NewsRandsburg's Titan at 49.0 Mt of 0.24% V inferred
2010-03-18 10:17 ET - News Release
Mr. Michael Opara reports
RANDSBURG REPORTS INFERRED RESOURCE OF 259 MILLION LBS OF VANADIUM AT TITAN DEPOSIT IN ONTARIO
Randsburg International Gold Corp. has received an updated technicalreport on its 20-per-cent-owned Titan vanadium-iron-titanium propertylocated at Flett and Angus townships, 120 kilometres northeast ofSudbury, Ont. The property is jointly owned with Prophecy Resource Corp.
The property is estimated to contain an inferred resource of 49.0million tonnes at 0.24 per cent vanadium (0.43 per cent vanadiumpentoxide), 14.82 per cent titanium dioxide and 48.09 per cent ironoxide. The estimate uses a 40-per-cent Fe2O3 cut-off grade. The resultsof the independent resource estimate are summarized in the attachedtable.
MINERAL RESOURCE ESTIMATE FOR TITAN
(at a cut-off of 40% Fe2O3)
TiO2
Resource Tonnes V grade TiO2 grade V contained contained
category (millions) (%) (%) (pounds)(i) tonnes(i)
Inferred 49.0 0.24 14.82 259,174,729 7,259,310
(i) Metal recoveries were assumed to be 100 per cent for both vanadium
and titanium oxide.
The updated report, authored by Neil Prenn, PEng, a qualified person asthat term is defined under NI 43-101, of Mine Development Associates(MDA) of Reno, Nev., on Feb. 26, 2010, was prepared in accordance withNI 43-101, Standards of Disclosure for Mineral Projects, and providesan update as to ownership of a report completed by MDA for Randsburg in2006 and revised in February, 2007.
Theresource estimate at Titan is based on 38 drill holes completed between2004 and 2006, totalling 10,307 metres, that were drilled to depthsbetween 170 metres and 604 metres on a 50-metre grid. The estimate usedthe following methodologies and key assumptions:
- Grades for Fe2O3, TiO2 and vanadium were interpolated by ordinary kriging into five-metre by five-metre by 10-metre blocks from 10-metre composites from mineralized zones;
- These kriged block grades were compared with grades estimated by inverse distance methods and were essentially the same globally;
- A minimum of one composite and a maximum of nine composites were used to interpolate grades;
- Since the economics and recoveries of the different materials contained in the mineralized zone have not been defined all of the material estimated within the high-grade mineralization boundary (approximately a 40-per-cent Fe2O3 cut-off grade) and within the variogram range of 108 metres from a composite has been defined as an inferred resource.
The report is available at SEDAR.
The Titan vanadium-iron-titanium property comprises 2,150hectares and is located within 2.5 kilometres of a high-voltagetransmission line and within eight kilometres of a railway. It isamenable to open-pit mining and has an overburden cover between zeroand approximately 1.5 metres.
Dr. Ken Germundson, PhD, PGeo, is the company's qualifiedperson under the meaning of NI 43-101 for the Titan project. Dr.Germundson has reviewed this news release and approved its contents.
Randsburg also announced today that it has closed a $205,000three-year term loan with interest calculated at 10 per cent per annumsecured by a collateral mortgage registered on its Titan projectlocated in Flett and Angus townships, Ontario, together with 1.64million non-transferable share purchase warrants. Each warrant isexercisable for one common share of Randsburg at a price of 10 centsfor two years from closing. Randsburg may repay the loan from the sixthmonth to the 24th month, subject to a three-month interest bonus.During the final year of the loan, Randsburg may prepay the loanwithout any interest bonus.
The agent for the loan received $18,500 in fees and 82,000,two-year term brokers' warrants, each for one share, exercisable at 10cents. The trustee for the loan and the mortgage is an affiliate of theagent.
Randsburg intends to use the proceeds of the loan to maintainand advance its mineral properties and the balance for general workingcapital. It has reserved sufficient funds from the loan to pay interestduring the first year of the loan. Randsburg's joint-venture partner onthe Titan project, Prophecy Resource, is responsible for paying 80 percent of the interest on the loan.
All securities issued in respect of the loan or warrants aresubject to a hold period of four months and one day from the date ofclosing. The loan is subject to regulatory approval.