Post by
Bullboards_Seal on Oct 28, 2011 4:50pm
NR - Golden Fame Clarifies Previous Technical Disc
Golden Fame Clarifies Previous Technical Disclosure
VANCOUVER, BRITISH COLUMBIA, October 28th, 2011 - Golden FameResources Corp. (TSXV:GFA) (the "Company") reports that as a result of areview by the BC Securities Commission, the Company is issuing thisnews release to clarify previous technical disclosure.
Algun Dia Project - Technical Report
The technical report dated June 24, 2011 concerning theCompany's Algun Dia property, located east of Guanajuato, Mexico wasnot filed on SEDAR until October 13, 2011. It is being revised by thereport author, Caracle Creek International Consulting, of SudburyOntario, to comply with the current Form 43-101F1 which becameeffective on June 30, 2011, and will be filed on SEDAR once available.Accordingly, investors should not rely upon the report filed onSEDAR on October 13, 2011.
Clarifications
The Company has replaced its Fact Sheet dated September 21,2011 and its Investor Presentation dated October 2011 and revised itswebsite and other marketing documents as those documents and theCompany's news release of May 18, 2011 (collectively, the "Documents")contained statements that did not comply with NI 43-101. The Companyretracts the disclosure, which was contrary to section 2.3(1) of NI43-101, of the grade of a deposit that has not been classified as amineral resource and which was not based on a sufficient number ofdrill holes to determine a meaningful average grade of vein material.The Company also retracts:
1. the comment in the Investor Presentation attributed toLarry Dick that refers to the Algun Dia project as a potentialnear-term production scenario, which is premature given that theCompany has not established mineral resources or mineral reserves andwhich did not adequately disclose the risk that further explorationwork may not establish mineral resources or support a productiondecision;
2. statements made in the Documents as to the economics ofits properties, including projected extraction costs and profits,which were contrary to section 2.3(1) of NI 43-101; and
3. references in the Documents to "ore" and "ore body" asthese terms indicate economic viability which can only be demonstratedby establishing mineral reserves.
With respect to statements in the Documents as to historicalresource estimates pertaining to the Gold Ridge property, referenceshould have been made to the technical report entitled "TechnicalReport Gold Ridge Project" dated effective July 31, 2010 which wasfiled on SEDAR on October 15, 2010.
Effective December 1986, Queenstake Resources, the thenoperator of the Gold Ridge Mine, calculated a reserve estimate for theGold Ridge mine using a combination of drill hole data, undergroundsampling data and mining experience in the Gold Ridge vein. Theyplotted the drill holes and sample data on a longitudinal section ofthe vein and divided the vein into blocks with each block assigned atonnage based on the dimensions of the block and average thickness ofthe vein in the block and the average of the grades of the drill holeinformation and any vein sampling.
The historical Queenstake reserve estimate used categories,including "proven and probable reserves" and "possible reserves",which were common terminology used in 1986 in classifying resourcesbut are different than the categories set out in sections 1.2 and 1.3of NI 43-101. Based on the categories set out in NI 43-101, all ofthe historical Queeenstake estimate would be classified as a potentialmineralization.
The Company believes that the Queenstake reserve estimate wasmade by qualified mining professionals who were familiar with the GoldRidge mine. However, a qualified person has not done sufficient workto classify the historical estimates as current mineral resources ormineral reserves and the Company is not treating the historicalestimate as current mineral resources or mineral reserves.
The Company has continued to interpret historical maps andreports, historical and the Company's drill hole results and have helddiscussions with people who were familiar with the history of theproject prior to its acquisition by the Company. Based on this work andthe various discussions, the Company has so far been unable tosubstantiate that all or any part of the historical reserve is stillpresent in the mine.
The Company believes that the most efficient approach todetermine a resource at the Gold Ridge mine will be to do sufficientrehabilitation of the Gold Prince tunnel to allow for new undergrounddrilling to test the vein both above and below the main Level 6 accesstunnel.
Supplemental Information
The Company provides the following information to supplementthe disclosure regarding its Algun Dia project contained in theCompany's May 18, 2011 news release which did not provide the level ofdetail required by sections 3.2 and 3.3 of NI 43-101. Referenceshould be made to the amended and restated technical report concerningthe Algun Dia property that will be filed on SEDAR from which thetechnical information below is taken.
