CSW VERSION of WSP NEWS RELEASE...
Winspear releases Snap Lake tonnage estimates
Winspear Resources Ltd WSP
Shares issued 39,238,388 Jul 5 close $4.20
Mon 5 Jul 99 News Release
Mr. Randy Turner reports
Winspear Resources has released tonnage estimates made by MRDI Canada, a
Division of H.A. Simons Ltd., on the NW dyke, Snap Lake area, Camsell Lake
property. This property, 140 miles northeast of Yellowknife, NWT, is
operated by Winspear on behalf of the Camsell Lake joint venture.
MRDI Canada has reported interim tonnage estimates based on all available
drilling that has been undertaken on the NW dyke. This includes all holes
completed in the 1999 spring drilling program as well as those drilled into
the dyke during 1997 and 1998 programs. These tonnage estimates have also
been calculated and reported below for those areas within which the
kimberlite dyke exceeds one and two metres in thickness.
NW Dyke - In Situ Global Tonnage Estimates
Within Geological Model Limits
"Global Tonnage" Estimate
Greater Greater
than than
Total 1 metre 2 metres
------ ------- --------
Total Tonnes
(000s) 23,400 23,200 19,200
------ ------- --------
Ave. vertical
thickness (m) 2.44 2.76 3.00
------ ------- --------
No. of drill hole
intersections 180 175 163
Macrocrystic
kimberlite,
tonnes (000s) 20,600 20,400 16,800
------ ------- --------
Average vertical
thickness (m) 2.15 2.41 2.61
------ ------- --------
No. of drill hole
intersections 180 175 163
Kimberlite breccia,
tonnes (000s) 1,300 1,300 1,200
------ ------- --------
Average vertical
thickness (m) 0.49 0.16 0.18
------ ------- --------
No. of drill hole
intersections 22 22 19
Internal waste
tonnes (000s) 1,500 1,500 1,200
------ ------- --------
Average vertical
thickness (m) 0.39 0.19 0.20
------ ------- --------
No. of drill hole
intersections 41 41 34
Macrocrystic
kimberlite +
kimberlite
breccia, total
tonnes (000s) 21,900 21,600 18,000
------ ------- --------
Average vertical
thickness 2.28 2.57 2.80
------ ------- --------
No. of drill hole
intersections 180 175 163
------ ------- --------
Several aspects of these estimates are as follows:
True thickness is estimated to be at least 90 per cent of vertical
thickness as reported above over large areas of the dyke. Substitution of
true for apparent thickness will not have a significant impact on tonnage
calculations.
The relatively uniform thickness of the dyke is emphasized by the large
percentages of total tonnage that are contained within the one and
two-metre thickness contours.
Kimberlite has been subdivided into macrocrystic (hypabyssal) kimberlite
and kimberlite breccia. The latter is defined as kimberlite containing more
than 15 per cent fragments of country rock more than four millimetres in
diameter. Although these fragments will serve to dilute the overall diamond
grade relative to inclusion-free kimberlite, relative volumes as indicated
above suggests the overall impact on grade of the NW dyke will be low.
MRDI Canada has also calculated that a portion of the global tonnage
estimate occurs in contiguous blocks and with sufficient confidence that it
can be used for feasibility study purposes to estimate the recoverable
kimberlite tonnage on the NW dyke. Results of these calculations are
reported below.
