/C O R R E C T I O N From Source - Moneta Porcupine Mines Inc./
Please note that this release revises and replaces c2046 sent at 8:30 ET today. Correct copy follows:
Moneta's Golden Highway Gold Resources Increases to 1.1 Million Ounces Indicated Plus 3.2 Million Ounces Inferred
TIMMINS, ON, Oct. 25, 2012 /CNW/ - Moneta Porcupine Mines Inc. (TSX: ME) (OTC: MPUCF) (XETRA: MOP) ("Moneta") announces an updated National Instrument 43-101 ("NI 43-101") mineral resource estimate on its 100% owned Golden Highway Project located east of Timmins, Ontario (Canada).
Ian C. Peres, President and CEO of Moneta commented, "The step out drilling undertaken in 2012 on our Golden Highway Project was a tremendous success with our exploration team adding 1.1 million inferred ounces at a discovery cost under $5 per ounce. We look forward to the next stage of development including the results from the upcoming Preliminary Economic Assessment and ongoing drilling to expand the resource."
Highlights, using US$1,200/ounce gold, include:
- In-Pit and Out of Pit Mineral Resource Estimate:
- Indicated: 1,091,000 ounces (31.1 Mt at 1.09 g/t Au); plus
- Inferred: 3,204,000 ounces (83.3 Mt at 1.20 g/t Au);
- The Mineral Resource Estimate increased by 55% to 3.2 million ounces inferred from the previous resource estimate of 2.1 million ounces (December 1, 2011 press release);
- The original Southwest Zone pit dimensions have been optimized in this resource update;
- Resource remains open in all directions for further expansion.
The Company also announces that a Preliminary Economic Assessment ("PEA"), based on this updated resource estimate, is expected to be completed in Q4 2012.
The following table summarizes the NI 43-101 Mineral Resource Estimate in the Indicated and Inferred resource categories:
| TABLE 1: MINERAL RESOURCE ESTIMATE (1), (2), (3), (4), (5), (6), (7), (8), (9), (10) | |||||||||
| Mining | Cutoff Grade (g/t) | INDICATED | INFERRED | ||||||
| Tonnes | Au (g/t) | Au (oz) | Tonnes | Au (g/t) | Au (oz) | ||||
| In Pit | 0.37 | 30,000,000 | 1.01 | 977,000 | 71,627,000 | 0.86 | 1,971,000 | ||
| Out of Pit | 2.00 | 1,080,000 | 3.29 | 114,000 | 11,684,000 | 3.28 | 1,233,000 | ||
| Combined* | 0.37 / 2.00 | 31,080,000 | 1.09 | 1,091,000 | 83,311,000 | 1.20 | 3,204,000 | ||
* Open pit mineral resources are reported at a cut-off grade of 0.37 g/t gold and underground mineral resources are reported at a cut-off grade of 2.00 g/t gold.
- The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated Mineral Resources will be converted into Mineral Reserves.
- Assay composites were capped up to 35 g/t based on geo-statistical support for each zone.
- A modeling cut-off grade of 0.25 g/t Au was only used to create a three-dimensional wireframe for subsequent interpolation.
- A block model was created with 10x10x10 metre blocks using inverse distance cubed grade interpolation.
- Indicated Mineral resources were classified with a 35 metre search radius and a minimum of two drill holes.
- A bulk density of 2.79 t/m³ was used for all tonnage calculations.
- A gold price of US$1,200/oz and an exchange rate of US$1.00 = C$1.00 was utilized in the Au cut-off grade calculations of 0.37 g/t for open pit and 2.0 g/t for out of pit.
- Open pit mining costs were assumed at C$1.60/t for mineralized material, C$1.60/t for waste rock and C$1.25/t for overburden, while out of pit mining costs were assumed at C$59/t, with process costs of C$11/t, G&A of C$2.00/t, and a 93% metallurgical recovery.
- Totals in the table may not sum due to rounding.
