PEA Results At Mexican Hat Gold Project

VANCOUVER - GMV Minerals Inc. reported positive results from the Preliminary Economic Assessment (PEA) study of the Mexican Hat Gold Project, located in Cochise County, Southeastern Arizona. The Report is entitled "NI 43-101 Technical Report Updated Preliminary Economic Assessment, Mexican Hat Project". Highlights: The Base Case generates a pre-tax Internal Rate of Return (IRR) of 39.3% (after tax 29.3%) and a pre-tax net present value (NPV) at a 5% discount rate of $150.6 million (after tax $100.0 million) with a 2.85 year payback of invested capital using a $1,600 per ounce gold price; Based on price sensitivity analysis at approximately the current price of $1,900 per ounce of gold, the project returns a pre-tax IRR of 58.3% (after tax 44.3%) and a pre-tax NPV at a 5% discount rate of $265.1 million (after tax $182 million) with a payback period of 2.10 years; Base Case mine life of 10 years with total production of 525,000 ounces, averaging 52,500 ounces per year; Crushed mineralized material will be conveyor stacked at a rate of approximately 10,000 tonnes/day on a conventional heap leach pad; Capex: $67.8M (including $12.2M contingency); Opex: Low LOM Strip Ratio of 1.87; Estimated cash cost of production is $951 per ounce with an all-in-sustaining cost of $1,136 per ounce inclusive of sustaining capital and additional overhead support; and Engineering design analysis indicates the potential to increase pit size and contained ounces with increased gold prices.

The mine plan is currently conceived as a conventional hard rock open pit. There are two independent pits which are developed with five-phase or pushback designs. Pit shells were designed using 6.0-meter benches with a catch bench installed every 18 meters. A bench face angle of 66° was used, resulting in an inner-ramp angle of 45° when catch benches were included. An 88% overall gold recovery has been used in this study, which was based on bottle roll and column leach test results. Base case haulage ramps are 26 meters wide and have a design gradient of 10%. Processing rates are based on a daily crushing rate of approximately 10,000 tonnes per day utilizing two stage crushing. The mine and crushing will be operated by contractors with oversight by GMV mine management. The mine plan produces a nominal tonnage to the crushing and heap leach of 3,500 Ktonnes per year (10,000 tpd) from a total material movement of 93.8 Ktonnes for the life of mine (26,106 tpd LOM average).

The preliminary economic assessment is preliminary in nature; 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, and there is no certainty that the preliminary economic assessment will be realized. There is no mineral reserve at Mexican Hat at this time. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Over the course of the mine life, 32.7 Mtonnes of mineralized resource is planned for processing out of a total material movement of 93.8 Mtonnes.