American CuMo Purchases Additional Mining Claims for CuMo Project and Completes Additional Ore-Sorting Analysis

American CuMo Purchases Additional Mining Claims for CuMo Project & Completes Additional Ore-Sorting Analysis

VANCOUVER, BC / ACCESSWIRE / March 2, 2017 / American CuMo Mining Corporation (MLY.V) (OTC PINK: MLYCF) (“CuMoCo” or the “Company”) announces that its wholly-owned subsidiary, Idaho CuMo Mining Corporation (Idaho CuMo), has purchased from a group of local prospectors twenty (20) unpatented mining claims, covering an area of approximately 400 acres adjacent to the CuMo Project. The consideration payable for the claims was a onetime payment of the issuance of Idaho CuMo’s 7-year term silver convertible debenture valued at US$ 250,000, one million usual shares of CuMoCo, & the sum of US$ 10,625 representing an advance on the initial 6-month interest payment on the convertible debenture. This purchase is subject to exchange approval.

“These claims lie approximately 10 miles northeast of Pioneerville, Idaho & immediately next to our CuMo Project. Collectively, they represent an significant addition to our overall land position & an integral part of the continuing development of our CuMo Project,” said Shaun Dykes, President & CEO of CuMoCo.

The Company moreover announces that it has completed additional analysis on its Ore-Sorting results recently announced (please pertain to the Company’s news release of January 24, 2017). The analysis shows that a two-sort process will be best for the CuMo deposit. The initial sort would sort material into waste & mill feed plus stockpile & the second sort would separate the feed from stockpile with feed being sent straight to processing & the remainder sent to a stockpile. Proceeding in this manner is designed to maximize the returns during the first 40 years of a possible operation. It should be noted that recent advancements in Ore-Sorting technology can perform both sorts at the same time. The tables below contain values from the case selected by the Company to be used to test bulk samples to establish the final values to be used in pre-feasibility & feasibility studies.

Table 1 shows the results of the testing for the selected Ore-Sorting scenario of 75% mined material accepted in initial sort & Table 2 shows 50% of the 75% accepted on the second sort, based on the amount of rock accepted for processing.

Initial Sort

Start grade

Metal % Accepted
Accepted grade
Zone
Mo
Cu
Value
Volume
Mo
Cu
Mo
Cu
Value

%
%
US$
Accept %
Accept %
Accept %
%
%
US$
CuAg
0.019
0.078
$ 9.35
68.29%
85.12%
83.79%
0.023
0.105
$ 12.27
CuMo
0.042
0.058
$ 10.43
83.45%
97.21%
86.92%
0.049
0.072
$ 12.55
Mo
0.051
0.052
$ 11.01
71.51%
95.29%
78.01%
0.068
0.051
$ 13.04
Overall
0.047
0.055
$ 10.78
75.00%
95.02%
83.55%
0.062
0.069
$ 13.90
Second Sort
Sort 1 accepted grade
Metal % Accepted
Accepted grade
Zone
Mo
Cu
Value
Volume
Mo
Cu
Mo
Cu
Value

%
%
US$
Accept %
Accept%
Accept%
%
%
US$
CuAg
0.023
0.105
$ 12.27
10.98%
41.34%
14.79%
0.102
0.130
$ 24.35
CuMo
0.049
0.072
$ 12.55
40.36%
84.93%
51.54%
0.085
0.070
$ 16.85
Mo
0.068
0.051
$ 13.04
29.66%
85.75%
48.64%
0.140
0.081
$ 24.69
Overall
0.062
0.069
$ 13.90
37.50%
76.89%
35.49%
0.127
0.081
$ 23.07

Note:

all tons are short tons as per the USA system.
Tables based on an initial sort of 75% of the material above a mine cutoff & a 50% second sort to separate mill feed from stockpile. Stockpile would be processed later.
Mined material is based on the 150,000 tons per day case in the PEA, where 150,000 tons of mill feed & 150,00 tons of stockpile were proposed to be mined.

The tables show the volumes delivered to the mill & the metal content of those values. For example, in the case of the Mo zone, 29.66% of the material is direct feed & it contains 85.75% of the molybdenum & 48.64% of the copper in the original mined material. The initial mine grades were 0.051% Mo & 0.052% Cu with a recovered value of $11.01. Following the second sort, the grades are 0.140% Mo & 0.081% Cu with a recovered value of $24.69. This represents a grade increase of 274.5% in molybdenum, 147.3% in copper & 224.0% increase in value.

Due to the multi-element nature of the mineralization, a recovered metal value is used to separate the accepted material from the rejected. It is moreover significant to note that under non-sorting conditions, all the material would be sent for processing. Low metal prices of US$5 moly oxide (US$7.5 moly metal Mo), & US$2.75 copper from the PEA were used as they are close to current prices. Silver is not included in the calculation as only copper & molybdenum are used in the sorting process.

The formula for calculating recovered metal value is:

RCV= ((Cu/10000) *20*$(Cu)* Cu recv) + ((Mo/10000) *20*$(Mo)* Mo recv). Copper recovery (Cu recv) is 75% & moly recovery (Mo recv) is 90%.

Finally, the Company announces that it has granted as of March 1, 2017, a total of 2,450,000 new stock options to directors, officers, & consultants. The options granted are for a period of five years expiring on March 1, 2022, at a price of thirty cents ($0.30).

The targets & the potential optimizations are conceptual in nature as there has been insufficient work done to confirm the target values as defined by NI 43-101 & it is uncertain that further work would result in establishing these targets.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President & CEO of the Company is the designated qualified person for the CuMo Project, & prepared the technical information contained in this news release.

About CuMoCo

CuMoCo is focused on advancing its CuMo Project towards feasibility. CuMoCo moreover intends to advance its newly-acquired Calida Gold Project. Management is continuing to build an even stronger foundation from which to move the Company & its projects forward. For more information, please visit www.cumoco.com, www.idahocumo.com & www.cumoproject.com.

For further information, please contact:American CuMo Mining Corporation
Shaun Dykes, President & Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com

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

Forward-looking information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation including, yet not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such as the Millennia Minerals satisfactorily completing due diligence & Company, Idaho CuMo, Poly & Millennia Minerals subsequently entering into a definitive agreement; Millennia Minerals completing the three private placements into Poly; the Company’s ability to move its CuMo Project to feasibility & production, & to become one of the largest & lowest-cost molybdenum producers in the world as well as a significant producer of copper & silver. Forward-looking information is based on a number of material factors & assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study & to put the CuMo project into production, that no labour shortages or delays are experienced, that plant & equipment function as specified that the Court will not intervene with the Company’s proposed exploration activities at the CuMo Project, & the ability of the Company to obtain all requisite permits & licenses to advance the CuMo Project & eventually bring it into production. Forward-looking information involves known & unknown risks, future events, conditions, uncertainties & other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation & actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver & copper; possible variations in grade or recovery rates; labour disputes & other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company’s publicly filed documents, including the Company’s Management’s Discussion & Analysis for the period ended September 30, 2016. 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 information will prove to be accurate, as actual results & future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

SOURCE: American CuMo Mining Corporation

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Source: “Accesswire”

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