Pinnacle et al. receive increased Silver Coin estimate
2007-03-14 18:05 ET - News Release
See News Release (C-PNL) Pinnacle Mines Ltd (2)
Mr. Andrew Bowering of Pinnacle reports
PINNACLE ANNOUNCES A SIGNIFICANT INCREASE IN GOLD RESOURCES TO 947,988 OUNCES INFERRED AND 423,002 OUNCES MEASURED AND INDICATED
Pinnacle Mines Ltd., Mountain Boy Minerals Ltd. and Tenajon Resources Corp. are releasing the results of a recent update to the resource estimate on the Silver Coin project, adjoining the former gold producer Premier Silbak, near Stewart, B.C. The new mineral resource has been significantly increased and improved since the last resource estimate published in March, 2006, which only referred to inferred resources. MineFill was able to upgrade roughly 40 per cent of the resources from inferred to measured and indicated. The new resource estimate includes 947,988 ounces of gold in the inferred category and 423,002 ounces of gold in the measured and indicated category.
Andrew Bowering, president of Pinnacle, stated: "We are pleased with the work that was completed in 2006 which improved and increased the resources and we believe that there is potential to increase the resources even more with additional drilling to the north and east in the next exploration programs. The 2007 exploration program will be established upon receipt of the 2006 drill report and Minefill 43-101 report."
This updated resource includes an additional 182 surface diamond drill holes completed in 2005 and 2006 under the supervision of Pinnacle geologists and 417 historical drill holes, of which 288 were drilled from underground. The resource is based on drilling along 700 metres of strike length within a mineralized zone that has been identified over a distance of at least 2,500 metres that remains open to the southeast and north. Trenching to the north along the mineralized structure has returned values up to 22 grams per tonne (g/t) gold.
The current resource estimate is located primarily within the Kansas claim and the immediate surrounding area, including the Big Missouri claim (51 per cent -- Pinnacle, 49 per cent -- Mountain Boy), as drilling was concentrated in these areas. In 1991 the Facecut zone, located on the Big Missouri, produced 102,539 tonnes at an average grade of 8.9 g/t gold (Au) and 55.50 g/t silver (Ag). Work during 2005 and 2006 has extended this high-grade mineralization (Facecut zone) at least 200 metres north of the stoped area. DDH-2005-89 intersected 11.59 metres of 9.89 g/t gold approximately 100 metres north of the mined area. Future drilling will concentrate on this area to the north.
The new mineral resource estimate is presented in the mineral resource table below, at a cut-off grade of 0.75 g/t gold equivalent.
UPDATED MINERAL RESOURCE ESTIMATE FOR SILVER COIN
(above a cut-off grade of 0.75 g/t gold equivalent)
Au Ag Zn Au Au Eq (oz)
Class Tonnes g/t g/t % (oz) (Au, Ag only)
Measured 1,073,891 3.481 14.191 0.432 120,181 129,513
Indicated 8,633,606 1.091 10.567 0.288 302,822 358,689
--------- ----- ------ ----- ------- ---------
Measured
plus
indicated 9,707,497 1.355 10.968 0.304 423,002 488,202
Inferred 15,947,629 1.849 5.377 0.273 947,988 1,000,499
Note: Au equivalent values are calculated from $525 per ounce for
gold, $10 per ounce for silver. Metallurgical recoveries and net
smelter returns are assumed to be 100 per cent.
The inferred total has been almost doubled plus the companies have added an additional 423,002 to the measured and indicated categories.
In addition to the above results, the resource estimate table below shows resources at a range of cut-off values.
UPDATED MINERAL RESOURCE ESTIMATE FOR SILVER COIN
Cut-off
grade Au Ag Zn Au Au Eq (oz)
Au Eq Tonnes g/t g/t % (oz) (Au, Ag only)
0.25 76,599,380 0.717 3.781 0.155 1,765,689 1,943,044
0.5 41,636,771 1.161 5.54 0.217 1,554,100 1,695,353
0.75 25,655,126 1.662 7.492 0.285 1,370,803 1,488,505
1 16,760,494 2.259 9.629 0.363 1,217,231 1,316,059
1.25 11,426,111 2.982 12.059 0.451 1,095,408 1,179,784
1.5 8,245,680 3.809 14.919 0.535 1,009,735 1,085,067
The new resource was classified in accordance with Canadian Institute of Mining (2000) standards.
The updated resource includes a high-grade core of 8.25 million tonnes grading over five grams per tonne gold equivalent (3.8 g/t Au, 14.9 g/t Ag, 0.04 per cent copper (Cu) and 0.54 per cent zinc (Zn)) containing just over one million ounces of gold. |
