Masuparia plans bulk sampling for Greywacke Masuparia Gold Corp (3) (C:MAS)
Shares Issued 16,958,787
Last Close 11/12/2012 $0.15
Wednesday November 14 2012 - News Release
Also Golden Band Resources Inc (C:GBN) News Release
Mr. Ron Netolitzky of Masuparia reports
MASUPARIA PROVIDES GREYWACKE GOLD PROJECT UPDATE
Masuparia Gold Corp. has provided an update on the Greywacke project, part of a 50/50 joint venture with Golden Band Resources, hereinafter referred to as the La Ronge South Gold (LRSG) joint venture (see news release of April 2, 2012). The large 5,786-hectare Greywacke property was the focus of renewed exploration this summer and fall. With the MAS website in the process of being updated, the Company will incorporate additional background information into our news releases in the interim.
The Company views the Greywacke North deposit as an initial open pit project with potential of a second phase underground operation, with the objective being to advance the project towards a production decision. Exploration results from work completed this summer and fall, form the basis of the next steps. Prior to commencing a Preliminary Economic Assessment (PEA, or scoping study), metallurgical test work and baseline environmental studies are required.
Excavation of a bulk sample during winter 2013 is the near-term objective, with the recently completed fieldwork supporting the winter exploration leading to an updated resource estimate and the geotechnical data required for engineering studies. The Company will utilize Golden Band's nearby Jolu mill to process a bulk sample and the open pit deposit, and anticipate that both the processing of the bulk sample and the eventual open pit would be cash flow positive to finance the Company's ongoing exploration activities. Work completed this summer/fall included rehabilitation of historical diamond drill core, re-clearing of the trenched area, relocating drill collars, and completing further channel sampling, in-fill sampling of historic core, as well as obtaining a sample for bench scale metallurgical testing.
Another phase of surface drilling will be required to complete a new resource estimate. A winter drill program to follow-up the final summer/fall exploration results, with initial indications that a minimum of 2,500 metres of drilling would be required prior to commissioning a new resource study. The existing NI 43-101 compliant resource (see previous news release of April 7, 2008) does not incorporate all the most-recent drill and surface channel data, and the deposit remains open.
With further drilling and sampling, the Company believes there is good potential to increase the dimensions and the extent of known mineralisation as well as to ensure that the resource better reflects the total potential. Preliminary assay results of initial infill sampling of historical Greywacke North core has confirmed that the gold mineralisation extends beyond the limits of previous sampling. The Company is encouraged by this and awaits the receipt of final assay results.
To facilitate the field work, the JV upgraded access to the Greywacke North Deposit by improving the existing dozer trail to one suitable for 4-wheel drive vehicles. Improved access permitted the mobilization of a camp and crew to the previous Greywacke North campsite. Additional activities to advance the project include the acquisition and refurbishing of a small trailer camp to support drill programs, summer exploration work, and preliminary engineering studies. The camp will be installed after freeze up. Although our prime objective is to advance the Greywacke North deposit towards a production decision, the balance of the property has exciting exploration potential. We intend to explore the balance of the property in parallel with advancing work on the Greywacke North deposit.
Masuparia has also acquired high-resolution orthophoto maps and completed high-resolution aeromagnetic survey at 75 m line spacing over the whole property. The interpretation has allowed a new understanding of structural controls to the known gold mineralization in that the Greywacke deposit is cut by a number of crosscutting structural features that divide the known mineralization into separate zones. These new findings, in combination with the existing geological data, will serve to help direct future work both within the existing deposit and in exploration for other deposits.
Project History
The Greywacke mineralization was discovered in 1989 by SMDC (Cameco), a major uranium producer. Subsequently re-staked, the Greywacke North Occurrence was optioned by Masuparia in 2001 and the Company funded sufficient exploration to acquire a 51% interest. In 2006, Golden Band (GBN) acquired a 49% interest in the core claims from the original vendors, subject to a royalty. Additional claims were held 100% by MAS and GBN (subject to a royalty) which make up the current JV project.
With last year's management changes in the Company, MAS and GBN entered into an agreement that consolidated both Companies' interests and the project became a 50:50 JV (LRSG JV), with Masuparia being the operator during the exploration phase, and led to renewed exploration in 2012.
The deposit has had two mineral resource estimation studies completed, one by SMDC/Cameco predating NI 43-101 requirements, and the independent study commissioned by MAS through the services of Wardrop Engineering (now Tetra Tech) which forms a compliant resource under NI 43-101. A summary of these resource estimations follows. Bowdidge (2002) reported Cameco's 1991 resource of 328,000 short tons averaging 0.27 oz/t gold (8.64 g/t) in the Greywacke zone. Wardrop's 2008 report on Greywacke Lake North Zone estimated an Indicated Resource of 184,000 tonnes grading 8.40 g/t gold (49,700 ounces), plus an Inferred Resource of 58,000 tonnes at 7.29 g/t (13,600 ounces) (at a cut-off of 5 g/t).
Historical exploration work initially focused on the nearby Shandy Lake gold occurrence, a showing delineated by Cameco prior to their discovery of the Greywacke mineralization. The Shandy Lake core was relocated this summer and presence of surface mineralization confirmed. A grab sample collected from the showing during the summer 2012 program, yielded 85.56 g/t gold. The historical Lyons Zone was also visited as significant channel sample results were obtained from the 2002 exploration program (Figure. 2). Samples from the 2002 program assayed as high as 16.69 g/t gold over a 1 metre, 15.35 g/t gold over 1.5 metres and 13.41 g/t gold over 2 metres. Results from chip sampling of the Lyons showing completed during the fall 2012 program have not yet been received.
Mike Jamieson, P.Geol., of Taiga Consultants Ltd., has acted as the Qualified Person as defined in National Instrument 43-101 for this disclosure and has approved the technical information contained in this release.
© 2012 Canjex Publishing Ltd.