Josemaria Resources Inc. Provides Update on Feasibililty Study Progress at Josemaria

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Josemaria Resources Inc. Provides Update on Feasibililty Study Progress at Josemaria which Hosts Probable Reserves of 6.5 Million Ounces of Gold, 6.5 Billion Pounds of Copper, and 29 Million Ounces of Silver

VANCOUVER, Sept. 8, 2019, /CNW/ - Josemaria Resources Inc. (TSX and Nasdaq Stockholm - JOSE) (the “Company” or “Josemaria”) is pleased to announce that the Feasibility Study (“FS”) is progressing well and planning is underway for an extensive field program to advance the development of its 100% owned Josemaria copper-gold (Cu-Au) project located in San Juan Province, Argentina.    

Commenting on the Company’s progress and the upcoming program, President and CEO Wojtek Wodzicki stated, "Reserve definition and geotechnical drilling completed last field season once again highlighted the shallow, high-grade intervals typical of the early production years at Josemaria. We are reminded again that Josemaria has the potential to be a significant gold producer, as well as a major copper producer, with the Pre-Feasibility Study projecting average annual gold production of 350,000 ounces for the first three years and 230,000 ounces annually life of mine. Feasibility work remains on schedule for completion in Q2 2020. The upcoming season will focus on collecting additional information required for the Feasibility Study, along with environmental and social programs in support of future project permitting and eventual project development. With the support of the Lundin family trusts, who are our largest shareholders, we are looking forward to further advancing the Josemaria project and continuing to deliver value for our shareholders. The San Juan Provincial government strongly supports the development of additional mines in the Province and we look forward to working with them to develop Josemaria into a project that will benefit our shareholders and the people of Argentina.”

A summary of the proposed 2019/2020 field program is discussed below, and the Company continues to review all financing options with respect to the work plan.

Water Supply Drilling

Following up on a successful water supply investigation program completed during the 2018/2019 field season, work this year is targeting more comprehensive understanding of the ground water basin to aid in design of the water supply well field.   Accordingly, four large diameter production scale wells and a basin-wide water balance will be developed in order to provide an assessment of the sustainability of the aquifers under different pumping scenarios.   Long term pump tests are planned at these wells and additional pump tests will be carried out at the six well locations drilled last season.   Ongoing monitoring of all water supply wells, in addition to six new groundwater monitoring wells, will fill out this season’s program. 

Environmental and Social Impact Assessment (ESIA)

Environmental baseline data collection and studies will continue in support of the ESIA for the project with multiple field campaigns and monitoring programs planned. Ausenco (Vector Argentina S.A.) has been engaged to compile the baseline data and lead the development of the ESIA in support of future project permitting.

Site Geotechnical Work

A series of geotechnical boreholes and test pits are planned to cover the proposed plant, waste dump, tailings and other infrastructure locations to confirm FS design criteria for ground conditions, site characterization, and foundation support.   This confirmatory program follows the investigative geotechnical work complete last field season.

Condemnation Drilling

Approximately 2,000 metres of condemnation drilling over the proposed plant, waste dump, tailings and other infrastructure locations is planned to ensure these installations do not sterilize any potential additional mineralized material that might contribute to future expansions or extension of the project’s mine life. 

Metallurgical Sampling

The Company is planning two dedicated drill holes for the collection of additional bulk metallurgical samples with a focus on confirmatory comminution and flotation variability testing. 

Josemaria Mineral Reserve Statement

Category (all domains) Tonnage Grade Contained Metal
(Mt) Cu (%) Au (g/t) Ag (g/t) CuEq (%) Cu Au Ag
(billion lbs) (million oz) (million oz)
Proven - - - - - - - -
Probable 1,008 0.29 0.21 0.92 0.41 6.5 6.5 28.8
Total 1,008 0.29 0.21 0.92 0.41 6.5 6.5 28.8

Notes to accompany Josemaria mineral reserve statement:

  1. Mineral reserves have an effective date of 20 November 2018. The Qualified Person for the estimate is Mr. Robert McCarthy, P.Eng.
  2. The mineral reserves were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Definition Standards for Mineral Resources and Reserves, as prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  3. The mineral reserves were based on a pit design which in turn aligned with an ultimate pit shell selected from a Whittle™ pit optimization exercise. Key inputs for that process are:
  •  Metal prices of $2.95/lb Cu, $1,225/oz Au; $19.00/oz Ag
  •  Mining cost of $1.80/t ore and waste at a reference elevation of 4180 m, plus cost adjustments of $0.016/t/10m bench above reference and $0.025/t/10 m bench below reference
  •  Processing cost of $3.60/t ore milled
  •  General and administration cost of $0.80/t milled
  •  Sustaining capital costs of $0.55/t
  •  Pit slope angles varying from 42° to 46°
  •  Process recoveries are based on grade. The average recovery is estimated to be 85% for Cu, 65% for Au and 66% for Ag
  •  CuEq was calculated using total payable revenue from all metals in the mine plan, converting to payable copper, and back calculating for grade based on life of mine average copper recoveries and payables
  1. Mining dilution is estimated to be 5%.
  2. Ore loss is assumed to be 1%.
  3. The mineral reserve has an economic cut-off, based on NSR, of $4.95/t for direct mill feed.
  4. There are 711 Mt of waste in the ultimate pit. The strip ratio is 0.71 (waste:ore).
  5. All figures are rounded to reflect the relative accuracy of the estimate. Totals may not sum due to rounding as required by reporting guidelines.

