Galane Gold Ltd. Announces a Mineral Resource Update for Its Botswana Properties
March 18, 2013
TORONTO, Mar. 18, 2013 /CNW/ -
The measured and indicated gold resource at the Mupane Property, excluding the Mupane Slimes Dump (described below), has increased by 17,600 ounces of gold compared to the figures presented in the 2011 Technical Report, despite two years of depletion through mining activities. The Company has also declared, for the first time, a measured mineral resource of 91,800 ounces of gold at the Mupane Slimes Dump, which is located next to the Mupane plant and is currently the Company's operating slimes dump.
The mineral resource estimate, effective as at
The following table summarises the results of the mineral resources update:
Galane Gold Mineral Resource Statement |
Effective Date: December 31, 2012 |
Category | Measured | Indicated | Measured and Indicated | Inferred | |||||||||
Deposit | Cutoff grade (g/t) |
Tons (000) |
AU (g/t) |
Au (000 oz) |
Tons (000) |
AU (g/t) |
Au (000 oz) |
Tons (000) |
AU (g/t) |
Au (000 oz) |
Tons (000) |
AU (g/t) |
Au (000 oz) |
Jim's Luck | 0.50 | 859 | 1.05 | 29.0 | 1,659 | 1.20 | 64.0 | 2,518 | 1.15 | 93.0 | 1,337 | 1.08 | 46.4 |
Tholo | 0.50 | 20 | 1.14 | 0.7 | 926 | 2.28 | 67.8 | 945 | 2.26 | 68.6 | 61 | 1.53 | 3.0 |
Golden Eagle | 0.50 | 516 | 1.45 | 24.1 | 1,087 | 1.48 | 51.7 | 1,603 | 1.47 | 75.8 | 1,637 | 1.56 | 82.1 |
Kwena | 0.50 | 266 | 0.98 | 8.4 | 535 | 1.19 | 20.5 | 801 | 1.12 | 28.8 | 1,642 | 1.11 | 58.6 |
Tau | 0.80 | 578 | 3.00 | 55.7 | 824 | 2.75 | 72.8 | 1,402 | 2.85 | 128.6 | 723 | 3.05 | 70.9 |
Mupane Stockpiles | 702 | 0.97 | 21.9 | - | - | - | 702 | 0.97 | 21.9 | - | - | - | |
Total | 2,941 | 1.48 | 139.8 | 5,030 | 1.71 | 276.9 | 7,971 | 1.63 | 416.6 | 5,401 | 1.50 | 261.1 | |
Category | Measured | Indicated | Measured and Indicated | Inferred | |||||||||
Dump | Cutoff grade (g/t) |
Tons (000) |
AU (g/t) |
Au (000 oz) |
Tons (000) |
AU (g/t) |
Au (000 oz) |
Tons (000) |
AU (g/t) |
Au (000 oz) |
Tons (000) |
AU (g/t) |
Au (000 oz) |
Mupane Slimes Dump | 0.30 | 7,195 | 0.40 | 91.8 | - | - | - | 7,195 | 0.40 | 91.8 | - | - | - |
Total | 7,195 | 0.40 | 91.8 | - | - | - | 7,195 | 0.40 | 91.8 | - | - | - |
The Company has reported the mineral resources for its mineral deposits (including the Mupane Stockpiles) separately from the Mupane Slimes Dump, as the Company considers the Mupane Slimes Dump to be a distinct mineral resource type as it could involve a different processing methodology. The Company is still reviewing the available options with regards to the processing of the material on the Mupane Slimes Dump.
"I am particularly pleased with the addition of Jim's Luck which represents an exciting resource which the Company is expecting to be a replacement for
Mineral Resource Estimates - Methodology.
Resource tonnages and gold grades were reported at a 0.5 g/t Au cut-off grade. Resources from contiguous portions of the mineralisation outside of the optimized pit shell, and potentially amenable to underground mining methods, were reported at a cut-off grade of 0.8 g/t Au. A cutoff grade of 0.3g/t Au was used for the slimes dump due to the possible need for a different processing method.
