Temex begins 3,000 metres of drilling at Whitney
Temex begins 3,000 metres of drilling at Whitney
2014-04-08 09:10 ET - News Release
Mr. Ian Campbell reports
TEMEX COMMENCES 2014 DRILL PROGRAM, WHITNEY GOLD PROJECT, TIMMINS, ONTARIO
Temex Resources Corp. has commenced a 3,000-metre diamond drill campaign on the Whitney gold project located in Timmins, Ont. The project is operated by Temex under a joint venture with Goldcorp Canada Ltd.
This drill campaign is a key component of the 2014 work program, unanimously approved by the management committee of the joint venture in late January. The work program was developed as a result of the updated NI 43-101 resource (news release Jan. 14, 2014) on the Upper Whitney which includes the past-producing Upper Hallnor and Broulan Reef Mines. The resource study demonstrated that the high-grade gold resources are potentially amenable to underground and selective open pit mining methods. The resource on a 100-per-cent basis is summarized as follows:
- 3.0 g/t gold cut-off grade:
- Measured plus indicated: 708,600 ounces gold at 6.85 grams per tonne gold contained in 3.2 million tonnes;
- Inferred: 170,700 ounces gold at 5.34 g/t gold contained in 1.0 million tonnes 5.0 g/t gold cut-off grade;
- Measured plus indicated: 502,200 ounces gold at 10.12 g/t gold contained in 1.5 M tonnes;
- Inferred: 88,700 ounces gold at 8.50 g/t gold contained in 300,000 tonnes.
The 2014 work program, with a $3.5-million budget, will set the stage for an advanced exploration bulk sample program, planned to begin in 2015 and which management currently believes will comprise a small open pit and underground plan. The results of the current program will be incorporated into a preliminary economic assessment (PEA) for the Upper Whitney portion of the project. Additionally, the work program will evaluate available data for an initial resource estimate on the lower portion of the Whitney project which includes the Lower Hallnor and Lower Broulan Reef mines.
Ian Campbell, president and chief executive officer of Temex Resources Corp., commented: "The Whitney gold project contains an excellent combination of being in a premier location, having near-surface high-grade gold resources and anticipated low capital costs. These attributes have given us the confidence to move the project to the permitting stage. Funding is in place and we are focused on carrying out the necessary work to complete a PEA later this year, followed by an advanced exploration program beginning in the first half of 2015. We are also excited by the potential to significantly expand the current resource base on numerous newly discovered targets that have never been exploited."
About the 2014 work program
The main components of the 2014 work program are summarized below.
Diamond drilling
A total of 7,000 metres of drilling is budgeted for resource definition and geotechnical investigation into a proposed future surface and underground exploration development and bulk sample program planned to be accessed by a starter test pit. An initial 3,000-metre campaign is allocated to upgrade the proposed starter pit resource to the measured resource category. A second campaign of 4,000 metres is allocated to test underground targets identified as suitable for exploration drift and raise development. All drilling is focused on the first level between surface and 70 metres vertical. The drilling will be used to advance engineering work on the advanced exploration mine development program to be conducted subsequent to the drill program.
Environmental investigations and permitting
Geotechnical drilling of groundwater monitoring wells and soil investigations has commenced in support of permitting requirements for advanced exploration. Hydrological studies to evaluate the surface water regime are also in progress. Regular meetings are planned with regulatory authorities and aboriginal communities. An amendment of the existing filed closure plan is anticipated as well as new permits for taking water, discharge, air and noise. The continuing environmental studies and permitting requirements are also designed to support a PEA.
Preliminary economic assessment (PEA)
Engineering studies are in progress to evaluate the economics of the current NI 43-101 resource on Upper Whitney. Included in the PEA tasks are detailed metallurgical tests of higher grade resource material, geotechnical drilling, and investigation into rock mechanics and quality and engineering design. This work will provide necessary data to evaluate anticipated mining methods and custom milling options. Preliminary metallurgical testwork conducted in 2013 on lower grade material concluded that cyanide leaching on whole ore at various grinds produced excellent gold leach recoveries ranging between 93 per cent and 98 per cent.
Potential for significant expansion of current resource base
The project contains excellent upside for expansion of the current resource base identified to a depth from surface to only 500 metres vertical in a camp that has traditionally gone more than 1,500 metres in depth. The identified mineralized zones are open in all directions along the four-kilometre mine trend. Numerous areas contain high-grade drill intersections that are wide open, as are high-grade past mine operations which terminated at former property boundaries. These areas include but are not limited to the following.
