Moss Lake Mineral Resource estimate upgraded and increased
TORONTO, July 14 /CNW/ - Moss Lake Gold Mines Ltd. (MOK: TSX-V) is pleased to announce an updated NI 43-101 compliant Mineral Resource estimate for its wholly-owned Moss Lake gold deposit located 100 kilometres due west of Thunder Bay, Ontario. This estimate is part of an independent technical report undertaken by Watts, Griffis and McOuat Limited Consulting Geologists and Engineers.
Highlights of the new resource estimate include:
- Tonnage and contained ounces of gold increase by 8% over previous estimates - 65% of resources upgraded to the Indicated resource category - Mineral Resource geometry favours open pit mining techniques - Potential for resource growth recognized in the gap between the Main and QES zones
The technical report supporting these estimates will be made available within 45 days in accordance with regulatory requirements.
Table 1 - MOSS LAKE MINERAL RESOURCES Prepared by WGM (using a 0.001 opt Au cutoff and 0.300 opt Au top cut) ------------------------------------------------------------------------- Category Zone Tons opt Au Contained Au (million) ('000 oz) ------------------------------------------------------------------------- Indicated Main Zone 12.5 0.023 291 QES Zone 27.8 0.029 816 ---- ----- --- Total Indicated 40.3 0.027 1,107 Inferred Main Zone 16.5 0.025 418 QES Zone 4.2 0.025 107 ---- ----- --- Total Inferred 20.7 0.025 525 ------------------------------------------------------------------------- Notes: (1) This Mineral Resource estimate was prepared by Mr. Kurt Breede, P.Eng., who is an independent Qualified Person, and is effective July 14th, 2010. (2) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. (3) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category. (4) The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005. (5) This estimate was prepared using an inverse distance interpolated block model and reported within an interpreted wireframe of the mineralized envelope at a 0.015opt Au (or 0.5 g/tonne Au) limit and excludes all blocks with a grade below 0.001 opt Au. The cutoff grade of 0.015 opt Au was selected as the basis on which the two Zones were modelled in the geological interpretation, and considered the parameters that would likely determine the economic viability of an open pit mining operation at Moss Lake. These included likely mine dilution, metallurgical recoveries, operating costs and a gold price of US$900/oz (at an exchange rate of US$1:C$1.10), (6) The resource estimate extends to a depth of 870 feet which is deemed a practical cutoff to maintain reasonable stripping ratios in a surface mining operation.
Management of Moss Lake believes the pragmatic application of blasthole grade control techniques on a bench by bench basis offers potential to realize better grades in an eventual mining operation. Table 2 demonstrates the cut-off grade sensitivity of Moss Lake Mineral Resource estimates.
Table 2 - MOSS LAKE MINERAL RESOURCES CUTOFF GRADE SENSITIVITY ------------------------------------------------------------------------- Main Cutoff Zone QES Zone Total Contained Grade (million Au (million Au (million Au Au (opt) Tons) (opt) Tons) (opt) Tons) (opt) ('000 oz) ------------------------------------------------------------------------- Indicated 0.001 12.5 0.023 27.8 0.029 40.3 0.027 1,107 0.010 9.3 0.029 25.1 0.032 34.3 0.031 1,069 0.015 7.2 0.034 21.7 0.035 28.8 0.035 998 0.020 5.0 0.041 17.0 0.040 22.0 0.040 881 Inferred 0.001 16.5 0.025 4.2 0.025 20.7 0.025 525 0.010 13.2 0.030 3.8 0.027 17.0 0.029 500 0.015 10.1 0.035 3.1 0.030 13.3 0.034 454 0.020 8.0 0.041 2.0 0.035 10.0 0.040 397 -------------------------------------------------------------------------
The Moss Lake deposit consists of the Main and QES zones (Figure 1). Fracture-controlled and disseminated pyrite mineralization are accompanied by sericite and hematite alteration hosted by a suite of intermediate to syenitic sills near the south contact of the Moss Lake Syenite Stock. Gold grade distribution, host rocks and alteration patterns evoke an Archean Porphyry Model.
The mineralized material extends for 8,500 feet of strikelength and remains open at depth. The resource estimate is restricted to a depth of 870 feet from surface.
A 1,000 foot long gap exists between the Main and QES zone defined by limited previous drilling. This area offers potential to increase resources with further rigorous drilling.
The updated resource estimate includes 15 drill holes completed in 2008 in order to validate historical data and refine the resource models. This work updates a previous report completed in 2006 (www.sedar.com - Technical Report, November 27, 2006, Moss Lake Gold Mines Ltd.).
The independent "Qualified Persons" for the 43-101 compliant Mineral Resource Estimate are Richard W. Risto, P.Geo and Kurt Breede, P.Eng. of Watts, Griffis and McOuat Limited. This press release was prepared by George Mannard, P.Geo, "Qualified Person" and President of Moss Lake in consultation with the aforementioned independent "Qualified Persons".
Moss Lake Gold Mines Ltd. is a 56% owned subsidiary of Wesdome Gold Mines Ltd. (WDO-TSX). It trades on the TSX-Venture Exchange under the symbol "MOK" and has 45.2 million shares issued and outstanding.
For further information: George Mannard, P.Geo, President or Shelly John, Manager, Investor Relations, 8 King St. East, Suite 1305, Toronto, ON, M5C 1B5, Phone: 416-360-3743, Fax: 416-360-7620, Email: [email protected], Website: www.mosslakegold.com
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