Sheltered Oak Announces Initial Resource Estimate on Kerrs Gold Deposit and Exploration Update
April 26 2011 - 5:30AM
Marketwired Canada
Sheltered Oak Resources Corp. ("OAK" or the "Company") (TSX VENTURE:OAK) has
completed a National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") resource estimate for its Kerrs Gold Deposit located on
the Company's Kerrs Property located east of Matheson, Ontario.
Highlights are:
-- The inferred resource defined to date comprises 7,041,460 tonnes at an
average grade of 1.71 g/t Au and contains 386,467 troy oz of gold. These
resources are reported at a base case cut-off grade of 0.5 g/t Au
-- The Phase 5 drilling campaign has confirmed that the gold enrichment
occurs in sheeted, pyritic quartz vein breccias zones conforming to a
trough structure developed along the fold axis over an 800 metre strike
length and have lateral down-dip extensions up to 350 metres. Also,
step-out drilling confirms that the Kerrs Gold Deposit trend extends 400
m to the southwest and airborne geophysics indicates a further extension
of 400 m along the trough structure towards the adjacent property, (on
which the Company has an option to earn a 60% interest in from Goldcorp
Canada Ltd. and Goldcorp Inc. (the "Adjacent Property")). As well, there
is a strike length of 1,500 m of favorable volcanic stratigraphy
indicated by historic drilling on the Adjacent Property
-- An 11,500 m exploration drilling program is proposed for the Kerrs
Property, including the Adjacent Property, in the summer of 2011, using
the funds from the Company's recent financing, with three main
objectives:
a) 8,300 m of in-fill and extensional drilling on the Kerrs Gold Deposit
b) 1,200 m of reconnaissance drilling on parallel structure supported by
mobile metal ion (MMI) geochemical anomalies
c) 2,000 m of extensional drilling on the Kerrs Gold Deposit trend
projected on to the Adjacent Property,
JJ Elkin, President and CEO of the Company stated, "This important NI 43-101
estimate covers only 800 metres of strike length. Geophysical and previous
drilling results suggests that this deposit may extend a further 800 metres
towards the Adjacent Property. This historic work on the Adjacent Property
suggests there is a strike length potential for an additional 1,500 metres. The
proposed work program for 2011 will further delineate the Kerrs Property
potential, including the Adjacent Property. Our exploration target is a total
opportunity along a major volcanic structural trend in excess of a two km strike
length straddling both properties. The 2011 summer drill program is designed to
increase the tonnage and grade in order to advance and improve the economic
viability of our discovery."
MINERAL RESOURCE ESTIMATE
Kirkham Geosystems Ltd. ("KGL") have completed a NI 43-101 mineral resource
estimate on the Kerrs Gold Deposit based on the phase 1 to phase 5 drilling
programs completed from 2005 to 2010. Using a cut-off grade of 0.5 g/t Au, KGL
estimates that the inferred mineral resources of the Kerrs Gold Deposit total
7,041,460 tonnes at an average grade of 1.71 g/t Au containing 386,467 oz.'s of
gold.
The Kerrs Gold Deposit resource estimate is supported by 34 drill holes arrayed
on a grid layout on eight drill fence sections with zone correlations involving
37 composite zones. A 3D cross-sectional model was generated from the
cross-sections with interpreted mineral outlines which served as the basis to
perform geometric polygonal and geostatistical calculations. The resource
estimation process employed three methods to estimate the gold resources of the
Kerrs quartz, green carbonate breccia zone ("KBX zone") contained within the
Kerrs Gold Deposit. In addition, the polygonal cross-sectional method was
utilized which served as a comparison and to validate the geostatistical
methods.
The 3D geological solid model defined by 41 holes including three historical
holes, illustrates that the Kerrs Gold Deposit is stratabound occurring at the
contact of a thick mafic pillow flow sequence overlying an ultramafic,
magnetic-rich flow sequence. Also, quartz feldspar porphyry sills are spatially
located above and below the breccia zones. This stratigraphy is draped on a
shallow dipping synclinal fold structure varying from 350 m to 425 m below
surface. The drill hole density has been systematic in all five drilling
campaigns maintaining a 100 m drill fence spacing arrayed along nine sections
with hole spacing ranging from 50 to 100 m between pierce points along the
cross-section plane. Seven holes were oriented orthogonal to the northeasterly
strike direction of the deposit trend in order to define the boundaries of the
mineral resource below Bell Lake.
