Hi Ho Silver increases Fairview NI 43-101 inferred
Hi Ho Silver increases Fairview NI 43-101 inferred
2013-05-09 04:53 ET - News Release
Mr. Dennis McKnight reports
HI HO SILVER ANNOUNCES INITIAL RESOURCE ESTIMATE FOR GOLD/SILVER MINERALIZATION FOR THE SILVER CROWN DEPOSIT AT THE FAIRVIEW GOLD PROPERTY, OLIVER, BRITISH COLUMBIA, CANADA
Hi Ho Silver Resources Inc. has completed an initial resource estimate for the Silver Crown gold/silver deposit at the Fairview gold property, Oliver, B.C. APEX Geoscience Ltd. of Vancouver performed the resource estimation to determine the size of the gold and silver resource at the Silver Crown deposit that could be potentially extracted.
The estimate comprises an inferred mineral resource of 334,000 tonnes averaging 2.9 grams per tonne gold and 17.9 grams per tonne silver (at a gold block cut-off grade of one gram per tonne) and presented in the table. A sensitivity analysis of the grade and tonnage at various lower cut-off grades has been completed.
MINERAL RESOURCE ESTIMATEClassification Au (g/t) Metric Au Ag Au Ag content block cut- tonnes (g/t) (g/t) content (oz) off (oz) Inferred 0.5 355,000 2.8 17.2 32,000 196,000 1.0 334,000 2.9 17.9 32,000 192,000 1.5 267,000 3.4 19.8 29,000 170,000 2.0 209,000 3.8 21.6 26,000 145,000 2.5 155,000 4.4 24.1 22,000 121,000
Kristopher J. Raffle, PGeo, and Steven J. Nicholls, MAIG, of APEX Geoscience, are the independent qualified persons, as defined by National Instrument 43-101, responsible for the mineral resource estimation. The resource is classified as an inferred mineral resource, consistent with the CIM definitions referred to in National Instrument 43-101. The effective date of the mineral resource estimation is May 6, 2013.
A total of 48 diamond drill holes and one RC hole totalling 4,425 metres, all of the diamond drill holes being NQ-sized core, were completed to delineate the Silver Crown deposit between 1988 and 1994. The drill hole locations were verified by a site visit during April, 2013, along with confirmation sampling of the outcropping quartz vein or lode outcrops that confirmed the geological model. The historical diamond drill core could not be located for independent confirmation sampling. The mineral resource estimate is derived from a total of 48 drill holes; the average spacing of which is 15 to 30 metres. A total of 220 composites of one-metre length (and orphans greater than 0.5 metre), capped at varying levels based on the three modelled veins with capping, ranging from 15 to 24 grams per tonne for gold and 85 to 100 grams per tonne for silver, were used for the estimation.
The mineral resource was estimated by inverse distance squared within three-dimensional mineralization envelopes, defined by similar geological characteristics in terms of alteration and mineralogy, using a 0.5-gram-per-tonne-gold lower cut-off grade. The search ellipsoid orientations were based on variography which suggested a range of 40 metres along the primary axis. The search ellipsoid were used for grade interpolation into parent blocks measuring 0.5 metre (X) by 7.5 metres (Y) by 7.5 metres (Z). All blocks were classified as inferred category. There were no bulk density measurements collected at the Fairview property but there were four density measurement's collected along strike, three of which were 2.7 grams per cubic centimetre and the fourth 2.9 grams per cubic centimetre. Based on the nature of mineralization (quartz veining) and the local geology a nominal density of 2.7 grams per cubic centimetre was assigned to all of the resource.
The Fairview gold project is considered to be an early stage project, therefore little is known about the potential mining or metallurgical characteristics of this deposit. However, the resource is considered to exhibit reasonable prospects for economic extraction at today's prices for gold and silver. The base case cut-off threshold of one gram per tonne gold, which yields 334,000 tonnes at an average grade of 2.9 grams per tonne gold and 17.9 grams per tonne silver as highlighted in the table, is considered appropriate based on the projects favourable location for access, power, water, labour force and other assumptions derived from deposits of similar type and scale. More specifically, the deposit is considered to exhibit reasonable prospects for economic extraction via open-pit extraction.
The Silver Crown deposit is hosted within poly-deformed biotite-sericite quartzite metasediments of the Carboniferous to Permian Kobau group. The Silver Crown deposit comprises three closely spaced northwest-striking and moderately northeast-dipping quartz veins that outcrop on surface and are accessible by road. Historic drilling and underground workings have intersected mineralization over a 400-metre strike length and to a depth of 100 metres vertically, however relatively few drill holes have targeted mineralization below 100 metres. The deposit is open at depth and to the northwest and southeast along strike.
To date, mineralization has been modelled over a 400-metre strike length and to a depth of 115 metres from surface. Additional drilling is warranted to define the mineralization at depth and along strike to the southeast. In addition, given the ease of access and relatively good surface exposure of the veins, surface trenching, geologic mapping and sampling at intervals along strike are warranted to allow projection of modelled mineralized lodes to surface. Given that nearly 100 per cent of the deposit as currently modelled lies within a 100-metre depth from surface, further exploration and economic studies to determine if all or a portion of the Silver Crown deposit may be amenable to open-pit extraction are also warranted.
The resource estimate reported in this press release was prepared by Kristopher J. Raffle, PGeo, and Steven J. Nicholls, MAIG, of APEX Geoscience, both qualified persons as defined by National Instrument 43-101. Mr. Raffle has reviewed and verified the contents of this release. The APEX consultants are independent advisers to the company. A National Instrument 43-101 technical report will be filed with SEDAR within 45 days of this press release.
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