Scorpio Completes Caribou Gold Deposit Model and Resource Estimate
Monday January 29, 8:00 am ET
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TSX:SPM
VANCOUVER, Jan. 29 /CNW/ - Scorpio Mining Corporation (TSX:SPM - News) is pleased to announce that it has completed the three-dimensional model and first-stage evaluation of the Company's 100% owned Caribou Gold project located 80 kilometres northwest of Halifax, Nova Scotia. The Caribou Property is comprised of 16 contiguous claims covering approximately 256 hectares and encompassing 5 shallow shafts from which gold was produced up until the Consolidated Smelting and Mining Company Limited (Cominco) closed the operation in 1947.
The Inferred Resource estimate using uncut gold assays is 350,305 tonnes grading 8.41 g/t gold (94,763 oz gold) or 12,285 grams of gold per vertical metre. Using a statistical cut-off for gold of 47 g/t, the Inferred Resource for the property is 350,305 tonnes grading 5.83 g/t gold (67,425 oz gold) or 8,710 grams of gold per vertical metre.
Past gold production for the property to a depth of 250 metres totals 3,366,575 grams gold (120,000 oz) or 13,995 grams of gold per vertical metre, from material with an average recovered grade of 0.458 oz/ton.
The geological model is high-grade lode gold mineralization, filling spaces and cracks created by the folding and fracturing of the host rocks. This deformation increased the permeability and thickened the sedimentary beds and mineralized zones at the crest of the folds. The resultant mineralized bodies are piped shaped, and where situated above one another, are called "saddle reefs." Gold may also be remobilized into bedded leads and/or shear stock-work zones related to cross-cutting fractures. Mineralization on the property occurs in two main deposit styles, bedding parallel quartz veins and flexure-associated quartz stock-work zones with or without related fissure veining.
Independent Qualified Person, Guy Mac Gillivary, PGeo, is responsible for data compilation of past exploration, statistical analyses of the database, construction of the geological model and preparation of the resource estimate.
Data compilation was completed for surface and underground geological mapping, underground sampling, and surface and underground drilling. The database consists of 371 drill holes and 1,599 underground chip samples taken from the auriferous veins. The average drill hole spacing is approximately 25 metres.
The resource estimate was completed using Surpac Vision software and employed the polygonal resource method. Vertical sections were cut at 12.5 metre intervals over the length of the mineralized zone and polygons were drawn around mineralized intervals using a 1.0-g/t cut-off. Mineralized polygons were colour-coded and wire framed together to produce a model of the deposit. Volume, tonnage and grade calculation were completed in Surpac using the assay database from past underground sampling and drilling programs. The estimate includes auriferous zones from surface to 250 metres depth. Grade calculations were compiled using weighted averages from a minimum of three and maximum of 15 samples. Volumes for the polygons were calculated using Surpac Vision software and tonnages were determined using a specific gravity of 2.65. Due to the nugget effect and poor grade continuity at 25-metre drill spacing that is typical of Meguma gold deposits, the estimate was placed in the inferred resource category.
A complete NI 43-101 compliant Technical Report supporting the resource estimate will be filed on SEDAR and posted on Scorpio's website (www.scorpiomining.com) within the next 2 weeks.
Mineral resources are not reserves and do not have demonstrated economic viability.
Further information on the Company and the Caribou project is available on the Scorpio Mining web site at: scorpiomining.com.
President, Mr. D. Roger Scammell, PGeo, is the Company's Qualified Person for the Caribou Project and has reviewed the technical information provided in this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this news release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration success, continued availability of capital and financing, and general economic, market or business conditions.
For further information
Glenn Little, Jackson Little Holdings Ltd., (604) 930-4375, 1-888-930-4375, Email: jlconsulting@telus.net
Rich Kaiser, YES International, 1-800-631-8127, 001-757-306-6090 (outside North America), Email: yes@yesinternational.com
Source: Scorpio Mining Corporation |
