Updated Mineral Resource Estimate Results in 50% Increase in Inferred Gold Ounces at Acadian's Fifteen Mile Stream Deposit
19.06.2012 | CNW
HALIFAX, June 19, 2012 /CNW/ - Acadian Mining Corporation ("Acadian" or the "Company") (TSX: ADA) (OTCQX: ADAIF) is pleased to announce the results of an updated NI 43-101 compliant mineral resource estimate for the Main Zone (Egerton-MacLean Zone) at its wholly owned Fifteen Mile Stream gold deposit. The estimate indicates 308,000 ounces of gold in the inferred category, with an average grade of 1.6 g/t Au at a cut-off of 0.7 g/t Au, compared with 202,000 ounces of gold (inferred) at an average grade of 1.7 g/t Au at a similar cut-off reported in a resource estimate competed in 2008 (Table 1)This updated resource for the Main Zone follows a modest drilling program completed in 2011, which included 19 drill holes totaling 2,532 metres within the resource area and sampling of un-sampled intervals from 10 drill holes completed during a 1980's drilling campaign. In total, 91 drill holes were utilized in the updated resource estimate, and modelling was constrained by a new three dimensional geological model.
The resource estimate was completed by Snowden Mining Industry Consultants Pty Ltd ("Snowden") and supervised by Dr Simon Dominy, Executive Consultant. Due to the stratigraphic control on mineralization and the complex folding of the deposit, the mineralized stratigraphy was unfolded prior to resource estimation. The method of estimation was ordinary kriging using a top cut of 50 g/t, a composite length of 1 metre, and a block size of 15 by 15 by 5 metres. Unfolding and estimation were undertaken using Datamine® software. Estimation parameters applied by Snowden differ from those used in the 2008 resource estimate, and a comparison of differences between the 2008 and current resource estimate are shown in Table 2. A Technical Report will be filed on SEDAR within 45 days.
Resources have been reported at a cut-off grade of 0.7 g/t Au for comparison with the previous estimate. However, a cut-off value of 0.5 g/t Au was reported by Atlantic Gold in an updated Definitive Feasibility Study for its neighbouring Moose River (Touquoy) deposit. The Touquoy deposit, located approximately 50 kilometres to the west, has a similar style and grade of mineralization as the Fifteen Mile Stream deposit. Conceptual mine plans for the Fifteen Mile Stream deposit could potentially be comparable to the proposed Moose River mine.
Table 1
| 2008 Resource Estimate Hudgtec Consulting | 2012 Resource Estimate Snowden | |||||
| Cut-off Au gtt Au | Tonnes | Grade* Au g/t Au | Ounces Au | Tonnes | Grade* Au g/t Au | Ounces Au |
| 0.5 | 4,897,425 | 1.4 | 218,841 | 8,300,000 | 1.3 | 347,000 |
| 0.7 | 3,800,000 | 1.7 | 202,000 | 6,000,000 | 1.6 | 308,000 |
| 1.0 | 2,764,775 | 1.9 | 169,484 | 4,422,788 | 1.8 | 261,513 |
*Grades rounded to nearest tenth
Table 2
| Hudgtec 2008 | Snowden 2012 | |
| Block Size | 5x5x5 metres | 15x15x5 metres |
| Method of Estimation | Inverse Distance | Ordinary Kriging |
| Top cut value | 17 g/t Au | 50 g/t Au |
| Composite length | 2 metres | 1 metre |
| Total number of samples | 1019 | 6441 |
| Mean Grade before top cut | 1.63 g/t Au | 1.15 g/t Au |
| Mean Grade after top cut | 1.27 g/t Au | 0.87 g/t Au |
Future Work Program
Further infill drilling is planned to improve the resource category from inferred to indicated status, and exploration drilling is planned to potentially expand the mineralized zones.
An extensive strike length measuring over 3 kilometres has been identified as having potential to host mineralization in the Fifteen Mile Stream area. Evaluation of potential resources at the Hudson Zone, located 700 metres to the west of the Main Zone, where similar mineralized stratigraphy exists on the same fold structure, is underway based on eight drill holes completed during 2011. It is anticipated that this data combined with data from drilling results in the 1980's could result in significant resources being identified at the Hudson zone.
Qualified Person
Dr Simon Dominy FAusIMM(CP), FAIG(RPGeo), Executive Consultant, Snowden, is a Qualified Person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release that relates to the updated mineral resource estimate. Richard Horne, M.Sc., P.Geo., Chief Geologist of Acadian, is a Qualified Person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.
Forward Looking Statements
Certain information regarding Acadian contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance, or other statements that are not statements of fact. Although Acadian believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Acadian cautions that actual performance will be affected by a number of factors, many of which are beyond Acadian's control, and that future events and results may vary substantially from what Acadian currently foresees. Discussion of the various factors that may affect future results is contained in Acadian's Annual Information Form dated March 29, 2012, which is available at www.SEDAR.com. Acadian's forward looking statements are expressly qualified in their entirety by this cautionary statement.
About the Corporation
Acadian is a Halifax, Nova Scotia, Canada based company with five advanced gold projects, all of which host National Instrument 43-101 compliant resources. The Corporation also owns barite properties on Cape Breton Island, Nova Scotia. Acadian's primary focus is centered on exploration and development of its core gold deposits in Atlantic Canada, namely the Fifteen Mile Stream and Beaver Dam Projects.
For additional information on Acadian's properties and activities, please visit our web site at: www.acadianmining.com.
No regulatory authority has approved or disapproved the contents of this news release.
Acadian Mining Corporation
Grant Ewing, President and Chief Executive Officer
(902) 444-7779 Toll Free: (877) 444-7774
mail@acadianmining.com
Halifax, Nova Scotia