Atacama Reports Cerro Maricunga M&I Oxide Resources Increase to
3.470 Million Ounces of Gold
TORONTO, ONTARIO--(Marketwired - Jan 29, 2014) - Atacama Pacific
Gold Corporation (TSX-VENTURE:ATM) ("Atacama") is pleased to report
the updated pit constrained oxide-associated resource estimate for
its Cerro Maricunga gold deposit located in northern Chile, 117
kilometres northeast of Copiapo.
Undiluted measured and indicated ("M&I") resources increased
by 1.01 million ounces to 3.470 million ounces of gold in 248.8
million tonnes grading 0.43 grams per tonne gold ("g/t Au") with a
further 43,000 ounces of gold in 3.1 million tonnes grading 0.43
g/t Au in the inferred category. The gain in M&I resources is
largely due to the conversion of inferred resources to the M&I
category as a result of the 25,457-metre Phase IV infill drilling
program completed in 2013.
The current resource estimate was confined within a Whittle pit
shell modelled at a gold price of US$1,200 per ounce whereas the
previous resource was modelled at a US$1,400 per ounce gold price.
Table 1 summarizes the resource estimate by zone. A cut-off grade
of 0.18 g/t Au was used to estimate the current resource.
"With the 1.01 million ounce increase in M&I gold resources,
we surpassed our goal of converting 750,000 inferred ounces of gold
from our previous estimate to the current M&I category and
underlined the remarkable consistency of the oxide gold
mineralization at Cerro Maricunga," said Carl Hansen, President and
CEO of Atacama. "Over a period of three years, we have aggressively
advanced Cerro Maricunga from a grassroots discovery to one of the
largest undeveloped oxide gold deposits in the world with 3.470
million ounces of gold outlined to date. With the majority of the
resources now in the M&I category, the updated estimate will
form the foundation of a prefeasibility study, the next stage in
the development of Cerro Maricunga, which is anticipated to be
completed during the second quarter 2014."
Table 1 - Cerro Maricunga Oxide Resource1 Estimate by
Zone, January 2014 |
|
|
Measured |
Indicated |
Measured and Indicated |
Inferred |
Zone |
Tonnes |
Grade |
Tonnes |
Grade |
Tonnes |
Grade |
Gold Ounces |
Tonnes |
Grade |
Gold Ounces |
|
(millions) |
(g/t Au) |
(millions) |
(g/t Au) |
(millions) |
(g/t Au) |
(000's) |
(millions) |
(g/t Au) |
(000's) |
Lynx |
16.9 |
0.48 |
43.1 |
0.46 |
60.0 |
0.46 |
893 |
1.7 |
0.48 |
27 |
Crux |
36.1 |
0.47 |
59.9 |
0.44 |
96.0 |
0.45 |
1,398 |
0.9 |
0.35 |
10 |
Phoenix |
54.4 |
0.40 |
37.4 |
0.40 |
91.7 |
0.40 |
1,171 |
0.3 |
0.52 |
5 |
Other |
0.9 |
0.23 |
0.3 |
0.23 |
1.1 |
0.23 |
8 |
0.1 |
0.20 |
1 |
Totals2 |
108.2 |
0.43 |
140.6 |
0.43 |
248.8 |
0.43 |
3,470 |
3.1 |
0.43 |
43 |
1. Resource estimated at a 0.18 g/t Au cut-off
grade. 2. Apparent summation errors are due to rounding |
The previously reported pit constrained resource, used in the
Cerro Maricunga preliminary economic assessment ("PEA") issued
January 28, 2013, was estimated at 2.460 million ounces in the
M&I category (185.8 million tonnes grading 0.41 g/t Au) with a
further 0.938 million ounces in the inferred category (75.4 million
tonnes grading 0.39 g/t Au).
The Cerro Maricunga resource is largely located within three
gold zones, the Lynx, Phoenix and Crux zones (see Figure 1,
attached), which outcrop on surface. A small portion of the M&I
resource (8,000 ounces of gold in 1.1 million tonnes grading 0.23
g/t Au) lies outside the confines of the three zones but within the
pit boundaries and is classified as Other In-Pit. While the strike
extent of the three main zones has been defined by drilling, the
full potential of the Cerro Maricunga volcanic complex has not been
fully tested. The oxide-associated gold mineralization has been
drilled to depths in excess of 600 metres and remains open to
depth.
