Mountain Boy advances Silver Coin to feasibility study
2009-10-09 12:39 ET - News Release
MOUNTAIN BOY MINERALS SILVER COIN UPDATE
Mountain Boy Minerals Ltd. has a 30-per-cent interest in the SilverCoin project with Pinnacle Mines having an option to earn a further10-per-cent interest by spending $4-million in exploration. OnceMountain Boy is reduced to 20 per cent, it is carried for futureexpenditures. Silver Coin is one of the most important gold-bearingprojects in the Stewart area, and is situated five kilometres north ofthe past-producing Silbak-Premier gold deposit. Silbak-Premier ishosted in a similar geological environment to Silver Coin, produced twomillion ounces of gold and 43 million ounces of silver over its minelife, and is the subject of renewed exploration. Currently work isdirected to taking Silver Coin closer to a full feasibility study. Themost significant activities include: geologic modelling andinterpretations; 3-D modelling of the ore body, along with potentialopen-pit morphologies; preliminary engineering studies, including pitconfiguration, infrastructure, tailings impoundment and waste rockmanagement; preliminary costing of the project; power and waterrequirements; baseline environmental studies; and metallurgicaltestwork.
Background
To date, 763 drill holes totalling over 91,000 meters have been completed at Silver Coin, and have partially outlined a gold-silver-zinc mineralized body that remains open to depth and to the north. According to a resource calculation completed in 2007 by Minefill Services Inc., Silver Coin hosts a NI 43-101 compliant resource of 488,202 ounces of gold in the Measured + Indicated category and 1,000,499 ounces of gold in the Inferred category at an average grade of 2.317 g/t and 6,179,000 ounces of silver (grade 7.49 g/t) at cut-off grade of 0.75 g/t. The following table breaks down the Silver Coin resource:
Summary of the 2007 Mineral Resource by Resource Category
(Above a Cut-off Grade of 0.75 g/t Gold-Equivalent)
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Gold Eq. Gold-Eq.
(all (oz)
metals) Gold Silver Zinc Gold (Gold-Silver
Class Tonnes g/t g/t g/t % (oz) only)
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Measured 1,073,891 4.487 3.481 14.191 0.432 120,181 129,513
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Indicated 8,633,606 1.832 1.091 10.567 0.288 302,822 358,689
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M+I 9,707,497 2.126 1.355 10.968 0.304 423,002 488,202
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Inferred 15,947,629 2.433 1.849 5.377 0.273 947,988 1,000,499
(i) Gold Equivalent values calculated using $525/oz for Gold, $10/oz
for Silver, $2.4/lb for Copper & $2/lb for Zinc.
Metallurgical recoveries and net smelter returns are assumed to be 100%.
Specific zones, as defined by diamond drilling, returned much higher grades of gold than the average grade calculated in the resource estimation above. Below are listed selected intersections from the 2008 diamond drilling program which are not incorporated into the 2007 Technical Report:
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Hole No. From (m) To (m) Core interval (m) Gold (g/t)
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SC08-232 66.45 78.64 12.19 12.70
including 66.45 71.02 4.57 32.11
and 69.49 71.02 1.52 81.57
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SC08-233 63.09 105.46 42.37 6.25
including 69.19 81.38 12.19 18.16
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SC08-234 76.2 105.16 28.96 2.05
including 96.01 99.06 3.05 8.88
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SC08-237 53.95 99.67 45.72 3.78
including 82.91 96.62 13.71 8.24
and 87.48 90.53 3.05 22.58
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SC08-238 60.05 96.62 36.57 1.08
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SC08-239 72.85 85.04 12.19 3.62
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SC08-240 78.33 114.91 36.58 2.27
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SC08-243 93.88 136.55 42.67 4.13
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SC08-245 68.88 130.15 61.27 1.78
including 70.71 72.54 1.83 31.07
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SC08-246 110.03 117.65 7.62 3.94
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SC08-247 94.18 118.57 24.39 2.96
including 107.9 114 6.1 8.13
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SC08-248 117.96 154.53 36.57 1.20
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SC08-249 93.27 138.99 45.72 1.27
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SC08-250 54.56 85.04 30.48 1.38
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SC08-254 27.13 36.27 9.14 1.98
and 75.9 95.71 19.81 1.08
including 75.9 78.94 3.04 4.09
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SC08-256 69.49 142.34 72.85 1.55
including 122.83 142.34 19.51 4.23
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SC08-258 57.3 154.84 97.54 1.15
including 135.03 153.31 18.28 3.72
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SC08-259 69.49 118.26 48.77 0.85
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SC08-260 151.79 191.41 39.62 0.98
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SC08-262 57.61 70.1 12.49 2.35
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SC08-264 51.21 78.64 27.43 5.43
including 54.25 58.52 4.27 18.68
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SC08-267 44.81 47.85 3.04 3.80
and 87.48 114.91 27.43 1.26
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SC08-270 93.88 123.75 29.87 0.88
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SC08-271 57 175.87 118.87 1.05
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SC08-272 70.71 75.29 4.58 1.78
and 116.43 145.39 28.96 1.89
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SC08-274 123.44 205.74 82.3 2.14
including 163.07 190.5 27.43 4.39
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SC08-279 27.13 30.18 3.05 23.51
and 100.28 106.38 6.1 4.36
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SC08-280 17.68 32.92 15.24 1.52
including 17.68 20.73 3.05 4.11
and 131.98 157.28 25.3 3.60
