Whistler Resource Estimate Confirms an Indicated Resource of 840,000 Ounces Gold and an Inferred Resource of 2.74 Million Ounces
January 09 2008 - 10:06AM
Marketwired Canada
Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the
"Company") is pleased to announce it has received the initial independent
mineral resource estimate on the Whistler and Main Zones at its Whistler Project
in Alaska. The report states that the greater Whistler Zone holds an Indicated
Resource of 840,000 ounces of gold plus an Inferred Resource of 2.74 million
ounces of gold. Consideration of the silver and copper mineralization associated
with the gold, produces a gold equivalent resource of 1.31 million ounces in the
Indicated category and 4.44 million ounces in the Inferred category.
The independent resource estimate was compiled by SRK Consulting (Canada) Inc.
("SRK") and complies with National Instrument (NI) 43-101 and Canadian Institute
of Mining (CIM) guidelines for reporting mineral resources.
Highlights
SRK's Mineral Resource Statement confirms:
- An Indicated Resource containing 840,000 ounces of gold, 2.37 million ounces
(Moz) of silver and 159 million pounds (Mlbs) of copper (which equates to 1.31
Moz in a gold equivalent resource);
- An Inferred Resource containing 2.74 Moz of gold, 9.44 Moz of silver and 573
Mlbs of copper (which equates to 4.44 Moz in a gold equivalent resource); and
- The Indicated category contains 30 million tonnes grading 0.87 grams per tonne
("g/t") gold, 2.46 g/t silver and 0.24% copper and the Inferred category
contains 134 million tonnes grading 0.64 g/t gold, 2.18 g/t silver and 0.20%
copper.
The resource estimation process has also highlighted several untested areas of
the Whistler Zone that have the potential to increase the mineral resource
significantly, which will be evaluated with follow-up drilling in 2008.
"The initial 43-101 compliant resource estimate on the Whistler Zone is a
watershed milestone for Geoinformatics, as it quantifies a large gold resource
that can be used as a valuation benchmark for the Company and continues to
highlight the merits of our important alliance with Kennecott Exploration
Company," commented Kevin L. Snook, Chairman of Geoinformatics. "The results of
SRK's resource estimate clearly position Geoinformatics as holding one of the
prime North American advanced exploration gold properties, and we will continue
to work aggressively to enhance the project and increase its value to our
shareholders."
Resource Estimate Summary
The total Indicated and Inferred Mineral Resources are presented in Table 1
below and encompass both the Whistler and Main Zones. The higher grade Main Zone
is hosted within the broader mineralized envelope represented by the Whistler
Zone.
SRK calculated the resource estimate based on a conceptually modeled and
optimized open-pit design (described below) in which 93% of the current total
tonnage is extractable through an open pit operation (cut-off grade of 0.3 g/t
gold equivalent) and the remaining 7% (cut-off grade of 1.1 g/t gold equivalent)
is potentially extractable by bulk underground mining methods following
development of the open pit.
Table 1. Mineral Resource Statement(i) for the Whistler Gold Deposit,
Alaska, Prepared by SRK Consulting (Canada) Inc.
---------------------------------------------------------------------------
Tonnage and Grades Total Contained Metal
---------------------------------------------------------------------------
Resource Tonnage Gold Silver Copper Gold Gold Silver Copper Gold
Category (Mt) (g/t) (g/t) (%) Eq(3) (Moz) (Moz) (Mlb) Eq(3)
(g/t) (Moz)
---------------------------------------------------------------------------
Indicated
(open-
pit(1)) 30 0.87 2.46 0.24 1.35 0.84 2.37 159 1.31
---------------------------------------------------------------------------
Total
Indicated 30 0.87 2.46 0.24 1.35 0.84 2.37 159 1.31
---------------------------------------------------------------------------
Inferred
(open-
pit(1)) 123 0.59 2.07 0.19 0.98 2.33 8.19 515 3.86
---------------------------------------------------------------------------
Inferred
(under-
ground(2)) 11 1.16 3.55 0.24 1.66 0.41 1.26 58 0.59
---------------------------------------------------------------------------
Total
Inferred(4) 134 0.64 2.18 0.20 1.05 2.74 9.44 573 4.44
---------------------------------------------------------------------------
---------------------------------------------------------------------------
1. Reported within a conceptual pit shell and based on a cut-off grade of
0.3 g/t gold equivalent adjusted for metallurgical recovery (see
methodology below).
