Dunav Announces an Increased Mineral Resource for its Tulare
Copper-Gold Project
547 million tonnes grading an average of 0.23% copper and
0.22g/t gold for 2.8 billion pounds of copper and 3.8 million
ounces of gold
LONGUEUIL, QUEBEC--(Marketwired - Jun 23, 2014) - Dunav
Resources Ltd. (TSX-VENTURE:DNV) (the "Company" or "Dunav") is
pleased to announce a mineral resource update for the Kiseljak
deposit and a new mineral resource estimate for the Yellow Creek
deposit, both part of Dunav's Tulare Copper-Gold Porphyry Project
in Southern Serbia.
The combined Kiseljak and Yellow Creek mineral resource
estimate, prepared by AMC Consultants Limited (UK) ("AMC"), an
independent mining consulting firm, has been estimated at 547
million tonnes grading an average of 0.23% copper ("Cu") and
0.22g/t gold ("Au") in the inferred resource category, for 2.8
billion pounds of copper and 3.8 million ounces of gold, using a
0.15% copper equivalent ("CuEq") cut-off and an open pit mining
scenario for Kiseljak and a 0.30% CuEq cut-off and a bulk
underground mining scenario for Yellow Creek.
A summary of the Kiseljak and Yellow Creek inferred mineral
resource estimate is tabulated below:
|
Kiseljak and Yellow Creek Inferred Mineral
Resource |
Deposit |
Cut-off (CuEq %) |
Million Tonnes |
Cu (%) |
Cu (Bn lbs) |
Au (g/t) |
Au (Moz) |
S (%) |
CuEq (%) |
AuEq (g/t) |
Kiseljak |
0.15 |
459 |
0.22 |
2.2 |
0.20 |
3.0 |
1.9 |
0.35 |
0.55 |
Yellow Creek |
0.30 |
88 |
0.30 |
0.6 |
0.30 |
0.8 |
2.8 |
0.48 |
0.77 |
Total |
|
547 |
0.23 |
2.8 |
0.22 |
3.8 |
2.1 |
0.37 |
0.59 |
- The effective date of the mineral resource estimate is
March 31, 2014.
- The copper price used for copper equivalent and gold
equivalent calculation approximates the mean of monthly average
London Metal Exchange copper spot prices for April 2013 to April
2014 and is $3.00/lb. The gold price used in the copper equivalent
and gold equivalent calculation approximates the mean of the
monthly average spot gold prices for April 2013 to April 2014 and
is US$1,300/oz.
- Taking into consideration currently available information,
possible projected throughput rates for the Tulare Copper-Gold
Porphyry Project, typical mining costs, and a range of processing
costs and indicative ranges of processing recoveries, Dunav
considers that cut-off grades lie in the range of 0.15% CuEq (for
an open pit mining scenario) to 0.30% CuEq (for a bulk underground
mining scenario).
- The copper and gold equivalent cut-offs used by Dunav are
based on the Cu and Au grades, using the following formulas:
- Using a gold price of US$41.80/gramme and a copper price of
US$66.00/per cent
- Cu_eq = ((Au*41.80)+(Cu*66.00))/66.00
- Au_eq = ((Au*41.80)+(Cu*66.00))/41.80
- The resources summarized above for Kiseljak are constrained
within a pit shell returning maximum undiscounted value based on
the following assumptions: NSR Cu price of US$3.15/lb (US$3.80/lb
spot price less 17% for offsite concentrate costs), NSR Au price of
US$1305/oz (US$1450/oz less 10% for offsite concentrate costs), 75%
Au recovery, 90% Cu recovery, US$1.80/tonne mining costs, US$7.00/
tonne processing and other costs and 45 degree pit slopes. Only
transitional and primary copper-gold mineralization is considered
in the pit shell determination.
- The resources summarized above for Yellow Creek are based
on the following assumptions: NSR Cu price of US$3.15/lb
(US$3.80/lb spot price less 17% for offsite concentrate costs), NSR
Au price of US$1305/oz (US$1450/oz less 10% for offsite concentrate
costs), 75% Au recovery, 90% Cu recovery, US$8.10/tonne mining
costs (bulk underground mining), US$7.00/ tonne processing and
other costs.
