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Int'l Wayside receives report for Cariboo property
International Wayside Gold Mines Ltd IWA
Shares issued 37,963,497 May 10 close $2.04
Fri 2 Jun 2000 News Release
Mr. H.K. Maddison reports
The company has received a report from an independent consultant relating
to the company's Cariboo gold property, near Wells, B.C. The report was
commissioned by the company to evaluate the mineral resources contained in
what is referred to as the Cow Mountain area of the property.
The resource evaluation report indicates that the Cow Mountain area
contains an inferred mineral resource of somewhat lower tonnage and
slightly lower grade than previous estimates.
Cow Mountain
Ronald G. Simpson PGeo has prepared a report dated May 18, 2000, entitled
"Evaluation of the Mineral Resource within the Sanders, Pinkerton and
Rainbow Zones of the Cariboo Gold Property." The Simpson report concludes
that there is an inferred mineral resource of approximately 7.9 million
tonnes grading 2.03 grams per tonne above a 0.69 g/t (0.02 of an ounce per
ton)gold cutoff. The guidelines followed in the Simpson report are those
published in the most recent Standards on Mineral Resources and Reserves,
Definitions and Guidelines, published by the Canadian Institute of Mining
and Metallurgy. Due to uncertainty in the reliability of conventional
percussion drilling and the lack of density measurements, measured and
indicated categories of resources cannot be assigned. The results are
comparable in magnitude with earlier estimates, which reported a cut
resource of 9.3 million tonnes grading 2.3 g/t. The difference in grade is
likely attributable to the add-back method used in earlier estimates to
assign the high uncut grades back to the blocks that they occupy. The
difference in estimated tonnage is attributed to a lower tonnage factor,
block orientation, anisotropic search parameters and a minimum of two
composites required to interpolate a block grade.
The inferred mineral resource quoted in the Simpson report replaces earlier
published estimates of measured and probable resources. Disclosure of such
earlier estimates by the company was inappropriate and the estimates should
not be relied upon since they were calculated by in-house personnel who are
not independent of the company.
The Simpson report states that, in order to upgrade the classification of
the resource from inferred to measured and indicated, a program of diamond
drilling, possibly accompanied by reverse circulation drilling, is required
to validate the grades and widths of mineralized intervals intersected by
the previous drill programs. Twinning of some of the percussion holes with
diamond drill holes may give sufficient confidence to allow the data from
the percussion holes to be included in further resource evaluation.
The drill hole database consists of 376 drill holes totalling 18,209 metres
and is compiled from two periods of drilling. The earlier drilling was
conducted by Wharf Resources in 1980-1981. This consisted of a surface
percussion drill program centred mainly over the Sanders zone. No
information is available on the sampling procedures or check analyses used
in this program, and the precise location of all of the holes has not been
firmly established due to subsequent surface disturbance by trenching. The
Simpson report states that an accurate tie-in to the current survey grid
must be made if the data are to be used for further resource evaluation.
The company has conducted surface and underground drill programs in the
area between 1995 and 1998. This included 71 surface and 17 underground
diamond drill holes and 135 underground percussion drill holes. Comparison
with mineralized intervals from the different drill programs shows a
significant difference between percussion and diamond drilling results.
This may be due in part to recovery problems, but the statistics show that
the underground percussion drilling data account for a disproportionate
percentage of the total resource, particularly in the Rainbow and Pinkerton
zones. In the Rainbow zone, the underground percussion drilling accounts
for 13 per cent of the total drilled footage but over 40 per cent of the
total ounces. This suggests that either the underground percussion drilling
was targeted primarily at mineralized structures, or that up-hole
contamination from vein material took place. The bias toward the
underground percussion drilling data throws considerable doubt on the
reliability of any mineral resource estimation. Virtually all of the
resource within the Sanders zone is based on surface and underground
percussion drilling. The Simpson report states that results from diamond
drilling alone have not confirmed the presence of a bulk-tonnage deposit. |
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