***NEWS RELEASE***
GMD Resource Corp -
Resource estimate on Discovery mine project
GMD Resource Corp GMDShares issued 141375671998-02-11 close $0.75Thursday Feb 12 1998Mr Valmar Pratico reports The following resource calculations have been received from the company's 100% owned Discovery project 100km north of Yellowknife, NWT. The two principal mineralized zones under investigation are the Discovery zone and the Ormsby zone, separated by 4,000 feet. The resource estimate combines two independently calculated estimates.
Contained
Au ounces
Category Tonnage oz/t of gold
------------ --------- ----- ---------
Measured and
indicated 2,851,000 0.148 421,000
Inferred 2,579,000 0.46 1,185,000
Ormsby Zone A new calculation received by the company from Giroux Consultants, independent reserve specialists, estimate the Ormsby zone to contain measured and indicated resource of 2,608,000 tons grading 0.108 ounces of gold per ton (cut to 5.18 ounces of gold per ton, 0.06 ounces of gold per ton cut-off, 10 ft composites) containing 282,000 ounces of gold. In addition, the inferred resource totals 1,250,000 tons grading 0.10 ounces of gold per ton containing 121,000 ounces of gold. Gold mineralization in the Ormsby zone occurs as correlatable zones of sulphide alteration associated with quartz veins in a shear zone in mafic rocks of the Yellowknife Greenstone belt. The mafic rocks, consisting of amphibolite, occur on the property in two blocks, called the Ormsby lithon and the Discovery lithon. Each lithon, on strike with each other, measures approximately 4,500 ft by 500 ft. Drill programs completed by the company total 169,000 ft in 214 holes and have focused on the Ormsby lithon. The gold mineralization occurs over the full extent of the drilling program and is open along strike and to depth. The nature of the gold mineralization and the mineralized zones has been corroborated by mapping and sampling of a decline by company geologists driven in 1997. Discovery Zone Gold mineralization at the Discovery zone consists of gold-bearing quartz veins that average 9.2 ft in width, within deformed metasediments within the Lux Lake Shear zone. A geologist in 1994 reported the old Discovery zone contained a measured (proven) and indicated resource (probable in-situ geological reserves) of 243,000 tons grading 0.57 ounces of gold per ton containing 139,000 ounces of gold (cut to one ounce, 0.20 ounce cut-off, three ft minimum mining width). In addition, inferred resources (possible in-situ geological reserves) totalled 1,329,299 tons grading 0.80 ounces of gold per ton containing 1,063,439 ounces of gold. This was reviewed by Ross Glanville and Associates (1995) and has previously been reported. Areas of mineralization not included in the resource estimate at this time include: 1. The Discovery lithon, south of the Discovery mine area which produced over 1 million ounces of gold from 1 million tons of ore with gold recovery of 99% between 1949 and 1969. Three drill holes have intersected gold mineralization; and 2. The west wide of the Ormsby lithon where gold has been noted in surface samples. Metallurgical testing by Process Research Associates shows the gold to be free milling and conventional milling followed by cyanidation to recover more than 94% of the gold. Gravity concentration recovers approximately 54% of the gold. Further test work is continuing to confirm the test results and determine possible plant designs. The company is encouraged by the metallurgical testing and resource estimate. The outcropping nature, extent and the geometry of the deposits facilitate the evaluation of the mineralization. Future exploration will focus on extending the mineralization in all directions, particularly the area between the two mineralized zones. In addition, scoping studies to determine the economic viability of the mineralization will be started. Further, in light of the events of the past few weeks, the company wishes to advise on the following: Projects 1. The Discovery project, 100km north of Yellowknife is an advanced-stage exploration project on a staked mineral claim. The claim is in good standing with work already filed and accepted on it until December 2002, whereupon it may be taken to a mineral lease. 2. The Royce project, 150km northeast of Yellowknife is a diamond exploration project on staked mineral claims. This requires a minimum annual expenditure and the submittal of an acceptable report to relevant government agencies. The expenditure requirements for 1997 have been met and a report will be submitted when necessary. The company routinely considers joint venture possibilities on any or all of its properties. The events of the past week have introduced renewed interest in the company's properties, however, the company has not agreed to general terms with any party. There are no immediate plans to sign any agreements other than confidentiality agreements to enable certain qualified companies an opportunity to review its data. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Mr Metals |