- Mineral resources, which 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
indicated or measured mineral resources.
- Totals and average grades are subject to rounding to the
appropriate precision.
Kiseljak
The Kiseljak updated inferred mineral resource has been
estimated at 459 million tonnes grading an average of 0.22% copper
and 0.20g/t gold for 2.2 billion pounds of copper and 3.0 million
ounces of gold, using a 0.15% CuEq cut-off. The key change between
the initial mineral resource estimate for the Kiseljak deposit
(news release of November 26, 2012) and the current mineral
resource is that the updated resource estimate is constrained
within a pit shell.
A summary of the updated Kiseljak inferred mineral resource
estimate using a range of CuEq cut-offs is tabulated below:
Cut-off (CuEq %) |
Million Tonnes |
Cu (%) |
Cu (Bn lbs) |
Au (g/t) |
Au (Moz) |
S (%) |
CuEq (%) |
AuEq (g/t) |
0.15 |
459 |
0.22 |
2.2 |
0.20 |
3.0 |
1.9 |
0.35 |
0.55 |
0.20 |
380 |
0.24 |
2.0 |
0.23 |
2.8 |
1.8 |
0.38 |
0.60 |
0.25 |
302 |
0.26 |
1.7 |
0.25 |
2.4 |
1.7 |
0.42 |
0.66 |
0.30 |
239 |
0.29 |
1.5 |
0.27 |
2.1 |
1.7 |
0.46 |
0.73 |
See notes above
Yellow Creek
The Yellow Creek inferred mineral resource has been estimated at
88 million tonnes grading an average of 0.30% copper and 0.30g/t
gold for 0.6 billion pounds of copper and 0.8 million ounces of
gold, using a 0.30% CuEq cut-off. At a 0.30% CuEq cut off, Yellow
Creek has a sub-vertical pipe-like morphology, which would be
potentially suitable for an underground 'bulk' mining approach.
A summary of the Yellow Creek inferred mineral resource estimate
using various cut-offs is tabulated below:
Cut-off (CuEq %) |
Million Tonnes |
Cu (%) |
Cu (Bn lbs) |
Au (g/t) |
Au (Moz) |
S (%) |
CuEq (%) |
AuEq (g/t) |
0.25 |
102 |
0.28 |
0.6 |
0.28 |
0.9 |
2.8 |
0.46 |
0.72 |
0.30 |
88 |
0.30 |
0.6 |
0.30 |
0.8 |
2.8 |
0.48 |
0.77 |
0.35 |
71 |
0.32 |
0.5 |
0.32 |
0.7 |
3.0 |
0.52 |
0.83 |
0.40 |
54 |
0.35 |
0.4 |
0.35 |
0.6 |
3.0 |
0.57 |
0.90 |
See notes above
1. ADDITIONAL INFORMATION
The Tulare Copper-Gold Porphyry Project comprises several
porphyry copper-gold targets including Kiseljak, Yellow Creek and
Calovica vis South, and also includes the Bakrenjaca carbonate base
metal epithermal vein system. All target areas are located within 3
km of the Kiseljak deposit. Dunav controls 100% of this recently
identified porphyry cluster, located within the Lece Volcanic
Complex.
Data
Acquisition
- The Kiseljak and Yellow Creek resource estimates are based on
131 drill holes, as at January 3, 2014. Details of the drilling and
sampling program, at the time of the database handover, are
summarised in the table below.
Item |
Kiseljak DD |
Yellow Creek DD |
Yellow Creek DT |
Yellow Creek RC |
Total |
HOLES |
80 |
39 |
3 |
9 |
131 |
METERS DRILLED |
32,844.2 |
19,474.1 |
505.8 |
1,326 |
54,150 |
SAMPLES |
32,614 |
19,472 |
503 |
1,314 |
53,903 |
AVERAGE RECOVERY |
94% |
96% |
95% |
- |
95% |
ASSAYS (Cu) |
32,614 |
19,472 |
503 |
1,314 |
53,903 |
ASSAYS (Au) |
32,614 |
19,472 |
503 |
1,314 |
53,903 |
ASSAYS (S) |
32,614 |
19,472 |
503 |
1,314 |
53,903 |
BULK DENSITIES |
4,664 |
3,180 |
65 |
- |
7,909 |
- Figure 1 displays the drilling carried out to date at Kiseljak
and Yellow Creek. Figure 2 shows a typical cross section through
the Kiseljak and Yellow Creek deposits.
