18 April 2017
TORONTO, ONTARIO (April 18, 2017) - Darnley Bay Resources Limited (TSXV:DBL) ("Darnley Bay" or the "Company") is pleased to announce the results of an independent Preliminary Economic Assessment ("PEA") of the 100% owned Pine Point Project ("Pine Point" or the "Project") located near Hay River, Northwest Territories.
The PEA shows a robust economic return with a relatively low capital cost compared to similar projects and an after-tax payback of only 1.8 years. The PEA was prepared under the direction of JDS Energy & Mining Inc. ("JDS"), an industry-leading, international engineering firm, with extensive experience in planning, construction and operation of mining projects in the Canadian north. The study is being summarized into a Technical Report (the "Darnley Technical Report") to be filed on SEDAR in accordance with National Instrument 43-101 ("NI 43-101") within 45 days. The PEA examined several development scenarios and settled on a mining plan where a number of open pit deposits would be developed using dense media separation plants followed by traditional grinding and flotation to upgrade mineralized material into lead & zinc concentrates, similar to the methods employed by Cominco when the mine was in production in the past. The study confirms that the Project has robust economics at the assumed parameters.
Darnley Bay President and Chief Executive Officer Jamie Levy remarked that, "This Preliminary Economic Assessment supports that management’s confidence in this project was well-placed when it was purchased this past December. What is also very encouraging is that there are multiple opportunities, including underground mining, to enhance the economics and extend the project life. The Company plans to initiate a feasibility study in the near future while drilling to add additional resources to the mine plan.”