Merc Announces Initial Ni 43-101 Resource of 1.446 Million Ounces Gold At Colomac
TORONTO, Feb. 22, 2012 /CNW/ – Merc International Minerals Inc. (“Merc“) (TSX Venture: MRK) is pleased to announce an initial NI 43-101 Inferred Mineral Resource estimate of 1.446 million ounces gold (“oz Au“) at its 100% owned Colomac property (“Colomac Gold Project“) in the Northwest Territories (“NWT“). Colomac’s five known gold deposits are represented in this mineral resource estimate: Colomac Dyke, Goldcrest, Dyke Lake, Grizzly Bear, and 24/27, all of which remain open laterally and to depth.
- Total Inferred Mineral Resources are estimated to be 42.65 million tonnes with an average grade of 1.05 grams per tonne gold (“g/t Au“) for 1.446 million oz Au;
- Limited historical drilling discovered a high grade shoot below the main deposit tracing it to a depth of 1,000 metres. This shoot is not included in the current resource estimate. The potential for additional high-grade shoots exists over the Colomac Dyke’s seven kilometre strike length; and
- Colomac’s tonnage and contained ounces are expected to increase due to the deposits’ significant exploration prospects. Potential high grade shoots, if delineated, may lead to an increase the average grade.
David Wiley, Merc President and CEO, remarked, “We see this initial 1.446 million ounce inferred gold resource as a significant starting position, and we believe that we will be able to expand and upgrade the resource over the coming months through our 2012 drilling program. The acquisition of the Colomac property materially changes the profile of Merc, and Colomac now represents the backbone of the Company’s combined projects within our existing 234,000 acre property package.”
Merc has two drills on site and expects to initiate a winter drill program by mid-March. Drilling will focus on two resource expansion opportunities at the Colomac Dyke, near surface mineralization along strike and to depth, and the high-grade plunging shoots to depth. An expanded summer drill program is anticipated to incorporate drilling at Colomac’s other four gold deposits and to continue to advance our Indin Lake Project portfolio.
2012 Resource Estimate
The currently defined Colomac Gold Project mineralized zones are considered low grade bulk tonnage style deposits. Resources were defined using a block cut-off grade of 0.6 g/t Au. The 2012 Resource Estimate utilizes historical diamond drilling results from approximately 896 holes; most completed between 1987 and 1997. Despite the number of holes, all resources have been assigned to the Inferred category because of the historic nature of the data and the need for verification work, which is yet to be completed by Merc.
Total Inferred Mineral Resources are estimated to be 42.65 million tonnes with an average grade of 1.05 g/t Au for 1.446 million oz Au. Historically mined volumes of the Colomac Dyke mineralization have been deleted from the current resource model.
Colomac Gold Project Inferred Mineral Resources by Zone
(using Block Model Cut-off Grade of 0.6 g/t Au)
|Colomac Dyke North
|Colomac Dyke Central
|Colomac Dyke South
|Dyke Lake (Goldcrest North)
- A block cut-off value of 0.6 g/t Au was applied to all resource blocks.
- Tonnes and ounces have been rounded to reflect the relative accuracy of the mineral resource estimate; therefore numbers may not total correctly.
- Mineral Resources were calculated with commercial mining software. Drill holes traces showing lithology and gold grade were reviewed in plan and cross section to generate 16 mineralised domains. Assays with each domain were top cut to 31 g/t and then composited to regular 5ft intervals. Block model grade interpolation was undertaken using Multiple Indicator Kriging (MIK).
- The resource estimate was prepared by Leon McGarry, B.Sc., Geologist, ACA Howe and supervised by Felix N. Lee, B.Sc., P.Geo., Senior Geologist, ACA Howe.
- Gold price is US$1400 per ounce.
- A default average specific gravity (SG) value of 2.7 has been used.
- Mineral Resource tonnes quoted are not diluted.
- No Measured or Indicated Resources or Mineral Reserves of any category are identified.
- Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. This mineral resource estimate includes inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated resource categories through further drilling, or into mineral reserves, once economic considerations are applied.
- 1 troy ounce equals 31.10348 grams.
The Inferred Mineral Resources are sensitive to the block model cut-off grade as shown in the following sensitivity table:
Colomac Gold Project Global Block Model Cut-off Grade Sensitivity Table
|Block Model Cutt-
off Value g/t Au
|Block Model Avg.
Grade g/t Au
|Total OZ Au
Note: The reader is cautioned that the figures in this table are not a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade.
About The Colomac Gold Project
The Colomac Gold Project lies within the central portion of Merc’s 234,013 acre Indin Lake Gold Property, 220 kilometres northwest of Yellowknife, NWT. Access is by winter road from Yellowknife or year round by chartered aircraft to a 5,000 foot airstrip at the former Colomac Gold Mine site. Merc has secured a contiguous land position fully surrounding the Colomac Gold Project by consolidating more than 90% of the Indin Lake Greenstone Belt including the related Indin Lake Gold Camp. The Colomac Gold Project contains at least five separate gold deposits open in all dimensions (Colomac Dyke, Grizzly Bear, Goldcrest, Dyke Lake, and 24/27), only one of which, the Colomac Dyke Deposit, was historically mined. Intermittent mining from 1990 to1997 was limited to three shallow open pits developed on a steeply dipping quartz-feldspar porphyry intrusion (Colomac Dyke). Historical production is reported to be 527,908 oz Au with an average head grade of 1.66 g/t Au. Mining activities impacted only a small portion of the dyke’s 7 kilometre mineralized strike length. All mining and processing equipment and infrastructure have been removed from the Colomac Property.
About Merc International Minerals Inc.
Merc is a Canadian-based exploration company focused on acquiring and developing gold mineral properties in the NWT. Its primary land position covers 234,013 acres or 94,701 hectares in the Indin Lake Gold Camp, located approximately 220 kilometres north of Yellowknife, NWT and includes an NI 43-101 Inferred Mineral Resource totalling 1.446 million oz Au with an average grade of 1.05 g/t Au using a block cut-off grade of 0.6 g/t Au.
The technical aspects of this press release have been reviewed by Michael Byron, Ph.D., P.Geol., Chief Geologist and Director for Merc, who is the “Qualified Person” as defined by NI 43-101 for this project.
Technical information related to the 2012 Colomac Gold Project Resource Estimate contained in this news release has been reviewed and approved by Felix N. Lee, B.Sc., P.Geo., a Senior Geologist with A.C.A. Howe International Limited, who is an independent Qualified Person as defined by NI 43-101, with the ability and authority to verify the authenticity and validity of this data. The technical report supporting 2012 Colomac Gold Project Resource Estimate will be filed on SEDAR within 45 days.
An Inferred Mineral Resource as defined by the CIM Standing Committee is “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, working and drill holes.”
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.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including, but not limited to, the timing of future drilling, the expansion of the mineralization, and the remediation of historic reclamation sites. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Merc, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, dependency upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.