My math is also an estimate 2,165,000 Million Tonnes Indicated x $300/Tonne = $650,000,000 x 3%=$20,000,000 .... .20-.30 cent minimum stock price..
Andover Mining increases Sun NI 43-101 indicated
2013-10-03 08:23 ET - News Release
Mr. Gordon Blankstein reports
ANDOVER ANNOUNCES INITIAL MINERAL RESOURCE ESTIMATE FOR SUN POLYMETALLIC VMS DEPOSIT, SUN DISTRICT, AMBLER MINERAL BELT, ALASKA
Andover Mining Corp. has completed and filed a National Instrument 43-101 technical report entitled, "Technical Report on the Sun Project, Brooks Range, Alaska." The date of the report is Sept. 30, 2013; the effective date is Nov. 15, 2012. The report, prepared by Mine Development Associates of Reno, Nev., provides the initial National Instrument 43-101-compliant mineral resource estimate for Andover's wholly owned Sun deposit, located in the Sun district of the Ambler mineral belt, Alaska.
Using a cut-off of $75 per tonne in-ground value, the combined Main Sun and Southwest Sun deposits indicated resources are estimated to total 2,165,000 tonnes (2,387,000 tons) at 1.42 per cent copper, 1.06 per cent lead, 4.11 per cent zinc, 57.6 grams per tonne silver and 0.21 gram per tonne gold (3.9 per cent copper equivalent). The inferred resources are 11,648,000 tonnes (12.84 million tons) at 1.14 per cent copper, 1.37 per cent lead and 3.91 per cent zinc, 76.8 grams per tonne silver and 0.24 gram per tonne gold (3.9 per cent copper equivalent). This resource estimation indicates a minimum deposit size as the Main Sun remains open to the northeast and down dip and the Southwest Sun remains open to the southwest and down dip. The copper equivalent grades were calculated based on metal prices of $3 per pound copper, 95 cents per pound lead, 95 cents per pound zinc, $25 per ounce silver and $1,300 per ounce gold, and assume 100-per-cent recoveries.
The resource estimation utilized the database of 97 drill holes totalling 19,123 metres. Andover has drilled 48 of the holes, totalling 10,311 metres. The remainder are historic drill holes drilled by previous operators, including Cominco (Teck Resources), Anaconda, Sunshine, Noranda and Bear Creek (Kennecott).
"These results validate Andover's efforts over the past seven years, and clearly show that the Sun and Southwest Sun deposits represent a very significant mineral resource by any standards," said Kent Turner, Andover's chief operating officer. "At this size, with the excellent continuity apparent within the deposits and the very high in-ground metal values, the Sun and Southwest Sun deposits clearly have all the earmarks of a potentially major economically significant resource. With the Sun deposits resource now quantified, Andover's exploration efforts can now be directed at discovering and advancing new resources at the many exploration targets remaining on the property as outlined in our news release dated Sept. 12, Sept. 17 and Oct. 18, 2012."
The mineral resource estimate has been calculated using the Canadian Institute of Mining, Metallurgy and Petroleum definitions standards for mineral resources in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Rounding may cause apparent discrepancies.
"Receipt of this report is very exciting news for Andover Mining," commented Gordon Blankstein, chief executive officer and chairman of Andover Mining. "The Sun deposits are now shown to have the kind of high grades necessary for development in Alaska. With the contained metal content and copper-equivalent we believe the Sun project represents one of the larger undeveloped polymetallic VMS resources in the world."
"Another very important advancement in the potential development of the Ambler mineral belt in general and the Sun district in particular is the continued forward movement in the development of the Ambler road to resources," added Mr. Turner. "The road project is now in the hands of the state's economic development arm AIDEA and the construction permit application will be submitted in early 2014 to the Army Core of Engineers with construction proposed for 2018. The road is not only critical for efficient transportation of personnel and materials into the district and concentrates out, but combined with the potential development of North Slope LNG for the Fairbanks market, also by AIDEA, may allow for the use of LNG which would significantly reduce energy costs in the belt."
The technical report and resource calculation were completed by Mine Development Associates under the supervision of Michael Gustin and Peter Ronning, National Instrument 43-101 qualified persons and independent of Andover Mining. The report will be available on SEDAR and on the company's website as a National Instrument 43-101-compliant document.
The Sun mineral resources have been estimated based on the following parameters:
- The resource model is controlled explicitly by mineral domains that were first interpreted independently for each metal on a set of 50-metre-spaced vertical cross-sections and then rectified on a set of level plans spaced at three-metre intervals that cover the vertical extent of the deposits;
- The mineral domains were interpreted so as to respect geological interpretations, including lithologies and interpretations of massive-sulphide bodies that display strike and dip continuity;
- Assays lying within some of the domains were capped, where considered appropriate. The capped assays were composited at two-metre intervals;
- Interpolation was done by inverse distance to the second or third power, depending on the metal, into model blocks that are three metres wide, three metres high and three metres long;
- In addition to the assay capping, restrictions were placed during grade interpolation on the influence of high-grade composites in a number of the mineral domains;
- Specific gravities used for tonnage calculations are 4.2 for semi-massive to massive-sulphide mineralization and three for other mineralization;
- The modelling and estimation of the mineral resources were completed using GEOVIA Surpac mining software.
This news release has been reviewed by Mr. Turner. Mr. Turner is a National Instrument 43-101 qualified person and has reviewed the technical aspects of this news release.
We seek Safe Harbor.
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