Geezzz...where is everybody? Not following GBU too closely but have been watching after an alert from CC. Today stock is on the move with 200k trading so far.
News:
Gabriel Resources Ltd - News Release
Gabriel updates Rosia Montana reserves
Gabriel Resources Ltd GBU
Shares issued 74,305,661 2000-10-19 close $3.4
Thursday Oct 19 2000 News Release
Mr. Frank Wheatley reports:
Gabriel Resources is pleased to provide the following update on Gabriel's corporate and technical activities:
updated resource estimate at Rosia Montana of approximately 11 million ounces of gold with approximately 62 million ounces of silver, based upon a measured, indicated and inferred resource of 254 million tonnes grading 1.3 grams gold per tonne;
measured and indicated categories increase to 75 per cent of the updated resource estimate;
mineralization at Rosia Montana remains open, exploration is continuing, and a final resource estimate to be used for the definitive feasibility study on Rosia Montana, is scheduled to be completed by year-end;
definitive feasibility study on Rosia Montana being prepared by Minproc Limited is under way and is scheduled to be completed by mid-2001.
Rosia Montana interim resource estimate
Gabriel is pleased to announce an updated resource estimate for its 80-per-cent-owned Rosia Montana project in Romania. This estimate incorporates all data obtained by Gabriel from its sampling and drilling programs on the Rosia Montana project up to mid-September, 2000.
Using a 0.6 gram/tonne cutoff, a 10-by-10-by-10-metre block size and multiple indicator kriging, the resource estimate is as follows:
Category
of Resource Tonnes Gold Silver
g/t g/t
Measured 97,400,000 1.6 10
Indicated 74,050,000 1.4 8
------------
Total M&I: 171,450,000 1.5 9
Inferred 82,550,000 1.0 5
Total: MI&I 254,010,000 1.3 8
Gabriel's
share 203,200,000
Category Contained Ounces %
of Resource Gold Silver Au*
Measured 4,857,000 30,223,000 44
Indicated 3,373,000 18,016,000 31
------------
Total M&I: 8,230,000 48,239,000 75
Inferred 2,751,000 13,755,000 25
Total: MI&I 10,981,000 61,994,000 100
Gabriel's
share 8,785,000 49,595,000
* Percentage of resource -- ounces Au
A 0.6 g/t cutoff grade was selected by Gabriel as being appropriate for a large-scale open pit mining operation having operating costs and recoveries similar to those anticipated for Rosia Montana in the definitive feasibility study. Details of the resource estimate at a variety of cutoff grades are set forth in the attached schedule.
In a report entitled Rosia Montana Project -- Resource Estimations, dated October, 2000, prepared by Resource Service Group Pty. Ltd. (RSG), of Perth, Western Australia, RSG calculated the updated resource estimate and classified it into measured, indicated and inferred resources in accordance with the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum in 1996, as set forth in proposed National Instrument 43-101, using a variety of cutoff grades. RSG is an independent exploration, mining and resource consulting firm.
The resource estimate is based on a total of 99,386 metres of sampling, comprising 26,337 metres of reverse circulation and 15,498 metres of surface and underground diamond drilling in 213 holes, and 57,551 metres of underground channel sampling.
Gabriel's drilling and sampling programs over the past year have been successful in both expanding the overall resource base, as well as upgrading the resource classifications. In particular, mineralization at Rosia Montana has been expanded at Cirnic into a number of previously untested areas, including the central core and the southern and northern extensions. At Cetate, mineralization has been extended to the northwest to Carpeni and Orlea. At both Cetate and Cirnic, mineralization has been extended to depth. Mineralization remains open at depth and to the north at Carpeni, Orlea, Igre, Cos and Jig, as well as to the south at Corna.
The past year's programs have been particularly successful in upgrading resources from the indicated and inferred categories to the measured category. Approximately 44 per cent of the current resource estimate is included in the measured category and approximately 75 per cent of the resource estimate is included in the measured and indicated categories. All of these programs were conducted by Gabriel and supervised by RSG.
Samples from both the drill program and the underground channel sample program were assayed at Analabs Pty. Ltd.'s laboratory in Gauri Rosei, Romania, using a standard fire assay technique and an AAS finish. Duplicates, repeats, blanks and known gold standards are inserted according to standard industry practice, with check assays carried out by Bondar Clegg & Co. Ltd.'s laboratory in Vancouver and Analabs laboratory in Perth. Both Analabs and Bondar-Clegg are ISO 9002 certified.
Dr. Julian Barnes, BSc (Hon), Phd, of RSG is the qualified person (as defined in the proposed National Instrument 43-101) responsible for the resource report. Dr. Barnes and RSG were also responsible for the design and supervision of the drilling and channel sampling programs which formed the basis of the resource estimate. Dr. Barnes has corroborated the data collection, including sampling, analytical and test data, on which the resource estimate is based and prepared the resource model and estimate.
Rosia Montana final resource estimate
The drilling and underground channel sampling programs currently under way at Rosia Montana will continue through November. A large portion of the remaining work will focus on Cirnic and Orlea and is primarily designed to further increase the existing resource base. The additional data collected from mid-September until completion, which will represent approximately one-third of this year's overall program, will be incorporated into a final resource estimate to be calculated by RSG. This final resource estimate will form the basis of the open-pit mine reserve calculated for inclusion in the definitive feasibility study currently being prepared on the Rosia Montana project. The final resource estimate is currently scheduled to be completed by year-end.
