| | The Southwest Zone represents the largest NI 43-101 resource in Moneta's Golden Highway Project. The project was largely on care and maintenance from 1997 to 2009 when aggressive drilling in 2010 significantly expanded the deeper potential of the zone and resulted in the discovery of significant and new high grade gold mineralization.
Southwest Zone gold mineralization is hosted in Timiskaming sedimentary rocks along the southernmost of the two highly prospective branches of the Destor Porcupine Fault Zone as it crosses the Golden Highway Project. The gold mineralization is primarily found in the iron formation (south) hanging wall sediments within discrete quartz and quartz carbonate vein zones and broader zones of quartz and quartz-carbonate veinlets or stockworks. All have the demonstrated ability to cause sulphidization of the iron formation in the contact area and return significantly elevated high grade gold values.
The Southwest Zone is located along the 70° east-westerly striking banded iron formation with gold mineralization confirmed over 1,200 metres along strike, more than 200 metres in width, and to a depth of 1,200 metres. It is divided into the near surface West Block ("WB") and East Block ("EB"), the Central Block ("CB") which extends to depth, also the deeper 267 Vein Zone and Lower East Block. All display the same styles of gold mineralization and are only offset from each other by faulting which occurred post-mineralization (late).
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.
| SOUTHWEST 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 |
10,708,291 |
0.97 |
333,300 |
Indicated |
Out of Pit |
2.00 |
556,165 |
3.41 |
61,053 |
| |
|
TOTAL INDICATED |
11,264,456 |
1.09 |
394,353 |
| |
|
|
|
|
|
INFERRED |
| |
|
|
|
|
|
Inferred |
In Pit |
0.35 |
20,455,292 |
1.17 |
766,251 |
Inferred |
Out of Pit |
2.00 |
6,980,773 |
3.43 |
770,354 |
| |
|
TOTAL INFERRED |
27,436,065 |
1.74 |
1,536,605 |
| |
|
|
|
|
|
| |
1,930,958 |
- 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 up to 35 g/t based on geo-statistical support for each zone.
- 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.
2010 - Project Reactivation
The 2010 exploration program consisted of ~10,000 metres of drilling, and a series of deep mother holes and related drill hole wedges to enhance structural interpretation and assess mineralization continuity. The program was focused on deeper targets below the upper 400 metres and was successful in establishing new and significant vein zones and expanding mineralization associated with the iron formation contact returning some of the best intersections drilled to date on the Golden Highway Project. The target areas included the lateral strike extension of the high grade sulphidized iron formation, the new discrete high grade quartz vein zones, and the expansion of the high grade quartz vein stockwork system.
Near-surface mineralization
The upper 400 metres of the Southwest Zone was discovered and extensively drilled between 1987-1989 by Moneta and later from 1994-1997 by Lac Minerals (Barrick Gold) while under option from Moneta. Limited additional drilling was completed until 2010/2011 when 7 drill holes were completed to test for larger discrete veins similar to those found in the 267 Vein Zone.
Significant in-pit resource expansion is possible through additional near-surface drilling along the 1.2km strike to the east and west of the Southwest Zone as well as to depth within an optimized pit shell.
The Gap Area (283 Zone: 1.06g/t over 117.7m) is not included in the current NI 43-101 resource update. The style of gold mineralization in the Gap Area is similar to the Southwest Zone - East Block (located immediately west of the Gap Area) and is believed to have significant potential for NI 43-101 in-pit resource expansion.
Potential for in-pit resource expansion also exists in the Southwest Zone - West Block where there has been limited drilling to depth and along strike. Untested potential also exists immediately north based on Moneta's updated structural interpretation and target generation.
267 Vein Zone
The 267 Vein Zone, discovered in 2010, is the widest vein zone drilled to date on the Golden Highway Project and is interpreted to be steeply south-westerly dipping, north-westerly trending, and open in all directions.
The significant zone was discovered 225 metres south of the iron formation in the sedimentary (south) hanging wall, in a previously untested area, and suggests potential along the southern corridor of the Windjammer South and 55 Zone as well as the overall 12km strike of the sedimentary setting in the Golden Highway Project.
The 267 Vein Zone consists of a 50 metre wide quartz vein zone, including a series of NW-trending parallel quartz-carbonate veins and stringers flanking seven more dominant quartz veins ranging up to 10.5 metres in width and among the widest known from the property, all hosted in strongly altered sediments. This wide and well-mineralized quartz vein zone returned 3.43 g/t over 36.09 metres, with several high grade intervals including 10.59 g/t over 0.74 metres, 7.96 g/t over 1.05 metres, 7.49 g/t over 0.94 metres, 7.26 g/t over 0.52 metres, and 9.23 g/t over 0.44 metres.
The 267 Vein Zone has only been tested by drill wedging along 100 metres of strike and 75 metres in vertical height. Historical drill hole MN97-190, which intersected a 2.3 metre wide quartz vein zone with similar geometry 200 metres above and 100 metres north, suggests potential vertical continuity with the 267 Vein Zone.
162 Zone (Lower Central Block)
The 162 Zone was expanded by Moneta in 2010 by completing a series of drill hole wedges from MN96-162, as well as several from the 267 Vein Zone drilling. These were successful in intersecting a very large 40+ metre wide zone with high grade gold along a now confirmed 125 metre strike, all contained within a substantially larger ankerite alteration zone in the (south) hanging wall of the Central Block iron formation.
The 162 Zone significantly expands the high grade underground potential of the Southwest Zone immediately below the optimized pit.
273 Zone (Lower East Block)
The 273 Zone was originally discovered in 2010 by extending the 162 Zone drilling through the Southwest Zone - Central Block iron formation and continuing to the previously untested (south) hanging wall of the Southwest Zone - East Block iron formation. MSW10-273 tested mineralization, at a shallower elevation above the significant 162 Zone, intersecting three distinct gold zones, each with 30+ metre widths within broad ankerite alteration. Wedging from MSW10-273 and the 267 Vein Zone drilling has established east/west strike continuity over 125 metres of this significant high grade mineralization.
The discovery of the 273 Zone has added significant potential to the Southwest Zone - East Block at shallower elevations making it a priority high grade target for both in-pit and out of pit resource expansion.
273 Zone
The 273 Zone was discovered in 2010 at a shallower elevation east and above the significant 162 Zone mineralization. Three distinct gold zones, each with 30+ metre widths, were intersected in one drill hole (MSW10-273) within broad ankerite alteration. A series of drill wedges from MSW10-273 expanded the east/west strike continuity by 100 metres and intersected significant high grade mineralization in the previously untested (south) hanging wall of the Southwest Zone - East Block iron formation.
The discovery of the 273 Zone has added significant potential to the Southwest Zone - East Block at shallower elevations making it a priority high grade target for both in-pit and out of pit resource expansion.
Conclusion
The significant results obtained at depth from the 2010 Moneta drill program suggest that additional high grade gold zones may exist below the 500 metre elevation where only 18 drill holes have been completed over the 1,200 metre strike length to date. Moneta believes that there is significant potential in discovering new high grade zones and expanding recently identified zones and the overall mineralized gold envelope both in the Southwest Zone - Central and East Blocks. Drilling has also validated Moneta's structural interpretation of the geometry of the large gold mineralization.
| |
