Bullfrog Gold Receives Independent Resource Estimates at its Project in Nevada
GRAND JUNCTION, Colorado, June 27, 2017 /PRNewswire/ --
Bullfrog Gold Corp (OTCQB: BFGC) (the "Company" or "BFGC") is pleased to announce a base case, maiden resource estimate of 525,000 ounces of gold averaging 1.02 g/t on its Bullfrog Gold Project (Project) located 120 miles NW of Las Vegas Nevada. Table 1 summarizes resources in the Bullfrog and Montgomery-Shoshone ("M-S") deposits on lands controlled by the Company. Table 2 lists the main inputs used in these independently prepared estimates.
Table 1
Measured and Indicated Resources
Cutoff Mineral T Grade Gold Oz Grade Silver Oz Waste T W : Min.
Deposit Gold g/t Millions Gold g/t 000's Silver g/t 000's Millions Ratio
Bullfrog 1. Resources on BFGC controlled lands but pit limits not confined to BFGC lands
0.20 26.4 0.69 585 1.85 1,569 110 3.5
0.36 14.9 1.02 489 2.50 1,198 124 7.0
Bullfrog 2. Pit limits and resources within lands controlled by BFGC
0.20 12.0 0.63 239 1.63 623 41 2.9
0.36 5.5 1.03 186 2.42 433 49 7.5
M-S Pit limits and resources within BFGC controlled lands
0.20 1.4 0.84 39 3.48 162 11 7.8
0.36 1.1 1.00 36 4.02 146 11 10.1
Total Bullfrog 1. + M-S Measured + Indicated
0.20 27.8 0.70 624 1.93 1,731 121 4.3
0.36 16.0 1.02 525 2.60 1,344 135 8.4
Bullfrog 1. + M-S Inferred Resources
0.20 5.6 0.79 129 1.97 285
0.36 3.3 1.20 110 2.99 243
0.20-0.36 11.80 0.26 99 1.02 387
Table 2
Estimate Input Parameters
Parameter Input Unit
Mining Cost - M
& W 2.25 $/t
Processing Cost 6.00 $/t
General & Admin. 1.60 $/t
Refining Sales 0.05 $/t
Sell Cost 10 $/tr oz
Gold Recovery 72 %
Silver Recovery 20 %
Gold Price (3-yr
average) 1200 $/tr oz
Pit Slopes 45 degrees
Resource estimates are in place and do not include recoveries from a proposed downstream heap leach/processing operation. Of the combined M&I resource estimates, the measured components were approximately 9% in the Bullfrog deposit and 36% in the M-S deposit. The resource classifications herein are consistent with the policies and standards of Canadian National Instrument 43-101 ("NI 43-101").
The data base used for the estimates included 1,262 holes containing 155 miles of coring and drilling completed from 1983 through 1996 by Barrick Bullfrog Inc. ("Barrick") and its predecessors. Assaying was performed by several accredited laboratories. Tetra Tech, Inc. reviewed the data base in detail and found it to be of sufficient quality and quantity to estimate measured, indicated and inferred resources. A final NI 43-101 Technical Report with further information is scheduled for completion and posting on the Company's website by August 9, 2017.
Authors and Qualified Persons Statement
The resources were estimated by the Golden, Colorado office of Tetra Tech, a recognized global provider of engineering, technical and construction management services with particular expertise in the mining sector. The estimates were prepared in accordance with requirements of NI 43-101 Standards of Disclosure for Mineral Projects. The technical work, analysis and findings were completed or directly supervised by Rex Bryan, PhD, who is as an independent "Qualified Person" as defined by NI 43-101. Mr. Bryan has also reviewed and approved the information in this news release.
Management Discussion and Analysis
The input parameters in Table 2 are equivalent to an external cutoff grade of 0.36 g/t, the resources from which are planned to be crushed and heap leached. It is noted that the gold grade of 1.02 g/t proposed to be crushed compares favorably to a grade of 0.70 g/t or less for most other heap leach projects. An internal pit cutoff ranging between 0.20 to 0.36 g/t in this same pit shell provides an additional 99,000 ounces of gold averaging 0.26 g/t that is planned to be heap leached at a run-of-mine or uncrushed size. Thus, 624,000 ounces of measured and indicated resources grading 0.70 g/t are within this base case pit. With respect to pit slope layback constraints, the Company is in the process of consolidating all lands in the Bullfrog pit.
Extensive metallurgical test work has demonstrated that heap leach gold recoveries of more than 72% are achievable for a crush size of 80% minus 3/8-inch. A 49% recovery has also been achieved on uncrushed mineral. As many similar projects use gold cutoff grades of 0.15 g/t, approximately 40,000 additional ounces are within an internal cutoff range of 0.15 to 0.20 g/t. The Company may use a lower cutoff if and when justified by a future preliminary economic analysis. Also note that an additional 129,000 of inferred ounces are estimated on Company controlled lands using a 0.20 g/t gold cutoff.
For reference, the Company estimated in April 2016 a preliminary mineral inventory of 470,000 ounces grading 0.89 g/t using a nominal 0.3 g/t cutoff. In comparison, the M&I resources of 624,000 ounces represents a 33% increase in gold ounces. As the existing pit slopes are up to 52 degrees and stable after 20 years of no mining, the 45-degree input by TetraTech is conservative and provides upside in final pit designs. It is also noted that Barrick terminated all mining by the end of 1998 and mill production in early 1999 when gold prices were less than $300 per ounce. However, economic margins for gold mining in general are now much better, particularly with the application of low-cost heap leaching methods. Barrick also used gold cut-off grades of 0.5 g/t in the pits and 3.0 g/t in the underground mine.
President and CEO Dave Beling stated, "The new resource estimates provide an excellent platform to develop the Bullfrog and M-S gold deposits using low-cost and efficient heap leach technologies. The Bullfrog deposit is well defined and only requires minimal drilling to develop a final pit plan and test for resource expansions. Down dip extensions of vein and stock work mineralization below the M-S pit have very good potential for resource expansions but more drilling is required.
During our thorough study of the Barrick data base, we also identified several exploration targets up to 3 miles north, east and west of the current pits. As there has been no drilling on the project since late 1996 and with heap leach technology in mind, we look forward to drill testing high priority targets soon after receiving drill permit approvals".
About Bullfrog Gold Corp.
Bullfrog Gold Corp. is a Delaware corporation that initially acquired a strategic land position in the Bullfrog Mining District in 2011 and subsequently acquired from Barrick and others additional lands having established resources and good exploration potential. More information on the Company and its Project may be obtained from http://www.bullfroggold.com, or by emailing info@bullfroggold.com. David C. Beling, PE, President and CEO of Bullfrog Gold, and a non-independent Qualified Person as defined by NI 43-101, has reviewed the Tetra Tech estimates and prepared the management discussion and analysis in this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and information within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results and the timing thereof, the discovery and delineation of mineral deposits/resources/reserves, the potential for the identification of multiple deposits in the Project area, the potential for a low capex and/or opex heap leach mine operation, the potential for a production decision to be made, the potential commencement of any development of a mine following a production decision, the potential for any mining or production, the potential for additional resources to be located between certain of the existing deposits, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates are deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, significant increases in the cost of labor, materials, equipment and supplies required to develop and operate any mine, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest filings with the SEC. All of the Company's public disclosure filings may be accessed via http://www.sec.gov and readers are urged to review these materials with respect to the Company's mineral properties.
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM. United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. The term "contained ounces" is not permitted under the rules of SEC Industry Guide 7. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
Contact Information:
David Beling
PE, President, CEO & Director
+1-(970)628-1670