Mineral Resources Increase Significantly at Pacifica's Selwyn Project
Monday April 2, 9:02 am ET
http://biz.yahoo.com/cnw/070402/pacifica_selwyn_digs.html?.v=1
VANCOUVER, April 2 /CNW/ - Pacifica Resources Ltd. (PAX.TSX-V) is pleased to announce an update to the March 2006 NI 43-101 compliant mineral resource estimate for the Selwyn Project zinc-lead deposits in the Yukon. The updated mineral resource estimate includes the 2006 results from 191 drill holes totalling 41,658.5 metres. The 2006 exploration program demonstrated the expansion potential of the world-class Selwyn Project with five new discovery zones of SEDEX type zinc-lead mineralization. The new and updated mineral resources are reported for nine deposits that occur over a strike length of 26.2 kilometres representing the near surface expression of one continuous, large mineralized deposit. The mineralization is stratabound within the Active Member and is characteristic of sedimentary exhalative deposits (SEDEX).
Highlights
- Indicated mineral resources have increased more than 158% to
86,600,000 tonnes, grading 4.93% zinc and 1.73% lead containing
9,406 million pounds zinc and 3,293 million pounds lead.
- Inferred mineral resources have increased more than 91% to
215,460,000 tonnes, grading 4.71% zinc and 1.48% lead containing
22,377 million pounds zinc and 7,025 million pounds lead.
- In addition, the Mineral Potential is estimated from the 3D block
model to be at least 225 to 235 million tonnes grading from 4.0% to
5.0% zinc and 1.0% to 2.0% lead.
- XY high-grade underground target Indicated mineral resource of
7,394,860 tonnes grading 9.88% zinc and 4.32% lead containing
1,610 million pounds zinc and 703 million pounds lead. Note this is
contained within the Indicated mineral resource figure above.
- XY high-grade underground target Inferred mineral resource of
1,856,500 tonnes grading 10.41% zinc and 3.71% lead containing
425 million pounds zinc and 151 million pounds lead. Note this is
contained within the Inferred mineral resource figure above.
The updated mineral resource estimate was prepared by John J. O'Donnell, the onsite Qualified Person for Pacifica in conjunction with, and under audit by, Independent Qualified Person under NI 43-101, Cliff Pearson of Pearson Geological Ltd. of Victoria, BC. Mr. Pearson will oversee the preparation of the related NI 43-101 Technical Report. Mr. Pearson has also reviewed and approved the contents of this press release. In accordance with National Instrument 43-101, the Technical Report will be filed on SEDAR within 45 days.
Mineral Resources
The Indicated mineral resources for the Selwyn Project now total 86.6 million tonnes grading 4.93% zinc and 1.73% lead for a metal content of 9.40 billion pounds of zinc and 3.29 billion pounds of lead. The Inferred mineral resources total 215.5 million tonnes grading 4.71% zinc and 1.48% lead for a metal content of 22.37 billion pounds of zinc and 7.03 billion pounds of lead. The Inferred mineral resources are generally located outside of the main areas of drilling in the deeper part of the Active Member; which hosts the sulphide mineralization. Areas of Inferred mineral resources require more closely spaced drill holes to improve the confidence level for their inclusion in Indicated mineral resources. These closer spaced drill holes will be done from surface drill stations in 2007.
The March 2006 NI 43-101 compliant mineral resource estimation for the Selwyn Project defined 33,501,000 tonnes of Indicated mineral resource grading 5.53% zinc and 2.10% lead and 112,907,940 tonnes of Inferred mineral resource grading 5.40% zinc and 2.14% lead. The March 2006 NI 43-101 report on the Selwyn mineral resources can also be viewed in detail at www.sedar.com and was co-authored by John Nilsson, P.Eng. and John J. O'Donnell, P.Geo. Table 1 presents the mineral resources for the Selwyn Project zinc-lead deposits.
