VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 9, 2013) - Kazax Minerals Inc. (TSX VENTURE:KZX) ("Kazax" or the "Company"). As a result of a review by the British Columbia Securities Commission (the "BCSC"), Kazax is issuing the following news release to clarify our disclosure. Based on the review completed by the BCSC, certain information provided in a corporate presentation entitled "LOMO Project Briefing, August 2012 - AGM" which was posted on the Company's website (the "Presentation"), in a corporate fact sheet which was posted on the Company's website (the "Fact Sheet"), in a corporate video which was posted on the Company's website (the "Video"), in disclosure relating to the Company and investor materials contained on the Company's website, in the Company's News release dated January 14, 2013 (the "NR") and in the technical report entitled "Independent Technical Report on the Lomonosovsky Iron Project, Republic of Kazakhstan", a copy of which was filed under the Company's profile at www.sedar.com on January 14, 2013 (the "Report") was found to be unsupportable and in contravention of National Instrument 43-101. The Company has removed the Presentation, Fact Sheet and Video from its website, and clarifies the disclosure as follows:
The Presentation, which was prepared in connection with the Company's August 14, 2012 Annual General Meeting, disclosed "Reserves at 560 MT" with a grade of 28.83 % iron, which numbers exceeded the then available resource estimates contained in the Company's then current Technical Report for the Lomonosovsky Iron Project (the "Property") dated April 12, 2012. The presentation also disclosed that 270 Mt of the reserves were "economically recoverable ore", and contained year by year mining schedules including annual qualities of "ore". As the term "ore" implies a level of technical feasibility and economic viability, the term is required to be utilized only in the context of mineral reserves and use of the term in relation to the Company's estimated mineral resources is incorrect. For clarity purposes, the Company is not treating the estimates disclosed in the Presentation or the Report as mineral reserves. The Company's Report and its revised technical report dated May 1, 2013 which was filed under the Company's profile on SEDAR on May 9, 2013 only estimates mineral resources, as tabulated in a following section of this news release, and does not support disclosure of a mineral reserve or any results of economic analysis. The estimates contained in the Presentation are not NI 43-101 compliant and these estimates should not be relied upon and are being retracted by the Company.
In addition, the Presentation contained resource estimates in respect of the LIDI Gold property, the Zhaltyrbulak property, the Zhilandy property, the ET Led/Zinc property, the Kizilespe property, the Druzhnoye property, and the Rodnikovoye property. For clarity purposes, these estimates are not NI 43-101 compliant and should not be relied upon and are being retracted by the Company.
The Fact Sheet disclosed an increase in estimates in respect of the Property to "550 + MT at a 20% COG" at 35% Fe, referred to a "Bankable Feasibility Study" and included disclosure of estimated mine life and estimated annual production rates and refers to estimates as an "ore body", all of which may have incorrectly implied to represent a first time disclosure of a mineral reserve. Further the disclosure of estimates contained in the Fact Sheet omit classifications and grades of resources, contrary to NI 43-101. For clarity purposes, the Company is not treating the estimates disclosed in the Fact Sheet as mineral reserves. The estimates and results of economic analysis contained in the Fact Sheet are not NI 43-101 compliant and should not be relied upon and are being retracted by the Company.
The Company also applied the term "ore" to the Company's estimated mineral resources in the NR and discussed completing a feasibility study, seeking approvals to commence operations, commencing operations in mid 2013 and referred to detailed "commercial discussions" planned for the first quarter of 2013, all of which may have incorrectly implied that the Company has a positive mining study that supports a production decision based on economic viability. For clarity purposes, the Company has not made a production decision in respect of the Property, has not obtained a positive mining study supporting the economic viability of the Property and has not yet commenced operations. The Company is not treating current mineral resources contained in the Report as reserves and retracts applying the term "ore" to the Property in the disclosure contained in the NR.
The Video disclosed similar information implying a completed positive economic analysis on the Property. For clarity purposes, the Company has not made a production decision in respect of the Property, has not obtained a positive mining study supporting the economic viability of the Property or fast tracking commercial production on the Property.
In addition, the Company's website contained a table that disclosed a "Total Resource" of 559,691,560 tonnes grading 28.83% Fe. This disclosure omitted classifications and grades of resources, contrary to NI 43-101. For clarity purposes, this estimate is not NI 43-101 compliant and therefore the Company is not able to prepare a new technical report supporting the disclosed increase in mineral resources. The estimate therefore should not be relied upon and is being retracted by the Company. Further, the Company has revised all disclosure contained on its website and in investor materials to remove reference to the terms "ore", "ore body" and similar terms.
For clarity purposes, the Report provides a current resource estimate for the Property as at December 2012 as outlined below, above a cut-off grade of 20% Fe.
|Mineral Resource Estimate for Combined Lomonosovsky, |
December 2012, cut-off 20% Fe
|Class||M Tonnes||Fe %||P %||S %||FeM %|
|Measured & Indicated||333.5||36.6||0.2||3.5||27.6|
The Report does not contain any estimate of mineral reserves and the Company is not treating any estimate of resources as reserves. However, the BCSC has noted that the term "ore" is frequently used throughout the Report, implying that the estimates provided in the report have economic viability. As the Company does not have a positive mining study necessary to demonstrate economic viability, use of the term "ore" in respect of the Property is not appropriate and as a result, the Report has been revised to remove such disclosures. A copy of the revised Report dated May 1, 2013, can be found under the Company's profile at www.sedar.com.
Finally, the Company would like to clarify for investors it plans going forward in respect of the Property. The Company has previously disclosed that it was the Company's goal to commence mining operations in 2013. As noted above, the Company has not made a production decision and does not yet have a positive mining study that would support making such a decision.
It is currently management's intention to work towards securing a positive mining study demonstrating the technical feasibility and economic viability of the Property. The Company's ability to complete a mining study and progress to mining operations on the Property is subject to a number of factors including market conditions and the ability of the Company to secure sufficient financing to fund proposed operations and the completion of a mining study.
Mr. Andrew Vigar, BCppSc, FAusIMM, MSEG, of Mining Associates Limited, a Qualified Person as defined by NI 43-101, prepared the scientific and technical information in this news release. Mr. Vigar is an independent technical consultant to the Company.
About the Company
Kazax Minerals Inc. is a mining exploration and development company focusing on iron. Other world‐wide target acquisitions are being sought. Kazax aims to be a significant mid‐tier international mine exploration and development company in the iron sector.
For additional information readers are invited to review additional corporate and property information available on SEDAR at www.sedar.com.
ON BEHALF OF THE BOARD
David Savage, President & CEO
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "schedule", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the Company's future operations and prospects. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning equipment and crew availability, and financial capability. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the Company's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, commodities pricing and assumptions, projections concerning estimated mineral resources, the business of the Company may suffer as a result of uncertainty surrounding the commodities markets; the ability to maintain existing mining leases and rights and the ability obtain new mining leases, rights and permits; governmental and regulatory approvals, the Company's ability to continue to execute its growth strategies; the Company's ability to secure additional financing; the Company may be adversely affected by other economic, business, and/or competitive factors and general economic conditions. Additional information on these and other factors is available in continuous disclosure materials filed by the Company with Canadian securities regulators. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.