John
Lo Increible project results
El Callao Mining Corp ECM
Shares issued 41,090,418 Nov 19 close $0.24
Fri 20 Nov 98 News Release
Mr. Clive Johnson reports
El Callao Mining Corp. has received the results of a new resource study,
completed by Mineral Resources Development Inc. on the Lo Increible
Property, Venezuela.
The estimated indicated and inferred resources above a 1 gram per tonne
cutoff from six deposits on the property now total 24.15 million tonnes at
3.28 grams gold/tonne containing over 2.5 million ounces of gold. All six
deposits; La Victoria, La Cruz, El Tapon, La Sofia, La Loca and El
Extranjero remain open to depth and along strike in at least one direction.
The previously released resource (in Stockwatch April 18, 1997) above a 1
gram cut-off was 16.57 million tonnes at 3.71 grams gold/tonne containing
1.98 million ounces of gold.
The MRDI estimated indicated and inferred in situ resources for the La
Victoria, La Cruz, El Tapon, and La Sofia deposits using ordinary kriging
and for the La Loca and El Extranjero deposits using
inverse-distance-squared. The data used to estimate resources consisted of
a total of 194 diamond drill holes (33,639m) and 71 reverse circulation
drill holes (8,912m). Three metre down hole composites were used to
estimate 3x3x3 metre blocks. The estimation was constrained by the
geological/grade zones interpreted by El Callao's geologists. Little change
of support dilution and no contact dilution has been incorporated into this
resource, therefore prior to estimating reserves for mine planning, an
allowance for contact dilution will be made.
The resources above the 1 gram per tonne and 3 gram per tonne cutoffs are
summarized below.
El Callao Resource Summary of all deposits:
1 gram per tonne cutoff
Indicated &
Indicated Inferred
Au Au Troy
Tonnes grade Troy Tonnes grade oz.
(000) (g/t) oz. (000) (g/t) (000)
8,488 3.30 901,800 24,149 3.28 2,550
3 gram per tonne cutoff
Indicated &
Indicated Inferred
Au Au Troy
Tonnes grade Troy Tonnes grade oz.
(000) (g/t) oz. (000) (g/t) (000)
3,606 5.24 607,500 10,009 5.268 2,550
Indicated & Inferred
Troy
ounces
1,693,100
In addition to the geological resource, MRDI has provided a Mineral
Potential estimate. The mineral potential category consists of material 50
to 100m away from a hole (beyond inferred resource) and was tabulated to
provide an estimate of potential, mainly down dip of current drilling. At a
1 gram/tonne cutoff, the mineral potential total for the six deposits
consists of 370,000 ounces in 3.66 million tonnes of material grading 3.17
gram/tonne gold.
El Callao is currently completing a pre-feasibility study incorporating the
new resource and focusing only on the open pit mining scenario.
Management's current view is that a large portion of the resource will
likely be open pittable, with further resources exploitable by underground
mining. The pre-feasibility study is expected to be completed by the year
end. Bema Gold is the largest shareholder of El Callao, owning
approximately 38 per cent of its shares and manages its affairs. El Callao
explores for gold in Venezuela.
El Callao Mining Corp.
Lo Increible Project - Venezuela
MRDI Resource Summary
1.0 gram cutoff
Indicated
Au
Tonnes grade Ounces
(000) (gpt) (000)
La Victoria 4,795 3.044 469.33
La Cruz 1,804 3.949 228.97
Sofia 725 2.831 65.99
Tapon 721 4.122 95.51
La Loca 139 3.512 15.74
Extranjero 304 2.689 26.29
TOTAL 8,488.2 3.30 901.8
Inferred
Au
Tonnes grade Ounces
(000) (gpt) (000)
La Victoria 9,164 3.193 940.88
La Cruz 12,507 3.978 320.58
Sofia 1,056 2.548 86.47
Tapon 743 4.131 98.61
La Loca 469 3.433 51.80
Extranjero 1,723 2.709 150.05
TOTAL 15,661.2 3.27 1,648.4
Indicated + Inferred
Au
Tonnes grade Ounces
(000) (gpt) (000)
La Victoria 13,959 3.14 1,410
La Cruz 4,310 3.97 550
Sofia 1,781 2.66 152
Tapon 1,463 4.13 194
La Loca 609 3.45 68
Extranjero 2,027 2.71 176
TOTAL 24,149.4 3.28 2,550.0
3.0 gram cutoff
Au
Tonnes grade Ounces
(000) (gpt) (000)
La Victoria 1,610 5.579 288.81
La Cruz 1,025 5.377 177.12
Sofia 291 3.885 36.38
Tapon 494 5.025 79.73
La Loca 74 4.648 10.98
Extranjero 112 4.013 14.44
TOTAL 3,604.8 5.24 607.5
Au
Tonnes grade Ounces
(000) (gpt) (000)
La Victoria 3,361 5.589 604.01
La Cruz 1,361 5.617 245.74
Sofia 278 3.975 35.49
Tapon 515 4.993 82.62
La Loca 228 4.610 33.79
Extranjero 661 3.954 84.02
TOTAL 6,403.7 5.27 1,085.7
Au
Tonnes grade Ounces
(000) (gpt) (000)
La Victoria 4,972 5.59 893
La Cruz 2,385 5.51 423
Sofia 569 3.93 72
Tapon 1,008 5.01 162
La Loca 302 4.62 45
Extranjero 773 3.96 98
TOTAL 10,008.5 5.26 1,693.1
Notes: 1
Resource Distance From
Classification a Drill Hole
Indicated Inferred
La Victoria 20m 20-50m
La Cruz 20m 20-50m
Sofia 15m 15-50m
Tapon 15m 15-50m
La Loca 15m 15-50m
Extranjero 15m 15-50m
Notes: 1
Grade Ordinary Victoria,
Estimation Kriged La Cruz,
Method Sophia and
Tapon
Inverse Distance La Loca and
Extranjero
Dilution Not factored in during
resource modeling,
addressed during mine
modeling.
Specific Overburden 1.35 gms/cm3
Gravity Saprolite 1.55 gms/cm3
Sulphide 2.74 - 2.97
Rock gms/cm3
Block Size 3m X 3m X 3m
Notes: 2
Addition differences in table above
due to rounding.
Capping 17.6 gpt for La Cruz
22.0 gpt for Victoria, Sofia, Tapon, La Loca
and Extranjero
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
regards
gmweber |
