Altair Resources Announces Decision to Spin-off of Rights to Acquire Two Gold Producing Properties in Kazakhstan with 2.46 Million Ozs of Gold
Vancouver, British Columbia – December 20, 2021: ALTAIR RESOURCES INC. (“ALTAIR” or the Company”) (TSX-V: AVX; Germany FRA: 90A; ISIN: CA02137W2004; WKN: WKN A2ALMP) – Altair Resources Inc.’s board of directors has approved the spinoff of its rights to acquire the two producing gold assets in Kazakhstan, which were the subject of its press releases dated July 12, Aug. 4 and Aug. 26, 2021. The spinoff is expected to take the form of a vend-in of those rights into a Canadian publicly listed corporation in exchange for stock of the new entity. Shares of the new entity received in the vend-in would be allocated in accordance with certain transaction costs, with the bulk of the shares being distributed on a pro rata basis to shareholders of Altair of record as of a date to be announced in the near future.
The transaction will leave in Altair its project rights in the Simon property in Nevada and its rights to acquire the Marbera project in Burkina Faso. Altair’s shareholders would, as a result, continue to have shares reflecting ownership of the rights in Nevada and Burkina Faso in addition to shares of the new entity, representing ownership interests in the rights in Kazakhstan. Altair also expects that the Altair shareholders’ aggregate share position in the new entity would constitute a controlling interest and the vast majority of the shares of the new entity.
Altair is now in the process of identifying the most effective manner to accomplish the spinoff and determine a suitable entity as a counterparty. While no assurance can be given as to the success of Altair’s plans to complete the vend-in, Altair is confident that a beneficial arrangement for its shareholders can be structured effectively with a suitable entity and closed in the near future.
The two producing gold properties in eastern and central Kazakhstan contain a total historic resource of 2,463,700 ounces of gold, of which 1,923,900 ounces are Joint Ore Reserves Committee compliant. Current aggregate gold production at the two properties is approximately 21,000 ounces of gold per year.
George S. Young, chairman and chief executive officer, stated: “We are extremely pleased that our board of directors has determined to provide a way for our shareholders to continue to have a commanding stake in the value being created in Kazakhstan while we focus on developing the Marbera asset in Burkina Faso and explore the Simon property. A new entity with an expanded management team focusing solely on Kazakhstan will have increased opportunities for success. At the same time, our Altair team along with the staffing we are planning to add will allow Altair to focus on the advancement of Marbera and Simon and look for opportunities to increase our holdings in those areas. We have advanced in our discussions with providers of strategic acquisition capital and potential partners for the acquisition and the further development of the resources in all of the properties. Our plan continues to be the implementation of an aggressive acquisition and development strategy to transform Altair from a junior exploration company to a mid-tier mining company as rapidly as possible. We plan to have our shareholders benefit from the value creation we achieve within Altair, as well as within any company to which we may spin off assets from time to time.”
Information of a technical and scientific nature that forms the basis of the disclosure in this press release has been prepared and approved by Dorian L. (Dusty) Nicol, a qualified person, under National Instrument 43-101, and vice-president, exploration, of Altair Resources.
About Altair Resources Inc.
Altair Resources’ (TSX.V: AVX) primary focus is developing the Wadaradoo gold deposit, Burkina Faso’s newest gold mine development opportunity. Wadaradoo has a historical resource of 1.388 million ounces of gold at a grade of 0.95 g/t (0.5 gram cut off). An updated 43-101 compliant resource estimate is to be completed in early 2022 and a PEA and Feasability study will commence immediately after.
Burkina Faso is 2nd in gold production in West Africa with four major mining companies operating successfully and 15 gold mines that have reached production. In addition, Altair shareholders own an option to acquire two producing gold mines in Kazakhstan.
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.
This press release contains forward-looking statements with respect to the Company. By their nature, forward-looking statements are subject to a variety of factors that could cause actual results to differ materially from the results suggested by the forward-looking statements. In addition, the forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate, that the management’s assumptions may not be correct and that actual results may differ materially from such forward-looking statements. Accordingly, readers should not place undue reliance on the forward-looking statements.
Generally forward-looking statements can be identified by the use of terminology such as “anticipate”, “will”, “expect”, “may”, “continue”, “could”, “estimate”, “forecast”, “plan”, “potential” and similar expressions. Forward-looking statements contained in this press release may include, but are not limited to, the completion of the private placement and the Company receiving regulatory approval to the partial revocation order. These forward-looking statements are based on a number of assumptions which may prove to be incorrect including, but not limited to, the Company receiving regulatory approval to the private placement and the partial revocation order application.
The forward-looking statements contained in this press release are made as of the date hereof or the dates specifically referenced in this press release, where applicable. Except as required by law, the Company does not undertake any obligation to update publicly or to revise any forward-looking statements that are contained or incorporated in this press release. All forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
The Eastern Kazakhstan property comprises three projects. The following is a summary of the JORC-compliant historical resource estimate for each:
The international consulting firm SRK has completed a JORC-compliant Mineral Resource Estimate (MRE) for the deposits of the V-B district, summarized below (SRK 2020 and SRK 2021).