2. Reported based on an underground bulk mining method using a cut-off
grade of 1.1 g/t gold equivalent adjusted for metallurgical recovery.
3. Total grade and Total Contained Metal gold equivalent grade and ounces
estimated based on 100% recovery, $550 per ounce gold, $8 per ounce silver
and $1.50 per pound of copper.
4. Totals may vary due to rounding.
(i) Notes: Mineral resources, which are not reserves, do not yet have
demonstrated economic viability.
SRK is unaware of any environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant issues
that may materially affect this resource estimate
"We believe that the SRK resource estimate is just the beginning of the
development of the Whistler area as a new porphyry province," stated Dr. Nick
Archibald, Chief Executive Officer of Geoinformatics. "The Whistler Zone itself
remains open in several directions and at depth, and numerous high-quality
exploration targets with similar geophysical signatures have been identified in
close proximity. We intend to drill test the Whistler Zone targets which have
the potential to significantly increase the resource estimate."
Next Steps
Geoinformatics plans to aggressively advance the Whistler Zone through further
definition drilling of mineralized zones in both the high-grade Main Zone, as
well as the extended mineralized envelope. The objective of the program will be
to move resources in the Indicated and Inferred categories, respectively, into
higher categories as part of a plan to complete a feasibility study on the
deposit as soon as possible.
In addition, the resource estimation process has highlighted several areas in
the immediate vicinity of prior drilling that are currently untested and which
have the potential to significantly increase the reported mineral resource
estimate. Geoinformatics intends to conduct a comprehensive exploration program
on these high-priority targets in 2008.
The third component for this year's strategy will be the drilling of
currently-identified high-priority regional targets as successful identification
of other regional mineralized zones could positively impact the economics of the
Whistler Zone.
SRK Qualifications and Methodology
SRK is a worldwide independent engineering, environmental and geological
consulting company with over 700 engineers and scientists and a reputation for
excellence in the estimation of mineral resources. In August 2007,
Geoinformatics engaged SRK to audit the Whistler Project and to prepare an
initial independent technical report on it, compliant with NI 43-101 guidelines,
which was filed on SEDAR (www.sedar.com) on November 8, 2007. The scope of work
was expanded, as announced in November 2007, to include completing an
independent estimate of the mineral resources in the Whistler Gold Deposit. The
updated NI 43-101 report will be filed on SEDAR within 45 days.
The resource estimate prepared by SRK was based on a three-dimensional (3-D)
geologic and mineralization model that integrated over 7,250 meters of drilling
in 31 holes and included a block model. This drilling has been audited and
validated by SRK in accordance with CIM Estimation of Mineral Resources and
Mineral Reserves Best Practice Guidelines and with National Instrument 43-101
guidelines.
Metal grades were estimated and incorporated into a block model that was
constructed using capped composites and ordinary "kriging". A density factor of
2.72 tonnes per cubic metre was used to convert volumes into tonnage, based on
21 core specific gravity samples as determined by ALS Chemex Laboratory in
Vancouver, Canada. Kriging is a geo-statistical technique commonly used in
mineral resource estimates.
The near surface Whistler mineral resource has been modeled within a conceptual
pit shell generated using Whittle Pit Optimization software. The Whistler in-pit
mineral resource is based on a 0.30 g/t recovered gold equivalent in-pit cut-off
grade assuming a 75% recovery for gold and silver and a 85% recovery for copper
and using metals prices of US$550/oz for gold, US$1.50/lb for copper and US$8/oz
for silver. Mining parameters used in the Whittle pit optimization were based on
those from similar projects and include 2.5% pit mining losses, 35% pit slope
angle, average mining cost of US$1.50/t rock and processing cost of US $7.50/t
rock. Items such as refinery costs or concentrate shipping charges were not
included in the calculation. Mineral resources are not reserves and do not have
demonstrated economic viability.
