TIDMMNC
RNS Number : 3465Z
Metminco Limited
14 March 2017
14 March 2017
MIRAFLORES MINE DEVELOPMENT
UPDATED JORC 2012 MINERAL RESOURCE STATEMENT
Metminco Limited ("Metminco" or the "Company") (ASX: MNC; AIM:
MNC) announces that it has received an updated and improved mineral
resource estimate for the Miraflores gold deposit in Colombia
prepared by Metal Mining Consultants ("MMC") based in Denver, USA,
in accordance with the guidelines of the JORC Code (2012 Edition).
This updated mineral resource estimate, which was undertaken to
provide the basis of the detailed mine plan for the Miraflores
Feasibility Study, replaces the previous JORC (2012) statement
completed by MMC that was released to the market on 21 July
2016.
The new JORC 2012 Mineral Resource Estimate represents an
increase in gold contained in the measured and indicated
("M&I") resource and inferred resource categories.
HIGHLIGHTS
-- Measured Mineral Resources of 2.95Mt @ 2.98g/t Au and 2.5g/t Ag
-- Indicated Mineral Resources of 6.31Mt @ 2.74g/t Au and 2.9g/t Ag
-- Measured and Indicated Mineral Resources of 9.27Mt @ 2.82g/t Au and 2.77g/t Ag
-- Inferred Mineral Resources of 0.49Mt @ 2.36g/t Au and 3.64g/t Ag
-- An increase in M&I resources of approximately 8,000ozs
contained gold and inferred resources of approximately 29,000ozs
contained gold
-- Total M&I Resources contain 840,000ozs Au and 826,000ozs Ag
The mineral resource estimate was based on 25,884 metres of
drilling in 73 diamond drill holes and 236 metres of underground
channel samples and using a 1.2g/t Au cut-off grade.
Mr William Howe, Managing Director, commented: "The Company,
together with its engineering consultants, are making excellent
progress on the feasibility study for the potential development of
the Miraflores Gold Project located at Quinchia, in the Department
of Risaralda, Colombia, with the date for completion of the
feasibility study anticipated to be end of May 2017. GR
Engineering, a Perth, Australia, based consulting engineer has been
commissioned by the Company to complete the feasibility study
encompassing an underground mine, processing facilities,
infrastructure and tailings facility.
The Company continues to work closely with governmental
authorities and the community in relation to the potential mine
development. Preparation of the EIA for development is also
progressing well and the Company anticipates submission of the EIA
to the relevant government authorities by the end of 2017.
At these updated resource tonnages and grades Miraflores
represents a high quality gold project that is on par with other
Colombian gold mines coming on stream or already in production.
Additionally, Miraflores will represent the first of a number of
potential projects within the Quinchia portfolio. The focus remains
to advance Miraflores through the remainder of this year and to
further derisk the project."
Introduction
Geology
The Miraflores deposit comprises a magmatic-hydrothermal breccia
pipe located within a fertile hypabyssal porphyry cluster
breccia-pipe. The breccia pipe is sub-vertical and cylindrical with
surface dimensions of 250m x 280m with a known vertical extent of
500m to 600m, but open` at depth, with clear contacts with the
adjacent basalts of the Barroso Formation. A NNW - SSE fracturing
system appears to control the formation of the breccia.
Four types of breccia have been distinguished, namely a Red
Breccia, a Green Breccia, a Grey Breccia and a White Breccia. The
contacts between the different types of breccias are gradational or
transitional. The White Breccia occurs in irregular, elongated
vertical zones or pockets, surrounded by Green or Grey breccia's,
and is interpreted to have formed later than the other breccias.
Furthermore, hydrothermal fluid appears to have washed out the rock
flour matrix within the White Breccia, or replaced it, with
deposition of gangue and sulfide minerals. Of the four breccia
types, the Red Breccia contains the highest gold grades with grades
of up to 429g/t gold in the vicinity of fault / vein zones.