Upper Whitney mine trend
- Upper Hallnor Main vein extension which yielded 19.77 g/t gold over 13.80 metres including 31.64 g/t gold over 8.30 metres, at the bedrock/overburden interface and within 17 metres from that surface (news release July 11, 2013);
- 238 zone discovery, a parallel shear vein structure 200 metres north of the main Hallnor structures, which intersected 7.33 g/t gold over 5.75 metres including 60.40 g/t gold over 0.50 metre within 35 metres from surface (news release Feb. 12, 2013);
- Q zone with intersections of 68.70 g/t gold over 0.50 metre, 17.71 g/t gold over 2.90 metres including 90.35 g/t gold over 0.50 metre, and 29.21 g/t gold over 1.40 metres at Hallnor (news release May 14, 2009) and 122.85 g/t over 0.50 metre (news release Feb. 9, 2012) 800 metres along strike at Hugh Pam, with no drilling between.
Lower Whitney mine trend
Compilation of historical data from Lower Whitney below a 500-metre vertical depth is under way. This work builds on the success demonstrated by the compilation work which initially identified the mineralized zones now comprising the Upper Whitney resource. Compilation is focused on the Lower Hallnor mine which contains multiple mined zones averaging greater than 10 g/t gold but which terminated due to former property boundaries at the time of mining operations. Some of the highlights of the lower Hallnor include:
- 21.10 g/t gold over 6.55 metres drilled by Temex (news release April 2, 2009) extending the down plunge direction of the 19 vein system (400,000 ounces mined gold at 14.4 g/t gold) which terminated at a former property boundary;
- 1377 g/t gold over 2.9 metres drilled by previous operators which is wide open;
- 221 g/t gold over 2.2 metres drilled by previous operators extending the 12 vein system down plunge which is wide open.
About the Upper Whitney resource
The mineral resource statement (news releases Jan. 14 and Feb. 27, 2014) was prepared in accordance with NI 43-101 standards by P&E Mining Consultants Inc., of Brampton, Ont., with a database incorporating 340 surface diamond drill holes (79,992 metres) drilled by Temex between 2005 and 2013, 10,841 historic drill holes (499,674 metres) drilled by previous operators and 32 surface diamond drill holes (1,470 metres) drilled in 2013 by the joint venture partner for geotechnical purposes. Measured, indicated and inferred mineral resources have been delineated within 40 domains on the Upper Whitney covering an area of 3,000 metres long by 250 metres wide by 650 metres deep. The resource, summarized below and shown on 100-per-cent basis, is robust at higher cut-off grades as detailed in the grade sensitivity table.
Mineral resource Upper Whitney at 3.0 g/t gold cut-off grade Measured (M): 218,100 ounces contained in 966,000 tonnes at a grade of 7.02 g/t gold Indicated (I): 490,500 ounces contained in 2,253,000 tonnes at a grade of 6.77 g/t gold Total M+I: 708,600 ounces contained in 3,219,000 tonnes at a grade of 6.85 g/t gold Inferred: 170,700 ounces contained in 995,000 tonnes at a grade of 5.34 g/t gold
Grade sensitivity at 5.0 g/t gold cut-off results in measured and indicated resource of 502,200 ounces at 10.12 g/t gold in 1,544,000 tonnes and inferred resource of 88,700 ounces at 8.50 g/t gold in 325,000 tonnes.
UPPER WHITNEY RESOURCE SENSITIVITY TO GOLD CUT-OFF GRADE Capped Measured Indicated Cut-off Au g/t Tonnes Au g/t Au oz Tonnes Au g/t Au oz 8.0 g/t 222,000 14.88 106,100 482,000 14.71 228,100 5.0 g/t 481,000 10.22 158,100 1,063,000 10.07 344,100 3.0 g/t 966,000 7.02 218,100 2,253,000 6.77 490,500 1.0 g/t 2,394,000 3.90 300,500 6,177,000 3.61 716,400 UPPER WHITNEY RESOURCE SENSITIVITY TO GOLD CUT-OFF GRADE Capped Measured plus indicated Inferred Cut-off Au g/t Tonnes Au g/t Au oz Tonnes Au g/t Au oz 8.0 g/t 704,000 14.77 334,200 124,000 12.21 48,600 5.0 g/t 1,544,000 10.12 502,200 325,000 8.50 88,700 3.0 g/t 3,219,000 6.85 708,600 995,000 5.34 170,700 1.0 g/t 8,571,000 3.69 1,016,900 3,157,000 2.90 294,500
The contents of this news release have been reviewed and approved by qualified persons R. Kim Tyler, PGeo, project manager for Temex Resources; Ian Campbell, PGeo, president and chief executive officer of Temex Resources; and Karen Rees, PGeo, vice-president, exploration, of Temex Resources Corp.
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