Kaminak Announces Updated Mineral Resource Estimate at Coffee Gold
Project: Oxide Gold Ounces Increased by 73%; Indicated Gold
Resources Added
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 28, 2014) -
Kaminak Gold Corporation (TSX-VENTURE:KAM) is pleased to announce
an updated National Instrument 43-101 Mineral Resource Estimate on
the Coffee Gold Project, Yukon, Canada. At a base case cut-off of
0.5 grams per tonne gold ("g/t Au") for Oxide and Transitional
material and a 1g/t Au cut-off for Sulphide material, the updated
mineral resource estimate consists of an Indicated Resource of 14
million tonnes grading at 1.56g/t Au for 719,000 ounces, including
480,000 ounces gold classified as Oxide, and an Inferred Resource
of 79 million tonnes grading at 1.36g/t Au for 3,434,000 ounces of
gold, which includes 2,078,000 ounces gold classified as Oxide.
This updated Resource Estimate will be incorporated together
with the metallurgical results reported in 2013 (see news release 2
December 2013) into a Preliminary Economic Assessment ("PEA"), the
next step for the Coffee Project, set to commence later this month.
The Company is fully funded through to completion of the PEA, which
is budgeted at $0.5M to completion. The Company currently has $8
million in cash and no debt.
Coffee Gold Project Highlights
- 719,000 ounces gold Indicated and 3,434,000 ounces gold
Inferred, which translates to a 28% increase in overall gold
resources since December 2012 and includes a 73% increase in total
Oxide gold ounces.
- 57% of the Oxide and Transition resource is within 100m of
surface and 80% is within 150m.
- Oxide resources from 0-150 metres below surface totaling 8Mt at
1.77g/t Au for 467,000 ounces gold Indicated, and 48Mt at 1.28g/t
Au for 1,962,000 ounces gold Inferred.
- Metallurgical test work in 2013 returned column leach gold
recoveries of ≥90% on 1 inch crushed Oxide material from Latte and
Supremo deposits within 40 days of leaching, including 81% gold
recovery after ten days leaching.
- All deposits remain open along strike and at depth and the
Company believes that there is high potential to add near surface
oxide ounces proximal to the current NI 43-101 resource.
Images of the block model at various cut-off grades are
available on the Kaminak website at www.kaminak.com.
"Drilling in 2013 has successfully expanded the gold
resources at Coffee and more importantly, contributed additional
near surface Oxide gold resources, including over 450,000 ounces
Indicated, plus 2,000,000 ounces Inferred," stated Eira
Thomas, Kaminak President & CEO. "The results of our
recently completed metallurgical test work program, where column
leach testing returned greater than 90% gold recoveries in just
forty days at a 1 inch crush, provides further support for the
potential to develop a low cost, high return, heap leach gold
project at Coffee. We anticipate another productive year in 2014,
including the initiation of a PEA and continued drilling of
priority targets at Coffee. All of our deposits remain open along
strike and to depth."
