- Measured and Indicated Resources of 4,029,000 ounces of gold AND Inferred Resources of 1,000,000 ounces of gold -
TORONTO, March 21, 2012 /CNW/ - Volta Resources Inc. ("Volta Resources" or the "Company") (TSX: VTR) announces that an updated NI 43-101 compliant Mineral Resource estimate has been completed for the Kiaka Gold Project which is located 140 kilometers south-east of Ouagadougou in Burkina Faso. The updated Mineral Resource estimate was prepared by SRK Consulting UK Limited (Cardiff) ("SRK") in collaboration with Volta's personnel. The estimate has been reported according to CIM Standards and will be supported by a NI43-101 independent report which will be published in due course.
The new and updated resource estimate for the Kiaka Central Area deposit, which does not include any results from the newly discovered, high grade Kiaka South Area (see press release dated February 14, 2012), is summarized in Table 1 below:
Table 1: Mineral Resources at the Kiaka deposit as at March 20th, 2012
|SRK Mineral Resource Statement, Kiaka Gold Project 20 March 2012|
|Type||Category||Tonnes (Kt)||Au (g/t)||Metal Au (Kg)||Metal Au (Koz)|
|Measured and Indicated||55,970||1.36||76,230||2,451|
|Measured and Indicated||61,440||0.80||49,100||1,578|
|Measured and Indicated||117,420||1.07||125,300||4,029|
|Mineralised Bands based on a cut-off grade of 1 Au (g/t) within mineralised wireframe|
|Halo Mineralisation based on a cut-off grade of 0.6 Au (g/t) within mineralised wireframe|
|All figures are rounded to reflect the relative accuracy of the estimate and the assigned categories|
"Phase 3 drilling in the Kiaka Central Area has achieved the objective of increasing the Measured and Indicated Category resources by 33% to over 4 million ounces of gold, with a further 1 million ounces in the Inferred Category. The deposit is proving to be geologically and geostatistically consistent, delivering results in line with (or even exceeding) expectations", stated Kevin Bullock, Volta Resources President & CEO.
He went on to say "For the third time in less than two and a half years, the Volta Resources team has yet again delivered an updated resource estimate on time and on budget and I commend them on their efforts. The current resource contained within a single open pit, with favorable strip ratio, geometry and metallurgical recoveries, provides a very robust basis for the pre-feasibility study currently underway. A maiden resource, due by early Q3, from the recent high grade discovery at the Kiaka South Area (not included in this resource update), located only 750m south of the current resource, could significantly enhance the quality of Kiaka Project in the future."
This mineral resource estimate is based on approximately 113,000m of diamond and RC drilling: 35 drill holes for 8,083m from Randgold, the previous owners, and 660 drill holes for 104,509m from Volta Resources ongoing drilling campaign. In comparison to 2011, an additional 295 drill holes have been incorporated, representing an additional 39,937m of drilling and 41,365 new assays, representing a 56% increase in the size of the assay database.
Phase 3 drilling has now defined the Kiaka deposit to >1.5km along strike (illustrated in plan and longitudinal section in Figures 1 and 2) and down to an average depth of approximately 500m below surface (illustrated in cross section in Figure 3). The additional drilling continues to confirm that higher grade "mineralized bands" ranging between 5 metres and 70 metres wide extend with good continuity for 100 metres to 400 metres along strike and 50 metres to 200 metres down dip. These "mineralized bands" are hosted within a lower grade "halo mineralization" within a structural corridor that is 100 metres to 260 metres wide. As in previous resource estimates for Kiaka, SRK has elected to report resources from the "mineralized bands" at a cut-off grade of 1.0 g/t gold and the "halo mineralization" at a cut-off grade of 0.6 g/t gold.
Phase 3 drilling has resulted in further increasing the confidence in the geological model, leading to a 10% increase in Measured Resources to 1,135,000 ounces. Measured and Indicated Resources have increased by 33% from 3,018,000 ounces to 4,029,000 ounces, with Inferred Resources now standing at 1,000,000 ounces.
The estimate is based on a combination of diamond core and RC chip samples which were fire assayed for gold by ALS, SGS and BIGS laboratories in Ouagadougou. Field rejects from the mineralized intersections of the Randgold drill holes have been re-sampled and included in Volta Resources assay database; comprehensive QAQC has demonstrated that sample preparation and laboratory performance for all drilling campaigns provided assays which are fit for the purpose of this estimate.
The grade estimation domains comprise the wide KMZ corridor and flanking KHZ and KFZ structures that were wire-framed using an approximate 0.3 g/t shell. A block model was then generated using block dimensions of 5 metres x 20 metres x 10 metres, into which up to 24 x 3 meter composite samples per block were used for estimation employing an ordinary kriging routine. All composites have been capped where appropriate.
