Alacer Gold announces a 10% Measured and Indicated Resource increase for Higginsville Gold Operations
TORONTO, Aug. 29, 2011 /CNW/ --
TORONTO, Aug. 29, 2011 /CNW/ - Alacer Gold Corp ('Alacer' or the
'Company') [TSX:ASR, ASX:AQG] announces an updated Mineral Resource
estimate for its Higginsville Gold Operations in Australia. The
Measured and Indicated Resource has increased by 10% to 1.33 million
ounces (inclusive of reserves), as detailed in Table 1 below.
__________________________________________________________________________________________
| Minerals Resource for Higginsville Operations as at July 1, 2011 |
|__________________________________________________________________________________________|
| | | | Measured & | |
| | Measured | Indicated | Indicated | Inferred |
|______________|__________________|__________________|__________________|__________________|
| | | Au | Au | | Au | Au | | Au | Au | | Au | Au |
|Asset / |Tonnes|Grade| Ozs |Tonnes|Grade| Ozs |Tonnes|Grade| Ozs |Tonnes|Grade| Ozs |
|Project | (kt) |(g/t)|(koz)| (kt) |(g/t)|(koz)| (kt) |(g/t)|(koz)| (kt) |(g/t)|(koz)|
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Trident |1,647 | 4.3 | 226 |3,213 | 5.2 | 539 |4,860 | 4.9 | 765 | 586 | 3.9 | 74 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Chalice | | | |1,250 | 4.6 | 184 |1,250 | 4.6 | 184 | 336 | 4.4 | 48 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Fairplay Area | 12 | 4.7 | 2 |2,696 | 1.9 | 168 |2,708 | 1.9 | 169 | 263 | 2.9 | 25 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Palaeochannels| | | |1,203 | 2.1 | 81 |1,203 | 2.1 | 81 | 121 | 1.8 | 7 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Lake Cowan | | | |1,773 | 1.6 | 92 |1,773 | 1.6 | 92 | 56 | 1.1 | 2 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Other | 194 | 0.7 | 4 | 434 | 2.6 | 36 | 628 | 2.0 | 40 | 923 | 1.7 | 51 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Total |1,853 | 3.9 | 232 |10,570| 3.2 |1,099|12,422| 3.3 |1,332|2,285 | 2.8 | 207 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
Table 1: Mineral Resources for the Higginsville Gold Operation as at
July 1, 2011. Rounding differences will occur. Resource methodology
and cut-off grades are summarised in the Technical Procedural Section
below.
Exploration continues successfully to more than replace the ounces mined
with the Higginsville Measured and Indicated Resource now totaling 12.4
million tonnes at 3.3g/t gold, containing 1.33 million ounces. The new
Mineral Resource has been estimated after the depletion of 495,000
ounces (3.6 million tonnes at 4.3g/t gold) from mining the Trident,
Fairplay and Vine deposits up to the July 2011 resource estimate date.
Following the mining of over 484,000 ounces of gold from the Trident
orebody, the Measured and Indicated Resource for Trident now stands at
4.9 million tonnes at 4.9g/t gold for 765,000 ounces. A portion of the
recently discovered Helios zone is now included in the Trident resource
for the first time.
The majority of the remaining Higginsville Measured and Indicated
Resources are from:
-- the Chalice deposit that totals 1.3 million tonnes at 4.6g/t
gold for 184,000 ounces; and
-- the Fairplay Area (which includes the Vine and Two Boys
deposits) that totals 2.7 million tonnes at 1.9g/t gold for
169,000 ounces.
The Chalice Mine has recently been dewatered and infill drilling from
underground of the current Chalice resource will commence soon.
The previous (July 2010) Higginsville Mineral Resource is provided below
in Table 2.
