Aurvista Gold's President's Message
Montreal, Quebec--(Newsfile Corp. - December 22, 2014) - Aurvista Gold Corporation (TSXV: AVA) (OTC: ARVSF) ("Aurvista" or the "Company") extends its Best Wishes to Shareholders and Stakeholders for the upcoming Holiday Season and for a Happy and Prosperous New Year.
As Aurvista's President and CEO, I am pleased with the number of successful technical accomplishments the Company achieved in 2014 on our Douay Gold Project ("Douay"). The Company concluded an interpretation of previous magnetic and electromagnetic geophysical work, identifying numerous potential targets for 2015, completed a Preliminary Economic Assessment ("PEA") on the Douay West Zone, and a key agreement with the First Nation community of Pikogan.
Q2-2014 saw the arrival of Mr. Chris Sharpe, P. Eng., to the role of Vice President Engineering, who helped advance the engineering and development of the Douay West Zone. On December 9, 2014, Aurvista announced results of the Company's PEA on Douay West. The PEA considered both open pit and underground production options. The PEA schedule assumed mining 419,000 tonnes of mineralized material in the open pit at an average grade of 3.16 g/t gold (at a cut-off of 1.17 g/t gold). The underground operation would mine 133,000 mineralized development tonnes at a grade of 4.57 g/t gold and 608,000 stoping tonnes at a grade of 4.83 g/t gold (at a cut-off grade off 3.25 g/t gold).
The study showed a pre-tax Net Present Value ("NPV") of $25.0 million using a discount rate of 5% and post-tax NPV of $16.6 million using a discount rate of 5% assuming an approximate two-year average gold price of US$1,350 per ounce and an exchange rate of 1.00 $C = 0.95 US$. The pre and post-tax internal rates of return for the project were 55% and 40%, respectively. The NPV included initial preproduction expenditures estimated at $12.2 million to achieve first production from the open pit. The project life is 3.7 years, after approximately one-year of open pit pre-stripping. The Life of Mine ("LOM") cash operating costs are $800 per ounce of gold, and the LOM all-in sustaining cost are $1,195 per ounce of gold, with a 3.2 year pay-back period from the start of development. Aurvista continues to investigate potential toll milling agreements with local mills.
Based on these positive results, a Prefeasibility study on the Douay West Zone will be initiated in 2015. Aurvista, in support of this initiative, has already began a 5,000 metre drilling campaign to enhance the Project's economics. Should this proposed drill campaign succeed in increasing the size and quality of the compliant Mineral Resources and subsequently the projects production profile, this could result in a higher NPV and extended mine life.
Early in Q4-2014 Aurvista signed a letter of collaboration ("LOC") with the Abitibiwinni First Nation ("AFN") of the Pikogan community, laying the ground work for future, more detailed discussions to take place between Aurvista and the AFN. This agreement represents both parties intent to develop a collaborative relationship moving forward with the development of Douay. The completion of the LOC from management's perspective represents a major step forward in the permitting process of the Douay West Zone. We look forward to this new style of dialogue.
Aurvista also began a new exploration initiative to investigate more thoroughly, the 20 kilometre long Casa Berardi Deformation Zone (the "CBDZ") that transects Douay. To date less than 10 kilometres of this area has been reasonably explored. In the second half of 2014, the Company completed a geophysical reinterpretation of the 2011 magnetic and historic magnetic - electromagnetic ("EM") INPUTTM airborne geophysical surveys from Douay. Initial results have shown a direct correlation between magnetic signatures and multi-kilometric gold-bearing mineralization, alterations and structural corridors. All known higher and lower grade gold mineralization is encompassed in a 10 km long by 3 km wide, parallelogram-shaped block which is stated as Douay-Style Mineralization ("DSM"). Some 25 additional targets were uncovered, adding to the significant potential of Douay. A number of EM INPUTTM anomalies associated with a mix of felsic and mafic volcanic rocks could be associated to base metal mineralization. There is one specific VMS east-west target, some 6 km long, adjoining the DMS and containing a 1 km wide cluster of EM INPUTTM anomalies or conductors.
The Company believes that the work programs that have been commenced and will continue into 2015 are critical to bring Aurvista towards its fair market value.
I wish to thank my fellow Board members for their continued active participation in the ongoing strategic advancement of the project. I would personally like to thank Gerald McCarvill (Chairman), Ed King, Robert Mitchell, Bryan Keeler, Claude St-Jacques and Marc l'Heureux, and the Management/Technical Team, Chris Sharpe, David Johnston, Michael Kneeshaw, Denis Chénard and crews at Explo-Logik for their support and exceptional work throughout 2014.
The technical contents in this news release have been approved by Mr. Jean Lafleur, M. Sc., P. Geo., President and CEO for Aurvista Gold Corporation, a Qualified Persons under National Instrument 43-101.
About Aurvista Gold
Aurvista Gold Corp. is a junior gold exploration and development company. Aurvista's only asset is the Douay Gold Project, consisting of 221 wholly owned claims totaling approximately 11,430 hectares. The Douay Project's North West Zone has 32 designated claims for a total of 1,193 hectares and is in a Joint Venture agreement with SOQUEM.
The Douay Gold Project is located on the Casa Berardi Fault in northern Quebec, and contains Mineral Resources of 114,652,000 million tonnes at 0.75 g/t gold (2.8 million ounces of gold) in the Inferred category and 2,689,000 tonnes at 2.76 g/t gold (238,433 ounces of gold) in the Measured and Indicated category, at a cut-off of 0.3 g/t gold.
Details of the Douay Gold Project can be viewed on the Company's website at www.aurvistagold.com. Refer to the latest newsletter updates at www.miningmarketwatch.net.
This news release may contain forward-looking statements based on assumptions, uncertainties and management's best estimate of future events. Actual events or results could differ materially from the Company's expectations and projections. Investors are cautioned that forward-looking statements involve risks and uncertainties. Accordingly, readers should not place undue reliance on forward-looking statements. When used herein, words such as "anticipate", "will", "intend" and similar expressions are intended to identify forward-looking statements. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Aurvista Gold Corporation's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.aurvistagold.com.
For further information please contact
Jean Lafleur, M. Sc., P. Geo.
President and CEO
Cell +1 514 975 3633
Facsimile +1 416 504 4129
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