Uragold Updates Shareholders on the Beauce Placer Gold Project; Will Issue a 43-101 Compliant Inferred Resource Followed by a...
January 23 2014 - 12:16PM
Marketwired
Uragold Updates Shareholders on the Beauce Placer Gold Project;
Will Issue a 43-101 Compliant Inferred Resource Followed by a
Preliminary Economic Assessment
MONTREAL, QUEBEC--(Marketwired - Jan 23, 2014) - Uragold Bay
Resources Inc. ("Uragold") (TSX-VENTURE:UBR) is pleased to provide
its shareholders with an update on the Beauce Placer Gold Project,
located in the municipality of Saint-Simon-les-Mines in the Beauce
region of southern Quebec.
As previously stated last April, the Corporation submitted to
potential financiers copies of a "Technical Report on the Beauce
Property, Southeastern Quebec" and an internal economic assessment
model prepared by an independent mining engineering firm. The
assessment assumed mining a conceptual potential volume ranging
from 385,000 m3 to 407,000 m3 of gold bearing basal units with a
potential grade between 1 g to 2 g AU/m3 (12,000 to 25,000 ounces
of gold) found on the Rang Chaussegros section of the Beauce Placer
channel (based on figures from the Technical report and from
Genivar's (now WSP Group) environmental audit and mining permit
applications).
At the start of 2013, financiers interest in the economics of
our project was strong, and this even if the potential quantity and
grade of Gold on the property in our technical reports was
conceptual* in nature, ("insufficient exploration done to
define a mineral resource and uncertainty if further exploration
will result in discovery of a mineral resource"). As key
milestones were met, the price of gold was collapsing, venture
capital funding was drying-up and the few remaining financiers were
tightening their minimal financing requirements. This was not
anticipated.
Evaluating the Beauce Placer project potential versus industry
comparables, in an environment where there are no standard
benchmark's for placer projects, made it difficult for financiers
and investors in evaluating the project's economics potential.
As opposed to standard hard rock projects, the coarse gold
characteristics (nugget effect) of the Beauce Placer project
implies that delineating a mineral resource and reserve categories
as defined in National Instrument 43-101 reporting standards using
a traditional drilling program would be very difficult and
costly.
During the third quarter of fiscal 2013, UBR technical committee
reviewed the historical information and concluded that there was
enough new and historical information for the Company to disclose
an Inferred Resource* and to increase its resource potential for
the Rang Chaussegros section of the deposit. The report is
presently in being finalized and should be issued during the next
50 days.
Once the new NI43-101 technical report will be published, UBR
will mandate WSP Group (formerly Genivar) to complete the above
mention assessment into to a NI43-101 compliant Preliminary
Economic Assessment (PEA). Interest in our project remains strong
and having these reports will only broaden Uragold's financing
options and allow Shareholders to better value their investment in
the Company.
To help shareholder visualize and compare the advancement of the
Beauce Placer project, Management has modified the standard hard
rock gold project mine and exploration development Cycle table
under appendix 1 to illustrate the development stages cycle of a
"standard" placer vs the advancement of our Beauce project.
Mr Vivian Stuart-Williams, SACNASPS, working under Special
Authorization #290 of the Quebec Order of Geologist, is a Qualified
Person as defined by National Instrument 43-101 that supervised the
preparation of the information in this news release.
Patrick Levasseur, president and COO of Uragold stated,
"Management is eager to present to investors in a complete fashion
all information gained during the preparation of the 43-101.
Further more the PEA will finally allow management to demonstrate
the low cost nature of our Beauce project. Shareholders will be
able to appreciate Uragold's Fundamental value."
PDAC
For the first time Uragold will be an exhibitor at the 2014 PDAC
(Prospectors & Developers Association of Canada) convention and
trade show held in Toronto, Ontario from March 2 to 5. Uragold
welcomes everyone to come and meet the management.
*An "Inferred Mineral Resource" is that part of a mineral
resource for which tonnage, grade and mineral content can be
estimated with a low level of confidence. It is inferred from
geological evidence and assumed but not verified geological/or by
grade continuity. It is based on information gathered through
appropriate techniques from location such as outcrops, trenches,
pits, workings and drill holes which may be of limited or uncertain
quality and reliability.
About the Beauce Placer Gold Project
From 1959 to 1961, the Beauce Placer Mining Company, using a
dragline and a floating Yuba dredge, mined 56,000 oz of gold from
an area representing less than 20% the Rang Chaussegros placer
channel. Sedimentological observations and characteristics of the
gold grains extracted from the property suggest a close proximity
to a bedrock source. An Induced Polarization (IP) survey revealed a
strong conductive anomaly (+60 msec) of the bedrock below the
auriferous basal till. This anomaly could correspond to a bedrock
source for the gold.
Uragold's Beauce Placer Gold project has all the required
environmental permits to start its operations, and is in the final
stage for obtaining a 20 years mining lease placer gold mining
operation. It will be Quebec's first placer mining operation in 50
years.
About Uragold Bay Resources Inc.
Uragold Bay Resources is a junior exploration company trading on
the TSX Venture under the symbol UBR. Uragold holds gold properties
in Southern Quebec's Appalachian belt. Uragold's business model
focuses on developing small scale low-cost mining operations for
their cash flow generating potential to finance the exploration of
core properties that hold the potential for the discovery of blue
sky gold deposits like the MacDonald project.
Neither the 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.
Appendix 1
Mine Exploration & Development Cycle |
UBR |
|
Placer Gold Project |
Beauce Placer |
|
Stage |
Exploration Cycle stage |
Objective |
|
Time required |
% Completed |
|
1 |
Grassroots |
Conceptual, land acquisition |
|
12 months |
100 |
% |
2 |
Target Generation & Drilling |
Filtering for drill targets |
|
12 months |
100 |
% |
3 |
Discovery Delineation |
Defining the limits of a discovery & producing initial resource
potential |
|
12 months |
100 |
% |
5 |
Resource Delineation |
Producing initial inferred resource estimate |
|
9 to 18 months |
90 |
% |
6 |
Preliminary Economic Assessment (PEA) & Metallurgy |
Evaluating recoveries and optimal processing method, initial
economic analysis with 35%-50% error margin |
|
9 to 18 months |
75 |
% |
4 |
Permitting |
Securing environmental approval & Mining Lease |
|
9 to 18 months |
90 |
% |
7 |
Bulk sampling and Mining |
Full scale field testing of recoveries and optimal processing
method, further economic analysis reducing to 10%-20% error margin
before final production decision is taken |
|
6 months |
0 |
% |
8 |
Production |
Mining cash flow (Life of Mine |
) |
5-10 years |
0 |
% |
Shares outstanding: 54,039,743
Uragold Bay Resources Inc.Bernard J. TourillonChairman and
CEO(514) 846-3271Uragold Bay Resources Inc.Patrick
LevasseurPresident and COO(514) 846-3271www.uragold.com
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