New Carolin Gold Announces Initial Resource Estimate for McMaster Zone at Ladner Gold Property
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2012) -
NOT FOR DISTRIBUTION IN THE UNITED STATES.
New Carolin Gold Corp. (TSX VENTURE:LAD) is pleased to announce the completion of a NI 43-101 compliant resource estimate to determine an initial gold resource in the McMaster Zone at its Ladner Gold Property in southwestern British Columbia. The McMaster Zone is approximately 1.3 km north of the historic Carolin Mine and is on strike with the same serpentinite unit as mapped at the Carolin Mine which is associated with gold mineralization. The McMaster to Carolin area represents less than 5% of the total land package.
This NI 43-101 Mineral Resource estimate validates previous internal Company reports regarding the mineral potential of the McMaster Zone. The Company has initiated a NI 43 -101 compliant resource estimate for the Carolin Mine, which is forthcoming, and together these reports are integral to our corporate strategy to advance the Ladner Gold property toward renewed gold production.
Highlights
- Inferred Mineral Resource estimate is 79,540 oz gold in 3,575,080 tonnes at a cutoff grade of 0.5 g/t gold.
- The McMaster Zone occurs within the current mine permit area.
- The McMaster Zone is open in all directions.
- This resource takes into account only gold as silver was not included in the historical database. Recent drilling by the Company indicates the presence of silver accompanying the gold mineralization.
- Gold mineralization appears to occur in sub-parallel zones that dip to the northeast.
- This resource estimate does not take into account of a gold oxide zone mapped in surface trenches and encountered in several drill holes.
- Additional drill core testing will be needed to determine the full extent of the possibility of an open pit gold resource and to bring the inferred tonnage estimates into the indicated category.
Future Plans
The Company will focus on further defining and increasing the gold resource at the McMaster Zone. Additional diamond drilling is required to:
- confirm continuity and grade of gold mineralization along the 400 meters of strike length tested to date,
- upgrade gold mineralization now reported in the Inferred category to the Measured and Indicated categories,
- identify and define additional areas of gold mineralization outside, but in close proximity to, the current McMaster Zone resource envelope and
- define, and increase, the gold resource potentially amenable to open pit mining.
| McMaster Zone |
| Inferred Mineral Resource Estimate |
| March 2012 |
| |
| Cut Off | Tonnes | Grade | Gold | Gold |
| (gms) | (000) | (g/t) | gms (000) | (oz) |
| | | | | |
| 3.5 | 79 | 3.71 | 294 | 9,450 |
| 3 | 118 | 3.22 | 381 | 12,235 |
| 2.5 | 253 | 2.74 | 692 | 22,255 |
| 2 | 548 | 2.24 | 1,225 | 39,370 |
| 1.5 | 709 | 1.73 | 1,229 | 39,520 |
| 1 | 1,198 | 1.22 | 1,467 | 47,150 |
| 0.5 | 3,575 | 0.69 | 2,474 | 79,540 |
| CIM definitions were followed for Mineral Resources. |
| Mineral Resources are undiluted. |
| Mineral resources that are not mineral reserves do not have demonstrated economic viability. |
Details of the parameters used in the resource estimate are as follows:
- This mineral resource estimate is based on 4200 metres of drillcore from 38 diamond drill holes. Approximately 2500 metres from 28 diamond drill holes are part of a historical database and the remaining 1700 metres from 10 holes were drilled by New Carolin, the results of which were given in press releases of January 6 and January 12, 2010. Pre-2009 drill core is not available for direct verification of sampled intervals. Available data, including drill hole collar information, drill hole logs, assay certificates, government assessment reports, internal Company reports and press releases have been checked, compared and verified to support this Inferred category Mineral Resource estimate.
- Missing or unsampled intervals were filled with 0.001 g/t gold.
- A three dimensional block model with dimensions 10m x 10m x 5m was produced using Vulcan 3D mining software.
- The gold grade distribution within the mineralized domain was examined to determine if capping was required. A cap of 7.2 g/t was applied.
- Composited gold assay values were analyzed using Supervisor software to generate pairwise relative semivariograms.
- Gold grade estimation was carried out using inverse distance cubed method using 2 metre downhole drill hole composites. This method was used to interpolate grades into blocks within the block model. The estimate was completed using a three pass approach with the search ellipse for each pass being a function of the semivariogram ranges.
- Specific gravity value of 2.78 was used as this was the historical value used in past estimate studies.
This mineral resource estimate has been prepared by Mr. Walter A. Dzick, CPG. (Snowden Consultants) and Mr. Cliff Pearson, P.Geo (Pearson Geological Services), each one being an independent "Qualified Person" under the National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical information contained in this news release was prepared by Mr. Bruce Downing, CEO for New Carolin Gold Corp., who is a "Qualified Person" under NI 43-101.
This report validates prior Company reports and continues New Carolin's tradition of execution. The Company is now able to plan a definitive drill program as part of its overall exploration and development plan at the McMaster Zone.
About New Carolin Gold Corp.
New Carolin Gold is a Canadian-based junior mineral exploration and mine development company engaged in the acquisition, exploration, evaluation and development of approximately130 square kilometres of contiguous mineral claims, collectively known as the Ladner Gold Project, located along the prospective and under-explored Coquihalla Gold Belt located in southwestern British Columbia, which is host to several historic small gold producers including the Carolin Mine, Emancipation Mine, Pipestem Mine and numerous other gold prospects. The results of a recently completed airborne geophysical survey indicates a major magnetic linear structure that can be traced for over 18 km within the company's claims. The aforesaid gold prospects all occur along this magnetic trend. The linear structure is attributable to the presence of serpentinite, which is associated with gold mineralization.
ON BEHALF OF THE BOARD OF DIRECTORS
Bruce W. Downing, M.Sc., P.Geo, Hon.FEC, President & Chief Executive Officer
We seek Safe Harbor.
Caution concerning forward-looking information
This news release may contain forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this press release.