Oban Mining (OBM-T) June 13, '16 is pleased to provide an updated resource estimate for its 100%-owned Marban gold project, located near the town of Malartic, Québec. This update is the result of 92,900 metres of infill drilling and historical core re-sampling executed since the last published resource estimates on the Marban and Norlartic deposits. The new estimate has produced an increase in the overall gold resource and an upgrading of the bulk of the resources to robust measured and indicated (M&I), pit-constrained categories. This updated estimate was prepared by Belzile Solutions Inc. based in Rouyn-Noranda, Québec. Mine Development Associates based in Reno, Nevada previously estimated the Marban project resources in 2007, 2010 and 2013.
Highlights:
The in-pit M&I resource (total of both Marban and Norlartic) now stands at 1.48 million ounces gold in 37.0 M tonnes at an undiluted grade of 1.24 g/t Au, with in-pit inferred resource adding 0.13 million ounces gold in 3.6 M tonnes at an undiluted grade of 1.15 g/t Au. Pit-constrained resources are based on a Whittle-optimized pit shell using a gold price of US$1,250 per ounce and a calculated external lower cut-off of 0.4 g/t Au (see table below).
At a higher cut-off grade of 1.0 g/t Au, the in-pit M&I resources stand at 1.04 million ounces gold in 16.5 M tonnes at an undiluted grade of 1.97 g/t Au, representing 70% of the overall pit-constrained M&I ounces.
The new global M&I mineral inventory currently stand at 1.83 million ounces gold in 47.6 M tonnes with an average grade of 1.20 g/t Au and the global inferred mineral inventory stands at 0.41 million ounces gold in 12.2 M tonnes at an average grade of 1.03 g/t Au (based on 0.40 g/t Au lower cut-off; see table below).
Both Marban and Norlartic are open at depth and further drilling is planned to establish the potential for additional resources that may be mined by underground methods.
John Burzynski, President and CEO of Oban, commented: "We are very pleased with the new updated resource estimate for the Marban Project. Whittle-constrained in-pit M&I resources for the Marban and Norlartic deposits increased by 16% for a total of 1.48 M oz at $US1250 gold price, with an additional 134,000 oz in the inferred category. It is important to note that at higher cut-off grade of 1.0 g/t Au, the deposits still contain a total of 1.04 M oz in the M&I categories at a grade of 1.97 g/t Au, representing 70% of the overall M&I resources. Significantly, the new Whittle shells have lowered the overall strip ratio to 6.3 and we feel confident that this ratio can be further reduced with the upcoming detailed engineered pit shells. We are particularly pleased that the global mineral inventory remains at a strong combined number, allowing for additional potential upside in a rising gold price environment."
Table 1 - Undiluted resource estimates within US$1,250
Whittle pit shell1
| Deposit | Category | Grade (g/t) | Tonnes (M)2 | Oz Au3 | | Norlartic | Measured | - | - | - | | Norlartic | Indicated | 1.30 | 8.6 | 358,000 | | Norlartic | M+I | 1.30 | 8.6 | 358,000 | | Norlartic | Inferred | - | - | - | | Marban | Measured | 1.47 | 7.7 | 363,000 | | Marban | Indicated | 1.13 | 20.8 | 758,000 | | Marban | M+I | 1.23 | 28.4 | 1,121,000 | | Marban | Inferred | 1.15 | 3.6 | 134,000 | | All | Measured | 1.47 | 7.7 | 363,000 | | All | Indicated | 1.18 | 29.4 | 1,117,000 | | All | M+I | 1.24 | 37.0 | 1,479,000 | | All | Inferred | 1.15 | 3.6 | 134,000 |
| 1 Cut-off grade of 0.40 g/t Au and average strip ratio of 6.29 (excluding overburden). | | 2 Rounded to nearest 1 million, which may cause apparent discrepancies. | | 3 Rounded to nearest 1 thousand, which may cause apparent discrepancies. |
Sensitivity of the undiluted in-pit resource (based on variable minimum cut-off grades) is as follows:
Table 2a - Sensitivity of undiluted resource estimates to cut-off, within US$1,250 Whittle pit shell
