CORONET PROVIDES UPDATE ON CURRENT DEVELOPMENTS AND STRATEGY

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Through its wholly owned subsidiary, White Caps Mining Co. (WCMC), the company controls the past-producing White Caps gold mine and processing mill, along with an estimated 250,000 tonnes of historical tails and mine dumps(1). The White Caps gold project is located in the historical Manhattan mining district of south-central Nevada, which consists of approximately 2,800 acres and 121 patented and unpatented mining and mill site claims, only 13 miles south of Kinross’s multimillion-ounce Round Mountain gold mine. The Manhattan mining district is considered one of the more underexplored areas in Nevada.

Coronet’s strategy:

To continue its consolidation of claims in the Manhattan mining district: In addition to the company’s existing land package, Coronet is aggressively pursuing opportunities to secure additional adjacent claims, which should greatly enhance scale and opportunity.
Moving to generate near-term cash flow from existing tailings and dumps: With the encouraging initial metallurgical results, and with confirming the tonnage of the tailings and dumps under way, the company is well positioned to enter into commercial production in the near term.

To ultimately redevelop the historical White Caps underground mine: Plans to re-enter and explore the White Caps mine are critical to Coronet’s strategy.
Recap:

Further to the Sept. 30, 2016, press release, six holes have been proposed to drill the White Caps mine dumps and 23 holes to drill the White Caps tailings dumps, totalling approximately 2,700 feet (820 metres) of drilling.
The sonic drilling contract for the White Caps gold mining project tailings and mine dumps was awarded to BoartLongyear, one of the leading experts in using sonic drilling.
Hydrometallurgical testwork was performed by EnviroLeach Technologies Inc., a wholly owned subsidiary of Iberian Minerals. Met-Solve Laboratories and ALS Global performed independent verification of the sample solutions and solids. The results exceeded expectations and the company is compiling the results, which will be released in the next weeks.
Due to the very encouraging phase 1 results, the company is immediately starting phase 2 testing at EnviroLeach.
Coronet’s priorities in 2017:

Drill the White Caps mine dumps and the White Caps tailings dumps to confirm tonnage;
Complete further metallurgical testwork;
With the drilling and metallurgical testwork completed, the company will upgrade and/or verify the historical estimates of the quantity of the gold-bearing tailings and mine dumps as National Instrument 43-101 mineral resources or mining reserves;

Develop pilot plant and small-scale commercial production;

Completion of arrangements to secure additional adjacent claims, which should greatly enhance scale and opportunity;

Re-entry and exploration of historical White Caps underground mine.

Fred Tejada, PGeo, a director of the company, is a qualified person under the meaning of NI 43-101 and is responsible for the technical information contained in this news release.

 

Kal kotecha – Author
Junior Gold Report

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