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CuMo Project In The News

Friday, March 28, 2016

U.S. Forest Service Issues Final Supplemental Decision Notice and Finding of No Significant Impact for the CuMo Project in Idaho

The U.S. Forest Service (USFS) has issued the final Supplemental Decision Notice (DN) and Finding of No Significant Impact (FONSI) regarding the CuMo Exploration Project which allows CuMoCo to proceed with late-stage exploration and development work of the CuMo Project. The Supplemental Environmental Assessment (SEA) informing this decision includes analysis to address the 2012 Memorandum Decision and Order from the US District Court for the District of Idaho concerning groundwater analysis.

Regarding concerns about potential impacts to water quality in general and to groundwater specifically, the SEA (Section 2.3.2, p. 36) states, “This level of monitoring and mitigation is sufficient to minimize potential impacts to groundwater quality or identify impacts to groundwater.”

The SEA analysis was also updated to address new information acquired subsequent to the February 2011 Environmental Assessment (EA) and related DN/FONSI, and clarified other points in the analysis per public comments. Under the new permit, construction of up-to-10.2 miles of temporary roads and up-to-137 drill pads and 259 drill holes will be allowed over a period of four years.

Cecilia R. Seesholtz, Forest Supervisor and Responsible Official, said the SEA was updated, in part, in response to concerns raised during a 30-day public comment period in August 2013:

  • To further clarify concerns about groundwater;
  • To address fuel haul and the potential for spills;
  • To update mitigation and concerns for Sacajawea bitterroot;
  • To update effects to resources affected by the 2014 wildfire that occurred within the project area.

“Following completion of the SEA, it was confirmed that an EIS was not warranted,” said Seeholtz. “The rationale supporting this conclusion is documented in the final supplemental DN/FONSI.”

The permitting process for the CuMo Project, and others like it, is guided by the National Environmental Policy Act (NEPA). Implementation of NEPA requires Federal agencies, such as the United States Forest Service, to study the environmental impacts of a Federal action, and to consider mitigation measures. This process helps identify and incorporate the relevant programs and enforceable substantive regulations that allow projects to safely and sustainably operate on public lands.

“The U.S. Forest Service has done an excellent job and is holding the CuMo Project to the highest standards under NEPA, said Shaun Dykes, President and CEO of American CuMo Mining Corporation. “All aspects of the environment in the exploration area have been researched by experts, independently studied and determined not to be adversely affected by the CuMo Project.”

The final Supplemental DN/FONSI and associated documents for the CuMo Exploration Project are available at http://www.fs.fed.us/nepa/fs-usda-pop.php/?project=21302.

American CuMo Mining Announces CuMo Deposit Amenable To Significant Upgrading Using Ore-Sorting

Earlier this year, American CuMo Mining Corporation announced positive results from utilizing ore-sorting technology on samples from its CuMo deposit located in Idaho. Preliminary results reported by Sacre-Davey Engineering establish that mineralization at the CuMo deposit is amenable to significant upgrading using ore-sorting technology.

The CuMo deposit has long been recognized as a stockwork vein deposit, consisting of narrow veins containing molybdenum and/or copper mineralization and surrounded by waste material.  With this vein mineralization structure, excellent metallurgical recoveries can be achieved with the latest ore-sorting technology – even at lower-grade levels. CuMoCo is performing larger bulk tests on its CuMo material with STEINERT Elektromagnetbau GmbH (www.steinertglobal.com), a world-recognized leader in ore-sorting with numerous installations worldwide.

New ore-sorting technology uses sophisticated X-ray technology (XRF/XRT) to identify rocks that contain processing grade minerals and separates them from those that do not. Previous methods of visual ore-sorting can now be performed with much greater accuracy and efficiency. Rock is placed on a conveyor belt following primary crushing. It is then scanned, and based on a grade/value cutoff, either accepted for processing or rejected.