SRK has considered sampling density and distance from samples in order to classify the Mineral Resource according to the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves (December 2005) as required by National Instrument 43-101. The Mineral Resource is constrained within a Whittle open pit shell, with SRK electing to use market consensus long term gold price forecasts from over 30 contributors, to which has then applied an uplift, resulting in a long term optimistic gold price of 1400 USD/ oz; this approach is in line with other gold producing companies' reporting methods. For the other Whittle input parameters, SRK has briefly reviewed typical mining, processing, administrative costs for a range of gold mines in the West African region in order to nominate marginal operating costs of USD 11.85 per tonne for processing and G&A as well as $1.62 per tonne for mining assuming a 12 Mtpa CIP operation. Further, assuming a process recovery of 89.8% based on metallurgical testwork undertaken by Volta Resources. In order to be consistent with previous resource estimates for Kiaka, a cut off grade of 0.6 g/t has been applied in reporting the resource. SRK conclude that the cut-off grade could possibly be lowered to marginal cut-off in the order of 0.4g/t Au, when assuming the Whittle input parameters outlined above.
Table 2: Sensitivity of SRK's block model within the Whittle open pit, at a range of cut-off grades from 0.0g/t to 1.4g/t
|Grade - Tonnage Table, Kiaka Deposit 20 March 2012|
|Measured & Indicated||Inferred|
|Cut-off||Tonnes||Au Grade||Metal Au||Metal Au||Tonnes||Au Grade||Metal Au||Metal Au|
This updated resource model will now be included in the pre-feasibility study that is being completed for the Kiaka Central Area by independent consultants, Wardrop-Tetratech.
Volta Resources is continuing with a Phase 4 drilling program at Kiaka. The main focus of Phase 4 is to rapidly define a resource at the recently discovered high grade targets in the Kiaka South Area, located on strike and less than 750m southwest of the Kiaka Central Area. In addition, other local targets already identified within a 3 kilometer radius of the currently defined deposit will be tested. Volta Resources has also advanced several regional targets on the 184 km2 Kiaka property to the stage where initial scout drilling is imminent.
A copy of the full technical report that accompanies the NI 43-101 resource statement will be posted on Volta Resources website and on SEDAR within 45 days.
Pursuant to National Instrument 43-101, the qualified person responsible for the technical data provided in this press release is Mr. Ben Parsons, a Senior Consultant (Resource Geology); he is a full time employee of SRK Consulting (UK) Ltd. Mr. Parsons is a member of the AusIMM with Chartered Professional status. Mr. Parsons has reviewed and approved the contents of this news release.
Volta Resources has a portfolio of quality gold exploration projects in Burkina Faso and Ghana, both mining-friendly West African jurisdictions with proven world-class gold deposits. Volta Resources will focus on fast-tracking its flagship Kiaka Gold Project (now with NI-43-101 compliant resources including 117.42 million tonnes @ 1.07 g/t Au for 4,029,000 ounces in the Measured and Indicated categories and 29.96 million tonnes @ 1.00 g/t Au for 1,000,000 ounces in the Inferred category [current press release]) towards a development decision, aiming to complete a Feasibility Study in Q1, 2013. The recent acquisition of properties around Kiaka have provided Volta Resources with an extensive ground position along the highly prospective Markoye Fault Corridor in an important emerging gold province. Volta Resources will also advance exploration at its Gaoua Copper-Gold Project, Nassara Gold Project and Titao Gold Project, all located in Burkina Faso.
Forward Looking Information Caution:
This press release presents "forward-looking statements" within the meaning of Canadian securities legislation that involve inherent risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Volta Resources to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to international operations, risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management and officers of Volta Resources believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Volta Resources does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
PDF with caption: "Figure 1: Level Plan at 200m AMSL of the Kiaka Central Deposit". PDF available at: http://stream1.newswire.ca/media/2012/03/21/20120321_C6442_DOC_EN_11382.pdf
PDF with caption: "Figure 2: Longitudinal Section of the Kiaka Central Deposit". PDF available at: http://stream1.newswire.ca/media/2012/03/21/20120321_C6442_DOC_EN_11383.pdf
PDF with caption: "Figure 3: Cross Section 5450N of the Kiaka Central Deposit". PDF available at: http://stream1.newswire.ca/media/2012/03/21/20120321_C6442_DOC_EN_11384.pdf
For further information:
For further information, please refer to our website www.Voltaresources.com or contact:
Kevin Bullock, P.Eng., President & CEO
Tel: (647) 388-1842
Fax: (416) 867-2298
Email: [email protected]
Andreas Curkovic, Investor Relations
Tel: (416) 577-9927