GRANDE PRAIRIE, ALBERTA – June 2, 2017: ANGKOR GOLD CORP. (TSXV: ANK and OTC: ANKOF) (“ANGKOR” or the “COMPANY”) announces that the Company has completed and filed a technical report (“NI 43-101 Report”) prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) on the Phum Syarung property. As previously disclosed by the Company, the property originally held by Angkor was sold in 2013 to Mesco Gold Co., Ltd. (“Mesco”). The only remaining interest that Angkor maintains in the Phum Syarung Project is a 2.0-7.5% sliding scale Net Smelter Return (“NSR”) on the project which is based on the price of gold. The technical report was prepared on behalf of Angkor by Cmi Capital Limited (“CMI”) and NEW ERA Engineering Corporation (“NEW ERA”).
Highlights of the NI 43-101 Report are as follows:
- CMI and NEW ERA were permitted a site visit by Mesco to inspect the Phum Syarung Project, however as an NSR holder Angkor requested but did not receive access to all exploration and other data from the Mesco, nor was it able to obtain the necessary information from the public domain for the period following the sale of the property to Mesco in 2013. As a result, the authors of the NI 43-101 Report rely on paragraphs 9.2(1) (a) and (b) (“Exemptions for Royalty or Similar Interests”) of NI 43-101 from having to complete those items under Form 43-101F1 that require data verification and inspection of documents to complete those items.
- A personal site inspection conducted by CMI and NEW ERA on April 27, 2017, showed that significant site works have been completed by Mesco at the Phum Syraung Project, including the construction of the initial stages of two inclined shafts and a vertical shaft, installation of two headframes, a single drum winder on one of these, a diesel power generator, a laboratory and various service buildings.
- Mesco Gold Ltd. is a private corporation, a subsidiary of Mesco Group Limited based in India, and is under no obligation to publish project, resource or feasibility study reports compliant with Canadian NI43-101 or other accepted foreign code. Under the terms of the NSR agreement between Angkor and Mesco, Mesco is under no obligation to provide either reports or exploration or other economic data to Angkor or its representatives or consultants, other than reports related to verification of the NSR following the commencement of any future production.
- As a result of the inability to access exploration or other data, the authors of the NI 43-101 Report concluded that:
- the available data does not support the calculation of Mineral Resources as defined by CIM Mineral Resources Estimation Best Practices;
- they are unable to comment on the details of or verify the validity of mining methods proposed by Mesco due to the lack of sufficient drill and other engineering or economic data necessary for the design of an underground mine; and,
- there is insufficient data to comment on details of an economic analysis for the project, addressing detailed annual costs, revenue and cashflow forecasts to determine net present value and other valuation parameters.
Readers are cautioned that this NI 43-101 Report was prepared to fulfill continuous disclosure requirements. As expected, and as noted in the Company’s press release dated October 7, 2016, the NI 43-101 Report did not disclose a compliant resource estimate. A copy of the NI 43-101 Report has been filed on SEDAR.
In reviewing past press releases and statements by the Company, in light of the above NI 43-101 Report above, the Company acknowledges that a number of public statements by the Company with regards to reporting results reported by Mesco did not meet the standards for Canadian NI43-101disclosure.
In a press release dated May 2, 2013, Angkor disclosed that Mesco had lodged a mining plan for development of the Phum Syarung Prospect with the Ministry of Mines and Energy (“MME”), which stated an average head grade and a calculation of expected initial production ounces. In a message by the CEO of Angkor to shareholders on December 3, 2014, a statement was made regarding Mesco’s reported throughput and grades. On June 15, 2015, the Company further issued a press release reporting that Mesco had represented to MME “that its Phum Syarung underground mine, in the northeastern province of Ratanakiri will start with initial capacity of 500 tons per day with a recovery rate of 85%.” The present NI 43-101 Report cautions that the authors cannot verify nor validate data that supports any such calculations. The Company therefore recognizes that its statements with regard to grade, throughput and recovery from information publicly disclosed by Mesco should not have been presented by the Company as they did not comply with Canadian disclosure standards even though accompanied by a disclaimer.
In a Company press release dated May 23, 2013 Angkor reported on the results of drilling on the property following the sale to Mesco. As reported in the NI 43-101 Report, compliant data for only 23 holes of the 35 holes reported were available to the authors. These 23 holes (PS10-001D to PS12-019D) were drilled by Angkor prior to sale using compliant QA/QC procedures and controls. However, later holes PS12-020D to PS12-023D drilled by Mesco were only logged and sampled by an Angkor geologist on secondment to Mesco, and no QA/QC blank or standard samples were inserted into the sequence by Mesco. Although this lack of QA/QC controls was disclosed in the press release, the Company acknowledges that reporting on such drill hole results did not comply with Canadian reporting standards and the subsequent holes should not have been reported.
The Company in a press release dated January 15, 2014 quoted Angkor’s CEO regarding Phum Syarung and “the rapid pace it’s progressing towards mining.” The Company acknowledges that this statement was unduly promotional and a forward-looking statement, and should not have been made.
Finally, as previously reported, the Company in a press release dated October 7, 2016, all non-compliant disclosure and forward-looking statements not supported by the NI 43-101 Report above regarding resource estimates or other information have been removed from Angkor’s website. This includes media reports, news articles and third party investor articles. Investors are cautioned not to rely on information that has not been prepared in accordance with Canadian reporting standards and the Company regrets any inadvertent non-compliance.
Dennis Ouellette, B.Sc, P.Geol., is a member of The Association of Professional Engineers and Geoscientists of Alberta (APEGA #104257) and a Qualified Person as defined by National Instrument 43-101 (“NI 43-101”). He is the Company’s Exploration Manager and has reviewed and approved the technical disclosure in this document.
ABOUT ANGKOR GOLD CORP.
ANGKOR Gold Corp. is a public mineral exploration company listed on the TSX-Venture Exchange with a large land package and a first-mover advantage building strong relationships with all levels of government and stakeholders.
FOR FURTHER INFORMATION PLEASE CONTACT:
ANGKOR GOLD CORP.
Stephen Burega, Vice President of Corporate Development
Telephone: (647) 515-3734
Email: [email protected]
Website at: https://angkorresources.ca or follow us @AngkorGold for all the latest updates.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain of the statements made and information contained herein may constitute “forward-looking information”. In particular references to the private placement and future work programs or expectations on the quality or results of such work programs are subject to risks associated with operations on the property, exploration activity generally, equipment limitations and availability, as well as other risks that we may not be currently aware of. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise