Indicated Resources – 661,000 Gold
Equivalent OuncesInferred Resources – 341,000 Gold
Equivalent Ounces
Oceanus Resources Corporation (TSX-V:OCN) (OTCQB:OCNSF) ("Oceanus"
or the “Company”) announces an independent Mineral Resource
Estimate for the El Tigre Property completed by P&E Mining
Consultants Inc. ("P&E") which is detailed in Table 1 below.
The El Tigre Property, located in Sonora, Mexico, is owned and
operated by Oceanus Resources, and includes the El Tigre1,
Fundadora2 and El Tigre Tailings3 Deposits.
Mineral Resource Estimate
The El Tigre Mineral Resource Estimate includes
extensions of the historical El Tigre and Seitz Kelly Veins1, as
well as the mineralized breccia halo around the El Tigre Vein. The
Fundadora Mineral Resource Estimate includes the Aquila, Fundadora,
Protectora and Caleigh Veins2.
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TABLE 1: El Tigre Project Mineral Resource
Estimate (1-11) |
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Resource Area |
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Class |
AuEq g/tCut-Off |
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Tonnes(000’s) |
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Agg/t |
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Ag ozs(000’s) |
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Aug/t |
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Au ozs(000’s) |
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AuEqg/t |
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AuEqozs(000’s) |
El TigreConstrained Pit1 |
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Indicated |
0.20 |
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25,170 |
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15 |
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11,906 |
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0.51 |
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416 |
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0.69 |
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559 |
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Inferred |
0.20 |
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2,791 |
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12 |
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1,093 |
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0.38 |
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34 |
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0.52 |
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47 |
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El TigreUnderground1 |
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Indicated |
1.50 |
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207 |
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156 |
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1,041 |
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0.46 |
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3 |
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2.33 |
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16 |
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Inferred |
1.50 |
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11 |
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82 |
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29 |
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1.27 |
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0 |
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2.26 |
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1 |
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FundadoraConstrained Pit2 |
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Indicated |
0.20 |
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451 |
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167 |
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2,428 |
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0.93 |
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14 |
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2.94 |
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43 |
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Inferred |
0.20 |
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1,774 |
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150 |
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8,554 |
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0.69 |
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39 |
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2.49 |
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142 |
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FundadoraUnderground2 |
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Indicated |
1.50 |
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80 |
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118 |
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306 |
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1.03 |
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3 |
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2.45 |
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6 |
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Inferred |
1.50 |
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2,003 |
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140 |
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9,044 |
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0.60 |
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38 |
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2.28 |
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147 |
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Sub Total Indicated |
0.20, 1.50 |
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25,908 |
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19 |
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15,681 |
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0.52 |
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436 |
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0.75 |
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624 |
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Sub Total Inferred |
0.20, 1.50 |
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6,579 |
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89 |
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18,720 |
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0.52 |
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111 |
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1.59 |
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337 |
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El TigreTailings3 |
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Indicated |
0.37 |
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939 |
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78 |
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2,345 |
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0.27 |
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8 |
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1.21 |
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37 |
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Inferred |
0.37 |
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101 |
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79 |
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254 |
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0.27 |
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1 |
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1.22 |
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4 |
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Total Indicated |
0.20,0.37,1.50 |
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26,847 |
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21 |
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18,026 |
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0.51 |
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444 |
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0.77 |
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661 |
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Total Inferred |
0.20,0.37,1.50 |
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6,680 |
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88 |
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18,974 |
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0.52 |
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112 |
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1.59 |
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341 |
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Notes to Table 1:
(1) El Tigre Deposit Mineral Resources are
comprised of the El Tigre and Seitz Kelly Veins.(2) Fundadora
Deposit Mineral Resources are comprised of the Aquila, Fundadora,
Protectora and Caleigh Veins.(3) El Tigre Tailings Deposit Mineral
Resources are comprised of the tailings from the former El Tigre
operation.(4) Mineral Resources are reported within a constraining
pit shell.(5) The Mineral Resource Estimate is reported in
accordance with the Canadian Securities
Administrators National Instrument 43-101 and has been
estimated using the CIM “Estimation of Mineral Resources and
Mineral Reserves Best Practice Guidelines” and CIM “Definition
Standards for Mineral Resources and Mineral Reserves.” (6)
Au:Ag ratio = ($1250/$17)/(70% Ag Rec/80% Au Rec)= 84:1 Therefore,
AuEq=(Ag/84) + Au(7) Mineral Resources in this estimate are based
on approx. two year trailing average metal prices of US$1,250 oz Au
and US$17 /oz Ag, estimated process recoveries 80% Au and 70% Ag,
US$5.70/t process cost and US$0.80/t G&A cost. Mining costs of
US$1.55/t for open pit and $45/t for underground and tailings
mining costs of US$5.50/t were used to derive the respective
Mineral Resource Estimate AuEq cut-offs of 0.20 g/t and 1.5 g/t and
0.37g/t. Pit optimization slopes were 50 degrees.(8) The Mineral
Resource Estimate uses drill hole data available as of September 1,
2017. (9) Totals may not add correctly due to rounding.(10) An
Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted
to a Mineral Reserve. It is reasonably expected that the majority
of Inferred Mineral Resources could be upgraded to Indicated
Mineral Resources with continued exploration. (11) 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.