Tables of varying cutoff grade sensitivity for in-pit and out of pit gold resources follow:
| TABLE 2: IN-PIT RESOURCE CUTOFF SENSITIVITY | ||||||||
| Cutoff Grade (g/t) | INDICATED | INFERRED | ||||||
| Tonnes | Au (g/t) | Au (oz) | Tonnes | Au (g/t) | Au (oz) | |||
| 0.80 | 12,708,000 | 1.65 | 673,000 | 26,853,000 | 1.37 | 1,185,000 | ||
| 0.60 | 18,518,000 | 1.35 | 802,000 | 41,724,000 | 1.13 | 1,516,000 | ||
| 0.50 | 22,672,000 | 1.20 | 875,000 | 52,702,000 | 1.01 | 1,708,000 | ||
| 0.40 | 28,144,000 | 1.05 | 954,000 | 66,689,000 | 0.89 | 1,910,000 | ||
| 0.37 | 30,000,000 | 1.01 | 977,000 | 71,627,000 | 0.86 | 1,971,000 | ||
| 0.35 | 31,160,000 | 0.99 | 990,000 | 74,954,000 | 0.83 | 2,010,000 | ||
| 0.30 | 34,853,000 | 0.92 | 1,029,000 | 84,038,000 | 0.78 | 2,105,000 | ||
| TABLE 3: OUT OF PIT RESOURCE CUTOFF SENSITIVITY | ||||||||
| Cutoff Grade (g/t) | INDICATED | INFERRED | ||||||
| Tonnes | Au (g/t) | Au (oz) | Tonnes | Au (g/t) | Au (oz) | |||
| 2.50 | 670,000 | 3.94 | 85,000 | 7,401,000 | 3.89 | 925,000 | ||
| 2.20 | 880,000 | 3.56 | 101,000 | 9,805,000 | 3.51 | 1,106,000 | ||
| 2.00 | 1,080,000 | 3.29 | 114,000 | 11,684,000 | 3.28 | 1,233,000 | ||
| 1.80 | 1,277,000 | 3.07 | 126,000 | 13,889,000 | 3.06 | 1,367,000 | ||
| 1.50 | 1,789,000 | 2.67 | 153,000 | 18,801,000 | 2.69 | 1,626,000 | ||
In addition to the Southwest Zone, Windjammer South and 55 Zones, the current resource estimate now includes the Gap Zone, Windjammer Central and Windjammer North. There has been 21,000 metres of drilling completed since the previous resource estimate and 19,375 metres of historical drilling on these three new gold zones.
Please click on the following link to view the Block Model and Optimized Pit Shells:
http://www.monetaporcupine.com/i/pdf/2012-10-25_NRM1.pdf
The Golden Highway Project includes Timiskaming sediments along banded iron formation with associated mafic to ultramafic volcanics that define 12 km of the Destor Porcupine Fault Zone in Michaud Township near Timmins, Ontario. Gold mineralization occurs in quartz and quartz-carbonate stockworks and discrete vein zones, all with variable ankerite, hematite and sericite alteration.
The mineral resource estimates were prepared by Eugene Puritch, P.Eng., Antoine Yassa, P.Geo., and Yungang Wu, P.Geo. of P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario, Independent Qualified Persons ("QP"), as defined by National Instrument 43-101. Mr. Puritch has reviewed and approved the contents of this news release.
About Moneta
Moneta holds a 100% interest in 5 core gold projects strategically located along the Destor Porcupine Fault Zone in the world class Timmins Camp with over 85 million ounces of past gold production. Moneta's land position is one of the largest after three gold producers including the highly prospective Golden Highway Project which covers 12 kilometers of a volcanic/sedimentary belt along the Destor Porcupine Fault Zone and hosts a NI 43-101 resource estimate of 1,091,000 ounces indicated (31.1 Mt at 1.09 g/t Au) plus 3,204,000 ounces inferred (83.3 Mt at 1.20 g/t Au) clustered within 4 kilometres. The Golden Highway Project hosts exceptional infrastructure including paved access roads, water, electricity, skilled labor force and nearby mills.
Moneta's public documents may be accessed at www.sedar.com. For further information on Moneta, please visit our website at www.monetaporcupine.com or email us at info@monetaporcupine.com.
This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements.
SOURCE Moneta Porcupine Mines Inc.
Ian C. Peres, President & CEO
416-579-3040 (Toronto)
705-264-2296 (Timmins)
iperes@monetaporcupine.com