NEWS !!!
Golden Odyssey Announces a NI 43-101 Compliant Resource for Deer
Filing Services Canada Inc.
FSC / Press Release
Golden Odyssey Announces a NI 43-101 Compliant Resource for Deer
Vancouver, British Columbia CANADA, June 15, 2010 /FSC/ - Golden Odyssey Mining Inc. (GOE - TSX Venture, GODYF - OTCBB_Pink_Sheets), ("Golden Odyssey" or the "Corporation")is pleased to announce an initial NI 43-101 compliant resource estimate for its Deer Horn gold-silver-tellurium deposit that contains 24,000 ounces of gold and 760,000 ounces of silver in the indicated category and 39,000 ounces of gold and 1,210,000 ounces of silver in the inferred category. The Deer Horn property is located in west-central British Columbia 36 kms (23 miles) south of the Huckleberry mine. The resource estimate has been generated for the Company by G.H. Giroux and is presented in a NI 43-101 technical report entitled "Technical Report on the Deer Horn Gold-Silver-Tellurium Property" (the "Deer Horn Report"), dated June 4, 2010, and authored by independent consultants R.A. Lane, P.Geo. and G.H. Giroux, P.Eng.
Tyrone Docherty, President and CEO of the Company, comments, "We are extremely pleased to complete this initial mineral resource estimate on the Deer Horn deposit. We are excited by a number of factors that can add value to this project going forward. Our 2009 drilling was conducted during an abbreviated exploration season. Due to the fact that the drilling started later in the year than is optimal, the company concentrated most of its efforts on a small 125 metre segment of the deposit, although historical drilling delineated the vein system over a strike length of approximately 700 metres. We are eager to commence the next drill program at Deer Horn as the deposit remains open in three directions, and the likelihood of adding significantly to our resource base is excellent. The NI 43-101 report includes results of surveys completed in 2009 that indicate that the potential size of the deposit could be much larger."
"In addition to the anticipated increase of our gold and silver resources, we are looking forward to establishing a resource for the tellurium (Te) that is present at Deer Horn. This NI43-101 report does not include any calculations for the Te as there were not any historical results from which to work with. We believe that the Te has a chance to add value to the Deer Horn as we advance the project. Te is one of the rarest metals in the world. Over the past few years the value of Te has increased mainly due to the important role that it plays in the Solar Power industry.
World Industrial Minerals of Arvada, Colorado conducted a site visit to the Deer Horn property in October 2009. Upon the release of our drill results in January 2010 which included the Te values, a Memorandum of Understanding was signed between the two companies with respect to the tellurium."
"As important as it is to increase the size of the mineral resource at Deer Horn, there are other positive factors that could potentially influence the future of the project. Firstly, the mineralization crops out and occurs at shallow depths which makes it amenable to open pit mining methods. Secondly, preliminary metallurgical testing was completed in 1989 by Coastech Research. The report indicated that recoveries of more than 90% of the gold and silver can be expected with a conventional flotation plant. Although the Coastech report was submitted before the implementation of the NI43-101, our QP's are comfortable with its findings. We believe the potential cost effectiveness of open pit mining and the use of a conventional flotation plant further enhance the project. Upon the successful completion of the necessary financing our plans are as follows. To continue to advance the Deer Horn project by completing step out drilling and selected in-fill drilling to upgrade and expand the deposit. Simultaneously, we will resume our baseline environmental assessment of the project area and confirm locations identified in preliminary studies for requisite infrastructure associated with site development. These would include the locations of the mill and the tailings pond etc. Completion of this work will enable us to move forward with a bulk sample in 2011 and to proceed to permitting of a small mine in 2012."
Highlights of the Resource Estimate include:
* Indicated resources of 129,000 tonnes at an average grade of 5.71 g/t Au and 182.27 g/t Ag, based on a gold cut-off grade of 1.0 g/t Au, that contains 24,000 ounces of gold and 760,000 ounces of silver.
* Inferred resources of 202,000 tonnes at an average grade of 6.06 g/t Au and 186.39 g/t Ag, based on a gold cut-off grade of 1.0 g/t Au, that contains 39,000 ounces of gold and 1,210,000 ounces of silver.
Historical work on the Deer Horn property included extensive surface trenching, more than 500 m of underground development, and more than 10,000 m of surface diamond drilling. This early work delineated an east-west trending vein system over a strike length of approximately 700 m and traced mineralization for approximately 1.5 km.
The Company's 2009 program included a total of 35 diamond drillholes with an aggregate length of 1706 m. In addition to the drilling, a total of 33 surface channel samples were collected, a 15 line-kilometre grid was established over which magnetic, 3D-IP and Maxmin surveys were conducted, and an airborne LiDAR (Light Detection and Ranging) survey was flown.
