Alpha Gold's Independent NI 43-101 Defines the Copper-Gold Canyon Creek Skarn
Deposit at Lustdust, BC
COQUITLAM, BC, June 23 /CNW/ - Alpha Gold Corp. (TSX-V: ALQ) today announced the Resource Estimate contained in the National Instrument 43-101 (NI 43-101) compliant technical report (the "Report") prepared by Ronald G. Simpson, PGeo, of GeoSim Services Inc., for the Canyon Creek Skarn (CCS) zone of Alpha's 100%-owned Lustdust property, road accessible in north-central British Columbia.
"GeoSim's technical analysis has defined not only Inferred Copper-Gold resources but also Indicated resources, together described as the Copper-Gold CCS Deposit along a strike length of 500 metres," reported Richard Whatley, CEO of Alpha Gold Corporation.
The CCS Deposit, continuous along 500 metres, represents only a short section of what the Company expects to prove up to be a connected mineralized system after conducting some 15,000 metres of diamond drilling this summer along an additional 5.5 km of strike length. This CCS Deposit may be analogous to the mineralized system that Alpha's geological model, built from another 200+ diamond drill holes of data, contends to connect the old Takla Silver Mine in the southeast through the Number 1, 2, 3 zones and the 4B manto zone to the CCS Deposit, Skarn Extension and North Skarn along a north-northwest trend.
See Figure 1 for a graphic representation of the geological model at http://www.chfir.com/client_images/LustdustCurrentZones2009.jpg.
The GeoSim report estimates that the Copper-Gold CCS Deposit has:
- an Indicated Resource containing 49,094 ounces of gold, 31.1 million
lbs of copper and 1,149,807 ounces of silver; and
- a further Inferred Resource containing 108,410 ounces of gold,
58.0 million lbs of copper and 2,027,956 ounces of silver,
- Using a cutoff grade of 1.5% copper equivalent.
Table 1. Copper-Gold Canyon Creek Skarn Deposit, Lustdust Property
June 2010 Preliminary Resource Estimate using cutoff grade of 1.5% Cu equivalent cutoff; assuming underground extraction using narrow-vein mining methods
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Category of Tonnes Copper Gold Silver Copper
Resources Equiv.
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Indicated 910,000 1.56% 1.678 g/t 39.3 g/t 2.72%
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14,196 tonnes or
31.3 million lbs 49,094 oz 1,149,807 oz
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Inferred 1,965,000 1.34% 1.716 g/t 32.1 g/t 2.46%
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26,331 tonnes or
58.0 million lbs 108,410 oz 2,027,956 oz
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Note 1: Mineral resources that are not reserves do not have demonstrated economic viability. An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource but has a lower level of confidence than a Measured Mineral Resource.
Note 2: Copper equivalent calculations use metal prices based on a two-year trailing average of US metal prices, being US$2.75/lb for copper, US$945/oz for gold, and US$14.75/oz for silver. Adjustment factors to account for differences in relative metallurgical recoveries of the constituents will depend upon completion of definitive metallurgical testing. The following equation was used to calculate copper equivalence: Cu Eq = Cu + (Au x 0.501) + (Ag x 0.008).
Note 3: A definitive cutoff grade for reporting of mineral resources will depend upon the results of a future Preliminary Assessment.
The specific breakdown of Mineral Resources above varying cutoff grades is presented in Tables 2 and 3.
