NIOGOLD MINING UPDATES RESOURCE ESTIMATE FOR MARBAN BLOCK
NIOGOLD MINING UPDATES RESOURCE ESTIMATE FOR MARBAN BLOCK
Niogold Mining Corp. has released an updated mineral resource estimate for the Marban deposit. The Marban deposit, together with the Norlartic and Kierens deposits, are all located on Niogold's Marban block property in the Malartic gold camp, Abitibi region of Quebec, and collectively host an estimated measured and indicated resource of 32,127,000 tonnes grading 1.48 grams per tonne (g/t) gold totalling 1,531,000 ounces gold, plus an estimated inferred resource of 16,478,000 tonnes grading 1.13 g/t gold totalling 599,000 ounces gold. The Marban block property is currently under option to Aurizon Mines Ltd., now a wholly owned subsidiary of Hecla Mining Company, which can earn up to a 65-per-cent interest.
The updated mineral resource estimate was prepared by Mine Development Associates (MDA) based in Reno, Nev. MDA previously estimated the Marban deposit resources in 2010; the 2010 resource estimate has been updated to include the results of the phase 1 and 2 drilling campaigns completed since under the Aurizon option, which comprised an aggregate 68,860 metres of core drilling.
The associated table summarizes the June 1, 2013, updated total mineral resource estimate for the Marban block property.
MARBAN BLOCK PROPERTY -- MINERAL RESOURCE SUMMARY
Deposit Cut-off grade Category Tonnes Grade Gold
(Au g/t) (g/t (oz)
Au)
Marban 0.35/in pit Measured 24,617,000 1.31 1,035,000
and
indicated
Inferred 10,921,000 0.81 284,000
2.0/ Measured 656,000 3.73 79,000
out of pit and
indicated
Inferred 578,000 3.69 68,000
Norlartic 0.5/2.5 Measured 5,417,000 1.82 316,000
and
indicated
Inferred 3,199,000 1.44 148,000
Kierens 0.5/2.5 Measured 1,437,000 2.19 101,000
and
indicated
Inferred 1,780,000 1.73 99,000
Total Measured 32,127,000 1.48 1,531,000
and
indicated
Inferred 16,478,000 1.13 599,000
Mike Iverson, Niogold's president and chief executive officer, stated: "We are pleased with the growth in the resource base and especially pleased with the new model, which has given us a stronger understanding of the Marban deposit's characteristics. Since we started assembling the Marban block in 2006, we have established a strong resource estimate and the possibility of open pit-development. The Marban deposit, along with the Norlartic and Kierens deposits and the satellite zones near them, make the Marban block a very attractive property. The property's central location in the active Malartic/Val d'Or gold camps, with established infrastructure, suppliers and personnel, is another plus. We look forward to continuing our efforts to grow the currently defined zones, test new prospective targets and progressing to economic studies based on our currently defined resource base."
Marban deposit updated resource estimate details
This updated mineral resource estimate integrates the results of Niogold's phase 1 and 2 drill programs at the Marban deposit, conducted under the earn-in option financed by Aurizon, into the previous mineral resource estimate published by MDA on March 11, 2010. During phase 1 (from Aug. 30, 2010, to Aug. 9, 2011) drilling at the Marban deposit totalled 41,270 metres distributed in 131 new holes and eight extensions of previous holes. During phase 2 (from Dec. 13, 2011, to May 31, 2012) drilling on the deposit totalled 27,590 metres distributed in 77 new holes and nine extensions of previous holes. The main focus of the two drilling campaigns was to increase the gold content in the first 250 vertical metres, but also to add resources at depth.
Based on a cut-off grade of 0.35 gram of gold per tonne, the in-pit fully block-diluted mineral resource is estimated at 24,617,000 tonnes at 1.31 grams of gold per tonne (1,035,000 ounces of gold) in the measured and indicated category, plus 10,921,000 tonnes at 0.81 gram of gold per tonne (284,000 ounces of gold) in the inferred category. The undiluted resource outside of the pit shell, tabulated using a cut-off grade of two grams of gold per tonne, is estimated at 656,000 tonnes at 3.73 grams of gold per tonne (79,000 ounces of gold) in the measured and indicated category plus 578,000 tonnes at 3.69 grams of gold per tonne (68,000 ounces of gold) in the inferred category.
MARBAN DEPOSIT UPDATED GOLD RESOURCES
(MDA June 1, 2013)
Cut-off Category Tonnes Grade Gold
(g/t) (g/t) (oz Au)
In pit 0.35 Measured 24,617,000 1.31 1,035,000
and
indicated
Inferred 10,921,000 0.81 284,000
Out of pit 2.00 Measured 656,000 3.73 79,000
and
indicated
Inferred 578,000 3.69 68,000
Total Measured 25,273,000 1.37 1,114,000
and
indicated
Inferred 11,499,000 0.95 352,000
The in-pit and out-of-pit resources have been estimated based on the following parameters:
-
Two distinct scenarios were considered in reporting the resources: open pit and underground.
