Plateau Energy Metals Inc. (“Plateau” or the “Company”) (TSX-V: PLU | OTCQB: PLUUF) reports that its subsidiary, Macusani Yellowcake S.A.C. (“Macusani”), has received the last 25 administrative resolutions outlining that the Mining Council within the Ministry of Energy and Mines (“MINEM”) in Peru has dismissed the Company’s appeal to suspend the Institute of Geology, Mining and Metallurgy’s (“INGEMMET”) resolution recommending the cancellation of the validity of 32 the concessions by reason of ‘late receipt of annual concession payments’.
As announced on July 31, 2019, the Company had previously received administrative resolutions for seven of the 32 concessions under review to correct an error made as a result of a government process relating to the timing of payments for 32 of its 149 mineral concessions. A full chronology and background of events is included in the news release from July 31, 2019.
“Whilst we are disappointed with these remaining resolutions, we remain optimistic that the ultimate outcome will be a reversal of these decisions. Peru is a nation built on investments, respect for laws and regulations, and economic development working in harmony with all stakeholders. We believe that ultimately, reason and common sense in this matter should prevail,” stated Alex Holmes, CEO. “We have two strong projects, even in the worst-case scenario as a potential impact on our current resources, should all avenues to resolve this wrong be exhausted.”
Key Takeaways:
- The Company is pursuing all options available to resolve this matter, including an appeal process to the Mining Council.
- Evaluation of different mine plans for the Falchani Lithium Project preliminary economic assessment (“PEA”) are underway as a measure to not delay the project development, but to restrict the mining area to a reduced footprint accounting for the currently impacted lithium concession.
- Approximately 80% of lithium carbonate equivalent (“LCE”) tonnes in indicated resources and approximately 55% of LCE tonnes hosted in lithium-rich tuff resources are unimpacted (see Table 1).
- Approximately 63% of the indicated uranium resource estimates (54% of the indicated resource within the 2016 Macusani Uranium Project PEA) are unimpacted (see Table 4).
The 32 currently impacted concessions represent an aggregate of approximately 23,100 hectares (“ha”), or less than 25%, of the Company’s total 93,000 ha concession package and may have the following impact on each of Plateau’s projects:
Falchani Lithium Project
Only one concession for the Falchani Lithium Project is amongst the 32 currently impacted concessions and forms part of the March 1, 2019, mineral resource estimates for the Falchani Lithium Project (“Falchani Resources”), filed under the Company’s profile on SEDAR at www.sedar.com. As noted in the table below (see Table 1), approximately 81% of the contained LCE tonnes in indicated resources are unimpacted by the administrative procedure, and approximately 80% of the highest grade, lithium-rich tuff (LRT) zone, on an indicated basis, also unimpacted. The one concession and its mineral resources that may impact the Falchani Resources is listed below (see Table 2).
The Company is in the process of modifying the PEA for the Falchani Lithium Project to exclude the currently impacted concession as an alternate mine plan.
The recent lithium surface discoveries at Tres Hermanas and Quelcaya are not located on any of the 32 concessions in the administrative process.
Macusani Uranium Project
Of the 32 currently impacted concessions, six concessions contain mineral resources2, of which two are not included in the January 25, 2016, PEA for the Macusani Uranium Project3 (“Macusani PEA”), filed under the Company’s profile on SEDAR at www.sedar.com (see Table 3). Approximately 68% of the Company’s total uranium resource base will not be impacted by the 32 concessions in the administrative procedure. The four currently impacted concessions included in the Macusani PEA represent approximately 46% of the uranium mineral resources estimates on an indicated basis (52% on an indicated and inferred basis) (refer to Table 4). These currently impacted resources represent approximately 45% of the life of mine Macusani PEA production.
Image 1: Map of 32 Concessions
For more detail on the full background and chronology of events please see the news release from July 31, 2019.
Readers are encouraged to visit the ‘FAQ’ page and the Company invites the submission of additional questions regarding this or any other subject, directly through the website or by email at IR@plateauenergymetals.com.
Qualified Persons
Mr. Ted O’Connor, P.Geo., a Director of Plateau, and a Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical information contained in this news release.
About Plateau Energy Metals
Plateau Energy Metals Inc., a Canadian exploration and development company, is enabling the new energy paradigm through exploring and developing its Falchani lithium project and Macusani uranium project in southeastern Peru. The Company, with mineral concessions covering over 93,000 hectares (930 km2), controls all reported uranium mineral resources known in Peru and has significant and growing lithium mineral resources, all of which are situated near infrastructure.
Source: Plateau Energy Metals Inc.