Definitive feasibility study for Rosia Montana
Gabriel has engaged Minproc Limited of Perth, Western Australia, to prepare a definitive feasibility study on the Rosia Montana project. While Minproc Limited has overall responsibility for the preparation of the study, Gabriel has retained Knight Piesold Limited to undertake an environmental baseline and impact assessment study, a tailings impoundment siting study and feasibility level design, a geotechnical evaluation of pit slopes and waste rock disposal areas, and geotechnical evaluation of the plant site. Its office in the United Kingdom will complete the environmental work, while its Vancouver office will complete the balance of the work. The resettlement action plan, which addresses village relocation and is required as part of the environmental impact assessment, is being prepared by Planning Alliance of Toronto. RSG has been retained to prepare the mine reserves and mine plan. The definitive feasibility study is scheduled to be completed in June, 2001.
The Design Center for National Cultural Patrimony, an organization under the direction of the Romanian ministry of culture, has been engaged to prepare a feasibility study that will evaluate and list sites of archeological importance and dwellings, buildings or structures of historic importance which are in the area impacted by the development of a large scale mining operation at Rosia Montana. This study is scheduled to be completed during October, allowing for application to the ministry of culture for clearance to proceed with the development of the project. Approval to proceed with the project is likely to require that buildings and dwellings of interest be catalogued, described and photographed, and some relocated, while sites of archeological interest be excavated, catalogued, described and any articles found which are of interest, be removed.
The Rosia Montana town council has engaged a local architectural firm, at Gabriel's cost, to complete a general urbanism plan and a territory planning plan for the existing village of Rosia Montana. Both documents will incorporate the development of the Rosia Montana project as a large-scale open pit mining operation and are required for submission to the local and county councils for approval to relocate a portion of the village of Rosia Montana. These plans are scheduled to be completed by the end of October, thereby allowing application for approval of the plans to be made prior to year-end.
A comprehensive metallurgical sampling program has been completed by Minproc Limited and testwork is under way. Samples were collected for bench-scale, variability and comminution testwork, which has been undertaken to determine process design criteria. In addition, two 75-tonne bulk samples have been taken for pilot scale comminution testwork.
A sterilization drilling program will commence once the current drilling program at Rosia Montana is completed. Areas to be drilled will include potential tailings dam sites and the proposed plant site.
Senior management addition
Gary O'Connor has been appointed the vice-president, exploration, and Romanian country manager. Mr. O'Connor joined Gabriel in May, 2000, from Freeport McMoRan, where he spent 10 years based in Indonesia as district manager, exploration, with responsibility for all of Freeport's Indonesian exploration activities.
SCHEDULE
Gabriel Resources Ltd.
Rosia Montana Project
October, 2000, Resource Estimate
1. 0.8 g/t cutoff grade.
Category
of Resource Tonnes Gold Silver
g/t g/t
Measured 80,300,000 1.7 10
Indicated 55,880,000 1.7 8
------------
Total M&I: 136,180,000 1.7 9
Inferred 49,050,000 1.3 6
------------
Total: MI&I 185,240,000 1.6 9
Gabriel's
share 148,184,000
Category Contained Ounces %
of Resource Gold Silver Au*
Measured 4,474,000 26,362,000 47
Indicated 2,968,000 14,903,000 31
----------- ----------
Total M&I: 7,442,000 41,265,000 79
Inferred 2,010,000 9,458,000 21
----------- ----------
Total: MI&I 8,145,000 41,258,000 100
Gabriel's
Share 7,562,000 40,578,000
2. 1.0 g/t cutoff grade.
Category
of Resource Tonnes Gold Silver
g/t g/t
Measured 66,040,000 1.9 11
Indicated 43,440,000 1.9 9
------------
Total M&I: 109,480,000 1.9 10
Inferred 30,310,000 1.5 6
------------
Total: MI&I 139,800,000 1.8 9
Gabriel's
share 111,832,000
Category Contained Ounces %
of Resource Gold Silver Au*
Measured 4,063,000 22,637,000 50
Indicated 2,610,000 12,461,000 32
----------- ----------
Total M&I: 6,673,000 35,098,000 82
Inferred 1,472,000 6,160,000 18
----------- ----------
Total: MI&I 8,145,000 41,258,000 100
Gabriel's
Share 6,516,000 33,006,000
3. 1.2 g/t cutoff grade.
Category
of Resource Tonnes Gold Silver
g/t g/t
Measured 53,980,000 2.1 11
Indicated 34,460,000 2.1 9
----------
Total M&I: 88,440,000 2.1 10
Inferred 19,990,000 1.7 6
----------
Total: MI&I 108,340,000 2.0 10
Gabriel's
share 86,672,000
Category Contained Ounces %
of Resource Gold Silver Au*
Measured 3,637,000 19,315,000 52
Indicated 2,294,000 10,506,000 33
--------- ----------
Total M&I: 5,931,000 29,821,000 84
Inferred 1,107,000 4,118,000 16
--------- ----------
Total: MI&I 7,037,000 33,938,000 100
Gabriel's
share 5,630,000 27,151,000
* Percentage of resource -- ounces Au
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