Marban Deposit
| | Measured+Indicated | Inferred | | Cut-off | Grade
(g/t) | Tonnes
(M)1 | Oz Au2 | Grade
(g/t) | Tonnes
(M)1 | Oz Au2 | | 0.30 | 1.13 | 31.9 | 1,160,000 | 1.07 | 4.04 | 139,000 | | 0.40 | 1.23 | 28.4 | 1,121,000 | 1.15 | 3.60 | 134,000 | | 0.50 | 1.33 | 25.0 | 1,071,000 | 1.27 | 3.09 | 126,000 | | 0.60 | 1.45 | 21.7 | 1,013,000 | 1.39 | 2.65 | 118,000 | | 0.70 | 1.58 | 18.8 | 952,000 | 1.51 | 2.28 | 111,000 | | 0.80 | 1.71 | 16.2 | 889,000 | 1.62 | 2.00 | 104,000 | | 0.90 | 1.85 | 14.0 | 829,000 | 1.75 | 1.71 | 96,000 | | 1.00 | 1.99 | 12.1 | 771,000 | 1.87 | 1.48 | 89,000 |
| 1 Rounded to nearest 1 million, which may cause apparent discrepancies. | | 2 Rounded to nearest 1 thousand, which may cause apparent discrepancies. |
Table 2b - Sensitivity of undiluted resource estimates to cut-off, within US$1,250 Whittle pit shell
Norlartic Deposit
| | Measured+Indicated | Inferred | | Cut-off | Grade
(g/t) | Tonnes
(M)1 | Oz Au2 | Grade
(g/t) | Tonnes
(M)1 | Oz Au2 | | 0.30 | 1.23 | 9.28 | 366,000 | - | - | - | | 0.40 | 1.30 | 8.59 | 358,000 | - | - | - | | 0.50 | 1.38 | 7.83 | 348,000 | - | - | - | | 0.60 | 1.48 | 7.02 | 333,000 | - | - | - | | 0.70 | 1.57 | 6.28 | 318,000 | - | - | - | | 0.80 | 1.68 | 5.57 | 301,000 | - | - | - | | 0.90 | 1.78 | 4.95 | 284,000 | - | - | - | | 1.00 | 1.89 | 4.38 | 267,000 | - | - | - |
| 1 Rounded to nearest 1 million, which may cause apparent discrepancies. | | 2 Rounded to nearest 1 thousand, which may cause apparent discrepancies. |
Table 2c - Sensitivity of undiluted resource estimates to cut-off, within US$1,250 Whittle pit shell
Marban+Norlartic Deposits
| | Measured+Indicated | Inferred | | Cut-off | Grade
(g/t) | Tonnes
(M)1 | Oz Au2 | Grade
(g/t) | Tonnes
(M)1 | Oz Au2 | | 0.30 | 1.15 | 41.2 | 1,526,000 | 1.07 | 4.04 | 139,000 | | 0.40 | 1.24 | 37.0 | 1,479,000 | 1.15 | 3.60 | 134,000 | | 0.50 | 1.35 | 32.8 | 1,419,000 | 1.27 | 3.09 | 126,000 | | 0.60 | 1.46 | 28.7 | 1,346,000 | 1.39 | 2.65 | 118,000 | | 0.70 | 1.58 | 25.1 | 1,270,000 | 1.51 | 2.28 | 111,000 | | 0.80 | 1.71 | 21.8 | 1,190,000 | 1.62 | 2.00 | 104,000 | | 0.90 | 1.84 | 18.9 | 1,113,000 | 1.75 | 1.71 | 96,000 | | 1.00 | 1.97 | 16.5 | 1,038,000 | 1.87 | 1.48 | 89,000 |
| 1 Rounded to nearest 1 million, which may cause apparent discrepancies. | | 2 Rounded to nearest 1 thousand, which may cause apparent discrepancies. |
Global mineral inventories are not pit-constrained and, for reporting purposes here, represent mineralization extending to a depth of 400 metres below surface for the Marban deposit and 200 metres below surface for the Norlartic deposit. Both deposits are open at depth. Global M&I mineral inventories currently stand at 1.83 million ounces at an average grade of 1.20 g/t Au and the global inferred mineral inventory stands at 0.40 million ounces at an average grade of 1.03 g/t Au:
Table 3 - Global Mineral Inventory Estimates at 0.4 g/t lower cut-off
| Deposit | Category | Grade (g/t) | Tonnes (M) | kOz Au | | Norlartic | Measured | 0.00 | 0 | 0 | | Norlartic | Indicated | 1.26 | 9.95 | 402 | | Norlartic | M+I | 1.26 | 9.95 | 402 | | Norlartic | Inferred | 0.78 | 0.38 | 9 | | Marban | Measured | 1.45 | 8.52 | 398 | | Marban | Indicated | 1.10 | 29.1 | 1,030 | | Marban | M+I | 1.18 | 37.6 | 1,428 | | Marban | Inferred | 1.04 | 11.8 | 396 | | All | Measured | 1.45 | 8.53 | 398 | | All | Indicated | 1.14 | 39.1 | 1,432 | | All | M+I | 1.20 | 47.6 | 1,830 | | All | Inferred | 1.03 | 12.2 | 405 |
Details on the parameters of the resource estimates are as follows:
The database comprised a total of 723 holes for 221,200 metres of drilling completed and assayed by Oban (Niogold) as of the end of November 2015 on a 25 metre x 25 metre grid to 25 metre x 50 metre grid. Another 379,440 metres of the database were from 3,855 historical holes and 9,183 metres from 1,356 channels from the Marban mine compiled from previous operators.
