Seafield Resources Drills 114.7 m at 1.89 g/t Au, Including 10.6 m at 11.97 g/t Au at its Miraflores Deposit in the Quinchia District, Colombia
TORONTO, ONTARIO -- (Marketwire) -- 06/19/12 -- Seafield Resources Ltd. ("Seafield" or "the Company") (TSX VENTURE: SFF) is pleased to announce further results from the ongoing 5,000-metre diamond drill program at the Company's Miraflores Deposit ("the Deposit") in the Quinchia District, Department of Risaralda, Colombia. The infill drilling program continues to return moderate to high grade mineralization in significant intervals. The Company aims to gain more confidence on the high grade veins identified within the Miraflores breccia pipe to further delineate its resource as it moves its project towards feasibility level.
Highlights:
-- Drill hole QM-DH-33 intersected 114.7 m of 1.89 g/t Au, including 10.6 m
of 11.97 g/t Au;
-- QM-DH-33 was drilled from southeast to northwest of the Miraflores
breccia pipe as part of Seafield's infill drilling program aimed at
improving the confidence in the Deposit's current resource. This drill
hole confirms the vertical extension of mineralization previously
intersected in drill hole QM-DH-32A (194 m at 1.57 g/t Au, including 26
m at 3.86 g/t Au and 6 m at 11.04 g/t Au, press released on June 7,
2012), 50 metres below of QM-DH-33.
-- QM-DH-33 also confirms the extension and continuity of high grade
mineralization intercepted 80 metres north in drill hole QM-DH-03 (449 m
at 1.29 g/t Au, including 10 m at 2.87 g/t Au and 23.95 m at 9.18 g/t
Au, press released December 2, 2010).
Details:
Seafield's Miraflores Deposit is situated in the Company's 100%-owned, 6,757-hectare, Quinchia Gold Project. Miraflores is a low sulphidation epithermal deposit located in Colombia's mineral- prolific Mid-Cauca gold belt. The Deposit's mineralization is characterized by a hydrothermal breccia pipe with free gold associated with cement materials (the matrix) and high-grade structures where gold is associated with zinc, lead, copper and iron. At surface, the breccia pipe has a drill-tested diameter of 250 metres by 280 metres. The breccia pipe widens and remains open at depth with a drill-tested vertical extent of 600 metres.
The Deposit currently hosts a NI 43-101 compliant Measured and Indicated resource of 77.8 million tonnes averaging 0.8 g/t Au for contained gold of 1.9 million ounces and an Inferred resource of 5.5 million tonnes averaging 0.6 g/t Au for 103,043 ounces of contained gold. A 0.3 g/t Au cut-off grade was used for the estimate as reported in the Company's press release on January 31, 2012.
Miraflores presents robust economics as indicated in a Preliminary Economic Assessment ("PEA") on the Deposit that was completed by SRK Consulting in Denver on April 23, 2012. The indicated economics for the Deposit include a pre-tax IRR of 50%, an NPV (8%) of $249 million and a payback period of 1.8 years. SRK considers that portions of the Miraflores gold deposit are amenable to open pit mining, while other portions are amenable to underground mining methods. The proposed mine development in the PEA was prepared to best fit Seafield's corporate strategy focused on a medium sized operation that results in solid value accretion (as measured by NPV), moderate capital usage, and manageable environmental and social programs.
20.29 million tonnes ("Mt") of materials extracted over a 14-year mine life will comprise of 6.97 Mt at 1.38 g/t Au in open pit mining (years 1-8), 5.0 Mt at 2.27 g/t Au in underground mining (years 1-10) and 8.32 Mt at 0.43 g/t Au in stockpile processing (years 10-14). At an initial throughput rate of 4,000 tonnes per day, an annual production of 71,000 ounces at a below-industry average cost of $524 per ounce of gold, the PEA was completed using a gold price per ounce of $1,500 and a recovery rate of 90% (See Company's press release dated March 26, 2012). The PEA is preliminary in nature and contains mineral resources that are not mineral reserves and do not have demonstrated economic viability. All of the Company's technical reports are available on SEDAR and the Company's website.
The assay reported in this press release represents the results from one diamond drill hole, which accounts for 550 m of a total 3,242 m drilled since January 2012 (See Figure 1).
"We are pleased that our ongoing infill drilling program continues to confirm the continuity of high-grade vein structures within Miraflores," commented Cesar Lopez, Seafield's President and CEO. "Seafield will be completing its current phase of drilling over the next quarter and begin our preparation to commence our underground drill program at the Deposit. We look forward to providing our shareholders with a steady flow of news going forward."
QM-DH-33 (See Figure 2) was completed as part of Seafield's infill drilling program at Miraflores. The Company's ongoing 5,000-metre drill program is aimed at further verifying the geometry and continuity of the high-grade structures found within the breccia. All information from the current drill program will be used to develop a more robust geological model for Miraflores' resource at the feasibility level.
