Eleonore Zone Inferred Resources Total 357,920 Ounces at 4.18
g/t Au
MONTREAL, May 1, 2017 /CNW Telbec/ - ALGOLD RESOURCES
LTD. (TSXV: ALG) (the "Corporation") is pleased to announce an
updated mineral resource estimate in accordance with the Canadian
Securities Administrators' National Instrument 43-101 ("NI 43-101")
for its Tijirit Property ("Tijirit" or "the Property") in
Mauritania. The 100%-owned Tijirit
project, which encompasses an area of more than 1,000
km2, is situated approximately 25 kilometers southeast
of Kinross' Tasiast gold mine.
Highlights
The updated NI 43-101 technical report
comes only nine months following our maiden report (reference
Algold's NI 43-101 technical report filed August 4, 2016). Inferred resources at the
Eleonore zone, where the majority of drilling was completed,
increased significantly to 357,920 ounces at 4.18 g/t Au at a
cut-off grade of 1.5 g/t Au. For comparison purposes with Algold's
maiden report, and using base case scenario (see below), Eleonore
inferred resources increased from 19,650 ounces of gold at 3.26 g/t
Au to 357,920 ounces of gold at 4.18 g/t Au. It is important
to note that capping negatively impacts results, particularly when
applied to nuggety high-grade mineralizations such as that at
Tijirit, resulting in an overall decrease in grade and ounces of
approximately 20%.
The overall high grade nature of the Eleonore deposit allows for
various cut-off grade parameters to be applied and thus will allow
Algold to choose between various potential mining scenarios as more
drilling will permit to better define the width, depth and strike
extension.
Eleonore Zone
- The base case, with a cut-off grade (COG) of 1.5 g/t Au without
pit constraints, includes inferred resources of 357,920 ounces of
gold at a grade of 4.18 g/t Au.
Lily and Sophie Zones
- The base case, with a COG of 0.4 g/t Au in pits and 1.4 g/t Au
under pits, incudes measured and indicated resources of 43,430
ounces of gold at a grade of 1.04 g/t Au and inferred
resources of 244,210 ounces of gold at a grade of 1.37 g/t Au.
- The alternate case, with a COG of 1.5 g/t Au without pit
constraints, includes measured and indicated resources of 17,710
ounces of gold and inferred resources of 148,820 ounces of gold
both at 2.24 g/t Au.
The updated report takes into consideration 24,104 meters of
reverse-circulation ("RC") drilling and 4,181 meters of core
drilling, most of which was carried out on the Eleonore zone.
The base case resources by zone are shown in the following
tables, at cut-off grades of 0.4 g/t Au COG in pits and 1.4 g/t Au
COG under pits, excepts for Eleonore at a global cut off 1.5 g/t
Au. Alternate scenarios are presented at 1.0 g/t Au, 1.5 g/t Au and
2.0 g/t Au COG without use of pit constraints. Note that the 1.0
g/t Au cut of grade is presented for comparisons with Maiden
Resources, but has no reasonable prospect for eventual economic
extraction using the new cost and price assumptions. Figure 1 shows
the up-to-date drilling over the mineralized zones on a recent
(April 2017) aerial photography of
Tijirit. Figures 2a, 2b, and 2c, present longitudinal sections of
the Eleonore North, Central and South gold zones.
Table 1: Tijirit Base Case Resources (0.4 g/t Au cut-off in pit
and 1.4 g/t Au under pit, except Eleonore at 1.5 g/t Au)
|
|
|
|
|
Zone
|
Classification
|
Au
(g/t)
|
Tonnage
(t)
|
Ounces
|
Sophie/Lily
|
Measured
|
1.03
|
73,000
|
2,420
|
Sophie/Lily
|
Indicated
|
1.04
|
1,226,000
|
41,010
|
Total
|
M+Ind
|
1.04
|
1,299,000
|
43,430
|
Sophie/Lily
|
Inferred
|
1.37
|
5,528,000
|
244,210
|
|
|
|
|
|
|
|
|
|
|
Zone
|
Classification
|
Au
(g/t)
|
Tonnage
(t)
|
Ounces
|
Eleonore
|
Inferred
|
4.18
|
2,665,000
|
357,920
|
|
|
|
|
|
|
|
|
|
|
Zone
|
Classification
|
Au
(g/t)
|
Tonnage
(t)
|
Ounces
|
Total
Sophie/Lily/Eleonore
|
Inferred
|
2.29
|
8,193,000
|
602,130
|
1. Effective dates
for Eleonore and Sophie/Lily resources are March 17, 2017 and
November 4, 2016,
respectively.
