Cream Minerals Announces an Updated Resource Estimate for the Nuevo Milenio Silver-Gold Property and Filing of a Technical Re...
March 25 2013 - 8:12PM
Marketwired Canada
Cream Minerals Ltd. (TSX VENTURE:CMA)(OTCBB:CRMXF)(FRANKFURT:DFL) ("Cream" or
the "Company") announces the completion of an updated Mineral Resource estimate
at the Company's 100% owned Nuevo Milenio Silver-Gold Project ("Nuevo Milenio")
in Nayarit State, Mexico (the "Independent Mineral Resource Estimate").
Economically interesting epithermal silver-gold mineralization of the low
sulphidation type occurs in steeply dipping, laminated to vuggy quartz veins and
stockworks that are exclusively hosted by a lapilli tuff-agglomerate formation.
Surface mapping has identified numerous vein-systems, Dos Hornos 1 and 2, Veta
Tomas, Once Bocas, Cafetal and Chacuaco, which define three continuous
structures striking northwest to southeast across the property. The structures
that control mineralization extend beyond their explored length and pass under
younger volcanic tuffs and flows which have not been explored in any detail.
Disseminated mineralization occurs with variable amounts of fine-grained
sulphide, mainly pyrite, which become scarcer in the upper portions of the
geothermal system. The near-surface portions of the deposits were mined during
the Spanish colonial period.
The Independent Mineral Resource Estimate replaces in its entirety all previous
resource estimates filed by Cream and the previous resource estimates can no
longer be relied upon. The Current Mineral Resource is contained in an
independent technical report filed on SEDAR on March 25, 2013 in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral Projects (the
"2013 Report"). The 2013 Report replaces the technical report filed on October
2, 2012, (the "2012 Report"). The 2013 Report addresses the concerns raised by
the British Columbia Securities Commission with respect to the 2012 Report as
outlined in the Company's news release dated October 23, 2012.
Watts Griffis and McOuat Limited ("WGM") of Toronto, Ontario authored the 2013
Report. WGM is Canada's longest running independent firm of geological and
mining consultants providing value-added professional services to the global
mineral resource industry. WGM's expertise includes Mineral Resource and Reserve
estimates, NI 43-101 and JORC technical reports, project management, property
valuations and due diligence reviews.
Independent Mineral Resource Estimate Summary
The 2013 Report by WGM provides an estimate of the Current Mineral Resources on
Cream's Nuevo Milenio property with individual estimates for each of the Dos
Hornos 1, Dos Hornos 2, Veta Tomas and Once Bocas North zones. These estimates
incorporate both gold and silver mineralization and are based on the drill hole
database spanning approximately 10 years of drilling. The estimates were
prepared from a polygonal model using a C$:US$ exchange rate of par (1:1) and on
the following metal prices in US dollars per ounce: Au at $1635.00 and Ag at
$31.50 as established at the close of trading on 7 February, 2013. Gold and
silver assays and metal prices were also used to calculate equivalent-silver
grades. WGM's review of the assay data indicates that extreme high-grade assays
(nuggets) are rare in the assay database. High grade silver assays were cut to
1,000 g Ag/t. No assay cutting was required for gold values. A minimum true
thickness of 1.5 metres (5.7 feet) was imposed on intersections to qualify as
Mineral Resources. WGM's base case estimate of the Mineral Resources used a
minimum cut-off grade of $75 contained value in silver + gold. The resources
were estimated without consideration for metal recoveries and were classified in
compliance with NI 43-101. The Mineral Resources for the project in accordance
with WGM's base case cut-off are summarized as follows.
Summary of Nuevo Milenio Project Mineral Resource Estimates
(using grade cut-off equivalent to US $75/tonne Au-Ag value)
-------------------------------------------------------------------------
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Zone and Equivalent
Resource Thickness Average Silver
Class Tonnes (avg. m.) Grade Grade
------------------------------------
g g AgEq
Ag/t Au/t (g/t)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
DOS HORNOS 1
Indicated
Resources 268,116 4.80 164 0.66 198
Inferred
Resources 80,594 4.60 155 0.75 194
DOS HORNOS 2
Indicated
Resources 335,887 7.92 124 1.00 175
Inferred
Resources 183,107 5.79 107 1.00 164
VETA TOMAS
Indicated
Resources 278,967 5.70 173 0.87 199
Inferred
Resources 156,185 4.76 126 0.82 166
ONCE BOCAS NORTH
Indicated
Resources 223,783 8.95 112 0.63 145
Inferred
Resources 117,949 9.68 119 0.70 155
ALL ZONE SEGMENTS
Indicated
Resources 1,106753 6.81 144 0.81 181
Inferred
Resources 537,835 6.17 122 0.84 167
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Notes:
1. Mineral Resources which are not Mineral Reserves do not have demonstrated
economic viability. Mineral Resources may be materially affected by
environmental, permitting, legal, title, taxation, socio-political, marketing,
or other relevant issues.
