Companies Study Polymetallic Mill Plan in British Columbia

Blackwolf Copper and Gold has signed a Memorandum of Understanding with Dolly Varden Silver and New Moly LLC to jointly study the viability of using New Moly’s Kitsault project as the potential site for a centralized polymetallic processing facility that could accept mineralized material from the companies’ respective deposits in northwestern British Columbia and southeastern Alaska. The proposed site at Kitsault previously hosted a molybdenum mine. New Moly is considering funding requirements to restart a larger scale project.

The companies have engaged Fuse Advisors Inc. to complete an initial assessment of the technical viability of the Kitsault polymetallic mill concept. By reviewing the respective metallurgical test work completed at the various deposits, Fuse will assess the potential for blending or batching mineralized material, potential process flow-sheets, potential throughputs from the various deposits and associated mill sizing and timelines. Fuse will also be completing industry benchmarking by assessing similar polymetallic mines and mills, which include Boliden’s operations in Scandinavia and the Jiama project in China.

“We are optimistic about the potential synergies of working with the companies in a scenario to reduce respective capital costs as well as reduce permitting timelines and risks by using a permitted site located on tidewater,” said Robert McLeod, president and CEO of Blackwolf. “With the Niblack Cu-Au-Zn-Ag deposit also located on tidewater and marine bulk transport being reasonably cost effective, we believe that the Kitsault site could be a potential good fit for Blackwolf. Other companies with projects near tidewater in Alaska and B.C. have also expressed interested in participating.”

The companies will jointly share the costs of this study. Fuse Advisors is a Vancouver-based consultancy that provides project management and technical advisory services to development stage companies in the resource sector.

The Kitsault mine project is owned by Avanti Kitsault Mine Ltd., in which New Moly has a 100% interest. The mine is a brownfield site with considerable past mining activity and basic infrastructure in place. From 1968 and intermittently until 1982, the site produced approximately 30 million lb of molybdenum from open-pit mining. Kitsault’s development would include construction of a process plant, upgrade of the existing powerline, expansion of the existing open pit, construction of a low-grade ore stockpile, waste rock management facility, and a tailings management facility with associated water management ponds.

The contiguous Dolly Varden and Homestake Ridge projects, owned by Dolly Varden Silver, make up a 163-km² land package across the inlet from the Kitsault site, via a 28-km historic mine road. Blackwolf Copper and Gold’s Niblack project hosts multiple Cu-Au-Zn-Ag deposits and prospects, located next to tidewater on Prince of Wales Island in southeast Alaska.

New Moly also owns 80% of the Mt. Hope molybdenum project in Nevada.