News release: Int'l Taurus and Cusac confirm 1.6 million ounce Taurus gold inventory
International Taurus Resources ITS
Shares issued 28,530,403 Jun 25 close $0.28
Mon 28 Jun 99 News Release
Also Cusac Gold Mines Ltd (CQC)
Mr. Robert Blakestad reports
Computer-generated models of the presently known gold deposit at International Taurus's Taurus gold project near Cassiar, B.C., have confirmed a drill-indicated mineral inventory of over 50 million grams of gold (1.6 million ounces). International Taurus and Cusac Gold Mines announced in September, 1998, that they had established a joint venture on the property where Cusac can earn as much as a 60 per cent interest by
expending $1.7-million on the property and delivering 400,000 shares to Taurus. This earn-in is subject to a back-in right held by Taurus.
William H. Bird, PhD, president of Cusac, announced at Cusac's annual general meeting held on June 18, 1999, that calculations, based on 130 drill holes (18,638 metres of drilling) performed earlier by Taurus and Cyprus Canada Inc., have outlined potentially economic gold mineralization at the surface in six contiguous zones The total mineral inventory established from this study is 62,397,477 metric tonnes grading 0.8 grams of gold per tonne (1,613,743 ounces).
Cusac is developing a prefeasibility study for the Taurus project, based on the drilled mineralization and metallurgical work and a preliminary start-up open-pit mine plan produced for the project by Cyprus. Established commercial assay laboratories using standard fire-assay methods performed the gold analyses.
The focus of a proposed start-up operation will be the central zone of the gold deposit, known as the 88 Hill zone. When grade parameters are applied cutting high assays and using a minimum cutoff grade, 88 Hill contains a drilled indicated resource of 11,361,095 tonnes grading 1.08 grams of gold per tonne (393,337 ounces). Using a higher minimum cutoff grade, 88 Hill contains a drilled indicated resource of 8,553,087 tonnes grading 1.28 grams of gold per tonne (349,464 ounces).
The preliminary plan for the 88 Hill start-up mine details an open-pit operation that is essentially the removal of the hilltop. The design indicates that the pit will have only one high wall and 65 per cent of the potential ore is above the entry level of the pit. With this type of operation, mining costs will be relatively low.
Cusac reports that additional drilling is needed to upgrade the entire gold deposit resource to the status of reserve. Definition drilling will be the main activity required to complete a prefeasibility study. However, parts of three zones, including 88 Hill, already have enough data to calculate a drilled indicated resource of 23,439,899 tonnes grading 1.07 grams of gold per tonne (803,930 ounces). These initial numbers represent a significant
resource as designated by the term indicated resource, which is recommended by the Canadian Institute of Mining and the Toronto Stock Exchange to define resources where grade, tonnage and geology are sufficiently established so that the numbers can serve as a basis for decisions concerning major expenditures.
Robert Blakestad, president and chief executive officer of International Taurus, commented: "We are encouraged by the independent confirmation of our own assessment of the Taurus gold project as a significant gold deposit with considerable economic potential. We look forward to further progress by Dr. Bird and Cusac towards the realization of the full potential of the Taurus project."
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