Table 1 below summarizes the results of diamond drill hole QM-DH-33:
Table 1 - Drill Results:
From To Interval Au
Drill Hole (m) (m) (m) (g/t)
----------------------------------------------------------------------------
QM-DH-33 31.9 39.2 7.3 0.20
and 104.3 177.9 73.6 0.64
and 185.9 300.6 114.7 1.89
including 233.0 243.6 10.6 11.97
and 322.6 345.6 23.0 0.74
and 351.6 383.2 31.6 1.40
and 388.9 407.0 18.1 0.56
and 461.1 468.5 7.4 0.38
Note: Gold grades reported are cut to 20 g/t Au for the interval 185.9 to 300.6. Hole QM-DH-33 includes a sample of 26.7 g/t Au over 2.00 m and a sample of 47.5 g/t Au over 2.00 m. Only continual intervals of mineralization above 6 metres with a cut-off grade of 0.2 g/t Au are reported.
QM-DH-33 was drilled from a collar outside of the southeastern portion of the breccia pipe and was drilled to the northwest, intersecting 114.7 m at 1.89 g/t Au, including 10.6 m at 11.97 g/t Au. This drill hole confirms the continuity and geometry of high grade mineralization in the veins and matrix inside the breccia. A previous drill hole, QM-DH-32A (press released on June 7 2012), intercepted 194 m at 1.57 g/t Au, including 26 m at 3.86 g/t Au and 6 m at 11.04 g/t Au, 50 metres below of QM-DH-33 confirming further vertical continuity of mineralization within the deposit. QM-DH-33 also confirmed the horizontal continuity of higher grade mineralization found 80 m north of QM-DH-03 (press released, December 2, 2010), which intercepted 449 m at 1.29 g/t Au, including 10 m at 2.87 g/t Au and 23.95 m at 9.18 g/t Au.
To view Figure 1 - Plan View of Miraflores Deposit, please visit the following link: http://media3.marketwire.com/docs/sff0619fig1.pdf.
To view Figure 2 - Cross Section of Miraflores Deposit, please visit the following link: http://media3.marketwire.com/docs/sff0619fig2.pdf.
Review by Qualified Person, Quality Control and Reports
Tom Henricksen, Consulting Geologist of Seafield Resources Ltd., is a qualified person as defined by National Instrument 43-101 and prepared or reviewed the preparation of the scientific and technical information in this press release with respect to the assay results from the drilling program. Dr. Henricksen is a Registered Professional Geologist in the State of Wyoming, USA (Membership # PG-3069) a professional association and designation recognized by the Canadian regulatory authorities. Dr. Henricksen verified the data disclosed in this release, including the sampling, analytical and test data underlying the information contained in this release. Verification included a review and validation of the applicable assay databases and reviews of assay certificates.
The core samples were split by rock saw, and half of the core was sampled. Core samples were prepared by SGS laboratory in Medellin and were assayed at the SGS laboratory in Lima, Peru. Gold was analyzed by fire assay on a 30 gram sample with atomic adsorption spectrophotometer (AAS) finish. Samples above 5.0 g/t Au were repeated by fire assay on a 30 gram sample with gravimetric finish. Multi-elements were analyzed by inductively coupled plasma mass spectroscopy (ICP-MS) following multi-acid digestion. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.
For additional technical information on the Miraflores Deposit, please refer to the Company's technical report (the "Technical Report") entitled "Technical Report, Seafield Resources Ltd., Quinchia Project, Quinchia District, Republic of Colombia" dated January 31, 2012, prepared by Scott E. Wilson, C.P.G., of Scott E. Wilson Consulting, Inc., available on SEDAR at www.sedar.com and on the Company website at www.sffresources.com.
About Seafield Resources Ltd.
Seafield Resources Ltd. (TSX VENTURE: SFF) is a mineral exploration company currently focused on advancing its Miraflores Gold Deposit towards feasibility level. Seafield's 100%-owned 6,757-hectare Quinchia Gold Project is located in the Department of Risaralda of Colombia. SRK Consulting Inc's (Denver) Preliminary Economic Assessment on the Miraflores Deposit indicates robust economics with a pre-tax internal rate of return of 50% and a pre-tax net present value (8%) of $249M (see corporate PEA presentation at http://bit.ly/MFeL7q). Miraflores currently has a NI 43-101 compliant Measured and Indicated resource estimate of 1,925,542 ounces gold at 0.8 g/t Au and an Inferred resource estimate of 103,043 ounces gold at 0.6 g/t Au. Additionally, the Company has a NI 43-101 compliant resource estimate for its Dosquebradas Deposit, also part of the Quinchia Gold Project, with an Inferred resource estimate totalling 920,772 ounces gold at 0.5 g/t Au. Seafield Resources Ltd. trades its shares on the Toronto Venture Exchange (TSX-V) under the symbol SFF and in the United States using CUSIP 81173R101. For more details on the Company, please visit www.sffresources.com.
Forward-Looking Statement
This news release includes certain "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward-looking statements.
Neither 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:
Seafield Resources Ltd.
David MacMillan
Investor Relations
(416) 361-3434 ext. 202
dmacmillan@sffresources.com
www.sffresources.com