|April 15, 2011|
Yellowhead Mining Awards Feasibility Study to Merit Consultants International Inc. and Environmental Assessment and Geotechnical Program to Knight Piésold Limited
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April 15, 2011 Vancouver, B.C.: Yellowhead Mining Inc. (TSXV-YMI, " YMI" or "Yellowhead") is pleased to announce the awarding of the Feasibility Study for Yellowhead's Harper Creek Project to Merit Consultants International Inc. ("Merit"), who will manage a team of consultants assembled for the project.
The Feasibility Study was awarded to Merit after a competitive bid process. The Feasibility Study was kicked off on April 13, 2011 and is scheduled for completion by the end of November 2011. The Feasibility Report will form a key component in making a production decision on the Harper Creek Project in 2012. Yellowhead's goal is to have the project in production by the end of 2014. The Feasibility Study will be based on the design criteria in the Preliminary Assessment Report which involves processing 70,000 tonnes per day of mill feed and producing a copper concentrate containing an average of 132 million pounds copper per year plus gold and silver.
The Feasibility Study team includes Axxent Engineering Ltd., mill design and general engineering services; Hinz , A Rockwell Automation Company, electrical, instrumentation, process control services; Laurion Inc., process flowsheet and design criteria plus management of the metallurgical testwork to be performed by G&T Metallurgical Services Ltd.; Nilsson Mine Services Ltd., mine design; and GeoSim Services Inc., resource modelling . Merit will provide overall management and coordination of the consultants, schedule, capital costs, infrastructure, and implementation planning. Merit, a Vancouver-based firm, has extensive engineering, cost estimating and construction management experience with large copper projects in British Columbia and Internationally.
To be conducted in parallel with the feasibility study, Yellowhead has awarded management of the Environmental Assessment ("EA") and geotechnical/hydrological work to Knight Piésold Limited ("KP"). Dillon Consulting Limited will continue to support the EA with the ongoing collection of baseline data. Further assistance on the EA will be provided by SRK Consulting (Canada) Inc., geochemistry and BioteQ Environmental Technologies Inc., water treatment.
Ian Smith, Chief Executive Officer, stated "We look forward to working with this very experienced team, who we believe are some of the top engineers and scientists internationally in their respective fields. We are confident they can deliver a first-class project in a timely manner".
Yellowhead has a 100% interest in the Harper Creek Project, (subject to the payment of a 3% NSR royalty capped at $2.5 million, adjusted for inflation and an additional 2.5% NSR royalty on an estimated 3.3 million tonnes of ore which is expected to be mined beginning in year nine within the NI 43-101 resource). The Harper Creek Project is a large copper-gold-silver project located in south-central British Columbia, approximately 150 kilometres by highway from Kamloops.
For more information, please contact:
Ronald Handford, Executive Vice President, Corporate Development
Anita Datt Investor Relations
604.273.5597 or 604.916.7175
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Filing Statement filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.
Neither the TSX Venture Exchange Inc. 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.
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