The 2009 drilling was conducted over a strike length of 320 m within the previously outlined 700 m strike length. The majority of the drilling, 24 holes totalling 1074 m, was completed on tight spacing west of the Deer Horn adit in order to delineate a 125 m segment of the deposit. The drilling successfully intersected the two principal zones: the Main Vein (and multiple subsidiary hangingwall (HW) and footwall (FW) veins) and the Contact Zone. This work only partially defined the extent of the Main Vein and associated Contact Zone. The two closely-spaced east-west trending zones dip gently to moderately toward each other forming a V-shaped, near-surface deposit. The deposit appears to thicken where the two zones intersect and the resulting geometry at this confluence is an elongate, gently east-plunging zone. Drillhole DH09-072 intersected the western part of this thickened zone on Section 613655E (235 m west of the Deer Horn adit) and cut a 28.16 m interval averaging 3.43 g/t Au, 108.0 g/t Ag and 117 g/t Te, including 27.60 g/t Au, 718.1 g/t Ag and 863 g/t Te over 0.75 m, and including 12.39 g/t Au, 393.4 g/t Ag and 409 g/t Te over 2.40 m.
The Deer Horn deposit remains open to expansion along strike to the west and to the east, and downdip. The most westerly drillhole (historic hole XR-28) intersected 4.30 m averaging 7.72 g/t Au and 273.56 g/t Ag, including 0.60 m grading 42.50 g/t Au and 1152.0 g/t Ag. The most easterly drillhole (historic hole XR-1) intersected 2.80 m averaging 3.87 g/t Au and 35.4 g/t Ag.
The ground geophysical surveys outlined several linear features that coincide with, and extend beyond the area that has been drilled. In particular, a shallow linear Magnetic low - Resistivity low signature that may be characteristic of the deposit, extends several hundred metres to the west of the area drilled. In addition, little exploration has taken place in the footwall of the thrust for 'Main Vein' type extensional veins.
Tellurium (Te) was analyzed for all 2009 surface channel and core samples. Values in the Main, HW and FW veins and in the Contact Zone ranged from < 5 ppm to 2471 ppm Te. High Te values are consistently associated with high gold and silver values at Deer Horn. Tellurium is considered to be of economic interest, but could not be included in the resource estimate because data for Te is not available from the earlier drilling programs. Te metallurgy will be investigated as soon as possible. Petrographic and scanning electron microscope (SEM) examination of selected high-grade Au-Ag-Te core samples identified a suite of silver, bismuth and lead telluride minerals, but the presence of gold tellurides, while very likely, was not confirmed.
Mineral Resource Estimate
The mineral resource estimate is based on 106 historical diamond drillholes completed from 1944 to 1990 and 35 drillholes completed by the Company in 2009. The holes were drilled over a strike length of approximately 700 m and most were drilled on an azimuth of either 180 or 360 degrees. This data was complemented with 33 surface channel samples collected by the Company in 2009. Indicated and inferred mineral resource estimates at various cut-off grades are listed below.
Mineral Resource Estimate for the Deer Horn Deposit
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INDICATED RESOURCE WITHIN MINERALIZED SOLIDS
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Au Cutoff Tonnes>Cutoff Grades > Cutoff Contained Ounces
(g/t) (tonnes)
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Au(g/t) Ag(g/t) Au Ag
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1.00 129,000 5.71 182.27 24,000 760,000
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1.50 120,000 6.06 192.70 23,000 740,000
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2.00 110,000 6.44 204.07 23,000 720,000
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2.50 100,000 6.85 216.66 22,000 700,000
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3.00 91,000 7.26 229.95 21,000 670,000
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3.50 81,000 7.78 246.19 20,000 640,000
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4.00 74,000 8.13 257.05 19,000 610,000
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4.50 69,000 8.41 264.67 19,000 590,000
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5.00 65,000 8.68 270.30 18,000 560,000
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INFERRED RESOURCE WITHIN MINERALIZED SOLIDS
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Au Cutoff Tonnes>Cutoff Grades > Cutoff Contained Ounces
(g/t) (Tonnes)
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Au(g/t) Ag(g/t) Au Ag
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1.00 202,000 6.06 186.39 39,000 1,210,000
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1.50 191,000 6.31 194.42 39,000 1,190,000
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2.00 174,000 6.77 208.81 38,000 1,170,000
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2.50 157,000 7.27 225.38 37,000 1,140,000
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3.00 146,000 7.59 236.09 36,000 1,110,000
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3.50 136,000 7.92 245.57 35,000 1,070,000
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4.00 127,000 8.22 253.03 34,000 1,030,000
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4.50 117,000 8.57 265.02 32,000 1,000,000
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5.00 105,000 8.97 276.97 30,000 940,000
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The resource estimate was completed by G.H. Giroux, P.Eng., of Giroux Consultants Ltd., using industry standard methods that conform with Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves referred to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Resource Estimation Process
The data and methodology utilized for the resource estimate is as follows:
* Mineral resources were estimated using industry standards that conform with CIM Definition Standards on Mineral Resources and Mineral Reserves referred to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
* With the drill results coming from three different drilling time periods it was first necessary to compare the results to validate the data base. Gold assays from vein material during each time period were plotted on a lognormal cumulative frequency plot to determine if any bias existed between the three drill campaigns; it was found that no bias is present and that there is no reason not to use all of the available drill data for the resource estimation.
