Moneta reports wide mineralized intervals at Golden Highway
TORONTO, Oct. 29, 2013 /CNW/ - Moneta Porcupine Mines Inc. (TSX: ME) (OTC: MPUCF) (XETRA: MOP) ("Moneta" or the "Company") is pleased to report drill results from its ongoing 30,000 metre drilling program at its 100% owned Golden Highway property in Timmins, Ontario.
The Company is currently reporting assay results from 50 drill holes and 2 drill hole extensions totaling 21,500 metres. Two drill rigs have been in operation since the beginning of the year and assay results are pending for other drill holes.
The 2013 drill program is primarily focused on the renamed Windjammer Zone - south, central, north and west areas (previously Windjammer South, Windjammer Central, Windjammer North and Gap Zone, respectively) and included areas previously drilled on 100 metre drill spacing within the Preliminary Economic Analysis (Dec 2012) ("PEA") conceptual open pits. 2013 program objectives included an upgrade in the category of resource ounces to Measured and Indicated ("M&I") from previously reported Inferred ounces.
The successful 2013 in-fill drill program on 50m spacing within the Windjammer Zone has confirmed similar grade and widths to the previous drilling, with improved grade and broader widths in certain areas. Strategic drilling has also successfully confirmed western extensions of the mineralization from the Windjammer Zone towards the Southwest Zone.
Management believes that the Windjammer Zone will see a notable upgrade to NI 43-101 M&I resource ounces from previously reported Inferred ounces with a possible increase in tonnage and total resource ounces.
Ian C. Peres, President and CEO said, "We are pleased to report that we are funded into 2014 with a healthy treasury position. With higher resource confidence established after in-fill drilling the large open pit gold resources, our focus now shifts to the higher grade below the Southwest Zone portion of the open pit. The combined open pit and underground mining approach confirmed in the December 2012 PEA establishes Golden Highway as a project of scale with higher grade than comparable deposits, and this, in one of the best mining jurisdictions in the world."
Roger Aubertin, Vice President Exploration said, "The gold distribution along the 2.8 km wide structural corridor of the Golden Highway is very impressive. Predictability of grade is critical and drilling continues to confirm remarkably homogenous mineralization with consistent grade up to 200 metres in width."
The high grade depth potential of the Golden Highway has generally not been tested except for the Southwest Zone - with 5.61 g/t over 20.0m and 7.42 g/t over 16.58m (MSW10-267) at the 800 metre depth, multiple high grade intercepts extending to 1,100+ metres, and still open to depth. Management is reinterpreting the potential for higher grade at depth below the Windjammer Zone conceptual open pit areas, a setting similar to that of the Southwest Zone. Modeling of higher grade cores within the conceptual Windjammer Zone open pit areas is also underway as part of this reinterpretation.
Drilling is ongoing in the Windjammer Zone. Once completed, focus will shift to the Southwest Zone to upgrade inferred to M&I resource ounces and refine the understanding of the structural controls for both the upper open pit mineralization and the wide higher grade mineralization confirmed at depth. The Company will also continue work to expand the 2.8km mineralized corridor which remains open in both directions on the Golden Highway along its 12km strike length.