__________________________________________________________________________________________
| Minerals Resource for Higginsville Operations as at July 31, 2010 |
|__________________________________________________________________________________________|
| | | | Measured & | |
| | Measured | Indicated | Indicated | Inferred |
|______________|__________________|__________________|__________________|__________________|
| | | Au | Au | | Au | Au | | Au | Au | | Au | Au |
|Asset / |Tonnes|Grade| Ozs |Tonnes|Grade| Ozs |Tonnes|Grade| Ozs |Tonnes|Grade| Ozs |
|Project | (kt) |(g/t)|(koz)| (kt) |(g/t)|(koz)| (kt) |(g/t)|(koz)| (kt) |(g/t)|(koz)|
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Trident |1,804 | 4.8 | 279 |2,575 | 6.1 | 507 |4,379 | 5.6 | 786 |1,353 | 3.5 | 153 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Chalice | | | | 799 | 5.5 | 140 | 799 | 5.4 | 140 | 520 | 3.1 | 52 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Fairplay Area | | | |1,795 | 1.8 | 102 |1,795 | 1.8 | 102 |1,803 | 1.8 | 107 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Palaeochannels| | | |1,203 | 2.1 | 81 |1,203 | 2.1 | 81 | 121 | 1.8 | 7 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Lake Cowan | | | | 768 | 2.1 | 51 | 768 | 2.1 | 51 | | | |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Other | 194 | 0.7 | 4 | 434 | 2.6 | 36 | 628 | 2.0 | 40 | 923 | 1.7 | 51 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
|Total |1,998 | 4.4 | 283 |7,574 | 3.8 | 917 |9,572 | 3.9 |1,200|4,720 | 2.4 | 370 |
|______________|______|_____|_____|______|_____|_____|______|_____|_____|______|_____|_____|
Table 2: Mineral Resources for the Higginsville Gold Operation as at
July 31, 2010. Rounding differences will occur.
Source: NI 43-101 Technical Report of the Mining Operations and
Exploration Tenements of Avoca Resources Limited, Western Australia,
dated Dec 15, 2010.
All resource numbers quoted in this release are reported inclusive of
reserves.
A reserve update based on the July 2011 resource is in progress and will
be announced in due course.
Edward Dowling, President and CEO of Alacer stated 'It is very pleasing
that after producing more than 160,000 ounces of gold since July 2010,
we have been able to increase the Higginsville Measured and Indicated
Resource by 10%. With our systematic exploration approach and
substantial on-going drilling program, we remain very confident we can
continue to increase Higginsville's resource base so that this
treatment hub achieves our targeted gold production rate of
approximately 200,000 ounces per annum.'
About Alacer
Alacer is a leading intermediate gold company with operations in both
Australia and Turkey.
Australia
Alacer has three operating gold mines in Australia, namely the
Higginsville and South Kalgoorlie operations; and a 49% interest in the
Frog's Leg underground mine. The South Kalgoorlie operations and the
Frog's Leg interest were acquired following the successful takeover of
Dioro Exploration NL, which was completed in March 2010. The Australian
operations are targeting 280,000 ounces of gold in 2011.
Turkey
Alacer is recognized as a leader in exploration and development in
Turkey and, with the start-up of Çöpler, will soon be among Turkey's
leading gold producers. Çöpler is 95% owned by Alacer and 5% by Lidya
Mining (formerly known as Çalık Mining, see Anatolia News Release,
August 13, 2009). Initial plans at Çöpler are to produce approximately
1.42 million leachable ounces of gold at costs consistent with the
lower end of industry standards. Average annual production is expected
to be about 175,000 gold ounces. Additional production expansion from
the sulfide gold reserve is expected to add 2.25 million ounces. A
detailed feasibility study is underway. In addition, Alacer holds a
significant pipeline of prospective gold and base metal projects.
Alacer currently has 278.0 million common shares issued and outstanding,
297.1 million fully diluted.
Technical Procedural Information
The information in this report which relates to Exploration Results and
the Mineral Resources is based on information compiled by Chris Newman,
a full-time employee of Alacer, who is a Member of the Australasian
Institute of Mining and Metallurgy and a Member of the Australian
Institute of Geoscientists. Mr Newman has sufficient experience which
is relevant to the style of mineralization and type of deposit under
consideration and to the activity which is being undertaking to qualify
as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' and a qualified person pursuant to National
Instrument 43-101 of the Canadian Securities Administrators. Mr Newman
consents to the inclusion in the report of the matters based on this
information in the form and context in which it appears.
