GMV receives updated Mexican Hat resource estimate

Jul 18, 2018

2018-07-17 10:33 ET – News Release

Mr. Ian Klassen reports

GMV ANNOUNCES REVISED MINERAL RESOURCE ESTIMATE ON ITS 100 per cent CONTROLLED MEXICAN HAT GOLD DEPOSIT, COCHISE COUNTY, ARIZONA

GMV Minerals Inc. has received an updated mineral resource estimate from Tetra Tech Canada Inc. (Dr. D.R. Webb, PhD, PGeo, PEng, and John Fox, PEng) on its 100-per-cent-controlled Mexican Hat gold property located in southeastern Arizona.

The inferred mineral resource estimate of 32,876,000 tonnes grading 0.616 gram per tonne gold (at a 0.2 gpt cut-off grade) contains 651,000 ounces of gold, which is a 22-per-cent increase of contained ounces from the previous mineral resource estimate.

The mineral resource estimate is reported as a pit-constrained resource completed using Whittle software optimization. Whittle software was used to determine and optimize the economics of open-pit mining projects. Its unique capabilities enabled the company to analyze pit designs in the context of physical, economic, and mining constraints according to specific mining, metallurgical, and other costs relative to the grade, gold price, recovery, as well as other revenue inputs. This allows for the determination of what portion of a larger block model might be reasonably recoverable. The pit-constrained results are presented in the attached table.

The pit-constrained figures are used to meet the CIM Best Practices Guidelines definition of reasonable prospects for economic extraction realistically reflecting the location, deposit scale, continuity, assumed mining method, metallurgical processes, costs and reasonable long-term metal prices appropriate for the deposit.

The mineral resource estimate benefits from exceptionally high-average metallurgical recoveries of 89.9 per cent and a favourable geometry of the resource underlying the Mexican Hat mountain. No clay issues have been identified in any of the leach tests that have been completed. The limits of the resource have not been delimited to the south, east and depth, where further work is recommended to define the size of the deposit.

Ian Klassen, GMV’s president, commented: “We are very pleased to receive a report that adds an additional 120,000 ounces of gold constrained to a model pit to our inferred mineral resource. This has come from an additional 23 drill holes, or just a 12-per-cent increase in the drilling. This works out to less than $10 (U.S.) per ounce added.”

Classification     Au cut-off (g/t)    Au grade (g/t)        Tonnes     Gold ounces      Strip ratio

Inferred                      0.20             0.616     32,876,000         651,000             2.56

Dave Webb comments: “There is ample room to improve the size of the Mexican Hat deposit. Much of the southern, western, eastern and depth boundaries are a function of limited drilling. Additionally, two of the surficial geochemical targets appear to be very compelling exploration targets, overlying favourable rocks near the Mexican Hat deposit. The Hernandez Hill target has very elevated gold pathfinder elements (gold, silver, mercury, antimony, arsenic, bismuth) in soils overlying silicified volcanic rocks. Little Hat, the twin mountain to Mexican Hat mountain, 1.3 kilometres south of Mexican Hat, has very elevated tellurium, mercury and bismuth in soils anomaly greater than 200 metres wide coming off of the eastern slope of mountain.”

John Fox, the company’s consulting metallurgical engineer, notes: “The overall recovery of 89.9 per cent for this resource grade was established from the column testing completed at McClelland Labs and the large ROM test completed at Bureau Veratis Labs. These are excellent recoveries that have shown no issues with clays.”

Tetra Tech’s James Barr reports: “With the positive results from this mineral resource estimate and initial pit optimization, the project should proceed to the preliminary economic assessment (PEA) stage to identify key operational parameters that require further work. In addition to the drilling that we’ll be recommending, environmental and engineering studies, as part of the economic assessment, should be initiated.”

Gold mineralization is hosted within strongly fractured and altered per alkaline Tertiary volcanic rocks disposed within the basin and range province that extends from Nevada through into Mexico. Mineralization is associated with alteration that is dominated by hematization, carbonatization, chloritization, sericitation and only limited silicification. Sulphides are rare to absent throughout much of the rocks (even at its deepest levels).

Nine mineralization solids were created using the Geovia Gems software to delimit the unique mineralized domains. The solids constrained drill hole intercepts that were composited into uniform 1.5-metre lengths, with all unsampled values assigned zero grade. Rotated anisotropic search ellipsoids varying from 35 metres to 50 metres in the long dimension and 15 metres to 22 metres in the short dimension were used for first pass estimations requiring a minimum of eight and a maximum of 16 composites to generate a resource block, with no more than four composites allowed from any one drill hole. Second and third pass estimates increased the search ellipsoid dimensions by 50 per cent each expansion, while the minimum number of composites were reduced to five and then four on the second and third passes, respectively. Inverse distance cubed estimation techniques were selected. All high-grade gold values were capped to 32 gpt.

Dr. D.R. Webb, PhD, PGeo, PEng, is the qualified person for this release within the meaning of National Instrument 43-101 and has reviewed the technical content of this release and has approved its content.

About GMV Minerals Inc.

GMV Minerals is a publicly traded exploration company focused on developing precious metal assets in Arizona. GMV Minerals, through its 100-per-cent-owned subsidiary, has a 100-per-cent interest in a mining property lease commonly referred to as the Mexican Hat project located in Cochise county, Arizona. The project was initially explored by Placer Dome (USA) in the late 1980s to early 1990s. GMV Minerals is focused on developing the asset and realizing the full mineral potential of the property through near-term gold production.

We seek Safe Harbor.

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