Conway Resources Provides Summary of Updated NI 43-101 Report on the Belleterre Mine Property
July 27 2010 - 5:00AM
Marketwired Canada
Conway Resources Inc. ("Conway" or the "Company") (TSX VENTURE:CWY) is pleased
to provide a summary of the updated NI 43-101 report on its wholly-owned
Belleterre Mine property in Guillet Township, Quebec, which was filed with SEDAR
on June 28, 2010.
Discovered in 1930 by McIntyre Porcupine Mines, the Belleterre mine operated
between 1936 and 1959 at a production rate of 350 tons per day with four shafts.
Gold was mined from gold-bearing zones located along a 3.2 km strike length. A
total of 2.18 million tonnes of ore grading an average of 10.73 g/t Au was
extracted, primarily from Vein 12 (95% of production).
According to an internal report from 1960, the property hosts a resource of
172,410 tonnes grading an average of 6.42 g/t Au in Vein 14, and 317,600 tonnes
at 3.43 g/t Au in Vein 12W. As no qualified person has done sufficient work to
classify the historical estimate as current mineral resources, Conway is not
treating the historical estimate as current mineral resources, and the
historical estimate should not be relied upon.
2008 Drill Results
From December 2008 to January 2009, a total of 4,949 metres in 18 holes were
drilled on Veins 14 and 16 and associated subsidiary conjugate auriferous
structures. These drill holes have also led to the identification of other
networks and small vein and stringer zones between Veins 14 and 16.
Vein 14
This gold structure is located 210 metres north of Shaft No.1. The vein has been
traced over more than 300 metres on strike and down to 400 metres. This
structure is open at depth below the deepest known level, the 2250 level (685
metres), and remains open East and West along strike. The most significant assay
results for Vein 14 were 9.67 g/t Au over 0.64 metres; 8.33 g/t Au over 2.06
metres; 4.39 g/t Au over 2.0 metres; 2.42 g/t Au over 2.27 metres and 2.41 g/t
Au over 2.01 metres.
Vein 16
Vein 16 is located on and near Shaft No.1. The vein was identified as far down
as level 1800 (550 metres) when McIntyre was operating the mine. The drilling
program has demonstrated that Vein 16 is subparallel and concordant to Vein 14.
It extends laterally over a distance of 240 metres, and is open laterally to the
East and West and at depth. The most significant Vein 16 intersections returned
26.35 g/t Au over 2.61 metres; 7.08 g/t Au over 1.0 metre; 1.84 g/t Au over 0.87
metres and 1.16 g/t Au over 1.42 metres.
Other Identified Veins
------------------------------------------------------------------------
Veins Description
------------------------------------------------------------------------
12 900 metres long, developed and mined down to 450 metres.
Source of more than 95% of the ore extracted.
------------------------------------------------------------------------
These two veins show a possible extension under level 1275
(390 metres), where mining was completed. Vein 12W hosts
historical resources of approximately 317,600 tonnes at 3.43
12W g/t Au (internal report by McIntyre Mines). Vein 12W returned
26 some significant gold bearing values from a 2006-07 sampling
program, including 2.02 g/t Au over 0.5 metres; 2.06 g/t Au
over 0.5 metres and 4.05 g/t Au over 0.5 metres. Approximately
74,000 tonnes of ore were mined from Vein 26 at an average
grade of 9.02 g/t Au.
------------------------------------------------------------------------
Vein 2 was identified on five levels in the mine, over
2 distances of 90 to 150 metres. Sampling by Riverton Resources
made it possible to define a content of from 1.56 to 21.46 g/t
Au over 5 metres over 30 metres of sampling.
------------------------------------------------------------------------
20 This vein was discovered in the final years of mining. It is
located to the south of and below the eastern end of Vein 12.
------------------------------------------------------------------------
This vein was explored in the various drifts between levels
125 and 500 over a distance of 152 metres. On surface,
11 preliminary sampling by Riverton Resources returned values
ranging from 4.67 g/t Au over 2.4 metres to up to 33.28 g/t Au
over 0.61 metres, with an average grade of 11.20 g/t Au over
1.28 metres, over 33 metres of sampling on the vein.
