Majestic Gold Again Increases Resources at Its Song Jiagou Mine
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/18/10 -- Majestic Gold Corp. (TSX VENTURE: MJS) ('Majestic') is pleased to announce the results of an updated resource estimate on its Song Jiagou Mine.
As part of the ongoing assessment on the Song Jiagou Mine, Wardrop Engineering Inc. ('Wardrop') has revised their previous resource estimate (NR 23 April, 2010) as a result of the revision to the contract mining costs (NR 30 September 2010) which allowed cut-off grades to be reduced from 0.40 g/t to 0.30 g/t and warranted a revision of the block model.
Subsequent to the initial resource estimate, Wardrop determined that rotating the block model perpendicular to drilling direction was the most favorable orientation to evaluate the deposit and to calculate the revised resource. The new cut-off grade and the re-orientation of the model significantly increased the overall size of the resource and the contained ounces of gold in both the inferred and indicated categories.
The revised resource is:
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Grade Au
Category Tonnes(i) (g/t)(ii) Contained oz Au
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Indicated 33,739,586 1.147 1,244,211
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Inferred 38,812,054 1.467 1,830,576
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(i)Calculations conducted using 0.30 g/t cut-off
(ii)Gold grades were capped at 40 g/t
The most significant changes from the previous estimate are:
-- Increase in Indicated tonnes by 35.34% to 33,739,586 tonnes
-- Increase in Indicated contained gold by 24.09% to 1,244,211 ounces
-- Increase in Inferred tonnes by 37.96% to 38,812,054 tonnes
-- Increase in Inferred contained gold by 7.48% to 1,830,576 ounces
The increase in the size of the resource from 53 to 72.5 million tonnes will very significantly reduce the strip ratios to be used as Majestic continues its engineering studies on the Song Jiagou mine. Wardrop will move forward now to re-evaluate a production pit design.
Majestic continues to work with Wardrop and its sister company, Tetra Tech (Beijing) Consultancy Company Limited, (both subsidiaries of Terta Tech Inc.) to complete a Preliminary Economic Assessment, concurrent with the required Chinese Geological and Engineering studies required to apply for increased production levels at Song Jiagou. The results of these studies will ultimately culminate in a Pre-feasibility report.
The geological and technical information contained in this news release has been reviewed and approved by Greg Mosher, P. Eng, of Wardrop Engineering, and Mike Hibbitts, P.Geo., who are qualified persons under the definitions established by National Instrument 43- 101.
On Behalf of the Board of Directors
MAJESTIC GOLD CORP.
Rod Husband, P.Geo, President
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
Neither the 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.
Contacts:
Majestic Gold Corp.
Investor Relations
(604) 681-4653 or 1-866-282-8398
info@majesticgold.net
www.majesticgold.net