Coastal Gold suspends work on Hope Brook PEA
Coastal Gold suspends work on Hope Brook PEA
2014-04-15 04:20 PT - News Release
Dr. Bill Pearson reports
COASTAL GOLD PROVIDES CORPORATE UPDATE
Coastal Gold Corp. is providing the following corporate update.
Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, commented: "Over the past year, in spite of the difficult market conditions, we have substantially advanced our Hope Brook Gold Project. On December 4, 2013 we released an updated mineral resource estimate that increased the indicated resource by 110% to 1,239,000 ounces of gold with an additional 138,000 ounces of gold in the inferred category. The overall grade of the indicated resource was increased by 30.2%. In addition, on January 16, 2014 we released an inferred tailings resource of 134,500 ounces and 9.5 million pounds copper. We have identified a number of exploration targets both near surface and underground with good potential to further expand mineral resources."
Dr. Pearson continued "These new resource estimates have formed the basis for a preliminary economic assessment (PEA). Work completed on the PEA has focused on the potential production from tailings, open pit and underground at a rate of 5,000 tonnes per day. While we have made good progress, further engineering work is needed to finalize the study. Coastal Gold has elected to suspend work on the PEA to conserve cash and wait for market conditions to improve."
Mineral Resource at Hope Brook
The NI 43-101 mineral resource on the Company's Hope Brook Gold Project, as reported in the press release issued on December 4th 2013, are estimated to contain 1,239,000 indicated ounces of gold and 138,000 inferred ounces of gold as set out in Table 1 below.
--------------------------------------------------------------------------- Table 1: Mineral Resource for Gold, Hope Brook Gold Project as at December 4, 2013 --------------------------------------------------------------------------- Within constraining shell Below constraining shell @ 0.50 g Au/t cut-off @ 2.0 g Au/t cut-off --------------------------------------------------------------------------- Gold Gold Gold Gold Category Tonnes g/t (Oz) Tonnes (g/t) (Oz) --------------------------------------------------------------------------- Indicated 17,692,000 1.70 966,000 2,254,000 3.76 273,000 --------------------------------------------------------------------------- Inferred 230,000 0.89 7,000 1,101,000 3.71 131,000 --------------------------------------------------------------------------- --------------------------------------------- Table 1: Mineral Resource for Gold, Hope Brook Gold Project as at December 4, 2013 --------------------------------------------- Total --------------------------------------------- Gold Gold Category Tonnes g/t (Oz) --------------------------------------------- Indicated 19,946,000 1.93 1,239,000 --------------------------------------------- Inferred 1,330,000 3.22 138,000 ---------------------------------------------
Additionally, a NI 43-101 mineral resource estimate has also been reported on the tailings at the Hope Brook project as reported in the press release dated January 16th, 2014. The tailings are estimated to contain 134,500 ounces of gold and 9.5 million pounds of copper in the inferred category at a cut-off grade of 0.45 g Au/t as set out in Table 2.
---------------------------------------------------------------------------- Table 2: Mineral Resource for Gold and Copper, Hope Brook Tailings as at January 15, 2014 ---------------------------------------------------------------------------- Tonnes Cu Au Cu Category Pond Area mil Au g/t % Oz mil lbs. ---------------------------------------------------------------------------- Tailings Inferred Pond 1 2.6 0.95 0.10 80,000 5.9 ---------------------------------------------------------------------------- Tailings Inferred Pond 2 2.3 0.75 0.07 54,400 3.6 ---------------------------------------------------------------------------- Pond 1 and Pond 2 Inferred Total 4.9 0.86 0.09 134,500 9.5 ----------------------------------------------------------------------------
The independent technical report, entitled "2013 Mineral Resource Estimate, Technical Report Hope Brook Gold Project, Newfoundland and Labrador, Canada" (the "Technical Report"), dated January 17th, 2014, was prepared for Coastal Gold by AGP Mining Consultants Inc. and Mercator Geological Services Limited. The Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.coastalgold.ca.
QUALIFIED PERSON
Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, a Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this news release.
We seek Safe Harbor.