Vancouver, British Columbia--(Newsfile Corp. - November 9, 2015) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company")announces that it has filed an amended 43-101 technical report. The amended report has been filed to support an increase in resource estimates for the CuMo Project, as detailed in the Company's news release dated August 18, 2015. As disclosed on October 16, 2015, The British Columbia Securities Commission ("BCSC") questioned whether or not the author assuming responsibility for reproduced previous Preliminary Economic Assessment (PEA) disclosed in the original report is a qualified person as defined in NI 43-101.
The amended report addresses this issue and other issues by adding Shaun Dykes P.Geo, Msc. (Eng) as a qualified person taking responsibility for those sections that were questioned by the BCSC.
The amended report makes no change to the previously announced resource, which remains at:
| Measured | Indicated | Meas.+Ind. | Inferred | Metal |
| 438.2 | 1,952.9 | 2,391.1 | 2,426.9 | million pounds of molybdenum oxide (MoO3) |
| 292.1 | 1,301.9 | 1,594.1 | 1,617.9 | million pounds of molybdenum (Mo) |
| 456.5 | 3,501.4 | 3,957.9 | 3,845.9 | million pounds of copper (Cu) |
| 18.8 | 160.3 | 179.1 | 189.9 | million ounces of silver (Ag) and |
| 30.0 | 166.6 | 196.6 | 216.6 | million pounds of tungsten (W) |
| 308.4 | 2,216.1 | 2,524.5 | 3,373.6 | million tons |
Medium long-term metal prices of US$10 moly oxide (US$15 moly metal Mo), US$3 copper, US$12.50 per ounce silver and US$15 per pound tungsten were used. (The US$2.50 cut-off is used for comparison purposes as it is consistent with all previous resource calculations.)
These new estimates represent the following increases over the previous indicated resource estimate (Snowdon 2011, updated 2012):
21.4% increase in ounces of Silver,
17.4% increase in pounds of Copper,
10.5% increase in pounds of Molybdenum Oxide,
19.5% increase in pounds of Tungsten, and
19.6% overall increase in tons
Medium Long-Term Prices: $10.00 Mo oxide, $3.00Copper, $12.50 Silver, $15 Tungsten. (Summarized on Page 1)
| Cutoff | Tons > Cutoff | Grade > Cutoff | Contained Metal | |||||||||
| RCV $US | Million | MoS2 | Cu | Ag | W | Cu Eq | Million | Million | Million | Million | Million | |
| Tons | (%) | (%) | (oz/t) | (ppm) | % | lbs. Mo | lbs MoO3 | lbs Cu | oz Ag | lbs W | ||
| Measured | $2.50 | 308.40 | 0.079 | 0.07 | 0.06 | 48.60 | 0.36 | 292.15 | 438.22 | 456.48 | 18.80 | 29.98 |
| Indicated | $2.50 | 2,216.10 | 0.049 | 0.08 | 0.07 | 37.60 | 0.25 | 1,301.93 | 1,952.89 | 3,501.38 | 160.30 | 166.65 |
| Measured + Indicated | $2.50 | 2,524.60 | 0.053 | 0.08 | 0.07 | 39.00 | 0.27 | 1,594.07 | 2,391.11 | 3,957.86 | 179.10 | 196.63 |
| Inferred | $2.50 | 3,373.60 | 0.040 | 0.06 | 0.06 | 32.10 | 0.20 | 1,617.92 | 2,426.88 | 3,845.86 | 189.91 | 216.58 |
| Cutoff | Tons > Cutoff | Grade > Cutoff | Contained Metal | |||||||||
| RCV $US | Million | MoS2 | Cu | Ag | W | Cu Eq | Million | Million | Million | Million | Million | |
| Tons | (%) | (%) | (oz/t) | (ppm) | % | lbs. Mo | lbs MoO3 | lbs Cu | oz Ag | lbs W | ||
| Measured | $7.50 | 282.00 | 0.085 | 0.08 | 0.06 | 50.60 | 0.38 | 287.41 | 431.12 | 428.67 | 16.94 | 28.54 |
| Indicated | $7.50 | 1,708.30 | 0.059 | 0.09 | 0.08 | 41.10 | 0.30 | 1,208.41 | 1,812.62 | 3,006.55 | 129.05 | 140.42 |
| Measured + Indicated | $7.50 | 1,990.40 | 0.063 | 0.09 | 0.07 | 42.40 | 0.31 | 1,495.82 | 2,243.73 | 3,435.21 | 145.99 | 168.96 |
| Inferred | $7.50 | 1,996.00 | 0.056 | 0.07 | 0.07 | 35.10 | 0.27 | 1,340.14 | 2,010.20 | 2,794.35 | 129.82 | 140.12 |
| Cutoff | Tons > Cutoff | Grade > Cutoff | Contained Metal | |||||||||
| RCV $US | Million | MoS2 | Cu | Ag | W | Cu Eq | Million | Million | Million | Million | Million | |
| Tons | (%) | (%) | (oz/t) | (ppm) | % | lbs. Mo | lbs MoO3 | lbs Cu | oz Ag | lbs W | ||
| Measured | $12.50 | 227.90 | 0.097 | 0.08 | 0.06 | 51.80 | 0.42 | 265.00 | 397.50 | 341.79 | 13.29 | 23.61 |
| Indicated | $12.50 | 1,050.60 | 0.076 | 0.09 | 0.07 | 44.20 | 0.36 | 957.35 | 1,436.03 | 1,891.14 | 78.14 | 92.88 |
| Measured + Indicated | $12.50 | 1,278.60 | 0.079 | 0.09 | 0.07 | 45.50 | 0.37 | 1,222.35 | 1,833.53 | 2,232.92 | 91.43 | 116.48 |
| Inferred | $12.50 | 996.40 | 0.078 | 0.06 | 0.06 | 37.60 | 0.34 | 931.81 | 1,397.71 | 1,275.37 | 57.54 | 74.93 |
Mr. Dykes examined the PEA section of the report and confirmed that the operating and capital costs used are still valid and well within the realm of accuracy of a PEA level analysis.
