MONETA'S GOLDEN HIGHWAY GOLD RESOURCES INCREASES TO -
Moneta's Golden Highway at 1.09 moz Au indicated
2012-10-25 08:44 ET - News Release
Mr. Ian Peres reports
MONETA'S GOLDEN HIGHWAY GOLD RESOURCES INCREASES TO 1.1 MILLION OUNCES INDICATED PLUS 3.2 MILLION OUNCES INFERRED
Moneta Porcupine Mines Inc. has released an updated National Instrument 43-101 mineral resource estimate on its 100-per-cent-owned Golden Highway project located east of Timmins, Ont.
Ian C. Peres, president and chief executive officer of Moneta, commented: "The step-out drilling undertaken in 2012 on our Golden Highway project was a tremendous success with our exploration team adding 1.2 million indicated and inferred ounces at a discovery cost under $5 per ounce. We look forward to the next stage of development including the results from the upcoming preliminary economic assessment and ongoing drilling to expand the resource."
Highlights, using $1,200 (U.S.) per ounce gold
In-pit and out-of-pit mineral resource estimate
Indicated: 1,091,000 ounces (31.1 million tonnes at 1.09 grams per tonne (g/t) gold (Au)
Inferred: 3,204,000 ounces (83.3 million tonnes at 1.20 g/t Au)
The mineral resource estimate increased by 55 per cent to 3.2 million ounces inferred from the previous resource estimate of 2.1 million ounces (Dec. 1, 2011, press release).
The original Southwest zone pit dimensions have been optimized in this resource update.
The resource remains open in all directions for further expansion.
The company also announces that a preliminary economic assessment (PEA), based on this updated resource estimate, is expected to be completed in the fourth quarter of 2012.
The associated table summarizes the National Instrument 43-101 mineral resource estimate in the indicated and inferred resource categories.
MINERAL RESOURCE ESTIMATE Indicated Inferred Mining Cut-off grade (g/t) Tonnes Au (g/t) Au (oz) Tonnes Au (g/t) Au (oz) In pit 0.37 30,000,000 1.01 977,000 71,627,000 0.86 1,971,000 Out of pit 2.00 1,080,000 3.29 114,000 11,684,000 3.28 1,233,000 Combined 0.37/2.00 31,080,000 1.09 1,091,000 83,311,000 1.20 3,204,000
The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards on mineral resources and reserves, definitions and guidelines.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated mineral resources will be converted into mineral reserves.
Assay composites were capped up to 35 g/t based on geostatistical support for each zone.
A modelling cut-off grade of 0.25 g/t Au was only used to create a three-dimensional wire frame for subsequent interpolation.
A block model was created with 10-by-10-by-10-metre blocks using inverse-distance-cubed-grade interpolation.
Indicated mineral resources were classified with a 35-metre search radius and a minimum of two drill holes.
A bulk density of 2.79 tonnes per cubic metre was used for all tonnage calculations.
A gold price of $1,200 (U.S.) per ounce and an exchange rate of $1 (U.S.) per $1 was utilized in the Au cut-off grade calculations of 0.37 g/t for open pit and two g/t for out of pit.
Open-pit mining costs were assumed at $1.60 per tonne for mineralized material, $1.60 per tonne for waste rock and $1.25 per tonne for overburden, while out-of-pit mining costs were assumed at $59 per tonne, with process costs of $11 per tonne, G&A (general and administrative expenses) of $2 per tonne, and a 93-per-cent metallurgical recovery.
Varying cut-off grade sensitivity for in-pit and out-of-pit gold resources is shown in the associated table.
In addition to the Southwest zone, Windjammer South and 55 zones, the current resource estimate now includes the Gap zone, Windjammer Central and Windjammer North.
There has been 21,000 metres of drilling completed since the previous
resource estimate and 19,375 metres of historic drilling on these
three new gold zones.
The Golden Highway project includes Timiskaming sediments along banded iron formation with associated mafic to ultramafic volcanics that define 12 kilometres of the Destor Porcupine fault zone in Michaud township near Timmins, Ont. Gold mineralization occurs in quartz and quartz-carbonate stockworks and discrete vein zones, all with variable ankerite, hematite and sericite alteration.
The mineral resource estimates were prepared by Eugene Puritch, PEng, Antoine Yassa, PGeo, and Yungang Wu, PGeo, of P&E Mining Consultants Inc. of Brampton, Ont., independent qualified persons (QP), as defined by National Instrument 43-101. Mr. Puritch has reviewed and approved the contents of this news release.
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