Table 1: Coffee Gold Project Mineral Resource
Estimate* |
Area |
Resource Category |
Cut Off Grade (Au g/t) |
Oxidation Type |
Tonnage ('000 tonnes) |
Grade (Au g/t) |
Contained Gold ('000oz) |
Total |
Indicated |
0.50 |
Oxide |
8,555 |
1.75 |
480 |
|
|
0.50 |
Upper Transition |
3,619 |
1.32 |
153 |
|
|
0.50 |
Lower Transition |
2,141 |
1.21 |
83 |
|
|
1.00 |
Sulphide |
42 |
1.52 |
2 |
|
|
|
Total |
14,357 |
1.56 |
719 |
|
Inferred |
0.50 |
Oxide |
50,437 |
1.28 |
2,078 |
|
|
0.50 |
Upper Transition |
15,967 |
1.39 |
714 |
|
|
0.50 |
Lower Transition |
6,662 |
1.43 |
306 |
|
|
1.00 |
Sulphide |
5,525 |
1.89 |
336 |
|
|
|
Total |
78,591 |
1.36 |
3,434 |
Supremo |
Indicated |
0.50 |
Oxide |
2,967 |
2.13 |
203 |
|
|
0.50 |
Upper
Transition |
847 |
1.62 |
44 |
|
|
0.50 |
Lower
Transition |
183 |
1.78 |
11 |
|
|
1.00 |
Sulphide |
0 |
0.00 |
0 |
|
|
|
Subtotal |
3,997 |
2.01 |
258 |
|
Inferred |
0.50 |
Oxide |
42,003 |
1.21 |
1,636 |
|
|
0.50 |
Upper
Transition |
9,001 |
1.30 |
377 |
|
|
0.50 |
Lower
Transition |
2,579 |
1.41 |
117 |
|
|
1.00 |
Sulphide |
564 |
1.47 |
27 |
|
|
|
Subtotal |
54,146 |
1.24 |
2,156 |
Latte |
Indicated |
0.50 |
Oxide |
5,588 |
1.54 |
277 |
|
|
0.50 |
Upper
Transition |
2,773 |
1.22 |
109 |
|
|
0.50 |
Lower
Transition |
1,958 |
1.16 |
73 |
|
|
1.00 |
Sulphide |
42 |
1.52 |
2 |
|
|
|
Subtotal |
10,361 |
1.38 |
461 |
|
Inferred |
0.50 |
Oxide |
5,673 |
1.23 |
224 |
|
|
0.50 |
Upper
Transition |
3,518 |
1.46 |
166 |
|
|
0.50 |
Lower
Transition |
3,878 |
1.43 |
179 |
|
|
1.00 |
Sulphide |
4,529 |
1.95 |
284 |
|
|
|
Subtotal |
17,599 |
1.51 |
853 |
Double Double |
Inferred |
0.50 |
Oxide |
1,772 |
2.99 |
170 |
|
|
0.50 |
Upper
Transition |
1,974 |
1.81 |
115 |
|
|
0.50 |
Lower
Transition |
206 |
1.49 |
10 |
|
|
1.00 |
Sulphide |
189 |
2.21 |
13 |
|
|
|
Subtotal |
4,139 |
2.32 |
309 |
Kona |
Inferred |
0.50 |
Oxide |
989 |
1.48 |
47 |
|
|
0.50 |
Transition |
1473 |
1.20 |
57 |
|
|
1.00 |
Sulphide |
244 |
1.57 |
12 |
|
|
|
Subtotal |
2,706 |
1.34 |
116 |
*
Base Case cut-off grade of 0.5g/t Au for Oxide and Transition
mineral resources, and 1.0g/t Au for Sulphide mineral resources,
are based on reasonable projections of technical and economic
parameters which demonstrate reasonable prospects of economic
viability. All figures are rounded to reflect the relative accuracy
of the estimates. Some categories may not balance due to rounding.
Mineral resources are not mineral reserves and do not have a
demonstrated economic viability. |
2013 DRILLING PROGRAM OBJECTIVES COMPLETED
The Company announced on December 12, 2012, the maiden National
Instrument 43-101 Mineral Resource Estimate on the Coffee Gold
Project, of 64 million tonnes grading at 1.56 grams per tonne gold
("g/t Au") for 3,236,000 ounces of gold at a base case cut-off of
0.5g/t Au for Oxide and Transitional material and a 1g/t Au cut-off
for Sulphide material. During 2013, the Company completed an
additional 45,000m of drilling with the objective of expanding the
resources along strike, and 10,000m of infill drilling within a
portion of the Latte and Supremo T3 deposits, with the objective to
delineate an initial component of Indicated Resources.
All objectives were achieved with the successful increase of
Inferred Resources to a total of 79Mt at 1.36g/t Au for 3,434,000oz
Au and the delineation of Indicated Resources over a 500m strike
length at both the Latte and Supremo T3 deposits totalling 14Mt at
1.56g/t Au for 719,000oz Au.
