Carpathian Gold Inc. (TSX:CPN) ("the Corporation or Carpathian") is pleased to
announce an updated National Instrument ("NI") 43-101 Resource Estimate, as
provided by independent consultants NCL Brasil Ltda. ("NCL") on its 100% owned
Riacho dos Machados ("RDM") gold project located in Minas Gerais State, Brazil.
This Resource Estimate is an update to the initial NI 43-101 Resource Estimate
previously announced on May 18, 2009 (the "2009 Resource Estimate"), and
includes results from a total of 55,732 metres of drilling of which 24,269
metres was re-sampling of previous drill holes completed by Companhia Vale do
Rio Doce ("Vale").
In early 2010, the Corporation completed its Phase II drill program of 20,526
metres that was designed to upgrade the inferred resource category to the
measured and indicated categories over a broad mineralized zone within the
open-pit portion of the deposit as defined in the Preliminary Economic
Assessment ("PEA") study released on August 12, 2009. The open-pit portion of
the updated measured and indicated categories of the mineral resource will be
utilized for the reserve estimate in the nearly completed Feasibility Study.
The total open-pit plus underground updated Resource Estimate (the "2010
Resource Estimate") includes 812,300 ounces of gold in the measured and
indicated categories and 692,900 ounces of gold in the inferred category at a
gold price of US$950/ounce as shown in the table below which summarizes the
results of the 2010 Resource Estimate for both the open-pit and underground gold
mineralization.
NI 43-101 Mineral Resource Estimate for RDM, July 2010
----------------------------------------------------------------------------
Open-Pit Measured Indicated
Ktonnes Au (g/t) Au (koz) Ktonnes Au (g/t) Au (koz)
----------------------------------------------------------------------------
OXIDE 125 1.18 4.8 1,133 1.13 41.1
MIXED 102 1.32 4.3 1,764 1.38 78.1
FRESH ROCK 1,361 1.61 70.3 12,715 1.49 607.6
----------------------------------------------------------------------------
TOTAL 1,588 1.55 79.3 15,611 1.45 726.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Underground Measured Indicated
Ktonnes Au (g/t) Au (koz) Ktonnes Au (g/t) Au (koz)
----------------------------------------------------------------------------
Total - - - 53 3.63 6.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Open-Pit &
Underground Measured Indicated
Ktonnes Au (g/t) Au (koz) Ktonnes Au (g/t) Au (koz)
----------------------------------------------------------------------------
Total 1,588 1.55 79.3 15,664 1.46 733.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Open-Pit Measured and Indicated Inferred
Ktonnes Au (g/t) Au (koz) Ktonnes Au (g/t) Au (koz)
----------------------------------------------------------------------------
OXIDE 1,258 1.13 45.9 373 1.29 15.5
MIXED 1,865 1.37 82.4 213 1.37 9.3
FRESH ROCK 14,076 1.50 677.9 6,594 1.56 331.1
----------------------------------------------------------------------------
TOTAL 17,199 1.46 806.2 7,179 1.54 355.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Underground Measured and Indicated Inferred
Ktonnes Au (g/t) Au (koz) Ktonnes Au (g/t) Au (koz)
----------------------------------------------------------------------------
Total 53 3.63 6.2 3,922 2.67 337.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Open-Pit &
Underground Measured and Indicated Inferred
Ktonnes Au (g/t) Au (koz) Ktonnes Au (g/t) Au (koz)
----------------------------------------------------------------------------
Total 17,252 1.46 812.3 11,101 1.94 692.9
----------------------------------------------------------------------------
-- Base case cut-offs grades used in the mineral resource are 0.36 g/t Au
for the open-pit and 1.09 g/t Au for the underground component of the
mineralization.
-- Open-pit resources are constrained within a pit shell utilizing
appropriate mining and processing costs and US$950/oz gold (see
parameters listed below).
-- Rounding of tonnes as required by reporting guidelines may result in
apparent differences between tonnes, grade and contained metal content.
