TORONTO,
Dec. 13, 2012 /CNW/ - Moss Lake Gold
Mines Ltd. (TSXV: MOK) is pleased to announce results of recently
completed metallurgical, grinding and environmental testwork on the
wholly-owned Moss Lake gold deposit located 100 kilometres due west
of Thunder Bay, Ontario.
The work was completed by SGS Canada Inc. (SGS
Lakefield). Fundamental aspects of the results of the study
suggest:
- The gold is free-milling by conventional cyanide leaching at
reasonable grind sizes.
- Recoveries from these methods ranged from 79% to 93% over a
48 hour retention time.
- Reasonable reagent consumption may be expected to attain
these recoveries.
- Recoveries from low grade composites (0.53-0.57 gAu/tonne)
ranged from 79% to 83% with residues (tails) grades ranging from
0.09 to 0.12 gAu/tonne.
- The mineralization is clean with respect to deleterious
elements with low to undetectable concentrations of heavy metals,
arsenic, selenium, lead and uranium as determined by
ICP-Scans.
- ABA tests (acid/base accounting) indicate tailings are
unlikely to be acid-generating
- Comminution (grinding) testing suggests the applicability of
conventional ball mills with electrical consumption of 18.3
kilowatt hours per metric tonne (a medium to hard grinding
material).
This work establishes the basic processing and
favourable environmental parameters for a suite of composite
samples selected to provide a representative sample of the range of
expected grades for both the Main Zone and QES Zone.
The composite samples were each composed of 15
individual NQ core sample quarter-inch crushed assay rejects.
The bulk sample for milling/grinding tests was
procured from previous underground drifting on the 230-foot level
within the Main Zone.
The summarized leaching, recovery, reagent
consumption, head grade and residue assays for the composite
samples as determined by SGS are provided in the attached
table.
George Mannard,
President, commented "The mineralization at Moss Lake is clean and
amenable to conventional milling technology. We were
particularly pleased with the recoveries and low tail (residue)
grades of the lower grade composites. The Moss Lake deposit
has a very broad, low grade halo which, over the course of a
potential mine life, could generate significant incremental
tonnages, low grade stockpiles and potentially significantly
reduced stripping ratios. The deposit has characteristics
which significantly gear it to higher, future gold prices."
ONGOING WORK
The Company has engaged InnovExplo Consulting Group of Val d'Or, Quebec to lead a Preliminary
Economic Assessment (PEA) study of the Moss Lake gold
deposit. The principal purpose of the study at this stage is
to provide the stock market with a preliminary basis on which to
value the Company's assets. This study will follow the
prescribed format for disclosure of technical information defined
in National Instrument 43-101 as defined by The Canadian Securities
Administrators (CSA).
The work will assess existing geological and
resource models, update geological interpretation and resource
estimate (if warranted), develop an optimized mining scenario,
preliminary operating and capital cost estimates and an economic
analysis. Of particular importance is the estimation of the
economic conditions required (ie gold price) to generate reasonable
returns based on this assessment.
ABOUT THE MOSS LAKE GOLD DEPOSIT
On July 14, 2010, a revised mineral
resource estimate was released. This work was completed by
independent consultants Watts, Griffis and McOuat Limited and
incorporated results of the 2008 drilling program. Tonnage
and contained ounces of gold increased by 8% over previous
estimates and 65% of the resources were upgraded to the indicated
resource category.
| MOSS LAKE MINERAL
RESOURCES |
| Prepared by WGM (using a
0.001 opt Au cut-off and 0.300 opt Au top
cut) |
| Category |
Zone |
Tons
(million) |
opt Au |
Contained Au
('000 oz) |
| Indicated |
Main Zone |
12.5 |
0.023 |
291 |
| |
QES Zone |
27.8 |
0.029 |
816 |
| |
Total Indicated |
40.3 |
0.027 |
1,107 |
| |
|
|
|
|
| Inferred |
Main Zone |
16.5 |
0.025 |
418 |
| |
QES Zone |
4.2 |
0.025 |
107 |
| |
Total Inferred |
20.7 |
0.025 |
525 |
| |
|
| Notes: |
|
| |
(1) |
This Mineral Resource estimate was prepared by Mr.
Kurt Breede, P.Eng., who is an independent Qualified Person, and is
effective July 14th, 2010.
|
| |
(2) |
Mineral Resources which are not Mineral Reserves do
not have demonstrated economic viability. The estimate of
Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical, marketing, or
other relevant issues.
|
| |
(3) |
The quantity and grade of reported Inferred
resources in this estimation are uncertain in nature and there
has been insufficient exploration to define these Inferred
resources as an Indicated or Measured Mineral
Resource and it is uncertain if further exploration will result in
upgrading them to an Indicated or
Measured Mineral Resource category.
|
| |
(4) |
The Mineral Resources were estimated using the
Canadian Institute of Mining, Metallurgy and
Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,
Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and
adopted by CIM Council
December 11, 2005.
