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Going,Going,Going up this morning
GMD RESOURCE CORP.'S DISCOVERY PROJECT - PROBABLE GEOLOGIC ORE
RESERVES, PROFITABLE OPEN PIT (1,787,750 OUNCES GOLD)
VANCOUVER, August 26 /CNW/ - At GMD's 100% owned Discovery Project
located 100 km north of Yellowknife, ongoing diamond drilling has identified
probable geologic ore reserves in excess of 10 million tons, at a grade of
0.174 ounces gold per ton. These reserves are located in the Ormsby Zone.
Based on operating costs of C$28.74 per ton (U.S. $150 per ounce) estimated
annual profits are C$45 million (U.S. $236 per ounce). In the Ormsby Zone,
probable geologic ore reserves are 1,787,750 ounces gold and possible ore
reserves are an additional 1,500,000 ounces gold. This provides a solid base
for the development of an open pit mine.
The Company is also very encouraged by surface reconnaissance and
structural geology north of the Ormsby Zone that have yielded economic grade
samples from trenches and exposed veins over a 700-foot strike. This supports
the Company's assessment of a major resource that extends over the full length
of the Discovery Project (see table on assays). The Discovery Shear Zone is a
meta-volcanic outcrop measuring 8,000 feet long by 600 feet wide. The entire
Discovery Shear Zone, including the Ormsby zone, has the same geophysics,
geochemistry, structure, lithology and quartz outcroppings. Approximately 15%
of the property has been explored to date.
Ormsby Zone
Two diamond drill rigs have concentrated drilling on a sulphide bearing
block that extends 400 feet (east/west) by 3,000 feet (north/south) and 1,100
feet deep. Geology and sample assays have shown that sulphides are present
over the full length of the diamond drill holes and ore values are present in
quartz veins with ore haloes around these veins. The average ore
mineralization in all holes is 13.7% of the length of the diamond drill hole,
giving a ratio of 6.3 to 1 (sulphide to ore). The Ormsby Zone is open in all
directions, north-south-east-west and at depth.
The initial 9 structural holes (NDM 16 to NDM 24) established the zone of
mineralization from 100 west to 300 east. Twenty-two ore definition holes
drilled on approximately 100-foot spacing (NDM 25 to NDM 27 and NDM 37 to NDM
58) have established the continuity of the zone from 500 north to 3,500 north,
a grade of 0.174 ounces gold per ton and a sulphide/ore ratio of 6.3 to 1.
This ratio will be used in an open pit mine design, a flexible mining system
that will profitably recover this resource. As stated above, probable geologic
ore reserves have been calculated in excess of 10 million tons at a grade of
0.174 ounces gold per ton.
Applying a grade factor of 12% to cover operating parameters, the mill
head grade will be 0.153 ounces per ton (0.174 x 0.88). Operating costs are
estimated at C$28.74 per ton.
GMD Economics US $/oz
------------- -------
Annual Tons Milled 992,080
Mill Grade (oz/ton) 0.153
Ounces/Year (at 90% Recovery) 136,609
Revenue/Year (Gold U.S. $386 at 1.39 Ex) C$73,296,412 $386
Annual Operating Costs ($28.74/ton) C$28,512,379 $150
Annual Profits (Before Taxes) C$44,784,033 $236
With the exception of hole NDM 41 which appears to have been drilled into
sediments, all 1996 diamond drill holes have intercepted multiple zones of
mineralization.
Surface reconnaissance and structural geology over the northern end of
the Ormsby Zone (1,260 north to 5,000 north) has made a new discovery which
yields economic grades from trenches and exposed veins (see table on assays).
Company geologists are currently extending this zone by mapping towards the
original Discovery Mine approximately 3,000 feet north.
Discovery II Zone
Nine holes, NDM 28 to NDM 36, were drilled in this zone. This zone will
be integrated into the overall development as the Ormsby zone extends
northward.
Gold Reserves/Ormsby Zone
The original probable geologic gold reserve of 79,800 ounces has been
increased to a probable geologic reserve of 1,787,750 ounces. As the Ormsby
Zone is open in all directions, the possible reserves are further estimated at
an additional 1,500,000 ounces gold. Other zones (85% of the property)
continue to be explored.
In conclusion, Management is exceptionally pleased with exploration
results and is encouraged by the overall potential of this property which is
progressing towards the original Discovery Mine, where further ore reserves
are known to exist.
SIGNIFICANT CHIP AND GRAB SAMPLES
Sample Type Northing Easting Gold (oz/ton)
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Grab samples: 1980 220 0.201
1820 196 0.439
1860 45 0.604
1880 50 0.718
1684 147 0.227
1650 155 2.661
1680 202 0.305
1690 201 0.114
1576 200 0.140
1580 180 0.398
1614 170 0.951
2075 220 0.139
2040 230 0.651
2089 258 0.278
Rock chip samples 1690-1695 200 0.355
1614 169 0.148
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DRILLING PROGRESS SUMMARY
Zone Total Footage Number of Holes
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Discovery Project 39,956 feet 53 holes
Discovery II 6,026 feet 9 holes
Ormsby 33,930 feet 44 holes
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BUSINESS/PHOTO EDITORS: A copy of GMD Resource Corp.'s map of the
Discovery Project is available by fax by calling Canada NewsWire Vancouver at
(604) 669-7764.
For further information: V.V. Jutronich, Vice-President, COO at (604) 662-3350 or 1-800-808-3350. E-mail:
gmdres(at)portal.ca. Internet: stockgroup.com
08:33e 26-AUG-96 |
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