-
The in-pit resource is based on a Whittle pit shell calculated at a gold price of $1,540 (U.S.) per ounce of gold, which is the approximate three-year moving average gold price.
-
The resource model is controlled explicitly by three gold mineral domains that were interpreted on a set of six-metre-spaced vertical cross-sections.
-
The mineral domains were interpreted so as to respect geological interpretations, including lithologies, folds and mineralized shears, from cross-sections at 12.5-metre intervals.
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Three mineral domains were interpreted, including a low-grade domain (about 0.3 to about 0.8 g/t), a medium-grade domain (about 0.8 to about four g/t), and a high-grade domain (above about four g/t).
-
Assays lying within each of the domains were capped, with a cap of 15 g/t for the low-grade domain, 25 g/t for the medium-grade domain, and 135 g/t for the high-grade domain.
-
The capped assays were composited at two-metre intervals.
-
Interpolation was done by inverse distance to the third power into model blocks that are three metres wide, three metres high and six metres long along the strike of the deposit.
-
In addition to the assay capping, restrictions were placed during grade interpolation on the influence of high-grade composites in each of the three mineral domains.
-
The densities used for tonnage are 2.80 tonnes per cubic metre for the basalt (the principal ore host), 2.85 tonnes per cubic metre for ultramafic rocks, and 2.75 tonnes per cubic metre for granodiorite.
-
The ounces estimated into the modelled workings of the past-producing Marban mine were removed from the mineral resources.
-
The modelling and estimation of the mineral resources were done using Gemcom Surpac mining software.
MARBAN DEPOSIT -- SENSITIVITY OF IN-PIT MINERAL RESOURCE
Cut-off Measured Indicated Inferred
(g/t) Tonnes g/t oz Au Tonnes g/t oz Au Tonnes g/t oz Au
0.35 6,404,000 1.33 275,000 18,213,000 1.30 760,000 10,921,000 0.81 284,000
0.50 5,045,000 1.58 256,000 14,924,000 1.49 715,000 6,362,000 1.09 223,000
0.70 3,745,000 1.92 231,000 11,717,000 1.74 654,000 3,531,000 1.50 170,000
1.00 2,495,000 2.46 198,000 8,234,000 2.11 560,000 2,011,000 2.00 129,000
2.00 912,000 4.36 128,000 2,462,000 3.81 301,000 495,000 3.99 63,000
2.50 635,000 5.29 108,000 1,545,000 4.75 236,000 311,000 5.03 50,000
5.00 208,000 9.26 62,000 385,000 8.95 111,000 88,000 9.38 27,000
MARBAN DEPOSIT -- SENSITIVITY OF OUT-OF-PIT SHELL RESOURCE
Cut-off Measured Indicated Inferred
(g/t) Tonnes g/t oz Au Tonnes g/t oz Au Tonnes g/t oz Au
0.35 941,000 1.43 43,000 3,650,000 1.28 150,000 9,187,000 0.890 264,000
0.50 785,000 1.63 41,000 3,003,000 1.46 141,000 6,036,000 1.140 221,000
0.70 590,000 1.97 37,000 2,342,000 1.70 128,000 3,403,000 1.560 171,000
1.00 407,000 2.48 32,000 1,681,000 2.04 110,000 2,110,000 2.010 136,000
2.00 156,000 4.20 21,000 500,000 3.59 58,000 578,000 3.690 68,000
2.50 113,000 4.96 18,000 309,000 4.43 44,000 375,000 4.480 54,000
5.00 33,000 8.76 9,000 71,000 8.16 19,000 85,000 8.240 23,000
Aurizon (Hecla) option
Aurizon can earn up to a 65-per-cent interest the Marban Block property under the terms of an option and joint venture agreement dated July 5, 2010, between Niogold and Aurizon. The initial 50-per-cent interest can be earned by incurring expenditures of $20-million over three years, completing an updated NI 43-101 compliant mineral resource estimate, and by making a resource payment for 50 per cent of the total gold ounces defined by the mineral resource estimate. Niogold remains the project operator during the initial earn-in period (see news release dated July 6, 2010).
Approximately $9-million in expenditures remain to be incurred as part of Aurizon's earn-in for the initial 50-per-cent interest.
Scientific/technical info, qualified persons and QA/QC
This news release was prepared by and under the supervision of Yan Ducharme, MSc, PGeo (OGQ), Niogold's vice-president, exploration, and a qualified person as defined by National Instrument 43-101. The current mineral resource estimate on the Marban deposit was completed under the supervision of Dr. Michael Gustin, PhD, CPG, of Mine Development Associates of Reno, Nev., an independent qualified person under NI 43-101 guidelines, using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) -- standards on mineral resources and reserves, definitions and guidelines.