RE: Resource update...Full news releaseGolden Tag Updates Resource Estimate-Confirms Discovery of New Major Silver-Lead-Zinc Deposit at San Diego Project in Durango State, Mexico
12/10/2008 12:03:33 PM - Market Wire
MONTREAL, QUEBEC, Dec 10, 2008 (MARKET WIRE via COMTEX News Network) --
Golden Tag Resources Ltd. (TSX VENTURE: GOG) ("Golden Tag") is very pleased to report results of a NI 43-101 compliant resource estimate ("Resource Estimate") on its' 50% owned San Diego Joint Venture Project in Durango State, Mexico; received from joint venture partner and project manager ECU Silver Mining Inc ("ECU Silver") who owns the remaining 50% interest. Results from 18 new diamond drill holes, along with extensions of 2 previous holes, completed in very successful Phase 3 and 4 drilling programs in 2007-2008, have contributed to a very significant growth in mineral resources. Results confirm that the San Diego Property hosts a large, new Silver-Lead-Zinc Deposit on trend with the Santa Juana Mine (ECU Silver) and the Santa Maria Mine (Penoles) mines in the Velardena District which have seen metal production throughout the last century. All available results from Phase 3 and 4 drilling at San Diego have been incorporated into the new resource evaluation. The Phase 4 drilling program remains currently underway and only those results available at the time of the completion of the Resource Estimate in late November could be included. Total mineral resources on the property have increased almost five fold from previous estimates (see press release December 12, 2007) with mineral resources now standing at:
- INDICATED RESOURCES:
370,852 TONNES GRADING 245 Ag g/t, 1.80 % Pb, 1.33 % Zn and 0.339 Au g/t
- INFERRED RESOURCES;
21,638,614 TONNES GRADING 110 Ag g/t, 1.84 % Pb, 2.21 % Zn and 0.134 Au g/t
San Diego JV partners Golden Tag and ECU Silver each own 50% of the estimated mineral resources. The Resource Estimate (Table 1) was completed by operator ECU Silver and independently audited and approved by William J. Lewis, P.Geo, MICON International Limited, a qualified person as defined under NI 43-101 guidelines. A report of the Resource Estimate will be filed on SEDAR within 45 days.
The resources represent:
- INDICATED RESOURCE OF 4.29 MILLION OUNCES OF SILVER EQUIVALENT
- INFERRED RESOURCE OF 218.1 MILLION OUNCES OF SILVER EQUIVALENT
The Resource Estimate is constrained to areas on the property where drilling has been undertaken during four phases of recent exploration. It does not include several areas within the San Diego Property where potential exists to further expand the mineral resource. Many of the veins and wider stringer zones remain open at depth. Similarity with the geology of the nearby Santa Juana and Santa Maria Mines has led to an estimate of the mineral potential within the property. The additional Mineral Potential on the property, as reviewed by Micon is:
MINERAL POTENTIAL OF 173.5 to 389.5 MILLION OUNCES OF SILVER EQUIVALENT
The mineral potential of the San Diego property is defined beyond the mineral resources currently outlined and has not been included in the mineral resource estimate.
Silver equivalent ounces are calculated from gold, lead and zinc using conversion factors of 78.51 g/t Ag per 1 g/t Au, 49.90 g/t Ag per 1% Pb and 46.47 g/t Ag per 1% Zn. Conversion factors take into account processing metal recovery factors, as well as, smelter returns from sales of concentrates to MK Metals Trading S.A. de C.V., a division of Nexxtrade ("MK Metals"), with whom ECU recently entered into an agreement for the purchase of lead and zinc concentrates from the operations at Velardena. Recovery factors of 64.6 % for silver, 73.12 % for lead, 47.88 % for Zn and 43.63 % for Au were used for sulphide material with 78% for gold and 55% for silver for the oxides. Commodity prices of US$775/oz for gold, US$14/oz for silver, US$0.90/lb for lead and US$1.28/lb for zinc used in the estimate are based on the 3-year trailing averages for each metal plus 6% for gold and 3% for silver to allow for an upside in the resources.
Five principal mineralized structures, the Montanez, Cantarranas, San Jose, Ag-Zone and Mid Zone, contribute 80% of the increase to the mineral resources. These zones correspond to the new massive sulphide carbonate-replacement type mineralization encountered in drilling this Fall (see press releases November 4 and October 17, 2008) as well as to the broader mineralized zones of stringers and veins developed in a skarn-type environment along and within the eastern portion of the diorite intrusive coring the centre of the property. Estimated Resources extend from surface down to vertical depth of between 400 and 600 metres below surface. Oxidized mineralization is mostly encountered near surface and accounts for 50% of Indicated resources. Overall, oxide resources represent only a small portion of the estimated resources (Table 1).
