TIDMHGM
RNS Number : 9060W
Highland Gold Mining Limited
20 November 2017
HIGHLAND GOLD MINING LIMITED
20 November 2017
Updated Resource and Reserve Estimates for Novo
Highland Gold Mining Limited ("Highland Gold" or the "Company",
AIM: HGM) is pleased to announce the results of updated
JORC-compliant Mineral Resource and Ore Reserve estimates for its
Novoshirokinskoye ("Novo") mine, conducted by Wardell Armstrong
International ("WAI").
The new JORC resource audit follows a comprehensive resource
re-evaluation under Russian GKZ standards, completed in 2014. As
part of that exercise, Novo's cut-off grades were substantially
lowered, resulting in lower average grades but higher tonnages and
contained metal.
For the purposes of modelling, WAI calculated a lead metal
equivalent grade for Novo's polymetallic ore in its report. Prices
were based on a trailing three-year average as of January 2017, and
actual recovery data was supplied by Highland Gold.
Using the same parameters to calculate gold equivalent, total
proven and probable Ore Reserves(1) as of 01 January 2017 were 1.9
M oz Au Eq., compared to 1.1 M oz estimated to remain from the
prior reserve audit conducted in 2011 and reported in the Company's
2016 Annual Report(2) . Total Ore Reserve tonnage was 18.0 M tonnes
versus 3.4 M tonnes previously reported. The average gold
equivalent grade was 3.3 g/t, compared to 9.8 g/t reported earlier
and an average grade of 5.5 g/t processed at the Novo mill this
year to date.
Novo's measured, indicated and inferred Mineral Resources(1) as
of 01 January 2017 were 3.1 M oz of gold equivalent versus 1.4 M oz
Au Eq. reported earlier. The resource grade was 4.0 g/t Au Eq.
(previously 7.6 g/t) and the total ore resource was 24.1 M tonnes
(previously 5.7 M tonnes).
Comparison of Ore Reserves as of 01 January 2017
Unit JORC JORC %
2011(2) 2017
================== ====== ========= ======= ======
Ore kt 3,392 17,991 +430%
================== ====== ========= ======= ======
Average Grades
================== ====== ========= ======= ======
Gold g/t 4.67 1.81 -61%
Silver g/t 94.14 35.73 -62%
Lead % 3.34 0.96 -71%
Zinc % 1.33 0.53 -60%
Gold Equivalent g/t 9.8(2) 3.3(1) -67%
================== ====== ========= ======= ======
Contained
Metal
================== ====== ========= ======= ======
Gold Moz 0.5 1.0 +106%
Silver Moz 10.3 20.7 +101%
Lead kt 113 173 +53%
Zinc kt 45 95 +111%
Gold Equivalent Moz 1.1(2) 1.9(1) +76%
================== ====== ========= ======= ======
The new reserve data reinforces the rationale behind the
Company's on-going project to expand Novo's mine and processing
plant annual capacity to 1.3 M tonnes of ore from its current run
rate of 800k tonnes. Increased capacity will support Novo's overall
production level as grades decline, while also helping to mitigate
the expected upward pressure on total cash costs.
Below are Novo's Mineral Resources and Ore Reserves as presented
in the report by Wardell Armstrong International, assessed on a
lead-equivalent basis:
Mineral Resources of the Novoshirokinskoye Mine
in accordance with the JORC Code (2012) as of 01 January
2017
(Pb (Eq.) , cut-off Ore Pb Eq(3) Pb Zn Au Ag
grade 1.6%)
(kT) (%) (%) (%) (g/t) (g/t)
==================== ====== ======== ===== ===== ====== ======
Measured 16,040 7.80% 1.43% 0.73% 2.52 48.10
Indicated 3,644 5.15% 0.86% 0.60% 1.44 46.18
======================== ====== ======== ===== ===== ====== ======
Measured+Indicated 19,684 7.32% 1.32% 0.71% 2.32 47.74
======================== ====== ======== ===== ===== ====== ======
Inferred 4,462 4.34% 1.01% 0.69% 1.09 34.46
======================== ====== ======== ===== ===== ====== ======
Total 24,146 6.77% 1.27% 0.70% 2.09 45.29
======================== ====== ======== ===== ===== ====== ======
Ore Reserves of the Novoshirokinskoye Mine
in accordance with the JORC Code (2012) as of 01 January
2017
(Pb (Eq.) , cut-off Ore Pb Eq(3) Pb Zn Au Ag
grade 1.6%)
(kT) (%) (%) (%) (g/t) (g/t)
==================== ====== ======== ===== ===== ====== ======
Proven 15,121 5.87% 1.02% 0.54% 1.94 35.38
Probable 2,870 4.04% 0.67% 0.46% 1.13 37.55
======================== ====== ======== ===== ===== ====== ======
Proven+Probable 17,991 5.58% 0.96% 0.53% 1.81 35.73
======================== ====== ======== ===== ===== ====== ======
WAI Pb Equivalent Calculation Parameters
(Pb Eq) 2017
Metal Cost Per Price Convert Price Recovery Co-Ef
Unit (LME), Units Unit per Unit,$
$
======= ============= ========== ======== ============ ========= ======
Au 1279.2 oz (troy) 1g 41.13 81.2 1.83
Ag 19.6 oz (troy) 1g 0.63 90.6 0.03
Pb 2007.7 t 1% 20.08 93.1 1.00
Zn 2001 t 1% 20.01 89.9 0.45
Information contained in this release has been taken from the
"Mineral Resources & Ore Reserve Estimation for the
Novoshirokinskoye Deposit, Zabaikalskiy Krai, Russia", prepared in
compliance to the JORC Code 2012 by a panel of qualified industry
experts of Wardell Armstrong International. The report has been
signed off by Mr Phil Newall, who has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration to qualify as Competent Persons as defined in the
2012 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves".
