Symbol: TSX: ME
TORONTO,
Jan. 17, 2019
/CNW/ - Moneta Porcupine Mines
Inc. (TSX:ME) (OTC:MPUCF) (XETRA:MOP) ("Moneta" or the
"Company") is pleased to provide an updated mineral resource
estimate for the gold deposits within its 100% owned Golden Highway
Project, located 110 km east of Timmins,
Ontario (see Table 1).
Highlights of Updated Mineral Resource
Estimate:
- A total of 383,400 ounces (oz) at a grade of
4.61 grams per tonne (g/t) Gold (Au) in the indicated
category
- A total of 873,200 oz at a grade of 4.21 g/t Au
in the inferred category
- Significant increase in the grade of the Golden
Highway Project mineral resource estimate over previous
estimates
- All new mineral resources reported are estimated
using a cut-off grade of 3.00 g/t Au, assuming underground
extraction
- The updated resource estimate is constrained
within wireframes based on the new geological
interpretation
The updated mineral resource was independently prepared by
Micon International in accordance with National Instrument 43-101
("NI43-101") effective January 16,
2019. A compliant technical report will be filed within 45
days of the date of this release. The deposits have shown a
significant improvement in grade over the previous resource
estimate and remain open. Moneta has identified several adjacent
targets at surface displaying the same style and tenor of
mineralization within the Golden Highway Project which were not
included in this mineral resource update.
Gary O'Connor, CEO &
Chief Geologist commented, "We are encouraged by the significant
increase in grade and the overall size of the updated mineral
resource estimate based on the new geological interpretation for
the Golden Highway Project. The program has been successful in
defining higher value ounces in high-grade resources able to be
extracted by underground methods. Previous resources were designed
for large open pit extraction and not geologically constrained. The
new initial resource will form an excellent basis to continue to
expand and increase the quality of the resources. Most of the veins
modelled remain open and are not fully drill defined. Internal
high-grade plunging zones have been identified within veins that
require drill testing. New near surface targets have been located
with historical drilling which have intersected the same style of
mineralization in numerous locations. We are confident of the
ability to continue to increase the grade and size of the
resource."
Table 1: Mineral Resource Estimate by Deposit- Golden
Highway Project
|
Deposit
|
|
Indicated
|
|
|
Inferred
|
|
Name
|
Tonnes
|
Grade
|
Ounces Au
|
Tonnes
|
Grade
|
Ounces Au
|
|
(t)
|
(g/t)
|
(oz)
|
(t)
|
(g/t)
|
(oz)
|
South West
|
2,007,000
|
4.63
|
298,900
|
5,583,000
|
4.21
|
755,800
|
Windjammer
South
|
364,000
|
4.19
|
49,100
|
173,000
|
4.59
|
25,500
|
"55"
|
216,000
|
5.11
|
35,400
|
327,000
|
4.31
|
45,300
|
Discovery
|
-
|
-
|
-
|
108,000
|
4.12
|
14,300
|
Windjammer
North
|
-
|
-
|
-
|
265,000
|
3.80
|
32,400
|
Total
|
2,587,000
|
4.61
|
383,400
|
6,456,000
|
4.21
|
873,200
|
|
Notes:
|
1
|
Mineral Resource
Estimates are reported at a cut-off grade of 3.00 g/t Au for an
underground mining scenario. The cut-off grade was calculated at a
gold price of US$1,250 per ounce and an exchange rate of USD$/CDN$
of 0.75
|
2
|
The resource estimate
is supported by statistical analysis with different high-grade
capping applied to each of the deposits ranging from 13.0 g/t Au to
37.0 g/t Au on one (1) metre composites
|
3
|
The mineral resources
presented here were estimated with a block size of 5mx5mx10m
utilizing sub-blocks as required and constrained within geological
wire-frames with a minimum width of 1.50m. The cells are estimated
by Ordinary Kriging using the appropriate variogram model of each
structure with individual search ellipsoids generally varying from
70x70x20m to 100x100x20m within each structure
|
4
|
The mineral resources
presented here were estimated by Micon International using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
standards on Mineral Resources and Reserves definitions and
guidelines
|
5
|
Mineral resources
which are not mineral reserves do not have demonstrated economic
viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, market or
other relevant issues
|
6
|
Indicated Mineral
resources were classified using a 50 m search ellipse and a minimum
of three drill holes
|
7
|
The quantity and
grade of reported Inferred Resources are uncertain in nature and
there has not been sufficient work to define these Inferred
Resources as Indicated or Measured Resources
|
8
|
There are no
historical underground voids from mining including shafts, ramps or
drifts in any of the deposit areas
|
9
|
Tonnage estimates are
based on bulk densities individually measured and calculated for
each of the deposit areas, averaging 2.78 tonnes per cubic metre
for the total resource. Resources are presented as undiluted and in
situ
|
10
|
This mineral resource
estimate is dated January 16, 2019. The effective date for the
drill-hole database used to produce this updated mineral resource
estimate is November 19, 2018. Tonnages and ounces in the tables
are rounded to the nearest thousand and hundred respectively.