Table 2. Indicated Mineral Resources at varying copper cutoff grades for Copper-Gold Canyon Creek Skarn Deposit, Lustdust Property
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INDICATED
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Cutoff Cu
Equiv (%) Tonnes Cu % Au g/t Ag g/t Cu Eq %
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1.00 1,253,000 1.33 1.426 33.0 2.31
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1.25 1,049,000 1.46 1.565 36.6 2.54
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1.50 910,000 1.56 1.678 39.3 2.72
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1.75 748,000 1.69 1.831 42.6 2.95
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2.00 593,000 1.85 2.016 46.9 3.24
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Table 3. Inferred Mineral Resources at varying copper cutoff grades for
Copper-Gold Canyon Creek Skarn Deposit, Lustdust Property
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INFERRED
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Cutoff Cu
Equiv (%) Tonnes Cu % Au g/t Ag g/t Cu Eq %
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1.00 3,124,000 1.12 1.366 25.4 2.01
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1.25 2,477,000 1.24 1.536 28.8 2.24
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1.50 1,965,000 1.34 1.716 32.1 2.46
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1.75 1,543,000 1.46 1.904 35.3 2.70
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2.00 1,154,000 1.59 2.132 39.1 2.97
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The CCS Deposit lies within, and intercalated throughout, carbonate rich stratigraphy, in particular limestone and siliceous phyllite. The CCS skarn, the component of the mineralization, is present as numerous steeply, southwesterly dipping, north-northwesterly striking lenses with an apparent northwesterly plunge. The deposit, as evidenced by the resource grades, is rich in Copper, Gold and Silver, and it is within these lenses a strong continuity of mineralization is observed that remains open to the northwest, the southeast, down dip and down plunge.
The resource estimate is based on analytical data from 96 core holes completed between 1997 and the end of 2009.
Block grades for Cu, Au and Ag were estimated by the inverse distance weighting method to the third power. Grade estimation was constrained by wireframe shapes representing the mineralized skarn zones with a minimum width of 1.5 m. Block size was 6 x 6 x 6 m with sublocking to 1.5 x 1.5 x 1.5 m. A minimum of four composites were required to estimate a block grade and a maximum search distance of 150 m was used. Samples from at least two drill holes were also required. Grades were capped prior to compositing at 8% Cu, 14 g/t Au and 300 g/t Ag in order to limit the influence of outliers.
Blocks were classified as 'Indicated' if at least five composites from post-2004 drill holes were within 150 m of a block centroid and the closest composite was within 33 m. All other estimated blocks were classified as inferred.
The full and final Report will be filed on www.sedar.com, as required, within 45 days.
The Company's Qualified Person as defined by National Instrument 43-101, Richard Whatley, MEng, PEng, has reviewed and approved the contents of this news release.
Alpha Gold's market capitalization to this date is approximately $5 million.
About GeoSim Services Inc.
Headed by President Ronald G. Simpson, B.Sc., P.Geo. (B.C.), GeoSim Services Inc. has supplied independent resource estimate consulting services to the mineral industry since 1993. Before that Mr. Simpson's geological career spanned 18 years working for Cominco Ltd., Bethlehem Copper Corporation, E&B Exploration, Mascot Gold Mines Ltd. and Homestake Canada Ltd.
About Alpha Gold Corporation
Alpha Gold is a mineral exploration company whose 100%-owned, royalty-free, Lustdust Property is advantageously situated with nearby road and rail access in north-central British Columbia. Lustdust consists of 17 contiguous mineral claims covering 8,560 hectares and contains twelve known mineralized areas, including: the Copper-Gold Canyon Creek Skarn Deposit(1) and North Skarn(2) (heretofore called the Skarn Extension); the Glover Stock with Porphyry Molybdenum(3); the Number 1(4), 2(5) and 3(6), 4B(7), East(8) and GD(9) zones of base and precious metal rich sulphide manto; the Bralorne Takla Mercury Mine(10); the exploratory tunnels of the Takla Silver Mine(11) (BCMINFILE 093N009), a developed prospect that contains high grade gold-silver veins; and potentially Carlin-style mineralization in the Valley(12) zone. There are approximately 45.8 million shares issued and outstanding, 47.5 million fully diluted. Shares are listed on the TSX Venture Exchange under the symbol "ALQ".
-- As per Richard Whatley, MEng, PEng, CEO, President and Director, Alpha Gold Corporation
Should you wish to receive Company news via email, please contact [email protected] and specify "Alpha Gold News" in the subject line.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
%SEDAR: 00005818E
For further information: please visit www.alphagold.bc.ca or contact: CHF Investor Relations, Cathy Hume, CEO, T: 416-868-1079 x231, E: [email protected]
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