VANCOUVER, Aug. 16, 2013 /CNW/ - Auracle Resources Ltd. (TSX-V: AAL) reports that as a result of a review by the British Columbia Securities
Commission (BCSC), the following news is issued to clarify, retract,
restate and update certain of its previously issued news releases and
disclosures on its website www.auracleresources.com.
On October 12, 2012 the Company issued a press release that disclosed an
"historical resource estimate in excess of 300,000 ounces of gold
averaging 1.2g/t Au". This statement references disclosures of past
operator Placer Dome U.S on the Mexican Hat property. However, the
source report by Placer Dome US Inc dated May 1990 (the PD Report) does
not use the specific language mentioned in the press release and
therefore does not comply with s.2.4 and s.3.4(b) of NI 43-101 in its
full and correct form. Futher examination of the PD Report found the
above estimate is a historical "geological estimate" using polygons,
based on a zero cutoff grade. It was "unconstrained by drilling", and
sub-quantities making up the estimate do not have assigned grades. It
is unlikely the PD report intended to disclose 300,000 ounces as a
valid resource estimate. Therefore, the Company wishes to retract its
prior disclosure of a 300,000-ounce historical estimate. A more
detailed indicator kriged estimate in the PD Report assigned a
significantly smaller quantity of gold to the same deposit. This
historical "geological estimate" contains approximately 156,000 ounces of gold (5,769,000 tons grading 0.027 oz/ton gold at 0.01
oz/ton cutoff).
There are no current NI 43-101 compliant mineral resources or mineral
reserve estimates for the Mexican Hat property. While the 1990, PD
report noted a resource estimate of approximately 156,000 ounces gold
from 5,769,000 tons grading 0.027 ounces per ton with a cut-off of 0.01
ounces per ton, this historical resource does not provide any increased
probability that new discoveries will be made or that new discoveries
can be economically developed. A qualified person has not done
sufficient work to classify the historical estimate at Mexican Hat as
current mineral resources, and the company is not treating the
historical estimate as current mineral resources, but considers them
important as a guide to future work on the property. Auracle intends to
engage a third party to assess the past work programs, both historic
and those completed by Auracle, in order to design a systematic
exploration program planned to confirm the data generated thus far and
identify additional exploration targets.
The most recent technical report on the Mexican Hat property by James W
McLeod, P. Geo., dated May 2011, did not support the Company's prior disclosure of historic estimates. Upon review of the
Placer Dome May 1990 report and the Company's re-statement of the
Mexican Hat historic resource estimate, the company intends to re-file
its technical report on the Mexican Hat property.
Additionally, similar comments were made in the Company's marketing
materials. The Company's fact sheet as posted on Auracle's website
contains non-compliant disclosure about a 300,000 historical estimate
and that Auracle is working to expand and develop its historic
resource. For reasons as mentioned pertaining to the October 12, 2012
press release, and because the Company is not currently working on
developing the resource, it also retracts the statements in previous
marketing materials.
The Company's marketing material dated April 2013 mentions the phrase
"holds a multi million ounce potential". NI 43-101 restricts such
disclosure of quantities unless there is a valid basis to estimate
potential quantity and grade ranges. Disclosure did not attach
prominent cautionary language required by NI 43-101 to explain
potential is conceptual in nature. Therefore, the Company wishes to
retract this statement and clarifies it has not presently estimated any
valid quantity and grade ranges for additional potential exploration
targets on the property.
The Company has temporarily suspended it's website in order to rectify
the content of its website disclosure.
Furthermore, the disclosures made as mentioned above fail to name the
qualified person who prepared and supervised the preparation of the
technical information. For these previous disclosures, George
Nicholson, P. Geo. acted as the Company's Qualified Person. Mr.
Nicolson has been a founder and Independent Director of Auracle
Resources Ltd. The company will make the required disclosures relating
to its Qualified Person in all future technical disclosures.
In the Company's MD & A for the year ending January 31, 2013 and for
Three Months Ending April 30, 2013, information refers to a 1990 Placer
Dome USA, or PDI statement as "inferred resource of 154,000 ounces of
gold with a near surface geological inferred resource of 300,000 ounces
gold. Similarly, this disclosure is not compliant with requirements of
NI 43-101 in that the quoted statement does not clearly define this as
an historical estimate, it omits required language referring to
relevance and reliability, key assumptions, parameters and methods,
cautionary language, and fixed grade values. As indicated above, the
company retracted the 300,000-ounce quantity. Auracle Resources will
amend its MD & A for the periods mentioned above for review on its
website and SEDAR.
Management of Auracle wished to apologize for any confusion and
misunderstanding regarding the status of disclosure relating to any
historic resource estimates and the stage and status of advancement of
the Mexican Hat property. For further information, please refer to the
re-launched website, scheduled to be posted mid August 2013.
The Company also wishes to inform shareholders that its Annual General
Meeting was held on April 19, 2013. At the meeting, the following
changes to the Company's board of directors were made. Mr. Alaudin
Sachedina and Mr. George Nicholson resigned as directors. Mr. Richard
Simpson was not re-elected to serve as a director. Auracle Resources
wishes to thank these gentlemen for their time and contribution to the
company since its inception and wishes them success in their future
endeavors. Effective as of the Company's Annual General Meeting on
April 19, 2013, the Company's directors are: Robin Forshaw, Ross C.
McCutcheon LLB, B Sc., and Jason Leikam.
Brian Game, P. Geo, a principal of Geominex Consultants Inc., and a
qualified person under the meaning of National Instrument 43-101, is
responsible for the technical content of this news release.
On behalf of the Board of Directors,
Jason Leikam
VP, Director
Auracle Resources Ltd.
(778) 858-8085
info@auracleresources.com
SOURCE: Auracle Resources Ltd.
