Eros Resources Corp focuses on identification, acquisition, exploration and development of advanced resource projects with a North American focus.
~ CURRENT KEY PROJECT ~
Bell Mountain - Permitting Stage Gold Mine Development
Location: Reno, Nevada
The Bell Mountain Project, located in Reno, Nevada in the Fairview mining district, is comprised of four gold - silver resource deposits, the Spurr, Varga, Sphinx and East Ridge deposits.
PROJECT OBJECTIVE: Eros Resources is determined to develop and turn Bell Mountain gold - silver bearing deposits into an active and prosperous mine.
The Bell Mountain Project is located southeast of Reno, Nevada in the Fairview mining district, approximately 54 miles (86 kilometres) from Fallon, Nevada. The property consists of 174 unpatented lode claims covering a land package of 1,463 hectares (3,616 acres). In addition, there are six mill site claims that cover an existing water well.
Geology & Mineralization
The Bell Mountain property is located within the Fairview Peak caldera, a small Miocene (~19.2 Ma) volcanic center comprised of a thick sequence of rhyolite-dacite flows, flow domes, and pyroclastic rocks. Epithermal low-sulfidation gold-silver mineralization is hosted by calcite and quartz-calcite veins and stockwork associated with pervasive silicification. Veins and hydrothermal alteration are controlled by east-northeast trending near-vertical structures and west-northwest cross structures.
To date, four main bodies of gold-silver mineralization (Varga, Spurr, Sphinx and East Ridge) have been defined by drilling. The larger Spurr and Varga zones are situated along the principal NE structural trend (Varga-Spurr fault), the Sphinx zone is controlled by a WNW cross structure (Sphinx fault). The East Ridge zone is controlled by a NE striking structure. The East Ridge Deposit consists of a single east-northeast trending quartz-calcite vein which dips steeply to the south
Gold was discovered on the property in 1914. The only recorded production from the property came from a 35-ton, hand sorted ore shipment in 1927 that graded 16 g/t gold and 510 g/t silver.
Over a 29-year period from 1984, nine different companies completed surface mapping and sampling, geophysics and drilled a total of 297 drill holes for a total of 62,303 feet of combined RC and diamond drill core holes.
In April 2015, Eros entered into a purchase agreement to acquire the Bell Mountain property. On May 3, 2015 Welsh Hagan Associates (formerly Telesto Nevada, Inc.) completed a NI 43-101 technical report on behalf of Eros and Globex Mining Enterprises.
On October 11, 2017, Eros issued the results of a Preliminary Economic Assessment (“PEA”). A NI 43-101 technical report prepared by Welsh Hagen Associates was issued on October 31, 2017 presenting the results of the PEA on behalf of Eros and Globex Mining.
The mineral resource estimate was prepared by Zachary J. Black, SME-RM, with Hard Rock Consulting (“HRC”). The Project is subdivided into four (4) individual areas known as Spurr, Varga, Sphinx and East Ridge. Each modelled area was divided into three domains: country rock, stockwork and vein. HRC estimated the mineral resource using an ordinary krige algorithm. In order to meet the test of ‘reasonable prospects for economic extraction,’ HRC constructed a Lerchs-Grossmann pit shell based on $1,300/oz gold and $17.50/oz silver. Resources were assigned measured, indicated and inferred classifications based on the confidence of the estimate, domain of the geologic model and proximity to drill holes.
- Open pit optimization was used to determine potentially mineable tonnage. Measured, Indicated and Inferred mineral classification was determined according to CIM Standards. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The 2017 Measured, Indicated and Inferred resource is constrained within a $1,300/oz Au and $17.50/oz Ag Lerchs-Grossman Pit shell. The base case estimate applies a AuEq cut-off grade of 0.005 oz/t for Varga and 0.004 oz/t for all other areas based on the estimated operating costs. Metallurgical recoveries used for the cut-off calculations were 83.7% on gold and 29.6% on silver for Spurr, 68.6% on gold and 12.8% on silver for Varga and 80% on gold and 10% on silver for Sphinx and East Ridge.
- Gold Equivalent (AuEQ) ounces were determined using the equations: AuEq Factor = (AuRec/AgRec) x ($Au/$Ag) and AuEq = Au + (Ag/AuEq Factor).
Resource Statement for the Bell Mountain Project, Churchill County, Nevada Hard Rock Consulting, LLC, October 9, 2017
Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The 2017 Measured, Indicated and Inferred resource is constrained within a $1,300 Au and $17.50 Ag Lerchs Grossman Pit shell.
The base case estimate applies a AuEq cutoff grade of 0.005 oz/t for Varga and 0.004 oz/t for all other areas based on the estimated operating costs.
Metallurgical recoveries used for the cutoff calculations were 83.7% on gold and 29.6% on silver for Spurr, 68.6% on gold and 12.8% on silver for Varga and 80% on gold and 10% on silver for Sphinx and East Ridge.
Processing and Metallurgical Recovery
The deposits of the Bell Mountain Property (Spurr, Varga, Sphinx and East Ridge) generally are quite amenable to processing by heap leaching. Metallurgical recoveries used were 83.7% on gold and 29.6% on silver for Spurr, 68.6% on gold and 12.8% on silver for Varga and 80% on gold and 10% on silver for Sphinx and East Ridge.
Potential Processed Material within Designed Pits
2. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
3. There is no certainty that all or any part of the mineral resource will be converted to mineral reserves.
4. Design pits are based on $1250/oz Au and $15/oz silver Lerchs-Grossman pit optimizations.5. Rounding may cause apparent inconsistencies.
Capital & Operating Costs
Capital and costs were developed from scaling costs from similar facilities for production rates and from design assumptions including a contractor operated mining fleet. The life of mine capital cost for the base case is US$18,503,468 and operating cost per ton of ore processed is US$7.50 per ton. See Mine Plan for Operations Document.
A gold price of $1,300/oz and a silver price of $17.50/oz were chosen for the base case economic evaluation based roughly on the 3-year trailing London Gold Fix prices in combination with the current gold and silver prices at the effective date of the PEA. The economic evaluation base case is considered realistic and meets the test of reasonable prospect for eventual economic extraction. The base case economic results for the metal price assumptions are shown as follows: