RE:Lamaque South: 1,057,420 Au ounces at a grade of 7.1 g/t AuGreat news !
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Here are a few points I find interesting !
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1) The Triangle Zone remains open in all directions and over the next three months the Company plans to have 4 drills operating on the zone focusing on expanding the existing resource to bring additional gold ounces into an updated mine plan. Without incorporating the new resources announced today, and using the closing spot gold price of US$1239 per ounce and exchange rate of 1.24 from February 9, 2015, the Lamaque South Project PEA reports a pre-tax IRR of 106% and NPV(5) of C$266 million, further highlighting the project's potential
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2) When the Sigma Property resources (see press release dated January 13, 2015) are added to these newly updated resources on Lamaque South, the Company's global mineral resource increases to a total of 1.64 million Au ounces grading 6.2 g/t Au of Indicated (and Measured) resources and 2.18 million Au ounces grading 6.5 g/t Au of Inferred resources, at the cut-off grades noted below.
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3) It is important to note that the wider zones discovered in the lower half of the Triangle Zone appear to mimic the lower sections of the neighbouring Lamaque Mine, which historically produced 4.5 million ounces of gold with the most productive years coming from bulk mining techniques in the lower, bulk zones. Some of the widest and highest grade intercepts reported are from the lower mineralized zones at Triangle which were discovered in 2014 and remain open laterally and at depth.
4) These wider zones of mineralization dip to the south at greater than 45 degrees, suggesting these zones could be mined using more productive, bulk mining methods such as long-hole mining. This is a significant discovery and should positively impact mining costs as these mining methods are more efficient and cost effective than traditional shallow dipping, narrow vein mining techniques.
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Marine2