Toronto, Ontario–(Newsfile Corp. – October 2, 2013) – Crown Gold Corporation (TSXV: CWM) (“Crown” or the “Company“) is pleased to announce initial resource estimates, compliant with the requirements of National Instrument 43-101 (“NI 43-101”), for its 100% controlled Superior and Engels copper deposits located in northeast California, USA.
- An inferred mineral resource of 54 million metric tonnes at an average grade of 0.41% total copper with 487 million pounds of contained copper in the Superior Deposit.
- An inferred mineral resource of 2.6 million metric tonnes at an average grade of 1.05% total copper with 60 million pounds of contained copper in the Engels Deposit.
The estimate is summarized as follows:
Notes: Engels tonnage has been adjusted by removal of 700,000 tonnes at the average estimated grade above cut-off to account for material historically mined within the pit shell volume.
“We are very pleased to be able to confirm a significant proportion of the historic (non-43-101 compliant) resource estimate for the Superior Project. This NI 43-101 compliant resource estimate for the Superior and Engels Deposits will be the foundation for a focused exploration program designed to expand in open directions the two deposits identified and to advance the inferred resource to the indicated resource category. We are confident that the Engels resource estimate can be significantly increased and more resources can be established at Crown’s Sulfide Ridge Deposit situated between the Superior and Engels Deposits.” states Stephen Dunn, CEO and Director of Crown Gold.
In order to establish a reasonable prospect of economic extraction in an open pit context, the resources above were defined: within an optimized pit shell with pit walls set at 45 degrees; estimated recovery of 90% for copper recovered by flotation and 80% for copper recovered by SX-EW; mining costs of $2.80/tonne of material mined; process costs of $8.00/tonne of material processed by flotation and $1.35/lb Cu for material processed by SX-EW; and general and administrative costs of $2.00/tonne processed. Mineral resources were estimated on the basis of a copper price of US$3.00/lb.
Mineral resources were estimated by ordinary kriging, using Techbase software in 10 by 10 by 10 meter blocks for the Engels Deposit and 20m by 20m by 10m blocks for the Superior Deposit, both constrained by probabilistic grade shells based on a 0.2% total copper cut-off. Grade estimates within the grade shells were based on uncapped, 5 meter composited assay data.
Despite otherwise sufficient data density, blocks were classified as inferred mineral resources primarily due to reliance on historic core drill hole data for which adequate documentation of sampling, analytical and QA/QC protocols consistent with current industry standards does not exist. The mineral resources were estimated using current Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards, definitions and guidelines. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
The Company is preparing a NI 43-101 compliant technical report in respect of the updated resource estimate discussed in this news release and will file the technical report on SEDAR within 45 days of the date on which this news release is disseminated.
William F. Tanaka, Independent Mineral Consultant, FAusIMM, has prepared the Mineral Resource Estimate for the Superior Project, and is independent of Crown Gold for purposes of NI 43-101.
Mr. Tanaka is the Qualified Person pursuant to NI 43-101 responsible for, and has reviewed and approved, the technical information contained in this news release.
About the Superior Project
The Superior Project currently consists of three deposits, Superior, Sulfide Ridge and Engels, associated with the Lights Creek Stock, a quartz monzonite porphyry. Historic mining from 1914 through 1930 produced over 160 million lbs. of copper from 4.3 million metric tonnes of ore (3.1 million from Engels and 1.2 million from Superior) at a recovery adjusted (85% recovery) grade of 2.2% copper.
The Superior and Sulfide Ridge Deposits are hosted within the Lights Creek Stock and are classified as copper porphyry deposits with disseminated mineralization in the form of chalcopyrite and bornite present within stockwork fractures. The Engels Deposit lies just outside the Lights Creek Stock in the surrounding metavolcanic country rock and is classified as a structurally controlled deposit.
The Sulfide Ridge Deposit has insufficient drilling (total of 28 widely space drill holes) to permit reportable resource estimation.
Crown Gold benefits from extensive exploration of all three deposits by Placer Amex in the 1960’s and 1970’s as well as more recent exploration of the Engels and Superior Deposits in the period of 2005-2010.
For more information please see the Crown website at www.crowngoldcorp.com.
For Further Information Contact:
Mr. Stephen Dunn, President and CEO, Crown Gold Corporation (416) 361-2827
or email [email protected].
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 press release.
This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws and regulations, including statements regarding the future activities of the Company. Forward-looking statements reflect the current beliefs and expectations of management and are identified by the use of words including “will”, “anticipates”, “expected to”, “plans”, “planned” and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company’s management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward-looking statements.