Ore-sorting marks the first of several optimizations for the CuMo deposit in preparation for its Feasibility Study. In conjunction with updated resource calculations, the promising ore-sorting results show the potential for CuMo to compete on a cost-to-produce basis with primary molybdenum producers and copper projects producing molybdenum as a by-product.

The results also provide support for CuMo’s potential as a large-scale, low-cost producer of molybdenum with significant copper, silver and rhenium by-products.

Overall preliminary results indicate that by utilizing modern ore-sorting technology, CuMoCo can mine large tonnages of 150K to 250K per day, while requiring only smaller tonnages of 50K to 100K per day to recover the majority of its metals. The overall objective is to have 25-to-50 percent of the material recovering 85-to-95 percent of the value, substantially increasing profitability and reducing capital and operating costs.

A reduction in processing size from 150K to 50K per day could achieve a savings for the CuMo Project of between $800 million and $1 billion, substantially reducing the cost-per-pound of molybdenum, and by-products copper, silver and rhenium.

The next stage in testing will be an analysis using STEINERT’s XXS T and XXS F commercial scanners. Commercial scanner analysis would be followed by a five ton sample test that will also be used in feasibility-level metallurgical testing. The end results combining both the ore sorting and metallurgical test work will then be used in a feasibility-level economic study.

American CuMo Amends Technical Report

Late last fall, American CuMo Mining Corporation filed an amended 43-101 technical report to support an increase in resource estimates for the CuMo Project.

These new estimates represent the following increases over the previous indicated resource estimate (Snowdon 2011, updated 2012):

  • 21.4% increase in ounces of silver;
  • 17.4% increase in pounds of copper;
  • 10.5% increase in pounds of molybdenum oxide;
  • 19.5% increase in pounds of tungsten, and;
  • 19.6% overall increase in tons.

Medium long-term metal prices of US$10 moly oxide (US$15 moly metal Mo), US$3 copper, US$12.50 per ounce silver, and US$15 per pound tungsten were used. (The US$2.50 cut-off is used for comparison purposes as it is consistent with all previous resource calculations.)

Shaun Dykes, President and CEO of American CuMo Mining Corporation, examined the Preliminary Economic Analysis (PEA) section of the report and confirmed that the operating and capital costs used are still valid and well within the realm of accuracy of a PEA level analysis.

Dykes also restated the base economic case used in the report to match the metal prices used in the resource calculation, namely $15 Molybdenum metal ($10 molybdenum oxide) and $3 copper. The original PEA was done in a higher price environment, so the new base case is more in line with current trends. It should be noted that these prices fall within the range of prices used in the original PEA report. Finally, Dykes added after-tax values to all tables in the PEA to conform with the recent updates to 43-101.

For additional details, please go to cumoproject.com.

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A NOTE FROM OUR CEO

Greetings!

The fourth quarter of 2015 and the first part of 2016 have been very eventful and promising for the CuMo Project team.

First, I’d like to thank all of you who turned out to the barbecue and project update in Crouch in October. We had a record turnout and were able to share important information about the status of the Project.

One major development since we met in Crouch last fall has been the completion of the Supplemental Environmental Assessment (SEA) and the issuance of the Final Decision Notice and Finding of No Significant Impact (FONSI) by the U.S. Forest Service. This milestone represents three years and more than one million dollars of time and money invested by Idaho CuMo Mining Corporation (ICMC).

This milestone puts us one step closer to completing the exploration and advancing the project to the next phase. Additionally, it affirms our team’s commitment to conducting all exploration and development activities, present and future, in a manner that ensures a minimal impact on the environment. Each and every decision made by our team is focused on designing an environmentally sound and socially responsible project.

We are grateful for your engagement in the development of the CuMo Project. As we move the Project forward, we are committed to being a good neighbor and a responsible community partner.

Thank you for your continued interest in the CuMo Project.

Best regards,

Shaun Dykes
Chief Executive Officer
American CuMo Mining Corporation

   
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