Glenn Jessome, President and CEO of Oceanus,
commented: “This NI 43-101 Mineral Resource Estimate is an
important milestone for Oceanus and further supports our belief
that we have identified a new precious metals district in the
Sierra Madre. Our technical team deserves to be commended for the
excellent work they have completed in the past sixteen months since
we commenced exploring El Tigre. We are going to aggressively
continue exploration work this fall and into the 2018 season.”
El Tigre Hardrock Mineral Resource
Estimate
Information and data used for the El Tigre and
Fundadora Mineral Resource Estimate takes into account a total of
140 drill holes and 752 underground chip samples available as of
September 1, 2017. Assay data available for the Mineral
Resource Estimate included silver and gold sample grades. Assay
sample lengths within the El Tigre deposit average 1.24 m.
Approximately 40% of the samples are 1.50 m or longer in length,
and assay sample lengths were therefore composited to 1.50 m prior
to estimation. Summary statistics, histograms and probability plots
of the resulting composite data were examined for extreme values.
In order to reduce the influence of high-grade outliers, all
composite grades were capped to 10 g/t Au and 1,000 g/t Ag prior to
grade estimation. An additional range restriction of 50 m was
implemented for Au grades of 1.00 g/t or greater, and for Ag grades
of 100 g/t or greater.
Assay sample lengths for the Fundadora deposits
average 0.65m, and assay sample lengths were composited to 1.0 m
prior to estimation. In order to reduce the influence of high-grade
outliers, all composite grades were capped to 12 g/t Au and 1,000
g/t Ag prior to grade estimation. An additional range restriction
of 100 m was implemented for Au grades of 12 g/t or greater, and
for Ag grades of 1000 g/t or greater
A bulk density of 2.44 tonnes per cubic metre
was applied to the Mineral Resource Estimate, based on 947
measurements taken from drillhole core by Oceanus. A volume percent
model was used to accurately report the total Mineral Resource
volumes. All grade blocks were estimated using Inverse Distance
Cubed linear weighting of the nearest four to twelve capped assay
samples from two or more drillholes. Ag and Au grades were
estimated separately, and a gold equivalent value was calculated
from the block estimated values.
The reasonableness of the grade block estimates
was checked by a visual comparison of block and assay grades on
cross-section. In addition, summary statistics for the grade block
estimates were calculated and compared to assay grades, and a
Nearest Neighbor model was also estimated. No significant
discrepancies were noted.
P&E considers that the quantity and quality
of the drilling is sufficient to estimate a Mineral Resource for
the El Tigre and Fundadora Zones. Indicated Mineral Resources at El
Tigre required two drillholes within 90 metres, equal to 50% of the
Au semi-variogram range for the breccia zone. Indicated Mineral
Resources at Fundadora required two drill holes within 50 metres,
equal to the Au average horizontal semi-variogram range. Mineral
Resources outside this threshold were classified as Inferred.
The gold Mineral Resource Estimate hosted in the
El Tigre gold and silver deposit is related to a series of
high-grade epithermal veins controlled by a north-south trending
structure cutting across the andesitic and rhyolitic tuffs of the
Sierra Madre Volcanic Complex within a broad gold and silver
mineralized prophylitic alternation zone. The veins dip steeply to
the west and are typically one metre wide, however, locally can be
up to five metres in width.
The veins, structures and mineralized zones
outcrop on surface and have been traced for a distance of 5.3
kilometres along strike. Historical mining and exploration
activities focused on a 1.5 kilometre portion of the southern end
of the deposits, principally on the El Tigre, Seitz Kelly and Sooy
Veins. Four veins in the north (Aguilas, Escondida, Fundadora and
Protectora) were explored with only limited amounts of
production.
The statistical analysis, geological modeling
and Mineral Resource Estimate was prepared by Mr. Fred Brown, P.
Geo., with P&E Mining Consultants Inc. (P&E) and Mr. Eugene
Puritch, P. Eng., FEC, CET also with P&E. Both are
Independent Qualified Persons as defined by National Instrument
43-101. Mineral Resource modeling and grade estimation was carried
out using a 3-dimensional block model based on geostatistical
applications using GEMCOM software.
