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Message: Kerr Mines Receives Aquifer Protection Permit

 

 
2019-09-19 06:30:01 AM ET (GlobeNewswire)
   
   

Kerr Mines Inc., (TSX: KER, OTC: KERMF), ("Kerr" or the "Company"), is pleased to announce receipt of its Aquifer Protection Permit from the Arizona Department of Environmental Quality.

The Arizona Department of Environmental Quality ("ADEQ") has issued an approval for the modification of the existing Aquifer Protection Permit ("APP") for the Company's wholly owned Copperstone Gold Mine. This significant event allows for enhanced mine operations and will further optimize the Copperstone Mine. The new permit will be effective for the life of the facility.

The positive implications of the permit modification are evident in the new enhancements for the mine. The modification will authorize the use of cyanide for recovery of gold from Copperstone ore using captive steel tanks located in the ore processing facility, allow for the storage of stabilized tailings produced from the ore processing facility at the Copperstone Mine and permit the construction and use of a water evaporation and infiltration basin to be used to recirculate back into the underground mine any un-used water produced from underground mine water management activities. The APP modification was initiated in early 2018 with the formal modification package submitted in December 2018 and culminated with an effective date set for September 18, 2019.

The attainment of the modified APP is a part of the strategic value-enhancing process designed to enable the restart of the Copperstone Gold Mine under improved operating conditions. The process involves modifying two existing ADEQ environmental permits and modifying the Federal Bureau of Land Management Mine Plan of Operations ("MPO") The modification for the ADEQ permit governing air was received in December 2018 (Please refer to Press Release dated February 5, 2019) and the modification to the MPO is expected to be received in Q4-2109. All other permits required for mine operations and gold production are in hand and do not require further modification.

In aggregate, the modifications of the three existing permits allow for an increase of gold ore production from the current allowable limit of 450 tons per day to 600 tons per day, the use of cyanide for gold recovery and the deposition of water produced from mine water management activities to an on-site infiltration and evaporation basin.

Giulio T. Bonifacio, Chief Executive Officer stated: "We would like to thank the Arizona Department of Environmental Quality, along with our team of consultants, that worked diligently over the past year to modify our existing permit package to enhance the conditions for operational expansion and increase our production throughput to be in alignment with our economic business objectives. As we continue to add value to the Copperstone Mine, we look forward to concluding the permit modification strategy by receiving the modified MPO in Q4."

About Kerr Mines Inc.

Kerr Mines is an Emerging American Gold Producer currently advancing the 100% owned, fully permitted past-producing Copperstone Mine project to production. Copperstone is a high-grade gold project located along a detachment fault mineral belt in mining-friendly Arizona. This gold project in Arizona demonstrates tremendous exploration potential targeting multi-million ounce prospects within a 50 Square kilometers (12,259 acre) land package.

For further information please visit the Kerr Mines website (www.kerrmines.com)

KERR MINES INC.

Giulio T. Bonifacio, Chief Executive Officer

For further information contact:

Giulio Bonifacio

Chief Executive Officer

[email protected]

604-318-6760

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