Initial Underground Resource and Increasing
Indicated Gold Ounces by 83%
TORONTO,
Feb. 19,
2025 /CNW/ - Gold Candle Ltd. ("Gold Candle" or
the "Company") is pleased to provide an updated Mineral
Resource Estimate (MRE) at its wholly owned Kerr-Addison Project.
Indicated category increased by 1.5 million ounces (83%) of gold in
comparison to the 2023 estimate. The resource was based on a
gold price of $1,980. The current
resource estimate now includes an underground component. The
estimate was completed using cut-off grades of 0.2 g/t Au for the
open-pit and 1.2 g/t Au for underground mining. The total resource
by category presently stands at:
Indicated: 3.31M oz Au
contained in 69.2Mt @ 1.5 g/t Au
Inferred: 2.36M oz Au contained in
55.6Mt @ 1.3 g/t Au
Highlights: 2025 Updated Mineral Resource Estimate
- Larger resource: Increased 1.5M indicated ounces (83%) of gold over
2023.
- Consistent grade: Remains insensitive to gold price.
Average grade maintained at 1.41 g/t gold vs. 1.43 in 2003.
- De-risking continues: Indicated ounces presently 58% of
total resource (up from 35% in 2023).
- Robust strip ratio: Resource pit-shell waste to ore
ratio of 3.77:1, with upside for further improvements.
- Enhanced project design: Lake constrained open-pit shell
(not constrained in 2023). Underground mining potential adding
exploration upside and development optionality.
- More conservative model: Tighter ore domains and void
model, due to the addition of more historical production data.
- Significant growth potential: Kerr-Addison resources
remain open for further expansion through additional drilling
downdip, along strike to the east and through newly defined
parallel lenses in the footwall.
''Today we are pleased to announce our updated Kerr-Addison
Mineral Resource Estimate. These results are the culmination of
over two years of work by our team focused on three primary
objectives: (1) Expanding the mineral resource to include
underground potential; (2) Improving modeling quality using more
conservative parameters, and; (3) Increasing the global resource,"
said Gold Candle President and COO Leon
Leblanc. "Due to our team's hard work, we will be
accelerating our 50,000 metre drill program from the current four
drills to up to six drills. We will be focusing on additional
delineation drilling on the Kerr Addison deposit, expanding
parallel zones in the footwall, extension at depth below historical
workings and further drilling along the Larder Cadillac Break which
resulted in the recent Geminid nickel discovery. In parallel, we
will be conducting economic trade-off studies and continue the
permitting process. We are currently well funded with $20 million in the treasury. We believe 2025 will
be a pivotal year for Kerr Addison and Gold Candle."
The Kerr-Addison Project is located east of Kirkland Lake in the McGarry Township of the
Timiskaming District of Ontario,
Canada. The resource increase at Kerr-Addison is driven by
several factors, including exploration drilling that increased
confidence and grew both new and existing gold lenses, a higher
assumed gold price—rising from US$1,800 in 2023 to US$1,980 today—which allowed for a lower cut-off
grade (reduced from 0.35 g/t Au to 0.2 g/t Au). In addition, the
inclusion of additional historical engineering and geological
documents in the various models allowed for a much tighter result,
improving confidence in ounces contained and the mineralization
controls.
The mineral resource surrounds the historic Kerr-Addison
underground Mine, one of Canada's
largest gold mines, that produced 11M
oz Au from 1938 to 1996. The resource is comprised of
mineralization below historic cut-off grades in the same geological
domains as the previously mined areas. This includes mineralization
that could not be mined economically before 1996, and
newly-developed and modelled mineralization in proximity of the
historical workings. This mineral resource was estimated by
InnovExplo (a wholly-own subsidiary of Norda-Stelo) using
geological models developed by Gold Candle's technical team and
validated by InnovExplo.
|
Open-Pit Mineral
Resource (at 0.2 g/t Au cut-off)
|
|
Classification
|
Tonnes
(t)
|
Grade (g/t
Au)
|
Ounces (oz
Au)
|
|
Indicated
|
50 514 000
|
1.3
|
2 106 300
|
|
Inferred
|
38 950 000
|
1.1
|
1 382 400
|
|
Underground
Long-Hole Mineral Resource (at 1.2 g/t Au
cut-off)
|
|
Indicated
|
18 738 000
|
2.0
|
1 204 400
|
|
Inferred
|
16 661 000
|
1.8
|
986 600
|
|
Kerr Addison Gold
Project Total Resources
|
|
Total
Indicated
|
69 252 000
|
1.5
|
3 310 700
|
|
Total
Inferred
|
55 611 000
|
1.3
|
2 369 000
|
|
Notes to the 2025
MRE:
|
|
1.