|
2. The Independent QP
for this resources statement is Yann Camus, Eng., SGS Canada
Inc.
|
3. The mineral
resources are presented at a 0.4 g/t Au cut-off grade in pits and
1.4 g/t Au cut-off grade under the pits, except Eleonore at a
global cut-off 1.5 g/t Au.
|
4. The resources are
presented without
dilution.
|
5. Whittle pits have
been used using a gold value of
US$1,500/oz.
|
6. Mineral resources
that are not mineral reserves do not have demonstrated economic
viability. This disclosure does not include economic analysis of
the mineral resources.
|
7. Totals may not add
up due to
rounding.
|
8. No economic
evaluation of the resources has been
produced.
|
9. This resource
estimate has been prepared in accordance with CIM definition
(2014).
|
10. Density used is
between 2.0 and 3.0 depending on rock type and alteration based on
measurements.
|
11. Capping varies
from 3.5 g/t Au (Lily) to 45 g/t Au (Eleonore) depending on extreme
local grade.
|
Table 2: Tijirit Sensitivity Analysis (The mineral resources are
presented at a 1.0 g/t Au COG - for comparison with maiden
resources only.)
Sophie & Lily
|
|
|
|
|
|
Zone
|
COG
|
Classification
|
Au
(g/t)
|
Tonnage
(t)
|
Ounces
|
Sophie/Lily
|
1.0
|
M+Ind
|
1.68
|
538,000
|
29,040
|
Sophie/Lily
|
1.0
|
Inferred
|
1.65
|
4,800,000
|
253,920
|
Sophie/Lily
|
1.5
|
M+Ind
|
2.24
|
246,000
|
17,710
|
Sophie/Lily
|
1.5
|
Inferred
|
2.24
|
2,068,000
|
148,820
|
Sophie/Lily
|
2.0
|
M+Ind
|
2.76
|
122,000
|
10,800
|
Sophie/Lily
|
2.0
|
Inferred
|
2.87
|
932,000
|
85,880
|
Eleonore
|
|
|
|
|
|
Zone
|
COG
|
Classification
|
Au
(g/t)
|
Tonnage
(t)
|
Ounces
|
Eleonore
|
1.0
|
Inferred
|
3.01
|
4,434,000
|
428,690
|
Eleonore
|
1.5
|
Inferred
|
4.18
|
2,665,000
|
357,920
|
Eleonore
|
2.0
|
Inferred
|
5.57
|
1,701,000
|
304,660
|
Refer to base case
table for assumptions. Detailed tables for separate Measured and
Indicated numbers will be in the full NI 43-101 report.