------------------------------------------------------------------------
This vein was developed at level 500 over a distance of
18 approximately 75 metres. Diamond drilling confirmed that the
vein extends to the surface.
------------------------------------------------------------------------
Vein 1 extends eastward from Shaft No. 2 along the northern
1 side of the Mill Creek fault. It outcrops in trenches over a
distance of 450 metres. Visible gold was observed in the vein
during previous work.
------------------------------------------------------------------------
Vein 7 is perpendicular to Vein 1 and could be transverse-
7 type. Some underground development work was done on this vein
during mining. The vein was identified over more than 24
metres with an average grade of 16.48 g/t Au over 0.55 metres.
------------------------------------------------------------------------
6 Very little work was done on these transverse-type veins. They
8 are located close to Shaft No.1 and No.4. All these veins were
18 identified by drilling or on surface.
------------------------------------------------------------------------
These veins were identified approximately 700 metres southwest
of Shaft No.2. The potential of Vein 30 was tested by
15 trenching followed by a 2.4-metre deep bulk sample. Three
30 holes drilled in 1986 by Exploration Brosnor intersected the
vein over a length of 3 metres at an average grade of 7.78 g/t
Au.
------------------------------------------------------------------------
These east-west striking veins are located approximately 1 km
19 southwest of Shaft No.2 and have returned significant gold
23 values over more than 600 metres. The work done on Vein 19 in
2001 and later by Belleterre Mining demonstrated the
continuity of the host structure.
------------------------------------------------------------------------
These little-explored veins have returned gold values ranging
5 from a few ppb to more than 31.1 g/t Au. The work done in 2001
28 and later by Belleterre Mining on Vein 5 demonstrated the
29 continuity and width of the host structure. Mapping in the
summer of 2006 demonstrated the significant potential of Veins
28 and 29, which returned values of over 7.6 g/t Au.
------------------------------------------------------------------------
Exploration Potential
The authors of the report believe that only part of the gold resource was mined
and that the property still hosts several other favourable exploration targets.
Previous reports indicate the existance of at least 21 veins on the property.
Vein 12, which was the main source of gold production in the 1950s and 1960s,
still has interesting, significant potential for future resources near surface
in the vicinity of Shaft No.1, at depth between levels 700 and 1800, and to the
east between levels 700 and 1100 and sections 2900 and 3200. Veins 14 and 16 are
still a priority, as they remain open in all directions. Several other veins,
such as 12W, 26, 11, 1, 7 in particular, have not been sufficiently explored and
require surface trenching and diamond drilling on their extensions.
In the coming weeks, the Company will provide the final results of the
geophysical surveys carried out in the fall of 2009, including ground
magnetometric, VLF and IP on a 18-km grid line and IP in certain diamond drill
holes, as well as its proposed exploration work for the rest of 2010.
The geological information is taken from the NI 43-101 technical report for the
Belleterre mine property authored by Alain-Jean Beauregard and Daniel
Gaudreault, Ing., of Geologica Groupe-Conseil Inc. of Val-d'Or. Jean-Louis
Robert, D.Sc. Geol., Vice President, Exploration of Conway and a qualified
person under National Instrument 43-101, has reviewed the contents of this press
release.
Forward-Looking Statements
This press release contains certain forward-looking statements that might
involve uncertainty, time frames, and/or known and unknown risks beyond the
Company's control. The Company's actual results, performance and achievements
may differ materially from the results, performance and achievements implied by
such forward-looking statements. Factors that could cause actual results to
differ from those implied by forward-looking statements include, in particular,
changes in the market gold price, the value of the Canadian dollar or the grade
of the ore mined and unanticipated difficulties in mining activities that could
have an impact on operating revenues and costs, as well as uncertainty regarding
government regulations.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange Inc.) accepts
responsibility for the adequacy or accuracy of this press release.
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