NAI 43-101 Results ............. .......... ......
Northern Abitibi Announces Initial Independent Gold Resource Estimate for Viking
Press Release Source: Northern Abitibi Mining Corp. On Wednesday March 2, 2011, 10:35 am
CALGARY, ALBERTA--(Marketwire - March 2, 2011) - Northern Abitibi Mining Corp. ("Northern Abitibi") (TSX VENTURE:NAI - News) is pleased to announce the results of the first resource estimate for the Thor Trend Deposit on the company's 100% owned Viking gold property in Newfoundland. The independent mineral resource estimate study was conducted by Mercator Geological Services Limited ("Mercator") and was completed in accordance with Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") and the CIM Standards on Mineral Resources and Reserves.
The resource model evaluates low grade alteration based gold mineralization separately from higher grade gold trends and vein based mineralization. Several high grade solid models were created based on assay grades, and the associated high grade values have been restricted to those solids. Larger low grade shells constrain the interpolation of the surrounding lower grade mineralization where grade and continuity have proven sufficient.
The tables below show the cut and uncut Inferred Resource estimate reported at a series of cut off grades. Mercator determined that the low grade mineralization demonstrates good continuity at the 0.20 grams per tonne (g/t) grade cut-off, resulting in a cut Inferred Mineral Resource of 6.284 million rounded tonnes at a grade of 0.61 g/t gold (123,242 ounces), and an uncut Inferred Mineral Resource of 6,293,000 million rounded tonnes at a grade of 0.65 g/t gold (131,511 ounces). The effective date for this estimate is March 2nd, 2011.
Highlights
-- The deposit remains open along strike and to depth.
-- In-fill drilling guided by data from the resource estimate can potentially add additional gold resources at low incremental costs per ounce.
-- The modeling has resulted in a much improved understanding of the geometry of high grade zones which are proving to be coherent bodies with good continuity. Most of the high grade zones were not specifically targeted during past drilling programs which were designed to evaluate the bulk minable potential of the system. Excellent potential to add significant additional high grade gold resources by specifically targeting the high grade zones within the deposit envelope has been identified.
-- The deposit is near surface and has a favorable open pit geometry.
-- Total discovery cost for each ounce of gold at the Viking Project is $21/ounce.
Dr. Shane Ebert, President of the Company commented "Northern Abitibi has discovered a significant new gold resource with excellent initial metallurgical results that is located adjacent to roads, power, and a potential work force in the mining friendly jurisdiction of Newfoundland. The resource estimate shows a very significant tonnage of mineralized material and there remains excellent potential to increase this tonnage with further drilling within the current deposit envelope, and exploring the system to depth, along strike, and by testing several other large gold targets on the property. In deposits with coarse gold, such as Viking, diamond drilling is a good measure of geological continuity but can be a statistically poor measure of grade and its distribution. In several examples, drilling significantly understates bulk-sample grades in deposits with coarse gold. Plans to further expand the high grade resources and assess the grade of the deposit through bulk sampling are underway."
finance.yahoo.com
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Hmmm, that is about 10% of what I estimated the potential to be. Will take further drilling in 2011 to bump these numbers up to higher levels which makes this a very LT hold. NAI will need lots of drilling, then another resource estimate so next "hard" numbers probably not until mid 2012. However, now that they have identified the geometry of the high grade zones, focused drilling should bring some nice interim drill result NRs. Suppose those could bump the price in the future. Management still continues to use the terminology "significant new gold resource" in its NR.
Will need to look at the report in detail when it comes out in April. I suspect the market was looking for higher numbers and we could see some selling from present levels. Question comes down to - do you play the numbers as reported or the statements of the management about the potential recognizing this is Junior gold space?
Also another point, not trying to be boastful, so hesitant to bring it up - but it shows why with these juniors one could sell into any run up such that remaining shares were "free." Now the flexibility exists to hang on or take profits in spite of b X A changes.
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