 |
 | |
 |  |
| We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level. |
Going,Going,Going up this morning GMD RESOURCE CORP.'S DISCOVERY PROJECT - PROBABLE GEOLOGIC ORE RESERVES, PROFITABLE OPEN PIT (1,787,750 OUNCES GOLD) VANCOUVER, August 26 /CNW/ - At GMD's 100% owned Discovery Project located 100 km north of Yellowknife, ongoing diamond drilling has identified probable geologic ore reserves in excess of 10 million tons, at a grade of 0.174 ounces gold per ton. These reserves are located in the Ormsby Zone. Based on operating costs of C$28.74 per ton (U.S. $150 per ounce) estimated annual profits are C$45 million (U.S. $236 per ounce). In the Ormsby Zone, probable geologic ore reserves are 1,787,750 ounces gold and possible ore reserves are an additional 1,500,000 ounces gold. This provides a solid base for the development of an open pit mine. The Company is also very encouraged by surface reconnaissance and structural geology north of the Ormsby Zone that have yielded economic grade samples from trenches and exposed veins over a 700-foot strike. This supports the Company's assessment of a major resource that extends over the full length of the Discovery Project (see table on assays). The Discovery Shear Zone is a meta-volcanic outcrop measuring 8,000 feet long by 600 feet wide. The entire Discovery Shear Zone, including the Ormsby zone, has the same geophysics, geochemistry, structure, lithology and quartz outcroppings. Approximately 15% of the property has been explored to date. Ormsby Zone Two diamond drill rigs have concentrated drilling on a sulphide bearing block that extends 400 feet (east/west) by 3,000 feet (north/south) and 1,100 feet deep. Geology and sample assays have shown that sulphides are present over the full length of the diamond drill holes and ore values are present in quartz veins with ore haloes around these veins. The average ore mineralization in all holes is 13.7% of the length of the diamond drill hole, giving a ratio of 6.3 to 1 (sulphide to ore). The Ormsby Zone is open in all directions, north-south-east-west and at depth. The initial 9 structural holes (NDM 16 to NDM 24) established the zone of mineralization from 100 west to 300 east. Twenty-two ore definition holes drilled on approximately 100-foot spacing (NDM 25 to NDM 27 and NDM 37 to NDM 58) have established the continuity of the zone from 500 north to 3,500 north, a grade of 0.174 ounces gold per ton and a sulphide/ore ratio of 6.3 to 1. This ratio will be used in an open pit mine design, a flexible mining system that will profitably recover this resource. As stated above, probable geologic ore reserves have been calculated in excess of 10 million tons at a grade of 0.174 ounces gold per ton. Applying a grade factor of 12% to cover operating parameters, the mill head grade will be 0.153 ounces per ton (0.174 x 0.88). Operating costs are estimated at C$28.74 per ton. GMD Economics US $/oz ------------- ------- Annual Tons Milled 992,080 Mill Grade (oz/ton) 0.153 Ounces/Year (at 90% Recovery) 136,609 Revenue/Year (Gold U.S. $386 at 1.39 Ex) C$73,296,412 $386 Annual Operating Costs ($28.74/ton) C$28,512,379 $150 Annual Profits (Before Taxes) C$44,784,033 $236 With the exception of hole NDM 41 which appears to have been drilled into sediments, all 1996 diamond drill holes have intercepted multiple zones of mineralization. Surface reconnaissance and structural geology over the northern end of the Ormsby Zone (1,260 north to 5,000 north) has made a new discovery which yields economic grades from trenches and exposed veins (see table on assays). Company geologists are currently extending this zone by mapping towards the original Discovery Mine approximately 3,000 feet north. Discovery II Zone Nine holes, NDM 28 to NDM 36, were drilled in this zone. This zone will be integrated into the overall development as the Ormsby zone extends northward. Gold Reserves/Ormsby Zone The original probable geologic gold reserve of 79,800 ounces has been increased to a probable geologic reserve of 1,787,750 ounces. As the Ormsby Zone is open in all directions, the possible reserves are further estimated at an additional 1,500,000 ounces gold. Other zones (85% of the property) continue to be explored. In conclusion, Management is exceptionally pleased with exploration results and is encouraged by the overall potential of this property which is progressing towards the original Discovery Mine, where further ore reserves are known to exist. SIGNIFICANT CHIP AND GRAB SAMPLES Sample Type Northing Easting Gold (oz/ton) ------------------------------------------------------------------------ Grab samples: 1980 220 0.201 1820 196 0.439 1860 45 0.604 1880 50 0.718 1684 147 0.227 1650 155 2.661 1680 202 0.305 1690 201 0.114 1576 200 0.140 1580 180 0.398 1614 170 0.951 2075 220 0.139 2040 230 0.651 2089 258 0.278 Rock chip samples 1690-1695 200 0.355 1614 169 0.148 ------------------------------------------------------------------------ DRILLING PROGRESS SUMMARY Zone Total Footage Number of Holes ------------------------------------------------------------------ Discovery Project 39,956 feet 53 holes Discovery II 6,026 feet 9 holes Ormsby 33,930 feet 44 holes ------------------------------------------------------------------ BUSINESS/PHOTO EDITORS: A copy of GMD Resource Corp.'s map of the Discovery Project is available by fax by calling Canada NewsWire Vancouver at (604) 669-7764. For further information: V.V. Jutronich, Vice-President, COO at (604) 662-3350 or 1-800-808-3350. E-mail: gmdres(at)portal.ca. Internet: stockgroup.com 08:33e 26-AUG-96 | ||||||||||||||
|
| Home | Hot | SubjectMarks | PeopleMarks | Keepers | Settings |
| Terms Of Use | Contact Us | Copyright/IP Policy | Privacy Policy | About Us | FAQ | Advertise on SI |
| © 2025 Knight Sac Media. Data provided by Twelve Data, Alpha Vantage, and CityFALCON News |