Yellowhead submits year-end report

In April 2013, the company submitted an application for an environmental assessment certificate

The year 2013 was a busy time for Yellowhead Mining Inc., according to the company’s year-end report.

Highlights for the financial year that ended Dec. 31, 2013 included:

• In April 2013, the company submitted an application for an environmental assessment certificate for its Harper Creek Project to the British Columbia Environmental Assessment Office (EAO).

• In May, 2013, the EAO identified a number of deficiencies with, and provided a number of comments on, the EA application, and requested Yellowhead to address such deficiencies and comments.

• In May, the company completed a 35 hole, 11,969 m in-fill drilling program on Harper Creek.

* Frank D. Wheatley was appointed as CEO and a member of the board of directors on July 1.

• On Nov. 19, the company issued an $8.0 million convertible debenture to Matco Investments Ltd.

• On Dec. 3, the company’s shareholders approved the full automatic conversion of the $8.0 million convertible debenture into 35,555,556 common shares of the company at a conversion price of $0.225 per share, representing approximately 35.91 per cent of the total issued and outstanding common shares of the company.

• Undertook a reduction in general and administrative expenses, including staffing levels, in order to position the company to execute on its strategy for 2014.

Strategy for 2014

The company’s strategy for 2014 includes:

• Updating the feasibility study for Harper Creek, including updating the resource and reserve estimates, initial capital costs, sustaining capital costs and operating costs, with a target for completion by the end of the second quarter of 2014.

• Updating and revising the EA application for Harper Creek.

• Re-submitting the EA application to the EAO by the end of the third quarter of 2014.

• Continuing public consultation with all stakeholders, including local communities and local First Nations, to address any potential environmental and socio-economic impacts of Harper Creek and the company’s mitigation strategies.

• Continuing negotiations with local First Nations with respect to an impact benefits agreement.

Yellowhead’s Harper Creek project is a copper-gold-silver deposit located approximately 10 kilometers southwest of Vavenby.

 

A feasibility study demonstrated a 28 year project life at a milling rate of 70,000 tpd (25.55Mt/y). The project as designed is expected to produce a total of 3.63 billion pounds of copper, 372,000 ounces of gold and 14 million ounces of silver contained in concentrate.