Exploration drilling and sampling in Australia utilized surface NQ2
diamond core, RC and aircore. Drill core was sawn half core and
submitted for assaying. Dependent on the ore body geometry, core
sample lengths were constrained by geology, alteration or structural
boundaries and sample lengths varied between a minimum of 0.5m to a
maximum of 1.3m. Reported results from RC samples were collected on 1
metre riffle split intervals and from 4m composite samples using
aircore. RC and diamond drill samples were assayed with fire assay
with an AAS finish on 50g charges via Genalysis Laboratories in
Kalgoorlie and Perth or by pulverise and leach (PAL1000B) with an AAS
finish on 500 - 750g charges at the Higginsville Intertek laboratory.
Aircore samples were analysed via low level aqua regia digestion at
Ultratrace at Kalgoorlie and Perth. Internationally accepted standards
and blanks were utilised to check on laboratory assay quality control.
Trident Resource Estimation Methodology
Drillhole data used in the Trident resource comprised predominantly
underground and surface diamond holes, with some RC and underground
sludge holes used. All diamond drillhole collar locations were surveyed
by contract mine surveyors. Drillholes were routinely surveyed downhole
using techniques ranging from Eastman single shot and Reflex single
shot cameras to gyroscopic downhole surveying equipment. Drillhole
spacing for the majority of the resource ranged from 10m x 15m to 60m x
60m.
Drill core was logged (lithology, alteration, structure, mineralization,
veining) in detail then stored and validated in electronic databases.
Following logging, the drill core was sawn half core and submitted for
assaying. Dependant on the orebody geometry and size, sample lengths
were constrained by geology, alteration or structural boundaries with
lengths varying between 0.5m to 1.1m.
Gold analysis of the samples was undertaken using a combination of 1kg
LeachWell, 500g Pulverise and Leach (PAL) and 50g Fire Assay. Industry
standard reference material and blanks were utilised to check on
laboratory assay quality control.
Assays were composited to 1 metre lengths and assessed for appropriate
top-cuts. The Athena domains were assigned various top-cuts (Athena 10
& 40 - 250g/t gold; Athena 30 - 350g/t gold and Athena 50 - 90g/t
gold); the Artemis domains were assigned a top-cut of 100g/t gold;
Apollo, Western Zone, Eos, E-Veins, Poseidon and Eastern Zone domains
were assigned a top-cut of 50g/t gold; and Helios domains were assigned
a top-cut of 25g/t gold. All top-cuts were based on composited
drillhole data.
A bulk density of 2.89g/cm3 was applied to all domains hosted within
gabbro and mafic assemblages and the waste rock, based on a total of
453 samples taken throughout the deposit. The laminated quartz lodes
(Athena 10, 30 and 50) had a 2.7g/cm3 bulk density applied to these
domains.
The grade estimation methods included ID2 (Western Zone, Eastern Zone,
Eos, E-Veins, Poseidon and Athena 40), ID0 (Athena 10, 30 and 50),
assigned grades based on development mapping and sampling (Athena 10,
30 and 50) and Ordinary Kriging (Apollo). Parent block sizes were set
at 10m *, 10m (y) and 10m (z), with the minimum sub-cell size
dependant on the lode thickness.
A lower cut-off grade of 1.0g/t gold was applied to the thicker
orebodies (Western Zone, Apollo, Athena 40, Helios) whereas a 2.0g/t
gold lower cut-off grade was applied to the thinner Athena, Eos and E
Veins, Eastern Zone, Poseidon and Artemis orebodies to reflect
historical stope-mining methodologies.
The resource estimate has been classified based on data density, data
quality, confidence in the geological interpretation and confidence in
the estimation.
Chalice Resource Estimation Methodology
Drillhole data used in the Chalice Resource comprised predominantly
surface and minor underground diamond holes. All of Alacer's diamond
drill-hole collar locations were surveyed by contract mine surveyors
using a RTK GPS. Where identified, historical drillhole collar
locations were surveyed using a RTK GPS, with no reliable records
available for the collar survey methods for the historical holes.
Alacer drillholes were routinely surveyed downhole using gyroscopic
surveying equipment. No reliable data exist for the downhole surveying
technique utilised for the historic drillholes. Drillhole spacing for
the majority of the resource ranges from 20m x 20m to 40m x 40m.