|
| |
(5) |
This estimate was prepared using an inverse
distance interpolated block model and reported within an
interpreted wireframe of the mineralized envelope at a 0.015opt Au
(or 0.5 g/tonne Au) limit and
excludes all blocks with a grade below 0.001 opt Au. The cut-off
grade of 0.015 opt Au was selected as
the basis on which the two Zones were modelled in the geological
interpretation, and considered the
parameters that would likely determine the economic viability of an
open pit mining operation at Moss
Lake. These included likely mine dilution, metallurgical
recoveries, operating costs and a gold price of
US$900/oz (at an exchange rate of US$1:C$1.10),
|
| |
(6) |
The resource estimate extends to a depth of 870
feet which is deemed a practical cut-off to maintain
reasonable stripping ratios in a surface mining operation. |
Management of Moss Lake believes the pragmatic
application of blasthole grade control techniques on a bench by
bench basis offers potential to realize better grades in an
eventual mining operation. The following table demonstrates
the cut-off grade sensitivity of Moss Lake Mineral Resource
estimates.
| MOSS LAKE MINERAL RESOURCES
CUTOFF GRADE SENSITIVITY |
Cut-off Grade
(opt) |
Main Zone
(million Tons) |
Au
(opt) |
QES Zone
(million Tons) |
Au
(opt) |
Total
(million Tons) |
Au
(opt) |
Contained Au
('000 oz) |
| Indicated |
|
|
|
|
|
|
|
| 0.001 |
12.5 |
0.023 |
27.8 |
0.029 |
40.3 |
0.027 |
1,107 |
| 0.010 |
9.3 |
0.029 |
25.1 |
0.032 |
34.3 |
0.031 |
1,069 |
| 0.015 |
7.2 |
0.034 |
21.7 |
0.035 |
28.8 |
0.035 |
998 |
| 0.020 |
5.0 |
0.041 |
17.0 |
0.040 |
22.0 |
0.040 |
881 |
| Inferred |
|
|
|
|
|
|
|
| 0.001 |
16.5 |
0.025 |
4.2 |
0.025 |
20.7 |
0.025 |
525 |
| 0.010 |
13.2 |
0.030 |
3.8 |
0.027 |
17.0 |
0.029 |
500 |
| 0.015 |
10.1 |
0.035 |
3.1 |
0.030 |
13.3 |
0.034 |
454 |
| 0.020 |
8.0 |
0.041 |
2.0 |
0.035 |
10.0 |
0.040 |
397 |
The mineralized material extends for 8,500 feet
of strikelength and remains open at depth. The resource estimate is
restricted to a depth of 870 feet from surface.
A 1,000 foot long gap exists between the Main
and QES zones defined by limited previous drilling. This area
offers potential to increase resources with further rigorous
drilling.
The updated resource estimate includes 15 drill
holes completed in 2008 in order to validate historical data and
refine the resource models. This work updates a previous
report completed in 2006 (www.sedar.com - Technical Report,
November 27, 2006, Moss Lake Gold
Mines Ltd.).
TECHNICAL DISCLOSURE
This press release was prepared by George
Mannard, P.Geo.and President of Moss Lake Gold Mines
Ltd. Summary analytical results provided in the attached
table were prepared by SGS Canada Inc. and reviewed by Inna Dymov, P.Eng., Manager, Gold
Group-Metallurgical Operations.
Moss Lake Gold Mines Ltd. is a 57.6% owned
subsidiary of Canadian gold producer Wesdome Gold Mines Ltd. (TSX:
WDO). Moss Lake shares trade on the TSX Venture Exchange
under the symbol "MOK". Moss Lake Gold Mines Ltd. currently
has 47.0 million shares issued and outstanding.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This news release includes certain
forward-looking statements concerning the future performance of
Moss Lake's business, operations and financial performance and
condition, as well as management's objectives, strategies, beliefs
and intentions. Such statements include, but are not limited
to, statements concerning the intention of Wesdome to convert the
Note.. Forward-looking statements are frequently identified
by such words as "may", "will", "plan", "expect", "anticipate",
"estimate", "intend" and similar words referring to future events
and results. Forward-looking statements are based on the current
opinions and expectations of management. All forward-looking
information is inherently uncertain and subject to a variety of
assumptions, risks and uncertainties, including the speculative
nature of mineral exploration and development, fluctuating
commodity prices, competitive risks and the availability of
financing, as described in more detail in recent securities filings
available at www.sedar.com. Actual events or results may differ
materially from those projected in the forward-looking statements
and Moss Lake cautions against placing undue reliance
thereon. Moss Lake and its management assume no obligation to
revise or update these forward looking statements.
| Table 1 - Summary of Whole Ore
Cyanidation Results |
| |
|
|
|
|
|
|
|
|
|
|
| Zone |
|
Sample |
|
Test
# |
Target
Size |
Reagent Addition
kg/t CN Feed |
Reagent Cons.