Prior to the Company's involvement, only sporadic explorationwork has been conducted on the Algun Dia property by the concessionholder since 1987 as well as minimal exploration work in the form ofsmall mining operations carried out by local prospectors. From 2002to 2007, approximately 900 meters of underground workings wereconstructed on several prospects within the project area, among whichSanta Cecilia, in the San Cayetano structure, is the most significantin terms of size. Historical reports indicate that in this sameperiod, the property produced approximately 15,000 tonnes of ore thatwas processed at a mill in Guanajuato owned by Penoles Mining Companyof Mexico.
In 1997 and 1998, 9 diamond core holes totaling approximately2,000 meters were drilled on the property. Two of the drill holes(AD-08-97 and AD-10-97) were drilled at angles of -75 degrees and bothintersected the Santa Cecilia vein at approximately 140 metersdown-dip from the underground workings. These holes are collared tothe west of the Santa Cecilia portal and are located respectively atUTM 240111E, 2338200N and 240059E, 2338187N (zone 14, datum WGS84).Records indicate that both holes encountered gold, silver and coppermineralization at grades and over widths similar to what was mined inthe overlying workings. Drill hole number AD-08-97 encountered 14meters from 128 - 142 meters depth, assaying 2.34 ppm Au, 120.3 ppm Agand 1.88% Cu. Hole AD-10-97 intersected 16 meters from 146 - 160meters depth assaying 1.71 ppm Au, 104 ppm Ag and 1.51% Cu. Both holeswere drilled to the east northeast with the intention of crossing thenorthwest trending and southwest dipping structure at angles thatwould approach true width according to the interpretation of thegeology. Further work is required to define the true thickness ofthis mineralization.
A third drill hole AD-11-97 was drilled east northeast from thesame location as AD-08-97 at an inclination of - 45º, to test the updip extension of the mineralized zone intersected at depth. AD-11-97intersected anomalous gold, silver and copper values over shorterintervals indicating that the mineralized zone continues up-dip.
Drill hole AD-06-97 was drilled east northeast at an angle of-70 degrees and was collared approximately 30 meters to the southwestof AD-11-97, along strike of the San Cayetano structure. This holeintersected primarily anomalous copper values with minor silver.AD-09-97 was drilled approximately 60 meters to the northeast of drillholes AD-08-97 and AD-10-97 in an east northeasterly direction at angleof -75 degrees but did not intersect any significant mineralization.This may indicate a heterogeneous distribution of high grade gold andsilver mineralization along the San Cayetano vein structure both alongstrike and at depth.
Results for the above holes are historic data and the Companyis unable to verify their accuracy. However, drill core for some ofthe holes was available for inspection by the Company's technicalteam. Details of drill hole sample sizes, analytical methods used andnames/locations of assay laboratories are not known.
The Company has completed an initial round of geological duediligence analysis and sampling of both surface mineralization andunderground workings on the Algun Dia property. The Company's samplingconfirmed significant gold, silver and copper mineralizationincluding an underground channel sample across a portion of the veinin the Santa Cecilia drift, located approximately 125 meters northwestof the Santa Cecilia main portal, with 3 meters grading 9.93 ppmgold, 74.1 ppm silver, and 6890 ppm copper (sample no. 66696).
As noted above, an amended and restated technical reportconcerning the Algun Dia property will be filed on SEDAR, andinvestors are referred to this document for full assay results of the2011 underground sampling program. Samples from the 2011 samplingprogram were prepared and analyzed using conventional methods byALS-Chemex at their laboratory in Vancouver, BC. Full details ofsample preparation and assay procedures are given in the technicalreport mentioned above.
Lawrence Dick, a director of the Company, is the qualifiedperson (as defined in NI 43-101) who supervised the preparation of,and approved, the technical information in this news release.
For further information about Golden Fame Resources and this news release, contact Savio Chiu, CFO, at 604 688 9588.
On Behalf of the Board of Directors,
Golden Fame Resources Corp.
"Graham Clark"
Graham Clark
President, CEO & Director
Neither the TSX Venture Exchange nor its Regulation ServicesProvider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of thisrelease.