Highlights:
-- High-Grade Underground constrained resource at 2.5 grams of gold per
tonne ("g/t Au") cut-off:
-- 1.60 million ounces of gold averaging 5.39 g/t Au in the Indicated
Resource category; and
-- 0.43 million ounces of gold averaging 4.37 g/t Au in the Inferred
Resource category.
-- Open Pit-Constrained resource at 0.5 g/t Au cut-off:
-- 2.32 million ounces of gold averaging 1.03 g/t Au in the Indicated
Resource category; and
-- 0.01 million ounces of gold averaging 0.80 g/t Au in the Inferred
Resource category.
-- New Resource Estimate highlights the significant contribution of the U/G
resource to the project.
Probe Mines Limited (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to
announce that the Company has received the Updated Mineral Resource Estimate for
its Borden gold deposit from Snowden Mining Industry Consultants ("Snowden"),
which includes the first Resource Estimate to contain the High-Grade Underground
(U/G) resource. The High-Grade U/G is estimated to contain a constrained
Indicated Resource of 1.60 million ounces of gold averaging 5.39 g/t Au and an
additional constrained Inferred Resource of 0.43 million ounces of gold
averaging 4.37 g/t Au, at a 2.5 g/t Au cut-off grade. In addition, the deposit
is estimated to contain an Open pit-constrained Resource of 2.32 million ounces
of gold averaging 1.03 g/t Au, at a 0.5 g/t Au cut-off grade.
The Updated Resource Estimate is the most significant to date as it is the first
to define a higher-grade U/G resource, in addition to the near-surface
pit-constrained gold mineralization, within the Borden Gold Deposit. In all
aspects, the Borden deposit has shown significant improvement over previous
resource estimates while still remaining open for future expansion and
improvement.
High-Grade Underground Constrained Resource Estimate
The Updated Resource Estimate was constrained within a high-grade zone ("HGZ")
at a cut-off grade of 2.5 g/t Au. The cut-off grade selected represents a
realistic estimate for any potential underground mining operations based on the
size of the mineralized zone and possibility of employing bulk-underground
mining methods. An image of the high grade zone-constrained Resource is
available on the Company's website at:
http://www.probemines.com/s/Borden_Lake.asp?ReportID=658146&_Type=Borden-Gold.
The following sensitivity table presents the Resource Estimate within the high
grade zone at different cut-offs.
High-Grade Underground Constrained Indicated Mineral Resource Estimate
Sensitivity Table 1,2,3,4,5
----------------------------------------------------------------------------
Cumulative Tonnage Cumulative Au oz
Cut-Off Au 1,2 Average Au Grade 1,2
(g/t) (000's) (g/t) (000's)
----------------------------------------------------------------------------
3.5 5,886 6.80 1,286
----------------------------------------------------------------------------
3.0 7,222 6.14 1,426
----------------------------------------------------------------------------
2.5 9,262 5.39 1,604
----------------------------------------------------------------------------
2.0 12,985 4.48 1,870
----------------------------------------------------------------------------
High-Grade Underground Constrained Inferred Mineral Resource Estimate
Sensitivity Table 1,2,3,4,5
----------------------------------------------------------------------------
Cumulative Tonnage Cumulative Au oz
Cut-Off Au 1,2 Average Au Grade 1,2
(g/t) (000's) (g/t) (000's)
----------------------------------------------------------------------------
3.5 1,521 5.79 283
----------------------------------------------------------------------------
3.0 2,125 5.06 346
----------------------------------------------------------------------------
2.5 3,034 4.37 426
----------------------------------------------------------------------------
2.0 4,317 3.73 518
----------------------------------------------------------------------------
1. Tonnes and Au ounces have been rounded to the nearest thousand
2. Figures/numbers for resource tonnes and ounces may not sum due to
rounding
3. Cut-off grade was calculated with the following parameters:
-- Gold price US$1,300/oz
-- Exchange rate US$1.00= CDN$1.11
-- Mining cost Cdn$50.00/tonne
-- Processing and G&A cost Cdn$22.80/tonne
-- Process Recovery 92%
4. Variable specific gravity with an average in the mineralized zone of
2.78
5. An over-all grade capping of 100 g/t Au
Open Pit-Constrained Resource Estimate
The Updated Resource Estimate was constrained within a Whittle open-pit shell.
