RE:GOLD, NEWS Grams per Ton. WOW
Orex Exploration releases Goldboro report, talks work
2017-04-03 16:12 ET - News Release
Mr. Jonathan Fitzgerald reports
OREX EXPLORATION INC.: RELEASE OF UPDATED MINERAL RESOURCE ESTIMATE TECHNICAL REPORT
Orex Exploration Inc. has released its technical report, titled "Updated Mineral Resource Estimate Technical Report for the Goldboro Property, Guysborough County, Nova Scotia Canada," with an effective date of Feb. 28, 2017, and a report date of April 3, 2017, prepared by Mercator Geological Services Ltd.
The updated technical report supersedes the company's previous technical report, titled "Preliminary Economic Assessment on the Goldboro Property," with an effective date of April 22, 2014, prepared by MineTech International Ltd. of Halifax, N.S. The 2014 technical report incorporated the National Instrument 43-101 Goldboro resource estimate previously published by Mercator in 2013.
As noted in the company's March 1, 2017, press release, the updated technical report supports an update to the 2013 Mercator resource estimate and addresses a revision to the assay compositing protocol applied in 2013 to non-continuously sampled intervals of drill core that occur within the project drilling database. This revision produced a 1.63-per-cent decrease in rounded measured and indicated category contained gold ounces (7,600 ounces) relative to the equivalent figure for the 2013 estimate and a decrease of 11.45 per cent in rounded inferred category contained gold ounces (48,200 ounces) relative to the equivalent 2013 figure. The majority of lost gold ounces assign to the East Goldbrook deposit area. The reductions in the mineral resource estimate contained gold inventories between the 2017 and 2013 resource estimates were deemed non-material by the board of directors of the company.
The attached table provides a summary of the newly revised resource estimate. The revised estimate contains a measured resource of 171,000 tonnes grading 5.39 grams per tonne gold (29,600 ounces), an indicated resource of 2,385,000 tonnes grading 5.58 grams per tonne gold (427,800 ounces) and an inferred resource of 2,669,000 tonnes grading 4.35 grams per tonne gold (372,900 ounces) at a two-gram-per-tonne cut-off. Additional information regarding the revised estimate can be found in the updated technical report, presently available on SEDAR.
GOLDBORO GOLD PROJECT MINERAL RESOURCE STATEMENT - EFFECTIVE ON FEB. 28, 2017 Revised Goldboro mineral resource statement -- effective Feb. 28, 2017 Threshold Boston Richardson West Goldbrook (Au g/t) Category Tonnes Au g/t Ounces Tonnes Au g/t Ounces 2.00 Measured 171,000 5.39 29,600 Indicated 1,507,000 5.27 255,400 464,000 5.3 980,400 Measured and indicated 1,678,000 5.28 285,000 464,000 5.3 980,400 Inferred 1,083,000 4.56 158,800 459,000 4.4 265,200 Threshold East Goldbrook Total Goldboro deposit (Au g/t) Category Tonnes Au g/t Ounces Tonnes Au g/t Ounces 2.00 Measured 171,000 5.39 29,600 Indicated 414,000 6.91 92,000 2,385,000 5.58 427,800 Measured and indicated 414,000 6.91 92,000 2,556,000 5.57 457,400 Inferred 1,127,000 4.11 148,900 2,669,000 4.35 372,900 (1) Tonnages have been rounded to the nearest 1,000 tonnes; ounces have been rounded to the nearest 100 ounces; average grades and contained ounces may not sum due to rounding. (2) The two-gram-per-tonne gold resource statement cut-off grade reflects a reasonable expectation of economic development by underground mining methods. (3) Contributing one-metre assay composite populations were capped at gold grades of 80 grams per tonne or 120 grams per tonne, and separately interpolated. (4) A specific gravity factor of 2.7 gram per cubic centimetre was applied to all blocks. (5) Mineral resources that are not mineral reserves do not have demonstrated economic viability. This estimate of mineral resources may be materially affected by environmental permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
The Orex board believes that none of the information, assertions or recommendations contained in the updated technical report will cause the company to change its development strategy or timetable. The recommended development strategy, as provided in the updated technical report, is summarized as follows.
A two-phase work program having the following core components will be carried out to further assess and develop the Goldboro property:
- A detailed planning study of near-surface bulk sampling opportunities in the Boston Richardson and New Belt stratigraphic sections should be carried out to determine the optimum location to source at least 5,000 tonnes of bulk sample material for metallurgical processing and gold grade reconciliation studies. Several mineralized belts should be separately bulk sampled from either existing underground workings or from new surface excavations. Focus for sourcing bulk sample material should be within accessible measured category mineral resources of the current block model where possible.
- Engineering, environmental, geological and government permitting components for the bulk sampling program should be completed.
- Additional infill core drilling should be carried out at any bulk sample site where additional definition of mineralized zone limits is required. Results will contribute to best-information premining estimates of contained gold grade.
- Core drilling to upgrade highest-priority areas of inferred resources to indicated status and to test for deposit extensions to both east and west of currently defined resources should be undertaken.
- A bulk sampling and metallurgical processing program consisting of at least 5,000 tonnes of mineralized material should be carried out to provide assessment of gold grade systematics and processing parameters for the multiple mineralized belts tested by the bulk sampling. Results of this program will contribute to future economic assessment and reserve definition studies.
- After completion of the above programs, an updated mineral resource estimate and a new preliminary economic assessment study should be prepared.
Recommendations 1 and 2 above comprise the phase 1 program and have an estimated budget of $275,000. Commitment to phase 2 (3, 4, 5 and 6 above) would require substantively positive results being returned from phase 1. The proposed phase 2 program has an estimated budget of $5-million.
"As was stated previously the downward revision in Goldboro's global resource estimate is not material in size or effect, and we will continue to develop the project in a prudent and expedited manner. The two-phase work program described in the updated technical report is the optimal development plan, and the previously recommended plan of arrangement with Ananconda Mining Inc. ensures that the company will have the technical, managerial and financial resources to do so. The company's board of directors believes unanimously that the Goldboro development plan, coupled with the recommended plan of arrangement, best serve the long-term interests of our shareholders," said Jonathan Fitzgerald, Orex's chairman and chief executive officer.
Please contact Mr. Fitzgerald (1-208-720-9676) with questions or comments.
Qualified person
Michael Cullen, PGeo, of Mercator Geological Services, is the qualified person within the meaning of NI 43-101 who supervised preparation of, and is responsible for, the technical information pertaining to mineral resource estimations referred to in this press release. He has reviewed and approved the mineral resource estimate technical information in this press release. Quality control, quality assurance and resource estimation details pertaining to the revised estimate are contained in the updated technical report filed by Orex on SEDAR