VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2012) - Oracle Mining Corp. (TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) ("Oracle Mining" or the "Corporation") announced today that, at the request of the British Columbia Securities Commission, it is clarifying and updating its disclosure regarding its exploration and development activities at the Oracle Ridge Copper Mine near Tucson, Arizona ("Oracle Ridge").
Resource Validation Program
The Corporation is continuing its work on a program at Oracle Ridge designed to validate the Corporation's existing historical technical database in order to produce a new technical report on mineral resources that is compliant with National Instrument ("NI") 43-101 (collectively, the "Validation Program"). Concurrently, the Corporation continues to work towards obtaining the necessary permits with respect to Oracle Ridge.
As announced by news release on June 27, 2011, the Corporation previously anticipated completing a NI 43-101 compliant technical report relating to a current mineral resource estimate in the summer of 2011. On October 19, 2011, the Corporation issued a further news release announcing that it expected to complete a NI 43-101 technical report relating to a current mineral resource estimate prior to the end of 2011. Subsequent to these news releases, management of the Corporation diverted additional resources from the Validation Program to permitting, which the Corporation believed would take longer to complete. The decision to divert additional resources to permitting resulted in a delay in the completion of the Validation Program. The Corporation currently expects to complete the Validation Program by the end of 2012. If a current mineral resource estimate is established, the Corporation intends to promptly issue a news release disclosing this fact. A NI 43-101 compliant technical report on the current mineral resource will then be filed by the Corporation within 45 days of the date of such news release.
The Corporation also announced today that it has filed a NI 43-101 technical report dated October 14, 2012 providing an update of its activities at Oracle Ridge up to April 13, 2012, titled "Review of the Oracle Ridge Mine Project for Oracle Mining Corp., Oracle Ridge, Arizona, U.S.A., April 13, 2012". The technical report was prepared by Glenn R. Clark, P.Eng and is available at www.sedar.com. Mr. Clark is a "Qualified Person" as defined in NI 43-101, and was responsible for preparing the Report.
Geological, Mining and Engineering Studies
On January 18, 2011, the Corporation announced by news release that it had contracted Lyntek Inc. ("Lyntek") for the production of a feasibility level design and capital cost study, and on October 26, 2011, the Corporation announced by news release that it expected a final report in November 2011. On May 10, 2012, the Corporation announced that it had retained SRK Consulting ("SRK") to author a feasibility study and KD Engineering ("KD") to complete the feasibility-level engineering for the processing facility and mine site infrastructure, as well as contribute to the feasibility study. The Corporation wishes to clarify that its arrangements with SRK and KD superseded and replaced the engagement that the Corporation previously had with Lyntek.
NI 43-101 restricts an issuer from using the term "feasibility study" when referring to a study unless the study satisfies the criteria set out in the definition ascribed to such term by the Canadian Institute of Mining, Metallurgy and Petroleum as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council, as amended. The Corporation has referred to the studies being undertaken by SRK as a "feasibility study". The Corporation wishes to clarify its use of the term "feasibility study" with respect to the geological, mining and engineering studies being conducted by SRK. The Corporation confirms that these commissioned studies may be incorporated into a future feasibility study undertaken by the Corporation if it establishes a current mineral resource estimate. If a current mineral resource estimate is established, the Corporation intends to work towards completing a feasibility study, which it currently expects to complete by the end of 2012.
The Corporation also clarifies that it has not made any production decision with respect to Oracle Ridge. A decision to proceed with production at Oracle Ridge will be based upon the Corporation establishing a current mineral resource estimate and the results of a feasibility study demonstrating economic and technical viability.
The Corporation also retracts all of its previous statements which may be construed to relate to economic analyses, forecast production rates, capital costs and related information contained in its investor presentations, investor relations materials and other information posted on its websites (the "Investor Materials") at www.oracleminingcorp.com and www.oracleridgecopper.com, including the following management estimates related to Oracle Ridge:
- capital expenditures of approximately $100 million to restart production;
- annual production estimates of 25 - 30 million pounds of copper;
- annual production estimate of approximately 3,000 ounces of gold and 360,000 ounces of silver;
- targeted initial mine production date; and
- the anticipated life of the mine.
The Corporation retracts the foregoing disclosures from its investor presentations dated April 3, 2012, May 2012, June 29, 2012 and September 26, 2012 and its corporate fact sheets previously posted on its websites. The Corporation advises readers not to rely on the aforementioned investor presentations and fact sheets to the extent that they continue to be available to the public. Readers are referred to the updated investor presentation of the Corporation dated October 3, 2012 available at www.oracleminingcorp.com.
The Corporation is retracting the foregoing disclosure as it does not have a current mineral resource estimate and has not completed a preliminary economic assessment.
There are no mineral resources or reserves at the Oracle Ridge property that meet the requirements of NI 43-101. The historical estimates of resources and reserves at the Oracle Ridge property contained in the Investor Materials do not follow the definitions of the Canadian Institute of Mining, Metallurgy and Petroleum and other requirements of NI 43-101 and should not be relied upon. The estimations given therein were historical in nature and readers are cautioned against using them for an economic assessment. A "qualified person" under NI 43-101 has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves, and the Corporation is not treating the historical estimates as current mineral resources or mineral reserves.
About Oracle Mining Corp.
Oracle Mining Corp. (TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) is a Vancouver, Canada-based Corporation that is the sole owner and operator of Oracle Ridge Mining LLC and the Oracle Ridge Copper Mine located 24 km northeast of Tucson, Arizona. Oracle Mining is managed by an experienced team of mining professionals with extensive operating and financial experience.
Forward-looking Statement Disclaimer
This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Oracle Mining does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable law. Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to establishing mineral resources, the realization of mineral reserve estimates, the receipt of permits to develop and operate the project, the timing and amount of estimated future production, costs of production, access to capital, capital expenditures, success of mining operations, commodity prices, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words 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 statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. Forward-looking statements in this news release include, but are not limited to, any statements with respect to the completion of the Validation Program, the establishment of a current mineral resource estimate, the completion of a NI 43-101 compliant technical report on mineral resources, the completion of the geological, mining and engineering studies being conducted by SRK, the completion of any future feasibility study and the results of such study being positive, any decision whether to proceed with production at Oracle Ridge, and the development of Oracle Ridge. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; delays in the completion of the geological, mining and engineering studies being conducted by SRK; as well as those factors detailed from time to time in the Corporation's annual information form for the year ended December 31, 2011 filed and available for review on SEDAR at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.