About the Whistler Project
The Whistler Project was acquired as a target-of-merit from Kennecott in June
2007 (see "Kennecott - Geoinformatics Alliance Agreement" below), and
encompasses approximately 440 contiguous sq. km. in relatively flat topography
at the northeastern end of the prospective Southern Alaskan Range. This range
hosts the giant Pebble copper-gold-molybdenum-silver deposit further to the
southwest. The large property is located approximately 160 km. northwest of
Anchorage, Alaska, and consists of 732 mining claims on state land designated
for mineral exploration and development.
The Whistler Zone outcrops on a broad, relatively flat ridge with very little
vegetation cover at an elevation of approximately 800 metres. The deposit has
been interpreted from extensive drilling as a large gold-copper-silver porphyry
system.
The Whistler Project also includes a significant number of regional exploration
targets. These regional targets have largely been identified directly from
geophysical "signatures" similar to that of the Whistler Zone or from
Geoinformatics' proprietary auto-intrusion detection technology. Though the
Whistler Zone is the only target found to-date which comes to surface, a number
of regional targets have mineralized geochemistry samples, and several
reconnaissance drill holes have intersected mineralization, including the
Rainmaker Prospect with an intercept of 184 metres grading 0.44 g/t gold and
0.19% copper.
To view a map of "Figure 1. Whistler Project Location", please visit the link below:
http://www.ccnmatthews.com/docs/whistlerprojectlocation.pdf
Kennecott - Geoinformatics Alliance Agreement
All Whistler prospects and properties mentioned in this press release fall under
the Kennecott-Geoinformatics Master Strategic Alliance Agreement (the "Alliance
Agreement"). The Company entered into the Alliance Agreement effective March
2006 under which it is using its proprietary geo-science and technology platform
(the "Geoinformatics Process") to identify, prioritize and drill more than 30
exploration drill targets over the initial two years of the Agreement. The
Whistler Project was acquired by Geoinformatics as a target-of-merit under the
Alliance Agreement in June 2007, and Kennecott retains a back-in right to
acquire either a 51% or 60% interest in the Whistler Project under certain
circumstances. Please refer to Geoinformatics' press-release dated August 14,
2006, for further information.
Qualified Persons
The technical content of this release has been reviewed by Darren Holden,
MAusIMM, Executive Vice President - Operations of Geoinformatics. The resource
estimate and technical report for the project was completed by George Wahl, an
Associate Principal Resource Geologist with SRK and was reviewed by Dr.
Jean-Francois Couture, P.Geo, of SRK. By virtue of their academic backgrounds
and professional experience, Mr. Holden, Mr. Wahl and Dr. Couture are all
"qualified persons" as defined by NI 43-101.
About Geoinformatics
The Geoinformatics Process integrates large-scale data aggregation, data mining
and three-dimensional modeling, and has been designed to assist in understanding
and quantifying risk at a much earlier stage of the exploration cycle than has
traditionally been available. The Company's objective is to advance its
properties to the stage of commercial development by applying faster, less
expensive and more reliable analytical methods to resource exploration.
In addition to the Whistler Project, Geoinformatics is continuing to advance
several exploration projects located in Utah (Stockton), the Battle Mountain
Trend region of Nevada (Colorback), and the State of Sinaloa, Mexico (La
Noria/Azulitas) to the resource estimate stage as quickly as possible. Fourteen
Company-owned properties in the State of Sonora, Mexico, fall under a joint
venture in which Azure Minerals Limited is earning a 51% interest by spending
US$4 million. Geoinformatics also has an extensive portfolio of other direct and
indirect property interests, joint ventures, and royalties covering a wide range
of minerals in Mexico, Australia and New Zealand and North America.
This news release includes certain forward-looking statements concerning the
future performance of Geoinformatics' business, operations and financial
performance and condition, as well as management's objectives, strategies,
beliefs and intentions. 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 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 Geoinformatics' securities filings available at www.sedar.com. Actual events
or results may differ materially from those projected in the forward-looking
statements and the reader is cautioned against placing undue reliance thereon.
We assume no obligation to revise or update these forward-looking statements.
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