including 151.79 156.36 4.57 15.57
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SC08-281 85.04 200.86 115.82 1.66
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SC08-282 135.64 181.36 45.72 8.86
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SC08-285 38.71 44.81 6.1 1.91
and 121.01 157.58 36.57 1.89
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SC08-286 22.56 37.8 15.24 1.70
and 62.18 80.47 18.29 1.25
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SC08-287 15.24 73.15 57.91 1.20
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SC08-288 50.9 66.14 15.24 1.84
including 57 60.05 3.05 4.26
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SC08-294 21.34 106.68 85.34 0.91
including 21.34 36.58 15.24 2.64
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SC08-295 51.82 88.39 36.57 1.87
including 60.96 62.48 1.52 15.01
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SC08-298 0 64.01 64.01 3.73
including 0 36.58 36.58 5.82
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SC08-299 0 77.72 77.72 2.41
including 9.14 10.67 1.53 20.47
and 48.77 51.82 3.05 12.58
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SC08-302 57.3 60.35 3.05 16.69
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SC08-306 3.05 18.29 15.24 1.53
and 70.1 124.97 54.87 4.45
including 103.63 105.16 1.53 36.76
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SC08-309 27.43 36.58 9.15 2.98
and 64.01 82.3 18.29 1.43
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SC08-310 11.28 26.52 15.24 4.43
including 11.28 17.37 6.09 9.00
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2. Engineering Studies
The company is in discussions with a well-known engineering consultingfirm to complete a new 43-101 compliant Preliminary Economic Assessment("PEA") on the Silver Coin project. It is anticipated the PEA willproceed in two stages that will include a complete review of the SilverCoin drilling data base from which they will generate a new block modelof grade, lithology, and resource classification (Measured, Indicated,and Inferred). The block model in turn will be the basis for designinga hypothetical open pit and estimating the tonnage and grade of theresource, along with the volume of waste rock. In sequential fashionthey will optimize a mine plan and then apply site-relevant economicparameters to develop a cash flow model and estimate the potentialeconomic return expected from mining the deposit. Their review andreport will also incorporate the metallurgical and environmentalstudies already underway (see below) as well as propose a layout of therequired infrastructure to develop the project.
3. Environmental Studies
Pinnacle has engaged Cambria Gordon Ltd., an environmental consulting firm based in Terrace, B.C. to complete environmental base line studies of the Silver Coin project with the goal of assessing existing water quality, fauna and flora concerns, and potential sites for tailings disposal. Specifically, their work will include:
- Preliminary limnology of No-Name lake, a proposed site for tailings disposal;
- Stream flow measurements to commence hydrological database and provide information for year-round water supply for the project;
- Preliminary base line water quality monitoring plan to determine sampling locations for sample collection sites for chemical analyses;
- Assessment of the presence, or absence, of rare and/or endangered species.
4. Metallurgical studies
Metallurgical testing at Silver Coin has been ongoing for nearly two years by Frank Wright of F. Wright Consulting Inc. Mr. Wright will continue in his capacity of chief metallurgical investigator. His results to date have shown that Silver Coin exhibits very favourable metallurgical characteristics. The laboratory test program to date has investigated flotation and cyanide leaching procedures.
Depending on the sample and procedures that were used, the gold recoveries varied from 85% to 95% for cyanidation. However, due to anticipated considerations in using cyanide on site, most of the process evaluation has focused on flotation. Initial open cycle flotation tests provided an excellent bulk yield of over 95% gold into a rougher concentrate. The results from a locked cycle test provided gold and silver recoveries of approximately 90%. Future metallurgical work will focus on optimizing flotation procedures for rejecting pyrite to produce a cleaned bulk gold-silver concentrate. The nearby deep water port and loading facility at Stewart is ideally located for transport of Silver Coin concentrate.
During September 2009, bulk samples were collected from trenches in the mineralized zone at Silver Coin to provide samples for work index studies.
5. Conclusion
Silver Coin is a significant gold resource which has yet to be fully delimited by drilling. Potential to significantly expand the resource exists with depth, and along strike, particularly to the north. It is located in a district which contains widespread and abundant alteration and mineralized prospects, including one of B.C.'s most important past-producers, the Silbak-Premier mine. The project work outlined above should take approximately six months to complete. Based on the results of the currently-progressing work, a decision will be made whether or not to carry on with feasibility and/or further drilling to take Silver Coin closer to production.
Ed. Kruchkowski, P. Geo., is the qualified person under National Instrument 43-101, on behalf of the company.
Mountain Boy Minerals Ltd is a Canadian based mineral exploration company whose activities are in the Stewart and McKenzie area of BC. It is actively exploring for gold-silver-base metals on the Silver Coin project, silver-base metals on their American Creek properties, copper-gold in the Stewart area, porphyry molybdenum in the Stewart and McKenzie areas and copper-nickel-platinum group metals in the McKenzie area.
For further information, please contact Ed Kruchkowski at 250-636-9232.
ON BEHALF OF THE BOARD
"Ed Kruchkowski"
Ed Kruchkowski, Director
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"This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."