Significant 2013 drill program gold intercepts include:
Windjammer Zone - south, central and north areas: 30 drill holes:
- MGH13-024: 6.80 g/t over 3.0m and 2.24 g/t over 11.0m within 1.12 g/t over 60.0m;
- MGH13-027: 0.95 g/t over 37.0m;
- MGH13-028: 1.09 g/t over 61.0m incl. 1.39 g/t over 20.0m within 0.73 g/t over 144.0m;
- MGH13-030: 1.09 g/t over 10.0m within 0.69 g/t over 178.0m;
- MGH13-031: 1.75 g/t over 18.0m within 1.04 g/t over 61.0m within 0.64 g/t over 151.0m;
- MGH13-032: 0.99 g/t over 21.0m;
- MGH13-033: 2.38 g/t over 10.0m within 1.00 g/t over 44.0m;
- MGH13-034: 1.01 g/t over 32.0m within 0.71 g/t over 139.0m;
- MGH13-035: 1.09 g/t over 21.0m within 0.62 g/t over 63.0m;
- MGH13-036: 0.94 g/t over 18.0m within 0.67 g/t over 70.0m;
- MGH13-038: 1.07 g/t over 10.0m / 1.01 g/t over 10m / 0.99 g/t over 5.0m / 0.95 g/t over 16.0m, all within 0.75 g/t over 71.0m;
- MGH13-039: 1.05 g/t over 16.0m / 0.95 g/t over 10.0m within 0.65 g/t over 97.0m;
- MGH13-040: 0.97 g/t over 18.0m;
- MGH13-041: 1.17 g/t over 9.0m within 0.60 g/t over 149.0m ;
- MGH13-042: 1.01 g/t over 199.0m incl. 1.65 g/t over 17.0m / 1.24 g/t over 34.0m / 1.48 g/t over 53.0m within 1.10 g/t over 162.0m;
- MGH13-043: 2.19 g/t over 34.0m within 1.37 g/t over 77.0m and 0.96 g/t over 51.0m incl. 1.33 g/t over 24.0m, and 0.98 g/t over 16.0m incl. 1.18 g/t over 11.0m;
- MGH13-044: 1.47 g/t over 16.0m / 1.19 g/t over 13.0m, both within 1.02 g/t over 44.0m;
- MGH13-045: 1.16 g/t over 19.0m / 1.46 g/t over 6.0m / 0.94 g/t over 16.0m, all within 0.65 g/t over 116.0m;
- MGH13-046: 2.10 g/t over 14.0m, and 1.37 g/t over 27.0m / 1.01 g/t over 30.0m / 2.32 g/t over 8.0m / 1.40 g/t over 16.60m, all within 0.80 g/t over 148.6m;
- MGH13-047: 22.25 g/t over 5.0m incl. 152.65 g/t over 0.72m;
- MGH13-049: 3.21 g/t over 15.0m within 1.39 g/t over 67.0m;
- MGH13-050: 4.74 g/t over 4.0m and 0.85 g/t over 17.0m / 0.86 g/t over 22m, both within 0.60 g/t over 108.15m;
Windjammer Zone - west area: 20 drill holes:
- MGH13-004: 1.01 g/t over 53.0m incl. 3.44 g/t over 10.0m;
- MGH13-005: 1.33 g/t over 29.0m incl. 1.94 g/t over 18.4m and 1.89 g/t over 17.3m incl. 2.02 g/t over 15.6m;
- MGH13-006: 1.70 g/t over 4.0m and 1.05 g/t over 23.0m within 0.78 g/t over 61.0m and 1.13 g/t over 10.0m;
- MGH13-008: 1.06 over 14m and 1.89 g/t over 4.80m and 1.10 g/t over 14.85m;
- MGH13-009: 1.39 g/t over 20.0m and 2.52 g/t over 2.0m;
- MGH13-011: 1.88 g/t over 3.0m and 0.78 g/t over 32.0m incl.1.08 g/t over 13.0m;
- MGH13-012: 1.21 g/t over 6.0m and 0.98 g/t over 22.0m;
- MGH13-013: 1.16 g/t over 11.0m;
- MGH13-014: 1.06 g/t over 17.0m;
- MGH13-016: 0.92 g/t over 8.0m;
- MGH13-018: 0.88 g/t over 13.0m within 0.71 g/t over 34.30m;
- MGH13-019: 1.92 g/t over 18.4m and 0.92 over 9.0m;
- MGH13-020: 1.34 g/t over 11.0m and 1.08 g/t over 29.0m;
- MGH13-022: 1.43 g/t over 18.0m;
Southwest Zone: 1 drill hole and 2 extensions:
- MGH13-010: 7.10 g/t over 7.0m within 2.28 g/t over 38.0m;
- MM97-216X: 9.2 g/t over 5.0m;
- MM97-285X: 4.09 g/t over 6.05 m and 4.06 over 8.46m.