|
The effective date of
the 2025 MRE is February 3, 2025.
|
|
2.
|
The independent and
qualified persons for the 2025 MRE are Martin Perron, P.Eng and
Simon Boudreau, P.Eng., both from InnovExplo, a subsidiary of Norda
Stelo.
|
|
3.
|
These mineral resources
are not mineral reserves, as they do not have demonstrated economic
viability. The mineral resource estimate follows current CIM
definitions and guidelines.
|
|
4.
|
The estimate
encompasses 146 mineralized lenses in eight (8) groups (A to H)
using the grade of the adjacent material when assayed or a value of
zero when not assayed.
|
|
5.
|
High-grade capping
supported by statistical analysis was done on raw assay data before
compositing. It was established on a group-by-group basis, varying
from 10 to 200 g/t Au for mineralized zones. Composites (1.0 m)
were calculated within the zones using the grade of the adjacent
material when assayed or a value of zero when not
assayed.
|
|
6.
|
The estimate was
completed using a sub-block model in Isatis.neo 2024.04. The parent
block size was 5m x 5m x 5m (subblocks of 1.25m x 1.25m x
1.25m).
|
|
7.
|
Grade interpolation was
obtained by Ordinary Kriging for all groups using hard
boundaries.
|
|
8.
|
Density values were
assigned at 2.82 g/cm3 for all groups.
|
|
9.
|
The mineral resource
estimate is classified as Indicated and Inferred. For groups A, B,
C, F and H, the Inferred category is defined with a minimum of
three (3) drill holes in areas where the drill spacing is less than
60 m, and reasonable geological and grade continuity have been
demonstrated. For groups A, B, C, F and H, the Indicated mineral
resource category is defined with a minimum of three (3) drill
holes in areas where the drill spacing is less than 30 m, and
reasonable geological and grade continuity have been demonstrated.
For groups D, E and G, the Inferred category is defined with a
minimum of three (3) drill holes in areas where the drill spacing
is less than 30 m, and reasonable geological and grade continuity
have been demonstrated. For groups D, E and G, the Indicated
mineral resource category is defined with a minimum of three (3)
drill holes in areas where the drill spacing is less than 15 m, and
reasonable geological and grade continuity have been demonstrated.
The initial resource classification was edited with a mix of
automated and manual methods to eliminate the spotted dog effects
considering the spatial continuity of drill holes and was run in
each mineralized solid to upgrade inferred blocks, or downgrade
indicated blocks locally, as needed.
|
|
10.
|
The MRE is locally pit
constrained. The out-pit resources meet the RPEEE requirement by
applying constraining volumes to all blocks (Selective underground
long-hole extraction scenario) using Deswik Mineable Shape
Optimizer (DSO). The RPEEE requirement is satisfied by having
cut-off grades based on reasonable parameters for surface and
underground extraction scenarios, minimum widths, and constraining
volumes. The estimate is presented for potential underground
scenarios (realized in Deswik) over a minimum width of 3 m for
blocks 45 m high by 30 m long at a cut-off grade of 1.2 g/t Au for
the long-hole method. Cut-off grades reflect the currently defined
geometry and dip of the mineralized envelopes. The potential
open-pit component of the 2025 MRE is locally constrained by an
optimized surface in GEOVIA Whittle™ using a rounded cut-off grade
of 0.20 g/t Au. The surface cut-off grade was calculated using the
following parameters: mining cost = CA$7.00/t; mining overburden
cost = CA$4.90/t; processing & transport cost = CA$11.82/t;
G&A cost = CA$3.36/t; selling costs = CA$5.00/t; gold price =
US$1,980/oz; USD/CAD exchange rate = 1.30; overburden slope angle =
25°; bedrock slope angle = 50° to 55°; and mill recovery = 90%. The
underground cut-off grade was calculated using the following
parameters: mining cost = CA$57.50/t; processing & transport
cost = CA$13.60/t; G&A cost = CA$6.72/t; selling costs =
CA$5.00/t; gold price = US$1,980/oz; USD/CAD exchange rate = 1.30
and mill recovery = 90%.Cut-off grades should be re-evaluated in
light of future prevailing market conditions (metal prices,
exchange rates, mining costs etc.).
