Kenai Resources Ltd.: Sao Chico Gold Project, Brazil-Grant of Environmental Operating Licence
April 25 2013 - 6:35PM
Marketwired Canada
Kenai Resources Ltd. (TSX VENTURE:KAI) ("Kenai") advises that its wholly owned
subsidiary Gold Aura do Brasil Mineracao Ltda ("GOAB") has now received the
Licenca de Operacao ("LO") from SEMA, the Para state environmental authority.
This is the major condition relating to GOAB's application for trial mining
under a GUIA licence for which an application was filed with DNPM (Brazil Mines
Department) in May 2012. GOAB is optimistic the GUIA licence will be granted
within the quarter.
LO No: 7568/2013 has been issued with a period of 12 months' validity until
April 22nd, 2014. The usual conditions apply including a prohibition for using
cyanide, LO renewal application rights and quarterly reporting requirements.
The President and CEO of Kenai, Mr Greg Starr commented, "This is a major
milestone for Kenai in realising its objective of having a high grade
underground mine development, initially by way of a trial mining GUIA licence.
Kenai's directors consider this to be a very positive step towards initial
production from Sao Chico, with a simple ore processing flowsheet including
crushing and grinding, gravity concentration and flotation of the gravity plant
tailings."
The LO also enables Kenai to commence its planned Stage 2 drilling program of
some 8,750 metres of diamond drilling which is now anticipated to commence
during May 2013. The target of the Stage 2 drilling program is to extend the
size of NI 43-101 compliant mineral resources from the maiden mineral resources
estimate released on October 15th, 2012 as set out below. A further outcome of
this work will be the completion of the necessary FER (Final Exploration Report)
to be filed with DNPM, which is a prerequisite to the submission of an
application for a long term Mining Concession for Sao Chico.
The maiden mineral resources estimate, as previously advised, covers the three
high grade vein structures identified during the initial 22 hole 3,268 metre
Stage 1 diamond drilling program:
Gold
Tonnes (g/t) Ounces
Main Vein Measured Mineral Resources 5,064 32.46 5,269
Main Vein Indicated Mineral Resources 21,423 29.14 20,006
------------------------
Total Measured and
Indicated Mineral
Resources 26,487 29,77 25,275
------------------------
------------------------
Main Vein Inferred Mineral Resources 69,440 27.83 61,940
Highway Vein Inferred Mineral Resources 8,490 12.21 3,323
Parallel Vein Inferred Mineral Resources 7,647 24.98 6,123
------------------------
Total Inferred Mineral
Resources 85,577 26.03 71,385
------------------------
------------------------
The Stage 1 drilling concentrated on the central part of the Main Vein, and only
drilled along 530 metres of the known east-west strike length of 1000 metres in
AP12836 and less than half the known 400 metres north-south of old workings and
surface vein structures, which are to be tested in the forthcoming Stage 2
drilling program.
No mineral reserves have been estimated and it is uncertain if further
exploration will result in the delineation of a mineral reserve.
Kenai is waiting for the final report of the Stage 2 metallurgical testwork
report from SGS Lakefield Mineral Services, including a comprehensive
mineralogical study on cleaned flotation concentrates. The testwork results
confirm very high gold recoveries from gravity concentration, from which about
25% of the gold can be recovered to dore for local sale and about 75% into a
high grade gold-silver flotation concentrate which is suitable for sale to a
range of offshore smelters.
About the Sao Chico, Brazil project
The Sao Chico project is located in the Tapajos Gold Belt in Para state,
northern inland Brazil, about 600 kilometres south-east of the major Amazon
River city of Manaus. Sao Chico is within AP12836, a Brazilian exploration
permit of 1416 hectares owned by GOAB, which owns the Sao Chico mineral rights.
The Tapajos Gold Belt, south of the regional city of Itaituba, trends north-west
to south-east for about 200 kilometres, with seven significant gold discoveries
and developments in recent years, notably Eldorado Gold Corporation's TZ
(Tocantinzinho) project and Serabi Gold plc's Palito project.
The Sao Chico project, like all the other discoveries, evolved from the old
workings mainly in and after the huge 1970s and 1980s local gold rush. Much of
the region has been crudely mined by artisanal miners (garimpeiros), mainly from
simple alluvial workings with inefficient gravity separation and gold recovery
by amalgamation, but only at surface or near surface because the simple
garimpeiro methods could not extract gold from primary or unoxidised ores.
At Sao Chico, over an east-west strike length of about 1000 metres and
north-south 400 metres, some 220 old workings, mainly shallow shafts, have been
identified by GOAB. Following prior GOAB surface trenching to trace the
gold-bearing quartz veins, Kenai's Stage 1 diamond drilling was the first ever
undertaken in the Sao Chico area. That drilling program of 3,268 metres
confirmed the hypothesis of a series of sub-parallel near vertical vein
structures, in the same rocks and with the same structure as the Palito mine 30
kilometres north-east.
About Kenai Resources Ltd.
Kenai is a Canadian company focused on precious mineral project exploration and
development, towards early significant gold production. Its principal current
activity is at the Sao Chico project, with a corporate priority towards the
earliest possible cash flow generation from Sao Chico.
On behalf of the Board of Directors.
Greg Starr, President and CEO
Forward-Looking Statements: Statements in this news release that are
forward-looking statements are subject to various risks and uncertainties
concerning the specific factors disclosed and elsewhere in the company's
periodic filings with Canadian securities regulators. The economic viability of
the mineral resources estimates described herein has not been established and
may not be. Such information contained herein represents management's best
judgment as of the date hereof based on information currently available. The
company does not assume the obligation to update any forward-looking statement.
Kenai's Vice President Technical Services, Neil Cole, is responsible for
technical information in this news release. Mr Cole has sufficient experience
which is relevant to the style of mineralization under consideration and to the
activity which is being undertaken and planned to qualify as a Qualified Person
under NI 43-101. Mr Cole has verified the technical data disclosed in this
release, including references to planned exploration and operational activities,
and the sampling of the gold-bearing vein structures. Mr Cole has consented to
the inclusion in this release of such technical information in the form and
context in which it appears.
Shares Outstanding: 105,906,734
FOR FURTHER INFORMATION PLEASE CONTACT:
Kenai Resources Ltd.
604-669-5753
604-688-9895 (FAX)
info@kenairesources.com
Lounor Exploration Inc. (TSXV:LO)
Historical Stock Chart
From Apr 2024 to May 2024
Lounor Exploration Inc. (TSXV:LO)
Historical Stock Chart
From May 2023 to May 2024