Drill core was logged (lithology, alteration, structure, mineralization,
veining) in detail then stored and validated in electronic databases.
Following logging, the drill core was sawn half core and submitted for
assaying. The sample lengths were constrained by geology, alteration
or structural boundaries with lengths varying from 0.4m to 1.0m.
Gold analysis of the samples was undertaken using a combination of
predominantly Fire Assay (20 - 50g charges), Aqua Regia and 1kg
LeachWell. Industry standard reference material and blanks were
utilised to check on laboratory assay quality control, although no
reliable QA/QC data was located for the sampling completed prior to
Alacer.
Assays were composited to 1 metre lengths and assessed for appropriate
top-cuts. The Atlas domain was assigned a top-cut of 25g/t gold; the
Olympus domains were assigned a top-cut of 60g/t Gold; with the Olympus
Hangingwall and Footwall domains assigned various top-cuts if there
were extreme values present in the dataset. All top-cuts were based on
composited drill-hole data.
A bulk density of 3.03g/cm3 was applied to the Olympus domains;
3.03g/cm3 to the Atlas domain; 3.02g/cm3 to the unmineralized
amphibolites; and 2.61g/cm3 to the felsic units, based on 69 samples
through the various domains/lithologies at Chalice.
The grade estimation method used was ID2 for all the mineralized
domains. Parent block sizes were set at 10m *, 10m (y) and 10m (z),
with the minimum sub-cell size set at 1.5m *, 2.5m (y) and 2.5m (z).
A lower cut-off grade of 2.0g/t Gold was applied to the main domains
(Atlas and Olympus) whereas a 3.0 g/t gold lower cut-off grade was
applied to the thinner hangingwall and footwall domains to reflect
likely mining and haulage scenarios.
The resource estimate has been classified based on data density, data
quality, confidence in the geological interpretation and confidence in
the estimation.
Other Higginsville Resources Estimation Methodology
Drillhole data used in the Vine, Fairplay and Lake Cowan Resources
comprised predominantly surface RC and minor surface diamond holes.
All of Alacer's drillhole collar locations were surveyed by contract
mine surveyors using either a differential or RTK GPS. There are no
reliable records available for the collar survey methods for the
historical holes. Alacer drillholes were routinely surveyed downhole
via an Eastman Single Shot survey camera at 30m intervals. No reliable
data exist for the down-hole surveying technique utilised for the
historic drillholes. Drillhole spacing for the majority of these
resources vary between 10m x 10m and 40m x 40m.
For the RC holes, logging of lithology, alteration, mineralization and
veining was undertaken on 1 metre composited RC samples. The diamond
drill core was logged in detail for lithology, structure, alteration,
mineralization and veining. All logs have been stored and validated in
electronic databases.
RC samples were collected as 1 metre composites via an on-rig cyclone
and splitter assembly and then submitted for assaying. After logging,
the drill core was sawn half core and submitted for assaying, with the
sample lengths constrained by geology, alteration or structural
boundaries with lengths varying from 0.4m to 1.0m.
Gold analysis of the samples was undertaken using a combination of 500g
Pulverise and Leach (PAL), Fire Assay (20 - 50g charges), Aqua Regia
and 1kg LeachWell. Industry standard reference material and blanks were
utilised to check on laboratory assay quality control, although no
reliable QA/QC data was located for the sampling completed prior to
Alacer.
Assays were composited to 1 metre lengths and assessed for appropriate
top-cuts. For Vine, the 550 domain was assigned a top-cut of 250g/t
gold with a top-cut of 20g/t gold assigned to the samples in the 650
domain. For the Fairplay region, a top-cut of 40g/t gold was assigned
to the main Fairplay domains, 25g/t gold for the Fairplay East domains
and 60g/t gold for the Fairplay North domains. For the three deposits
at Lake Cowan (Josephine, Napolean and Louis) a top-cut of 15g/t gold
was applied. All top-cuts were based on composited drillhole data.
