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TORONTO,
March 24, 2014 /CNW/ - Ecuador Gold
& Copper Corp. (TSX-V: EGX), (the "Company" or
"EGX") is pleased to report that it has completed a new
mineral resource estimate for the Company's Santa Barbara South and
North Zones incorporating results from Phase II drilling up to
drill hole DSB-44. The new resource calculation at Santa Barbara
incorporates results from 7 additional drill holes (3,939m)
completed up to January
31st, 2014. As a result, the Company's
indicated resources at the Condor Gold Project in Ecuador have increased by an additional 1.6
million ounces to approximately 8.0 million ounces of gold together
with a further increase of 0.6 million ounces of inferred resources
to a total of approximately 2.6 million ounces of gold. Further,
the Company's new copper resource estimate is now approximately 0.8
billion lbs of copper in the indicated resource category and
approximately 1.5 billion lbs of copper in the inferred resource
category.
Highlights:
- The new mineral resource estimate at the Santa Barbara
Gold(Au)-Copper(Cu) porphyry deposit incorporates drill results
from 7 additional drill holes totaling 3,939m drilled since
October 2013. The increased
drill density and number of drill holes has resulted in an expanded
resource with new indicated resources and conversion of some
previously reported inferred resources to the indicated
category. Resources at Santa Barbara South and North have
been combined into a single block model and now stand at 364.5
million tonnes at 0.51 g/t Au and 0.1% Cu (5.98 million ounces Au
and 804.8 million lbs. Cu) in the indicated category and 177.6
million tonnes at 0.40 g/t Au and 0.1% Cu (2.3 million ounces Au
and 391.5 million lbs. Cu) in the inferred category. The new Santa
Barbara mineral resources estimates are summarized in Table 1
below.
- Total resources at the Condor Gold Project now comprise 447.3
million tonnes at 0.56 g/t Au (8.0 million ounces Au) in the
indicated category with a further 197.6 million tonnes at 0.4 g/t
Au (2.6 million ounces Au) in the inferred category. (For details
of the previously reported resources see the Company's technical
report (the "Technical Report") prepared in accordance with
National Instrument 43-101 Standards for Disclosure for Mineral
Projects ("NI 43-101") dated effective October 16, 2013 and filed on SEDAR on
November 29, 2013, available at
www.sedar.com). Assay results from the seven recent drill
holes at Santa Barbara are summarized in the Company's news release
dated February 24th,
2014.
- The El Hito copper porphyry deposit, situated 5km east of Santa
Barbara hosts an additional inferred copper resource of 161 million
tonnes at a grade of 0.31% Cu (1.1 billion lbs. Cu). For
further details and a description of El Hito, see the Company's
NI-43-101 Technical Report dated October 16,
2013 at www.sedar.com.
- Continuing increases of the gold and copper resources at the
Santa Barbara deposit confirm the emergence of Santa Barbara as the
Company's flagship project in Ecuador.
The new resource estimates were calculated by
Mr. Phil Jones of Al Maynard and Associates Pty Ltd. in
Perth, Australia and incorporate
drill results from 7 new drill holes (3,939m) drilled since
October 2013 by EGX and all previous
drilling to the end of January
2014. The Company's updated resource table for Santa
Barbara is presented in Table 1 (below). The Company's updated
resource estimates are summarized in Table 2, below. A new NI
43-101 technical report with full details will be filed on
www.sedar.com within 45 days of the date of this news
release. Previous news releases, location maps and plans with
simplified geology, collar locations and drill hole traces are
available for reference on the Company's website at
www.ecuadorgoldandcopper.com.