A comparison between the 2010 Resource Estimate (open-pit and underground) and
the 2009 Resource Estimate is shown below.
----------------------------------------------------------------------------
2010
Category 2009 (current) Change
----------------------------------------------------------------------------
Open-Pit + Underground: Measured +
Indicated ounces of gold 290,200 812,300 +180%
----------------------------------------------------------------------------
Open-Pit + Underground: Inferred ounces of
gold 1,012,400 692,900 -32%
----------------------------------------------------------------------------
Open-Pit: Measured + Indicated ounces of
gold 268,800 806,200 +200%
----------------------------------------------------------------------------
Open Pit: Inferred ounces of gold 762,700 355,900 -53%
----------------------------------------------------------------------------
Note: See Press Release dated May 18, 2009 for further details on the 2009
Resource Estimate
Of the total 2010 Resource Estimate, 99.2% of the measured and indicated
resource and 51.4% of the inferred resource is located within a Whittle pit
shell. The pit shell was obtained utilizing pit-optimizer software (Whittle
Four-X) using appropriate mining and processing costs from the ongoing
Feasibility Study, a US$950/ounce gold price and a 0.36 g/t Au cut-off grade.
Within this open-pit shell, the measured and indicated gold resource in the 2010
Resource Estimate has increased by 537,400 ounces, from 268,800 ounces to
806,200 ounces, a 200% increase compared to the 2009 Resource Estimate. Below
the open-pit shell and excluding a 15-metre crown pillar, a higher-grade cut-off
was utilized (1.09 g/t Au), based on potential economic parameters along with
engineering considerations, to define a resource with underground mining
potential.
Mr. Dino Titaro, President and CEO of the Corporation commented: "We are
exceptionally pleased with this updated mineral resource estimate and the
significant conversion of the initial 2009 open-pit inferred resource, which was
utilized in the PEA study, into measured and indicated categories along with the
increase of the overall total contained gold ounces in the project. This is very
significant for the project and speaks to the continuity of the gold
mineralization and open-pit mineability which significantly de-risks project
development. In addition to the updated resource estimate and the strong
conversion of inferred resources to measured and indicated, which has been a
primary objective since the announcement of the PEA study in August of last
year, we are near completion of the feasibility study that will incorporate the
updated measured and indicated resource estimate. Also, given our high
conversion rate to measured and indicated further follow-up work, upon
completion of the feasibility study, will target the remaining 355,900 ounces of
inferred in-pit resources for conversion to measure and indicated which would
add significantly to the mine-life."
The gold mineralization at RDM is shear-zone hosted, within a package of
Precambrian aged metamorphic rocks. This shear zone strikes 20 degrees and dips
40 to 50 degrees east. Drilling has indicated that known gold mineralization is
continuous over a strike length of 2,000 metres and is open along strike and at
depth. The 2010 Resource Estimate lies within a continuously mineralized gold
zone of 2,000 metres in length that dips at 35 to 45 degrees to the southeast.
The open-pit portion of the resource extends from surface to a maximum vertical
depth of approximately 300 metres. The gold-mineralized shear-zone can reach
true-thicknesses of up to 35 metres, though a more typical thickness is 5 to15
metres at open-pit cut-off grades of 0.30 g/t Au. In addition to this 'main
zone', discrete 'hanging-wall' and 'foot-wall' gold mineral zones are modeled
and are typically 2 to 5 metres true thickness. The underground resource starts
below the open-pit resource, taking into account a 15-metre crown pillar, and
extends down 290 metres, and locally approximately 480 metres, below the pit.
Resource Growth Potential
The gold mineralization is situated within a continuous 14.0 kilometre long
shear zone hosted in Precambrian metamorphic rocks with a demonstrated gold
endowment. This shear zone is fully covered by the Corporation's mining
concession and exploration licenses that extend over a continuous length of
approximately 30 kilometres covering an area of approximately 22,000 ha. The
most intensely explored zone and location of the current 2010 Resource Estimate
only represents approximately 2.0 kilometres of the southern portion of this
shear zone. There are numerous surface gold targets of similar gold grade that
occur along strike within this shear zone and to date a total of seven (7)
exploration targets have been outlined north of the open-pit resource area and
one to the south.