Modeling was conducted in Universal Transverse
Mercator (UTM) coordinate space relative to the WGS 1984 and UTM
Zone 12. A block size of 5 m (X) x 5 m (Y) x 5 m (Z) was used. The
El Tigre Mineral Resource grade model utilized 140 drill holes that
were completed from 1982 to 2017. Mr. Brown, P. Geo., visited
the property in June 2016 and June 2017, in order to verify and
validate the historic drill hole dataset and to verify the drilling
of the recently completed 2016 and 2017 diamond drilling campaigns
completed by Oceanus. Over the period of the last two years,
P&E personnel were intimately involved in the verification,
validation, drill hole collar surveying and QA/QC analysis of the
El Tigre drill hole database. The current drill hole database is
deemed to be in good condition and suitable to use in ongoing
Mineral Resource Estimates.
El Tigre Tailings Mineral Resource
Estimate
Information and data used for the El Tigre
tailings Mineral Resource Estimate takes into account a total of 53
Hollow Stem Auger drillholes completed across the tailings deposit.
From the supplied survey, lithology and drilling data a
three-dimensional representation of the tailings deposit was
constructed, delineating the surface and base of the deposit, as
well as three internal sub-divisions.
Assay data available for the tailings Mineral
Resource Estimate included silver and gold sample grades. Assay
sample lengths within the deposit average 1.61 m. A total of 71% of
the samples are 1.50 m in length, and assay sample lengths were
therefore not composited prior to estimation. Summary statistics,
histograms and probability plots of the assay data were examined
for extreme values. In order to reduce the influence of high-grade
outliers, all assay samples were capped to 1 g/t Au and 100 g/t Ag
prior to estimation. A range restriction of 40 m was implemented
for Au grades of 0.60 g/t or greater, and for Ag grades of 120 g/t
or greater.
A bulk density of 1.60 tonnes per cubic metre
was applied for the El Tigre Tailings Mineral Resource Estimate. A
volume percent model was used to accurately report the total
Mineral Resource Estimate volume. All blocks in the tailings
Mineral Resource were estimated using Inverse Distance Squared
linear weighting of the nearest four to twelve capped assay samples
from two or more drillholes. Ag and Au grades were estimated
separately, and a silver equivalent value was calculated from the
block estimates.
The reasonableness of the grade block estimates
was checked by a visual comparison of block and assay grades in
section. In addition, summary statistics for the grade block
estimates were calculated and compared to assay grades, and a
Nearest Neighbor model was also estimated. No significant
discrepancies were noted.
P&E considers that the quantity and quality
of the drilling is sufficient to estimate a Mineral Resource
Estimate for the tailings deposit. Indicated Mineral Resources
required two drill holes within 60 metres, equal to the horizontal
Ag semi-variogram range. Mineral Resources outside this threshold
were classified as Inferred.
Potential for Resource
Expansion
As a direct effect of the 2016-17 El Tigre
drilling program and completion of an updated geologic model,
additional target zones for Mineral Resource expansion have been
identified in undrilled areas or areas of limited drill hole
testing. Shallow and deeper oxide targets have been
identified adjacent to existing Mineral Resources that have good
potential to expand the current Inferred Mineral Resources. Along
with targets to potentially expand the Mineral Resource, areas
within the existing Inferred Mineral Resource Estimate that are
defined by widely spaced drilling but with reasonable grades
provide the company with potential to convert and grow the
indicated portion of the oxide Mineral Resource Estimate. P&E
recommends further drilling to test these drill targets in order to
expand the existing Mineral Resources and convert Inferred Mineral
Resources to Indicated Mineral Resources.
El Tigre Property
Gold was first discovered on the El Tigre
Property in 1896 at the Gold Hill area and mining started with the
Brown Shaft in 1903. The focus soon changed to mining
high-grade silver veins in the area with the majority of the
production coming from the El Tigre Vein. Historic
underground mining on the El Tigre Vein extended 1,450 metres along
strike and mined on 14 levels to a depth of 450 metres.
By the time the mine closed in 1938, it was reported to have
produced a total of 353,000 ounces of gold and 67.4 million ounces
of silver from 1.87 million tons (Craig, 2012).
Oceanus acquired the El Tigre Property in
November 2015 and during the first half of 2016 Oceanus carried out
an infill gap sampling program on the legacy diamond drill
core. Oceanus disclosed the results from this work for 53
drill holes over a strike length of 1,675 metres, located between
Sections 4975N and 3300N. Complete assay results for the
infill gap sampling program are included in appendices to press
releases dated March 7, 2016, May 16, 2016 and June 28, 2016, and
included 127.0 metres of 2.16 g/t gold equivalent consisting of
1.80 g/t gold and 27.5 g/t silver which included 33.0 metres of
4.73 g/t gold equivalent consisting of 4.48 g/t gold and 18.5 g/t
silver from Hole ET-13-051.