The Cerro Maricunga gold deposit is hosted in intrusive
subvolcanic rocks and genetically related breccia emplaced along a
main north-west striking structure. The mineralization consists
mainly of free gold commonly associated with black/grey-banded
quartz veinlets. Sulphides are scarce.
Resource Estimation Methodology
The Cerro Maricunga resource estimate is based upon 29,547
metres of diamond drilling (86 holes) and 75,496 metres of reverse
circulation ("RC") drilling (234 holes) for a total of 105,043
metres of drilling along with five trenches totalling 266 metres. A
total of 21,385 two-metre samples were used in the estimation: Lynx
Zone - 4,102 samples; Phoenix Zone - 11,746 samples; and, Crux Zone
- 5,537 samples. A total of 31,227 two-metre samples fell outside
the mineralized zones and were used to estimate these areas. The
previously designated Pollux Zone has been incorporated into the
Phoenix zone.
The resource estimate has been constrained by a conceptual pit
shell in order to confirm reasonable prospects of economic
extraction as set out in the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") Definition Standards for Mineral
Resources and Mineral Reserves and National Instrument 43-101 ("NI
43-101").
Three-dimensional solids were built for each zone using a 0.15
g/t Au grade shell and taking into account structure controls. The
following zones were defined based on the structural pattern of the
2013 geological model: Crux + South Phoenix, North Phoenix and
Lynx. Standard geostatistical analyses including basic statistics,
histograms, scatterplots, declustering, contact profiles, and
variography were carried out for each zone as well as areas falling
outside the mineralized zones. Directional variography revealed
that the aforementioned zones had a vertical anisotropy. Resources
within and outside the 0.15 g/t Au grade envelopes were estimated
via Ordinary Kriging in three passes.
Resources were classified according to the following criteria:
blocks located within a 50 x 50 metre grid were placed in the
measured category; blocks located within a 100 x 100 metre grid
were categorized as indicated, while the remaining blocks within
the mineralized envelope were classified as inferred.
A total of 527 10-centimetre core specimens were tested for
specific gravity. The specific gravity for each block in the model
was estimated via Ordinary Kriging.
Parameters used to establish the conceptual pit were: mining
costs of US$1.40 per tonne mined, processing costs of US$2.53 per
tonne, G&A of US$0.51 per tonne processed, gold recovery of
81%, an overall pit slope angle of 42 degrees, a gold price of
US$1,200 per ounce and a 0.18 g/t raised cut-off grade. These
parameters were similar to those used in the Cerro Maricunga PEA
issued by Atacama in January 2013 with minor adjustments to costs
due to changes in the estimated exchange rate.
The updated M&I and inferred mineral resource estimates
reported herein are contained within a resource-limiting open-pit
shell along a 2,500 metre trend, 800 metres wide and up to 460
metres deep.
Readers are cautioned that the conceptual pit shell for the
resource model disclosed above does not constitute an economic
analysis of mineral resources. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Quality Assurance / Quality Control Program
RC chips and diamond drill core from Atacama's drilling campaign
were collected at the drilling site under the direct supervision of
Atacama staff. The RC samples and drill core were appropriately
tagged, secured and transported to the Atacama exploration camp and
then to Atacama's secure sample, logging and storage facility in
Copiapo, Chile. Each RC chip sample was split to obtain an
approximate 15 kilogram sample for assay purposes. Representative
chips were collected from each sample for logging purposes. Drill
core was logged, marked at two metre intervals for sampling and
split longitudinally with a diamond saw. One half of the core was
bagged and sample tags attached. The second half of the core was
returned to the core boxes. All samples were appropriately tagged
and sent to Asesoria Minera Geoanalitica Ltda.'s sample preparation
facility in Copiapo. Resulting pulps were then returned to
Atacama's storage facility for insertion of quality assurance and
quality control ("QA-QC") pulps and standards and thereafter
re-numbered using bar codes. Final sample batches were then
transported by Atacama personnel to Activation Laboratorios Ltda.
in Coquimbo, Chile for assaying. Samples were analyzed for gold
using 50 gram fire assay with atomic absorption spectrographic
finish for a sensitivity of 5 ppb (.005 ppm) gold.