The database also comprised a total of 305,652 assays with an average of 1.5 metre per sample for a total of 339,086 assayed metres. All NQ and BQ core assays reported by Oban were obtained by standard 50 g fire assaying-AA finish or gravimetric finish at ActLabs laboratory in Ste-Germaine Boulé, Québec, which is an accredited laboratory. A quality assurance and quality control program (QA/QC) was implemented by Oban and the laboratory to insure the precision and reproducibility of the analytical method and results. The QA/QC program included the insertion of standards, blanks and field duplicates in the sample batches sent to the laboratory and a systematic re-assaying of samples returning values above 3 g/t Au by fire-assay using a gravimetric finish. As well, 5% of the pulps grading above 0.3 g/t Au are sent to Accurassay laboratories in Rouyn-Noranda for check assaying.
The present estimates were done using Inverse Distance Cubed (ID3) interpolation as the geostatistical method based on 2.0 metre analytical composites. ID2 and Ordinary kriging interpolation have also been used for comparison with no significant variations in results.
All estimates are based on a block dimension of 10 metres E, 5 metres N and 5 metres height with estimation parameters determined by variography.
Geological interpretation based on lithologies, folds and mineralized shears, made from cross-sections at 6 to 12.5-metre intervals, identified, for the Marban deposit, a total of 94 mineralized low domains, of which 40 include higher-grade sub-domains, for a total of 134 distinct domains. The domains comprise stacked mineralized shears that strike east-west and dip 45 to 50 degrees north. Minimum width was set to three metres.
Calculations are based on original samples within mineralized domains capped to a maximum of 30 g/t Au for all low-grade domains and to a maximum of 45 to 80 g/t Au for the high-grade domains. Globally, about 0.25% of the population has been capped representing an apparent gold loss varying between 5 and 15% depending of the domains. All 2-metres composites are calculated based on cut original data. In addition to the assay capping, restrictions were placed during grade interpolation on the influence of high-grade composites in low grade mineral domains.
Tonnage estimates are based on average densities ranging from 2.70 to 2.86 t/m3 with a 2.80 t/m3 density for the basalt (the principal ore host), based on a total of 902 specific gravity measurements (624 for Marban and 278 for Kierens-Norlartic).
The ounces estimated into the modeled workings of the past-producing Marban and Norlartic mines were removed from the mineral resources;
The Norlartic potential pit has the Keriens Creek flowing over a portion of it. Current baseline environmental studies will assess the possibility of deviating it.
Pit optimization parameters are summarized in the table below:
| Parameter | Unit | Value | | Gold price | US$/oz | 1250 | | Royalties | % | 3.0% | | Refining cost | US$/oz | 3.75 | | Milling Rate | Tpd | 10,000 | | Processing cost | US$/t milled | 10.60 | | Administration | US$/t milled | 0.75 | | Sustaining capital | US$/t milled | 0.94 | | Total ore cost | US$/t milled | 12.29 | | | | | | Recovery | % | 89.0% | | Cut-off grade | g/t Au | 0.40 | | Base mining cost rock | US$/t mined | 1.88 | | Incr. bench cost | US$/bench | 0.02 | | Mining cost overburden | US$/t mined | 1.50 | | Density overburden | t/m3 | 2.0 | | Pit slopes N-E-W walls | degrees | 50 | | Pit slopes south walls | degrees | 45 |
Qualified Persons
Mr. Elzéar Belzile, Eng. of Belzile Solutions Inc. (global resource estimate) and is independent "Qualified Person", as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), responsible for the technical information reported herein, including verification of the data disclosed. Mr. Thomas L. Dyer, P.E. of Mine Development Associates is also independent "Qualified Person" and is responsible for Whittle pit optimizations. Mr. Yan Ducharme, P. Geo. and Mr. Robert Wares, P. Geo., are "Qualified Persons" (as defined in NI 43-101) internal to Oban who have reviewed and approved the resource estimates and the technical contents of this news release.
About Oban Mining Corporation
Oban is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Oban holds a 100% in the high-grade Windfall Lake gold deposit located between Val-d'Or and Chibougamau in Québec and holds a 100% undivided interest in a large area of claims in the surrounding Urban Barry area (82,400 hectares), a 100% interest in the Marban project located in the heart of Québec's prolific Abitibi gold mining district, and properties in the Larder Lake Mining Division in northeast Ontario, including the Jonpol and Garrcon deposits on the Garrison property, the Buffonta past producing mine and the Gold Pike mine property. The Corporation also holds interests and options in a number of additional properties in northern Ontario. Oban is well financed with approximately $74 million in cash, cash equivalents and marketable securities.
John Burzynski
President and Chief Executive Officer
(416) 363-8653
obanmining.com |
