RE: News Out Yup, and someone at Polltit is evidently very interested
News release
2013-04-15 09:32 ET - News Release
Mr. Greg Heaney reports
NEW GUINEA GOLD PROVIDES COMPANY UPDATE
New Guinea Gold Corp. has provided the following update on its activities and plans moving forward.
Site operations
The company is pleased to report the appointment of David Laulau as mine manager. Mr. Laulau will commence on site on April 22, 2013. Mr. Laulau is a degree-qualified mining engineer with a master of mine automation degree from Tohoku University in Japan. Mr. Laulau has, for the last 12 months, been registered mine manager and general manager at a gold mine in Papua New Guinea. Prior to that, he has experience in other operations in PNG, Australia and Peru.
Resource upgrade
The company is pleased to confirm an indicated resource of 283,000 tonnes at 3.7 grams per tonne gold for approximately 33,000 ounces Au (at 1.5 g/t Au cut-off) at its Kavursuki project. The Kavursuki vein system lies approximately one kilometre to the north of the Sinivit mine and represents an excellent opportunity for near-surface oxide mineralization.
About 46 shallow diamond drill holes have been used to calculate the resource, which remains open to the north, south and at depth. On-site metallurgical testing is proceeding to determine mineralogical makeup and recovery characteristics.
Notes to accompany the resource upgrade can be found below, and the National Instrument 43-101 technical report confirming this resource has been lodged on SEDAR.
Corporate activity
The board and executives are progressing discussions with several potential counterparties with a view to completing a transaction that will maximize value to shareholders, and secure the future of the Sinivit mine and associated exploration licences. The company will update shareholders on the status of these discussions as they progress.
Annual general meeting
The company's AGM has now been confirmed to occur on April 29, 2013, and documents have been sent to shareholders.
Legal matters
Actions by former employees
The company is actively defending claims for unpaid gratuities by two former employees who were related to a former director, chief executive officer and chairman. The company has recently filed a defence to the claims made by the former employees and is awaiting a court date to be confirmed. The company has joined the former director, CEO and chairman to the action.
Notes to accompany the mineral resource estimate:
The Kavursuki vein system is 90 per cent owned by New Guinea Gold and 10 per cent owned by Gold Mines of Niugini Holdings.
The mineral resource estimate is based on mineralized intercepts in 46 drill holes for 2,843 metres; all drilling has been conducted by NGG: 12 holes, 1,260 m in 1990; 12 holes, 597 m in 2010; 20 holes, 951 m in 2011; and two holes, 35 m in 2012. The holes drilled by NGG are collared using HQ triple-tube drill tools. Some holes may be reduced to NQ size at depth in order to continue the hole.
Eight hundred fifty-four one-metre composite samples were used to inform the resource. Core samples are dried, crushed and pulverized to 85 per cent passing through a 75-micron mesh. The pulps are assayed for gold and copper using a 50-gram split, fire assay (FA) and AA finish. Rejects and pulps are stored at ALS Minerals in Townsville, Australia, for future reference.
Downhole surveys were conducted with an Eastman-style single-shot camera on 25 of the 46 holes; generally holes have two readings per hole depending on final drill depth.
MA conducted a review of the data and sample collection from drilling programs on the project in May, 2011; recommendations were made to improve quality assurance/quality control procedures.
NGG drill core was available for review on site.
MA has reviewed the company procedures and protocols for NGG, and has visited site on five occasions throughout 2010 and once in May, 2011.
QA/QC consisted of internal laboratory standards, blanks and repeats (272 in total), in addition, NNG submitted 14 standards for analysis.
The geological resource is constrained by domains consisting of 3-D models and the lease boundary. Drill hole data were displayed in section and elevation slices showing assays and geology. Intercepts were selected and coded for each vein domain based primarily on a grade greater than 0.2 g/t Au with a higher grade core identified above 0.6 g/t.
Vein domains are based on at least two drill hole intercepts and width control from surface mapping/trenching samples (trench grades were not used to inform gold estimates).
Drill intercepts within each lode are flagged in a database table and composited to give informing sample downhole composites.
Informing samples were composited to one-metre lengths, search parameters were set along strike and downdip, a moving ellipsoid of 200 m was used to select the informing samples, a minimum of three and maximum of 18 could be selected.
No bulk density samples have been collected from Kavursuki; the assumed bulk density of the halo mineralization and vein is 2.5 tonnes per cubic metre. The estimation block size was five m (x) by 20 m (y) by eight m (z). A subblock size of 1.25 m (x), five m (y) and two m (z) was used to increase the resolution of the model at the edges of domains.
Grade was interpolated by domain using ordinary kriging estimation with parameters based on directional variography. Low-grade and higher-grade domains were combined providing one variogram for low-grade veins and one for higher-grade veins. Estimates were validated against informing samples, and with nearest neighbour and inverse distance squared interpolation.
Volume of each vein domain was defined by wireframes in 3-D space that were used to flag resource blocks.
Results are stored in a block model that was screened for topography by block.
Resources have been classified as inferred for the domained areas based on the number of informing samples, average distance and the kriging variance for each block. Variable cut-off grades for Au are reported, with 1.5 g/t being the base case. Given the shallow nature of the mineral resource and its close proximity to the operating Sinivit mine, there is reasonable prospect of economic extraction at all cut-off grades applied.
Reported tonnage and grade figures have been rounded off to the appropriate number of significant figures to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers.
There has been no depletion applied to the resource, no previous mining has occurred at Kavursuki either by NGG or artisanal miners.
The mineral resource stated above for the Kavursuki project has been filed on SEDAR and was calculated by Ian Taylor, MAusIMM (CP), of Mining Associates Pty. Ltd., an independent qualified person in accordance with National Instrument 43-101.
We seek Safe Harbor.
- A grade cap of 12 g/t Au and 18 g/t was applied to informing composites in the higher-grade domains to remove outliers, low-grade domains (greater than 0.2 g/t but less than 0.6 g/t) did not require grade capping.