Major expansion at Ndarama
Trillion Resources Ltd TLQ
Shares issued 22,364,500 May 12 close $1.25
Wed 13 May 98 News Release
Mr. Michael Halvorson reports
Trillion Resources has completed a pre-feasibility study for its 100 per
cent owned Ndarama mine project at Kwekwe, in central Zimbabwe.
The study, which was prepared by members of the Trillion board of
directors, with the company's geological, engineering and mine production
staff, details a ten year mine expansion plan to be undertaken in two
phases.
The expansion program is based on an updated gold reserve resource estimate
for the Ndarama property, as outlined in the following table. The resource
estimate has been calculated from the results of 50,000 metres of drilling
over the last 18 months. A gold price of $300 (U.S.) per ounce is being
used for planning purposes.
NDARAMA PROPERTY GOLD RESERVE/
RESOURCE ESTIMATE
Reserves
Proven/Probable
Tonnes g/t Ounces *
Ford Pit 4,600,000 2.0 298,740
Ndarama-Futi 430,000 8.0 109,920
Broomstock 690,000 4.3 95,160
Taba-Mali 45,000 5.8 8,400
TOTAL 5,765,000 2.8 512,220
Resource
Indicated/Inferred
Tonnes g/t Ounces *
Ford Pit 3,990,000 1.6 206,650
Ndarama-Futi 2,330,000 7.0 524,560
Broomstock 430,000 4.4 61,470
Taba-Mali 495,000 6.1 97,000
TOTAL 7,245,000 3.8 889,680
Total
Tonnes g/t Ounces *
Ford Pit 8,590,000 1.8 505,400
Ndarama-Futi 2,760,000 7.2 634,470
Broomstock 1,120,000 4.4 156,640
Taba-Mali 540,000 6.1 105,390
TOTAL 13,010,000 3.4 1,401,900
* 1 troy ounce Au = 31.104 grams
Phase I, which is already under way and due for completion in Oct. 1998,
will double mine production to 30,000 ounces per year. Capital costs are
$4.5 million (U.S.) and cash operating costs are projected to be $210
(U.S.) per ounce, resulting in a payback period of two years. The key
components of phase I are:
Doubling underground production to 200 tonnes per day from the Ndarama -
Futi vein system and commensurate upgrade of the Ndarama mill.
Increasing production at the Ford open pit from 700 tonnes to 850 tonnes
per day, along with the installation of a large jaw crusher and conveyor
system to increase capacity at the Broomstock mill.
Phase II will increase total gold production to over 80,000 ounces per year
and will take two years to complete once development commences. Capital
costs are forecast to be $26.5 million (U.S.). Operating costs for the
entire Ndarama production will decrease to under $200 (U.S.) per ounce, and
the payback period will be less than three years at a $300 (U.S.) per ounce
gold price. The major elements of this phase are:
Conversion of the Broomstock mill to a 1,000 tpd refractory sulphide plant
by installation of a flotation circuit and an 80 tonnes per day bio-leach
plant to treat the refractory concentrate. Ore from Ndarama, Futi and
Taba-Mali reefs, plus the Broomstock banded iron formation sulphide
deposit, will feed this plant.
Construction of a new conventional 1,500 tpd crushing, grinding and
leaching plant to process ore from the Ford pit.
The ten year mine development plan for Ndarama conservatively projects
recovery of about 800,000 ounces of gold to be produced from four main
areas as outlined below.
Tonnes g/t Au Ounces *
------ --- ---------
Ford Open Pit
4,600,000 2.00 298,750
Ndarama - Futi
4,580,000 7.30 284,450
Broomstock
980,000 4.10 128,650
Taba - Mali
510,000 6.10 99,600
-------
821 450
* 1 Troy Ounce = 31.104 grams
Based on the known reserve/resource estimate of 1.4 million ounces, as well
as the considerable exploration potential remaining at Ndarama, management
is confident of extending mining well beyond the year 2007 used in this ten
year development plan.
Development at Ndarama is proceeding according to the schedule that
Trillion established at the time of its 20 per cent acquisition in Sept.
1996. The completion of phase 1 will mark a major milestone for Trillion as
the establishment of a solid production base and positive cash flow at
Ndarama will complete the transformation of the company from an exploration
to a production company.
WARNING: The company relies on litigation protection for "forward-looking"
statements.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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