Newmarket Gold Increases Flagship Fosterville Gold Mine Mineral Reserves by 34% With A 25% Increase in Reserve Grade to 6.95 Grams Per Tonne
Fosterville Phoenix & Lower Phoenix Gold System Achieves New Total M&I Mineral Resource Of 673,000 ounces Grading 8.33 Grams Per Tonne
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 21, 2016) - Newmarket Gold Inc. ("Newmarket" or the "Company") (TSX:NMI) (OTCQX:NMKTF) is pleased to announce the results of the Company's updated 2015 year-end Mineral Reserves and Mineral Resources. The Company's Annual Information Form and Technical Reports prepared in accordance with National Instrument 43-101 supporting the 2015 Mineral Reserve and Mineral Resource estimates will be available today under Newmarket's profile at www.sedar.com (see "Technical Reports" section below).
Year-End 2015 Mineral Resources and Reserves Highlights
Fosterville Gold Mine Mineral Reserves increased 34% to 244,000 ounces of gold, after depletion, as a result of the discovery of the high-grade, visible gold-bearing Eagle Fault Zone which comprises approximately 18% of total Fosterville underground Mineral Reserves. Mineral Reserve grade increased 25% to 6.95 g/t from 5.55 g/t. Excluding stockpiles, Fosterville's in situ Mineral Reserves are 239,000 ounces grading 7.03 g/t.
Fosterville Measured and Indicated Mineral Resources increased 5% to 2.12 million ounces of gold from the previous estimate of 2.0 million ounces. Measured and Indicated Mineral Resource grade increased 13% to 4.39 g/t from 3.89 g/t.
Fosterville's current mining front comprising the Phoenix and Lower Phoenix gold systems, and associated structures, host Measured and Indicated Mineral Resources containing 673,000 ounces grading 8.33 g/t(1). Recent surface-based drilling programs have confirmed the up-plunge and down-plunge potential to expand defined Mineral Resources in the Lower Phoenix gold system. The Lower Phoenix gold system has been traced by development and drilling for over 2 km and remains open for further expansion.
Fosterville's new Eagle Fault Zone hosts Measured and Indicated Mineral Resources of 75,000 ounces grading
11.61 g/t and Inferred Mineral Resource of 37,000 ounces grading 27.21 g/t. Also, newly discovered East Dipper structures host Measured and Indicated Mineral Resources of 166,000 ounces grading 9.79 g/t. The Eagle Fault Zone, East Dippers and other high grade structures in the Lower Phoenix gold system are currently providing mill feed and continue to positively impact mill grades, with 2015 achieving a record 6.11 g/t, a 32% increase over 2014.
Stawell Gold Mine underground Inferred Mineral Resources increased by 55% to 116,400 ounces following positive exploration results on targets including the Aurora B discovery within the East Flank of the Magdala System.
Stawell's new Aurora B discovery resulted in a maiden Inferred Mineral Resource of 30,400 ounces grading 3.5 g/t following three successful exploration programs completed during 2015. The grade of the Aurora B Inferred Mineral Resource is 42% greater than the underground Mineral Reserve grade. A fourth phase of drilling is underway to expand the Inferred Mineral Resource by targeting the along strike potential and to allow for the project to be assessed as a new mining front for the Stawell Mine. The Aurora B Mineral Resource remains open for potential expansion.
Consolidated Proven and Probable Mineral Reserves total 769,000 ounces, a 2.4% improvement from Proven and Probable Mineral Reserves of 751,000 ounces for all sites excluding Maud Creek as at December 31, 2014.