Numbers may not total due to rounding
|
11
|
West Block mineral
resources were not included due to a lack of drilling
|
12
|
Additional details
will be provided in the pending 43-101 technical report
|
Table 2: Mineral Inventory Sensitivity by Cut-Off
Grade- Golden Highway Project
Cut-Off
|
|
Indicated
|
|
|
Inferred
|
|
Grade
|
Tonnes
|
Grade
|
Ounces Au
|
Tonnes
|
Grade
|
Ounces Au
|
(g/t)
|
(t)
|
(g/t)
|
(oz)
|
(t)
|
(g/t)
|
(oz)
|
4.50
|
966,929
|
6.33
|
196,663
|
1,706,160
|
5.48
|
300,740
|
4.00
|
1,326,092
|
5.76
|
245,623
|
3,499,852
|
4.87
|
548,450
|
3.50
|
1,940,391
|
5.12
|
319,332
|
4,792,856
|
4.57
|
704,136
|
3.00
|
2,926,889
|
4.48
|
422,007
|
7,050,846
|
4.13
|
936,553
|
2.50
|
4,502,510
|
3.87
|
560,013
|
10,932,459
|
3.63
|
1,276,929
|
2.00
|
7,352,539
|
3.23
|
763,695
|
18,055,987
|
3.07
|
1,784,704
|
1.50
|
12,666,444
|
2.60
|
1,058,641
|
27,776,693
|
2.61
|
2,331,599
|
1.00
|
20,528,224
|
2.08
|
1,373,708
|
41,086,071
|
2.17
|
2,862,682
|
0.50
|
27,000,469
|
1.77
|
1,533,384
|
54,789,734
|
1.81
|
3,196,824
|
Note: The mineral inventory used in the sensitivity
analysis table at various cut-off grades have not been corrected to
remove isolated blocks which do not have a reasonable chance of
extraction. The removal of isolated blocks has been conducted for
the mineral resource estimate reported at a 3.00 g/t Au cut-off
(Table 1) resulting in a loss of 9.8% of tonnes and 7.6% of ounces
from the mineral inventory at this cut-off
grade.
A total of 71 geological wireframes were constructed to
constrain the resource estimate based on detailed geological and
structural interpretation with a minimum true thickness of
1.50 m. The estimate only considered
mineralized zones potentially minable by underground methods at a
cut-off grade of 3.0 g/t Au. The cut-off calculation is based on
the parameters listed in Table 3 below:
Table 3: Golden Highway Project, Parameters Used for
Underground Mineral Resource Estimate
|
|
|
Parameters
|
Unit
|
Value
|
Gold Price
|
US$/oz
|
1,250
|
Exchange
Rate
|
US$/C$
|
0.75
|
Mill
Recovery
|
%
|
93
|
Sell Cost
|
C$/oz
|
5
|
Royalties
|
%
|
0
|
Mining
Cost
|
C$/t
milled
|
74
|
G&A
Cost
|
C$/t
milled
|
15
|
Processing
Cost
|
C$/t
milled
|
45
|
Transportation
|
C$/t
milled
|
10
|
Environment
|
C$/t
milled
|
5
|
Calculated Cut-Off
Grade
|
Au g/t
|
3.00
|
Figure 1: Golden Highway Project, Mineral Resource
Location Map
http://www.monetaporcupine.com/i/maps/2019-01-17_NR-Fig1.jpg
Figure 2: Golden Highway Project, Cross Section along
BIF contact
http://www.monetaporcupine.com/i/maps/2019-01-17_NR-Fig2.jpg
Qualified Persons
The technical
content of this press release has been reviewed and approved by B.
Terrence Hennessey, P.Geo. of Micon
International Limited and Gary
O'Connor, FAusIMM of Moneta who are deemed qualified persons
as defined by National Instrument 43-101. Mr. Hennessey, P.Geo. of
Micon is responsible for the completion of the updated mineral
resource estimation.
QA/QC Procedures
All core drilling
conducted by Moneta is oriented. Half sawn drill core is sent to
ALS Canada Inc. for drying and crushing to -2 mm, with a 1.00 kg
split pulverized to -75 µm (200#). A 50 g charge is Fire Assayed
and analyzed using an AAS finish for Gold. Samples above 10.00 g/t
Au are analyzed by Fire Assay with a gravimetric finish and
selected samples with visible gold or high-grade mineralization are
assayed by Metallic Screen Fire Assay on a 1.00 kg sample. Moneta
inserts independent certified reference material and blanks with
the samples, and assays routine pulp repeats and coarse reject
sample duplicates with the samples, as well as completing
third-party check assays at Activation Laboratories Ltd.
About Moneta
The Company holds a
100% interest in 5 core gold projects strategically located along
the Destor-Porcupine Fault Zone in the Timmins Gold Camp with over
85 million ounces of past gold production. The projects consist of
the Golden Highway, North Tisdale,
Nighthawk Lake, Kayorum and Denton projects. The Golden Highway
Project covers 12 kilometres of prospective banded iron formation
in contact with Timiskaming clastic sediments within a
transgressive basin located along the DPFZ.
The Company's public documents may be accessed at
www.sedar.com. For further information on the
Company, please visit our website at
www.monetaporcupine.com or email us at
info@monetaporcupine.com.
This news release includes certain forward-looking
information and forward-looking statements, collectively
"forward-looking statements" within the meaning
of applicable Canadian securities legislation.
Forward-looking statements are frequently identified by
such words as "may", "will", "plan", "expect", "anticipate",
"estimate", "intend" and similar words referring to future events
and results. Forward-looking statements include, but are not
limited to information with respect to the future performance of
the business, its operations and financial performance and
condition such as the Company's drilling program and the timing and
results thereof; and the ability of the Company to finance and
carry out its anticipated goals and objectives.
Forward-looking statements are based on the current
opinions and expectations of management. All forward-looking
information is inherently uncertain and subject to a variety of
assumptions, risks and uncertainties, including the speculative
nature of mineral exploration and development, fluctuating
commodity prices, competitive risks and the availability of
financing, as described in more detail in our recent securities
filings available
at www.sedar.com.
Actual events or results may differ materially from those projected
in the forward looking-statements and we caution against placing
undue reliance thereon. We assume no obligation to revise or update
these forward-looking statements.
SOURCE Moneta Porcupine Mines Inc.