Resource Methodology
Indicated and Inferred Resources were estimated using the polygonal method on longitudinal sections for each of the thirteen veins and/or zones. Polygons were computer generated using ProMine software which also calculated the mineral resource composite grade numbers. Geological interpretation of the mineralized zones was based on stratigraphy, mineralization and structure derived from the diamond drill holes as well as from surface and underground sampling information that was input into MineSight software. All drill holes intercepts were calculated using a 1 metre minimum true width for narrow veins and at 2.70 metres minimum true width for the bulk mining areas, with a near zero grade value allowance for internal dilution.
Undiluted resource were estimated using an NSR value cut-off factor of US$45/t (155 grams per tonne) for narrow, high grade veins based on information derived from previous mining activities on the Velardena Property of ECU Silver. A cut-off value of US$25 per tonne (86 grams per tonne) was used for the bulk tonnage zones based on previous bulk mining tests completed by ECU Silver.
The mineral potential of a property cannot be estimated to the same accuracy as a mineral resource and must be stated as a range. To calculate a range for grades, a factor of minus 10% was applied for the downside (minimum) and plus 10% for the upside (maximum) potential. The maximum dip extension of the Mineral Potential was set at 400 metres and the minimum dip extension at 200 metres based on the known height of the major veins systems, unless the property boundary or a fault was encountered whereupon the dip extent was cut to that distance.
Quality Control
All sample analysis included in the resource estimate were performed by ALS Chemex accredited assay laboratories of Guadalajara and Vancouver. The San Diego drilling program is supervised by Ms. Kateri Marchand, P.Geol. and Qualified Person under National Instrument 43-101 guidelines. Assay samples are taken from either NQ, BQ or HQ size drill core, cut in half with one half sent to the laboratory and the other half stored at the project site and retained for future reference. A strict QA/QC program is followed which includes mineralized standards and blanks for each batch of 25 samples. Check samples representing 2.5% of the 10,500 samples taken during the course of the Phase 1 to 3 programs were are also sent to SGS certified laboratory of Durango (Mexico).
The content of this news release was reviewed by Kateri. Marchand, the qualified person in charge of the San Diego Project and was also reviewed by William .J. Lewis P.Geo of Micon International Limited.
Cautionary Statements:
Mineral resources that are not mineral reserves do not have demonstrated economic viability. This preliminary economic assessment of the mineral resources is preliminary in nature and there is no certainty that a preliminary economic assessment will be realized.
The mineral potential of the San Diego property is conceptual in nature and there has been insufficient exploration conducted within the mineral potential evaluation to define a mineral resource. It is also uncertain if further exploration will result in the targets being delineated as mineral resources.
Golden Tag Resources Ltd. is a junior exploration company actively exploring for high grade gold and silver deposits at the San Diego silver project in Durango State, Mexico; the Aquilon Gold Project in James Bay, Quebec; and the McCuaig gold project in Red Lake, Ontario. The issued and outstanding shares of Golden Tag are 39,770,958. The Company has no debt.
Please visit our website at www.goldentag.ca for more information about the Company and its projects.
Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.
Table 1. Mineral Potential Summary - San Diego Property
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Tonnes Au g/t Ag g/t Pb % Zn % Oz. Ag Eq.
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Minimum 15,230,137 0.17 116 2.18% 2.66% 173,504,649
Maximum 42,352,740 0.10 66 1.24% 1.52% 389,458,579
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TABLE 2: SUMMARY OF INDICATED AND INFERRED RESOURCES AND
SILVER EQUIVALENT GRADES AND METAL CONTENT, SAN DIEGO PROJECT, MEXICO
OXIDES
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Au Ag Pb Zn Au Ag Pb Zn Oz-Ag
INDICATED Tonnes g/t g/t % % oz. oz. (lbs)(lbs) Eq.
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La Cruz 78,550 0.86 285 2,160 719,946 889,591
La Rata 41,427 0.31 247 413 329,533 361,992
Montanez HW 41,733 0.19 218 251 292,394 312,082El Jal 1,865 0.27 316 16 18,978 20,232
Cantarranas 16,505 0.25 214 132 113,342 123,686
Oxides
Indicated 180,080 0.51 255 2,972 1,474,194 1,707,582
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Au Ag Pb Zn Au Ag Pb Zn Oz-Ag
INFERRED Tonnes g/t g/t % % oz. oz. (lbs)(lbs) Eq.