Quality control checks were undertaken on the sampling and analytical procedures and on the assay results. Assay data from each grade shell was evaluated and appropriately capped for the purpose of this estimation. Variogram models were created for all of the grade shell solids. Block models were created for each of the grade shells and the reported resources are constrained by an optimized Whittle shell. All resources were modelled using a 0.5 g/t Au grade cutoff for each mineralised zone, except Tau where a 0.8 g/t Au grade shell was used. A gold price of
The reader is cautioned that the mine utilizes results from the conceptual optimization work solely for the purpose of constraining and reporting resources that have "reasonable prospects" for economic extraction by open pit or underground mining method and do not represent mineral reserves.
Mineral resources for Jim's Luck,
Summary of Projects
Jim's Luck
This is a maiden resource for the Jim's Luck deposit and the application process for a mining license in respect of Jim's Luck is in progress. As part of the initial requirements for a mining license, the Environmental Impact Assessment has been submitted to the appropriate regulatory authorities for approval. For further details regarding the most recent results of the exploration program at Jim's Luck, please refer to the Company's news release dated
The project is located 25 km to the west of the Mupane plant and is connected by existing gravel roads. In summary, gold mineralisation occurs in banded iron formation ("BIF") rocks hosted by other meta-sedimentary and meta-volcanic rocks equivalent to the Lady Mary formation of the Tati greenstone belt. The mineralisation is from surface, the BIFs forming a positive topographic feature. The drill base for the resource comprises 149 holes for 13,427m from the historic database, and 68 holes for 12,854m from the 2012 drill program, for a total of 217 holes for 26,281m.
Tau, Kwena and Tholo
The Tau, Kwena and Tholo resources are all from the Mupane mine area adjacent to the plant. Mineralisation is in graphitic iron formation rocks hosted by the intermediate volcanic suite comprising the Penhalonga Formation of the Tati greenstone belt. Both the Tau and Kwena pits have been mined to the initial pit limit and these resources represent depth extensions to the mineralisation. Tholo is currently being mined and these resources represent extensions to known mineralisation.
Mupane Stockpiles
The stockpiles were accumulated during the tenure of predecessor companies and the majority is made up of material from the Tau pit.
Mupane Slimes Dump
The Mupane Slimes Dump also yields its maiden resource having been drilled out by hydraulic auger drill in late 2012. This program comprised 248 auger holes for 2,418 samples (at 1.5m intervals). The dump is located next to the Mupane plant and is currently the operating slimes dump.
Additional Potential
Jim's Luck is open at depth and along strike and there is a newly discovered parallel reef currently being exposed and drilled. There are therefore three parallel mineralised zones and the strike potential is in excess of 10km.
At Tau, a future resource at deeper levels is being tested by drilling and results will be reported at a future date.
A further fourteen historic slimes dumps in the region have been auger drilled, sampled and surveyed by the Company. It is expected that applications will be made for mining licences in respect of those additional slimes dumps, if any, that are found to be economic. Subject to the granting of the necessary mining licences, it is expected that the slimes dumps will be added to the resources of the Company in the future.
Galane is also conducting ten other active exploration projects which the company expects to advance during 2013. Each of these projects provides further opportunities for the delineation of mineral resources in the future.
Mineral resource estimates and the quality control program were prepared and supervised by Steven Duma Pr. Sci. Nat, MAusIMM, Mineral Resources Manager for Mupane Gold and a "qualified person" as defined by NI 43-101.
Information of a technical and scientific nature that forms the basis of the disclosure in this news release has been prepared under the supervision of Charles Byron Pr. Sci. Nat., MAusIMM.,MGSSA and Chief Geologist for
About
Cautionary Notes
Certain statements contained in this news release constitute "forward-looking statements". All statements other than statements of historical fact contained in this news release, including, without limitation, statements regarding the preparation of a new technical report, gold production at the Mupane Slimes Dump and Jim's Luck, the extension of mine life at the
Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to: the possibility that future exploration results with not be consistent with the Company's expectations; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurance can be given that the indicated levels of gold will be produced); the Company's dependence on a single mineral project; gold price volatility; risks associated with the conduct of the Company's mining activities in
Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.
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.