Indicated Resources of 41.25Mt @ 1.04 g/t Au for 1,384,000 Ounces of Gold and Inferred Resources of 15.90Mt @ 0.90 g/t Au for 480,000 Ounces of Gold
TSX: VTR
TORONTO, June 29 /CNW/ - Volta Resources Inc. ("Volta" or the "Company") (TSX: VTR) announces a maiden NI43-101 compliant resource estimate for its Kiaka Gold Project, located approximately 120 kilometres southeast of Ouagadougou, the capital city of Burkina Faso. The resource estimation has been undertaken by independent consultants, SRK Consulting (UK) Ltd. based in Cardiff, United Kingdom. The resource estimate is based on more than 25,000 metres of drilling including 147 holes drilled by Volta and previous owner Randgold Resources Limited. The drilling was completed on schedule and the results have led to a robust maiden resource with demonstrable upside.
The resource estimation is based on the drill results from the central area at Kiaka and includes the KMZ and parts of the KHZ and KFZ zones. The volume modeled and included in the resource estimate by SRK extends for just over 1 kilometre along strike and down to a maximum vertical depth of 230 metres below surface. SRK concurs with Volta's technical team that higher grade "mineralized bands" ranging between 5 metres and 20 metres wide extend with good continuity for 100 metres to 400 metres along strike and 50 metres to 200 metres down dip. These "mineralized bands" are hosted within a lower grade "halo mineralization" within a structural corridor that is 100 metres to 200 metres wide (see Figure 1 and Figure 2). SRK has elected to define resources from the "mineralized bands" at a cut-off grade of 1.0 g/t gold and the "halo mineralization" at a cut-off grade of 0.6 g/t gold. The table below provides a summary of the estimate of Indicated Resources and Inferred Resources at these cut-off grades.
<< ------------------------------------------------------------------------- SRK Mineral Resource Statement, Kiaka Gold Project 29th June 2010 ------------------------------------------------------------------------- Au Metal Metal Type Category Tonnes (Kt) (g/t) Au (Kg) Au (Koz) Mineralized Indicated 16,990 1.42 24,060 773 Bands Inferred 4,510 1.40 6,200 200 Halo Indicated 24,260 0.78 18,990 611 Mineraliz- Inferred 11,400 0.80 8,800 280 ation Combined Indicated 41,250 1.04 43,100 1,384 Total Inferred 15,900 0.90 15,000 480 ------------------------------------------------------------------------- Notes ----- - Mineralized Bands based on a cut-off grade of 1.0 Au (g/t) within mineralized wireframe - Halo Mineralization based on a grade bracket of 0.6 - 1.0 Au (g/t) within mineralized wireframe - Mineral Resources are not mineral reserves and thus do not have demonstrated economic viability >>
Kevin Bullock, Volta's CEO, said, "We are proud to release this maiden resource estimate that has met our very aggressive timeline, that establishes an initial total amount of gold ounces at the upper end of our original gold resource goal, and that demonstrates significant future potential. This resource estimate amply confirms Kiaka's status as one of West Africa's major emerging gold projects. We intend to maintain our aggressive pace with another major drill campaign and a scoping study this year, leading towards a pre-feasibility program, as part of our commitment to advance Kiaka on the production path as quickly as possible."
The estimate is based on a combination of diamond core and RC chip samples which were fire assayed for gold by ALS in Ouagadougou. Field rejects from the mineralized intersections of the RRL RC drillholes have been re-sampled and included in Volta's assay database; comprehensive QAQC has demonstrated that sample preparation and laboratory performance for both drilling campaigns provided assays which are fit for the purpose of this estimate.
The grade estimation domains comprise the wide KMZ corridor and flanking KHZ and KFZ structures that were wireframed using an approximate 0.3 g/t shell. A block model was then generated using block dimensions of 20 metres x 20 metres x 5 metres, into which up to 40 x 1 metre composite samples per block were used for estimation employing an ordinary kriging routine with a variably oriented search ellipse, following the undulating mineralized bands identified. The resultant block grade distribution reflects the curvilinear banding which both Volta and SRK consider to be an important feature of the deposit.