- Diamond drilling has been carried out such that drill holes are
always started using PQ core and then reduced to HQ triple tube
(HQ3) once competent rock has been intersected. The diamond drill
core size is kept as HQ or HQ3 for as long as possible. Drill core
is carefully packed for transport to the sample processing facility
in Tulare. Once the diamond core has been processed (including
photography, geotechnical and geological logging, magnetic
susceptibility measurement, etc.) samples are then transported to
SGS Bor for sample preparation and analysis.
- The average core recovery is 95%.
- All drill hole collars were surveyed by differential GPS (DGPS)
by staff surveyors (registered independent surveyors regularly
audit Dunav's survey control and procedures).
- The diamond drill holes were down-hole surveyed, on average,
every 30 meters using electronic survey equipment.
- Kiseljak has been drilled on a nominal 80 meter by 80 meter
grid spacing while the average drill spacing at Yellow Creek is
approximately 120 meters by 120 meters.
- Diamond core sampling has been carried out using Dunav's
detailed protocols throughout the entire drilling program. A small
amount of reverse circulation drilling at Yellow Creek has also
been utilized, in order to drill through barren volcanic cover
rocks prior to completing the drill holes with diamond
drilling.
- Density measurements are routinely taken every three meters
down hole from diamond drill core. The bulk density of the drill
core segments have been measured at the SGS managed laboratory at
Bor using the industry standard wax-seal immersion method. Some
4,664 density measurements have been taken at Kiseljak along with
3,245 measurements at Yellow Creek for a total of 7,909 bulk
density values. The density data has been used for variographic
analysis and ordinary kriging estimation in order to estimate the
tonnage factors in the block model.
Assaying
- All drilling at Kiseljak and Yellow Creek has been routinely
assayed for copper (Cu), gold (Au), silver (Ag), molybdenum (Mo)
and sulphur (S). The primary assay laboratory is the SGS-managed
facility in Bor. Referee assaying has been carried out at Genalysis
in Australia, ALS in Vancouver, ALS Gura Rosiei in Romania, and ALS
Izmir in Turkey. Some 32,614 one meter samples were used to define
the Kiseljak model while 21,289 samples comprised the Yellow Creek
modelling data set. Routine quality control sampling and analysis
has been completed, as part of Dunav's standard QAQC
procedures.
Resource
Estimation
- One-meter composites were used to define lithological
boundaries, geological boundaries and the mineralized zone
outlines. Five-meter down-hole composites were used for statistical
analysis, variography and grade estimation. Some 6,537 composites
for Kiseljak and 4,363 composites at Yellow Creek were produced.
Detailed interpretation of the geological and grade data has
resulted in the modelling of 5 main zones of copper-gold
mineralization at Kiseljak and 3 zones at Yellow Creek.
- Comprehensive variography has been carried out for the Cu, Au,
S and bulk density data grade for use in the ordinary kriging
estimations. Where possible, separate variogram models have been
constructed for each defined mineralized zone, subdivided by
oxidation state; completely oxidized (COX), partially oxidized
(POX) and unoxidized (FRS).
- Block models have been prepared using a 20 m cubic parent block
size with sub-blocking to 10 m and 5 m.
- Grade estimation has been completed using ordinary kriging. In
some domains bulk density has been estimated using ordinary
kriging, while in others by inverse distance squared weighting. No
grade capping was applied.
Grade-Tonnage
Reporting
- The Kiseljak mineral resource was estimated using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared
by the CIM Standing Committee on Reserve Definitions and adopted by
CIM Council. The resource estimate is within the defined
mineralized wireframes, constrained by a pit shell and is reported
at a range of lower cut-off grades.
- Dunav believes that possible cut off grades lie in the range of
the base case of 0.15% CuEq (for an open pit mining scenario) to
0.30% CuEq (for a bulk underground mining scenario), based on
possible metal prices, mill throughputs (7mtpa to 12mtpa), mining,
processing and general administration costs, metal recoveries (90%
for Cu and 75% for Au), mass pull factors, concentrate grades,
moisture content, offsite concentrate costs, payability deductions,
treatment and refining charges.