Oceanus subsequently completed the 2016-17
infill drilling program at El Tigre in May 2017 having drilled a
total of 62 diamond drill holes totaling 11,923.1 metres.
Assay results from this drilling program are included in press
releases dated September 14, 2016, October 18, 2016, December 14,
2016, March 6, 2017, May 25, 2017, June 7, 2017 and June 29, 2017.
These drill results demonstrated wide oxidized zones of
precious-metals mineralization at El Tigre that outcrop at surface.
The purpose of this drill program was to support a National
Instrument 43-101 Mineral Resource Estimate for the El Tigre
Property.
Technical Report
A National Instrument 43-101 Standards of
Disclosure for Mineral Projects Technical Report documenting the
updated Mineral Resource Estimate will be filed on SEDAR within 45
days from the date of this news release.
Lab Preparation, Assay, Quality
Assurance / Quality Control and Data Verification
The diamond drill core (HQ size) is geologically
logged, photographed and marked for sampling. When the sample
lengths are determined, the full core is sawn with a diamond blade
core saw with one-half of the core being bagged and tagged for
assay. The remaining portion is returned to the core trays for
storage and/or for metallurgical test work.
The sealed and tagged sample bags are
transported to the ActLabs facility in Zacatecas, Mexico. ActLabs
crushes the samples and prepares 200-300 gram pulp samples with
ninety percent passing Tyler 150 mesh (106μm). The pulps are
assayed for gold using a 50 gram charge by fire assay (Code 1A2-50)
and over limits greater than 10 grams per tonne are re-assayed
using a gravimetric finish (Code 1A3-50). Silver and multi-element
analysis is completed using total digestion (Code 1F2 Total
Digestion ICP). Over limits greater than 100 grams per tonne silver
are re-assayed using a gravimetric finish (Code 8 Ag FA-GRAV
Ag).
Quality assurance and quality control ("QA/QC")
procedures monitor the chain-of-custody of the samples and includes
the systematic insertion and monitoring of appropriate reference
materials (certified standards, blanks and duplicates) into the
sample strings. The results of the assaying of the QA/QC material
included in each batch are tracked to ensure the integrity of the
assay data. All results stated in this press release have
passed the Oceanus QA/QC protocols.
About P&E
P&E Mining Consultants Inc. is a
well-established (since 2004) geological and mine engineering
consultancy which services numerous Canadian and international
clients from its Toronto area and Vancouver offices. P&E has
undertaken over 300 projects around the world with a focus on gold
and silver in Canada, Mexico, USA, West Africa, Argentina and
Peru.
Qualified Persons
All Mineral Resource estimation was carried out
or reviewed by Fred Brown, P.Geo., and Eugene Puritch, P. Eng.,
FEC, CET both an Independent Qualified Persons as defined by
National Instrument 43-101 by reason of education, affiliation with
a professional association and past relevant work experience and
independent of Oceanus Resources. Mr. Puritch has reviewed and
approved the scientific and technical contents of this press
release. David R. Duncan, P. Geo., V.P. Exploration of the Company,
is the Qualified Person for Oceanus as defined under National
Instrument 43-101. Mr. Duncan has reviewed and approved the
scientific and technical information in this press release.
About Oceanus Resources
Corporation
Oceanus Resources Corporation is a gold
exploration company operating in Mexico. Oceanus is managed by a
team of mine finders with extensive experience in exploring and
developing large hydrothermal gold projects in Mexico.
Oceanus is currently focusing on the El Tigre Property in the
Sierra Madre Occidental.
For further information, please
contact:
Glenn JessomePresident and CEO902 492
0298jessome@oceanusresources.ca
CAUTIONARY STATEMENT: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.
This News Release includes certain
“forward-looking statements”. All statements other than
statements of historical fact included in this release, including,
without limitation, statements regarding potential mineralization,
resources and reserves, the ability to convert inferred resources
to indicated resources, the ability to complete future drilling
programs and infill sampling, the ability to extend resource
blocks, the similarity of mineralization at El Tigre to the Ocampo
mine, exploration results, and future plans and objectives of
Oceanus, are forward-looking statements that involve various risks
and uncertainties. Forward-looking statements are frequently
characterized by words such as “may”, “is expected to”,
“anticipates”, “estimates”, “intends”, “plans”, “projection”,
“could”, “vision”, “goals”, “objective” and “outlook” and other
similar words. Although Oceanus believes the expectations expressed
in such forward-looking statements are based on reasonable
assumptions, there can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from Oceanus’s expectations include risks and
uncertainties related to exploration, development, operations,
commodity prices and global financial volatility, risk and
uncertainties of operating in a foreign jurisdiction as well as
additional risks described from time to time in the filings made by
Oceanus with securities regulators.
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