The Open Pit-Constrained Resource Estimate is reported at a cut-off grade of 0.5
g/t Au. An image of the pit-constrained Resource is available on the Company's
website at:
http://www.probemines.com/s/Borden_Lake.asp?ReportID=658146&_Type=Borden-Gold.
It should be noted that, in addition to the re-distribution of ounces from
previous pit-constrained models to the new underground constrained resource, the
parameters chosen for this updated pit-constrained resource are more
conservative than parameters used in previous updates. This results in a more
robust overall mineral resource with a focus on higher-grade material at the
expense of lower-grade open pit material. Consequently, the pit-constrained
resource now contains fewer ounces.
The following sensitivity table presents the Resource Estimate for
mineralization falling within the Whittle pit shell, assuming a gold price of
US$1,300/oz and a variable metallurgical recovery as per the press release of
June 10th, 2014 (further assumptions noted at the end of the table).
Open Pit-Constrained Indicated Mineral Resource Estimate Sensitivity Table
6,7,8,9,10
----------------------------------------------------------------------------
Cumulative Tonnage Average Au Cumulative Au oz
Cut-Off Au 6,7 Grade 6,7
(g/t) (000's) (g/t) (000's)
----------------------------------------------------------------------------
1.5 10,647 1.97 676
----------------------------------------------------------------------------
1.0 27,901 1.50 1,349
----------------------------------------------------------------------------
0.5 70,301 1.03 2,322
----------------------------------------------------------------------------
Open Pit-Constrained Inferred Mineral Resource Estimate Sensitivity Table 6,7,8,9,10
----------------------------------------------------------------------------
Cumulative Tonnage Average Au Cumulative Au oz
Cut-Off Au 6,7 Grade 6,7
(g/t) (000's) (g/t) (000's)
----------------------------------------------------------------------------
1.5 16 1.67 1
----------------------------------------------------------------------------
1.0 55 1.40 2
----------------------------------------------------------------------------
0.5 247 0.80 6
----------------------------------------------------------------------------
6. Tonnes and Au ounces have been rounded to the nearest thousand
7. Figures/numbers for resource tonnes and ounces may not sum due to
rounding
8. In the pit optimization, the following parameters were utilized:
-- Gold price US$1,300/oz
-- Exchange rate US$1.00= CDN$1.11
-- Average Mining cost Cdn$2.20/tonne
-- Processing and G&A cost Cdn$17.37/tonne
-- Process Recovery: variable
-- Pit Slopes 48 degrees
9. Variable specific gravity in the mineralized zone with an average of
2.78
10. An over-all grade capping of 100 g/t Au
All resources reported in this updated Resource Estimate are from mineral claims
owned or operated by Probe Mines, which includes the Joint Venture ("JV")
property consisting of three private patented mineral claims in which Probe is
currently earning a 50% interest. The Updated Resource Estimate does not include
any potential gold resource(s) on claims or property in which Probe does not
hold an interest or has the ability to earn an interest.
Dr. David Palmer, President of Probe, states "The change in this deposit since
the last Resource Estimate in January 2013 has been nothing short of remarkable.
We are extremely pleased with the results of the current Resource Estimate as it
demonstrates a better than expected gold resource within the HGZ. We strongly
feel that this deposit now represents a possible stand-alone underground
operation, with the added potential of continued expansion through further
exploration drilling. During 2014 we will be focused on advancing the project
into development starting with the completion of a PEA before the end of the
year".
Yves Dessureault, Probe's COO, comments "The robust nature of the HGZ definitely
suggests that the project is rapidly advancing towards a development scenario.
We would like to maintain the momentum of the project through 2014 and, in
addition to the PEA, we will be working on more advanced studies to facilitate
the project timeline, including metallurgical, geotechnical, and environmental
programs, as well as community initiatives".