Table 1: Selwyn Project 2007 Mineral Resource Estimate
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Resource Million Zn Pb Zn Pb
Deposit Class Tonnes (%) (%) (Mlbs) (Mlbs)
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XY Deposit Indicated 36.27 5.77 2.35 4,610 1,874
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Inferred 46.64 5.38 2.08 5,525 2,138
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XY Nose Zone Indicated
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Inferred 7.32 4.08 2.20 658 354
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Brodel Indicated
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Inferred 12.11 4.31 1.16 1,150 309
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HC Zone Indicated 8.60 4.01 1.04 759 197
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Inferred 33.02 3.85 1.07 2,800 780
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HC West Zone Indicated 4.47 4.36 1.16 429 114
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Inferred 13.93 4.98 1.32 1,528 404
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Don East Zone Indicated
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Inferred 24.71 5.54 1.43 3,017 780
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Don Zone Indicated 2.36 5.15 1.15 268 60
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Inferred 14.68 4.70 1.17 1,520 377
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Anniv East Deposit Indicated 16.92 4.15 1.20 1,548 447
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Inferred 16.05 4.04 1.08 1,429 381
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Anniv Central Deposit Indicated 17.98 4.52 1.51 1,791 599
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Inferred 40.12 4.63 1.48 4,093 1,308
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West Extension Inferred 6.88 4.30 1.25 652 189
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Total Indicated 86.60 4.93 1.73 9,406 3,293
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Total Inferred 215.46 4.71 1.48 22,377 7,025
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Notes for Table 1:
1. Mineral Resources reported above have been calculated as of March 30,
2007 in accordance with the standards of the Canadian Institute of
Mining, Metallurgy and Petroleum and National Instrument 43-101. U.S.
investors should be aware that the SEC in the United States does not
recognize these terms. It cannot be assumed that all or any part of
an Indicated or Inferred mineral resource will ever be upgraded to a
higher category of Mineral Resource.
2. A 2% zinc grade cut-off was applied to the new mineral resource
estimate.
3. The Mineral Resource Estimate uses all 464 drill holes, totalling
86,334.6 metres, successfully completed on the Selwyn Project over
three separate periods: 1973 to 1981, 2000, and 2005 to 2006.
High Grade XY Zone Mineral Resource
During the course of tabulating the overall mineral resources of the XY deposit (see Table 1), a subset of the XY Indicated resources was extracted to quantify the resources available to provide higher grade areas suitable for underground mining. This yielded a NI 43-101 compliant Indicated mineral resource of 7,394,860 tonnes grading 9.88% zinc and 4.32% lead containing 1,608 million pounds zinc and 703 million pounds lead. This high-grade XY resource is included within the overall XY zone Indicated resource shown in Table 1. There is also an Inferred mineral resource of 1,856,500 tonnes grading 10.41% zinc and 3.71% lead containing 425 million pounds zinc and 152 million pounds lead. Note this is contained within the Inferred mineral resource shown in Table 1.
Placer Dome had previously developed an Inferred resource of 8,100,000 tonnes (8,900,000 short tons) grading 10.6% zinc and 5.5% lead that was reviewed and disclosed in a June 2005 NI-43-101 compliant report prepared by Mr. Al Burgoyne and filed on www.sedar.com(note that this resource estimate predates NI-43-101 and should not be relied upon). It should be noted that this current XY high grade zone Indicated mineral resource includes, not only portions of the historical Placer Dome mineral resource, but also includes the newly drilled areas identified in 2006. The mineral potential of the high-grade underground target remains open for expansion in 2007, particularly down dip towards the core of the synclinal structure.
Potential Mineral Resources
In addition to the Indicated and Inferred resources estimated in this report, a mineral potential was estimated which contains 225 to 235 million tonnes with an estimated grade of between 4.0-5.0% zinc and 1.0-2.0% lead. The mineral potential represents the down dip and strike extension of the Indicated and Inferred resources taken from a polygonal long-section model. The potential mineral resource mentioned above represents a small portion of the interpreted extent of the Active Member that hosts all known zinc-lead mineralization in the Selwyn district and does not include the OP, OP West, and Pelly North zones. The Active Member has now been defined over 37.5 kilometres of strike length with the drilling results from 2006. Importantly, all drill holes which have intersected the Active Member have contained significant thicknesses and grades of both zinc and lead mineralization. The potential quantity and grade of this mineral potential is conceptual in nature, as there has been insufficient drilling to define a mineral resource and it is uncertain if further exploration will result in any of this potential being realized as a mineral resource.