Steeply-dipping high-grade veins are present, which represent
the youngest mineralizing event at Miraflores. Three groups of
veins have been identified based on strike direction, namely Group
100 comprising 3 veins with an average strike/dip of 293deg/-87deg;
Group 200 comprising 5 veins with an average strike/dip of
308deg/-82deg; and Group 800 comprising 13 veins with an average
strike/dip of 340deg/-82deg. Of these veins, Group 100 is the
oldest, and the Group 800 is the youngest.
The main mineralization trends of the high-grade veins vary in
strike from 325deg to 10deg and 280deg to 60deg, and vary in dip
from being vertical to dipping 70degE. The veins are defined by a
narrow mineralized core (10cm to 60cm) and a wider mineralized halo
(1m to 5m). The narrow core consists of increased amounts of
sphalerite, galena, pyrite, chalcopyrite, and fine clay. The wider
mineralized halo is defined by weak to moderate mineralization
along the margins of breccia fragments. The intensity and width of
the mineralized halo is controlled by the porosity and permeability
of the wall rock. Assay values as high as 429g/t Au have been
reported for the veins, with numerous sample values ranging from
10g/t Au to grades exceeding 100g/t Au.
The younger sub-vertical, northeast dipping veins, that
cross-cut the breccia are characterized by the development of
argillized material that contains large quantities of pyrite,
chalcopyrite, sphalerite and galena, with occasional visible gold.
The sulfides are present as coarse particles ranging from 100 to
200<MU>m (occasionally greater than 200<MU>m). The
lateral continuity of the NNW-SSE structures is important, and is
clearly recognized in prior exploitation workings, where high gold
grade mineralization can be followed over a strike length in excess
of 150 metres (and more than 80 metres in height), with limited
displacement by younger structures. Intersection points of
cross-cutting structures (veins) form high gold grade 'shoots' of
variable dimensions, which can be observed in the underground
workings.
Mineral Resource Estimate
General
Three diamond drilling programs have been carried out at
Miraflores over the period 2006 to 2013 consisting of 73 drill
holes totalling 25,884m.
-- Kedahda (4 drill holes totalling 1,415m)
-- B2Gold (6 drill holes totalling 2,210m)
-- Miraflores Compania Minera SAS (63 drill holes totalling 22,259m)
The modelling of the Miraflores deposit has been undertaken
using Vulcan(TM) and Leapfrog(TM) Software. All of the exploration
sampling has been used in the geological modelling process. The
drill hole database was de-surveyed, transformed and validated in
the Vulcan(TM) software, which was then used for the modelling of
the mineral resource.
The statistics have been completed using a combination of
Vulcan(TM), Microsoft Excel(TM) and Sage(TM) 2001. Geostatistics
have been completed in Vulcan(TM) and Sage(TM) 2001 and grade
interpolation has been undertaken in Vulcan(TM). Compilation of the
final model was undertaken in Vulcan(TM). Vulcan(TM) software is
similar to other mining software systems and relies on a block
modelling approach to represent deposit as a series of 3-D blocks
to which grade attributes, and virtually any other attributes can
be assigned. The software provides numerous means by which
attributes can be assigned, and optimization routines are provided
that allow block splitting, such that complex deposit outline
details are not lost or smoothed out by regular size blocks.
Drill hole assays for Miraflores were composited using 2m down
the hole composite lengths. A total of 13,194 two-metre composites
were constructed, starting at the collar of the drill hole.
Composite intervals less than 0.75m in length were merged with 2m
composites however; some composites less than 2m do exist, as the
composites were constrained by geological boundaries.
Basic statistics were compiled for both gold and silver grades
in each mineralized lithology and all 21 veins developed within the
Miraflores deposit. Capping statistics were determined using
histogram and log probability plots of all gold composites in the
breccia. A capping value of 45g/t was determined for the breccia,
whereas it varied from 0 to 17g/t for the veins. Silver grades were
not capped as the silver grades at Miraflores are very low.
Block Model
The resource model for Miraflores was constructed with
Vulcan(TM) software using a block model. All of the required
information about the deposit is stored in each individual block.
