Vancouver, British Columbia: Pinecrest Resources Ltd. ("Pinecrest" or the "Company") (TSX-V: PCR) announces refiling of an amended Technical Report titled "Technical Report and Preliminary Economic Assessment on the Enchi Gold Project, Enchi, Ghana" dated April 14, 2015 is prepared by WSP Canada Inc. ("WSP"). There were no material differences in the results or conclusions of the Report. The refiling is a result of a review by the British Columbia Securities Commission and the Company is issuing the following news release to clarify its disclosure. All currency figures are in US Dollars (US$ or $).
Enchi Gold Project (Base Case) $US1,300 gold
Post-tax NPV 5% of $62 Million and IRR 25%
Life of Mine Average Cash Costs of $802/oz
Average Annual Gold Production of 61,749 oz over an 8.7 year mine life
PEA Highlights -- Base Case $1,300/oz gold price
| Average Mined Gold Grade (g/t) | 0.91 |
| Processing Rate (Mtpy) | 3.0 |
| Mine Life (years) | 8.7 |
| Life-of-Mine (LOM) Strip Ratio | 3.16:1 |
| IRR Pre-Tax (%) | 34 |
| NPV Pre-Tax (5% Discount Rate) (US$ Million) | 102 |
| IRR After-Tax (%) | 25 |
| NPV After-Tax (5% Discount Rate) (US$ Million) | 62 |
| Initial Capital Cost (US$ Million) | 84 |
| LOM Sustaining Capital Cost (US$ Million) | 39 |
| Payback (Pre-Tax) (years) | 2.8 |
| Payback (After-Tax) (years) | 3.4 |
| LOM Cash Costs (US$/oz) | 802 |
| Metallurgical Recoveries (oxide/transition/sulphide %) | 75/75/73 |
| Total Recovered Gold (oz) | 538,450 |
| Average Annual Gold Production (oz) | 61,749 |
| Peak Annual Gold Production (oz) | 76,210 |
The preliminary economic assessment is preliminary in nature, and it 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. There is no certainty that the preliminary economic assessment will be realized. Numbers may not add exactly due to rounding. Cash cost includes all operating costs, royalties, refining charges, environmental monitoring, tenure fees as well as general and administration costs. Cash cost excludes any capital cost, either initial or sustaining and closure and remediation costs.
Mineral resources that are not mineral reserves do not have demonstrated economic viability
The PEA was based on the July 15, 2014 NI 43-101 Inferred Mineral Resource estimate prepared by WSP which as a result of the PEA is being restated using a 0.5 g/t cut-off. (see Table 1 for details).
| Cut-off Au (g/t) | Zone | Tonnes | GradeAu (g/t) | Contained Gold (ounces) |
| 0.5 | Boin | 15,872,000 | 0.96 | 489,892 |
| 0.5 | Nyamebekyere | 5,350,000 | 0.96 | 165,129 |
| 0.5 | Sewum | 16,135,000 | 0.82 | 423,676 |
| TOTAL | 37,357,000 | 0.90 | 1,078,697 |
- CIM definition standards were followed for the resource estimate.
- The 2014 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
- A base cut-off grade of 0.5 g/t Au was used for reporting resources with a capping of gold grades at 18 g/t.
- A US$1,300/ounce gold price, open pit with heap leach operation was used to determine the cut-off grade.
- A density of 2.45 g/cm3 was applied.
- Numbers may not add exactly due to rounding.
- Mineral Resources that are not mineral reserves do not have economic viability
The 2014 Mineral Resource estimate was based on 52,385 metres of diamond and RC drilling in 646 holes as well as data from 102 surface trenches totalling 13,799 metres. The drilling is generally spaced at 25 to 50 metre intervals.
Additional information as well as a copy of the Technical Report detailing the recently completed Preliminary Economic Assessment are available at www.sedar.com and on the Company's web site www.pinecrestresources.com.
Qualified Persons Statement
The NI 43-101 Technical Report ("Report") prepared by WSP includes a restatement of the mineral resource estimate and present in-pit mineral resource estimate. The Report is prepared by Todd McCracken, P.Geo. (Geology), Ms. Joanne Robinson, P.Eng. (Mining), Mr. Mireno Dhe Paganon, Eng, (Metallurgical and processing), Mr. Bruce White, PrEng. (Infrastructures), Mr. Paul Vermaak, Pr.Sci.Nat, (Environmental and social aspects), and Mr. Jean-Sebastien Houle, Eng. (financial). All individuals providing certifications are Independent Qualified Persons as defined by NI 43-101.
Mr. Gregory Smith, P. Geo. Vice President, Exploration of Pinecrest is the qualified Person as defined by NI 43-101 and has prepared and approved the technical data and information in this news release.
About Pinecrest
Pinecrest is a British Columbia corporation that is based in Vancouver, B.C. The Company engages principally in the acquisition, advancement and development of precious mineral properties and the Company intends to advance and develop the Company's 100% owned Enchi gold project located in South West Ghana. Major shareholders of the Company include; Red Back Mining Ghana Ltd. (wholly owned subsidiary of Kinross Gold Corp.), Sandstorm Gold Ltd. and Management.
On Behalf of the Board of Directors
PINECREST RESOURCES LTD.
Signed "Ryan King"
Ryan King,
President, Director
For further information, please contact:
Ryan King, President, Director
rking@pinecrestresources.com
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