DEPTH PROFILE & CLASSIFICATION OF OXIDE & TRANSITIONAL
RESOURCES
Since initial discovery in 2010, the Company's drill strategy
has been primarily to target near-surface gold mineralization up to
a depth of approximately 200 metres below surface with the
objective of delineating resources, which may potentially be
amenable to open pit mining. The outstanding ≥90% column leach
metallurgical recoveries from Oxide mineralization (see news
release 2 December, 2013) provides additional rationale for
focussing resource definition on delineation of shallow oxidized
mineralization.
As outlined in Table 1, approximately 92% of the Indicated plus
Inferred Mineral Resource Estimate is comprised of Oxide and
Transitional ('Upper' and 'Lower') mineralization. Table 2 below
further details the breakdown of Oxide and Transitional resources
by depth below surface. Approximately 57% of the Oxide and
Transitional resource occurs within 100 metres below surface and
80% occurs from 0-150 metres below surface.
Table 2: Proportion of Oxide and Transitional Resources
in 50m increments below surface for the Coffee Gold Project
Indicated and Inferred Mineral Resource Estimate* |
Depth |
Indicated |
Inferred |
Total |
(metres below surface) |
Oxide |
Transitional |
Oxide |
Transitional |
Resources |
0-50 |
54% |
1% |
41% |
1% |
29% |
50-100 |
31% |
24% |
35% |
13% |
28% |
100-150 |
12% |
43% |
18% |
33% |
23% |
150-200 |
3% |
28% |
5% |
33% |
14% |
200-250 |
0% |
3% |
0% |
17% |
5% |
>250m |
0% |
0% |
0% |
3% |
1% |
* Resources are represented as a proportion of total
ounces per classification and depth below surface, calculated at
0.5g/t Au cut-off. |
During the 2013 field season, Kaminak undertook a sampling
program testing the cyanide soluble characteristics of the gold in
the Coffee Deposit. Samples selected for AuCN analysis were
restricted to intervals where fire assay gold grades are greater
than 0.3g/t. This data is reasonably distributed but, because it
excludes lower-grade sample intervals, is not sufficient to support
direct estimation of AuCN estimates in model blocks at this point
in time. As an alternative, the ratio of AuCN/AuFireAssay was
calculated in samples where AuCN data is present. These ratios were
then interpolated in the block model and were utilized in
combination with qualitative (visual) estimates of the intensity of
oxidation, to provide information regarding the depth and intensity
of oxidation in the structural corridors which host mineralization.
Oxidation is channeled along the structural corridors that host the
gold deposits, and it is common to find intense oxidation at depths
of over 200m below surface. Strong oxidation is present over the
majority of the Supremo and Double Double deposits. Oxidation is
less pervasive at Latte, extending to about 125m below surface in
some areas.
Four oxide types or domains have been interpreted for the Coffee
deposit as described below.
|
Oxide
Zone: |
Intense to pervasive (>90%) oxidation |
|
Upper
Transition Zone: |
Moderate to intense (50-90%) oxidation |
|
Lower
Transition Zone: |
Weak
to moderate (10-50%) oxidation |
|
Sulphide Zone: |
Fresh
to weak (<10%) oxidation |
The Oxide Zone is relatively consistent and is supported by
visual logging as well as an interpretation of the AuCN data over a
broad and representative sample set. The degree of oxidation is
variable within the Upper and Lower Transition zones as reflected
by the relatively large oxidation percentage ranges listed above.
The Company intends to continue collecting AuCN data with the
objective of improving the resolution of cyanide gold leachability
within the Upper Transition Zone.
In contrast to the maiden NI 43-101 Inferred Mineral Resource
Estimate (announced 12 December 2012), which utilized only
qualitative visual logging to define the oxidation surfaces, the
combination of qualitative and quantitative data utilized in the
updated Indicated and Inferred Coffee Mineral Resource Estimate
resulted in an overall increase in the proportion of Oxide tonnage
within the model, from approximately 45% to 60-65%. This increase
is due to the focus of 2013 exploration drilling programs on the
continued delineation of shallow Oxide resources, and the
re-classification of some resources from Transitional Zone within
the 2012 model to Oxide Zone within the 2013 model.