|
|
11.
|
The number of metric
tonnes was rounded to the nearest thousand, following the
recommendations in NI 43-101, and any discrepancies in the totals
are due to rounding effects. The metal contents are presented in
troy ounces (tonnes x grade / 31.10348) rounded to the nearest
hundred. Numbers may not add up due to rounding.
|
|
12.
|
The independent and
qualified person for the 2025 MRE is not aware of any known
environmental, permitting, legal, political, title-related,
taxation, socio-political, or marketing issues that could
materially affect the mineral resource estimate.
|
The new resource also allows Gold Candle to better identify high
grade vectors within the mineralized envelope as displayed in
Figure 1. Grade distribution as shown below supports the company's
approach to increase both the size of the resource and the overall
grade profile by leveraging deeper targets as part of the soon to
be released updated exploration and development plans for
Kerr-Addison.
Exploration: Strategy
Kerr-Addison resources remain open for further expansion through
additional drilling downdip, along strike to the east and through
newly defined parallel lenses in the footwall. For 2025, Gold
Candle is planning an aggressive exploration program marked by over
50,000 meters of drilling on Kerr-Addison and regional targets.
Currently two rigs are drilling the former party wall
between Kerr Addison and Chesterville, testing this panel between
800-1500 m vertical depth. A third
rig is testing a near mine target 300
m east of Chesterville from
800m to 1000
m vertical depth. A fourth rig is drilling along strike to
the east along the same Cadillac Larder Lake Break on a more
regional program.
The exploration team is currently undertaking a targeting
exercise to optimize the 2025 drilling strategy, leveraging the
increased drilling density below 600m
resulting from the last year of exploration. This has contributed
to improving the geologic model, geochemical vectoring coverage and
upgrading confidence level as reflected in the 2025 MRE.
Kerr-Addison focused targets include:
- Extending the main mineralized trend down to 2,000 meters
vertical depth
- Expansion of footwall stacked lens south of the historic
mine
- Up/down plunge extensions ore-shoots east of Chesterville
- Near mine mineralization east of Kerr-Addison
- Conversion of inferred resources to the indicated resource
category
These target areas in addition to regional targets are core to
Gold Candle's exploration pipeline and will be part of the team's
exploration plan that will be released in the coming months.
Near-term Catalysts
- Release of updated exploration and development plans for
Kerr-Addison (H1 2025)
- Release of Geminid nickel sulfide zone initial Mineral Resource
Estimate adjacent to Kerr-Addison (H1 2025)
- Filing of NI 43-101 technical report for Gold Candle's property
(H1 2025)
- Initiation of scoping study to investigate potential mine plan
and production profile for Kerr-Addison (H1 2025)
- Preliminary economic assessment (PEA) decision based on scoping
study results (H2 2025)
Gold Candle's upcoming conference participation
- Feb. 23-26: BMO Global Metals,
Mining & Critical Minerals Conference in Florida
- Feb. 27-28: Red Cloud Pre-PDAC
2025 Mining Showcase in Toronto
- March 2-5: PDAC 2025 in
Toronto (Booth 2616A, March 2-3)
About the Kerr-Addison Deposit
The Kerr-Addison deposit is an orogenic gold deposit that is
located in the late Archean Abitibi greenstone belt of the Superior
Province. Mineralization is in the immediate structural footwall of
the Larder-Lake-Cadillac Deformation zone (LLCDZ), which is defined
by a high-strain zone near the contact between the Timiskaming
assemblage and a panel of ultramafic and mafic volcanic rocks,
known as the Larder Lake group.
This deformation zone is a 250 km, east-west trending, regional
crustal scale fault, that extends from Matachewan, Ontario to Val-d'Or, Québec, which has a fundamental
control on the distribution of gold deposits.
Gold occurs primarily in a dense stockwork of veins, as free
gold, and is also associated with fine-grained, disseminated pyrite
and arsenopyrite. Carbonate ore historically accounted for
production of over 3.7M oz Au in an
alteration assemblage of green-chromium-muscovite (fuchsite),
quartz, and magnesite-ankerite with intense quartz carbonate
veining. Flow ore historically accounted for production of ~
7.1M oz Au in an alteration
assemblage of quartz-chlorite and carbonate, with variable amounts
of sericite, albite, pyrite, and graphite. In general, flow ore
bodies are located in the structural footwall (south) of the
green-carbonate ore bodies.