NW dyke - In Situ tonnage estimates
within 90% confidence interval
plus/minus 15 per cent
Within 90% Confidence Interval
(plus/minus 15 per cent)
Greater Greater
than than
Total 1 metre 2 metres
------ ------- --------
Total Tonnes
(000s) 9,600 9,600 8,800
------ ------- --------
Ave. vertical
thickness (m) 2.81 2.81 3.00
------ ------- --------
No. of drill hole
intersections 140 140 132
Macrocrystic
kimberlite,
tonnes (000s) 7,700 7,700 7,000
------ ------- --------
Average vertical
thickness (m) 2.27 2.41 2.48
------ ------- --------
No. of drill hole
intersections 140 140 132
Kimberlite breccia,
tonnes (000s) 800 800 800
------ ------- --------
Average vertical
thickness (m) 0.50 0.29 0.31
------ ------- --------
No. of drill hole
intersections 18 18 18
Internal waste
tonnes (000s) 1,100 1,100 1,000
------ ------- --------
Average vertical
thickness (m) 0.40 0.34 0.34
------ ------- --------
No. of drill hole
intersections 34 34 33
Macrocrystic
kimberlite +
kimberlite
breccia, total
tonnes (000s) 8,500 8,500 7,800
------ ------- --------
Average vertical
thickness 2.51 2.69 2.79
------ ------- --------
No. of drill hole
intersections 140 140 132
------ ------- --------
Several aspects of these estimates are as follows:
The 8.7 million tonnes of macrocrystic kimberlite and kimberlite breccia
reported in the above table has been defined with sufficient confidence
that the actual tonnage achieved will not be expected to vary by more than
15 per cent, nine times out of 10.
While these tonnage estimates have been defined to levels acceptable for
feasibility study purposes, it is important to note that they refer only to
in situ kimberlite. The next step will be to superimpose grade estimates on
these figures throughout the NW dyke. Grade estimates are presently being
calculated from microdiamond results that have been obtained from drill
hole intersections of kimberlite.
Mining methods are being investigated that would allow for effectively
100-per-cent extraction of kimberlite that meets feasibility standard
criteria. These methods will likely involve filling mined-out areas with
cemented paste backfill to allow for extraction of intervening areas of
kimberlite.
The relative predictability of thickness and continuity of the NW dyke
suggests that with a limited amount of in-fill drilling, a significant
portion of tonnage as calculated within the limits of the geological model
can be converted to tonnage within the confidence interval used in the
above table.
The drill holes used in this compilation include intersections obtained on
the NW dyke during trhe 1997, 1998 and 1999 programs. The 1999 spring drill
program is now finished with a total of 103 holes (20,083 metres) being
completed.
Most of the holes drilled during the 1999 spring program were completed on
the NW dyke as depicted on the accompanying map. Of the 103 holes drilled
during this program, 71 were drilled as exploration holes on the NW dyke,
21 holes were drilled to define the limits of pits 3 and 4, four
geotechnical holes were drilled on the NW peninsula, and seven holes were
drilled to test the down-dip extent of the three kimberlite dykes
identified on the southeast arm of Snap Lake during the 1998 spring
drilling program. Some of the areas in the southeast arm appear promising
with intersections to 2.24 metres being encountered. Additional drilling is
required in this area to further test its economic potential.
Some comments on results of the drilling program are as follows:
The NW dyke continues to demonstrate characteristics of a continuous sheet
comprising a single mantle phase of kimberlite that is dominated by
macrocrystic hypabyssal material. Local areas occur within the NW dyke
where a relative abundance of country rock fragments define the material as
kimberlite breccia. As indicated in the accompanying table, this variety of
kimberlite is uncommon, is generally thin, and normally occurs with thicker
sections of macrocrystic kimberlite.
Included locally within this kimberlite is material defined as internal
waste. This refers to host rock material greater than 10 centimetres thick
that occurs within the kimberlite intersection. This host rock material has
been treated as internal waste in the tonnage calculations reported above.
Re-evaluation of this definition may result in some of this material being
reclassified as xenoliths.
The tonnage reported above includes approximately 667,000 tonnes of
kimberlite on the NW peninsula that MRDI Canada has previously determined
could be mined by open pit techniques.
Drilling to date indicates that the NW dyke remains open and thickens to
the north and east but becomes thinner to the south and southeast.
All drill results obtained from the NW dyke are subject to ongoing
evaluation. Upon completion of the microdiamond analyses from drill
intersections obtained during the 1999 program, grade estimates will be
made over that portion of the NW dyke that is included within the present
area covered by the geological model. This information will then be
incorporated into a feasibility study of the NW dyke to establish its
economic potential.
Winspear remains highly encouraged by results obtained to date from the
1999 program on the NW dyke. Work will continue on the property and will
include a range of geotechnical, environmental and engineering studies
designed to advance the Snap Lake project to a detailed evaluation of its
economic feasibility.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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