COFFEE GOLD PROJECT MINERAL RESOURCE ESTIMATION PARAMETERS
The Coffee Gold Project January 2014 Indicated and Inferred
Mineral Resource Estimate was completed by independent Qualified
Person Robert Sim, P.Geo., of SIM Geological Inc. and is reported
in accordance with the guidelines of the Canadian Securities
Administrators National Instrument 43-101. The estimate is derived
from 961 diamond core and reverse circulation drill holes completed
from 2010 to 2013 for a total of 185,000 metres. The majority of
the resource comprises the Latte - Supremo - Double Double
deposits, which occur within close proximity to one another over an
area measuring approximately 2km x 2km. The Kona deposit lies
approximately 2.5 kilometres west of Latte.
The base case cut-off grade of 0.5g/t Au for Oxide and
Transitional zones was determined based on assumptions that these
are amenable to open pit mining methods and lower-cost extraction
of the contained gold through heap leaching. The 1.0g/t Au base
case cut-off limit for Sulphide zone resources is based on
assumptions that this type of material may require underground
mining methods and higher processing costs.
In order to provide additional information regarding the
sensitivity of resources at higher cut-off grade thresholds, Table
3 presents a full breakdown of the Coffee Gold Project Mineral
Resource Estimate by deposit and oxidation profile.
Table 3: Coffee Gold Project Sensitivity of Resources
at Various Cut-Off Limits* |
Resource Category |
Oxidation Type |
Tonnage ('000 tonnes) |
Grade (Au g/t) |
Contained Gold ('000oz) |
0.3g/t Au Cut Off for Oxide and Transitional, 1g/t
Au Cut Off for Sulphide |
Indicated |
Oxide |
10,351 |
1.51 |
503 |
|
Upper
Transition |
4,413 |
1.15 |
163 |
|
Lower
Transition |
2,773 |
1.03 |
92 |
|
Sulphide |
42 |
1.52 |
2 |
|
Total |
17,579 |
1.35 |
760 |
Inferred |
Oxide |
74,192 |
1.00 |
2,376 |
|
Upper
Transition |
22,026 |
1.12 |
790 |
|
Lower
Transition |
8,869 |
1.17 |
333 |
|
Sulphide |
5,525 |
1.89 |
336 |
|
Total |
110,612 |
1.08 |
3,836 |
1.0g/t Au Cut Off |
|
|
|
|
Indicated |
Oxide |
5,307 |
2.37 |
405 |
|
Upper
Transition |
2,007 |
1.79 |
116 |
|
Lower
Transition |
949 |
1.82 |
56 |
|
Sulphide |
42 |
1.52 |
2 |
|
Total |
8,305 |
2.16 |
579 |
Inferred |
Oxide |
22,658 |
1.99 |
1,448 |
|
Upper
Transition |
8,014 |
2.07 |
533 |
|
Lower
Transition |
3,569 |
2.04 |
235 |
|
Sulphide |
5,525 |
1.89 |
336 |
|
Total |
39,766 |
2 |
2,552 |
1.5g/t Au Cut Off |
|
|
|
Indicated |
Oxide |
3,281 |
3.08 |
325 |
|
Upper
Transition |
939 |
2.44 |
74 |
|
Lower
Transition |
445 |
2.52 |
36 |
|
Sulphide |
16 |
2.02 |
1 |
|
Total |
4,681 |
2.89 |
436 |
Inferred |
Oxide |
12,149 |
2.66 |
1,037 |
|
Upper
Transition |
4,602 |
2.7 |
399 |
|
Lower
Transition |
2,097 |
2.62 |
177 |
|
Sulphide |
2,686 |
2.61 |
225 |
|
Total |
21,534 |
2.66 |
1,838 |
2.0g/t Au Cut Off |
|
|
|
Indicated |
Oxide |
2,097 |
3.84 |
259 |
|
Upper
Transition |
446 |
3.24 |
46 |
|
Lower
Transition |
250 |
3.14 |
25 |
|
Sulphide |
8 |
2.24 |
1 |
|
Total |
2,801 |
3.68 |
331 |
Inferred |
Oxide |
6,971 |
3.35 |
750 |
|
Upper
Transition |
2,779 |
3.33 |
297 |
|
Lower
Transition |
1,307 |
3.16 |
133 |
|
Sulphide |
1,420 |
3.4 |
155 |
|
Total |
12,477 |
3.33 |
1,335 |
* Mineral Resources using the Base Case cut-off grade
of 0.5g/t Au for Oxide and Transition mineral resources, and 1.0g/t
Au for Sulphide mineral resources are presented in Table 1. Mineral
resources are not mineral reserves and do not have a demonstrated
economic viability. |
Three-dimensional block models were created within structural
domain wireframes based on geostatistical applications using
commercial mine planning software MineSight® (v8.20). The block
size varies between deposit areas, ranging from 5 x 5 x 2 metres at
Kona and Double Double to 10 x 5 x 3 metres at Latte and Supremo.
