Welcome!

News Feed Item

TriMetals Mining Inc. Update and Letter From the CEO

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/04/14 -- TriMetals Mining Inc. (TSX: TMI)(TSX: TMI.B)(OTCQX: TMIAF)(OTCQX: TMIBF) -

To The Shareholders and New Investors:

The year is passing quickly, the market is improving not so quickly but improving it is. Those in precious metals look for signs of inflation to boost a somewhat directionless gold price. My favorite inflation indicator is the cost of a "glass of wine" in a restaurant, now there's inflation!

On a more serious note, it has been a very good year for the Company's exploration and development efforts, particularly at the Gold Springs gold-silver project, in safe, mining friendly Nevada/Utah. We believe we are well on the way to our initial goal of a million ounce resource (gold equivalent) as we continue to drill and move the project closer to production. I continue to believe TMI represents an excellent investment and have been buying more shares since the announcement of our drill results.

We have expanded the resource at Gold Springs (NR 14-02 dated February 26, 2014), issued a very encouraging Preliminary Economic Assessment ("PEA") (NR 14-09 dated May 1, 2014 and NR 14-15 dated July 8, 2014) and issued a series of subsequent news releases which include encouraging drill results.

It is noteworthy that the PEA base case with contractor mining showed a pre-tax NPV5% of $162 million with a 57.5% IRR using a $1,300 oz gold price and an $82 million pre-tax NPV5% at a $1,000 gold price. I believe it is important to note that while having gold prices trending higher is clearly beneficial, it's not necessarily essential for project development.

The Gold Springs project has many advantages as an "exploration/development project", one of which is the very significant exploration potential to expand the existing resource. As I often mention we have presently only done sufficient drilling on two of eighteen outcropping gold targets to develop resource blocks (see PEA for details) and have not drilled any of the buried geophysical targets on our large 74 sq km property position. In fact, we estimate that we have drilled less than 10% of the prospective areas for gold and silver mineralization at Gold Springs. Also of economic importance is the fact that the project is located in well-known mining friendly jurisdictions with good infrastructure, the mineralization starts at the surface and the metallurgical testing done to date shows high recoveries for gold (HDG Press Release 13-23).

The new 2014 drill results at the Jumbo target in Utah suggest the presence of a new higher grade zone of mineralization on the eastern side of the Jumbo resource block. This is a significant development subsequent to the filing of the PEA. Starting on September 3, 2014, we plan on doing additional drilling in this zone, to look for extensions to this mineralization which could lead to an expansion of the resource when it is re-estimated early next year.

We have also drilled a few holes at Etna, one of the 18 outcropping gold-targets identified at Gold Springs. This is the third target we have drilled this year. Results show several holes with contiguous mineralization. The gold grades tend to be lower than Jumbo but substantial widths in excess of a hundred metres of mineralization have been drilled in two of the holes. Further drilling is justified but is probably a 2015 activity because we want to focus on the new higher grade zone at Jumbo.

Drilling this year at our Grey Eagle resource block (see PEA) did not extend the mineralized zone to the south as we had hoped, based on our interpretation of the prior year's drilling, but this still leaves potential in areas further north and west. The 2014 drill samples showed that faulting and erosion removed a large part of the prospective zone to the south.

Work is now starting on a series of metallurgical tests aimed at improving the recovery of precious metals, particularly silver, which, if successful, we believe will have a significant impact on the project's economics. These tests, which will use increasingly coarse material up to an inch in diameter, will lead to a series of column tests using similar coarse material to that which would be used in a "heap leach" mine. Professor Dreisinger, our VP of Metallurgy, will be directing these activities and experimenting with different techniques to increase metal recovery. Information from these tests will become available over the next several months.

At Escalones, our large copper-gold porphyry, permitting is in progress for the next phase of drilling and is expected to be in place prior to the drilling season that starts in November. We continue to pursue an appropriate partner for the property because of its large size.