Mr. Andrey Sevryugin, Senior Specialist in the Geology and
Subsoil Use Department at Highland Gold, has reviewed and verified
the information contained in this release with respect to mineral
resources. Mr Sevryugin is an Expert of the Russian Society of
Subsoil Use Experts (OERN) and has sufficient experience relevant
to the style of mineralisation and type of deposit under
consideration to qualify as Competent Persons as defined in the
JORC Code 2012 Edition.
Mr. Colin Belshaw, Independent Director at Highland Gold, has
reviewed and verified the information contained in this release
with respect to reserve and resource matters. Mr Belshaw is a
Fellow of the Institute of Materials, Minerals and Mining (FIMMM)
and has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration to qualify
as Competent Persons as defined in the JORC Code 2012 Edition.
FOR FURTHER INFORMATION PLEASE CONTACT:
Highland Gold Mining Ltd. John Mann, Head of Communications
+ 7 495 424 95 21
Duncan Baxter, Non-Executive Director
+ 44 (0) 1534 814 202
Numis Securities Limited John Prior, James Black, Paul Gillam
(Nominated Adviser and Joint Broker) +44 (0) 207 260 1000
BMO Capital Markets Jeffrey Couch, Neil Haycock, Pascal Lussier Duquette
(Joint Broker) +44 (0) 207 236 1010
Peat & Co Charlie Peat
(Joint Broker) +44 (0) 207 104 2334
***
(1) Highland Gold internal gold-equivalent resource and reserve
estimates, based on 2017 WAI JORC-compliant Mineral Resource and
Ore Reserves estimates and calculated using WAI 2017 lead
equivalent price and recovery parameters.
(2) Resources and reserves were estimated as of January 01, 2011
(in accordance with JORC Code 2004) and adjusted for 2011-2016
mining. Gold equivalent was calculated as follows:
Pb*0.510496+Zn*0.430005+Ag*0.01723 (WAI 2011 coefficients).
(3) Estimate ratios Pb eq.=Pb(%)+0.45Zn(%)+1.83Au(g/t)+0.03Ag(g/t)
Glossary
JORC - Widely accepted standard for reporting mineral resources
and ore reserves established by the Australasian Joint Ore Reserves
Committee.
Mineral Resource - 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.
Inferred Mineral Resource- that part of a Mineral Resource for
which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed,
but not verified, geological and grade continuity. The estimate is
based on limited information and sampling gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes.
Indicated Mineral Resource - that part of a Mineral Resource for
which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably
assumed.
Measured Mineral Resource- that part of a Mineral Resource for
which quantity, grade or quality, densities, shape, and physical
characteristics are so well established that they can be estimated
with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning
and evaluation of the economic viability of the deposit. The
estimate is based on detailed and reliable exploration, sampling
and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes that are spaced closely enough to confirm both geological and
grade continuity.
Ore Reserve - the economically mineable part of a Measured or
Indicated Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on
mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction can be justified. A Mineral Reserve includes diluting
materials and allowances for losses that may occur when the
material is mined.
Probable Ore Reserve - the economically mineable part of an
Indicated and, in some circumstances, a Measured Mineral Resource
demonstrated by at least a Preliminary Feasibility Study. This
Study must include adequate information on mining, processing,
metallurgical, economic, and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can
be justified.
Proven Ore Reserve - is the economically mineable part of a
Measured Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on
mining, processing, metallurgical, economic, and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction is justified.
This information is provided by RNS
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