* A Pearson Correlation Matrix for 2009 assay data from within the mineralized veins shows a strong correlation between gold-silver (0.7108), between gold-tellurium (0.6968), and between silver-tellurium (0.6349). Tellurium assay data only exists for 2009 sampling program, and therefore could not be considered in the resource estimate.
* Three dimensional solids were produced from cross-sections and geologic interpretation outlining a Main vein, Hangingwall (HW) vein, Footwall (FW) vein and Contact Zone. Drill holes were "passed through" these solids with the point each hole entered and left the solids recorded. Assays were then back tagged with a vein code.
* The individual gold and silver assays were evaluated for each vein. All elements showed skewed distributions and were converted to lognormal cumulative frequency plots.
* The Main, HW and FW veins were evaluated using lognormal cumulative frequency plots and capping levels were established for Au and Ag for each vein. A total of five gold assays were capped and a total to 10 silver assays were capped. No capping was done on Contact Zone assays because of the indicator kriging approach used.
* The drill holes were "passed through" the various vein 3 dimensional solids with the point each hole entered and left each solid recorded. Uniform down-hole composites 1 m in length were produced that honoured the solid outlines. Small intervals at the solid boundaries were combined with adjoining samples if less than 0.5 m. In this manner a uniform support of 1 plus/minus 0.5 m was produced for each vein zone.
* The grade continuity within each of the mineralized zones with sufficient data to model was quantified using pairwise relative semivariograms. The strike and dip of the various veins were measured and used to control the semivariogram orientations. Nested spherical models were fit to gold and silver in the FW and Main veins and low grade portion of the Contact Zone.
* A three-dimensional geological and block model was generated using GemCom software. A block model with blocks 10 m E-W, 5 m N-S and 5 m high was superimposed over the various mineralized solids. For each block the percentage below surface topography and the percentage within each of the mineralized solids were recorded.
* A specific gravity of 2.73 was used for the Main Vein and a specific gravity of 2.77 was used for the Contact Zone. These values are based on measurements of a total of 10 samples of drill core.
* Grades for gold and silver were interpolated into blocks by a combination of ordinary and indicator kriging. Grades for the Main, Hangingwall (HW) and Footwall (FW) veins were estimated by ordinary kriging using only composites from the appropriate vein. Grades for the Contact Zone were determined by a combination of ordinary and indicator kriging.
* Geologic continuity was established by surface mapping and through the logging of drill core. This geologic continuity led to the interpretation and construction of geologic 3 dimensional solids to constrain the estimation. Grade continuity was quantified by semivariograms. Blocks within the better drilled western portion of the deposit and estimated in Pass 1 or Pass 2 using search ellipses up to 1/2 the semivariogram range were classified as Indicated. The remaining blocks were classified as Inferred.
It is the authors' opinion that the Deer Horn property merits advanced levels of exploration, including: additional close-spaced infill and step-out diamond drilling to further define the geometry, size and tenor of the Main Vein and Contact Zone, trenching and extraction of a bulk sample for metallurgical work and test mining purposes, and expansion of 3D Induced Polarization and magnetometer surveys to assist in identifying extensions to the zones. The cost of the recommended program should total CDN$2,500,000.
Qualified Persons
This news release was written, reviewed and approved by Bob Lane, P.Geo., of Plateau Minerals Corp. and Gary Giroux, P.Eng., of Giroux Consultants Ltd. Mr. Lane and Mr. Giroux are independent Qualified Persons as defined by National Instrument 43-101 and are the authors of the updated National Instrument 43-101 Technical Report.
Cautionary Statements
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
Forward Looking Information
Certain information regarding the Company set forth in this press release, including the use of proceeds, and management's assessment of the Company's future plans and operations contain forward looking information that involve substantial known and unknown risks and uncertainties. The forward looking information is subject to numerous risks and uncertainties, some of which are beyond the Company's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Company's actual results, performance or achievement could differ materially from those expressed in or implied by, the forward looking information and accordingly, no assurance can be given that any of the events anticipated to occur or transpire form the forward looking information will provide any benefits to the Company.
For further information please contact:
Investor/Press Contact
Barry Kaplan Associates
(732) 747-0702 Phone
(732) 758-1837 Fax
smallkap@aol.com
Corporate Contact
Tyrone Docherty
President
Golden Odyssey Mining, Inc.
(604) 952 7221
tyrone.doccap@dccnet.com
www.goldenodysseymining.com