X-Cal Resources Ltd -
Sleeper mine results of work to date
X-Cal Resources Ltd XCLShares issued 262223041998-06-16 close $0.38Tuesday Jun 16 1998Mr. Shawn Kennedy reports The Sleeper gold project report by Winthrop A. Rowe is being printed by X-Cal Resources this week. The report is to a comprehensive update on the gold project with results of work to date and recommendations for development of the district. The total of the historic and present unconstrained mineral inventory statistics at Sleeper exceeds 11 million ounces of gold. The statistics illustrate the strong exploration potential at Sleeper and for the district. Approximately 1.7 million ounces of gold in the mine area has been recovered by previous high grade mining. The Sleeper mine area is one of six project domains in the report. An in-ground mineral inventory of more than seven million ounces (182 million tons of 0.042 opt Au) can be calculated at the mine site. The X-Cal drill intercept of 200 ft. of 0.038 opt Au demonstrates potential for additional high grade Sleeper style deposits. Winthrop A. Rowe, vice-president of X-Cal USA Inc., has compiled the main body of the report. Mr. Rowe's track record is exploration and reserve replacement for major companies. The largest portion of his 28 years of industry experience worldwide is in Nevada geology. In-Ground Resource Estimate for Partial Mine Site Area Resources of disseminated mineralization exist adjacent to the present pit. To quantify some of this lower grade mineralization, X-Cal contracted Mineral Resources Development to complete a resource estimation of Silica Cap, Saddle, Wood and West Wood portions of the Sleeper mine. Calculations used over 800 drill holes from previous drilling, and 45 holes by X-Cal. Variography, densities, and general calculation parameters were based on historic mining information. The calculation outlined 119,515,000 tons at 0.019 ounces per ton gold, for a geologic resource of 2,271,000 ounces of gold (using a cutoff grade of 0.01 opt gold). The same area includes 23,127,000 tons at 0.042 ounces per ton gold, for a geologic resource of 971,000 ounces of gold (using a cutoff grade of 0.022 opt). Unconstrained In-Ground Resource Estimate by Management In-house calculations were completed for the same areas, plus all remaining areas surrounding the Sleeper Pit. This study estimated 182 million tons of 0.042 opt Au (7.6 million ounces) remaining adjacent to and under the Sleeper pit. Calculations were based upon unconstrained geostatistical parameters, kriged blocks models, and variograms used by referees in life-of-mine reserve studies of Sleeper mine. There were no considerations given to continuity, economics or mine modeling, as the study was intended as a calculation of the potential size of the system. For example, a drill hole with a significant gold intercept sitting by itself, would be given a standard block dimension for that intercept, even if there were no other holes in the same vicinity. The database used over 3,891 drill holes, of which approximately 3,000 or more are in and adjacent to the pit. The data was also used to calculate the total gold content of the materials already removed from Sleeper. The calculation (confirmed by blast hole data) for materials mined, indicated more than four million ounces of gold (7.6 million plus four million = 11.6 million). The original high grade mining recovered 1.7 million ounces. Therefore, 2.3 million ounces are presumed to be unrecovered in above ground material at the site. Resource in Residual Materials Leach heaps are estimated to contain 49 million tons averaging 0.013 opt gold for a resource of 580,000 ounces of gold. Tailings are estimated to contain 6.7 million tons averaging 0.025 opt gold for a resource of 155,000 ounces of gold. Reconciliation studies suggest the waste dumps may contain more than one million ounces of gold. Metallurgical Considerations Flotation tests of tailings returned a plus 63 per cent gold recovery. The potential for processing the tailings material is encouraging. Larger scale benefits of the study should be considered for future mining of the Sleeper district. The recoveries suggested by the flotation studies may allow economic access to disseminated materials in the gold inventory. Deepening of the Sleeper mine would expose disseminated ores as well as high grade veins. In some areas, gold mineralization is proven to extend more than 400 feet below the present pit bottom and is open. Summary In addition to resource statistics, the focus of the 70 page report is to describe targets with exploration potential similar to Sleeper in the district and targets for other types of deposits. An area of interest agreement with X-Cal is required to review the Sleeper data package. X-Cal Resources is operator of the project and is vested at 50 per cent. The company has also purchased a three year option to buy the remaining interest held by Kinross Gold. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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