Gold-Ore's Bjorkdal holds 487,400 oz Au
2008-03-12 09:55 ET - News Release
Shares issued 75,592,582
GOZ Close 2008-03-11 C$ 0.89
Mr. Glen Dickson reports
GOLD-ORE RESOURCES LTD.: GOLD RESOURCES INCREASE AT BJORKDAL MINE, SWEDEN
Gold-Ore Resources Ltd. has received a new resource estimation for the company's 100-per-cent-owned Bjorkdal gold mine. The independent National Instrument 43-101-compliant resource estimation was completed by Wardell Armstrong International Ltd. (WAI) of Cornwall, United Kingdom, under the direction of qualified person Dr. Phil Newall, BSc, PhD, FIMMM, CEng.
Bjorkdal currently produces gold from material sourced from underground (800 tonnes per day), open pit (1,300 tonnes per day) and surface stockpiles (1,200 tonnes per day). With the recent increases in gold prices, open pit mining has been reactivated. The company is actively reviewing several areas with historic drilling that have demonstrated open pit potential to provide mill feed at the rate of 1,300 to 1,700 tonnes per day. The corporate objective is to increase gold production to the 50,000-to-75,000-ounce-per-year level during 2008.
The company has received two alternative resource estimates using different assumptions for potential open pit mining and for underground extraction. WAI reported the open pit scenario resources using a 2.5-metre minimum mining width and 0.3-gram-per-tonne (g/t) gold cut-off grade. The underground mining scenario resources were reported using a 3.0-metre minimum mining width and a 1.5 g/t gold cut-off grade. Open pit and underground mining scenario resources are shown in the "Bjorkdal open pit mining scenario mineral resources" and the "Underground mining scenario mineral resources" tables. The open pit mining scenario resources are inclusive of the underground mining scenario resources and are proximal to the open pit.
BJORKDAL OPEN PIT MINING SCENARIO MINERAL RESOURCES
(0.3 g/t Au cut-off, 2.5-metre minimum mining width; WAI March, 2008)
Gold grade
Resource category Tonnes (g/t) Ounces gold
Measured 2,040,000 1.74 114,100
Indicated 6,870,000 1.69 373,300
Measured and indicated 8,910,000 1.70 487,400
Inferred 18,060,000 1.53 888,500
Open pit scenario resources were estimated using multiple indicator kriging (MIK), using similar parameters as were used to establish the 2005 resources (NI 43-101 technical report previously filed on SEDAR). A modified search ellipsoid which reflects anticipated pay shoot orientation was introduced into the 2008 model.
The underground mining scenario resource was estimated using conventional block modelling techniques, whereby wire frames for the individual veins are established and evaluated separately. An inverse power of distance cubed estimation method was used to interpolate grades into the model. Resources external to the identified wire frames were also estimated using an inverse power cubed estimator with 11-metre-by-1.5-metre-by-seven-metre search radii (along-plunge by across-strike by dip).
UNDERGROUND MINING SCENARIO MINERAL RESOURCES
(1.5 g/t cut-off grade, 3.0-m minimum mining width WAI; March, 2008)
Gold grade
Resource category Tonnes (g/t) Ounces gold
Indicated 467,000 4.72 70,900
Inferred 421,000 5.65 76,500
Management is pleased with the results of these estimates as it confirms the potential to initially develop sufficient material for three years of production from the underground development and indicates the potential for significant expansion of the mine life. Comparing the 2005 resource with the 2008 resource (using a 0.5 g/t cut-off grade), the measured and indicated categories increased from 214,950 to 442,300 ounces of gold and the inferred category increased from 791,400 to 801,350 ounces of gold.
Mineral resources which are not mineral reserves do not currently have demonstrated economic viability. The Bjorkdal property is fully permitted with a modern operating mill. There are no known issues that materially affect the estimations of the mineral resources.
Gold production continues to increase
Gold production at Bjorkdal during 2007 totalled 19,500 ounces. Production during January, 2008, increased to an annualized rate of 23,000 ounces and in February to 24,000 ounces. The company will steadily increase gold production by increasing underground mining from 800 to 1,500 tonnes per day thereby increasing the blended grade of rock mined from underground and open pit.
A feasibility study has been commissioned and is progressing satisfactorily. Completion of the study is contingent on completion of test mining which involves stoping of four veins. One vein is 40 per cent complete while a second is 10 per cent complete.
Bjorkdal property information will continue to be posted on the company's website. Robert S. Wasylyshyn, PGeo, is the company's qualified person for the Bjorkdal project.
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