|
Table 3: Eleonore Zone Sensitivity Analysis - Various Cut-off
Grades
|
|
|
|
|
|
|
COG (In
Pit)
Au
(g/t)
|
COG
(Under
Pit)
Au
(g/t)
|
Class
Name
|
Au
(g/t)
|
Tonnage
(t)
|
Ounces
Au
|
Comments
|
0.4
|
1.4
|
Inferred
|
3.13
|
3,978,000
|
400,820
|
COG different in pit
and under pit
|
0.5
|
1.4
|
Inferred
|
3.18
|
3,905,000
|
399,740
|
1.0
|
1.4
|
Inferred
|
3.60
|
3,334,000
|
385,900
|
|
|
|
|
|
|
|
COG (In
Pit)
Au
(g/t)
|
COG
(Under
Pit)
Au
(g/t)
|
Class
Name
|
Au
(g/t)
|
Tonnage
(t)
|
Ounces
Au
|
Comments
|
1.0
|
1.0
|
Inferred
|
3.01
|
4,434,000
|
428,690
|
Equal COG in pit and
under pit
|
1.5
|
1.5
|
Inferred
|
4.18
|
2,665,000
|
357,920
|
2.0
|
2.0
|
Inferred
|
5.57
|
1,701,000
|
304,660
|
2.5
|
2.5
|
Inferred
|
6.93
|
1,211,000
|
269,730
|
COG = cut-off
grade
Base case 43-101 scenario highlighted in grey
|
Table 4: Tijirit Maiden Resources (1.0 g/t Au cut-off, no pit
constraints (August 4, 2016)
|
|
|
|
|
Zone
|
Category
|
Au
(g/t)
|
Tonnage
(t)
|
Gold
Ounces
|
Eleonore
|
Indicated
|
3.62
|
51,000
|
5,980
|
Sophie I -
II
|
Measured
|
1.79
|
28,000
|
1,600
|
Sophie I -
II
|
Indicated
|
1.57
|
216,000
|
10,900
|
Sophie III
|
Indicated
|
1.13
|
29,000
|
1,040
|
Lily
|
Indicated
|
1.54
|
189,000
|
9,410
|
Total Measured
& Indicated*
|
1.75
|
513,000
|
28,930
|
|
|
|
|
|
|
Eleonore
|
Inferred
|
3.26
|
188,000
|
19,650
|
Sophie I -
II
|
Inferred
|
1.96
|
1,635,000
|
103,180
|
Sophie III
|
Inferred
|
1.10
|
320,000
|
11,270
|
Lily
|
Inferred
|
1.48
|
2,258,000
|
107,470
|
Total
Inferred*
|
1.71
|
4,401,000
|
241,560
|
* Totals may not add
up due to rounding.
|
Increasing Potential of the Tijirit Project
"As
anticipated, Tijirit's Eleonore Zone
continues to deliver high grade gold resources. The ongoing Phase
III drilling indicates that the mineralization is open along strike
and at depth, leading us to believe that we can continue to
increase the magnitude this resource significantly," stated
Francois Auclair, Algold's President
and Chief Executive Officer. "Infill drilling on the Eleonore
North, South and Central areas of the drilling target continues to
impress, with both remarkable grades and stand-out widths, such as
hole T17RC045 (Eleonore South) – 10
m @ 14.15 g/t Au (reference Algold's press release dated
April 25, 2017). Additionally, the results reported on
April 6, 2017 from hole T17RC013, 3 m
@ 7.69 g/t Au, including 1 m @ 20.2 g/t Au on
Eleonore South at a vertical depth
of 150 meters are beginning to outline an area that could grow
significantly in the future with additional drilling, both in
strike-length and dip continuity (Figure 2c). In addition, recent
geological mapping shows the presence of new structures parallel or
sub-parallel to the mineralized zones."
Whittle optimized open pits have been prepared to allow to
constrain the resource estimate. The assumptions are a gold price
of US$1,500/oz, mining recovery of
95%, mining dilution of 5%, processing recovery of 95%, a
processing cost of $14/t, a G&A
cost of $3/t and an open pit mining
cost of $3/t. The cut-off grades for
the base case are calculated from the same assumptions with the
addition of an underground mining cost of $40/t. The resulting COGs are 0.4 g/t Au in open
pits and 1.4 g/t Au under the open pits. For Eleonore, Algold
believes the best potential is expressed at a reasonable COG of 1.5
g/t.
Algold's Phase III drilling program is currently underway with
the aim to further increase mineral resources.
