VANCOUVER, BC, June 13,
2022 /CNW/ - Gold Line Resources
Ltd. (TSXV: GLDL) (OTCQB: TLLZF) ("Gold Line" or
the "Company") is pleased to announce its maiden Mineral
Resource Estimate ("MRE") for its Kylmäkangas gold deposit, located
within the Oijärvi Greenstone Belt, Northern Finland.
Highlights
- Total maiden Indicated Resource of 159,000 Au equivalent (AuEq)
ounces: 1.07 Mt grading 4.6 g/t AuEq.
- Total Inferred Resource of 152,000 AuEq ounces: 1.63 Mt grading
2.9 g/t AuEq.
- ignificant expansion potential in multiple directions along
strike, down plunge, down dip and within parallel zones.
The MRE was independently prepared by AFRY Finland Oy in
accordance with the National Instrument 43-101 ("NI 43-101") with
an effective date of 10 June 2022 and
using a database current as of 13 May
2022. Importantly, the newly defined Indicated and Inferred
Resources remain open in several directions at depth, along strike,
and down plunge.
Mr. Adam Cegielski, Chief
Executive Officer of Gold Line Resources commented "The release of
our maiden resources is a significant milestone for the company,
and further demonstrates the discrepancy between our share price
and the intrinsic value of our projects in Scandinavia. We
are incredibly encouraged with the potential for resource expansion
both at depth and along strike of the Kylamakangas deposit in
Finland. The company utilized conservative estimates for both
the price of gold and potential Capex of the project to demonstrate
reasonable prospects for eventual economic extraction."
Table 1: Kylmäkangas Indicated and Inferred Resource as of
10 June 2022
|
|
Average
Value
|
Material
Content
|
Resource
Classification
|
Mass
|
AuEq
|
Au
|
Ag
|
AuEq
|
Au
|
Ag
|
|
Mt
|
g/t
|
g/t
|
g/t
|
thousand t.
oz
|
thousand t.
oz
|
thousand t.
oz
|
Total
Indicated
|
1.07
|
4.6
|
4.1
|
35.4
|
159
|
143
|
1,220
|
Inferred
|
1.63
|
2.9
|
2.7
|
15.2
|
152
|
142
|
795
|
Notes on the MRE for the Kylmäkangas gold deposit:
1.
|
These mineral resources
are not mineral reserves as they do not have demonstrated economic
viability.
|
2.
|
The Qualified Persons
for the current MRE are Mr. Eemeli Rantala, M.Sc., P.Geo and
Mr. Ove Klavér M.Sc., EurGeol both of AFRY. The MRE follows 2014
CIM Definition Standards and the 2019 CIM MRMR Best Practice
Guidelines.
|
3.
|
The qualified persons
are not aware of any known environmental, permitting, legal,
title-related, taxation, sociopolitical or marketing issues, or any
other relevant issue, that could materially affect the potential
development of mineral resources other than those discussed in the
MRE.
|
4.
|
The MRE is located
partially within a Natura 2000 conservation area in which
restrictions on exploration and mining activities apply. Special
permitting for exploration and mining is required.
|
5.
|
The MRE is reported at
a 1.5 g/t cut-off grade for an underground mining
scenario.
|
6.
|
The cut-off grade was
determined using a gold price of USD $1,657 and silver price of USD
$21.52 based on the May 31, 2022 Long-Term CIBC consensus pricing
for precious metals.
|
7.
|
AuEq means the amount
of gold and silver expressed as Troy gold ounces using a gold price
of USD $1,657 and silver price of USD $21.52 based on the May 31,
2022 Long-Term CIBC consensus pricing for precious
metals.
|
8.
|
The resource estimation
is supported by statistical analysis with a high-grade capping of
21 g/t Au and 168 g/t Ag applied to assays composited into one (1)
metre composites.
|
9.
|
The MRE was estimated
using a parent block size of 5mx10mx5 m and sub-blocked to
0.5mx1mx0.5m minimum height (variable height) and constrained
within geological wireframes. Gold was estimated by Inverse
Distance-squared using locally varying search ellipse directions.
