RE: RE: Trading Resume Sorry, NR got cut off... in my last post
The new and updated resource estimate for the Kiaka Central Area deposit, which does not include any results from the newly discovered, high grade Kiaka South Area (see press release dated February 14, 2012), is summarized in Table 1 below:
Table 1: Mineral Resources at the Kiaka deposit as at March 20th, 2012 SRK Mineral Resource Statement, Kiaka Gold Project 20 March 2012 Type Category Tonnes (Kt) Au (g/t) Metal Au (Kg) Metal Au (Koz) Mineralised Bands Measured 17,010 1.39 23,660 761 Indicated 38,960 1.35 52,570 1,690 Measured and Indicated 55,970 1.36 76,230 2,451 Inferred 13,100 1.40 17,800 570 Halo Mineralisation Measured 14,360 0.81 11,640 374 Indicated 47,080 0.80 37,460 1,204 Measured and Indicated 61,440 0.80 49,100 1,578 Inferred 16,900 0.80 13,500 430 Combined Total Measured 31,370 1.13 35,300 1,135 Indicated 86,050 1.05 90,000 2,894 Measured and Indicated 117,420 1.07 125,300 4,029 Inferred 30,000 1.00 31,200 1,000 Notes Mineralised Bands based on a cut-off grade of 1 Au (g/t) within mineralised wireframe Halo Mineralisation based on a cut-off grade of 0.6 Au (g/t) within mineralised wireframe All figures are rounded to reflect the relative accuracy of the estimate and the assigned categories
"Phase 3 drilling in the Kiaka Central Area has achieved the objective of increasing the Measured and Indicated Category resources by 33% to over 4 million ounces of gold, with a further 1 million ounces in the Inferred Category. The deposit is proving to be geologically and geostatistically consistent, delivering results in line with (or even exceeding) expectations", stated Kevin Bullock, Volta Resources President & CEO.
He went on to say "For the third time in less than two and a half years, the Volta Resources team has yet again delivered an updated resource estimate on time and on budget and I commend them on their efforts. The current resource contained within a single open pit, with favorable strip ratio, geometry and metallurgical recoveries, provides a very robust basis for the pre-feasibility study currently underway. A maiden resource, due by early Q3, from the recent high grade discovery at the Kiaka South Area (not included in this resource update), located only 750m south of the current resource, could significantly enhance the quality of Kiaka Project in the future."
This mineral resource estimate is based on approximately 113,000m of diamond and RC drilling: 35 drill holes for 8,083m from Randgold, the previous owners, and 660 drill holes for 104,509m from Volta Resources ongoing drilling campaign. In comparison to 2011, an additional 295 drill holes have been incorporated, representing an additional 39,937m of drilling and 41,365 new assays, representing a 56% increase in the size of the assay database.
Phase 3 drilling has now defined the Kiaka deposit to >1.5km along strike (illustrated in plan and longitudinal section in Figures 1 and 2) and down to an average depth of approximately 500m below surface (illustrated in cross section in Figure 3). The additional drilling continues to confirm that higher grade "mineralized bands" ranging between 5 metres and 70 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 260 metres wide. As in previous resource estimates for Kiaka, SRK has elected to report 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.
Phase 3 drilling has resulted in further increasing the confidence in the geological model, leading to a 10% increase in Measured Resources to 1,135,000 ounces. Measured and Indicated Resources have increased by 33% from 3,018,000 ounces to 4,029,000 ounces, with Inferred Resources now standing at 1,000,000 ounces.
The estimate is based on a combination of diamond core and RC chip samples which were fire assayed for gold by ALS, SGS and BIGS laboratories in Ouagadougou. Field rejects from the mineralized intersections of the Randgold drill holes have been re-sampled and included in Volta Resources assay database; comprehensive QAQC has demonstrated that sample preparation and laboratory performance for all 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 wire-framed using an approximate 0.3 g/t shell. A block model was then generated using block dimensions of 5 metres x 20 metres x 10 metres, into which up to 24 x 3 meter composite samples per block were used for estimation employing an ordinary kriging routine. All composites have been capped where appropriate.
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. The Mineral Resource is constrained within a Whittle open pit shell, with SRK electing to use market consensus long term gold price forecasts from over 30 contributors, to which has then applied an uplift, resulting in a long term optimistic gold price of 1400 USD/ oz; this approach is in line with other gold producing companies' reporting methods. For the other Whittle input parameters, SRK has briefly reviewed typical mining, processing, administrative costs for a range of gold mines in the West African region in order to nominate marginal operating costs of USD 11.85 per tonne for processing and G&A as well as $1.62 per tonne for mining assuming a 12 Mtpa CIP operation. Further, assuming a process recovery of 89.8% based on metallurgical testwork undertaken by Volta Resources. In order to be consistent with previous resource estimates for Kiaka, a cut off grade of 0.6 g/t has been applied in reporting the resource. SRK conclude that the cut-off grade could possibly be lowered to marginal cut-off in the order of 0.4g/t Au, when assuming the Whittle input parameters outlined above.
Table 2: 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 20 March 2012 Measured & Indicated Inferred Cut-off Tonnes Au GradeMetal AuMetal Au Tonnes Au GradeMetal AuMetal Au g/t Kt g/t Kg (Koz) Kt g/t Kg (Koz) 1.40 17,780 1.78 31,630 1,020 4,200 1.80 7,600 200 1.20 32,170 1.56 50,190 1,610 7,200 1.60 11,400 370 1.00 55,970 1.36 76,240 2,450 13,100 1.40 17,800 570 0.90 70,720 1.28 90,240 2,900 17,100 1.30 21,600 700 0.80 86,360 1.20 103,530 3,330 21,300 1.20 25,200 810 0.70102,380 1.13 115,540 3,710 25,700 1.10 28,400 910 0.60117,420 1.07 125,340 4,030 30,000 1.00 31,200 1,000 0.50128,250 1.02 131,330 4,220 33,400 1.00 33,200 1,070 0.40134,220 1.00 134,050 4,310 35,500 1.00 34,100 1,100 0.20137,480 0.98 135,150 4,350 37,300 0.90 34,700 1,120 0.00182,750 0.74 135,610 4,360 124,500 0.30 35,600 1,140
This updated resource model will now be included in the pre-feasibility study that is being completed for the Kiaka Central Area by independent consultants, Wardrop-Tetratech.
Volta Resources is continuing with a Phase 4 drilling program at Kiaka. The main focus of Phase 4 is to rapidly define a resource at the recently discovered high grade targets in the Kiaka South Area, located on strike and less than 750m southwest of the Kiaka Central Area. In addition, other local targets already identified within a 3 kilometer radius of the currently defined deposit will be tested. Volta Resources has also advanced several regional targets on the 184 km2 Kiaka property to the stage where initial scout drilling is imminent.
A copy of the full technical report that accompanies the NI 43-101 resource statement will be posted on Volta Resources website and on SEDAR within 45 days.
Pursuant to National Instrument 43-101, the qualified person responsible for the technical data provided in this press release is Mr. Ben Parsons, a Senior Consultant (Resource Geology); he is a full time employee of SRK Consulting (UK) Ltd. Mr. Parsons is a member of the AusIMM with Chartered Professional status. Mr. Parsons has reviewed and approved the contents of this news release.
We seek Safe Harbor.