Resources Modeling and Estimation
The resource
estimation was prepared by SGS Canada Inc. – geological group
Geostat ("SGS Geostat") with an effective date of March 17, 2017, using results from 489 RC holes
totalling 61,807 meters, 53 diamond drill holes ("DDH") totalling
7,995 meters and 16,239 meters of trenching carried out on the
property both by Algold Resources in 2016 and 2017 and past
operators Shield Mining and Gryphon Minerals from 2009 to 2012. The
supporting NI 43-101 Technical Report will be posted on SEDAR at
www.sedar.com no later than 45 days after the date of this
release.
The database contains 542 drill holes and 197 trenches with
58,752 assay results. (Details are provided in the table
below.)
|
|
|
|
|
Hole
Types
|
Number
of
Drill
Holes
|
Sum
of
Length
(m)
|
Number
of
Assays*
|
Sum of
Assayed
Length
(m)*
|
DDH
|
53
|
7,995
|
4,785
|
4,688
|
RC
|
489
|
61,807
|
47,071
|
61,678
|
Trenches
|
197
|
16,239
|
6,896
|
16,207
|
Total
|
739
|
86,041
|
58,752
|
82,573
|
*Some historical
assays (223) have no gold grades, but are part of the
total.
|
A modeling cut-off grade of 0.3 g/t Au, a minimum thickness of
two meters and a minimum accumulation of 1.2 m.g/t were used to
delineate mineralized volumes. The 1,628 two-meter composites were
capped at grades varying between 3.5 g/t Au and 45 g/t Au based on
local extreme grades. Only 14 composites were capped. The gold loss
due to the capping is of 16% for the base case resource. Densities
are based on 898 readings from DDH holes. A density of 2.00
t/m3 was used for saprolite and fresh rock was set to
2.7 t/m3 in the Lily zone, 2.8 t/m3 in the
Sophie III zone, 2.85 t/m3 in the Sophie II zone, 3.0
t/m3 in the Sophie I zone and 2.86 t/m3 in
the Eleonore zone.
The block model has a block size of 2 x 2 x 2 meters. Estimation
was done by inverse distance squared with ellipsoid influenced
distances. A total of 154 separate volumes were estimated with 154
composite sets. Two estimation passes were used with ellipsoids of
75 x 75 x 25 meters and 150 x 150 x 50 meters. The first pass uses
a minimum of four and a maximum of seven composites, with a limit
of two per drill hole. The second pass uses a minimum two and a
maximum of seven composites, with a limit of two per drill hole
except for 32 volumes with a minimum of one. The smoothing of the
estimation is adequate. The measured and indicated categories have
been outlined by hand on longitudinal based on drilling density.
Drilling every 40 meters was classified as indicated and drilling
every 30 meters was classified as measured. Eleonore has only
inferred with a maximum interpolation up to 100 meters and 45
meters extrapolation. The remainder is inferred with interpolation
up to 200 meters and limited extrapolation.
Algold Retains the Services of Investor Relations
Firm
Algold is pleased to announce that it has engaged
Paradox Public Relations Inc. ("Paradox") as strategic investor
relations consultants to the Corporation. Paradox will focus on
developing and expanding Algold's communications with the
investment community through a comprehensive investor relations
program. Paradox is an investor relations company founded in
2001 and is based in Montreal,
Canada. Paradox provides a wide range of services to
companies to help broaden investor exposure and develop a
shareholder following. The term of the agreement entered into
between the Corporation and Paradox is for an initial period of six
months. In consideration for its services, Algold has agreed to pay
to Paradox a monthly fee of $6,500.
In addition, the Corporation has granted to Paradox stock options
giving it the right to purchase up to 300,000 common shares of the
Corporation, to be priced according to Algold guidelines. The
options granted will vest quarterly starting on the grant date.
Quality Assurance / Quality Control (QA/QC)
Since the
beginning of 2017, analytical work for drill core and reverse
circulation chips, geochemical samples and rock chip samples has
been carried out at the independent SGS Laboratories Ltd. in
Bamako, Mali. The 50 g fire assay
with ASS finish analytical services are accredited by SANAS and are
carried out with a quality assurance protocol in line with ISO
17025:2005. Prior to 2017, drill samples were prepared in the
independent ALS Laboratory in Nouakchott,
Mauritania and analysed at ALS Laboratories Ltd. in
Loughrea, Co. Galway, Ireland, an
ISO 17025 (2005) Certified Laboratory.
