Montreal, Quebec – January 22, 2015: Aurvista Gold Corporation (“Aurvista” or the “Company”) (TSX-V: AVA, OTC: ARVSF) is pleased to announce the Company filed the Preliminary Economic Assessment (the “PEA”) technical report titled “Technical Report and Preliminary Economic Assessment on the Douay West Gold Property, Douay Township, Northwestern Quebec, Canada, NI-43-101 and 43-101F1, by E. Puritch, P.Eng., C. Duke, P.Eng., K. Rodgers, P.Eng., J. L. Pearson, P.Eng., A. Hayden, P.Eng., G. Watts, P.Eng., (of P&E Mining Consultants Inc. of Brampton, Ontario) and D. Gourde P.Eng., of InnovExplo Inc. (of Val-d’Or, Quebec) (the “Report”) on SEDAR at www.sedar.com. Interested parties can also view or retrieve a full copy of the Report on the Company website. A technical summary of the Report was previously released on December 9, 2014.
The Company would like to highlight that the environmental permitting process will be engaged in 2015 with federal and provincial authorities following the results of an Environmental Baseline Study (the “EBS”). The present report clarifies the regulations framework for the Douay West Zone Project. The EBS shows that no issue is expected with the development of mining activities in this area. The Canadian Environmental Assessment Agency will determine if the project will be subject to a federal EIA.
Required works are ongoing by the Company in order to complete all requirements from the Ministère de l’Énergie et des Ressources naturelles for the Mining Lease.
Aurvista remains focussed on the engineering processes to assess the potential of bringing the Douay West Project into production. The Company continues to explore the potential of an open pit and underground mining scenario. The Company anticipates that it will receive the results of engineering work that focused on the overburden and rock slope designs for the open pit, the hydrogeology investigation, and a geochemistry program some time later this quarter. In support of this work and based on the PEA recommendation to complete a trade-off study that considers an underground only scenario versus an open pit and underground scenario the Company plans to complete an infill drilling campaign that would lead to a revised Mineral Resource estimation sometime in 2015. It is intended that this work would lead into the prescribed trade-off study that would set the scope of work for a Pre-Feasibility Study.
The Company would also like to report that it has received the results of a benchtop amenability study that evaluated the potential of the Douay West Project gold mineralization to some form of on-site pre-concentration. The study used four potential sorting solutions that included Visible Spectrum, Dual Energy X-Ray Transmission, Near Infrared Spectroscopy and Electromagnetic/Conductivity. The test results indicate that the mineralization at Douay West is not amenable to any of the forms of pre-concentration tested. The Company completed this study to assess the potential of increasing the grade and reducing the tonnage of material that would be shipped to potential toll milling facilities. The PEA did not consider any forms of pre-concentration and as such is unchanged by the results of this study.
The technical contents of this press release have been reviewed and approved by Mr. Chris Sharpe, P. Eng., Vice President Engineering for Aurvista, a Qualified Person under National Instrument 43-101.
About Aurvista Gold
Aurvista Gold Corporation is a junior gold exploration and development company. Aurvista's only asset is the Douay Gold Project, consisting of 221 wholly owned claims totaling approximately 11,430 hectares. The Douay Project’s North West Zone has 32 designated claims for a total of 1,193 hectares and is in a Joint Venture agreement with SOQUEM. The Douay Project is located along the Casa Berardi Fault part of the Casa Berardi Deformation Zone in northern Quebec.
As of 2012, the Douay Gold Project contains a NI 43-101 Mineral Resource of 114,652,000 tonnes at 0.75 g/t gold (2.8 million ounces of gold) in the Inferred category and 2,689,000 tonnes at 2.76 g/t gold (238,400 ounces of gold) in the Indicated category, at a cut-off of 0.3 g/t gold. The Douay West Zone Resources are included in this property wide estimate.
The Douay West zone contains a NI 43-101 Mineral Resource of 1,413,000 tonnes at 1.65 g/t gold (74,913 ounces of gold) in the Inferred category and 2,558,000 tonnes at 2.77 g/t gold (227,982 ounces of gold) in the Indicated category, at a cut-off of 0.3 g/t gold.
The company recently completed a Preliminary Economic Assessment (“PEA”) of the Douay West Zone. The PEA considers both open pit and underground production options for the advancement of the Project. The study economics show a pre-tax Net Present Value (“NPV”) of $25.0 million at a discount rate of 5% and post-tax NPV(5%) of $16.6 million using an approximate two-year average gold price of US$1,350 per ounce and an exchange rate of 1.00 $C=0.95 US$. The pre-tax and post-tax internal rates of return (“IRR”) for the project are 55% and 40% respectively. The PEA mine plan and economic model include the use of Inferred Mineral Resources which are considered speculative geologically to have any economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the PEA will be realized.
Details of the Douay Gold Project can be viewed on the Company’s website at www.aurvistagold.com
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This news release may contain forward-looking statements based on assumptions, uncertainties and management’s best estimate of future events. Actual events or results could differ materially from the Company’s expectations and projections. Investors are cautioned that forward-looking statements involve risks and uncertainties. Accordingly, readers should not place undue reliance on forward-looking statements. When used herein, words such as “anticipate”, “will”, “intend” and similar expressions are intended to identify forward-looking statements. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Aurvista Gold Corporation’s filings with Canadian securities regulators available on www.sedar.com or the Company’s website at www.aurvistagold.com.
For further information please contact
Jean Lafleur, M. Sc., P. Geo.
President and CEO
Cell +1 514 975 3633
Facsimile +1 416 504 4129
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