Block grades were estimated using a minimum of 3 and a maximum of
20 composite samples with respect to the search distance and
constrained in the block model using distance between
samples.
|
10.
|
A density value of 2.74
g/cm3 was used for mineralization and 2.81
g/cm3 for waste was applied.
|
11.
|
The reasonable prospect
for eventual economic extraction is met by having break- even
cut-off analysis done with estimated CAPEX (US $ 98.4M) & OPEX
(US $/t 75.5) with sensitivity analysis on gold price. Used CAPEX
and OPEX values were taken from similar sized projects located in
Canada and Scandinavia.
|
12.
|
Results are presented
in-situ. Ounce (troy) = metric tons x grade / 31.10348. The number
of tonnes and ounces was rounded to the nearest thousand. Any
discrepancies in the totals are due to rounding effects; rounding
followed the recommendations as per NI 43-101.
|
Mineral Resource Expansion
Potential
There is significant potential to expand the Kylmäkangas mineral
resource in the following areas:
- Near surface exploration infilling the undrilled gap between
lodes 1 and lode 2.
- Down dip extension of known mineralization (the deposit is
drilled only to an average depth of 215
m).
- Down plunge extension of identified stacked high grade ore
shoots plunging shallowly to the northeast.
- North-east extension of Kylmäkangas shear corridor.
- South-west extension of Kylmäkangas shear corridor.
- Parallel structural corridors within belt.
Figure 1:
|
Expansion potential of
the Kylmäkangas deposit
|
Mineral Resource Estimation
Methodology
The MRE for Kylmäkangas is based on 67 historic drill holes
totaling 17,678 m, variably spaced
from 35 m to 75 m in along an approximately 1.5 km strike.
For the deposit, litho-structural, alteration, and 3D modelling
of the mineralized zones were prepared using Leapfrog Geo. Seven
(7) separate mineralized lenses were modelled using the alteration
zones and a calculated gold equivalent (AuEq) value of 1 g/t.
Figure 2:
Mineralization wireframe models of the Klymäkangas deposit showing
(A) plan view and (B) longitudinal view of the mineralized
zones.
|
The resource block model was created using Leapfrog Edge
software. The block sizes for the resource model were selected to
measure 5mx10mx5m and sub-blocked to 0.5mx1mx0.5m minimum height
(variable height), based on the basis of drilling density and
geometry of the ore bodies. Gold grades were calculated using
Inverse Distance-squared interpolation method using hard boundaries
around ore zones.
The mineral resources are categorized as Indicated and Inferred
based on drill spacing and geological and grade continuity. A
maximum distance to the closest composite of 35 m for Indicated and 70
m for Inferred was applied in all zones.
Figure 4: Long sections
showing (A) drill hole spacing, (B) Indicated Resource, (C)
Inferred Resource, and (D) total Indicated and Inferred
Resource
|
The reasonable prospect for an eventual economical extraction is
met by having used reasonable minimum mining width, and Leapfrog
constraining volumes. The cut-off calculation is based on the
assumed parameters listed below:
Parameters
|
Unit
|
Value
|
Gold
Price
|
US$/oz
|
1657
|
Silver
Price
|
US$/oz
|
21.52
|
Metallurgic Recovery
Au
|
%
|
85
|
Metallurgic Recovery
Ag
|
%
|
83
|
Ore Premium Mining
Cost - UG
|
USD /t
milled
|
55.4
|
G&A Cost -
UG
|
USD /t
milled
|
6.7
|
Processing Cost -
UG
|
USD /t
milled
|
13.3
|
Calculated Cut-off
Grade - UG
|
USD /t
milled
|
1.5
|
CAPEX
|
Million USD
|
98.4
|
The sensitivity of the cut-off grades on the mineral resources
of the Kylmäkangas gold deposit is presented below:
Table 2: Kylmäkangas deposit cut-off grade sensitivity based on
gold price of USD $1, 657 and silver
price of USD $21.52.
|
|
|
Average
Value
|
Material
Content
|
Cut-off
g/t
|
Resource
Class
|
Mass
|
AuEq
|
Au
|
Ag
|
AuEq
|
Au
|
Ag
|
Mt
|
g/t
|
g/t
|
g/t
|
thousand t.
