Pacific Wildcat Clarifies Technical Disclosure
August 2, 2013 (Source: Marketwire) — Pacific Wildcat Resources Corp. (TSX VENTURE:PAW) (“PAW” or the “Company“) announces that as a result of a review by the British Columbia Securities Commission (the “BCSC”) we are issuing the following news release to clarify and retract certain of our technical disclosure which was disclosed prior to the Company’s press release dated July 29, 2013 (the “July 2013 News Release”).
- The Corporate Presentation titled “A Strategic Minerals Company” dated June 21, 2013 (the “Presentation”), the Company’s website and the Rare Earth Elements Newsletter Research Report (the “Newsletter”) dated March 19, 2012; an article from the East African Business Daily Newspaper (the “African News Article”) dated April 11, 2012 entitled “Sourcing prices of rare earth minerals rally investors to scale up prospecting”; and an article distributed by the Chinese Xinhua News Agency (the “Chinese News Article”) dated July 19, 2013 entitled “Mining firm confirms mineral deposits in Coastal Kenya”, which were linked to the Company’s website incorrectly refer to total rare earth oxide as a current resource or reserve estimate, and includes quantity and fixed grades with respect to same. The Company wishes to retract all such disclosure and all such references and documents have been removed from the Company’s website. The July 2013 News Release, announced a Rare Earth resource estimate of 48.7 million tonnes at 4.40% Total Rare Earth Oxide “TREO” (Indicated Classification) plus 110.7 million tonnes at 3.61% TREO (inferred Classification) (>1.0% TREO cut off). The Company wishes to clarify that mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated mineral resource of the Mrima Hill Project will be converted into mineral reserves.
- The Kenyan News Article, the Chinese News Article and an article in the African Journalist dated July 21, 2013 (the “African Journalist Article”) entitled “Canadian Mining Group Discovers Large Deposit of Rare Earth Metals in Kenya” which were linked to the Company’s website reference the gross in-situ metal value of niobium and rare earths in respect of the Mrima Hill Project, contrary to NI 43-101 requirements, which prohibit the disclosure of the gross value of metal or metals in a deposit. The Company retracts all disclosure regarding the gross value of in-situ metals, and these articles have been removed from the Company’s website. The Company cautions that any disclosure of the gross in-situ value of a mineral deposit is meaningless and may be misleading, because it fails to take into consideration operating and capital costs, recoveries, smelter costs and other factors relating to the potential mining, extraction and recovery of minerals.
- The Presentation, the Newsletter, the African News Article and the Chinese News Article which were linked to the Company’s website and the Company’s press release dated July 25, 2013 disclosed that “Inaugural NI 43-101 Compliant Rare Earth Resource commenced targeting 30 to 40 Mt @ 4 to 5% Total Rare Earth Oxide (“TREO”), and disclosed quantity and grade ranges as an exploration target without providing the cautionary language required by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Such disclosure by the Company of a potential rare earths exploration target was not in compliance with NI 43-101. The Presentation, the Newsletter, the African News Article and the Chinese News Article linked to the Company’s website with respect to same have been removed from the Company’s website. The July 2013 News Release announced an independent Rare Earth mineral resource estimate of 48.7 million tonnes at 4.40% Total Rare Earth Oxide “TREO” (Indicated Classification) plus 110.7 million tonnes at 3.61% TREO (inferred Classification) (>1.0% TREO cut off).
- The Presentation and the Newsletter made reference to a current inferred resource estimate of 12 million tonnes grading 1.2% Nb2O5 in a high-grade core of the deposit, and disclosed this as a focus of “potential development studies”. The Company wishes to clarify that such disclosure was not intended to establish a new base-case resource for the purpose of future economic analysis, and the Presentation should have disclosed that a portion of the resource has higher grade niobium, with 12 million tonnes of inferred mineralization grading at 1.21% Nb2O5. The July 2013 News Release announced that the inferred mineral resource contained in the Company’s independent technical report titled “Initial Niobium Resource Estimate – Mrima Hill Rare Earth/Niobium Project in Southern Kenya” dated August 15, 2011 as revised on September 30, 2011 has been superseded with a high grade Indicated Resource estimate of5.8 million tonnes at 1.41% Nb2O5 plus Inferred Mineral Resource estimate of 17.5 million tonnes at 1.41% Nb2O5 (>1% Nb2O5 cut off). The Company anticipates that a new technical report (the “2013 Report”) to support the updated mineral resource on the property will be filed on SEDAR on or before September 12, 2013.