As a significant proportion of these deposits are situated near the
surface, various bulk densities were applied based on the degree of
weathering and the host rock type. For the lodes contained within
completely weathered material, a bulk density of 1.6g/cm3 was applied,
for the transitional saprock zone a bulk density of 2.2g/cm3 was
applied and for fresh rock a bulk density of 2.85g/cm3 was applied. A
bulk density of 2.7g/cm3 was applied to the quartz-rich domains at
Vine. Bulk density testwork at Vine and Fairplay confirmed the
validity of these bulk densities for the various zones in the
weathering profile as well as the fresh rock.
The grade estimation method varied between the three deposits depending
on the drill density and style of mineralization. At Vine, a rolling
average (ID) method was adopted for the nuggetty gold distribution of
the 550 lode, with an ID2 method utilised for the remaining Vine
mineralized domains. At Fairplay an ID2 interpolation method was used
for all the domains. The Lake Cowan resource estimate utilised a
mixture of ID2 and Ordinary Kriging for the various lodes. Parent
block sizes were set at 10m *, 10m (y) and 10m (z) for all the
resources at Fairplay and Lake Cowan, with the minimum sub-cell size
set at 1.0m *, 1.0m (y) and 0.5m (z). For Vine the parent block
sizes were set at 5m *, 5m (y) and 5m (z), with the minimum sub-cell
size set at 1.0m *, 1.0m (y) and 1,0m (z).
A lower cut-off grade of 0.8g/t gold was applied to the domains at Lake
Cowan whereas a 0.5g/t gold lower cut-off grade was applied to the Vine
and Fairplay resources to reflect likely mining, haulage and processing
scenarios.
The resource estimate has been classified based on data density, data
quality, confidence in the geological interpretation and confidence in
the estimation.
Resource estimates for the Higginsville Paleaochannels, Pipeline, Two
Boys and 'Other' resources in Table 1 remained unchanged.
Cautionary Statements
Certain statements contained in this report constitute forward-looking
information, future oriented financial information, or financial
outlooks (collectively 'forward-looking information') within the
meaning of Canadian securities laws. Forward-looking information may
relate to this report and other matters identified in Alacer's public
filings, Alacer's future outlook and anticipated events or results and,
in some cases, can be identified by terminology such as 'may', 'will',
'could', 'should', 'expect', 'plan', 'anticipate', 'believe', 'intend',
'estimate', 'projects', 'predict', 'potential', 'continue' or other
similar expressions concerning matters that are not historical facts
and include, but are not limited in any manner to, those with respect
to proposed exploration, communications with local stakeholders and
community relations, status of negotiations of joint ventures,
commodity prices, mineral resources, mineral reserves, realization of
mineral reserves, existence or realization of mineral resource
estimates, the timing and amount of future production, timing of
studies and analysis, the timing of construction of the proposed mines
and process facilities, capital and operating expenditures, economic
conditions, availability of sufficient financing, exploration plans and
any and all other timing, exploration, development, operational,
financial, economic, legal, social, regulatory and political factors
that may influence future events or conditions. Such forward-looking
statements are based on a number of material factors and assumptions,
including, but not limited in any manner, those disclosed in any other
Alacer filings, and include exploration results and the ability to
explore, the ultimate determination of mineral reserves, availability
and final receipt of required approvals, titles, licenses and permits,
sufficient working capital to develop and operate the mines, access to
adequate services and supplies, commodity prices, ability to meet
production targets, foreign currency exchange rates, interest rates,
access to capital markets and associated cost of funds, availability of
a qualified work force, ability to negotiate, finalize and execute
relevant agreements, lack of social opposition to the mines, lack of
legal challenges with respect to the property or the Company and the
ultimate ability to mine, process and sell mineral products on
economically favorable terms. While we consider these assumptions to be
reasonable based on information currently available to us, they may
prove to be incorrect. Actual results may vary from such
forward-looking information for a variety of reasons, including but not
limited to risks and uncertainties disclosed in other Alacer filings at
www.sedar.com and other unforeseen events or circumstances. Other than as required by
law, Alacer does not intend, and undertakes no obligation to update any
forward-looking information to reflect, among other things, new
information or future events.
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For further information on Alacer Gold, please contact:
Edward Dowling or Lisa Maestas - North America at 1-303-292-1299
Rohan Williams - Australia at 618-9226-0625
Roger Howe - Australia at 61-405-419-139