The focus of the Corporation's drill programs thus far has been on resource
definition, however, in the Phase II drill program step-out drilling to the
south extended the mineralization 280 metres south of the 2009 open-pit Resource
Estimate and included the intersection from drill hole FRM-159 with returned 5.5
metres at 1.72 g/t gold. North of the resource and along strike, drill hole
FRM-122 intersected 3 metres (down hole length) at 1.27 g/t Au, approximately
850 metres north of the current 2010 Resource Estimate. Further exploration
drilling and evaluation is planned to extend the mineralization as well as test
the other exploration targets along this highly prospective shear zone.
At the RDM deposit, the current open-pit 2010 Resource Estimate includes
inferred resources of 355,900 ounces of gold. This inferred resource will be
further evaluated for resource category upgrade to extend mine-life and/or
increase annual production. The Phase II drilling program demonstrated that to
date, the conversion rate of inferred to measured and indicated is well above
90%.
In addition to the strike extension targets and defined satellite exploration
targets, the gold mineralization at RDM is also open at depth. Once the open-pit
is in production the Corporation plans to evaluate the underground resource as
defined in the PEA study, which demonstrated a good probability of additional
higher-grade ounces from an underground operation that could add to the overall
operation both in terms of extending the mine life of the project and
potentially increasing the annual production rate by an additional 50%.
Insufficient work has been completed at this time to allow for this potential
underground resource to be included in the Feasibility Study. The grade of this
underground mineralization is analogous to existing underground operating mines
in Brazil, such as Yamana Gold's Fazenda Brasileiro and Jacobina mines.
Feasibility Study Progress Update
Carpathian has retained an engineering and environmental consortium to complete
the Feasibility Study that includes: Tecnomin Projetos e Consultoria Ltda, NCL
Brasil Ltda, Golder Associates Brasil Consultoria e Projetos Ltda, and YKS
Services Ltda. Final engineering, costing and mining optimization studies are
nearly completed. Completion of the Feasibility Study is expected in the coming
weeks.
A matrix of cut-off versus grade-tonnages of the 2010 Resource Estimate is shown
in tables at end of the press release and demonstrates the flexibility of
applying various higher-grade cut-offs to optimize mill head grades. As an
example, utilizing a cut-off open-pit grade of 0.80 g/t Au, the present open-pit
resource includes 726,200 ounces gold in the measured and indicated categories
at 1.72 g/t Au and 328,700 ounces gold in the inferred category at 1.76 g/t Au
which is greater than the open-pit resources considered in the PEA (all
categories) of 806,700 ounces gold at 1.65 g/t Au. Present mining studies are
utilizing variable higher cut-off grades that are expected to meet management's
target of +100,000 ounces gold production per year.
Currently three diamond-core rigs are drilling for ore-definition purposes in
order to convert inferred resource 'pockets' within the shallow portions of the
open-pit as defined in the 2010 Resource Estimate to measured and indicated in
order to be included in the Feasibility Study. This will enhance the early-stage
economics of the mine life. This program is expected to be finished in the
coming weeks.
Resource Estimate Parameters and Assumptions
To generate the 2010 Resource Estimate the following data and methods were used:
-- Mineral resources were estimated in conformance with the CIM Mineral
Resource and Mineral Reserve definitions referred to in National
Instrument 43-101, Standards of Disclosure for Mineral Projects.
-- The Resource Estimate database includes 213 drill holes for a total of
31,463 metres completed by the Corporation (Phase I and Phase II
completed from late 2008 to early 2010). This drilling is predominantly
diamond drill core, but does include 9,542 metres of Reverse Circulation
drilling mainly as pre-collars for diamond drill holes. In addition, and
following validation, the Corporation re-sampled drill core from 149
drill holes completed by Vale, a previous property owner, which
represents a total of 24,267 metres drilling. In total the drill hole
database includes 362 drill holes for 55,372 metres. As part of the
Phase II work program, the Corporation also completed 831 metres of
trenching.