- The Kiseljak and Yellow Creek resources have been categorized
as inferred resources using the CIM Standards on Mineral Resources
and Reserves, Definitions and Guidelines (November 2010).
Please see the following link to view all Kiseljak and Yellow
Creek drill holes located spatially in three dimensions:
http://www.corebox.net/properties/tulare-porphyry-project
2. SAMPLING AND ANALYSIS
Diamond drill core has been prepared at the laboratory facility
at Bor and assayed at the SGS managed laboratory at Bor. Diamond
drill samples have been assayed for gold by 50 gram fire assay with
an AAS finish whilst copper, silver and molybdenum have been
analysed using an aqua regia digest with an AAS finish. A one metre
sampling interval has been used where possible for the Tulare
Porphyry Project diamond drilling program; all diamond core is
routinely sampled and sent for assay. Half core is routinely
submitted to the laboratory for analysis. Reverse circulation drill
samples have been prepared at the laboratory facility at Bor and
assayed at the laboratory at Bor. A one meter sampling interval has
been used for the Tulare Porphyry Project reverse circulation
drilling program. Following Dunav standard quality assurance
procedures, a full suite of field and laboratory duplicates and
replicates along with internationally accredited standards and
blanks, have been submitted with each batch of samples.
3. QUALIFIED PERSONS
The Kiseljak and Yellow Creek resource estimates were undertaken
under the supervision of independent qualified person Chris Arnold
MAusIMM CP(Geo) of AMC. Mr. Arnold has reviewed and approved the
contents of this press release insofar as the Kiseljak and Yellow
Creek mineral resource estimates are concerned. The other technical
information contained in this press release was prepared and
approved by Dr Julian F. H. Barnes, FAusIMM, MAIG, a special
consultant to the Company. Dr. Barnes is a 'qualified person'
within the meaning of that term under National Instrument
43-101.
AMC is completing a National Instrument 43-101 technical report
for the mineral resource estimate to be filed on SEDAR within 45
days of this press release.
About Dunav Resources Ltd.: Dunav Resources is a mineral
exploration company focussed on the acquisition, exploration and
development of mineral properties in Serbia. Additional information
about the Company is available on SEDAR at www.sedar.com and at
www.dunavresources.com.
Dunav had approximately $7.1 million in its treasury at March
31, 2014, which it plans to use for the exploration and development
of its mineral projects in Serbia. Dunav's issued and outstanding
share capital totals 175,319,442 common shares, of which
approximately 45.5% is held by Dundee Precious Metals Inc.
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.
Cautionary Statement
This press release contains 'forward-looking information'
within the meaning of applicable Canadian securities legislation.
Forward looking information in this news release includes
information with respect to the mineral resource estimate and its
potential expansion and upgrade to a higher level of confidence,
the timing, location, and results of future work programs, and the
geological and economic potential of the Tulare Project, including
the possibility of developing an underground operation
there.
Mineral resources are not mineral reserves and do not have
demonstrated economic viability. Inferred resources have a great
amount of uncertainty as to their existence, and as to their
economic and legal feasibility. Investors are cautioned not to
assume that all or any part of an inferred mineral resource
reported in this news release will ever be upgraded to a higher
category or to reserves.
Although the Company believes in light of the experience of
its officers and directors, current conditions and expected future
developments and other factors it considers to be relevant that the
expectations reflected in this forward-looking information are
reasonable, undue reliance should not be placed on them because the
Company can give no assurance that they will prove to be correct.
Forward-looking information is subject to known and unknown risks
and uncertainties, and depends on assumptions and other factors,
all of which may cause actual results or events to differ
materially from those anticipated or estimated in such
forward-looking information. The forward-looking statements
contained in this press release are made as of the date hereof and
the Company undertakes no obligations to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws.
Figure 1 is available at the following address:
http://media3.marketwire.com/docs/953627a_Fig1.pdf.
Figure 2 is available at the following address:
http://media3.marketwire.com/docs/953627a_Fig2.pdf.
Dunav Resources Ltd.James Crombie, President and Chief Executive
Officer+1.450.640.0810info@dunavresources.comwww.dunavresources.com