oz
|
thousand t.
oz
|
thousand t.
oz
|
1
|
Indicated
|
1.13
|
4.4
|
4.0
|
34.2
|
161
|
145
|
1,244
|
1.5
|
Indicated
|
1.07
|
4.6
|
4.1
|
35.4
|
159
|
143
|
1,220
|
2
|
Indicated
|
0.97
|
4.9
|
4.4
|
37.3
|
153
|
138
|
1,168
|
2.5
|
Indicated
|
0.88
|
5.2
|
4.7
|
39.5
|
146
|
132
|
1,113
|
3
|
Indicated
|
0.76
|
5.5
|
5.0
|
42.1
|
136
|
123
|
1,032
|
3.5
|
Indicated
|
0.65
|
6.0
|
5.4
|
45.0
|
124
|
112
|
938
|
4
|
Indicated
|
0.55
|
6.4
|
5.7
|
47.6
|
112
|
101
|
838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Value
|
Material
Content
|
Cut-off
g/t
|
Resource
Class
|
Mass
|
AuEq
|
Au
|
Ag
|
AuEq
|
Au
|
Ag
|
Mt
|
g/t
|
g/t
|
g/t
|
thousand t.
oz
|
thousand t.
oz
|
thousand t.
oz
|
1
|
Inferred
|
2.16
|
2.5
|
2.3
|
13.2
|
174
|
162
|
917
|
1.5
|
Inferred
|
1.63
|
2.9
|
2.7
|
15.2
|
152
|
142
|
795
|
2
|
Inferred
|
1.14
|
3.4
|
3.2
|
17.3
|
125
|
116
|
637
|
2.5
|
Inferred
|
0.74
|
4.1
|
3.8
|
21.3
|
96
|
89
|
503
|
3
|
Inferred
|
0.53
|
4.6
|
4.3
|
23.9
|
78
|
72
|
406
|
3.5
|
Inferred
|
0.40
|
5.0
|
4.7
|
25.6
|
64
|
60
|
327
|
4
|
Inferred
|
0.30
|
5.4
|
5.1
|
27.2
|
52
|
49
|
263
|
The tables above illustrate the sensitivity of each MRE to
different cut-off grades for a potential underground operation
scenario with reasonable outlook for economic extraction. The
reader is cautioned that the figures provided in these tables
should not be interpreted as a statement of mineral resources.
Quantities and estimated grades for different cut-off grades are
presented for the sole purpose of demonstrating the sensitivity of
the resource model to the choice of a specific cut-off grade.
About the Kylmäkangas
Deposit
The Kylmäkangas gold deposit is a shear zone hosted orogenic
gold occurrence. The deposit is situated within a significant NE-SW
striking shear zone along the contact of syn-kinematic altered
quartz-feldspar-porphyry intrusions and a folded and altered
sequence of mafic and ultramafic mafic volcanic units metamorphosed
to upper greenschist facies. The rocks are strongly sheared and
foliated, and breccia textures are common. Mineralization
consisting of gold, silver and base metals is hosted within massive
quartz veins and breccia zones within the shear corridor.
Hydrothermal alteration minerals associated with the gold
mineralization includes sericite, biotite, carbonate, and
actinolite. Major ore minerals are chalcopyrite, pyrite, galena,
tetrahedrite-tennanite, sphalerite and tellurides.
The main mineralized zone is located in a dilational jog along
the margin of the quartz feldspar porphyry intrusion. Oblique and
extensional veins form stacked en echelon higher grade ore shoots
that plunge approximately 20 degrees to the north east from the
contact with the porphyry. The tectonic style is brittle-ductile
shearing where dilational openings within the shear corridors have
been occupied by quartz veins. A less well-defined
mineralized zone parallel to the south-east of the main mineralized
zone has been identified and will be a target of further
exploration work. In total, seven semi-continuous but separate ore
lodes have been identified and modelled along the 1.5 km strike of
the mineralization to an approximate depth of 215 metres, but 80%
of all contained metal is in lodes 1 and 2.