The other branch of the Company involves managing the arbitration process in which the Company is seeking fair compensation for the expropriation of the large Malku Khota silver-indium property by Bolivia. The time line for the formal hearing is still a ways off (May 2016) but in the meantime there is an important milestone; the submission of the "Statement of Claim" by September 24, 2014. Our first class team of lawyers is preparing the Statement of Claim which includes such items as witness and expert testimony, technical information and valuation of losses supporting the dollar amount of the claim.

The Company also owns the patent to the "acid chloride leach" technology that it developed for the Malku Khota silver-indium project. This patented technology can extract multiple metals from mixed ores including precious and base metals plus indium and gallium. All metals are extracted into a single leach fluid greatly simplifying the process. Now that the Company has the patent in place, it has the opportunity to look worldwide for appropriate projects.

I continue to believe the Company is well positioned compared to many of its peers, with US$ 8 million in cash and no debt. We have an active drill program at Gold Springs, driving the Company towards its initial goal of 1,000,000 ounces of gold-equivalent resource, in safe, low-risk, mining-friendly Nevada/Utah.

I look forward to your continued support.

Sincerely,

Ralph Fitch, Chairman, President and CEO

Forward Looking Statements

Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "believe", "goal", "could", "can", "further", "continue", "potential", "expand", "estimate", "suggest", "opportunity", "expected", "plan", "next", "will", "would", "in progress" and similar expressions. Information concerning mineral resource estimates and the interpretation of drill, metallurgical testing and other exploration results may also be considered forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present if and when a mining project is actually developed. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations if known and unknown risks or uncertainties affect our business or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, risks of the mineral exploration industry which may affect the advancement of the Escalones and Gold Springs projects, including possible variations in mineral resources, grade, metal prices; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; timely receipt of required permits, availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; uncertainties associated with the arbitration proceeding against Bolivia, including the quantum of damages to be obtained and the realization or collection of the value of any award or settlement; regulatory, environmental and other risks of the mining industry more fully described in the Company's Annual Information Form, which is available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include:

the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the timely receipt of required permits for the Escalones and Gold Springs projects; the continuing support for mining by local governments in Nevada, Utah and Chile; the availability of equipment and qualified personnel to advance the Escalones and Gold Springs projects; execution of the Company's existing plans and further exploration and development programs for Escalones and Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs; the completion of an updated resource estimate for Gold Springs in early 2015; the ability of the Company to realize value from its investments in Bolivia; the arbitration proceeding along a timeline consistent with other international arbitrations and procedural order no. 1 of the arbitration tribunal; and the third party funder honoring its contractual commitments regarding the arbitration.

Readers are cautioned not to place undue reliance on the forward-looking statements contained in this letter to shareholders. Except as required by law, TMI assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this letter to shareholders describe the Company's expectations as of September 4, 2014.

Class B Shares

The holders of the Class B Shares have contingent rights to receive a pro rata share of 85% of the net cash proceeds, if any (after deducting all costs, tax and expenses and the third party funder's portion thereof), received pursuant to any award or settlement agreement entered into in respect of South American Silver Limited's arbitration claim against the Government of Bolivia. The holders of Class B Shares will not realize any value if: (i) no award or settlement agreement is reached; (ii) no cash payment is included in a settlement agreement; or (iii) the costs of obtaining a cash payment on, or enforcement of, an award or settlement agreement exceeds the amount of such cash payment. South American Silver Limited has sole discretion and decision making authority over when and whether to pursue any particular course of action in respect of the arbitration proceedings, including whether to negotiate or enter into a settlement agreement and including whether to accept non-cash consideration pursuant thereto.

In addition, the accrual of value on the Class B Shares may be significantly delayed. The international arbitration process can take several years before an award is rendered or settlement reached. Once an award is rendered or settlement is reached, enforcing the award or settlement agreement could take additional several years and the full amount of any award or settlement may not ultimately be received, which would reduce the amount, if any, payable to the holders of Class B Shares.

Contacts:
TriMetals Mining Inc.
Ralph Fitch
President & CEO
303.584.0606
[email protected]

TriMetals Mining Inc.
Matias Herrero
Chief Financial Officer
303.584.0606
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...