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Montero Files NI 43-101 Resource Estimate on the Uis Lithium-tin Tailings Project in Namibia on Sedar

March 12, 2019

Toronto, Ontario – March 12, 2019: Montero Mining and Exploration Ltd. (TSX.V: MON) (“Montero”) has filed its maiden lithium and tin resource estimate for the Uis Tailings Project (“Project”) on SEDAR and posted to the Montero website. The Project is located in Namibia and consists of large coarse sands and fine slimes tailings waste deposits on surface. The tailings material represents the waste processed material derived from the Uis pegmatite tin mine, the largest tin mine in Africa, prior to its closure in 1990. The independent estimate was prepared by Deloitte Technical Mining Advisory (“Deloitte”).

The NI 43-101 Mineral Resource estimate is based on the preliminary drilling program of 63 air core drill holes on the coarse and fine tailings waste material. The quantity and grade of coarse and fine material for six tailings deposits (Zones A to E) were estimated by ordinary kriging. Two commodities were considered in the estimation of the Mineral Resources, lithium (Li2O) and tin (SnO2). Zone A represents the largest tailings deposit and contains coarse tailings material, whilst Zones B to E and Zone A fines represents the fine tailings material.

A total Inferred Mineral Resource of 14.4 million tonnes at 0.37% LiO2 and 17.1 million tonnes at 0.05% SnO2 is estimated (Table 1). Insufficient test work on lithium extraction has been completed on the 2.71 million tonnes of fine tailings material (Zones A4, B, C, D and E) to include this lithium in the resource estimate at this time. Commodity price, product, mining and processing costs and recoveries and mining parameters and assumptions informed the determination of cut-off grades.

The inferred mineral resource estimate at Uis Tailings Project is encouraging as it supports the presence of a significant quantity of lithium and tin material that is amenable to extraction.

Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, “Montero’s initial Resource estimate is reported as 14.4 million tonnes at 0.37% lithium as Li2O and 17.1 million tonnes at 0.05% tin as SnO2. This represents 53,280 tonnes of lithium as Li2O and 8,550 tonnes of tin as SnO2. Further in-fill drilling and metallurgical test-work will be required to upgrade the Inferred resource to an Indicated resource. Montero is evaluating early production scenarios with potential partners in order to meet expected demand with the growth of EV’s and battery metals requirements.”

The independent Mineral Resource estimate was prepared according to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practices Guidelines by independent qualified person (QP) Dr. Heather King, Pr. Sci. Nat. of Deloitte assisted by other Independent QP’s; Mr. Nico Scholtz, Pr. Sci. Nat. (geology) and Mr. Peter Hand, FSAIMM (metallurgy). The Uis Tailings Inferred Mineral Resource estimate is preliminary in nature and is considered too speculative geologically to have the economic considerations applied to it that would enable the Resource to be categorized as a Mineral Reserve. The Inferred Mineral Resource estimate at Uis Tailings Project is encouraging as it supports the presence of a lithium and tin material that test work has shown to be amenable to extraction.

The report details the following Inferred Mineral Resources

Table 1. Inferred Mineral Resource Coarse material (Zone A) Li2O and SnO2 at a cut-off 0.35 % Li2O

Table 2. Inferred Mineral Resource Fines material (Zones B to E and Zone A Fines) at a cut-off 47ppm SnO2


Notes:

  • The effective date for the Mineral Resource estimates is 14 October 2018.
  • Mineral Resource estimate reflects 100% of material/asset; Montero has a binding Heads of Agreement to purchase 95% of the Uis Tailings material
  • The Mineral Resource for Li2O in the coarse tailings material (Zone A) is based on a grade cut-off of 0.35% Li2O at 5% product grade.
  • The Mineral Resource for SnO2 in the fine tailings deposits (Zones B to E and Zone A4) is based on a grade cut-off of 47ppm SnO2 * No lithium resources have been reflected in the fine tailings material due to insufficient or no test work on his material. (Zone B to E and Zone A4)
  • As the process flow for the material will extract the SnO2 via shaking tables before the Li2O circuit for the Zone A coarse material, no cut-off has been applied to the SnO2
  • A Mineral Resource for Li2O is not reported for the fines material (Zones B to E and Zone A4) as the average Li2O grade of the fines material does not hurdle the cut-off of 0.82% Li2O
  • The product price applied to the coarse and fine tailings material was the Li2O spodumene price of US$925/t
  • A SnO2 price of USD23,500/t was applied, informed by Energy & Metals Consensus Forecast information
  • A processing recovery of 70% for Li2O of the coarse material was applied and a 30% recovery for the fines material of Zones B to E
  • A processing recovery of 60% for SnO2 for both the coarse and fine material was applied
  • The QP for the Mineral Resources considers the existing estimation database and information available from Montero and the QP Geology and QP Metallurgy to be adequate to support an Inferred Mineral Resource. The Inferred confidence is due to insufficient technical and economic parameters determined at the time of the estimate to enable a high confidence in the evaluation of eventual economic viability

Metallurgical test work on samples from the property and in-fill drilling on the tailings waste material is planned. These results will form the basis for an updated Mineral Resource estimate and further technical studies.
Qualified Person’s Statement
This press release was reviewed and approved by Mr. Mike Evans, M.Sc. Pr. Sci. Nat., who is a qualified person for the purpose of National Instrument 43-101 and a Consulting Geologist to Montero. A review was also undertaken by Dr Heather King, B.Sc., M.Sc. Pr. Sci. Nat., Mr. Nico Scholtz, B.Sc. M.Sc. Pr. Sci. Nat. and Mr. Peter Hand, B.Sc. (Hons), FSAIMM as Qualified Persons for the purpose of National Instrument 43-101.

About Montero
Montero is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties in Africa. Currently these include lithium and tin in Namibia, phosphates in South Africa and rare earth elements in Tanzania. Montero is reviewing and evaluating other opportunities from its operating base in South Africa. Montero trades on the TSX Venture Exchange under the symbol MON

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For more information, contact:

Montero Mining and Exploration Ltd.
Dr. Antony Harwood, President and Chief Executive Officer
Email: ir@monteromining.com
Tel: +1 416 840 9197
Fax: +1 866 688 4671
www.monteromining.com

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements, projections and estimates with respect to the Offering. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Such information is based on information currently available to Montero and Montero provides no assurance that actual results will meet management's expectations. Forward-looking information by its very nature involves inherent risks and uncertainties that may cause the actual results, level of activity, performance, or achievements of Montero to be materially different from those expressed or implied by such forward-looking information. Actual results relating to, among other things, approval and completion of the Offering whether or under the terms described above or not, results of exploration, project development, reclamation and capital costs of Montero’s mineral properties, and Montero’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Montero’s activities; and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Montero’s forward-looking statements. These and other factors should be considered carefully and accordingly, readers should not place undue reliance on forward-looking information. Montero does not undertake to update any forward-looking information, except in accordance with applicable securities laws.