Calais Resources Announces Completion of Canadian NI 43-101 Technical Reports
October 31 2011 - 12:27PM
Business Wire
Calais Resources, Inc. (“Calais” or the “Company”)
(Pink Sheets: CAAUF), a development stage mineral
exploration company, is pleased to announce that SRK Consulting
(U.S.), Inc. ("SRK") has completed updated Canadian National
Instrument 43-101 compliant technical reports for each of
Consolidated Caribou Project in Boulder County, Colorado and the
Manhattan Project in Nye County, Nevada (the "Technical
Reports"). The Technical Reports have been filed on SEDAR and
are also available for review on the Calais website
(www.calaisresources.com).
Colorado Assets
Calais’ Colorado mining properties are comprised of a series of
137 patented claims and 105 unpatented claims which cover
approximately 3.5mi2 (2,240ac – 906ha) within the Grand Island
Mining District of Colorado near the town of Nederland, Colorado.
These claims are referred to as the Consolidated Caribou Claims and
include the Caribou Project, and the Cross Project. The Cross
Project has an active Colorado 110 Permit, allowing a small-scale
mining operation of up to 70,000st/yr (63,500t/yr).
The Cross Project has largely been inactive since 1998 due
primarily to a lack of capital funding and a mill to process the
ore. However, before the cessation of operations, significant
underground development was completed exposing mineralized material
on four (4) underground levels in the mine.
Given the existing underground mine development, Calais believes
that the Cross Project has the potential to be brought into
production within a short timeframe. Mineral resources are included
in the updated SRK report.
Mineral Resource
Estimate
The Cross Mine resource estimation is based on information from
116 drillholes totaling 62,384ft combined with an additional 499
continuous channel samples totaling 1,863ft. The drillhole database
was completed and verified by SRK personnel and is determined to be
of high quality. The resources estimation employed wire frame
solids shapes of the 14 main veins and a categorical indicator
technique to develop a 2.0g/t Au grade shell for mineralization not
encompassed by the main veins. The model blocks are uniform 3.0ft x
3.0ft x 3.0ft cubes and all block grade estimates were made using
3.0ft downhole composites. An Ordinary Kriging grade estimation
algorithm was employed using a minimum of one and a maximum of
eight composites with no octant search restriction and no
restriction on the number of drillholes. The results of the
resource estimation provided a CIM classification Indicated Mineral
Resources of 33kst of material with an average grade of 0.360oz/st
Au and an additional Inferred Mineral Resource of 32kst of material
with an average grade of 0.335oz/st Au both using a 0.2oz/st Au
cut-off. The quality of the Cross Mine drilling and sampling data
is very good and the mineral resource was classified mainly
according to the general drillhole spacing and underground sampling
on the veins.
Cross Mine Resource Statement (As of February 8,
2011)
Classification Resource
(st)
Grade
Au (oz/st)
Grade
Ag (oz/st)
Contained
Au (oz)
Contained
Ag (oz)
Indicated 33,000st
0.360oz/st
5.4oz/st 11,824
175,170 Metric units
29,900t
12.3g/t 185g/t
Inferred 32,000st
0.335oz/st
2.2oz/st 10,850
71,860 Metric units
29,000t
11.5g/t 75g/t
The Company plans on starting the core drilling program on the
surface and underground as soon as funds are available. The results
of this core drilling program as well as the restart of the Cross
Mine operations will be used to further update the resource from
time to time.
Nevada Assets
The Company's Manhattan Project is located in Nye County in
south central Nevada within the historic Manhattan Mining District.
The project is centered around the historic White Caps Mine that
operated continuously from 1906 until 1942, and intermittently from
1942 until 1964. During the period from 1907 to 1925, the mine is
reported to have produced 194,400oz of gold. An underground fire in
1964 burned down the main shaft and the mine was closed.