This includes estimated characteristics of gold and silver and
statistical characteristics such as number of samples used in an
estimate, distances to the nearest sample and the number of drill
holes used. Geological triangulations were also used to identify
the rock type of each block, and these structures also controlled
the sub-blocking in Vulcan(TM) along their boundaries. Geological
codes stored in the block model were also used to assign the
density within specific geological boundaries.
Grade Estimation
The Inverse Distanced cubed (ID3) grade estimation methodology
was used to estimate gold and silver grades. For the breccia,
basalt and saprolite, the variography was modelled to determine
appropriate search ellipsoid orientation and search distances,
whereas for the 21 veins, the search orientation varied depending
on the orientation of the vein.
Density
A total of 2,100 specific gravity measurements were used to
define the density of each lithological block in the model.
Mineral Resource
As of 02 April, 2013, MMC estimated a Measured and Indicated
Mineral Resource of 72.6mt at a gold and silver grade of 0.78g/t
and 1.52g/t respectively using a cut-off grade of 0.27 g/t gold in
accordance with NI 43-101. The mineral resource was based on 25,884
m of drilling in 73 diamond drill holes and 236 metres of
underground channel samples. The mineral resource estimate provided
for both an open pit and an underground mining operation.
More recently, MMC were retained by Metminco to produce a
mineral resource that is estimated in accordance with the
guidelines of the JORC Code (2012 Edition), but which only provided
for the exploitation of the Miraflores deposit via an underground
mining operation, and hence a higher cut-off grade of 1.2g/t gold.
This mineral resource estimate was released to the market on 21
July 2017. Further refinement of the block model included the
definition of the breccia types and lithologies within the breccia
pipe resulting in the assignment of specific gravity averages for
each lithology defined whereas previously the specific gravity
results were averaged for the entire breccia. This has resulted in
an increase in tonnage, most notably in the inferred category. The
inferred grade has also increased substantially from the previous
estimate due to the definition of further blocks on certain of the
defined veins within the breccia system. The revised mineral
resource estimate is summarized in Tables 1 and 2 below.
Table 1: Mineral Resource Estimate - Miraflores Gold Project
(MMC March 2017).
Classification Tonnes Au (g/t) Ag (g/t) Oz Au Oz Ag
(000's) (000's) (000's)
---------------------- --------- --------- --------- --------- ---------
Measured 2,958 2.98 2.49 283 237
---------------------- --------- --------- --------- --------- ---------
Indicated 6,311 2.74 2.90 557 588
---------------------- --------- --------- --------- --------- ---------
Measured & Indicated 9,269 2.82 2.77 840 826
---------------------- --------- --------- --------- --------- ---------
Inferred 487 2.36 3.64 37 57
---------------------- --------- --------- --------- --------- ---------
Note:
i) Based on a gold cut-off grade of 1.2g/t.
ii) Rounding-off of numbers may result in minor computational
errors, which are not deemed to be significant.
iii) Refer Appendix A - Table 1 requirement in support of the JORC Code (2012 Edition).
Table 2: Sensitivity of Mineral Resource to varying gold cut-off
grades.