2. The quantity and grade of reported Inferred Resources in this estimation are
uncertain in nature and there has been insufficient exploration to define these
Inferred Resources as an Indicated or Measured Mineral Resource and it is
uncertain if further exploration will result in upgrading them to an Indicated
or Measured Mineral Resource category.
3. The Mineral Resources were estimated using the Canadian Institute of Mining,
Metallurgy and Petroleum standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council December 11, 2005.
4. S.G. of 2.65 tonnes/m3 was used.
5. Tonnage and contained Ag and Au are rounded to nearest thousand or
thousandth. Totals may not ad up due to rounding.
Sensitivity Analysis
Sensitivity analysis demonstrates that the resources are not greatly affected by
$10 value changes in the cut-off grade. This is a consequence of a general lack
of shoulders to the mineralization on most sections. It is possible that a
substantial reduction of the cut-off grade to, for example $50 of gold and
silver value would bring additional sub-zones into Mineral Resources, however
WGM believes that it would be difficult to mine such grades at a profit.
Additional resources might be forthcoming if those portions of the deposit
amenable to open-cut mining were modelled separately, however it is WGM's view
that such operations would not substantially alter the current resource total
because the average true thickness of all zones contributing to the base case
Mineral Resources is in excess of 6 m.
Al Workman, P.Geo., Vice-President of WGM, is responsible for the Current
Mineral Resource estimate for the Nuevo Milenio Project. Mr. Workman and senior
WGM Associate, Mr. Derek McBride, P.Eng., are the Independent Qualified Persons
within the meaning of National Instrument 43-101 responsible for authoring the
2013 Report. The technical portions of this news release have been reviewed by
Al Workman for accuracy to ensure that the disclosure is complete and not
misleading.
Cream Minerals is a silver-gold exploration company. To learn more about Cream
Minerals please click here: www.creamminerals.com
Christopher Hebb, LLB, Chairman of the Board
Michael E. O'Connor, President & CEO
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking
statements" (collectively, "forward-looking information") within the meaning of
applicable securities laws. Forward-looking information is generally
identifiable by use of the words "believes", "may", "plans", "will",
"anticipates", "intends", "budgets", "could", "estimates", "expects",
"forecasts", "projects" and similar expressions, and the negative of such
expressions. Forward-looking information in this news release include statements
about the updated resource estimate and independent technical report on the
Company's Nuevo Milenio's silver project filed on the date hereof (the
"Report"); the BCSC review of the Report; resolution of the BCSC's issues and
comments with the Report; filing a complaint NI 43-101 technical report;
progress report press releases. Information concerning mineral reserves,
measured mineral resources, indicated mineral resources and inferred mineral
resources also may be deemed to be forward-looking information in that it
reflects a prediction of the mineralization that would be encountered if a
mineral deposit were developed and mined.
In connection with the forward-looking information contained in this news
release, the Company has made numerous assumptions, regarding, among other
things, the geological, metallurgical, engineering, financial and economic
advice that the Company has received is reliable, and is based upon practices
and methodologies which are consistent with industry standards; and the
continued financing of the Company's operations.. While the Company considers
these assumptions to be reasonable, these assumptions are inherently subject to
significant uncertainties and contingencies. Additionally, there are known and
unknown risk factors which could cause the Company's actual results, performance
or achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking information
contained herein. Known risk factors include, among others: fluctuations in
metal prices and currency exchange rates; conditions in the financial markets
and overall economy may continue to deteriorate; uncertainties relating to
interpretation of drill results and the geology, continuity and grade of mineral
deposits; uncertainty of the metallurgical test work; the uncertainty of the
estimates of capital and operating costs, recovery rates, and estimated economic
return; the need to obtain additional financing and uncertainty as to the
availability and terms of future financing; the possibility of delay in
exploration or development programs or in construction projects and uncertainty
of meeting anticipated program milestones; uncertainty as to timely availability
of permits and other governmental approvals.; the ongoing resolution of the
issues raised by the BSCS may have a material adverse effect on the Company's
financial condition and share price and may affect the Company's ability to
raise additional capital on terms acceptable to the Company, or at all.
A more complete discussion of the risks and uncertainties facing the Company is
disclosed in the Company's continuous disclosure filings with Canadian
securities regulatory authorities at www.sedar.com. All forward-looking
information herein is qualified in its entirety by this cautionary statement,
and the Company disclaims any obligation to revise or update any such
forward-looking information or to publicly announce the result of any revisions
to any of the forward-looking information contained herein to reflect future
results, events or developments, except as required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cream Minerals Ltd.
Christopher Hebb, LLB
Chairman of the Board
(604) 687-4622 or Toll Free: 1-888-267-1400
Cream Minerals Ltd.
Michael E. O'Connor
President & CEO
(604) 687-4622 or Toll Free: 1-888-267-1400
(604) 687-4212 (FAX)
info@creamminerals.com
www.creamminerals.com
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