RE: Nice News Friday...Some points:
-I'd love to hear LW's thoughts on this watershed news, and opinion on the company moving forward. Here for a long time, through good and bad, I think LW's input would provide value to the board.
-Although this news was released in the morning, it did not hit the newswire until 1:32 pm, hence the early morning lag, and the big ending. I expect this to continue through the week and into May.
-If we compare the 2007 43-101, we can note the differences in ounces and grade - and this news marks a new beginning for MJS. Big boys are going to want in as this more than doubles previous estimates and MJS is producing gold AND doing a Pre-Feasibility and increasing processing by almost 400%, AND acquiring the 40%. I love this stock!!!!!!!
2007:Vancouver, British Columbia, October 17, 2007 -Majestic Gold Corp. (TSX.V: MJS) ("Majestic" or "the Company") ispleased to announce it has received final results from the revisedNational Instrument (NI) 43-101 resource estimate on its Song Jiagouproject, located in the Shandong Province of eastern China. The revisedestimate increases the Song Jiagou resource by 285 percent to 1,174,460ounces of gold from 413,900 ounces (Majestic news release April 26,2006).
Included in the revised resource estimate are indicated 8,007,999tonnes at 1.668 grams of gold per tonne (g/t) (429,497 ounces) andinferred 18,142,799 tonnes at 1.277 g/t (744,963 ounces), using a 0.5gram per tonne cut-off based on an inverse distance squaredinterpolation. This brings the total gold resource within Majestic'sjoint venture projects to 2.7 million ounces, including its 1,519,137ounce Sawayaerdun deposit in Xinjiang Province in western China (May17, 2006, news release). A total of three statistical methods were usedto calculate the resource and each produced similar results as shown inTable 1 below:
Table 1: Song Jiagou Revised Resource Estimate at 0.5 g/t Cut-Off | Calculation Method | Category | Tonnes (t) | Ounces (oz) | Grade (g/t) |
| Inverse Distance | Indicated | 8,007,999 | 429,497 | 1.668 |
| Squared Interpolation | Inferred | 18,142,799 | 744,963 | 1.277 |
| | | | | |
| Kriged Method | Indicated | 8,780,199 | 412,754 | 1.462 |
| | Inferred | 18,186,999 | 736,252 | 1.259 |
| | | | | |
| Nearest Neighbour | Indicated | 6,705,399 | 423,453 | 1.964 |
| | Inferred | 17,685,199 | 784,745 | 1.380 |
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2010:NI 43-101 Resource Estimate 2010
The revised National Instrument 43-101 Resource Estimate represents inexcess of 138% increase in the tonnage and a 112% increase in containedgold in the Indicated category and a 15% increase in tonnage in theInferred category but a 228% increase in Contained ounces.
Table 1: Song Jiagou Revised Resource Estimate at 0.4 g/t Cut-Off
| Calculation Method | Category | Tonnes (t) | Ounces (oz) | Grade (g/t) |
| Inverse Distance 2 | Indicated | 23,665,831 | 973,919 | 1.280 |
| Inverse Distance 2 | Inferred | 26,089,673 | 1,477,970 | 1.762 |
| | | | | |
| Kriged Method | Indicated | 24,929,869 | 1,002,694 | 1.251 |
| | Inferred | 28,133,107 | 1,703,174 | 1.883 |
| | | | | |
| Nearest Neighbour | Indicated | 21,408,861 | 1,053,804 | 1.531 |
| | Inferred | 24,190,043 | 1,889,879 | 2.430 |
The current report updates the 2007 Song Jiagou estimate and takes intoaccount assay results from surface core drilling and trenching thatwere carried out since 2007, as well as depletion from surface miningsince the time of the last estimate. Depletion attributable tounderground mining during the same interval has been negligible.
NI 43-101 Resource Estimate 2007
The NI 43-101 Resource Estimate completed in 2007, increased the SongJiagou resource by 284 percent to 1,174,460 ounces of gold from 413,900ounces (Majestic news release April 25, 2006). Included in the revisedresource estimate are indicated 8,007,999 tonnes at 1.668 grams of goldper tonne (g/t) (429,497 ounces) and inferred 18,142,799 tonnes at1.277 grams per tonne (744,963 ounces), using a 0.5 gram per tonnecut-off based on an inverse distance squared interpolation. A total ofthree statistical methods were used to calculate the resource and eachproduced similar results as shown in Table 1 below:
At a cutoff grade of 0.5 g/t and a capping level of 50 g/t, the depositis estimated by kriging to contain an Indicated resource of about 8.8million tonnes at an average grade of 1.46 g/t gold, and an Inferredresource of about 18.2 million tonnes at an average grade of 1.26 g/tgold.
The resource estimated by inverse distance squared interpolation at acutoff grade of 0.5 g/t gold and a capping level of 50 g/t is:Indicated 8.0 million tonnes at an average grade of 1.67 g/t gold andInferred 18.1 million tonnes at an average grade of 1.28 g/t gold.
The nearest neighbour estimate at the same cutoff grade and cappinglevel is: Indicated 6.7 million tonnes at an average grade of 1.96 g/tgold, Inferred 17.7 million tonnes at an average grade of 1.38 g/t gold.
Table 1: Song Jiagou Revised Resource Estimate at 0.5 g/t Cut-Off
| Calculation Method | Category | Tonnes (t) | Ounces (oz) | Grade (g/t) |
| Inverse Distance | Indicated | 8,007,999 | 429,497 | 1.668 |
| Squared Interpolation | Inferred | 18,142,799 | 744,963 | 1.277 |
| | | | | |
| Kriged Method | Indicated | 8,780,199 | 412,754 | 1.462 |
| | Inferred | 18,186,999 | 736,252 | 1.259 |
| | | | | |
| Nearest Neighbour | Indicated | 6,705,399 | 423,453 | 1.964 |
| | Inferred | 17,685,199 | 784,745 | 1.380 |
The revised resource estimate was produced in accordance with NationalInstrument 43-101 and the Canadian Institute of Mining, Metallurgy andPetroleum standards on mineral resources and mineral reservesdefinitions and guidelines by an independent third party, WardropEngineering Inc, Greg Z. Mosher P.Geo. The data used was collected byMajestic in its 2004, 2005 and 2006 exploration programs in addition todata collected by joint venture partner Shandong Yantai Muping GoldMine ("Muping Mining") and totaled 14,882 gold assays