Mr. Mark Burridge reports
REBGOLD ANNOUNCES NEW NI 43-101 RESOURCE ESTIMATE FOR FINLAND PROJECTS
REBgoldCorp. has released the initial resource reports from its Finnish goldprojects, Kiimala and Rantasalmi. Highlights of the reports are asfollows:
- Indicated resources of 215,000 ounces;
- Inferred resources of 244,000 ounces;
- Historical resources of 100,000 ounces;
- Significant potential exists to expand existing mineralization and for new discoveries.
Results of the resources are summarized in the attached table. Furtherinformation can be found on the company's website or on SEDAR.
Tonnes Grade g/t OuncesIndicated resourcesOsikonmaki East 1,296,000 1.7 68,000K1 3,850,000 1.19 147,000Total indicated 215,000Inferred resourcesOsikonmaki East 3,542,000 2.1 244,000Total inferred 244,000Historical estimates(1)Oskionmaki West 90,000 4.86 14,000Pirila 300,000 6.5 63,000K3 291,000 2.5 23,000Total historical 100,000(1) The historical estimates for the Osikonmaki West, Pirilaand K3 zones are based on prior data and reports prepared byprevious owners of the properties. A qualified person has notdone sufficient work to classify the historical estimates ascurrent mineral resources under NI 43-101. The company is nottreating the historical estimates as current mineral resourcesor mineral reserves. The company considers that the historicalestimates should be considered only as historical referencesof tonnes and grades. No reliance should be placed on thesehistorical estimates.
Mark Burridge, chairman, stated: "These are very encouraging initialresults. We believe that there is significant potential to add to theseresources by drilling around existing mineralization as well as throughthe discovery of new mineralization. We are particularly excited byOsikonmaki East where the mineralization remains open at depth and alongstrike."
REBgold is also pleased to announce that it has engaged Investor CubedInc. to provide investor relations and shareholder communicationsservices. In connection with the engagement, Investor Cubed has beenawarded a consulting contract paying $5,000 per month for a term of 12months. In addition, Investor Cubed has been granted an option topurchase two million shares of REB at a price of 10 cents per share. Theoptions will vest quarterly over a period of one year and will begoverned by the provisions of REB's stock option plan.
Background on projects
The main mineralized structure in the Rantasalmi area is the Osikonmakishear zone, a shear complex, at least three kilometres long, hosted by aProterozoic-aged (1.88 gigaannum) tonalitic intrusion. Most of thedrilling to date has focused on the eastern 800 metres of this shear(referred to as Osikonmaki East) where the mineralization is primarilyassociated with a 45-degree south-dipping shear zone between four and 30m thick. A series of higher-grade chutes pitch at shallow angles acrossthe plane of the main shear, plunging 20 degrees to the east-southeast,contain the better part of the mineralization and extend for at least600 m downplunge. In addition, recent drilling has identified thepresence of hangingwall mineralization, a portion of which is includedin the current resource estimate. Beyond the main shear zone, potentialexists for gold mineralization in associated structures as indicated bythe high-grade mineralization identified at Pirila.
The Kiimala project contains numerous paleoproterezoic gold occurrencesin the form of an echelon vein system, two of which (K1 and K3) havebeen drilled sufficiently to allow for the historical resourcecalculations.
Rantasalmi mineral resource statement
The mineral resource estimate for Osikonmaki East is effective from Oct.6, 2011, and has been prepared by Golder Associates (U.K.) Ltd. underthe supervision of Alexandra Akyurek, Csci, MSc, MIMMM, acting as anindependent qualified person as defined by National Instrument 43-101.Mrs. Akyurek is a member of the Institute of Materials, Minerals andMining (member No. 447670). Mineral resources of the Osikonmaki Eastgold deposit have been prepared and categorized for reporting purposesby Golders, according to the Canadian Institute of Mining (CIM)Standards on Mineral Resource and Reserves Definitions and Guidelines,referred to in National Instrument 43-101, Standard Disclosure forMineral Projects, for submission to the Toronto Stock Exchange.
The Osikonmaki database includes 199 diamond drill holes totalling24,271 metres drilled. These include 79 drill holes for a total of 7,809m of core drilled by Belvedere and 120 drill holes for 16,462 m of coredrilled by the GTK (Geological Survey of Finland) between 1986 and1991. The database includes 1,135 gold assays from within the modelledwire frames. Drill core sample lengths vary between 0.01 metre and 4.06metres but were generally 1.0 metre (average 0.85 metre). All assayswere composited to a best fit, one m, for use in the interpolation. Notop cutting was employed.