Measured and Indicated Mineral Resource (Breccia
and Veins)
-----------------------------------------------------------------
Cut-off K Tonnes Au (g/t) Au (Koz) Ag (g/t) Ag (Koz)
(Au g/t)
---------- --------- --------- --------- --------- ---------
0.60 23,584 1.61 1,221 2.13 1,615
---------- --------- --------- --------- --------- ---------
0.70 19,095 1.83 1,123 2.27 1,394
---------- --------- --------- --------- --------- ---------
0.80 15,968 2.04 1,047 2.40 1,232
---------- --------- --------- --------- --------- ---------
0.90 13,663 2.24 984 2.52 1,107
---------- --------- --------- --------- --------- ---------
1.00 11,848 2.44 929 2.63 1,002
---------- --------- --------- --------- --------- ---------
1.10 10,440 2.63 883 2.72 913
---------- --------- --------- --------- --------- ---------
1.20 9,269 2.82 840 2.77 826
---------- --------- --------- --------- --------- ---------
1.30 8,414 2.98 806 2.84 768
---------- --------- --------- --------- --------- ---------
1.40 7,681 3.13 773 2.90 716
---------- --------- --------- --------- --------- ---------
1.50 7,030 3.29 744 2.97 671
---------- --------- --------- --------- --------- ---------
Inferred Mineral Resource (Breccia only)
-----------------------------------------------------------------
Cut-off K Tonnes Au (g/t) Au (Koz) Ag (g/t) Ag (Koz)
(Au g/t)
---------- --------- --------- --------- --------- ---------
0.60 1,904 1.12 69 3.22 197
---------- --------- --------- --------- --------- ---------
0.70 766 1.82 45 3.06 75
---------- --------- --------- --------- --------- ---------
0.80 670 1.98 43 3.18 68
---------- --------- --------- --------- --------- ---------
0.90 598 2.12 41 3.39 65
---------- --------- --------- --------- --------- ---------
1.00 547 2.22 39 3.49 61
---------- --------- --------- --------- --------- ---------
1.10 527 2.27 38 3.51 59
---------- --------- --------- --------- --------- ---------
1.20 487 2.36 37 3.64 57
---------- --------- --------- --------- --------- ---------
1.30 466 2.41 36 3.72 56
---------- --------- --------- --------- --------- ---------
1.40 340 2.80 31 2.64 29
---------- --------- --------- --------- --------- ---------
1.50 267 3.17 27 2.49 21
---------- --------- --------- --------- --------- ---------
The information communicated in this announcement includes
inside information for the purposes of Article 7 of Regulation
596/2014.
This announcement is an abridged version of the full
announcement, including appendices which provide additional details
of the updated JORC Resource estimate, is available on the
Company's website at www.metminco.com.au.
William Howe
Managing Director
For further information,
please contact:
METMINCO LIMITED
Stephen Tainton / Phil Killen Office: +61 (0) 2
9460 1856
NOMINATED ADVISOR AND BROKER
RFC Ambrian
Australia
Will Souter / Nathan Forsyth Office: +61 (0) 2
9250 0000
United Kingdom
Charlie Cryer Office: +44 (0) 20
3440 6800
JOINT BROKER
SP Angel Corporate Finance
LLP (UK)
Ewan Leggat Office: +44 (0) 20
3470 0470
PUBLIC RELATIONS
Camarco
United Kingdom
Gordon Poole / Tom Huddart Office: + 44 (0) 20
3757 4997
------------------------------ --------------------
Competent Persons Statement
Metal Mining Consultants Inc.
The information provided in this ASX Release as it relates to
Exploration Results and Mineral Resources of the Miraflores Gold
Project is based on information compiled by Scott Wilson, President
of Metal Mining Consultants Inc. in Colorado, USA. Mr Wilson, a
Qualified Person for JORC (2012 Edition) compliant statements,
reviewed the technical information presented in this document.
Mr Wilson has sufficient experience that is relevant to the
style of mineralisation and type of mineral deposit under
consideration, and to the activity which was undertaken, to make
the statements found in this report in the form and context in
which they appear. Mr Wilson has consented to be named in this
announcement and inclusion of information attributed to him in the
form and context in which it appears herein.
Forward Looking Statement
All statements other than statements of historical fact included
in this announcement including, without limitation, statements
regarding future plans and objectives of Metminco are
forward-looking statements. When used in this announcement,
forward-looking statements can be identified by words such as
"anticipate", "believe", "could", "estimate", "expect", "future",
"intend", "may", "opportunity", "plan", "potential", "project",
"seek", "will" and other similar words that involve risks and
uncertainties.
These statements are based on an assessment of present economic
and operating conditions, and on a number of assumptions regarding
future events and actions that, as at the date of this
announcement, are expected to take place. Such forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of the
Company, its directors and management of Metminco that could cause
Metminco's actual results to differ materially from the results
expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the
results, performance or achievements expressed or implied by the
forward-looking statements contained in this announcement will
actually occur and investors are cautioned not to place undue
reliance on these forward-looking statements. Metminco does not
undertake to update or revise forward-looking statements, or to
publish prospective financial information in the future, regardless
of whether new information, future events or any other factors
affect the information contained in this announcement, except where
required by applicable law and stock exchange listing
requirements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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