Huakan International Mining Inc. Provides Update on J&L Metallurgical Testwork
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/13 -- Huakan International Mining Inc. (TSX VENTURE: HK) (the "Company") is pleased to report results of a preliminary metallurgical testing program undertaken on bulk samples obtained from the Company's J&L Project Main Zone deposit. The results provide further support to forward a process flowsheet to generate lead and zinc flotation concentrates, and produce gold/silver Dore, with additional precious metal credits provided from the lead concentrate. The program follows a similar process concept, with some modifications for the Company's Preliminary Economic Assessment ("PEA") (see NR 12-04).
Metallurgical testwork that has been completed to date on the Main Zone bulk sample includes; comminution, heavy media separation, and flotation, as well as pressure oxidation and bioleach testing of the precious metal bearing arsenopyrite/pyrite flotation concentrate. This testwork culminated in performing locked cycle flotation testing on a master composite sample grading 6.9 g/t Au, 58 g/t Ag, 2.4% Pb, and 3.9% Zn. Differential flotation was used to produce separate lead, zinc and arsenopyrite/pyrite concentrates. The locked cycle results show that the average lead concentrate graded 59% Pb, 40.7 g/t Au, and 699 g/t Ag, recovering 63% of the lead. The zinc concentrate assayed 61% Zn, accounting for 62% of the contained zinc. Further optimization testwork to reduce concentrate grade in order to improve base metal recovery will be performed. The arsenopyrite/pyrite concentrate that was produced was subjected separately to both pressure oxidation leaching (POX) and bioleaching pre-treatment methods prior to cyanidation. The resulting cyanidation of the POX product gave up to 97% gold recovery. Silver recovery of 93% was obtained following lime boil of the POX residue. As an alternative cyanide pretreatment method, bioleaching resulted in 89% gold recovery and 97% silver recovery. After accounting for heavy media, flotation and POX leaching losses, including the assumption of no precious metal payables for the zinc concentrate, the overall recoveries of the principal metal credits were calculated at 92% for gold and 90% for silver.
In addition, the Company has recently commenced a metallurgical testwork program on drill core samples from the J&L Yellowjacket Zone. The Yellowjacket testwork will primarily be comprised of flotation studies. Leaching of the Yellowjacket concentrates is not envisioned to be required.
The majority of the testwork is being conducted by Inspectorate Exploration and Mining Services Ltd., in Richmond, British Columbia, under the supervision of the Company's independent metallurgical consultant, Frank Wright, P.Eng. Metallurgical testing is planned to be continued with the advancement of the project development.
About the J&L Project
Since 2010, the Company has focused on advancing its 100% owned J&L precious and polymetallic (gold, silver, lead, zinc) advanced-stage exploration project, located near Revelstoke, British Columbia. The Company completed a positive PEA on the J&L Main Zone in April 2012, and recently updated the resource estimate for the J&L project.
Frank Wright, P.Eng., independent metallurgical consultant, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
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Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to, statements concerning the results of metallurgical testwork programs. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof 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. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.
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Contacts:
Huakan International Mining
Fiona Leung
Chief Financial Officer
(604) 694-2344
www.huakanmining.com
TMX Equicom
Joe Racanelli
(416) 815-0700 ext. 243