Gold mineralization occurs as pyritized quartz vein breccias enveloped by quartz
fuchsite carbonate vein breccias and alteration envelopes varying to up to 40 m
in thickness. Gold tenure is proportional to the pyrite content ranging up to
10% which is commonly disseminated and crystal aggregates in the sheeted, quartz
vein replacement breccias. These breccias, averaging 31% quartz, exhibit
reasonable correlation conforming to volcano-stratigraphic contacts as well as
moderate to good continuity in grade correlations at the lower and upper
boundaries of the vein breccia and alteration envelope assemblages. Anomalous
concentrations of trace elements such as molybdenum, lead and barium are found
within the replacement breccias and to a lesser extent in the green carbonate
breccias which envelope the quartz-pyritic vein breccias.
Block modeling was performed using ordinary kriging which employed a database of
2,117 assays, with 517 intersecting the mineralized zone. The KBX zone was
interpreted on 25 to 100 m spaced sections. The sectional interpretations were
then wireframed to create a 3D solid with which to constrain the block
interpolation process. The solid model was manually adjusted to precisely
intersect the zone composites. The grade estimation process included modeling
the mineralized structures, statistical analysis, drill holes and composite
data, variography, cut grade analysis, along with block estimation using
ordinary kriging. In addition, inverse distance to the second power, nearest
neighbor and manual polygonal estimation methods were performed for validation
and verification purposes.
It is important to note that within the estimation process for all
methodologies, that a technique specific to the MineSight(TM) Modeling System
called Relative Elevation Modeling was employed. This methodology is
particularly important in the case of the KBX zone, in so far as it is extremely
effective in addressing the issue of folded structures. This method allows the
practitioner to precisely follow the trend of mineralization and structure on a
body that has major deviations on strike and dip.
The mineral resource estimate on the Kerrs Gold Deposit is set out in the table
below.
----------------------------------------------------------------------------
Inferred Mineral Resources
(Kerrs Gold Deposit - KBX Zone
----------------------------------------------------------------------------
CUT-OFF GRADE TONNES GOLD (g/t) METAL (Oz.)
----------------------------------------------------------------------------
0.5 7,041,460 1.71 386,467
----------------------------------------------------------------------------
1 5,237,213 2.04 342,856
----------------------------------------------------------------------------
1.5 3,375,361 2.47 268,468
----------------------------------------------------------------------------
2 1,936,189 3.04 188,972
----------------------------------------------------------------------------
2.5 1,165,664 3.57 133,778
----------------------------------------------------------------------------
3 818,171 3.94 103,622
----------------------------------------------------------------------------
(i)Effective as of April 21, 2011
ESTIMATION METHODOLOGY AND PARAMETERS
The following are the resource estimation methods and parameters for the Kerrs
Gold Deposit:
-- 41 drill holes were utilized to interpolate the KBX zone
-- Composite length was chosen to be 2 m and composites were weighted by
length
-- Sectional interpretations were wireframed to create 3D solids of the
zones
-- Zones were coded to the composites and the block model to constrain the
modeling process
-- Composites for the mineralized zone was used to interpolate into the
blocks for that zone
-- Ordinary kriging was utilized as the interpolator
-- Relative elevation modeling was used to guide the ellipse orientation
accounting for the variation in dip due to the synclinal structure
-- A minimum of two composites were used for each block and a maximum of
two composites were used per drill hole, a maximum of 12 composites were
used per hole
-- A cutting factor was applied for gold with outlier composites limited to
10 g/t Au based on cumulative frequency plots. A zero cut-off grade was
used for the manual polygonal method
-- Minesight(TM) Software was used to perform the block modeling and
estimations
-- Tonnage comparisons with the polygonal cross-section calculation check
within a variance of -9%. Grade comparisons show an average variance of
+20% for gold
-- Tonnage and grade variations between methods are very much within
reasonable limits as shown below:
----------------------------------------------------------------------------
ORDINARY INVERSE NEAREST
CUT-OFF TONNES KRIGING DISTANCE %DIFF NEIGHBOR %DIFF
----------------------------------------------------------------------------
0.5 7,041,460 1.71 1.67 2.0% 1.61 6.4%
----------------------------------------------------------------------------
CROSS SECTIONAL METHODOLOGY AND PARAMETERS
The following are the methods and parameters utilized for the manual
cross-sectional method:
-- Mineral outlines constrained by minimum true thickness equals 3.0 m
-- Composite grade modeling of KBX zone used internal dilution thickness up
to of 4 m at a cut-off grade of 0.5 g/t Au
-- Average drill hole pierce point spacing equals 92 m
-- Average true thickness of KBX zone equals 9.9 m
-- Average Specific Gravity of 2.81 was used to calculate sectional block
tonnages for the KBX zone
KERRS 2011 EXPLORATION PROGRAM
This first time resource estimate defining a new deposit in Kerrs Township is
the culmination of numerous exploration ventures beginning in the early 1960's
with the prospecting discovery of high grade glacial float boulders near East
Ford Lake. Notable exploration companies such as Dome Mines and Noranda carried
out major exploration programs from 1980 to 1989. Follow-up work initiated by
Sage Gold Inc. in 2004 to 2007 and carried forward by OAK in 2008 to 2010
focused on the initial discovery holes near Bell Lake. The five successive
drilling campaigns have delineated the Kerrs Gold Deposit which is postulated to
be the "up-ice glacial source" for the East Ford Lake boulders.