| (1) | For detailed gold-bearing structures comprising the Phoenix and Lower Phoenix gold systems, see Table # 1. |
Douglas Forster, President and Chief Executive Officer, Newmarket commented: "We are very pleased with the success of our delineation drill programs at our flagship Fosterville Gold Mine where the Phoenix and Lower Phoenix gold systems host Measured and Indicated Mineral Resources of 673,000 ounces grading 8.33 g/t. Fosterville's recent surface-based drilling programs targeting the Lower Phoenix system confirm near-mine gold mineralization with high-grade intercepts 200 metres up-plunge and 200 metres down-plunge from defined Mineral Resources, including 12.75 g/t over 5.9 m (ETW* 4.5 m) and 12.5 g/t over 3.35 m (ETW 2.4 m). Given the success of our drilling programs at Fosterville, we are confident that the Lower Phoenix gold system has the potential for additional Mineral Reserve and Resource growth, as well as potential for mine life extension, with a focus on creating shareholder value."
"During 2015, our growth programs have resulted in a number of significant near-mine discoveries. We are pleased to be able to establish maiden Mineral Resources for Fosterville's new, high-grade, visible gold-bearing Eagle Fault and East Dipper zones and the Aurora B discovery at the Stawell Gold Mine. All maiden Mineral Resource estimates are open for expansion and drilling of these high priority growth targets is on-going. Newmarket is well positioned for future growth with an experienced management and operating team, increasing Mineral Reserves, Resources and grade at our Fosterville Gold Mine, and a strong financial position whereby the Company will be essentially debt free by the end of Q1 2016."
*ETW = Estimate True Width
Mineral Resources and Reserves Summary at December 31, 2015
(Detailed Mineral Reserve and Mineral Resource tables follow at the end of this press release)
Fosterville Gold Mine
Mineral Reserves at Fosterville grew 34% to 244,000 ounces of gold, after depletion, accompanied by a 25% increase in grade to 6.95 g/t (1,091,000 tonnes at an average grade of 6.95 g/t) from the previous estimate of 182,000 ounces of gold (1,017,000 tonnes at an average grade of 5.55 g/t). Excluding stockpiles, Fosterville's in situ Mineral Reserves are 239,000 ounces grading 7.03 g/t. Measured and Indicated Mineral Resources increased 5% to 2.12 million ounces of gold accompanied by a 13% increase in grade to 4.39 g/t (15,036,000 tonnes at an average grade of 4.39 g/t), from the previous estimate of 2.0 million ounces of gold (16,183,000 tonnes at an average grade of 3.89 g/t).
Fosterville continues to maintain a large underlying Mineral Resource base that is expected to support future additions to Mineral Reserves, with potential to further extend the current known Mineral Resource following the latest surface based drill results in the Lower Phoenix system. The Phoenix and Lower Phoenix gold systems, where Fosterville is currently mining, host Measured and Indicated Mineral Resources of 673,000 ounces of gold grading 8.33 g/t. For detailed gold-bearing structures comprising the Phoenix and Lower Phoenix systems, see Table #1. In 2016, surface-based drilling in the Lower Phoenix system continues to confirm near-mine gold mineralization, with high-grade intercepts 200 metres up-plunge and 200 metres down-plunge from defined Mineral Resources including 12.75 g/t over 5.9 m (ETW 4.5 m) and 12.5 g/t Au over 3.35 m (ETW 2.4 m) (See February 29, 2016 Press Release available under Newmarket's profile at www.sedar.com). The Lower Phoenix gold system has been traced by development and drilling for over 2 km and remains open for further expansion.
During 2015, a total of 42,700 metres of drilling (196 drill holes) was completed which focused on the Lower Phoenix gold system. This drilling resulted in the significant discovery of the Eagle Fault Zone, a high-grade, visible gold-bearing structure proximal to current underground mine infrastructure within the Lower Phoenix gold system. This delineation drilling supported a new maiden Measured and Indicated Mineral Resource for the Eagle Fault Zone of 75,000 ounces grading 11.61 g/t and an Inferred Mineral Resource of 37,000 ounces grading 27.2 g/t. Also, newly discovered East Dipper structures in the Lower Phoenix gold system host Measured and Indicated Mineral Resources of 166,000 ounces grading 9.79 g/t.
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GLTA ! |
