Ely Gold Announces Re-pricing of Private Placement and Updates to Preliminary Economic Assessment on Centennial Gold Project
May 27, 2010
Ely Gold & Minerals Inc. (the "Company") has re-priced the proposed
$4,000,000 private placement which was the subject of its April 26, 2010
news release from $0.50 to $0.25 due to current market conditions.
Accordingly, the Company will be making an application to the TSX
Venture Exchange for a further 30 day extension of the time within which
to file final materials respecting the private placement, The Offering
will now consist of up to 16,000,000 units (the "Units") at the price
of $0.25 per Unit, for gross proceeds of up to $4,000,000 (the
"Offering"). The Units will be comprised of one common share and
one-half of one share purchase warrant. One whole Warrant will entitle
the holder to purchase one common share for a period of two years at the
price of $0.40 per share; provided that if at any time after four
months after closing the Company's shares have a closing price equal to
or higher than Cdn.$0.60 per Share for twenty (20) consecutive trading
days, the Corporation may give notice to the holders of Warrants, by
news release and letter sent to the most recent addresses of the holders
on the Company's records, that the Warrants will expire at 4:30 p.m.
(Vancouver time) on that date which is 10 days after the date of such
The Offering remains subject to Exchange acceptance. All securities
issued pursuant to the Offering will be subject to a four-month hold
period from the closing date. The Company may, in appropriate
circumstances, pay finder's fees comprising cash and/or securities in
connection with the Offering.
Proceeds from the offering will be used to advance the mine permitting
process, to generate a plan of operations for exploration activities on
the Company's Mount Hamilton gold project and for general corporate
The Company also announces that it has received updates on a NI 43-101
compliant Preliminary Economic Assessment ("PEA") from SRK Consulting
U.S. Inc. ("SRK") for the Centennial deposit on the Mt. Hamilton
property, located 65 kilometers west of Ely, in White Pine County,
The original PEA done by SRK, dated May 13, 2009, is being updated to
reflect changes to the underlying property agreements and NSR buydown
that was announced by the Company on May 3, 2010. Highlights from SRK's
updated PEA include:
Average production of 36,400 ounces of gold and 224,400 ounces of
silver per year over an 8 year mine life at an operating cost of US$450
per ounce of gold (unchanged from the May 13, 2009 PEA).
Capital cost of US$46.95 million, using a 25% contingency and including all owners' costs.
Pre-tax net present value (NPV) of US$64.53 million at a 5% discount
rate with a 33.1% internal rate of return and payback over 2.1 years,
using an average gold price of US$900 per ounce of gold and US$15 of
A revision of the preliminary economic assessment will be available on
the SEDAR website within 45 days and will also include a new US$900 per
ounce of gold base case for pit optimization and the results of new
metallurgical tests being evaluated by SRK. The NI 43-101 mineral
resource estimate for the Centennial deposit was prepared by SRK
Consulting U.S. Inc., an independent consulting firm. Allan V. Moran,
R.G, C.P.G. and J.B. Pennington C.P.G. are the qualified persons as
described under NI 43-101 responsible for the Centennial deposit
The technical information contained in this news release, has been
reviewed, approved, and deemed relevant by Stephen Kenwood P. Geo., a
qualified person as defined under National Instrument 43-101.
On Behalf of the Board of Directors
Signed "Stephen Kenwood"
For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.
Neither 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.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.