|By Marketwired .||
|October 9, 2013 05:02 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 10/09/13 -- Delta Gold Corporation (TSX VENTURE:DLT) ("Delta" or the "Company") announces that, as a result of a review by the British Columbia Securities Commission ("BCSC"), it is issuing the following news release to clarify certain technical disclosure previously made by the Company.
Technical Disclosure Issues
Non-compliant disclosure of the PEA
The disclosure concerning the PEA in the Company's Management Discussion and Analysis (MD&A) for the year ended September 30, 2012 (prepared as of January 17, 2013) up to and including June 30, 2013 (prepared as of August 20, 2013) is contrary to National Instrument ("NI") 43-101 Standards for Disclosure of Mineral Projects, as it does not include the proximate cautionary language required by sections 2.3(3) and 3.4 of NI 43-101.
The Company clarifies that mineral resources that are not mineral reserves do not have demonstrated economic viability. The preliminary economic assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
As well, the Company's MD&A disclosed mineral resources are "projected to be economically mined", "expected to produce a robust economic return", and referred to "commercial production". Disclosing or implying a commercial nature or economic viability is contrary to the required cautionary language and the preliminary nature of a PEA, and is premature and potentially misleading before completion of a current, valid mining study. A preliminary feasibility study or feasibility study is required to qualify a reserve estimate and establish economic viability and the Imperial Project has not reached this stage of analysis.
Accordingly, the Company wishes to retract the above referenced MD&A statements and advises that such statements should not be relied upon. In those instances where the Company has amended, retracted or clarified previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.
The projects section of the Company's website also omits the cautionary language required by s.2.3(3)(a) of NI 43-101, and is being corrected accordingly.
Updated certificates of qualified persons will be filed to fully support the disclosure of the PEA in the technical report titled, Preliminary Economic Assessment Technical Report for the Imperial Project, California, USA, issued on November 14, 2012 with an Effective Date of October 26, 2012.
Mr. John Purkis, P. Eng. (BC), Senior Vice President, Operations and Chief Operating Officer of the Company, is a qualified person for the purposes of National Instrument 43-101 and has reviewed the Preliminary Economic Assessment Report completed by SRK Consulting (Canada) Inc. and approved the technical information in this press release.
Delta Gold Corporation is a development stage mining company whose goal is to build a successful mid-tier gold producer, committed to industry-leading technical, environmental and social best practices. Our business strategy is to identify and evaluate mineral investment opportunities located in favourable jurisdictions and settings, and to prudently acquire and develop projects that are economically, socially and environmentally viable.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.