May 28 2015
Pinecrest Resources Ltd. is pleased to provide an update on activities on the Company's 100% owned Enchi Gold Project in Ghana, West Africa.
Preliminary Economic Assessment Update
The Company recently announced the results of the owner operated PEA on the Enchi Gold Project. Highlights of the PEA at $1300/oz gold include: a Pre-Tax Net Present Value (NPV) at a 5% discount rate of $US 102 million and an Internal Rate of Return (IRR) of 33% (see March 2, 2015 News Release for further details and cautionary language http://www.pinecrestresources.com/). Pinecrest plans to evaluate a contract mining scenario which could enhance already robust Project economics while decreasing upfront capital requirements. Pinecrest has engaged WSP Canada to evaluate a contract mining scenario at the Enchi Project and we anticipate that this study will be completed by Q3/2015.
Ryan King, President stated: "On the back of announcing a positive PEA in March, 2015 the Company is reviewing opportunities to potentially reduce capital costs and maximize project economics. In addition to optimizing the PEA, field work is planned to begin in Q3/2015 on the 568 km2 Project to define additional high priority targets for resource expansion drilling."
Metallurgical Test Work
Pinecrest is currently evaluating several options for advancing metallurgical test work on the Project. The work will be focussed on evaluating heap leach gold recoveries on oxide material. The PEA utilized 75% gold recovery for oxide and transitional material and 73% gold recoveries for sulphide mineralization. These recoveries are based on bottle roll testing and assumed similar process designs to other heap leach facilities in the region. Additional metallurgical testing will better define and optimize the kinetics associated with heap leach gold recovery on the Enchi project.
Resource Expansion Exploration Program
Field work will evaluate several targets with a goal of defining additional targets for resource expansion drilling. Follow-up on high priority drill targets outside of the current Inferred Resources will include previously drilled gold mineralized zones at: Eradi, Boin NW, Sewum South, Achimfo and the Sewum-Tokosea. Additional work will be completed to advance high priority airborne electromagnetic, geophysical, and structural targets on the 568 km2 Project. Field work will consist of geological mapping, trenching, auger drilling, and geochemical sampling.
Environmental Baseline Study and Environmental Impact Study
The Company is anticipating starting the Environmental Baseline Study in 2015. The data and results will be used in the preparation of an Environmental Impact Study for a potential open pit, heap leach operation.
Source: http://www.pinecrestresources.com/