VANCOUVER, Oct. 16, 2017 /CNW/ - Leagold Mining Corporation
(TSX:LMC; OTCQX:LMCNF) ("Leagold" or the "Company") reports an
update of the Bermejal Underground mineral resource estimate
containing Measured and Indicated resources of 9.9 million tonnes
at a grade of 6.2 grams per tonne ("gpt") for 1.97 million ounces,
plus Inferred resources of 4.8 million tonnes at a grade of 5.4 gpt
for 0.82 million ounces (Table 1). The database used for the
updated estimate includes an additional 62 drill holes (16 drilled
in 2016 and 46 from the 2017 drill program), as compared to the
mineral resource estimates as of December
31, 2016. The majority of the remaining 67 holes
planned for the 2017 drill program are infill and will focus on
upgrading additional Inferred resources to Indicated
classification.
Neil Woodyer, CEO stated: "This
updated resource estimate includes a 94% increase in the Measured
and Indicated resources and underscores the magnitude of the oxide
mineralization of the Bermejal Underground deposit. In addition to
converting the previously estimated Inferred resources of 678 koz
to mostly Indicated resources, the program has also added 820 koz
to the new Inferred resource estimate (Figure 1). The exploration
success at Bermejal Underground, which drives this resource update,
also supports our development plan to expand Los Filos' gold
production rate. The ramp to access the Bermejal Underground
deposit recently commenced and has advanced 27 metres as of
October 13, 2017."
Table 1: Bermejal Underground Mineral Resource
Estimate1,2,3 by Classification (SRK)
Classification
|
Tonnes
(kt)
|
Au Grade
(gpt)
|
Au Contained
(koz)
|
Ag Grade
(gpt)
|
Ag Contained
(koz)
|
Measured
|
332
|
7.83
|
84
|
28.49
|
304
|
Indicated
|
9,607
|
6.09
|
1,883
|
21.91
|
6,768
|
Measured and
Indicated
|
9,939
|
6.15
|
1,966
|
22.13
|
7,072
|
Inferred
|
4,755
|
5.36
|
820
|
16.09
|
2,460
|
1
Effective date is August 31, 2017.
2 Mineral Resources are reported using a cut-off grade
of 3.0 gpt and do not include recovery or dilution factors.
3 Tonnages are rounded to the nearest 1 kt, grades are
rounded to two decimal places; rounding, as required by reporting
guidelines, may result in apparent summation
differences.
|
Figure 1: Change in the Bermejal Underground Mineral Resource
Estimate
Figure 2: Plan View Showing the Bermejal Underground Mineral
Resource Estimate by Classification
Figure 3: Section View Facing East of the Bermejal
Underground Mineral Resource Estimate
Available data for the resource estimate includes 505 drill
holes totalling 195,261 metres. Drill hole spacing is roughly
35 metres for Indicated resources and less than 25 metres for
Measured resources. The mineral resource was prepared in
Datamine using dynamic anisotropy and ordinary kriging and
interpolated into 3 metre x 3 metre x 3 metre blocks and reported
at a 3 gpt Au cut-off. The mineral resource was prepared by
Leagold and reviewed and validated by SRK (Gilles Arseneau, P.Geo.) as the Independent
Qualified Person.
Resources were classified as Measured, if they were within 25
metres of three drill holes. Blocks were classified as Indicated,
if they were within 50 metres of two drill holes. All other blocks
within 100 metres of two drill holes were classified as
Inferred.
The Bermejal Underground deposit has a central portion with a
grade of 7.2 gpt and containing approximately 60% of the Measured
and Indicated resources. This high-grade zone ranges from 20
to 60 metres wide. The eastern and western flanks of Bermejal
Underground provide extensive areas of mineralization along the
contact of the Bermejal intrusive with surrounding carbonate
rocks. These areas have more moderate grades ranging from 4.1
to 5.3 gpt and widths that are from 3 to 25 metres.
The mineralization has been drill tested along approximately
1,600 metres along the strike of the intrusive contact and has a
vertical depth extent of over 800 metres (Figures 2 and 3).
Bermejal Underground Expansion Project Update
Development of an exploration portal and ramp recently commenced
(see news release dated September 25,
2017) and the ramp has advanced 27 metres as of October 13, 2017. The ramp will provide
access to the eastern and central portions of the deposit and will
enable additional exploration, allow collection of material for
confirmatory metallurgical testwork for heap leaching, demonstrate
the minability of Bermejal Underground, and advance the project
towards declaration of reserves.
The Bermejal Underground drilling program is now over 67%
complete with 37,672 metres drilled of the planned 56,000 metres
(as of October 13, 2017). A
total of 70 of the planned 113 holes have been drilled. The
drilling program is expected to be completed within 2017 and the
additional drill hole results will be incorporated in an updated
resource estimate.
The Measured and Indicated mineral resources are part of the
engineering and mine design work being conducted for Bermejal
Underground and will form the basis of the mineral reserves which
will be reported in Q1 2018. An updated site wide technical
report by SRK will be submitted in Q2 2018.
Qualified Persons
Gilles Arseneau, Ph.D., P. Geo.,
Associate Consultant with SRK, is an independent Qualified Person
as defined by NI 43-101, and has reviewed and approved the updated
mineral resource estimate as reported in this news release.
Doug Reddy, P.Geo, Leagold's
Senior Vice President – Technical Services, is a Qualified Person
under NI 43-101, and has reviewed and approved the technical
contents of this news release on behalf of Leagold.
Los Filos Mine employs industry standard drilling and sampling
procedures. All exploration samples are sent to an ALS Global
facility in Guadalajara for
preparation and Vancouver for
analyses by fire assay and ICP. A full quality control and
assurance program and protocols are in place and are aligned with
best practices including regular insertion of certified reference
standards, blanks, and duplicates.
About Leagold Mining Corporation
Leagold is building a new mid-tier gold producer with a focus on
opportunities in Latin America.
Leagold is based in Vancouver,
Canada and is listed on the TSX under the trading symbol
"LMC" and trades on the OTCQX market as "LMCNF". The recent
acquisition of the Los Filos Mine, a low-cost gold producer in
Mexico, provides an excellent
platform for growth.
This news release contains "forward-looking statements" and
"forward looking information" (as defined under applicable
securities laws), including but not limited to plans for future
development of the Los Filos Mine. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "expects", "expected", "budgeted", "forecasts"
and "anticipates". Forward-looking statements and information,
while based on management's best estimates and assumptions, are
subject to risks and uncertainties that may cause actual results to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks
related to the Los Filos Mine, risks related to the successful
integration of the acquisition; risks related to international
operations; risks related to general economic conditions and credit
availability, actual results of current exploration activities,
unanticipated reclamation expenses; changes in project parameters
as plans continue to be refined; fluctuations in prices of metals
including gold; fluctuations in foreign currency exchange rates,
increases in market prices of mining consumables, possible
variations in ore reserves, grade or recovery rates; failure of
plant, equipment or processes to operate as anticipated; accidents,
labour disputes, title disputes, claims and limitations on
insurance coverage and other risks of the mining industry; delays
in the completion of development or construction activities,
changes in national and local government regulation of mining
operations, tax rules and regulations, and political and economic
developments in countries in which Leagold operates. Although
Leagold has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. The forward-looking statements and
forward-looking information are made as of the date hereof and
Leagold disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the
forward-looking statements or forward-looking information contained
herein to reflect future results. Accordingly, readers should not
place undue reliance on forward-looking statements and information.
Please refer to Leagold's most recent filings under its profile at
www.sedar.com for further information respecting the risks
affecting Leagold and its business.
SOURCE Leagold Mining Corporation