Vancouver B.C. December 18, 2013 - Batero Gold Corp. (Batero, or the Company) (TSX-V: BAT) has filed the complete National Instrument 43-101 technical report pertaining to the updated mineral resource estimate and preliminary economic assessment (PEA) for the Batero-Quinchia gold deposit on its 100-per-cent-owned gold project located in Risaralda, Colombia. The technical report is available on SEDAR and Batero Gold’s website. For detailed results please see the Batero Gold Corp. news release dated November 4, 2013.

PEA Highlights

The PEA evaluates the economics of an open pit contract mining and heap leach processing scenario that takes advantage of the relatively high gold recoveries and fast leach kinetics of the surface oxide mineralization within the Batero-Quinchia deposit. Higher grade, near surface mixed and primary mineralization within the oxide pit footprint are also mined.

Highlights from the PEA, with a base case gold price of US$1,400/oz are as follows (all figures are in U.S. dollars unless otherwise stated):

• Mine life of seven years at 3.5 million tonnes per annum production steady state (10,000 tonnes per day).
• Life-of-Mine (LoM) gold production of 390,000 ounces of gold and 817,000 ounces of silver recovered.
• Annual average production of 56,000 ounces of gold and 117,000 ounces of silver recovered.
• Total open pit production which has been factored for mining extraction and mining dilution:
  • 9.4 Mt of Measured Mineral Resources at 0.81 g/t Au and 1.8 g/t Ag for 244,000 ounces of contained gold and 545,000 ounces of contained silver,
  • 11.0 Mt of Indicated Mineral Resources at 0.77 g/t Au and 2.0 g/t Ag for 273,000 ounces of contained gold and 720,000 ounces of contained silver,
  • 3.3 Mt of Inferred Mineral Resources at 0.59 g/t Au and 1.6 g/t Ag for 64,000 ounces of contained gold and 171,000 ounces of contained silver.
  • Approximately 86% of open pit production tonnage is classified as Measured or Indicated Mineral Resources.
  • Mining strip ratio of 0.3:1 (waste: production).
  • LoM average gold and silver heap leach recoveries of 67% and 57% respectively.
  • Initial capital cost of $97.3 million, which includes $16.2 million in contingency costs.
  • Pre-tax payback of 23 months.
  • Net pre-tax cash flow of $105.0 million.
  • Pre-tax Internal Rate of Return (IRR) of 27%.
  • Pre-tax Net Present Value (NPV) at a 5% discount rate of $69.1 million.
  • Total cash operating cost (net of silver credits) of $842 per ounce gold.
  • After-tax payback of 30 months.
  • Net after-tax cash flow of $76.9 million.
  • After-tax IRR of 21%.
  • After-tax NPV at a 5% discount rate of $47.3 million.
  • The mineralized production from the PEA is defined from less than 45 % of the measured mineral resource and less than 15 % of the indicated mineral resource.
  • A 10% change in head grade, recovery, or gold price results in an approximate ±$40 million change in the pre-tax NPV at a 5% discount rate.

 

The PEA was prepared by RPA in accordance with the standards set out in NI 43-101. The PEA is considered preliminary in nature.  It includes inferred mineral resources that are considered too speculative to have the economic considerations applied that would enable classification as mineral reserves.  There is no certainty that the conclusions within the PEA will be realized.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Project Opportunities

Trade-off studies that include additional exploration of the Antenna and Cumbre Sur oxide targets are being considered.  These areas were defined through 1H 2013 exploration results and are located within 200 meters of the proposed La Cumbre open pit.  The Antenna and Cumbre Sur exploration targets are outside the current mineral resource area.

Continue with a more extensive metallurgical testing program using a variety of samples.  Relevant to the PEA, the test program should investigate the impact of heap leaching and vat leaching mineralization at various crush sizes as well as the effect of leach time, solution application rate, stacking height, cyanide concentration, and rest cycles on the overall metallurgical behavior of the mineralization.

Core loss through triple tube drilling in 2012 was observed as reduced in comparison to 2011 drilling.  Grade improvement was observed with reduced core loss.  Further review of core loss from 2011 drilling for grade differential to 2012 drilling is recommended.

Exploration Targets and Epithermal Mineralization

Targets generated by Batero in 2013 via data compilation, new mapping, and sampling include two areas with potential for gold mineralization within an oxide zone, both adjacent to the La Cumbre deposit (Antenna and Cumbre Sur), six targets for vein or fault controlled mineralization with samples results ranging from 1.0 g/t Au to 36.6 g/t Au (Kobey, Matecana, Triunfo, La Perla, Llanadas, Esmeralda), and a single target for a gold-copper porphyry style deposit (Esmeralda SW) such as La Cumbre, El Centro, and Dos Quebradas (Table 1).

 

Table 1   Exploration Targets

Batero Gold Corp. – Batero-Quinchia Project

 

 

Epithermal mineralization discovered within and adjacent to the La Cumbre deposit, as well as structurally controlled mineralization throughout the El Centro and Dos Quebradas deposit areas require further investigation.  Higher grade intersections including two metres grading 43.4 g/t Au in hole LC003, 31.3 m grading 2.85 g/t Au in hole QAP034, 10 m grading 1.4 g/t Au in hole SB007, and 53.6 m grading 1.31 g/t Au in hole LC001, occur in the porphyry mineralization.