Sheltered Oak's management is proposing an aggressive exploration program to
start in July 2011 with the following objectives:
a. 8,300 m of in-fill and extensional drilling on Kerrs Gold Deposit
b. 1,200 m of reconnaissance drilling on parallel structure supported by
MMI geochem anomalies
c. 2,000 m of extensional drilling on the Kerrs Gold Deposit trend
projected on to the Adjacent Property. The Adjacent Property is
contiguous to the northwest boundary of OAK's Kerrs Property. Dome
Exploration has explored the project area from 1977 to 1989. Fifty-five
diamond drill holes totaling 10,279 m tested geophysical, stratigraphic
and mineralized targets. Gold mineralization is associated with quartz,
carbonate, pyrite in narrow, altered brecciated zones of mafic volcanic
rocks and chert, jasper, pyrite and magnetite. The volcanic stratigraphy
shows an arc-shaped fold geometry which is interpreted from regional
airborne magnetic surveys to be a large antiform occupying most of
Chesney Bay and the eastern portion of Kerrs Township. Historical
drilling in the central portion of the property intersected significant
amounts of quartz feldspar porphyry. The Kerrs Gold Deposit trend has
been extrapolated over a distance of 1,500 m encompassing the auriferous
porphyries drilled by Dome Exploration.
QUALIFIED PERSONS (QP)
Garth Kirkham, P. Geo. has been retained by OAK as the independent qualified
person designated under NI 43-101 to perform the first time mineral resource
estimate for the Kerrs Gold Deposit. From 2005 to 2010, project exploration,
implementation and geological data management was conducted by W. A. Hubacheck
Consultants Ltd. under the supervision of Peter Hubacheck, P. Geo., consulting
QP for Sheltered Oak. The geological database was independently verified by
Barbara Carroll, CPG. The mineral resource estimation contained in this news
release was prepared by Garth Kirkham, P. Geo. The geotechnical information
contained in this news release was reviewed by Peter Hubacheck, P.Geo. and
Barbara Carroll, CPG. A NI 43-101 technical report will be filed on SEDAR within
45 days.
DISCLOSURE STATEMENT
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for mine economic
feasibility, selectivity in mining methods, mining loss and dilution. This
mineral resource estimate reported herein is inferred mineral resources which
are considered too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral reserves.
There is also no certainty that these inferred mineral resources will be
converted to indicated and measured mineral resource categories through further
drilling, or into mineral reserves once economic considerations are applied.
ABOUT SHELTERED OAK RESOURCES CORP.
Sheltered Oak Resources Corp. (TSX VENTURE:OAK) is focused on mineral
exploration opportunities within Ontario and owns a 100% interest in 26 mining
claims and one mining lease, and one optioned claim totaling 4,176 hectares
which comprise the Kerrs Property, located east of Matheson in the prolific area
of the Abitibi Greenstone Belt in northeastern Ontario. The Company has also
acquired an option to earn a 60% interest in 46 mining leases comprising the
Adjacent Property.
Should you wish to receive informational updates on Sheltered Oak Resources
Corp. please contact Jennie Guay at jennie@chfir.com.
Some statements contained in this release are forward-looking and, therefore,
involve uncertainties or risks that could cause actual results to differ
materially. Such forward-looking statements include comments regarding the
future exploration, increasing tonnage and grade, economic viability, and
extension of strike length, potential mineralization and resources, exploration
results, expectations, plans, and objectives of OAK. The following are important
factors that could cause Sheltered Oak's actual results to differ materially
from those expressed or implied by such forward-looking statements: changes in
the world wide price of mineral commodities, general market conditions, risks
inherent in the mineral exploration, the uncertainty of future exploration
activities and cash flows, and the uncertainty of access to additional capital.
There can be no assurance that forward-looking statements will prove to be
accurate as actual results and future events may differ materially from those
anticipated in such statements. OAK undertakes no obligation to update such
forward-looking statements if circumstances or management's estimates or
opinions should change unless required by law. The reader is cautioned not to
place undue reliance on such forward-looking statements.
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