Central Iron Ore Ltd.: Mining Operation Commences at Eureka Gold Mine
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 12, 2017) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Central Iron Ore Ltd. (TSX VENTURE:CIO) ("CIO") is pleased to announce that it has been notified that the mining operations have commenced at its Eureka Gold Mine ("Project") in Western Australia by Eureka Mines Pty Ltd ("Producer").
With mining operations commencing a pre-paid royalty of AUD$250,000 is paid to CIO which amount will satisfy subsequent royalty payments up to this amount.
The mining operation phase is expected to be completed by April 2018. The mining operation is planned to extend the depth of the current open pit by approximately 20 metres. Currently the development phase has been completed with:
- Open pit has been dewatered;
- Re-establishment of ramp access to the base of the pit has been completed; and
- Re-establishment of road, haul roads, waste dumps and ROM pads.
To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/CIO1212a.pdf
The Producer will also pay CIO a royalty equal to 4% of the net smelter return generated from the sale of any gold (the Royalty). The Royalty will increase by 2% (being a total royalty equal to 6% of the net smelter return) generated from the sale or removal or other disposal of any gold in excess of 20,000 ounces.
On December 01, 2017, CIO announced that it has entered into an agreement for the AUD$3.2 million sale of its Eureka Gold Project to ASX listed Tyranna Resources Ltd. (ASX:TYR) ("Tyranna"). The pre-paid royalty of AUD$250,000 is paid to CIO and is offset on the consideration from Tyranna.
Mr Brett Hodgins, President and CEO, said, "We are extremely pleased with Eureka Mines Pty Ltd commencing mining operations at the Eureka Project. This is a significant step in the revitalisation and production strategy at the Eureka Project. Continued expansion of the Eureka Pit will allow significant cost reductions in future exploration drilling and allow for an expanded Eureka operation in the short term."
EUREKA GOLD PROJECT
The Eureka Gold Project is approximately 50km North of Kalgoorlie in Western Australia and covers an area of 563 hectares. The Eureka Gold Project includes the Eureka open pit gold mine which is 100% owned by CIO and is NI43-101 compliant.
To view map please click on the following link: http://media3.marketwire.com/docs/CIO1212b.pdf
On behalf of the Board of Directors
Brett Hodgins, President/CEO
Neither the 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 Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of Canadian securities laws. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the market for iron ore or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's disclosure documents for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company's page on SEDAR at www.sedar.com.
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