one of the highest-grade open-pit heap-leach gold mines in Mexico.
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