Mr. Dykes also restated the base economic case used in the report to match the metal prices used in the resource calculation, namely $15 Molybdenum metal ($10 Molybdenum oxide) and $3 copper. The original PEA was done in a higher price environment, so the new base case is more in line with current trends. It should be noted that these prices fall within the range of prices used in the original PEA report. Finally, Mr. Dykes added after-tax values to all tables in the PEA to conform with the recent updates to 43-101. The restated base economic case is as follows:
Table 16-19a: Updated Base Case Economic Analysis (pre-tax)
| Economic parameters (EBITD&A) | Throughput Option | |||
| 50 kt/d | 100 kt/d | 150 kt/d | 200 kt/d | |
| NPV (US$Billion@5%) | 2 | 6 | 9 | 12 |
| IRR% | 13 | 20 | 25 | 27 |
| Simple payback Period (years) | 7.5 | 4.6 | 3.5 | 3.0 |
| Discounted Payback period (years@5%) | 8.8 | 5.2 | 3.9 | 3.3 |
| Total Operating costs per lb of molybdenum Oxide equivalent | 5.5 | 4.3 | 3.9 | 3.8 |
Table 16-19b: Updated Base Case Economic Analysis (after-tax)
| Economic parameters After Tax | Throughput Option | |||
50 kt/d | 100 kt/d | 150 kt/d | 200 kt/d | |
| NPV (US$Billion@5%) | 1.8 | 4.5 | 7.2 | 9.4 |
| IRR% | 11.5 | 17.3 | 21.3 | 23.0 |
| Simple payback Period (years) | 7.7 | 4.9 | 3.8 | 3.4 |
| Discounted Payback period (years@5%) | 9.0 | 5.6 | 4.2 | 3.6 |
| Total Operating costs per lb of molybdenum Oxide equivalent | 5.5 | 4.3 | 3.9 | 3.8 |
For details on all of the after-tax numbers, please refer to section 16 of the report, which is available on SEDAR or on the Company's web site at www.cumoco.com.
In other news, the Company has made the yearly interest payment that was due October 25, 2015 on the Canadian debentures owned by IEMR (HK).
On the CuMo Project, the Company has started work once again and plans to complete drill pads and road access construction prior to the winter shut down. Last week, Boise County Board of Commissioners entered into a road maintenance agreement with the Company. The agreement signifies the Company's ongoing efforts to maintain good-standing and a collaborative working relationship with county officials and community members near the project site. The agreement aims to offset road maintenance costs, benefiting Boise County and its citizens.
Finally, fifteen core boxes of typical CuMo mineralized zone were delivered to University of British Columbia to start the process of determining the viability of ore sorting technology on the CuMo deposit. Ore sorting allows for the separation of the material that contains the grade from the waste. Given that only approximately 10 to 20% of the actual rock at CuMo contains the grade, the Company believes that ore sorting has excellent potential to substantially reduce costs, both capital and operating, for the project. Sacre-Davey, an independent engineering firm, will complete a 43-101 complaint report on the ore-sorting results.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company is the designated qualified person for the CuMo Project, and prepared the technical information contained in this news release.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility and establishing itself as one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Management is continuing to build a strong foundation from which to move the Company and the CuMo Project forward. For more information, please visit www.cumoco.com and www.cumoproject.com
American CuMo Mining Corporation
American CuMo Mining Corporation
Tel: (604) 689-7902
Email: info@cumoco.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.
Forward-looking information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such the Company's ability to move its CuMo Project to feasibility and production, and to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study and to put the CuMo project into production, that no labour shortages or delays are experienced, that plant and equipment function as specified that the Court will not intervene with the Company's proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company's publicly filed documents, including the Company's Management's Discussion and Analysis for the period ended June 30, 2015. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