In both 2016 and 2017, samples are stored at the Company' field
camp and put into sealed bags until delivered by a geologist on
behalf of Algold to the respective laboratory where samples are
prepared and analyzed. Algold's samples are logged in the tracking
system, weighed, dried and finely crushed to better than 70%,
passing a 2 mm (Tyler 9 mesh, US Std. No.10) screen. A split of
1,000 g is taken and pulverized to better than 85%, passing a
75-micron (Tyler 200 mesh) screen, and a 50-gram split is analyzed
by fire assay with an AA finish. Selected samples may be
re-analyzed using a 1 kg cyanide leach (Bottle Roll) using
"LeachWELL" or a 1 kg screen fire assay method. These results
automatically supersede the original 50g fire assay result.
As part of Algold's quality assurance and quality control (QAQC)
procedures; blanks, duplicates and certified reference material
(standards) are routinely inserted within the sample stream to
monitor laboratory performance during the preparation and
analysis.
This press release has been reviewed for accuracy and compliance
under National Instrument 43-101 by Yann
Camus, P.Eng., of the independent firm SGS Canada Inc.
– geological group Geostat is the qualified person under NI
43-101 standards who supervised the preparation of the resource
estimate and approved all resource-related material in this press
release. Yann Camus has sufficient
experience relevant to the styles of mineralization under
consideration and to which the activities are being reported to
qualify as the Qualified Person for the purposes of the
announcement. Yann Camus has
reviewed the results of the QAQC program at Tijirit, both during
and prior to Algold's involvement, and is sufficiently satisfied
with both the QAQC protocol as well as the performance of the QAQC
measures to view the assay results reported in this release as both
accurate and precise. Mr Camus visited the property from
April 16 to 20, 2016, for current
personal inspection requirements. All information supporting the
resource estimation was verified for any inconsistencies. There was
no limitation on the verification process.
André Ciesielski, DSc., PGeo., Algold Resources Ltd Lead
Consulting Geologist and Qualified Person, and Alastair Gallaugher, C.Geo. (Chartered Geologist
and Fellow of the Geological Society of London), BSc. Geology, Algold's Exploration
Manager in Mauritania, Qualified
Persons as defined by NI 43−101 Standards of Disclosure
for Mineral Projects. André Ciesielski has further approved the
scientific and technical disclosure in the news release. All
information pertaining to the resource estimates have been reviewed
for accuracy and compliance under National Instrument 43-101 by
Yann Camus, P.Eng., SGS Canada Inc.
and Qualified Person.
ABOUT ALGOLD
Algold Resources Ltd is focused on the
exploration and development of gold deposits in West Africa. The board of directors and
management team are seasoned resource industry professionals with
extensive experience in the exploration and development of
world-class gold projects in Africa.
FORWARD-LOOKING INFORMATION
This press release contains and refers to
forward-looking information based on current expectations. All
other statements other than statements of historical fact included
in this release are forward-looking statements (or forward-looking
information). The Corporation's plans involve various estimates and
assumptions and its business is subject to various risks and
uncertainties. For more details on these estimates, assumptions,
risks and uncertainties, see the Corporation's most recent
Management Discussion and Analysis on file with the Canadian
provincial securities regulatory authorities on SEDAR at
www.sedar.com. These forward-looking statements are made as of the
date hereof and there can be no assurance that such statements will
prove to be accurate. Forward-looking statements are
subject to significant risks and uncertainties, and actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements that are included herein,
except in accordance with applicable securities laws.
For further information, please contact:
Algold Resources Ltd.
1320, boul. Graham,
bureau 132, Mont-Royal, Québec,
H3P 3C8, www.algold.com
SOURCE Algold Resources Ltd.