Majestic Gold Again Increases Resources at Its Song Jiagou Mine
October 18 2010 - 12:12PM
Marketwired
Majestic Gold Corp. (TSX VENTURE: MJS) ("Majestic") is pleased to
announce the results of an updated resource estimate on its Song
Jiagou Mine.
As part of the ongoing assessment on the Song Jiagou Mine,
Wardrop Engineering Inc. ("Wardrop") has revised their previous
resource estimate (NR 23 April, 2010) as a result of the revision
to the contract mining costs (NR 30 September 2010) which allowed
cut-off grades to be reduced from 0.40 g/t to 0.30 g/t and
warranted a revision of the block model.
Subsequent to the initial resource estimate, Wardrop determined
that rotating the block model perpendicular to drilling direction
was the most favorable orientation to evaluate the deposit and to
calculate the revised resource. The new cut-off grade and the
re-orientation of the model significantly increased the overall
size of the resource and the contained ounces of gold in both the
inferred and indicated categories.
The revised resource is:
-----------------------------------------------------------------
Grade Au
Category Tonnes(i) (g/t)(ii) Contained oz Au
-----------------------------------------------------------------
Indicated 33,739,586 1.147 1,244,211
-----------------------------------------------------------------
Inferred 38,812,054 1.467 1,830,576
-----------------------------------------------------------------
(i)Calculations conducted using 0.30 g/t cut-off
(ii)Gold grades were capped at 40 g/t
The most significant changes from the previous estimate are:
-- Increase in Indicated tonnes by 35.34% to 33,739,586 tonnes
-- Increase in Indicated contained gold by 24.09% to 1,244,211 ounces
-- Increase in Inferred tonnes by 37.96% to 38,812,054 tonnes
-- Increase in Inferred contained gold by 7.48% to 1,830,576 ounces
The increase in the size of the resource from 53 to 72.5 million
tonnes will very significantly reduce the strip ratios to be used
as Majestic continues its engineering studies on the Song Jiagou
mine. Wardrop will move forward now to re-evaluate a production pit
design.
Majestic continues to work with Wardrop and its sister company,
Tetra Tech (Beijing) Consultancy Company Limited, (both
subsidiaries of Terta Tech Inc.) to complete a Preliminary Economic
Assessment, concurrent with the required Chinese Geological and
Engineering studies required to apply for increased production
levels at Song Jiagou. The results of these studies will ultimately
culminate in a Pre-feasibility report.
The geological and technical information contained in this news
release has been reviewed and approved by Greg Mosher, P. Eng, of
Wardrop Engineering, and Mike Hibbitts, P.Geo., who are qualified
persons under the definitions established by National Instrument
43- 101.
On Behalf of the Board of Directors
MAJESTIC GOLD CORP.
Rod Husband, P.Geo, President
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore, involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements.
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 release.
Contacts: Majestic Gold Corp. Investor Relations (604) 681-4653
or 1-866-282-8398 info@majesticgold.net www.majesticgold.net
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