Updated Mineral Resource Estimate Confirms Gold Resources of 6.6 Million Ounces Measured and Indicated and 3.2 Million Ounces Inferred at Marmato
TORONTO, ONTARIO -- (Marketwire) -- 01/06/11 -- Medoro Resources Ltd. (TSX: MRS) is pleased to announce a new CIM compliant mineral resource estimate for its Marmato Project containing 6.6 million ounces of gold in the measured and indicated categories and an additional 3.2 million ounces of gold in the inferred category at a cut off grade of 0.3 g/t (see table below). In addition, there is an estimated 37 million ounces of silver in the measured and indicated categories and a further 22 million ounces of silver in the inferred category. The update was completed by SRK Consulting (UK) Ltd (SRK).
'This updated resource estimate, which only comprises material considered by SRK to have potential to be amenable to open pit mining, further proves that Marmato is a world-class deposit and is an important step forward in the Company's plan to develop a large-scale, bulk-tonnage gold mine' said Serafino Iacono, Interim CEO of Medoro.
GOLD SILVER
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Tonnes Grade Ounces Grade Ounces
(at 0.3 g/t cut off) (mm) (g/t) (mm) (g/t) (mm)
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Measured Mineral Resource 34 1.0 1.1 8.2 9
Indicated Mineral Resource 192 0.9 5.5 4.6 28
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Measured and Indicated Mineral Resource 226 0.9 6.6 5.1 37
Inferred Mineral Resource 116 0.9 3.2 5.9 22
The sensitivity of this mineral resource to a change in cut-off is shown in the table below.
GOLD SILVER
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Tonnes Grade Ounces Grade Ounces
(at 0.4 g/t cut off) (mm) (g/t) (mm) (g/t) (mm)
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Measured Mineral Resource 26 1.2 1.0 8.6 7
Indicated Mineral Resource 144 1.1 5.0 5.1 23
------ ------ ------ ------ ------
Measured and Indicated Mineral Resource 170 1.1 6.0 5.6 31
Inferred Mineral Resource 83 1.1 2.8 7.2 19
The above estimate is based on over 127,500 metres of diamond drilling and cross-cut samples. In addition to 379 historical drill holes, the updated estimate reflects results from 105 drill holes of a definition drilling program planned for 2010/11. A further 60 drill holes have been completed since the cut-off date for this estimate and another 237 drill holes are planned for 2011, the majority of which will be underground drill holes aimed at upgrading inferred mineral resources to the measured and indicated categories.
In addition, SRK has been retained to carry out a Preliminary Economic Assessment, commencing immediately, to look at the various economic considerations related to developing a large-scale open-pit gold-silver operation at Marmato. This study is expected to be released in the first quarter of 2011. A revised mineral resource estimate, incorporating a significant portion of underground drilling results will be released in the following quarter and provide the basis for detailed engineering and development studies.
This resource estimate updates the mineral resource estimate previously disclosed on March 8, 2010. The complete National Instrument 43-101 compliant Technical Report will be filed within 45 days and will available on the company's website and www.sedar.com.
Qualified Person:
Ben Parsons, Senior Resource Geologist with SRK Consulting (UK) Ltd. prepared the Marmato Project mineral resource estimate. For detailed information on the key assumptions, parameters and methods used to estimate the mineral resources, along with other information about the properties, please refer to the Technical Report.
About Medoro Resources Ltd.
Medoro Resources Ltd. is a gold exploration, development and mining company with a primary focus on developing a large-scale, open-pit gold-silver mine at Marmato in Colombia. Medoro also has a 5% interest in the former Frontino Gold Mines properties in Colombia with an option to increase its interest to 50%. Elsewhere, Medoro holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela as well as interests in gold exploration properties in Mali.
Additional information on Medoro Resources Ltd. can be found on the Company's website at www.medororesources.com and by reviewing the Company's profile on SEDAR at www.sedar.com.
This news release contains 'forward-looking information', which may include, but is not limited to, statements with respect to the future financial or operating performance of Medoro and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'believes' or variations (including negative 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 involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Medoro to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Medoro disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Contacts:
Medoro Resources Ltd.
Greg DiTomaso
Investor Relations
(647) 436-2592