Overall, the property is comprised of 203 unpatented
(approximately 3,370ac - 1,364ha)) and 28 patented (approximately
428ac - 173ha) lode claims totaling 3,798ac (1,537ha). Calais owns
or controls 100% of the project and can conduct mining and
exploration on these claims.
Qualified Person
Bart Stryhas, PhD, CPG
Dr. Bart Stryhas is an employee of SRK Consulting and is
responsible for all sections of the reports. He has thoroughly
reviewed the historical data files and provided a compilation of
the historical work. He has visited both properties. Dr. Stryhas is
a “Qualified Person” as defined by NI 43-101 and is the “Qualified
Person” for the Technical Reports. This press release has also been
prepared under the guidance of Dr. Stryhas.
Reliance on Technical
Disclosure
R. David Russell, the Company’s Chairman and CEO, is quoted in a
transcript of an interview with Live Trading News, dated February
15, 2011. However no reliance shall be placed on such comments,
which were made without the benefit of the updated Technical
Reports. Investors are encouraged to rely only on the Technical
Reports in respect to any and all scientific and technical
disclosure concerning the Company’s properties.
About Calais
Calais Resources is an exploration and development company which
owns and operates the Cross and Caribou gold and silver mine
operations in Colorado and the White Caps mine operation in
Manhattan, Nevada. The Company is currently in the initial stages
of evaluating the reopening of the fully permitted Cross Mine,
which includes resuming underground exploration and preliminary
production activities in Colorado and surface exploration in
Nevada. Calais’ common stock is currently quoted on the OTC Pink
under the symbol CAAUF.
NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements contained herein and subsequent oral
statements made by and on the behalf of the Company may contain
“forward-looking statements”. Such forward-looking statements may
be identified by words such as “intends,” “anticipates,” believes,”
“expects,” and “hopes” and includes, without limitation, statements
regarding the Company’s ability to bring the Cross Project into
commercial production in a short time period or at all, to convert
mineralization into reserves, results of exploration and plan of
business operation. Factors that could cause actual results to
differ materially include, among others, those set forth in the
Company’s Annual Report on Form 10-k for the fiscal year ending May
31, 2011 and other filings with the Securities Exchange Commission
(SEC), under the caption of “Risk Factors.” Many of these factors
are outside the control of the Company. Investors are cautioned not
to put undue reliance on forward-looking statements, except as
otherwise required by applicable securities statutes or
regulations.
CAUTIONARY STATEMENTS FOR U.S.
INVESTORS
The resources estimates referred to in this press release have
been prepared in accordance with the standards of the Canadian
Institute of Mining, Metallurgy and Petroleum referred to in
Canadian National Instrument 43 101 ("NI 43-101"). These standards
are different from the standards generally permitted in reports
filed with the SEC. Under NI 43-101, Calais reports measured,
indicated and inferred resources, measurements which are generally
not permitted in filings made with the SEC. The estimation of
measured resources and indicated resources involve greater
uncertainty as to their existence and economic feasibility than the
estimation of proven and probable reserves. U.S. investors are
cautioned not to assume that any part of the measured or indicated
resources will ever be converted into economically mineable
reserves. The estimation of inferred resources involves far greater
uncertainly as to their existence and economic viability than the
estimation of other categories of resources.
Canadian regulations permit the disclosure of resources in terms
of “contained ounces”; however, the SEC only permits issuers to
report “mineralized material” in tonnage and grade without
reference to contained ounces. Under U.S. regulations, the tonnage
and grade described herein under the “measured” and “indicated
“categories would be characterized as mineralized material. The
disclosure herein is being made by Calais to provide a means of
comparing its project to those of other companies in the mining
industry, many of which are Canadian and report pursuant to NI
43–101, and to comply with applicable disclosure requirements.
U.S. investors should be aware that Calais has no “reserves” as
defined by Industry Guide 7 and are cautioned not to assume that
any part or all of the potential target mineralization will ever be
confirmed or converted into “reserves” that are compliant with
Industry Guide 7.