The Vasilyevskoe Mineral Resource Statement as of 31 August 2020 is presented below. The open pit resources are stated at a cut-off grade (COG) of 0.25 g/t Au, while the underground resources are stated at a COG of 0 g/t Au within optimized stopes. The optimized stopes incorporate a minimum mining width of 1 m and cut-off grade of 0.53 g/t Au.
- Open Pit:
- Indicated: 14.2 Mt at an average grade of 1.60 g/t Au for 732 koz of contained gold
- Inferred: 8 Mt at an average grade of 1 g/t Au for 260 koz of contained gold
- Indicated: 0.9 Mt an average grade of 0.92 g/t Au for 27 koz of contained gold
- Inferred: 13.5 Mt at an average grade of 1.26 g/t Au for 547 koz of contained gold
The Boke Mineral Resource Statement as of 31st December 2020 is presented below. The open pit Resource is reported at a COG of 0.25 g/t Au.
- Indicated: 1,664 Kt at an average grade of 1.00 g/t Au for 53.3 koz of contained gold
- Inferred: 545 Kt at an average grade of 0.72 g/t Au for 12.6 koz of contained gold
The Tokum Mineral Resource Statement (“MRS”) as of 31December 2020 is presented below.
The open pit Mineral Resource is reported at a cut-off grade (“COG”) of 0.25 g/t Au, while the underground Mineral Resource is reported within optimized stopes (exceeding 0.59g/t over at least 1m width).
- Open pit:
- Indicated: 3,507kt at an average grade of 1.53 g/t Au for 5.4t (173koz) of contained gold
- Inferred: 63kt at an average grade of 1.21 g/t Au for 0.1t (2 koz) of contained gold
- Indicated: 642kt an average grade of 1.48g/t Au for 1.0t (31koz) of contained gold
- Inferred: 1,838kt at an average grade of 1.45g/t Au for 2.7t (86koz) of contained gold
Current oxide mining is being carried out on the Vasilyevskoe deposit to 40m, which is being processed using conventional heap leach technology.
Current annual production is 12,000 oz Au, which may be increased to 30,000 oz Au pa with mining of additional oxide deposits in the “A” license.
Exploration potential in all three projects is very high, with potential for adding of additional ounces at both target areas in strong alteration zones along major controlling structures previously delineated and ready to be soil sampled and drilled.
Highlights at the Central Kazakhstan property (the “Z” gold property, also known as the “Z” deposit), include the following:
- The “Z” deposit has a historic (GKZ) resource of 539,800 ounces of gold at a grade of 1.08 g/t Au @ 0.3g/t COG.
- “Z” is an operating oxide heap leach Au mine, producing 9,000 oz Au pa.
- The mineralization being processed at “Z” includes significant free gold with excellent metallurgical properties, currently yielding 70% Au recovery in current test operations in the oxide zone using a gravity circuit, in addition to the heap leach processing
- Exploration potential at “Z” is believed to be excellent, as the existing initial test mining operations may only be a small part of a much larger porphyry stockwork system, with Au & Cu geochemical anomalies defined in 2020, east of both existing open cut pits covering areas of 1000m x 800m each, ready to be drill tested to increase the oxide Au resource.
- A large target exists for a 3D IP survey to locate a possible deeper Cu-Au porphyry stockwork mineralization at depth, for a potential future open cut sulphide operation.
QA/QC work is incomplete for the sulphide zone at “C” and therefore additional drilling must be completed to get to a NI 43-101 compliant resource in that zone. However, significant metallurgical testing completed on the sulphide ore suggests to Altair that there is a clear path to production.
Both the Eastern and Central Kazakhstan properties are currently recovering gold using heap leach technology, with gravity recovery also occurring on the Central property. The acquisition includes the infrastructure and capital facilities of the two gold operations that are both currently delivering gold Doré bars from their respective oxide zones through heap leaching, gravity concentration, and further processing.
All gold is sold at the LBMA spot price to Samyruk Kazyna, the Sovereign Wealth Fund of Kazakhstan. Altair’s assessment, through its technical consultant, Core Mining Group Ltd, is that these projects have the potential to generate robust cash flows with additional equipment upgrades and Western know-how.
Under the terms of the Agreement, the total consideration consists of:
- USD 75 million on the execution of the proposed transaction, at which time 70% of the ownership shares shall be transferred to Altair Resources Inc.
- USD 15.5 million one year from the execution of the proposed transaction, at which time a further 15% of the ownership shares shall be transferred to Altair Resources Inc.
- USD 15.5 million two years from the execution of the proposed transaction, at which time the remaining ownership shares shall be transferred to Altair Resources Inc.
The in-situ acquisition cost of this gold producing asset is $37 per ounce.
Altair Resources Inc. is in negotiations with a London Private Equity firm for debt financing.
Altair has identified a legal team in Kazakhstan for the legal due diligence, and along with its technical and financial teams, a full due diligence investigation will commence immediately.