The geologic continuity of the Selwyn Project mineralization is well established through diamond drilling and underground development. The mineral resources were estimated using ordinary kriging of a 3D block model. All databases were updated and verified with mineralized intercepts composited on 1.5 metre intervals. Classical statistics evaluated the databases; which subsequently underwent variography and the block model was populated with a restricted search for high-grade outliers. Bulk density was assigned for each block in the 3D block model thereby allowing for the mineral resources to be classified and reported following a thorough 3D block model validation.
Exploration and Development Focus
Pacifica's main focus is the exploration of its properties that compose the Selwyn Project in the Yukon, which hosts large tonnages of zinc-lead mineralization. The known deposits have the potential for the large scale production of zinc and lead, at a time when World zinc mine supply is in deficit and there are few new mines under development. As follow-up to the highly successful 2006 exploration program, Pacifica Resources is planning a $25 million exploration program in 2007 to continue definition drilling of the XY, Anniv, and Don Valley (HC, HC West, Don East, and Don) deposits. Particular focus will be given to in-fill drilling of near surface deposits targeted for early open pit development and the expansion of recently discovered high grade mineralization in both the XY deposit and in the Don zone in Don valley that appear to indicate a transition to higher grades in the core of the synclinal structure hosting the various deposits, signalling the potential for significant tonnages of higher grade mineralization over the more than 15 kilometres separating these two zones.
Mineral Resource Parameters
Note that all discussion of previous NI-43-101 compliant Indicated and Inferred mineral resources is referenced in the March 2006 NI 43-101 report for the Selwyn Project. In reviewing historical resources, all discussion of Indicated mineral resources that predate introduction of NI 43-101 should be considered as Inferred mineral resources. All historical Inferred mineral resources that predate NI 43-101 should be considered as areas of mineral potential requiring further definition through drilling. Historical mineral resources are referenced in the June 2005 NI 43-101 report for Howard's Pass. Copies of the reports can be viewed at www.sedar.com.
The Selwyn Project 2007 exploration program is being overseen by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo. The onsite activities for the Selwyn Project are directed by Exploration Manager, John J. O'Donnell, P.Geo. Both Mr. Dunning and Mr. O'Donnell are Qualified Persons within the meaning of National Instrument 43-101. All assay data has been through internal validation of quality assurance and quality control. Pacifica has established a sampling and assay control program with blind insertion of assay blanks, standards and duplicates for the Selwyn Project; however, it should be noted that there is also a quality control and quality assurance program in place at both ACME Analytical Laboratories Ltd. ("ACME") and ALS Chemex that includes blanks, duplicates and standards. At ACME, silver and base metal analyses are conducted by a 17-element, four-acid digestion, ore-grade ICP-AES technique. At ALS Chemex, silver and base metal analyses are conducted by a 25-element, four-acid digestion, ICP-AES technique with overlimit protocols for zinc, lead, copper, antimony, arsenic, and barium conducted by an ore-grade aqua-regia digestion with an instrument finish (ALS-Chemex).
Forward Looking Statements
Except for the statements of historical fact contained herein, the information presented in this News Release constitutes "forward-looking statements" as such term is used in the U.S. Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
Statements concerning Mineral Resource estimates should be viewed as forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements, including but not limited to, those with respect to the price of metals, the timing and amount of estimated future mineralization and economic viability of properties, capital expenditures, costs and timing of exploration projects, permitting time lines, title to properties, the timing and possible outcome of pending exploration projects and other factors and events described in this News Release, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities; the estimation or realization of Mineral Resources; variations in the underlying assumptions associated with conclusions of economic evaluations including, the timing and amount of estimated future production, costs of production, capital expenditures, the failure of plant, equipment or processes to operate as anticipated and possible variations in ore grade or recovery rates; costs and timing of the development of new deposits; availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares; accidents, labour disputes and other risks of the mining industry including without limitation those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this News Release and in any document referred to in this News Release.
Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OF THIS NEWS RELEASE
For further information
Dr. Harlan Meade, President and CEO
Jasmin TamDoo, Manager of Investor Communications, Telephone: (604) 682-5474, Toll-free: 1-877-682-5474, International Toll-free: 1-800-8682-5474, Facsimile: (604) 682-5404, info@pacifica-resources.com, www.pacifica-resources.com
Source: Pacifica Resources Ltd.