The mineralization was divided into three domains: Main lode, Offsetlode and Top lode. Wire frame models were delineated using a goldcut-off grade of 0.5 gram per tonne Au. The mineral resource wascalculated using block modelling to a maximum vertical depth of 220metres, made up of blocks measuring 10 m by 10 m by 10 m (x, y, z),constrained by the modelled wire frame. Subblocks of five m by five m byvariable (z) were created to better outline the mineralized lodes.
To account for undulations in the topography of the lodes, Goldersemployed an Unfold strategy using Datamine's Unfold technology.Composite samples are unfolded, and all subsequent data manipulation,including variography and estimation, is performed in the transformedco-ordinate system.
Block grades were interpolated using a three-pass, ordinary krigingestimate for the three lodes. For the Main lode the minimum number ofsamples was 12, and the maximum 32, with a maximum of five samplespermitted from one hole. For the Offset and Top lodes the minimum numberof samples was seven and the maximum 32, with a maximum of five samplespermitted from one hole (maximum of four for the third pass).
Bulk density of the mineralization was based on actual specific gravitydata collected during exploration. A total of 227 recent densitydeterminations from within the mineralized rock, as defined by the wireframe model, were used in establishing an average bulk density of 2.69tonnes per cubic metre. Specific gravity of the blocks was estimatedusing inverse distance for the Main, Offset and Top lodes.
Indicated mineral resources are defined as those portions of the depositestimated in the first estimation pass, using only Belvedere samplesand using more than 15 samples. Inferred mineral resources are definedas those portions of the deposit outside of the indicated resources andcontained within the mineralized wire frames. Indicated resources areseparate from inferred resources.
Kiimlala mineral resource statement
The mineral resource estimate for Angesneva (K1) is effective from Sept.29, 2011, and has been prepared under the supervision of Dr. HannuMakkonen, EurGeol, PhD, of the Geological Survey of Finland (GTK),acting as an independent qualified person as defined by NationalInstrument 43-101. Dr. Makkonen belongs to the Geological Society ofFinland, and the Finnish Association of Mining and MetallurgicalEngineers, and holds the European geologist title, EurGeol, No. 808.Mineral resources of the Angesneva gold deposit have been prepared andcategorized following the guidelines of the JORC Code.
The Angesneva (K1) database includes 69 diamond drill holes totalling9,167.71 metres drilled between 1988 and 2010. The database includes4,442 Au assays. Drill core sample lengths vary between 0.08 metre and4.4 metres but were generally about 1.0 metre (average 1.19 metres). Allassays were composited to 1.5 m for use in the interpolation.
The mineralization was modelled as one domain. A wire frame wasconstructed based on a 0.5-gram-per-tonne Au cut-off grade, permittingthe inclusion of up to seven metres of waste. The mineral resource wascalculated using block modelling to a maximum vertical depth ofapproximately 250 metres (z equals negative 160), made up of blocksmeasuring 10 m by 10 m by two m constrained by the modelled wire frame.The block model was rotated to an azimuth of 30 degrees to better fitthe geometry of the body.
Block grades were interpolated using three concentric search ellipsesusing ordinary kriging with a minimum of three and a maximum of 25samples. The first search ellipse had a maximum range of 26 m (beingtwo-thirds of the range determined by variography), the second was 52 mand the final 104 m. In the first pass, 8.6 per cent of blocks werepopulated, in the second pass, 63.6 per cent, and the remainder of 27.7per cent was populated in the third pass.
Bulk density of the mineralization was based on actual specific gravitydata collected during exploration. A total of 285 measurements weretaken from within the modelled mineralized zone, giving an average bulkdensity of 2.83 tonnes per cubic metre.
About Investor Cubed
Investor Cubed provides specialized investor relations and businessconsulting services to a select group of leading emerging andmid-capitalization public companies. Investor Cubed has an establishednational network of financial industry professionals includinginvestment advisers, bank-owned investment dealers and leadingindependent financial firms. In addition, ICI introduces and managesnational on-line and off-line marketing initiatives.
Qualified person
This news release was reviewed by Dr. Makkonen, PhD, EurGeol, andAlexandra Akyurek, qualified persons for both REBgold and Belvedere, incompliance with National Instrument 43-101 with respect to this release.
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