-- Sample preparation and gold assays were conducted by independent ISO
Certified international laboratories. A thorough QA/QC program was in
place during the drill program, which included the insertion of
standards, duplicates and blanks at regular intervals totalling 17% of
the submitted samples along with a check assay program from a secondary
assay laboratory with 3% check assays. A review of the QA/QC database
showed adequate levels of quality for the Resource Estimate.
-- Densities were determined for a representative number of rock and
mineralization types using industry standard methods. A total of 108
determinations exist in the database. The average value for each modeled
alteration type was applied to the block model.
-- Detailed geologic logging and sectional interpretations led to the
development of 3D (three-dimensional) domain models of lithology and
alteration types. These geologic domains were utilized to constrain
grade-shell solids with a nominal cut-off of 0.30 g/t Au for the open-
pit and 1.00 g/t Au for the underground. Geologic interpretation and
modelling, 3D domain model building was carried-out by the Corporation's
exploration team and audited by NCL. The grades shells typically form
stacked elongated tabular bodies. In the open-pit, a main mineralized
solid is bracketed by a thinner footwall and hanging wall solids. For
the underground model, a single main-zone grade-shell solid was adopted
with a localized hanging-wall zone of widths on the order of 1 to 8
metres, averaging 2.7 metres.
-- A geologic-model constrained block-model was generated using Gemcom
software. Analyses of gold grade distributions and variography studies
were utilized for grade interpolation search parameters which used the
Ordinary Kriging ("OK") method. Validation of OK through various methods
is completed prior to finalizing.
-- A pit optimizer software (Whittle Four-X) was used to define the
portions of the block model with reasonable prospects of being
economical by using open-pit methods, as defined by the CIM code for
mineral resources. NCL adopted the following parameters for the Whittle:
-- Gold price of US$950/oz
-- Mining operating cost: US$1.20/tonne
-- Plant operating cost including a CIL circuit: US$8.50/tonne
-- G&A: US$1.25/tonne ore
-- Gold recovery (for all mineralization types based on metallurgical
test work completed by Carpathian) of 90%
-- For the open-pit, pit slope angles of 40 degrees, 45 degrees and
50 degrees (oxide, mixed and fresh rock domains) were utilized
-- The underground model was examined to justify the portions of the block
model that would support the necessary capital to develop them. The
portions that were too isolated or with insufficient grade or tonnage
for underground mining were categorized as waste. For the underground
model the following parameters were applied.
-- Gold price of US$950/oz
-- Mining operating cost: US$20.00/tonne
-- Plant operating cost including a CIL circuit: US$8.50/tonne
-- G&A: US$1.25/tonne ore
-- Gold recovery: of 90%
-- 15% decline ramp costs: US$3,000/m
-- Level development: US$2,500/m
-- Raise bore costs: US$3,000/m
-- The resource classification for all models was based on the geologic
model in context of gold-grade continuity and gold-grade variography
studies to determine the parameters of a search ellipsoid. The
requirement for indicated resources is two drill holes from within a
search volume of 40 metre radius along plunge and 36 metre across
plunge. Measured resources has half of this range, also requiring two
drill holes and inferred resources are defined with a search volume of
100m x 75 m, without restriction of number of drill holes.
Mr. Rodrigo Mello, MAusIMM, Senior Geologist with NCL is the independent
Qualified Person responsible for the Mineral Resource Estimate. The complete NI
43-101 compliant Technical Report will be filed on SEDAR at www.SEDAR.com within
45 days.
