| | The 55 Zone is located within the Golden Highway Project and is the most westerly of the three zones with NI 43-101 resource estimates. The zone is situated one kilometer along strike west-southwest of the Southwest Zone in a variably altered Timiskaming sedimentary package.
Gold mineralization is hosted in quartz and quartz carbonate veining and associated altered greywacke between two iron formations. Alteration is predominantly sericite and ankerite often with 3 to 5% finely disseminated pyrite and scattered coarser grained subhedral aggregates. Visible gold and rare accessory molybdenite and chalcopyrite have been observed.
Past drilling has defined a geological structure containing en echelon quartz veins over approximately 400m strike. The zone consists of a series of northerly dipping and stacked laminated quartz veins which contain high grade gold values along with quartz vein stockworks. Additional high grade mineralization occurs when these veins intersect the northern iron formation and cause its sulphidization.
NI 43-101 Resource Estimate (December 2011)
The NI 43-101 resource estimate includes significant indicated and inferred resources for both "in pit" and "out of pit" as outlined below. Significant potential exists to expand both in pit and out of pit resources as the zone remain open along strike and to depth.
The 55 Zone is largely untested below 250 metres vertical and is believed to be similar to the Southwest Zone which contains significant NI 43-101 resources both in pit (deeper) and out of pit as underground potential with improved grades.
| 55 ZONE MINERAL RESOURCE ESTIMATE |
(1), (2), (3), (4), (5), (6), (7), (8), (9), (10) |
| Category |
Location |
Cutoff Grade (g/t) |
Tonnes |
Au (g/t) |
Au (oz) |
| |
| INDICATED |
| |
| Indicated |
In Pit |
0.35 |
5,997,824 |
1.15 |
222,556 |
| Indicated |
Out of Pit |
2.00 |
56,304 |
2.65 |
4,801 |
| |
|
|
6,054,128 |
1.17 |
227,357 |
| |
| INFERRED |
| |
| Inferred |
In Pit |
0.35 |
3,417,874 |
0.78 |
86,161 |
| Inferred |
Out of Pit |
2.00 |
139,130 |
2.83 |
12,665 |
| |
|
|
3,557,004 |
0.86 |
98,826 |
| |
| |
326,183 |
- The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
- 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.
- The Mineral Resources are based on 313 diamond drill holes over a 2km strike of the Golden Highway Project's 55 Zone, Southwest Zone and Windjammer South gold zones and includes drilling from historical operators Lac Minerals (a subsidiary of Barrick Gold) during the period 1994 - 1997, and Noranda Exploration during the period 1983 - 1989.
- Assay composites were capped to 35 g/t.
- A modeling cut-off grade of 0.25 g/t Au was only used to create a three-dimensional wireframe for subsequent interpolation.
- A block model was created with 10x10x10 metre blocks using inverse distance cubed grade interpolation. Indicated Mineral resources were classified with a 35 metre search radius.
- A bulk density of 2.80 t/m³ was used for all tonnage calculations.
- A gold price of US$1,200/oz and an exchange rate of US$1.00 = C$1.00 was utilized in the Au cut-off grade calculations of 0.35 g/t for open pit and 2.0 g/t for out of pit.
- Open pit mining costs were assumed at C$1.50/t for mineralized material, C$1.50/t for waste rock and C$1.00/t for overburden, while out of pit mining costs were assumed at C$62/t, with process costs of C$11/t, G&A of C$2.00/t, and a 95% metallurgical recovery.
- Totals in the table may not sum due to rounding.
Some highlights(1) from past drilling include the following:
| MA-02-06: | | 7.54 g/t Au over 6.50 metres |
| MA-04-25: | 12.76 g/t over 4.30 metres |
| MA-05-27: | 11.23 g/t Au over 1.70 metres |
| MA-05-03: | 5.81 g/t Au over 7.40 metres |
| MA-05-32: | 9.04 g/t Au over 5.90 metres |
| MA-08-49: | 9.68 g/t Au over 27.75 metres |
| MA-08-43: | 42.09 g/t Au over 2.90 metres |
| MA-10-01: | 4.15 g/t Au over 5.50 metres |
| MA-10-14: | 14.9 g/t Au over 2.64 metres |
| MA-10-20: | 3.51 g/t Au over 7.00 metres |
(1) True widths are not known at this time. |
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