Gold mineralization in the Golden Highway conceptual open pits is now confirmed for more than 2.8 km along strike from the Southwest Zone to Windjammer Zone. The mineralized corridor hosts average widths of 150 metres and up to 700 metres in the Windjammer Zone and occurs within a broad band of Temiskaming sediments in structural contact with the Kidd-Munroe volcanic assemblage. This contact zone is defined by the Destor Porcupine Deformation Zone. The gold mineralization is dependent on the intensity of quartz veining and silicification with moderate to strong ankerite alteration preferentially associated with 1-2cm quartz veining. Pyrite is commonly observed with quartz-carbonate veining while specularite is found within quartz-chlorite veining. The corridor hosts pervasive gold mineralization with grades varying between 0.5 and 1.5 g/t in addition to localized higher grade zones throughout the deposit. Higher grade mineralization is characterized by an increase in the silica/ankerite alteration and sulphide content.
PEA and NI 43-101
The December 2012 Preliminary Economic Analysis of the Golden Highway returned a strong $748M net present value at US$1,350 gold, still relevant at current gold spot prices.
Golden Highway hosts higher grade potential based on mineralization intersected in Southwest Zone (west area of pit) and Windjammer Zone (north and south areas) which provides latitude in terms of optimizing the conceptual open pit plans which will have a favorable impact on future project valuations.
The PEA consisted of a combined open pit and underground strategy which reported grade of 1.17 g/t, robust in comparison to some of the larger open pit gold production operations in Ontario and Quebec. The higher grade underground resource ounces are a critical component in the current PEA and overall project feasibility. The reader is cautioned that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Shareholders approved a name change to Windjammer Gold at the Company's Annual Meeting held in May 2013. The Board of Directors has elected to not move forward with the name change at this time.
The Company is planning an updated NI 43-101 Mineral Resource Estimate in Q1 2014. An updated PEA is planned and will reflect optimization of the initial conceptual open pits and the updated Q1 2014 resource estimate.
Complete assay results, surface and cross-sections for the 2013 drill program on Golden Highway are available on the Company's website at www.monetaporcupine.com.
The Company's exploration program is being managed by Roger Aubertin, Eng., a Qualified Person within the meaning of National Instrument 43-101. Mr. Aubertin has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information.
Moneta holds a 100% interest in 5 core gold projects strategically located along the highly prospective Destor Porcupine Fault Zone in the world class Timmins Camp, one of the best mining jurisdictions in the world with over 75 million ounces of past gold production and unmatched infrastructure including paved highway access, water, electricity, skilled labor force, and nearby mills.
A Preliminary Economic Assessment (Dec 2012) for the flagship Golden Highway generated a Net Present Value of $748M using US$1,350 gold based on the NI 43-101 resource estimate of 1,091,000 ounces indicated (31.1 Mt at 1.09 g/t Au) plus 3,204,000 ounces inferred (83.3 Mt at 1.20 g/t Au), clustered within four kilometres of similar geology.
Assay Reporting: Diamond drill core logging and sampling follows general industry practices whereby logged and sample marked core is sawn in half with one half bagged and tagged for shipment to the assay laboratory and the remaining half of the sawn core returned to the core box for storage and future reference. Pulps and rejects are also stored. Blanks and a range of standards are inserted into the sample steam at regular intervals. Initial assays, metallics, and routine duplicates are completed by Expert Laboratories. Up to 15% of the pulps are submitted to a second laboratory as duplicates and checks. All laboratories used standard 30g fire assay techniques. Additional core sampling and assaying, including second cuts and metallics, may be completed at later dates. Intersections are reported using drilled widths unless specified otherwise with assay values as simple averages of duplicates and gravimetric results.
This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements.
SOURCE Moneta Porcupine Mines Inc.For further information:
Ian C. Peres, President & CEO