 

In addition, there are high grade results from samples collected from several rehabilitated tunnel exposures. Results to highlight from the La Cumbre Mines tunnels include selective 2m grab samples from fault-vein structures that are summarized in Table 2.  Standardized 2m tunnel back samples from the La Cumbre Mines tunnels  taken across fault-vein structures are listed in Table 3.  Lateral channel samples from the La Cumbre Mines tunnels taken outside of fault and vein structures within wallrock are listed in Table 4. 

 

Table 2   La Cumbre Mines Vein Grab Sample Highlights

Batero Gold Corp. – Batero-Quinchia Project

 

 

Table 3   La Cumbre Mines Two Metre Vein Sample Highlights

Batero Gold Corp. – Batero-Quinchia Project

 

 

Table 4   La Cumbre Mines Wallrock Sample Highlights

Batero Gold Corp. – Batero-Quinchia Project

 

 

Mandeval Mines tunnels highlights of selective grab samples from mineralized fault-vein structures are summarized in Table 5.

 

Table 5   Mandeval Mines Vein Grab Sample Highlights

Batero Gold Corp. – Batero-Quinchia Project

 

 

 

Authors and Qualified Persons Statement

The PEA results contained in this news release were prepared by or under the supervision of Mr. Luke Evans, M. Sc., P.Eng., of RPA, Mr. Glen Ehasoo, P.Eng., of RPA, and Dr. Kathleen Ann Altman, Ph.D., P.E., of RPA, who are independent "Qualified Persons" under NI 43-101 Standards of Disclosure for Mineral Projects.

Darryl Lindsay, Ph.D., P.Geo. Interim Chief Executive Officer at Batero Gold is the qualified person as defined by NI 43-101 and is responsible for the technical information provided in this release and all future news releases.

ON BEHALF OF THE BOARD OF

BATERO GOLD CORP.

 

Darryl Lindsay

Interim CEO

Batero Gold Corporation

 

For further information please contact:

Batero Gold Corp.

Tel: 604.568.6378 or

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

ABOUT BATERO GOLD

Batero Gold Corp. is a precious and base metals exploration and development Company. The Company is focused on two primary objectives.  The first of these objectives is the advancement of the La Cumbre oxide deposit.  La Cumbre is located within the Company’s 100% owned Batero-Quinchia Gold Project, which sits within Colombia’s emerging and prolific Mid Cauca gold and copper belt. Batero is moving the La Cumbre oxide deposit towards the goal of making a production decision, once the appropriate level of study has been completed, and intends to first target the near and at surface higher grade oxidized gold mineralization at the deposit.  Batero’s second objective is to pursue opportunities to acquire prospective high-grade, production focused mineral properties in Colombia and Latin America.  In pursuing both these objectives, Batero plans to leverage its secure treasury position, strong regional relationships, experienced management team, and long-term financial partners.  Shares of the Vancouver-based company trade on the Toronto Venture Exchange under the symbol BAT.

 

FORWARD LOOKING STATEMENTS Certain of the statements and information in this press release constitute “forward-looking statements” or “forward-looking information”.  Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “believes”, “plans”, “estimates”, “intends”, “targets”, “goals”, “forecasts”, “objectives”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.

Forward-looking statements or information relate to the Company’s anticipated content and cost of exploration programs, anticipated timing and results of exploration programs, planned exploration and development programs, the potential for a production decision to be made, the potential commencement of any development of a mine at the Batero-Quinchia project following a production decision, and the potential for any mining or production at the Batero-Qunichia project. These statements relate to analysis and other information that are based on expectations of future performance as set out in the PEA, including gold and silver production and planned work programs.  In addition, forward looking statements relate to, among other things: developing the most efficient and cost-effective leach processing circuit for the Cumbre gold deposit, the timing and scope of expected diamond drilling; resource estimate grades on the Batero-Quinchia project; scope of mineralization within the Batero-Quinchia project; timing of receipt of permits and regulatory approvals; the sufficiency of the Company’s capital to finance the Company’s operations; geological interpretations and potential mineral recovery processes.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that development activities will result in a profitable mining operation at the Batero-Quinchia project, fluctuations in the spot and forward price of gold or certain other commodities; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, Colombia or other countries in which the Company may carry on business in the future; the uncertainties involved in interpreting geological data; business opportunities that may be presented to, or pursued by, the Company; operating or technical difficulties in connection with mining activities; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; risks related to mineral resource estimates being based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral resources as the Batero-Quinchia project is mined; and contests over title to properties, particularly title to undeveloped properties.  In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks).

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements or information. The Company’s forward looking statements and information are based on beliefs, expectations, and opinions of management on the date the statements are made.  For the reasons set forth above, investors should not place undue reliance on forward looking statements or information.

The information in this news release addressed the PEA, and is not intended to be an exhaustive review of all matters or deveopments that may affect the Company.  It should be read in conjunction with all other disclosure documents of the Company.  No securities commission or other regulatory authority has reviewed the accuracy or adequacy of the information presented in this news release.

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.