CUMBERLAND REPORTS DISCOVERY OF NEW GOLD ZONECumberland cuts 21.36 gpt Au over 1.75 m on Meadowbank
Cumberland Resources Ltd (TSX:CLG)
Shares Issued 54,973,941
Last Close 9/7/2005 $1.68
Thursday September 08 2005 - News Release
Ms. Joyce Musial reports
CUMBERLAND REPORTS DISCOVERY OF NEW GOLD ZONE AT THE MEADOWBANK GOLD PROJECT
Cumberland Resources Ltd. has discovered a new near-surface gold zone during the phase II, 2005, drill program at the company's wholly owned Meadowbank gold project, located 70 kilometres north of the Hamlet of Baker Lake, Nunavut. The phase II program is focused on increasing the 2.8-million-ounce open-pit gold reserves at Meadowbank. The recently discovered mineralization is centred approximately 350 metres north of the proposed Portage open pit, which contains the largest reserves (1,534,000 ounces) of the three proposed open pits at Meadowbank.
Newly discovered Cannu gold zone
The Cannu zone became a 2005 drill target by reinterpretation of a 1998 drill hole (NP98-305) that yielded a near-surface intersection containing 4.41 grams per tonne over 6.65 metres. Geological mapping and anomalous surface samples collected in July, 2005, assisted in outlining the fold structure hosting the Cannu gold mineralization and in determining phase II drill targets. Cannu zone drill results are attached below.
To date, assay results have been received from the first seven holes completed in the phase II program at the Cannu zone. All seven of the current drill holes have returned grades and thicknesses above cut-offs used for recent feasibility study resource and reserve estimates. Highlights include:
hole NP05-571, grading 7.06 grams per tonne over 7.44 metres at 28 metres below the surface;
hole NP05-573, grading 2.65 grams per tonne over 4.95 metres at five metres below the surface;
hole NP05-575, grading 21.36 grams per tonne over 1.75 metres at 72 metres below the surface;
hole NP05-576, grading 4.14 grams per tonne over 5.47 metres at 21 metres below the surface, 16.44 grams per tonne over 2.87 metres at 30 metres below the surface and 2.07 grams per tonne over 2.35 metres at 39 metres below the surface; and
hole NP05-577, grading 6.66 grams per tonne over 3.5 metres at six metres below the surface, 7.27 grams per tonne over 6.23 metres at 32 metres below the surface and 4.73 grams per tonne over 5.55 metres at 40 metres below the surface
The Cannu zone is along trend from the open-pit reserves at the Portage and Goose Island deposits. The zone is hosted in a shallow bowl-shaped (fold) structure (see attached Cannu section 1700 North) comprising the same interbedded iron formation and volcaniclastics found at the other deposits on the property. Mineralization is similar to that comprising the Portage and Goose Island deposits and multiple zones or stacking is apparent (NP05-576,577). The proposed Portage open pit, located 350 metres south, is currently host to 1,534,000 ounces of proven and probable gold reserves.
Assay results from the remaining drill holes at the Cannu discovery will be announced as received.
Meadowbank gold project
Cumberland is advancing Meadowbank toward open-pit production of 315,000 ounces of gold per year over an 8.3-year mine life with an estimated total cash cost of $224 (U.S.) per ounce. A feasibility study was completed by AMEC Americas Ltd. in February, 2005. SG Corporate & Investment Banking was appointed financial adviser in June, 2005, in connection with potential debt financing, and development permitting is entering the final stages. Operations from three shallow open-pits are planned to commence in mid-2008, provided final permits and licences are obtained in early 2006.
MEADOWBANK OPEN-PIT
GOLD PRODUCTION PROFILE
Proven and
probable
reserves 2,768,000 ounces
Mine
throughput 2.73 M tonnes per year
Mine life 8.3 years
Average annual
production rate
From first to
fourth year 375,000 ounces
For the
life of mine 315,000 ounces
Total cash
cost per ounce
From first to
fourth year $199 (U.S.)
For the
life of mine $224 (U.S.)
MEADOWBANK OPEN-PIT GOLD RESERVES
For the first quarter of 2005
Pit Category Tonnes Au
gpt
Portage
Proven 1,253,000 5.19
Probable 9,927,000 4.15
Goose
Probable 2,247,000 5.09
Vault
Proven 53,000 3.31
Probable 8,416,000 3.18
Pit Category Tonnes Au
ounces
Portage
Proven 1,253,000 209,100
Probable 9,927,000 1,324,500
Goose
Probable 2,247,000 367,700
Vault
Proven 53,000 5,600
Probable 8,416,000 860,400
Note: 95-per-cent mining recovery and contact dilution applied.
Qualified person
Gordon Davidson, PGeol, is exploration manager, Canada, for Cumberland Resources and is the designated qualified person for the Meadowbank project. Mr. Davidson has supervised drill hole planning, implementation and quality control/quality assurance programs at the Meadowbank project since 2002. Drill core analysis is performed on split core with standard fire assay procedures and AA finish. QA/QC programs employ random insertion of four internal standards, field duplicates and blank samples. Gravimetric analysis is performed on any sample yielding greater than one gram per tonne gold in fire assay. Primary assaying is performed by IPL Laboratories of Vancouver. ACME Analytical Laboratories of Vancouver provides external reference assaying. True thickness of intersections ranges from 95 to 100 per cent of intersected widths.
2005 PHASE II DIAMOND DRILLING
CANNU ZONE COMPOSITES
Hole From To Au Width
No. m m gpt m
NP05-571 21.93 22.30 1.60 0.37
28.33 35.77 7.06 7.44
51.59 51.89 1.44 0.30
56.38 57.13 2.72 0.75
NP05-572 7.07 9.15 2.95 2.08
11.57 12.02 1.10 0.45
26.25 27.83 3.65 1.58
46.62 48.46 2.41 1.84
NP05-573 4.25 9.20 2.65 4.95
45.53 46.61 1.58 1.08
NP05-574 31.00 35.00 2.07 4.00
54.02 54.40 1.19 0.38
79.54 79.87 1.11 0.33
NP05-575 14.72 15.10 1.60 0.38
19.90 20.20 1.75 0.30
35.13 37.62 1.42 2.49
46.55 47.35 5.96 0.80
63.16 63.57 1.24 0.41
72.30 72.90 3.30 0.60
83.05 84.80 21.36 1.75
107.13 107.53 4.60 0.40
NP05-576 24.18 29.65 4.14 5.47
30.65 31.18 1.42 0.53
36.78 39.65 16.44 2.87
45.55 47.90 2.07 2.35
53.08 53.38 1.60 0.30
NP05-577 4.80 8.30 6.66 3.50
34.27 40.50 7.27 6.23
42.75 48.30 4.73 5.55
60.35 62.12 7.54 1.77
64.25 64.55 1.70 0.30
76.47 77.75 1.28 1.28
86.98 87.50 3.10 0.52
90.55 92.00 9.14 1.45