About the
Oijärvi Greenstone Belt
The Oijärvi Greenstone Belt (OGB) is located in the North
Ostrobothnia region of northern Finland, in the Ii Municipality and is one of
the least studied greenstone belts in Finland.
Figure 5: Location of
the Oijarvi Greenstone Belt and the Kylmäkangas deposit
|
The greenstones of the OGB are situated within the western part
of the Meso-to Neoarchean Pudasjärvi complex. Granitoids and
gneisses of the Archean tonalite-trondhjemite-granodiorite (TTG)
series surround the Oijärvi Greenstone Belt (OGB). Most of the
greenstones are strongly altered and sheared.
Bedrock of the OGB is dominated by late Archean greenstones
forming a discontinuous belt that measures approximately 80 km in
length and varies from 1 to 8 km in width, and branches westwards
from the central portion of the belt for 10 km. Age dating on rocks
from the OGB yield ages of 2.82-2.80 Ga (Agnico Eagle Finland
internal report, 2009), broadly analogous to the age of the Kuhmo,
Tipasjärvi and Ilomantsi greenstone belts. The basic and ultrabasic
volcanic rocks of the OGB have been classified as Fe/Mg-tholeiites,
Cr-basalts, basaltic komatiites, and komatiites. Komatiitic rocks
are mainly located in the southwestern part of the belt
(Kylmäkangas area).
The regional metamorphic grade in the OGB is mid- to upper
greenschist facies, whereas amphibolite facies are more common in
the southern extent (Yli-Ii area). Both extensive and minor shear
zones occur within the OGB. The most significant shear zone is the
north south striking Karahka Shear Zone where intense deformation
and hydrothermally alteration has occurred.
Qualified Person:
The technical information in this news release has been prepared
in accordance with the Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed and approved by
Benjamin Gelber, M.Sc., P.Geo., a
Qualified Person.
About Gold Line Resources
Ltd.
Gold Line Resources is focused on acquiring mineral properties
with exceptional exploration potential in the most prolific
gold-producing regions of Sweden
and Finland. Gold Line is working
in two of the world's top mining jurisdictions and emerging
exploration frontiers due to their strong mineral endowment, stable
tenure, straightforward permitting, favourable tax regime and
supportive geopolitical landscape.
Gold Line currently holds a prospective portfolio of gold
exploration projects in Sweden and
Finland. In Sweden projects are located in the Gold Line
Mineral Belt and Skellefteå Belt of north-central Sweden, and the Mjøsa-Vänern Belt in southwest
Sweden. In Finland Gold Line holds the entire
underexplored Oijärvi Greenstone Belt located in northern
Finland.
On behalf of the Board of Directors of Gold Line
Resources,
Adam Cegielski
CEO & Director
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Cautionary Note Regarding
Forward-Looking Statements
This news release contains statements that constitute
"forward-looking statements." Such forward looking statements
involve known and unknown risks, uncertainties and other factors
that may cause Gold Line's actual results, performance or
achievements, or developments to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Forward looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects,"
"plans," "anticipates," "believes," "intends," "estimates,"
"projects," "potential" and similar expressions, or that events or
conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this news release include
statements that are not historical facts. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors and risks include, among others: that
exploration and development activities will not be completed as
planned; that the results of exploration and development activities
will not be as anticipated. Gold Line may require additional
financing from time to time in order to continue its operations
which may not be available when needed or on acceptable terms and
conditions; compliance with extensive government regulation;
domestic and foreign laws and regulations could adversely affect
Gold Line's business and results of operations; the stock markets
have experienced volatility that often has been unrelated to the
performance of companies and these fluctuations may adversely
affect the price of Gold Line's securities, regardless of its
operating performance; and the impact of COVID-19. The
forward-looking statements contained in this news release represent
the expectations of Gold Line as of the date of this news release
and, accordingly, are subject to change after such date. Readers
should not place undue importance on forward-looking information
and should not rely upon this information as of any other date.
Gold Line undertakes no obligation to update these forward-looking
statements in the event that management's beliefs, estimates or
opinions, or other factors, should change.
SOURCE Gold Line Resources Ltd.