Vancouver B.C., May 14, 2013: TNR Gold Corp. (“TNR” or the “Company”) announces that as a result of a review by the British Columbia Securities Commission (“BCSC”), TNR is issuing this news release to clarify our disclosure. Some of the information on the Company’s website, fact sheets and presentation materials included certain out-of-date information and disclosure of historical and other mineral resources that was not compliant with the standards of disclosure for mineral projects as set out by National Instrument 43-101 (“NI 43-101”) and as a result could be misleading.
In particular, the Company’s website included a historical resource estimate for the Shotgun Gold Project which is no longer relevant, because on April 22, 2013, the Company announced an updated inferred mineral resource. The historical resource estimate was potentially misleading because the historical estimate contained almost 250,000 ounces more gold than the current April 22, 2013 estimate, which is the only estimate that should be relied upon. The Company retracts references to the historical resource for the Shotgun Gold Project in light of the current, updated estimate. The Company’s website also included certain mineral resource disclosure that was not compliant with NI 43-101 because in certain instances of disclosure related to the Shotgun Gold Project, it did not use the applicable categories for mineral reserve and mineral resource estimates as defined by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) as the CIM Definition Standards on Mineral Resources and Mineral Reserves and adopted for the purposes of NI 43-101, failed to disclose the three acceptable categories of mineral resources (measured, indicated and inferred) separately, added inferred mineral resources to other categories and failed to include grade. The Company will be updating the Shotgun pages of its website, the Shotgun presentation and the presentation materials labelled as “Investor Presentation” to ensure that only the April 22, 2013 resource estimate is included, that any resource disclosure includes the applicable categories and that inferred mineral resources do not get added to other categories.
The lithium presentation that was included on the Company’s website included a historical estimate that did not include the required cautionary language about relevance and reliability and information about the key assumptions and parameters in deriving the historical estimate. The lithium presentation also included a reference to a mineral resource without the grade being noted. The lithium presentation is being updated to clarify these points.
TNR’s website had included certain pages and video clips wherein non-compliant NI-43-101 mineral resource estimates were disclosed for the Shotgun Gold Project. In an April 2012 video that has now been removed from the TNR website, TNR disclosed a non NI 43-101 compliant mineral resource for the Shotgun Gold Project and that they hoped the Shotgun Project could host tens of millions of ounces. These items are non-compliant because non-NI 43-101 resources should not be disclosed and the Company’s exploration work on the Shotgun Project was not consistent with a statement about tens of millions of ounces of gold and the Company has no evidence that the Shotgun project hosts such a resource. TNR specifically retracts both of these statements made in the video and elsewhere on their website and states that they should not be relied upon. The only resource information for the Shotgun project that should be relied upon is the resource estimate outlined in the Company’s April 22, 2013 news release.
The Company’s website included an investor presentation wherein a resource estimate for the Soules Bay project in Ontario was specifically disclosed as a “non-compliant NI 43-101” estimate. TNR clarifies that the estimate disclosed was in fact an historic estimate that did not include the required surrounding information and cautionary language. TNR clarifies the Soules Bay information should have been presented as follows:
The Soules Bay project occurs within the eastern Lake St. Joseph Greenstone Belt in the Uchi Subprovince of the Superior Province of the Canadian Shield. The main target area consists of a banded iron formation of considerable extent of which 12kms of strike length is contained within the property limits. The on-strike extension of the iron formation, partially overlapping, adjacent and to the west of the property, has witnessed considerable exploration by Steep Rock Iron Mines Ltd. (“Steep Rock”) from 1957-1961 reporting a historical indicated reserve of 628 million tonnes averaging 23.1% soluble iron yielding a concentrate averaging 67.6% soluble iron signifying an 84.8% recovery at a concentration ratio of 3.4:1; or 29.3 weight percent (Goodwin 1965 and Taylor et al. 1972). Soluble iron is that partial component of total iron content that is acid (i.e. aqua regia) soluble. The iron in iron oxides is classified as acid soluble, whereas iron-bearing silicates represent an example of material categorized containing insoluble iron.
One of the 1957 drill holes (hole #2) utilized in the 1960 Steep Rock reserve calculation, situated within and proximal to the property’s western boundary, reported a 94.5 metre composite sample grading 24.9% soluble iron yielding a concentrate of 68.8% soluble iron signifying an 82.7% recovery at a concentration ratio of 3.3:1; or 29.9 weight percent.
The geology and assay results quoted above are from various historical reports and have not been verified by the Company. A Qualified Person (QP), as defined in NI 43-101, has not done sufficient work to classify this historical estimate as a current mineral resources. TNR is not treating the historical estimate as current mineral resources, as defined in NI 43-101, and thus the historical estimate should not be relied upon. Furthermore, because no recent work has been done to evaluate the economics of the deposit, there is no guarantee that the quoted historic “reserve” figure is potentially economic. Economic studies done in 1960 do not mean the mineralized iron deposit would be found to be economic today. In accordance with NI 43-10, Sec 2.3 (2), the reader is cautioned that the estimate of the potential quantity and grade for the deposit is conceptual in nature and that there has not been sufficient exploration in this instance to define a current mineral resource nor is there certainty that further exploration will delineate the target as a mineral resource.
The Company’s website had also not been updated to indicate that certain properties (ie. Blackstairs, Nevada properties) that were formerly held by the Company, were spun out from TNR to International Lithium Corp. in May 2011. The Company will be updating the website to clarify which projects are currently held by the Company and ensure that the information contained on the web pages dedicated to each of the Company’s mineral projects is accurate for the developments related to that particular mineral project.
The Company would also like to clarify a statement in its April 22, 2013 news release and statements in its Shotgun presentation and Investor presentation that suggest that the mineral resource estimate was prepared in compliance with NI 43-101. These statements may be misleading as NI 43-101 establishes rules on how issuers disclose mineral resources and reserves and other such technical information, but it does not provide rules for the collection of exploration information or the estimation of mineral resources, which are instead established by industry organizations such as CIM.
The Company is working to update its website, factsheets and presentation materials to ensure that all disclosure names the qualified person who prepared or supervised the preparation of the technical information contained in the particular disclosure item.
About TNR Gold Corp.
Over the past twenty-one years TNR, through its lead generator business model, has been successful in generating high quality exploration projects around the globe. With the Company’s expertise, resources and industry network, it is well positioned to aggressively identify, source, explore, partner and continue to expand its project portfolio.
TNR is also a major shareholder of International Lithium Corp. (TSX:ILC.V) (“ILC”), a company created by TNR to advance its internationally acquired lithium prospects. TNR currently holds about 25.5% of the outstanding shares of ILC.
At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska and Argentina; and teamed with the recent acquisitions of rare-earth elements and iron ore projects in Canada confirms TNR’s commitment to continued generation of in-demand projects, while diversifying its markets and building shareholder value.
On behalf of the board,
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company’s future plans and objectives or expected results, are forward-looking statements. News release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.