Resource World Magazine

a u g u s t / s e p t e m b e r 2 0 1 6 www.resourceworld.com 37 miNiNg starcore int'l mines proDucing Doré bars Starcore International Mines Ltd. [SAM-TSX] reported its pre-production results from the Altiplano Plant located in Matehuala, Mexico. The company previ- ously reported on February 15, 2016 that it had poured its first doré bar, weighing in at 21.131 kg., from purchased precipitates (see news release dated February 29, 2016). Since then, the plant has been receiv- ing concentrate deliveries to test the full facilities of the plant and procedures. As of mid-June, the company has processed over 90 tonnes of concentrate purchased from three different suppliers to produce 40.16 kg of metal doré bars, which included 2.01 kg of gold and 38.15 kg of silver. "We have proven the ability to process various types of concentrate and expect to do this profitably with a consistent sup- ply of concentrates and production," said Robert Eadie, President. "Having tested concentrates received from 14 different suppliers, we are currently negotiating concentrate purchase agreements for the best quality concentrate that will bring a consistent supply. As stated before, we see the Altiplano plant as a syner- gistic cash-flow producing arm of the company, growing our asset base for our shareholders." The doré bars were shipped to a refin- ery and sold at spot rates for gold and silver at the time of shipment. All proceeds of sales have been capitalized to the devel- opment costs of the facility, in accordance with accounting standards, until such time as Altiplano is receiving consistent supply of concentrates and is achieving consistent operating results. Located within a historic mining dis- trict in an area that is home to numerous medium-sized mining operations, the Altiplano plant is a newly designed facility that has the best equipment and operations team to offer an accessible leaching process to miners and concentrate producers. Starcore is engaged in exploring, extracting and processing gold and sil- ver through its wholly-owned subsidiary, Compañia Minera Peña de Bernal, S.A. de C.V., which owns the San Martin Mine in Queretaro, Mexico. Starcore has also completed drill hole 31-79 in Area 31 at the San Martin Mine. The hole intercepted a zone of limestone breccia followed by manto mineralization. High-grade manto mineralization with vis- ible gold was recovered between 48.65 and 58.9 metres. The weighted average grade of this 10.25-metre wide intercept is 65.17 g/t gold with 128.26 g/t silver. Prior to the high-grade intercept, the limestone breccia contained elevated silver values over 10 metres including a 2-metre section grading 1.60 g/t gold and 105 g/t silver between 42.25 and 44.25 metres. probe metals completes aDventure golD merger Probe Metals Inc. [PRB-TSXV] and Adventure Gold Inc. reported completion of the plan of arrangement under which Probe Metals has acquired all of the out- standing common shares of Adventure Gold to create a well-funded Québec and Ontario focused gold explorer and developer. Jamie Sokalsky, Chairman of Probe, said, "We would like to welcome both shareholders and employees of Adventure Gold to Probe Metals. With the combi- nation of a strategic land position and strong balance sheet, the company is well positioned to continue adding value for shareholders. This acquisition is consistent with our strategy to acquire, explore and develop highly prospective gold properties and we are excited about the significant potential for additional discoveries." All the issued and outstanding com- mon shares of Adventure were acquired by Probe for consideration of 0.39 of a common share of Probe for each common share of Adventure. In connection with the completion of the merger, Probe issued 31,585,765 to the former shareholders of Adventure Gold. Marco Gagnon, former President and CEO of Adventure Gold, has been appointed to Probe's management as Executive Vice President and as a director of Probe, effective immediately. Gagnon is a senior mining exploration professional with 25 years of experience. He graduated in geology from Université du Québec à Chicoutimi. Probe also completed a private place- ment financing which raised gross proceeds of $2,904,000. The offering con- sisted of the sale of 4,440,000 common shares at a price of $0.66 per Share. Goldcorp Inc. [G-TSX; GG-NYSE] purchased all 4,400,000 shares, and now beneficially owns and controls 10,577,846 common shares of Probe which represents approximately 15% of Probe's issued and outstanding common shares. Probe also granted Goldcorp the right to maintain its pro rata ownership percentage during future financings and the right (but not the obligation) to participate in any future equity financings to the extent required to allow Goldcorp to increase its equity own- ership interest in Probe to a maximum of 19.9% of the issued and outstanding com- mon shares. Such rights shall extinguish if Goldcorp ceases to beneficially own at least 7.5% of the issued and outstanding common shares of Probe (on an undiluted basis). n

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