QA/QC and Data Verification
Gold Candle has a comprehensive QA/QC program that meets industry
standards. The sampling data used for the mineral resource estimate
was verified by InnovExplo. Drillholes used in the mineral
estimation were selected at random and the collar, survey and assay
data were compared to original sources. InnovExplo is satisfied
that the database is acceptable for inclusion in a mineral resource
estimation.
Comparison with Previous Mineral Resource Estimate
The updated mineral resource estimate supersedes the 2023 MRE of
32.5Mt @ 1.7 g/t Au totalling 1.8Mozs in the indicated category and
79.1Mt @ 1.3 g/t Au totalling 3.4Mozs in the inferred category
detailed in the NI 43-101 Technical Report on the Kerr-Addison
Project, Virginiatown, Ontario,
Canada August 21, 2023 by SLR
Consulting (Canada) Ltd. and filed
on SEDAR+. The previous resource estimate was limited to a
pit-constraint resource while the 2025 estimate includes an
underground component below the main pit-shell. The new
resource estimate also includes a significant improvement in
confidence with over 50% of the contained ounces now reported in
the Indicated category. The updated estimate includes results from
an additional 20,400m of drilling by
Gold Candle (September 8, 2024:
database cut-off date) and 14,250m of
historical results acquired by Gold Candle in the later part of
2023. Digitization and validation of the newly incorporated
historical data further demonstrates quality of the deposit with
strong continuity and significant upside for exploration at depth
and along strike.
The updated estimate is supported by a rebuilt historical
infrastructure and void model done by Gold Candle's technical team
along with InnovExplo support. Validation of both models was done
by Gold Candle and InnovExplo before being incorporated in the
mineral resource estimation. Depletion models and mineralization
domains were developed by Gold Candle's team using historical
geology, survey and production prints recovered in 2023. The
documents underwent a strict process of cleaning, restoration,
scanning, digitization, georeferencing and validation before being
used for modeling. All documents remain stored in a controlled
environment on the project property. Mineralization domains were
built for the various mineralized lenses separated in two main
groups, high grade domains and low-grade domain. The modeling
improvement allowed for a higher level of geology controls and a
more restrictive interpolation exercise for lower grade values.
Qualified Persons
The mineral resource estimate was conducted by InnovExplo (a
wholly-own subsidiary of Norda-Stelo) under the supervision of
Martin Perron, P.Eng. and
Simon Boudreau, P.Eng. , both are
Independent Qualified Persons under NI 43-101 standards.
The technical information in this news release has been reviewed
and approved by Dean Crick P.Geo MSc, Vice-President of Exploration
for Gold Candle, who is a Qualified Person under NI 43-101
standards.
An independent technical report prepared in accordance with the
requirements of NI 43-101 will be completed within 45 days of this
news release.
About Gold Candle
Gold Candle is a privately funded Canadian exploration company led
by a diverse and highly experienced group of mining professionals.
In 2015, the Company acquired claims over the historic Kerr-Addison Gold Mine and surrounding area in
the McGarry Township, located in the Timiskaming District of
Ontario. Our approach to
responsible mineral exploration is to perform our activities in a
manner that benefits local communities, employees and shareholders
and respect people and the environment.
CAUTIONARY STATEMENT:
This News Release includes
certain "forward-looking statements". All statements other than
statements of historical fact included in this release, including,
without limitation, statements regarding the ability to expand the
mineral resource to include underground potential, improve modeling
quality using more conservative parameters, increase the global
resource, increase the size of the resource and the overall grade
profile, extending the main mineralized trend down to 2,000 meters
vertical depth, expansion of footwall stacked lens south of
the historic mine, conversion of inferred resources to the
indicated resource category, initiation of a scoping study and
preliminary economic assessment within contemplated time periods ,
complete future drilling programs and infill sampling, exploration
results, and future plans and objectives of Gold Candle, are
forward-looking statements that involve various risks and
uncertainties. Forward-looking statements are frequently
characterized by words such as "may", "is expected to",
"anticipates", "estimates", "intends", "plans", "projection",
"could", "vision", "goals", "objective" and "outlook" and other
similar words. Although Gold Candle believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, there can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from Gold Candle's expectations include risks and
uncertainties related to exploration, development, operations,
commodity prices and global financial volatility, risk and
uncertainties of operating in a foreign jurisdiction as well as
additional risks described from time to time in the filings made by
Gold Candle with securities regulators.
SOURCE Gold Candle Ltd.