kg/t CN Feed |
% Extraction
Au |
Residue
g/t |
Head (calc)
g/t |
| |
|
|
|
|
μm |
NaCN |
CaO |
NaCN |
CaO |
7h |
24h |
48h |
Au |
Au |
| Main |
|
2 |
|
CN 1 |
150 |
1.04 |
0.40 |
0.36 |
0.39 |
69 |
81 |
83 |
0.09 |
0.53 |
| Main |
|
2 |
|
CN 2 |
106 |
1.20 |
0.38 |
0.50 |
0.35 |
66 |
78 |
83 |
0.09 |
0.53 |
| Main |
|
2 |
|
CN 3 |
53 |
1.49 |
0.36 |
0.78 |
0.32 |
64 |
81 |
83 |
0.09 |
0.54 |
| Main |
|
4 |
|
CN 4 |
150 |
0.85 |
0.40 |
0.18 |
0.37 |
69 |
77 |
81 |
0.19 |
0.98 |
| Main |
|
4 |
|
CN 5 |
106 |
1.01 |
0.39 |
0.33 |
0.36 |
71 |
81 |
82 |
0.17 |
0.94 |
| Main |
|
4 |
|
CN 6 |
53 |
1.43 |
0.29 |
0.76 |
0.26 |
67 |
82 |
84 |
0.16 |
0.97 |
| Main |
|
6 |
|
CN 7 |
150 |
0.75 |
0.42 |
0.07 |
0.39 |
72 |
78 |
79 |
0.23 |
1.08 |
| Main |
|
6 |
|
CN 8 |
106 |
0.94 |
0.42 |
0.27 |
0.38 |
74 |
79 |
80 |
0.23 |
1.13 |
| Main |
|
6 |
|
CN 9 |
53 |
1.39 |
0.32 |
0.72 |
0.29 |
71 |
81 |
83 |
0.20 |
1.14 |
| Main |
|
8 |
|
CN 10 |
150 |
0.92 |
0.37 |
0.22 |
0.33 |
71 |
75 |
79 |
0.40 |
1.88 |
| Main |
|
8 |
|
CN 11 |
106 |
1.23 |
0.32 |
0.56 |
0.29 |
72 |
77 |
80 |
0.37 |
1.81 |
| Main |
|
8 |
|
CN 12 |
53 |
1.47 |
0.37 |
0.80 |
0.34 |
72 |
80 |
83 |
0.33 |
1.95 |
| QES |
|
2 |
|
CN 13 |
150 |
0.93 |
0.37 |
0.22 |
0.36 |
73 |
74 |
79 |
0.12 |
0.56 |
| QES |
|
2 |
|
CN 14 |
106 |
1.26 |
0.32 |
0.58 |
0.29 |
77 |
81 |
81 |
0.10 |
0.53 |
| QES |
|
2 |
|
CN 15 |
53 |
1.69 |
0.33 |
1.04 |
0.30 |
70 |
84 |
83 |
0.10 |
0.57 |
| QES |
|
4 |
|
CN 16 |
150 |
1.35 |
0.25 |
0.70 |
0.22 |
42 |
62 |
91 |
0.14 |
1.49 |
| QES |
|
4 |
|
CN 17 |
106 |
1.46 |
0.28 |
0.81 |
0.23 |
43 |
62 |
91 |
0.14 |
1.59 |
| QES |
|
4 |
|
CN 18 |
53 |
1.67 |
0.23 |
1.03 |
0.20 |
44 |
63 |
93 |
0.12 |
1.58 |
| QES |
|
6 |
|
CN 19 |
150 |
1.06 |
0.35 |
0.40 |
0.33 |
39 |
58 |
90 |
0.17 |
1.58 |
| QES |
|
6 |
|
CN 20 |
106 |
1.21 |
0.39 |
0.55 |
0.35 |
43 |
59 |
92 |
0.14 |
1.68 |
| QES |
|
6 |
|
CN 21 |
53 |
1.39 |
0.37 |
0.73 |
0.33 |
44 |
60 |
93 |
0.12 |
1.67 |
| QES |
|
8 |
|
CN 22 |
150 |
0.88 |
0.35 |
0.18 |
0.33 |
38 |
63 |
85 |
0.25 |
1.63 |
| QES |
|
8 |
|
CN 23 |
106 |
0.93 |
0.36 |
0.24 |
0.34 |
43 |
64 |
87 |
0.22 |
1.75 |
| QES |
|
8 |
|
CN 24 |
53 |
1.40 |
0.29 |
0.74 |
0.26 |
43 |
66 |
90 |
0.18 |
1.73 |
| QES Comp |
|
2/4 Blend |
|
CN 25 |
53 |
1.50 |
0.14 |
0.75 |
0.13 |
72 |
80 |
84 |
0.11 |
0.72 |
| QES Comp |
|
2/4 Blend |
|
CN 26 |
53 |
1.48 |
0.17 |
0.76 |
0.17 |
71 |
79 |
84 |
0.12 |
0.72 |
All cyanidations
were conducted at 40% solids, 0.5g/L NaCN,pH 10.5-11.0 and for 48
hours
|
SOURCE Moss Lake Gold Mines Ltd.