Sanatana Announces Maiden Resource Estimate for the Watershed Property
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 15, 2015) - Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) announces that a maiden Mineral Resource estimate has been completed for the Watershed Property. The Mineral Resource was classified using Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves and was prepared in accordance with CIM generally accepted "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. The Mineral Resource is reported in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
The Mineral Resource estimate incorporates assay results on mining claim 3011820 from 25 drill holes totaling approximately 9,000 metres (see Sanatana's news releases dated February 9, 2012, March 1, 2012, April 20, 2012, and May 15, 2013) and was completed by Caracle Creek International Consulting Inc. ("Caracle Creek"). The Mineral Resource estimate, based on an open pit scenario, comprises an Inferred Resource of 4.3 million tonnes grading 1.22 grams of gold per tonne for 168,700 contained ounces, at a cut-off grade of 0.3 grams of gold per tonne (see Table 1 below).
| Table 1: Mineral Resource Estimate, Watershed Property, Ontario | ||||
| Effective Date: August 17, 2015 | ||||
| Classification | Cut-off Grade g/t Au | Tonnage (tonnes) | Gold Grade g/t Au | Contained Au (ounces) |
| Inferred | 0.3 | 4,300,000 | 1.22 | 168,700 |
| Notes: | |
| 1. | CIM definitions were followed for classification of Mineral Resources. |
| 2. | Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. |
| 3. | All tonnage figures were rounded to the nearest 10,000. All grade figures were rounded to two decimal places. |
| 4. | Au ounces were rounded to nearest 100. |
| 5. | High grade assays were capped at 17 g/t. |
| 6. | 0.3 g/t cut-off was determined from benchmarking of similar projects within the area. |
| 7. | Specific gravity (SG) values were interpolated into the block model to calculate tonnage using sample pulp SG data. |
Peter Miles, Chief Executive Officer of Sanatana, stated: "We are pleased to deliver this inferred resource estimate. Sanatana is now considering whether to form a 50/50 or a 51/49 joint venture with Trelawney Augen Acquisition Corp (TAAC), a wholly-owned subsidiary of IAMGold Corp.. In order to earn the extra 1% Sanatana is required to prepare and deliver to TAAC a 'pre-feasibility study' (as that term is defined in the underlying option and joint venture agreement) by March 23, 2016. We have incurred approximately $4,365,000 in excess work costs on the Watershed Property to date and we will assert that such excess work costs should be credited to Sanatana's contribution to the first work program after formation of the joint venture. In either scenario (50/50 or 51/49), we will assert that TAAC will be required to contribute to the first work program of the joint venture in an amount equal to any bona fide excess work costs made by Sanatana."
Watershed Property
The Watershed Property is located halfway between Timmins and Sudbury in Northern Ontario and is currently held 50% by Sanatana and 50% by Trelawney Augen Acquisition Corp. ("TAAC") (a wholly-owned subsidiary of IAMGold Corp.) pursuant to an option and joint venture agreement between the parties (the "Option and JV Agreement").
Sanatana has spent approximately $9,365,000 on exploration of the Watershed Property to date. Under the terms of the Option and JV Agreement, Sanatana was only required to spend $5,000,000 to earn its 50% interest. Once the joint venture between Sanatana and TAAC (the "JV") is formed under the Option and JV Agreement, any excess work costs (as defined by the Option and JV Agreement) will be credited to Sanatana's contribution to the first work program after the formation of the JV. Sanatana has until March 23, 2016 to complete the exercise of its option to acquire the additional 1% interest in the Watershed Property or to form the JV with TAAC based on current ownership (50% Sanatana / 50% TAAC).
Mineral Resource Estimate
The Mineral Resource estimate is based on the results of 25 drill holes totaling approximately 9,000 metres drilled on mining claim 3011820 over two phases of drilling: 9 holes drilled October 2011 - January 2012 and 16 holes drilled December 2012 - March 2013. The drill hole sample assays are capped at 17 g/t Au and composited into 1 metre lengths. Three dimensional wireframes (solid bodies) representing the gold mineralized areas were constructed using geological data and a cut-off of 0.3 Au g/t and used to constrain the tonnage and grade estimation. Gold grades and sample densities were then interpolated using anisotropic inverse distance into 5 metre by 5 metre by 2.5 metre blocks. Inferred resources were estimated to a depth of 300 metres below surface based on benchmarking against similar projects on adjacent properties in order to satisfy the CIM requirement of "reasonable prospects for economic extraction".
Technical Information and Quality Control Notes
Caracle Creek has reviewed the exploration practices and the resultant geological database used to complete the inferred mineral resource estimate reported herein, and has expressed the opinion that it is satisfied that the work carried out by Sanatana has been conducted in a manner consistent with generally recognized industry best practices and that the exploration data is sufficiently reliable for the purpose of supporting a mineral resource estimate.
Qualified Persons
The mineral resource estimate was completed by Caracle Creek in accordance with CIM Estimation of Mineral Resource and Mineral Reserves Best Practice Guidelines and using the latest CIM Definition Standards for Mineral Resources and Mineral Reserves, and reported in accordance with NI 43-101 requirements. Drill hole data and sample assay quality control was compiled and reviewed by Julie Selway, Ph.D, P.Geo, Principal Senior Geologist with Caracle Creek, a qualified person independent of Sanatana for the purposes of NI 43-101. The mineral resource estimate was prepared by Jason Baker, P.Eng., Senior Mine Engineer associate with Caracle Creek, a qualified person independent of Sanatana for the purposes of NI 43-101. Mr. Baker has also reviewed and approved the contents of this news release. A supporting NI 43-101 Technical Report will be posted on SEDAR at www.sedar.com on or before October 30, 2015.
The information in this news release was prepared under the supervisions of Troy Gill, BSc. MAIG, Exploration Manager for Sanatana. Mr. Gill is a Qualified Person for the purposes of NI 43-101 and has reviewed and approved the technical information disclosed in this news release.
About the Company
Sanatana Resources Inc. is a Canadian mineral exploration and development company focused on its Watershed Property in Ontario. Sanatana entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire up to 51% of the Watershed Property consisting of 46 mining claims totalling approximately 19,006 acres and located within the townships of Yeo, Chester, Neveille and Benneweis. As at November 28, 2012, Sanatana exercised its first option and is the legal and beneficial owner of 50% of the Watershed Property. Sanatana has until March 23, 2016, to exercise its right to acquire a further 1% in the Watershed Property.
In June 2012, IAMGold Corp. completed its acquisition of Trelawney Mining and Exploration Inc. and became the sole indirect shareholders of TAAC. In 2013, Sanatana expanded the Watershed Property by acquiring, for the sole benefit of Sanatana and TAAC, a 20% interest in three additional mining claims located in Yeo and Chester Townships, Ontario. In addition to the Watershed Property, Sanatana also has exploration property in Saskatchewan. With an experienced management team and board of directors, the Company has the ability required to identify, develop and fund economic mineral properties. Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX VENTURE:STA).
Peter Miles, President and Chief Executive Officer
Cautionary Statement Regarding "Forward-Looking" Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "plans", "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
Sanatana Resources Inc.
Mr. Peter Miles
President and Chief Executive Officer
604-408-6680
investor@sanatanaresources.com
www.sanatanaresources.com