The long axis of the blocks is aligned with the strike of the
structural domain, and the shorter dimension is aligned across the
strike direction. Interpolation parameters are defined based on a
combination of geology, drill hole spacing and geostatistical
analysis of the data. Individual structural zones, interpreted in
the various deposit areas, are segregated for modeling purposes and
dynamic search orientations are utilized which retain the banded
nature of the gold mineralization in the resource model. The
effects of anomalous outlier samples are controlled during block
grade estimation through a combination of traditional top-cutting
and outlier limitations which control the distance of influence of
higher-grade data in the model. Block gold grades are estimated
using ordinary kriging.
The resources are classified according to their proximity to
sample locations and are reported, as required by NI 43-101,
according to the CIM Definition Standards for Mineral Resources and
Mineral Reserves. The Coffee Mineral Resource Estimate comprises
relatively continuous, sub-vertical zones of gold mineralization
that show the potential to be mined from surface or using
underground mining methods (or a combination of the two). The
reasonable prospects of economic extraction of the four deposit
areas has been tested using floating cone pit shells based on
reasonable projections of technical and economic parameters. The
results show that the majority of the Oxide and Transition resource
could be amenable to open pit extraction methods and the deeper
Sulphide resources would likely be subject to underground mining
methods. These tests are very preliminary in nature and are
intended to determine the general projections for reasonable
prospects of economic extraction of the mineral resource. There are
no mineral reserves at the Coffee project. These results have been
used in defining the projected base case cut-off thresholds for
Oxide, Transition and Sulphide resources as described
previously.
Full details of the modeling parameters and assumptions will be
published in an updated NI 43-101 Coffee Technical Report, which is
currently in preparation.
Images of the block model at various cut-off grades are
available on the Kaminak website at www.kaminak.com.
About Kaminak
Kaminak Gold Corporation (TSX-VENTURE:KAM) is exploring the
Coffee Gold Project, a high-grade oxidized gold project located in
the emerging White Gold District of the Yukon Territory, Canada.
Since 2010, Kaminak has drilled 16 separate and distinct gold
discoveries and established a NI 43-101 Mineral Resource Estimate
consisting of an Indicated Resource of 14 million tonnes grading at
1.56g/t Au for 719,000 ounces, including 480,000 ounces gold
classified as Oxide, and an Inferred Resource of 79 million tonnes
grading at 1.36g/t Au for 3,434,000 ounces of gold, which includes
2,078,000 ounces gold classified as Oxide at a base case cut-off of
0.5g/t Au for Oxide and Transitional material and a 1g/t Au cut-off
for Sulphide material. Coffee also hosts numerous drill discoveries
and untested gold-in-soil anomalies outside of the resource area
that have the potential to yield new oxide ounces.
