Pine Point Signs Exploration Agreements With N.W.T. First Nations
TORONTO, ONTARIO–(Sept. 12, 2017) – Pine Point Mining Limited (TSX VENTURE:ZINC) (“Pine Point” or the “Company”) is pleased to announce that is has negotiated and signed two Exploration Agreements (EA) with three First Nations groups in the Northwest Territories. The first agreement is jointly between the Deninu Kue First Nation (DKFN) and the Fort Resolution Metis Council (FRMC) (the “Coalition”) and the second exploration agreement is with the Ka╠ütl’odeeche First Nation (KFN). These First Nations groups are located near the towns of Hay River and Fort Resolution, near the previous Pine Point mine site where the Company’s property is located. These agreements establish a commitment by all parties for a mutually beneficial, co-operative and productive working relationship with respect to exploration activities within the Coalition’s and the Ka╠ütl’odeeche First Nation’s traditional territory for the potential development of the Pine Point Project.
The agreement allows for Pine Point, the Coalition and the KFN to cooperatively establish a long-term relationship based on mutual respect and openness towards developing an Impact Benefits Agreement (IBA) for eventual production. Pine Point recognizes that its proposed Exploration Program will potentially impact the First Nation’s traditional lands, their relationship with the land, water and resources, their social and cultural values, their way of life and the environment, and therefore wanted to take positive steps towards development of a respectful relationship with the First Nation. Pine Point intends to conduct its Exploration Program in a manner which is beneficial to the First Nation’s and their traditional territory.
John Key, Chief Operating Officer of the company stated, “I am extremely pleased and impressed with the desire of each of these leaders to bring development to the South Slave region that will benefit the aboriginal residents while protecting the traditional land uses and cultural quality of the Pine Point area. I look forward to working with these forward-thinking groups in the exploration and eventual development of the Pine Point in a manner that is respectful to their values and desires. I thank each of the leaders, their councils and the people of the KFN, DKFN and the FRMC for the honest and open discussions.”
About Pine Point Mining Limited
Pine Point Mining acquired a 100% interest in the Pine Point lead-zinc project in December, 2016. Since that time a positive Preliminary Economic Assessment (PEA) on the project showing a robust mining operation which, over a 13-year mine life, would have an after-tax net present value of $C210.5 million and internal rate of return of 34.5%, with a payback of 1.8 years. The study assumed a zinc price of US$1.10 per pound and a lead price of US$1.00 per pound, and used an exchange rate $C:$US of 0.75. The PEA was prepared by JDS Energy and Mining and is based on a mineral resource estimate for the Pine Point project published as a National Instrument 43-101 technical report with an effective date of April 18, 2017.
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