Sample QA-QC control measures for the Phase IV program included
the insertion of duplicates, standards and blanks. Statistical
analyses were performed for: 335 field duplicates for RC drilling;
134 coarse duplicates (10#) for diamond drilling; and 469 pulp
duplicates for chemical laboratory analysis. Additionally, analyses
were performed for 481 standards and 150 blank samples. Overall
conclusions drawn from the QA-QC programme are as follows:
- Analyses of duplicates show good precision, indicating that the
protocols used for sample preparation and assaying were
adequate.
- Analyses of standards used during exploration show good
accuracy.
- Analyses of blanks show no serious cross contamination problems
between samples.
The overall conclusion is that QA-QC data generated throughout
the Cerro Maricunga Phase IV drilling program meets acceptability
criteria and therefore the exploration data can be used with
confidence for resource modeling and estimation.
National Instrument 43-101 Compliance
The Cerro Maricunga resource estimate was prepared under CIM
Definition Standards (2005). Dr. Eduardo Magri, a mining engineer
(University of Witwatersrand) and a Fellow of the Southern African
Institute of Mining and Metallurgy with over 30 years of industry
experience, is the independent qualified person, as defined by
defined by Section 1.5 of NI 43-101, for the resource estimate. Dr.
Magri has reviewed and verified the contents of this press release,
however is not responsible for the conceptual pit shell.
Mr. Manuel Arre is a mining engineer with 12 years of experience
in mine planning and is a registered member of the "Comisión
Calificadora de Competencias en Recursos y Reservas Mineras"
(Chilean Mining Commission, registry n° 0193), an accepted foreign
association as defined by NI 43-101 (Appendix A). Mr. Arre, an
independent qualified person as defined by NI 43-101, generated,
reviewed and approved the conceptual pit shell disclosed in this
press release.
About Atacama Pacific Gold Corporation
Atacama's business is the acquisition, exploration and
development of precious metals resource properties in Chile.
Atacama's goal is to become a producer of gold through the
exploration and development of the its Cerro Maricunga gold
project, located in Region III, 117 kilometres northeast of the
city of Copiapo. Atacama also has interests in four other mineral
properties within close proximity of Cerro Maricunga and a fifth
property in Chile's Region I.
FORWARD LOOKING
STATEMENTS
This news release contains forward-looking statements, including
predictions, projections and forecasts. Forward-looking statements
include, but are not limited to: statements with respect to details
of the Cerro Maricunga PEA which was press released January 28,
2013, including, but not limited to, references to potential gold
production, estimated operating cash costs, preliminary initial and
sustaining capital cost estimates and reference to the potential
economic viability and economic returns; statements regarding the
expectation to increase mineral resources; statements regarding
expectations for receipt of permits and environmental approvals;
exploration results (including with respect to water resources);
the success of exploration activities generally; mine development
prospects; and, potential future gold production. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "planning", "expects" or "does not expect",
"continues", "scheduled", "estimates", "forecasts", "intends",
"potential", "anticipates", "does not anticipate", or "belief", or
describes a "goal", or variation of such words and phrases or state
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which
may cause the actual results, performance or achievements to be
materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, the results of due diligence activities, changes in
economic parameters and assumptions, the interpretation and actual
results of current exploration activities; changes in project
parameters as plans continue to be refined; the results of
regulatory and permitting processes; future prices of gold;
possible variations in grade or recovery rates; failure of
equipment or processes to operate as anticipated; labour disputes
and other risks of the mining industry; the results of further
economic and technical studies, delays in obtaining governmental
approvals or financing or in the completion of exploration, as well
as those factors disclosed in Atacama's publicly filed
documents.
Although Atacama has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as 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.
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.
To view Figure 1
please click on the following link:
http://media3.marketwire.com/docs/ATM0129.pdf
Atacama Pacific Gold CorporationCarl B. HansenPresident and
CEO416 861 8267416 861
9116info@atacamapacific.comwww.atacamapacific.com
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