All gold discoveries drilled at Coffee were made by drilling
directly under gold-in-soil anomalies. The lack of glaciation over
the Coffee property has allowed in-situ soil-sampling to be
utilized as a highly effective and low cost exploration tool. All
deposits within the resource remain open along strike and at depth
and contain high-grade mineralization that comes to surface.
Additionally there are over 25km of untested soil anomalies on the
property that warrant drill testing, and only 20% of the 150,000
acre Coffee Property has been systematically grid soil sampled.
The Company presently has C$8 million in cash and no debt and is
currently embarking upon mining scoping studies and planning the
2014 exploration program.
On behalf of the Board of Directors of Kaminak
Eira Thomas, President and CEO
Kaminak Gold Corporation
For further information about Kaminak Gold Corporation or this
news release, please visit our website at www.kaminak.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Kaminak is currently in the final stages of preparing the NI
43-101 Coffee Technical Report, which will contain details of the
mineral resource estimate and the recent metallurgical test work.
This report is required to be announced and filed on SEDAR and the
Kaminak website within 45 days of this news release.
Robert Sim, P.Geo., Consultant to the Company and a Qualified
Person as defined by National Instrument 43-101 ("NI 43-101") has
reviewed and approved the contents of this news release related to
the mineral resource estimate. All samples were collected in
accordance with industry standards. Splits from the drill core and
RC percussion samples were submitted to the ALS sample preparation
laboratory in Whitehorse, Yukon Territory, Canada, and then
transferred to ALS' laboratory in Vancouver, British Columbia,
Canada for fire assay and ICP analysis. Accuracy of results is
tested through the systematic inclusion of standards, blanks and
check assays. The mineral resource estimate referenced in this
press release was prepared in November 2013 to January 2014 by
Robert Sim, P.Geo., an independent Qualified Person as defined by
NI 43-101. Kaminak's additional disclosure of a technical or
scientific nature in this press release has been reviewed and
approved by Mr. Tim Smith, MSc, P.Geo., Kaminak's Vice President of
Exploration, who serves as a Qualified Person under the definition
of National Instrument 43-101.
Cautionary Note concerning estimates of Inferred and Indicated
Resources:
This news release uses the terms "Inferred Resources" and
"Indicated Resources", which have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
Inferred and/or Indicated Mineral Resource will ever be upgraded to
a higher category. Under Canadian rules, estimates of Inferred
Resources may not form the basis of feasibility or other economic
studies. Kaminak advises U.S. investors that while this term is
recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize it. U.S.
investors are cautioned not to assume that part or all of an
Inferred and Indicated resource exists, or is economically or
legally minable.
Caution Concerning Forward-Looking Statements
Certain disclosures in this release, including management's
assessment of plans, projects and intentions with respect to the
further development of the Coffee Project and future exploration
programs, constitute forward-looking statements that are subject to
numerous risks, uncertainties and other factors relating to
Kaminak's operations as a mineral exploration company that may
cause future results to differ materially from those expressed or
implied in such forward-looking statements, including risks as to
the completion of the plans and projects. Readers are cautioned not
to place undue reliance on forward-looking statements. Except as
required by law, Kaminak expressly disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
The mineral resource figures referred to in this press release
are estimates and therefore insufficient to allow meaningful
application of the technical and economic parameters to enable an
evaluation of technical or economic viability and no assurances can
be given that mining of the Coffee Project is commercially viable
or that the indicated levels of gold will be produced. Such
estimates are expressions of judgment based on knowledge, mining
experience, analysis of drilling results and industry practices.
Valid estimates made at a given time may significantly change when
new information becomes available. While the Company believes that
the resource estimates included in this press release are well
established, by their nature, resource estimates are imprecise and
depend, to a certain extent, upon statistical inferences which may
ultimately prove unreliable. If such estimates are inaccurate or
are reduced in the future, this could have a material adverse
impact on the Company.
Kaminak Gold CorporationTony RedaVice-President of Corporate
DevelopmentToll Free: 1-888-331-2269 or Direct:
604-646-4534info@kaminak.comwww.kaminak.com
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