We'll try that release again with the use of 'fixed font'. Makes it a little easier to read.
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TRILLION RESOURCES INITIATES MAJOR EXPANSION AT NDARAMA
KANATA, ONTARIO--
Trillion Resources Ltd. has completed a pre-feasibility study for its 100%
owned Ndarama Mine project at Kwekwe, in central Zimbabwe.
The study, which was prepared by members of the Trillion Board of Directors,
with the Company's geological, engineering and mine production staff, details
a 10-year mine expansion plan to be undertaken in two phases.
The expansion program is based on an updated "gold reserve-resource" estimate
for the Ndarama property, as outlined in the following table. The resource
estimate has been calculated from the results of 50,000 metres of drilling
over the last 18 months. A gold price of US$300 per ounce is being used for
planning purposes.
NDARAMA PROPERTY GOLD RESERVE / RESOURCE ESTIMATE
Reserves Resource Total
Proven/Probable Indicated/Inferred
Tonnes g/T Ounces(1) Tonnes g/T Ounces(1) Tonnes g/T Ounces(1)
===========================================================================
Mine
Ford Pit
4 600 000 2.0 298 740 3 990 000 1.6 206 650 8 590 000 1.8 505 400
Mine
Ndarama-Futi
430 000 8.0 109 920 2 330 000 7.0 524 560 2 760 000 7.2 634 470
Mine
Broomstock
690 000 4.3 95 160 430 000 4.4 61 470 1 120 000 4.4 156 640
Mine
Taba-Mali
45 000 5.8 8 400 495 000 6.1 97 000 540 000 6.1 105 390
===========================================================================
TOTAL
5 765 000 2.8 512 220 7 245 000 3.8 889 680 13 010 000 3.4 1 401 900
(1) 1 Troy ounce Au = 31.104 grams
g/T = grams per tonne
Phase I, which is already under way and due for completion in October 1998,
will double mine production to 30,000 ounces per year. Capital costs are
US$4.5 million and cash operating costs are projected to be US$210 per ounce,
resulting in a payback period of 2 years. The key components of Phase I are:
* Doubling underground production to 200 tonnes per day from the Ndarama
- Futi Vein System and commensurate upgrade of the Ndarama Mill.
* Increasing production at the Ford Open Pit from 700 tonnes to 850 tonnes
per day, along with the installation of a large jaw crusher and conveyor
system to increase capacity at the Broomstock Mill.
Phase II will increase total gold production to over 80,000 ounces per year
and will take 2 years to complete once development commences. Capital costs
are forecast to be US$26.5 million. Operating costs for the entire Ndarama
production will decrease to under US$200 per ounce, and the payback period
will be less than 3 years at a US$300 per ounce gold price. The major
elements of this phase are:
* Conversion of the Broomstock Mill to a 1000 tpd refractory sulphide
plant by installation of a flotation circuit and an 80 tonnes per day
bio-leach plant to treat the refractory concentrate. Ore from Ndarama,
Futi and Taba-Mali reefs, plus the Broomstock banded iron formation
sulphide deposit, will feed this plant.
* Construction of a new conventional 1500 tpd crushing, grinding and
leaching plant to process ore from the Ford Pit.
The 10-year mine development plan for Ndarama conservatively projects
recovery of about 800,000 ounces of gold to be produced from 4 main areas as
outlined below.
Project Tonnes Grade (grams/Tonne) Au Ounces(1)
===========================================================================
Ford Open Pit 4 600 000 2.00 298 750
Ndarama - Futi 4 580 000 7.30 284 450
Broomstock 980 000 4.10 128 650
Taba - Mali 510 000 6.10 99 600
============================================================================
821 450
(1) 1 Troy Ounce = 31.104 grams
Based on the known reserve/resource estimate of 1.4 million ounces, as well
as the considerable exploration potential remaining at Ndarama, management is
confident of extending mining well beyond the year 2007 used in this 10 year
development plan.
Development at Ndarama is proceeding according to the schedule that Trillion
established at the time of its 20% acquisition in September 1996. The
completion of Phase 1 will mark a major milestone for Trillion as the
establishment of a solid production base and positive cash flow at Ndarama
will complete the transformation of the corporation from an exploration to a
production company.
For more information, please visit our web page at www.trillion-resources.com
or contact:
Mr. Michael Halvorson, Director or Mr. David Chaplin, Projects Coordinator
Tel: 403.414.0809 Fax: 403.414.0829 Tel: 613.591.8555 Fax: 613.591.6077
This news release contains forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995 concerning
the Company's planned development program for the Ndarama Mine. These
forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ from those
reflected in the forward-looking statements, including, without limitation,
such important factors as risks and uncertainties relating to the
interpretation of drill results, the geology, grade and continuity of mineral
deposits, recovery, accidents, equipment delivery schedules, breakdowns,
labour disputes or other unanticipated difficulties with, or interruptions,
in production, unexpected costs and expenses and other risks and
uncertainties, including those described in the Company's Annual Report on
Form 20-F for the fiscal year ended June 30, 1997.
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