- The Chinese News Article and an article in the Daily Nation Newspaper, Kenya dated May 12, 2012 entitled “SA firm to invest Sh200 million to explore minerals in Kwale” (the “Kenyan News Article”) which were linked to the Company’s website used the term “ore” and disclose planned mine development which implies positive economics. The use of such term and the making of such statements are misleading as mineral reserves have not been reported and the Company has not yet completed a preliminary economic assessment (“PEA”) or mining study on the Mrima Hill Project. The Chinese News Article and the Kenyan News Article linked to the Company’s website have been removed. The Company’s July 2013 News Release announces that the Company is planning to rapidly advance metallurgical work and anticipates completing an inaugural PEA for the Mrima Hill Project by the end of 2013.
- The Company confirms it is completing a comprehensive update of its website over the coming seven days.
- The Company intends to file an independent technical report to support the updated increase in mineral resources on the Mrima Hill Project as announced in it press release dated July 29, 2013 on or before September 12, 2013, as required under NI 43-101.
The July 2013 News Release disclosed a zone of High Grade Niobium and Total Rare Earth Oxides on the Mrima Hill Project of 22.6 million tonnes at 1.20% Nb2O5 and 5.56% TREO which disclosure was not compliant with NI 43-101 as the required mineral resource classifications were not provided. The Company restates the combined estimate as follows. The current mineral resource estimate includes a combined zone of high grade Niobium and Total Rare Earth Oxides consisting of (indicated classification) 5.8 million tonnes at 1.11% Nb2O5 (>0.7% Nb2O5 cut off) and 5.6% TREO (>4.1% TREO cut off) plus (inferred classification) 16.7 million tonnes consisting of 1.22% Nb2O5 (>0.7% Nb2O5 cut off) and 5.53% TREO (>4.1% TREO cut off).
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The scientific mineral resource estimate contained in the July 2013 News Release was completed by Mr. Benjamin C. Pollard, BSc – Mineral Exploration and Mine Geology. MAIG, principal geologist of BMGS Perth Pty Ltd (BMGS). Mr. Pollard is an independent Qualified Person under NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators, and Mr. Pollard has verified the data disclosed in this release. Mr. Pollard will prepare the NI 43-101 report, which will be filed on SEDAR on or before September 12, 2013.
ON BEHALF OF THE BOARD OF DIRECTORS OF PACIFIC WILDCAT RESOURCES CORP.
Darren Townsend, President & CEO
About Pacific Wildcat Resources Corp. – Pacific Wildcat is a TSX Venture Exchange listed Canadian mineral exploration company having the trading symbol “PAW“. PAW owns 100% of Stirling Capital Ltd and Cortec Pty Ltd, two UK companies that between them own a 70% interest in Cortec Mining Kenya Limited, a Kenyan company which has the mining rights to the Mrima Hill Niobium and Rare Earth Project in Kenya. In July 2013 the Company completed an updated independent Niobium Resource estimate for 47.8 million tonnes at 0.66% Nb2O5 (Indicated Classification) plus 94.4 million tonnes at 0.73% Nb2O5 (Inferred Classification) at a 0.2% Nb2O5 cut-off for a total of 2.22 billion pounds contained Nb2O5. In July 2013 the Company completed an inaugural independent Total Rare Earth Resource estimate for 48.7 million tonnes at 4.44% TREO (Indicated Classification) plus 110.7 million tonnes at 3.61% TREO (Inferred Classification) at a 1% TREO cut-off for a total of 6.14 million tonnes of contained TREO. For information about Pacific Wildcat Resources Corp. and its development and exploration activities shareholders and other interested parties are invited to visit the company’s website at www.pacificwildcat.com.
Investors are cautioned that trading in the securities of Pacific Wildcat Resources Corp. should be considered highly speculative. The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary note: This press release contains forward looking statements, particularly those regarding cash flow, capital expenditures, the completion of certain financings, work programs, the estimation of mineral resources and the Company’s plans with respect to the exploration and development of its projects and its investment plans. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. In particular, there can be no assurance that the Private Placement will complete. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. There can be no assurance that the Company will be able to obtain all the permits that are required in order to commence mining operations at the Mrima Hill Project.
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