TORONTO, Jan. 10, 2017 /CNW/ - Kerr Mines Inc.
("Kerr" or the "Company") (TSX:KER) is pleased to
announce that it has engaged JDS Energy and Mining Inc.
("JDS") to provide technical consulting services in support
of the Company's Copperstone mine in Arizona. Specifically,
JDS will provide geological, engineering and economic evaluation
consulting services to Kerr.
"As Kerr progresses to the next stage of its turnaround efforts
and the continued dewatering provides access to key underground
working areas of the mine, JDS will provide the technical expertise
to develop the work plan for the coming few months," said Chris
Hopkins Interim President & Chief Executive Officer. "This key
addition of proven technical expertise promises to provide Kerr
with a high quality and cost effective solution as we diligently
plan for a successful and prudent restart of operations at
Copperstone."
JDS will provide the technical expertise to design and manage
the mine's definition drilling program, resource modeling and mine
planning work that will form the backbone of a new business plan to
re-start the project. JDS has been provided with the
extensive Copperstone project geological and drill hole database
compiled by Kerr after acquiring Copperstone in June 2014. This will allow the advisors to
efficiently utilize this data that includes approximately 1,000
drill holes, 540,000 feet of drilling and 71,000 assays. JDS
also has prior experience at Copperstone as they were also engaged
to review the project in late 2015 on behalf of investors that have
supported the Company's turnaround efforts since then.
Over the past year, Kerr has focused on restructuring the
Company, completing a number a number of milestones, including:
- the completion of a significant financial restructuring
providing a net working capital improvement of approximately
$21 million compared to March 31, 2016 when the restructuring began;
- access to additional capital from its major shareholders;
- the sale of its non-core Bear
Lake property to Bonterra Resources Inc.;
- key additions to the Board and management teams;
- the closing of the sale of a portion of its Bonterra Resources
Inc. shareholding for cash; and
- the commencement dewatering and rehabilitation work at the
Copperstone mine.
About JDS
JDS Energy & Mining Inc. (JDS) was
founded in 2004 and is now composed of over 150 skilled and highly
experienced mining and construction professionals, including 30
mining engineers. With a proven record providing clients with
fit-for-purpose solutions and value delivery, JDS has acquired a
reputation for delivering and executing project plans on budget, on
time, and most importantly, safely. The JDS team prides itself on
delivering project concepts from inception to full operations – a
process it has executed seamlessly for operations throughout
Canada and the world, including
the Minto Mine in the Yukon, the
Gahcho Kue Mine located in the Northwest
Territories, and most recently the Silvertip Mine in
northern British Columbia.
About Kerr
Kerr is a North American gold exploration
and development company based in Toronto,
Canada. Kerr's core focus is to commence operations at the
Copperstone Mine in Arizona. The
Copperstone Mine produced nearly 500,000 ounces of gold
through open pit mining. Existing infrastructure which remains from
this time, or which has been subsequently installed by the
Company's predecessor and wholly owned subsidiary, American Bonanza
Gold Corp., is considerable and serves to reduce the current
capital requirements for the mine. Existing infrastructure
includes a power line and substation, and three water wells, all
sufficient for the proposed operations at
Copperstone. Additional infrastructure on site includes
offices, maintenance shops and a laboratory building permitted
tailings facility, processing facility and mill.
This news release contains forward-looking statements, including
current expectations on the timing of the commencement of
production and the rate of production, if commenced. These
forward-looking statements entail various risks and uncertainties
that could cause actual results to differ materially from those
reflected in these forward-looking statements. Such statements are
based on current expectations, are subject to a number of
uncertainties and risks, and actual results may differ materially
from those contained in such statements. These uncertainties and
risks include, but are not limited to, the strength of the Canadian
economy; the price of gold; operational, funding, and liquidity
risks; the degree to which mineral resource estimates are
reflective of actual mineral resources; and the degree to which
factors which would make a mineral deposit commercially viable are
present; the risks and hazards associated with underground
operations. Risks and uncertainties about Kerr Mines' business are more fully discussed in
the Company's disclosure materials, including its annual
information form and MD&A, filed with the securities regulatory
authorities in Canada and
available at www.sedar.com and readers are urged to read these
materials. Kerr Mines assumes no
obligation to update any forward-looking statement or to update the
reasons why actual results could differ from such statements unless
required by law.
Neither TSX nor its Regulation Services Provider (as that term
is defined in the policies of the TSX) accepts responsibility for
the adequacy or accuracy of this release and no stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
SOURCE Kerr Mines Inc.