The updated resource estimate, which meets the guidelines for reporting mineral
exploration programs as set out in National Instrument 43-101, was based on over
224,000 drilled metres and over 168,000 assayed meters, that tested the gold
horizon along approximately 3,700 metres (m) of strike length and to a vertical
depth of over 650 metres at spacings of between 25 to 100 metres. The
Underground and Open-Pit Constrained Resources were modeled on 5 m x 5 m x 5 m
block size. Mineralization of the Borden Gold Zone is comprised of a
volcano-metasedimentary horizon containing a thick, continuous and consistent
zone of gold-bearing disseminated sulphide mineralization. The deposit still
remains open in all directions.
Mineral resources do not have demonstrated economic viability but from the CIM
definition must demonstrate reasonable prospects for eventual economic
extraction. CIM defines Mineral Resource as:
"A Mineral Resource is a concentration or occurrence of solid material of
economic interest in or on the Earth's crust in such form, grade or quality and
quantity that there are reasonable prospects for eventual economic extraction.
The location, quantity, grade or quality, continuity and other geological
characteristics of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling."
The estimate of mineral resources may also be materially affected by other
relevant factors or issues. There is no guarantee that the project will be
placed into production. BBA Inc, the lead consultant for the Borden Gold
project, is currently in the process of completing the NI 43-101 Technical
Report for which Snowden is currently completing their relevant sections which
will be filed on Sedar within 45 days of this release.
The mineral resource estimate was generated using Ordinary Kriging. The
mineralized material was classified into the Indicated or Inferred mineral
resource category on the basis of a combination of the following factors: (a)
confidence in the geological and mineralization continuity, (b) the position of
blocks in relation to the range of influence as defined by the variography and
(c) the search ellipse ranges.
Yves Dessureault, Ph.D., P.Eng., is the Qualified Person for Probe Mines. The
contents of this news release have been reviewed and approved by Independent
Qualified Persons Walter Allan Dzick, P.Geo., of Snowden.
About Probe Mines:
Probe Mines Limited is a Canadian precious metals exploration company whose key
asset is the Borden Gold Zone in Ontario, Canada. As of January 31, 2014, the
Company is well-positioned with approximately $29.4 million in treasury. The
Company is actively exploring a significant new gold resource on its Borden Gold
Zone near Chapleau, Ontario and has 100% interest in the Black Creek chromite
deposit located in Northern Ontario. The Company's shares trade on the TSX
Venture Exchange under the symbol PRB.
On behalf of Probe Mines Limited,
Dr. David Palmer, President & Chief Executive Officer
Forward-Looking Statements
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" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that describe the
Company's future plans, objectives or goals, including words to the effect that
the Company or management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as "believes",
"anticipates", "expects", "estimates", "may", "could", "would", "will", or
"plan". Since forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Although these statements are based on information currently
available to the Company, the Company provides no assurance that actual results
will meet management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information. Forward looking
information in this news release includes, but is not limited to, the Company's
objectives, goals or future plans, statements regarding exploration results,
potential mineralization, the estimation of mineral resources, exploration and
mine development plans, timing of the commencement of operations and estimates
of market conditions. Factors that could cause actual results to differ
materially from such forward-looking information include, but are not limited
to, failure to identify mineral resources, failure to convert estimated mineral
resources to reserves, the inability to complete a feasibility study which
recommends a production decision, the preliminary nature of metallurgical test
results, delays in obtaining or failures to obtain required governmental,
environmental or other project approvals, political risks, inability to fulfill
the duty to accommodate First Nations and other indigenous peoples,
uncertainties relating to the availability and costs of financing needed in the
future, changes in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of projects, capital
and operating costs varying significantly from estimates and the other risks
involved in the mineral exploration and development industry, and those risks
set out in the Company's public documents filed on SEDAR.
Although the Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are reasonable, undue
reliance should not be placed on such information, which only applies as of the
date of this news release, and no assurance can be given that such events will
occur in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, other than
as required by law.
Shares Issued: 76,374,727
FOR FURTHER INFORMATION PLEASE CONTACT:
Probe Mines Limited
Karen Willoughby
Director of Corporate Communications
(866) 936-6766
info@probemines.com
Probe Mines Limited
Patrick Langlois
Vice President, Corporate Development
(416) 777-6703
patrick@probemines.com
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