TORONTO, Feb. 20, 2013 /CNW/ - Moss Lake Gold Mines Ltd.
(TSX-V: MOK) is pleased to announce a material increase in resource
estimates at its 100%-owned Moss Lake gold deposit located 100
kilometres due west of Thunder Bay,
Ontario. These results were generated from a
comprehensive compilation and verification of a mountain of
historic data and development of a new structure/alteration-based
geological model by InnovExplo Inc., independent consulting
geologists and engineers from Val d'Or,
Quebec.
Highlights include:
- Indicated Resources of about 40 million tonnes at 1.1
gAu/tonne or about 1.4 million ounces
- Additional Inferred Resources of about 50 million tonnes at
1.1 gAu/tonne or about 1.7 million ounces
- Recognition of considerable potential to increase and
upgrade resources through further drilling
George Mannard,
President, stated "This detailed, diligent and thoughtful work has
really opened our eyes. We are compelled to release these
estimates immediately while we complete work on the Preliminary
Economic Assessment (PEA) currently in progress. The PEA will
follow shortly. This work will give our shareholders,
directors and markets a conservative basis on which to value our
assets."
InnovExplo based their new interpretation on a
rigorous compilation of historical data such as drill holes
(surveys, lithologies, alteration, structure), underground
historical workings, as well as structural and geological
observations on the site and in the core. In addition,
multiple drill holes collars and survey stations were found during
the site visit which permitted corrections to the database.
The underground ramp and drifts plans were also part of the process
and were digitalized in the Gems project. The new geological
model has demonstrated that the historical QES and Main Zones are,
in fact, the continuity of the same mineralized system and
mineralization occurs in between. The result is not only a
significant increase in resources, but also an increase in the
level of confidence in the geological and grade distribution
continuities of the Moss Lake deposit.
Details of the work and its relevant assumptions
are summarized in the following table and footnotes.
TECHNICAL DISCLOSURE
This Press Release has been prepared by George N. Mannard, P.Geo. and President of Moss
Lake Gold Mines Ltd., in consultation and reviewed by independent
consultants Carl Pelletier, P.Geo.
and Pierre-Luc Richard, P.Geo. of
InnovExplo Inc. Previous 43-101 compliant Technical Reports
dated December 1, 2006, and
August 30, 2010, by independent
consultants Watts, Griffis and McOuat Ltd. are available for review
at www.sedar.com or at mosslakegold.com. The new study will
be filed within 45 days and will provide an analysis of previous
work.
ABOUT MOSS LAKE GOLD MINES LTD.
Moss Lake Gold Mines Ltd. was created in 1994 to
consolidate ownership of the Moss Lake gold deposit. It is a
57.6%-owned subsidiary of Wesdome Gold Mines Ltd. which currently
owns and operates the Eagle River Gold Mine, the Mishi Gold Mine
and the Kiena Gold Mine.
Moss Lake trades on the TSX Venture Exchange
under the symbol "MOK" and currently has 47 million common 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.
Moss Lake - 2013 MINERAL RESOURCE
ESTIMATE |
Open Pit Potential - Mineral
Resource>0.5 g/tAu (within Pit Shell) |
Zone |
Indicated Resource |
Inferred Resource |
Tonnes |
g/tAu |
Ounces |
Tonnes |
g/tAu |
Ounces |
101 |
7,655,000 |
1.1 |
268,800 |
2,684,000 |
1.4 |
120,100 |
102 |
32,140,000 |
1.1 |
1,108,500 |
9,984,000 |
1.1 |
360,000 |
Other |
|
|
|
36,235,000 |
1.0 |
1,136,200 |
Sub-Total |
39,795,000 |
1.1 |
1,377,300 |
48,904,000 |
1.0 |
1,616,300 |
Underground Potential - Mineral
Resource >2.0g/tAu (outside Pit Shell) |
Zone |
Indicated Resource |
Inferred Resource |
Tonnes |
g/tAu |
Ounces |
Tonnes |
g/tAu |
Ounces |
101 |
|
|
|
223,000 |
3.2 |
22,700 |
102 |
|
|
|
290,000 |
2.4 |
22,600 |
Other |
|
|
|
949,000 |
3.0 |
90,100 |
Sub-Total |
|
|
|
1,461,000 |
2.9 |
135,400 |
Mineral Resource
Total (Open Pit and Underground Potential combined) |
Zone |
Indicated Resource |
Inferred Resource |
Tonnes |
g/tAu |
Ounces |
Tonnes |
g/tAu |
Ounces |
101 |
7,655,000 |
1.1 |
268,800 |
2,907,000 |
1.5 |
142,800 |
102 |
32,140,000 |
1.1 |
1,108,500 |
10,274,000 |
1.2 |
382,600 |
Other |
|
|
|
37,184,000 |
1.0 |
1,226,300 |
Total |
39,795,000 |
1.1 |
1,377,300 |
50,364,000 |
1.1 |
1,751,600 |
- The Independent and Qualified Persons for the Mineral Resource
Estimate, as defined by Regulation 43-101, are Pierre-Luc Richard, M.Sc., P.Geo. (InnovExplo
Inc.), and Carl Pelletier, B.Sc.,
P.Geo. (InnovExplo Inc.), and the effective date of the estimate is
February 08, 2013.
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
- In-Pit results are presented undiluted and in situ, within
Whittle-optimized pit shells. Underground results are presented
undiluted and in situ, outside Whittle-optimized pit shells. The
estimate includes 18 gold-bearing zones and the envelope containing
isolated gold intercepts.
- In-Pit and Underground resources were compiled at cut-off
grades from 0.3 to 5.0 g/t Au (for sensibility characterization). A
cut-off grade of 0.5 g/t Au was selected as the official in-pit
cut-off grade and a cut-off grade of 2.0 g/t Au was selected as the
official underground cut-off grade.
- Whittle parameters used: Mining cost = C$2.28/tonne; Pit slope angle = 50.0 degrees;
Processing cost = C$9.55; Mining
Dilution = 5%; Recovery Mining 95%; Processing Recovery varying
from 80% to 85%; Gold price C$1,500.
- Cut-off grades must be re-evaluated in light of prevailing
market conditions (gold price, exchange rate and mining cost).
- The estimate is based on 352 diamond drill holes (90,978
metres) drilled from 1983 to 2008.
- A fixed density of 2.78 g/cm3 was used.
- A minimum true thickness of 5.0 m was applied, using the grade
of the adjacent material when assayed, or a value of zero when not
assayed.
- Supported by statistics analysis and high grade distribution
through the deposit, capping was established at 35 g/t Au.
- Compositing was done on drill hole sections falling within the
mineralized zone solids (composite = 1 m).
- Resources were evaluated from drill hole samples using ID2
interpolation method in a multi-folder percent block model using
Gems Version 6.4. Based on geostatistics, ellipses range for
interpolation was 75m X 67.5m X 40m.
- The Indicated category is defined by the combination of blocks
within the two main zones (101 and 102) and various statistics such
as average distance to composites, distance to closest composite,
quantity of drill holes within the search area.
- Ounce (troy) = Metric tons x Grade / 31.10348. Calculations
used metric units (metres, tonnes and g/t).
- The number of metric tons was rounded to the nearest thousand.
Any discrepancies in the totals are due to rounding effects;
rounding followed the recommendations in Regulation 43-101.
- InnovExplo is not aware of any known environmental, permitting,
legal, title-related, taxation, socio-political or marketing issues
or any other relevant issue that could materially affect the
Mineral Resource Estimate.
SOURCE Moss Lake Gold Mines Ltd.