For details on the Mineral Reserve Estimate, refer to the Technical Report dated December 19, 2018 and titled "NI 43-101 Technical Report, Pre-feasibility Study for the Josemaria Copper-Gold Project, San Juan Province, Argentina" with an effective date of November 20, 2018 (the "Technical Report") which is available for review under the Company's profile on SEDAR ( and on the Company's website (

Qualified Persons

Technical disclosure for the Josemaria Project included in this press release, has been reviewed and approved by Bob Carmichael, P. Eng. (BC). Mr. Carmichael is Josemaria’s Vice-President of Exploration and a Qualified Person ("QP") under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Additional information regarding exploration, drilling, data verification, and the mineral resource estimate for the Josemaria project can be found in the Technical Report. The Technical Report was prepared for Josemaria Resources by SRK Consulting (Canada) ("SRK"). The Qualified Persons, as defined under NI 43-101, responsible for the Technical Report are Fionnuala Devine, P.Geo., of Merlin Geosciences, Robin Kalanchey, P.Eng., of Ausenco Engineering Canada Inc. (Canada), Gino Zandonai, MSc. (CSM), CP (RM CMC #0155), Robert McCarthy, P.Eng., of SRK Consulting (Canada), Scott Elfen, P.E., of Ausenco Engineering Canada Inc. (Canada), Neil Winkelmann, B.E. (Mining), MBA (FAusIMM), of SRK Consulting (Canada), and Bruno Bontrager, P.Eng., of Knight Piésold (Vancouver), all of whom are independent of Josemaria Resources.

Additional Information 

This information was submitted for publication, through the agency of the contact person set out below, on September 8, 2019 at 11:00 p.m. Pacific Time.

On behalf of the board of directors of Josemaria Resources,

Wojtek Wodzicki,
President and CEO,
Josemaria Resources Inc.

Cautionary Note Regarding Forward-Looking Statements

Cautionary Note Regarding Forward-Looking Statements Certain statements made and information contained herein in the news release constitutes “forward-looking information” and “forward-looking statements” within the meaning of applicable securities legislation (collectively, “forward-looking information”). The forward-looking information contained in this news release is based on information available to the Company as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Generally, this forward-looking information can frequently, but not always, be identified by use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events, conditions or results “will”, "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotations thereof. All statements other than statements of historical fact may be forward-looking statements.

Forward-looking statements contained in this news release include statements regarding the results of the PFS and the anticipated capital and operating costs, sustaining costs, net present value, internal rate of return, payback period, process capacity, average annual metal production, average process recoveries, anticipated mining and processing methods, proposed PFS production schedule and metal production profile, anticipated construction period, anticipated mine life, expected recoveries and grades, anticipated production rates, infrastructure, social and environmental impact studies, availability of labour, tax rates and commodity prices that would support development of the Josemaria Project. Information concerning mineral resource/reserve estimates and the economic analysis thereof contained in the results of the PFS are also forward-looking statements in that they reflect a prediction of the mineralization that would be encountered, and the results of mining, if a mineral deposit were developed and mined. In addition, this news release includes statements regarding the support of the Lundin Family Trusts, support of local governments to the development of mines in Argentina and statements regarding the Company’s studies and programs with respect to the Josemaria project. Although the Company believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in the Company’s periodic filings with Canadian securities regulators, including the Company's most recent Annual Information Form available under the Company's profile at In addition, these statements involve assumptions made with regard to the Company’s ability to develop the Josemaria Project and to achieve the results outlined in the PFS; the ability to raise the capital required to fund construction and development of the Josemaria Project; and the results and impact of future exploration at the Josemaria Project.

The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws. Forward-looking information is provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment. Forward-looking information is based on certain assumptions that the Company believes are reasonable, including that the current price of and demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These factors are not, and should not be construed as being, exhaustive. Although the Company has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward-looking information contained in this document is qualified by these cautionary statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.

Cautionary Note to U.S. Readers

Information concerning the mineral properties of the Company contained in this news release has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of securities laws of the United States applicable to U.S. companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission (the “SEC”). These standards differ significantly from the disclosure requirements of the SEC, and mineral reserve and mineral resource information contained herein may not be comparable to similar information disclosed by U.S. companies in accordance with the rules and regulations promulgated by the SEC currently in effect. Accordingly, information contained in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the U.S. Securities Laws. In particular, information contained in the news release regarding “Proven Mineral Reserves” and “Probable Mineral Reserves”, defined pursuant to the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on May 10, 2014CIM, differ in certain respects from the standards of the SEC.

For further information, please contact:

Michelle Fyfe, Investor Relations, Canada - +1-604-689-7842; or   
Robert Eriksson, Investor Relations, Sweden - +46 701 112 615; or

About Josemaria

Josemaria Resources Inc. is a Canadian natural resources company focused on advancing the development of its 100% owned Josemaria copper-gold project in San Juan Province, Argentina.  The Company is a reporting issuer in the Provinces of British Columbia, Alberta, Ontario and Quebec and its corporate head office is in Vancouver, BC. The Company’s shares are listed on the TSX and on Nasdaq Stockholm under the trading symbol "JOSE".