B2 is Buying CSM on the Cheap
Central Sun increased inferred resources to 802,000 oz
2009-03-04 18:13 EST - News Release
Mr. Peter Tagliamonte reports
CENTRAL SUN UPDATES MINERAL RESERVE AND RESOURCES AS AT DECEMBER 31, 2008; EXPANDS INFERRED RESOURCES TO 802,000 OUNCES GOLD
Central Sun Mining Inc. has released updated mineral reserve and mineral resource estimates for its Limon mine, Orosi mine and Mestiza-La India projects in Nicaragua. These updated estimates include the results of the successful 2008 exploration program which discovered new zones at Limon (Santa Pancha South) and Orosi (San Juan). The recently returned Cerra Quema property in Panama and the Bellavista mine are currently being evaluated and are not included in this current estimate. Mineral reserves and mineral resources as at Dec. 31, 2008, are presented in the mineral reserves and resources table.
Peter Tagliamonte, president and chief executive officer, commented: "The 2008 exploration program was very successful in expanding the inferred mineral resources. This provides a strong base to expand reserves in 2009 and beyond. We anticipate that additional exploration activities will further expand resources, as well as outline potential new deposits in the vicinity of the current operations."
Limon mine
Total proven and probable mineral reserves at Limon mine are estimated at 1,158,000 tonnes at 4.68 grams per tonne (g/t) gold (Au) containing 174,100 ounces of gold. This reduction of 43,100 ounces from the Dec. 31, 2007, estimate of 1,381,000 tonnes at 4.89 g/t Au containing 217,200 ounces, is due principally to losses from mining and reclassification of certain blocks in the Talavera mine as the mining activities shift to the Santa Pancha area. Total measured and indicated mineral resources excluding reserves are estimated at 563,400 tonnes at 5.68 g/t Au containing 102,900 ounces of gold, as compared with 384,000 tonnes at 4.99 g/t Au containing 61,600 ounces of gold in Dec. 31, 2007. This increase reflects reclassification of some reserve blocks in the Talavera mine not currently accessible to measured and indicated resources, as well as some additions from exploration in the Santa Pancha mine.
As a result of the successful 2008 exploration that discovered the new Santa Pancha South zone, inferred mineral resources in the Limon mine are now estimated at 2,441,000 tonnes at 5.34 g/t Au containing 419,300 ounces, a significant increase of 173,300 ounces from the Dec. 31, 2007, estimate of 1,291,000 tonnes grading 5.91 g/t Au containing 246,000 ounces gold. The bulk of this increase is in the new Santa Pancha South zone which is estimated to contain 1,033,000 tonnes grading 4.99 g/t Au containing 165,600 ounces of gold.
Dr. Bill Pearson, PGeo, executive vice-president, exploration, commented: "Although, Limon mine has operated continuously since 1941 and has produced about three million ounces of gold, the mine has never had more than a few years of reserves in hand due to a lack of consistent exploration. Our success in 2008, with the discovery of the new Santa Pancha South zone, demonstrates the excellent potential to substantially expand resources on the property. Based on historic conversion rates, the new inferred resource totalling 419,300 ounces is probably sufficient with further drilling and development to eventually add as much as four to five years to the overall production life. We also tested only one of a number of priority targets that we had outlined for drilling in 2008 so there is excellent potential to outline additional resources."
Orosi mine
Total proven and probable mineral reserves at the Orosi mine, mainly in the Mojon-Crimea zone, are unchanged from the Jan. 31, 2008, estimate by Scott Wilson Roscoe Postle Associates of 11,017,000 tonnes at 1.44 g/t Au containing 509,500 ounces of gold as previously reported (see news release in Stockwatch dated May 8, 2008). Similarly, measured and indicated mineral resources excluding reserves as estimated by Scott Wilson RPA are unchanged at 4,126,000 tonnes at 1.51 g/t Au containing 200,400 ounces of gold. The National Instrument (NI) 43-101 report by Scott Wilson RPA is available on SEDAR.
Inferred mineral resources in the new San Juan zone located five kilometres south of the plant are estimated to be 2,221,000 tonnes at 1.98 g/t Au containing 141,400 ounces of gold. This includes a higher-grade portion mainly in the northeast end of the zone containing 395,000 tonnes at 4.79 g/t Au containing 61,000 ounces of gold. The structure, which has been drilled over a strike length of one kilometre, is open along strike in both directions and at depth. In addition, excellent drill results including 13.04 g/t Au (12.31 g/t Au with highs cut to 25 g/t Au) over a true width of 5.0 metres at a vertical depth of only 30 metres and 2.61 g/t Au over a true width of 4.5 metres at a vertical depth of about 20 metres were obtained at the Los Angeles target which is a possible satellite target adjacent to San Juan. Overall inferred resources of 224,000 ounces of gold for Orosi include an additional 3.37 million tonnes at 0.76 g/t Au containing 82,600 ounces of gold in spent ore as estimated by Scott Wilson RPA.
Dr. Pearson, PGeo, executive vice-president, exploration, commented: "For a deposit that was previously in production, there has been remarkably little exploration done outside the main Mojon-Crimea area. The excellent success of 2008 in outlining new resources in the San Juan structure demonstrates the strong exploration potential elsewhere on the property on which mineralized structures are known to extend over a strike length of at least 20 kilometres. The geological database was considerably improved in 2008 and a number of targets were outlined for further work in 2009. The engineering department is completing an economic evaluation of the San Juan zone as it may be attractive to 'definition-drill' this zone in 2009 and, if successful, implement a plan to bring it into production because of the higher grades in this zone, as well as the good potential of outlining additional higher-grade resources in the area."
Mestiza-La India area
At Mestiza-La India, no drilling was completed in 2008. Geological mapping indicates that it is likely that a complete epithermal system is exposed from the lower intrusive at La India 10 kilometres to the southeast to high-level quartz veins at Mestiza. Vertically, the system appears to extend from about 500 metres to perhaps as much as 900 metres. Historic production from 1938 to 1955 at La India was 576,000 ounces of gold recovered from 1.7 million tons grading 0.39 ounce per tonne (13.4 g/t Au) The Tatiana vein on the Mestiza property contains an inferred mineral resource of 558,000 tonnes at 8.80 g/t Au containing 158,600 ounces of gold as previously reported (see technical report dated March 31, 2008, posted on SEDAR).
Significantly higher resistivity anomalies are associated with all the major veins that are known on the property, with the strongest resistivity high having a strike length of over 800 m associated with the Guapinol vein in the middle of the Mestiza-La India property. This anomaly persists to the maximum depth sampled in both the resistivity and chargeability data. This and other anomalies identified will be drill tested in the 2009 exploration program.