Sample Protocol
Assay results are predominantly from a half-core split (sawn) NQ drill core and
sampled on a metre by metre basis through the mineralized zone and into
surrounding altered rock. In addition, Reverse Circulation ("RC") drilling
through the mineralized zone is sampled on a metre by metre basis and assayed
only when dry samples are collected. All samples collected from RDM are prepared
and assayed at the independent ISO Certified SGS laboratory, located near Belo
Horizonte, Brazil using industry standard fire assay techniques for gold on
50-gram sample charges with AAS finish. Coarse blanks, pulp blanks, pulp
duplicates, and known gold standards are inserted on a routine basis. Combined,
they consist of 17% per cent of submitted samples. In addition, on a periodic
basis 3% of the crusher rejects are re-submitted and a minimum of 3% of the
pulps will be analyzed at the ISO Certified ALS Chemex Laboratory near Belo
Horizonte, Brazil for check assays.
Mr. Titaro, P.Geo., is the qualified person (as defined in NI 43-101) overseeing
the design and implementation of the present exploration programs. He is
responsible for preparing the technical information contained in this news
release.
Carpathian Gold is an exploration and development company whose primary business
interest is developing near-term gold production on its 100% owned Riacho dos
Machados gold project in Brazil along with progressing its exploration and
development plans on its 100% owned Rovina Valley Au-Cu project located in
Romania.
Forward-Looking Statements: This press release includes certain statements that
may be deemed "forward-looking statements". Forward-looking statements are
frequently characterized by words such as "plan", "expect", "Project", "intend",
"believe", "anticipate", "estimate", and other similar words, or statements that
certain events or conditions "may" or "will" occur. All statements in this
release, other than statements of historical facts, that address future
exploration drilling, exploration activities and events or developments that the
Corporation expects, are forward-looking statements. Although the Corporation
believes the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those
in forward-looking statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market prices,
exploitation and exploration successes, continued availability of capital and
financing, and general economic, market or business conditions. There can be no
assurance that forward-looking statements will prove to be accurate, as results
and future events could differ materially from those anticipated statements. The
Corporation undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking statements.
RDM NI 43-101 Mineral Resources at Various Cut-off Grades, July 2010
Open-Pit Resource, within Whittle Four-X pit shell (utilizes economic
parameters and gold price of US$950/ounce gold).
Base-case cut-off grade is shaded.
----------------------------------------------------------------------------
Cut-Off Grade Measured + Indicated Inferred
Au (g/t) Ktonnes Au (g/t) Au (Koz) Ktonnes Au (g/t) Au (Koz)
----------------------------------------------------------------------------
1.10 9,727 1.99 623.0 4,595 1.98 291.9
0.95 11,385 1.85 677.7 5,080 1.88 307.8
0.80 13,113 1.72 726.2 5,824 1.76 328.7
0.65 14,810 1.61 765.8 6,437 1.66 343.3
0.50 16,319 1.51 793.7 6,917 1.58 352.2
0.36 17,191 1.46 806.2 7,178 1.54 355.9
----------------------------------------------------------------------------
Notes: 1) Rounding of tonnes as required by reporting guidelines may result
in apparent differences between tonnes, grade and contained metal content.
2) the resource is combined of oxide, transitional and sulfide material.
Underground Resource beneath the Open-Pit Shell (US$950/ounce gold).
Base-case cut-off grade is shaded.
----------------------------------------------------------------------------
Cut-Off Grade Measured + Indicated Inferred
Au (g/t) Ktonnes Au (g/t) Au (Koz) Ktonnes Au (g/t) Au (Koz)
----------------------------------------------------------------------------
3.00 36 4.14 4.8 1,361 3.68 161.0
2.50 47 3.82 5.7 1,850 3.42 203.3
2.00 52 3.67 6.1 2,979 2.98 285.6
1.50 52 3.65 6.1 3,652 2.77 324.8
1.09 53 3.63 6.2 3,922 2.67 337.0
----------------------------------------------------------------------------
Notes: 1) Rounding of tonnes as required by reporting guidelines may result
in apparent differences between tonnes, grade and contained metal content.
2) all resource is sulfide material.
OK2 Minerals Ltd (TSXV:OK)
Historical Stock Chart
From May 2024 to Jun 2024
OK2 Minerals Ltd (TSXV:OK)
Historical Stock Chart
From Jun 2023 to Jun 2024