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Arroyo 23,444 0.10 265 79 199,937 206,113
Canta Splay 3,751 0.00 244 29,426 29,426
La Cruz 55,857 0.71 284 1,272 510,839 610,679
La Rata West 38,138 0.06 219 71 269,138 274,717
La Rata 13,887 0.60 228 268 101,797 122,828
SD Vein 32,374 0.00 577 600,569 600,569
Oxides
Inferred 167,451 0.31 318 1,689 1,711,707 1,844,333
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SULFIDES
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Au Ag Pb Zn
INDICATED Tonnes g/t g/t % %
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La Cruz 122,924 0.16 203 2.58 1.27
La Rata 3,161 0.27 360 0.72 0.30
Montanez HW 29,834 0.10 317 2.11 2.52
El Jal 14,322 0.27 316 0.95 0.41
Cantarranas 20,531 0.27 231 1.12 0.97
Sulfides
Indicated 190,772 0.17 235 2.20 1.35
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Au Ag Pb Zn Oz-Ag
oz. oz. (lbs) (lbs) Eq.
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La Cruz 642 802,893 6,988,866 3,443,760 1,595,358
La Rata 27 36,623 50,229 21,051 43,825
Montanez HW 94 303,587 1,390,568 1,654,470 524,278
El Jal 122 145,727 298,869 128,882 185,835
Cantarranas 181 152,541 509,038 440,776 233,672
Sulfides
Indicated 1,066 1,441,372 9,237,569 5,688,939 2,582,968
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Au Ag Pb Zn
INFERRED Tonnes g/t g/t % %
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La Cruz 747,104 0.19 87 1.62 1.86
Ag Zone 3,107,096 0.09 78 1.07 1.13
Montanez FW 2,995,963 0.03 72 1.04 1.02
Montanez
Centro 916,854 0.34 67 1.15 1.63
San Jose 2,100,076 0.38 270 6.76 7.50
Arroyo 238,631 0.08 175 0.19 0.18
Canta Splay 68,325 0.00 203 0.09 0.45
Cantarranas 2,694,331 0.00 112 1.88 1.88
La Rata 549,469 0.12 324 5.55 10.17
La Rata W 3,658 0.30 505 0.90 0.30
El Jal 498,667 0.22 229 0.57 0.81
Montanez HW 3,977,990 0.21 74 1.35 1.79
SD Vein 499,818 0.01 109 1.15 1.32
Mid Zone 3,066,870 0.07 56 0.72 1.07
Sulfides
Inferred 21,464,852 0.13 108 1.84 2.21
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Indicated All 370,852 0.339 245 1.80 1.33
Inferred All 21,632,303 0.134 110 1.84 2.21
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Au Ag Pb Zn Oz-Ag
oz. oz. (lbs) (lbs) Eq.
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La Cruz 4,640 2,084,592 26,606,313 30,558,993 6,456,295
Ag Zone 8,778 7,805,229 73,629,246 77,700,582 19,118,939
Montanez FW 2,426 6,970,700 68,714,064 67,386,705 16,728,978
Montanez
Centro 10,157 1,964,391 23,343,091 32,934,380 6,692,735
San Jose 25,448 18,248,781 313,000,680 347,393,381 66,569,978
Arroyo 579 1,345,225 989,277 950,619 1,527,089
Canta Splay 0 445,585 137,482 670,840 501,058
Cantarranas 181 9,710,474 111,712,963 111,585,563 25,417,320
La Rata 2,051 5,715,494 67,275,264 123,148,648 19,118,955
La Rata W 35 59,392 72,579 24,193 69,083
El Jal 3,566 3,666,145 6,262,459 8,947,573 5,008,290
Montanez HW 26,830 9,497,471 118,653,948 156,953,444 30,876,485
SD Vein 157 1,745,603 12,687,218 14,514,742 3,664,9812
Mid Zone 6,413 5,499,330 48,903,577 72,331,363 14,464,048
Sulfides
Inferred 91,261 74,758,411 871,988,161 1,045,101,028 216,214,233
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Indicated All 4,038 2,915,566 14,712,398 10,837,736 4,290,550
Inferred All 92,951 76,470,118 871,988,161 1,045,101,028 218,058,566
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Golden Tag Resources Ltd. Marc A. Carrier President 514-426-8542 514-426-8543 (FAX) pres@goldentag.ca
SOURCE: Golden Tag Resources Ltd.
mailto:pres@goldentag.ca
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