SRK has considered sampling density and distance from samples in order to classify the Mineral Resource according to the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves (December 2005) as required by National Instrument 43-101. Further, SRK has used reasonable costs for the region, process recoveries based on RRL sighter tests and a long term upside gold price of US$ 1040/oz to determine that the current resource and its potential depth extensions have sufficiently high grade, width and proximity to surface to have reasonable prospects for economic extraction by open pit. Based on the current economic parameters applied within Whittle, the open-pit bottoms out on the deepest Inferred Resources, which are currently only defined to the 50 metre RL (or 230 metres below surface), (see Figure 2). Additional drilling below the current Inferred Resource limit could add to the resources.
The following Table shows the sensitivity of SRK's block model within the Whittle open pit, at a range of cut-off grades from 0.0g/t to 1.4g/t.
<< ------------------------------------------------------------------------- Grade - Tonnage Table, Kiaka Deposit 29th June 2010 ------------------------------------------------------------------------- Indicated Inferred Cut- Au Metal Metal Au Metal Metal off Tonnes Grade Au Au Tonnes Grade Au Au g/t Kt g/t Kg K oz Kt g/t Kg K oz ------------------------------------------------------------------------- 1.40 6,220 1.86 11,550 371 1,320 1.90 2,500 80 1.20 10,100 1.64 16,550 532 2,370 1.60 3,900 120 1.00 16,990 1.42 24,060 773 4,510 1.40 6,200 200 0.80 27,480 1.22 33,440 1,075 9,020 1.10 10,200 330 0.60 41,250 1.04 43,100 1,384 15,900 0.90 15,000 480 0.40 54,090 0.92 49,540 1,593 26,070 0.80 20,000 640 0.20 60,580 0.85 51,630 1,660 33,280 0.70 22,200 720 0.00 61,540 0.84 51,750 1,664 37,350 0.60 22,700 730 ------------------------------------------------------------------------- >>
SRK states that, and Volta concurs, there is considerable potential to find additional resources in the Central Area at Kiaka. These could be derived from:
<< - at depth beneath the main mineralized strike interval identified so far, - along strike to the south where scout drilling has encountered encouraging mineralization, - along strike to the north where faulting may have offset the mineralization to the east of the current drilling coverage; and - Within the current mineralized wireframes where more material is present at lower-grade which could add low grade ounces to the deposit should more favourable costs than currently assumed be defined. >>
In addition, drilling currently underway in the south area (approximately 400 metres to the south of the current resource) is pursuing a target that has similar geological and geophysical characteristics to the central area. Volta plans to continue exploration at Kiaka including more than 20,000 metres of additional drilling in the second half of this year. Volta also plans to commence a scoping study this year which will lead into a pre-feasibility program.
Volta carries out a rigorous QAQC procedure on its sampling and assaying. The RC portions of the drill holes were sampled at 1-metre intervals. Dry samples were riffle-split to provide 2 kilogram samples sent to the laboratory. Wet samples were dried in the field, then riffle-split in the same way. The cored portion of the drill holes were sampled at one metre intervals and cut in half using a diamond saw. Half-core is archived at the core storage facility on site while the other half was sent to the laboratory. Certified standards were inserted every 15 samples, field duplicates (in the RC portions) about every 20 and blanks about every 30 samples.
Pursuant to National Instrument 43-101, the qualified persons responsible for the technical data provided in this press release are Mr. Martin Pittuck, a Principal Resource Geologist and Mr. Ben Parsons, a Senior Resource Geologist; both full time employees of SRK Consulting (UK) Ltd. Mr. Pittuck is a Member of the IOM3 and Mr. Parsons is a member of the AusIMM. Mr. Pittuck has reviewed and approved the contents of this news release.
Volta is a mineral exploration company primarily focused on becoming a leader in the identification, acquisition and exploration of gold properties in West Africa. The Company is currently fast-tracking its flagship Kiaka Gold Project, located in Burkina Faso, towards a development decision.
Forward Looking Information Caution:
This press release presents "forward-looking statements" within the meaning of Canadian securities legislation that involve inherent risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral resources, the capital expenditures, costs and timing of the resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Volta to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to international operations, actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management of Volta believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Volta Resources does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
To view Figure 1 and Figure 2 of the Kiaka Gold Project, please visit: https://files.newswire.ca/407/Volta_29062010.doc
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For further information: please refer to our website www.voltaresources.com or contact: Kevin Bullock, P.Eng., President & CEO, Tel: (647) 388-1842, Fax: (416) 867-2298, Email: kbullock@voltaresources.com; Andreas Curkovic, Investor Relations, 416-577-9927