O3 MINING PEA WEBINAR TO BE HELD SEPTEMBER 8, 2020 @9:00 AM EST. 
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TORONTO, Sept. 08, 2020 (GLOBE NEWSWIRE) — O3 Mining Inc. (TSX.V:OIII) (“O3 Mining” or the “Corporation”) is pleased to announce positive results from the independent preliminary economic assessment (“PEA”), prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), for its 100% owned Marban project at the Malartic property, in the world-class mining region of Val D’Or in Québec, Canada.With the PEA now complete, O3 Mining will begin working on a pre-feasibility study to advance the Marban project towards production as part of a staged development strategy while continuing its aggressive drilling programs aimed to maximize value creation for shareholders.PEA Highlights*Long-term Gold Price of US$1,450/ozExchange rate of C$1.00 = US$0.74After-tax net present value (“NPV”) (discount rate 5%) of $423 millionAfter-tax internal rate of return (“IRR”) of 25.2%After-tax payback period 4.0 yearsInitial capital of (“CAPEX”) of $256 million including mine preproduction, processing, infrastructure (roads, power line relocation, tailings facility, ancillary buildings, and water management)Life of mine (“LOM”) of 15.2 yearsAverage LOM strip ratio (W:O) of 5.9:1Total production of 60,356 kt of mill feed yielding 1.8 Moz AuAverage annual gold production of 115,000 ozAverage gold mill head grade of 1.13 g/t in years 1 to 10 (0.97 g/t for LOM)Average recovery of 93.7%Measured and indicated mineral resource of 54,151 kt at a 1.10 g/t Au gradeCash cost of US$741/ozAll-in sustaining cost (“AISC”) of US$822/oz* All figures are stated in Canadian dollars unless otherwise stated.** Cautionary Statement: The reader is advised that the PEA summarized in this news release is intended to provide only an initial, high-level review of the project potential and design options. The PEA mine plan and economic model include numerous assumptions and the use of inferred mineral resources. Inferred mineral resources are considered to be too speculative to be used in an economic analysis except as allowed for by NI 43-101 for PEA studies. There is no guarantee that inferred mineral resources can be converted to indicated or measured mineral resources, and as such, there is no guarantee the project economics described herein will be achieved.The O3 Mining team is pleased to present the results of a PEA on its Marban Project, which unequivocally demonstrates the potential of O3 Mining to become a major North American gold producer, with a positive after-tax IRR of 25.2% and an after-tax NPV of C$423 million. The PEA supports an 11,000 tonnes per day open pit project with production spanning 15.2 years with robust economics at a US$1,450/oz gold price, with very attractive cash costs and AISC, low CAPEX and low capital intensity. The first 12 years will target production in excess of 130,000 ounces gold per year peaking at more than 161,000 ounces in Year 9.“Marban has shown potential to become a highly profitable gold mine in one of the most prolific producing regions in Canada, supported with a PEA produced by the Ausenco team, one of the most experienced and reputable engineering firms working on gold projects in Canada. The Marban Geological team has demonstrated the ability to identify an abundance of gold resources over a very short period. The ongoing drill program will continue to add to and upgrade resources as we seek to move the project forward towards production,” commented Jose Vizquerra, President, CEO and Director of O3 Mining.O3 Mining believes the Marban property has the geological potential to extend the LOM beyond the initial 15.2 years presented in the PEA as well as the opportunity to expand the scale of production by increasing the mineral resource through ongoing exploration and drilling. The Corporation’s goal is for Marban to be a cornerstone mine for its future growth in a mining-friendly jurisdiction. With a strong treasury to support its next steps, the Corporation plans to commence pre-feasibility and environmental impact studies, while continuing to explore the geological potential of its Marban property.“O3 Mining was born out of a series of successful mining ventures on properties in the same Val D’Or region in Québec – ranked as the fourth best mining jurisdiction in the world and has produced over 30 million ounces of gold. O3 Mining is ready to maximize Marban’s value by advancing the studies to further refine and de-risk the project, which the Osisko Group has successfully done with other deposits in the past, such as Canadian Malartic,” added Mr. Vizquerra.O3 Mining looks forward to working with its partners in the Abitibi region including the Malartic and Val D’Or municipalities and the Abitibiwinni, Lac Simon, Long Point, and Kitcisakik Anishinabeg First Nations as well with the support of the Québec and federal governments, to advance the Marban Project.Overview
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