Table 1: SANTA BARBARA GOLD-COPPER DEPOSIT
RESOURCE BREAKDOWN
|
| |
|
Tonnes
(000 t) |
Grade Au
(g/t) |
Ag
(g/t) |
Cu
(%) |
Au
(000 oz) |
Ag
(000 oz) |
Cu
( lbs) |
GOLD RESOURCE
Indicated: |
|
|
|
|
|
|
|
|
| Santa Barbara |
* |
364,572 |
0.51 |
0.9 |
0.1 |
5,978 |
10,080 |
0.8 billion |
| Total Indicated
GOLD |
|
364,572 |
0.51 |
|
|
5,978 |
- |
|
GOLD RESOURCE
Inferred: |
|
|
|
|
|
|
|
|
| Santa Barbara |
* |
177,601 |
0.4 |
0.8 |
0.1 |
2,300 |
4,625 |
0.4 billion |
| Total Inferred
GOLD |
|
177,601 |
0.4 |
|
|
2,300 |
- |
|
Notes:
| 1) |
The mineral resource estimate has been completed pursuant to NI
43-101. Mr. Phil Jones is an independent Qualified Person as
defined by NI 43-101 and its companion policy 43-101CP. New
resource estimates at Santa Barbara are shown in bold with an
asterisk (*). |
| 2) |
The definitions of indicated and inferred mineral resources
reported here are as defined in the CIM Standards on Mineral
Resources and Mineral Reserves adopted by the CIM Council, as
amended. |
| 3) |
Inferred resource estimates have a great amount of uncertainty
as to their existence and economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under NI
43-101, estimates of inferred mineral resources may not form the
basis of feasibility or pre-feasibility studies except for a
preliminary economic assessment or scoping study. |
| 4) |
Sums may not add up due to rounding as all quantities are
rounded to the appropriate number of significant figures. |
| 5) |
Tonnage and grades are in metric units. Contained gold
and silver ounces are reported as troy ounces, contained copper as
imperial pounds. |
| 6) |
Gold resources at Santa Barbara have been calculated using a
0.25 g/t Au cutoff grade. Inverse distance cubed (ID3)
algorithms using wide search ellipses and confined to geological
wireframe controls were used. Block size estimated is 20 x 20
x 10m. |
| 7) |
Maximum search distances used to calculate indicated resources
are 100m at Santa Barbara while inferred resources were calculated
using maximum distances of 100-200m from the block being
estimated. |
| 8) |
The new calculations of indicated and inferred resource shown
above are based on results from 44 diamond drill holes at Santa
Barbara (20,119m). |
Mit Tilkov, VP Exploration of Ecuador Gold
and Copper Corp. comments:
"Drilling at Santa Barbara continues to expand
resources. With the completion of this second phase of
drilling we have generated additional resources and new targets as
our understanding of the Santa Barbara deposit increases.
Surface mapping and geochemistry indicate further potential to
increase resources to the north and southwest of the Santa Barbara
North Zone and to the east and southeast of the best intersections
to date in the southern part of the deposit. The Santa
Barbara deposit is partially wrapped around a large circular
induced polarization (IP) anomaly between the north and south
zones. One drill hole (DSB-36) was drilled across a fault and into
the flank of this feature where it encountered gold and copper
mineralization at depth. Outcrop mapped above the IP anomaly
shows elevated gold and copper values in rocks and soils with
favorable lithology and alteration. I believe that we may be
on the fringes of a very significant gold copper porphyry system
that would warrant further drilling in 2015."
"EGX is awaiting the results of a Preliminary
Economic Assessment (PEA) for Santa Barbara, now scheduled for
completion at the end of April, before proposing a renewed drill
program. In the meantime, the Company's geologists are
mapping and sampling at Santa Barbara and other identified targets
on this large (8300 ha.) concession. Mapping has doubled the
strike length of altered diorite porphyry to the north of El Hito
where the Company has already defined a 1.1 billion pound copper
inferred resource (0.31% Cu). We have further targets to work
to the north of the Chinapintza vein district in the north
(Tres Cerritos), a potential
extension of Santa Barbara style porphyry to the south and a
promising potential gold bearing porphyry to the north of El Hito
where we are currently mapping and sampling. We'll be
spending most of the rest of the year exploring some of our best
targets including those close to Santa Barbara in preparation for
renewed drilling once the PEA has been completed and the
information digested."
Glenn Laing,
President and CEO of Ecuador Gold and Copper Corp.
comments:
"The Company has completed 22,051 meters of new
drilling on the Condor Gold Project concessions between
August 2012 and the end of
January 2014. EGX boasts close
to 2 million ounces of indicated gold resources and 0.3 million
ounces of inferred gold resources in our epithermal gold deposits
at Los Cuyes and Soledad in the north and an additional 6.0 million
ounces of indicated gold resources plus an additional 2.3 million
ounces of inferred resources in the south at Santa Barbara. We also
have further indicated (0.8 billion lbs) and inferred (0.4 billion
lbs) copper resources defined at Santa Barbara, and an inferred
copper resource (1.1 billion pounds) at El Hito in our resource
inventory. Our Condor Gold Project continues to meet and
exceed our expectations and we believe it is proving to be one of
the most exciting advanced exploration projects in South America. We estimate our
exploration discovery costs in 2012 and 2013 to be in the order of
$2.00-$3.00 per ounce of gold
resources reported."
Table 2: UPDATED CONDOR GOLD AND COPPER PROJECT
RESOURCE BREAKDOWN (Incorporating updated Santa Barbara
resources from Table 1, above.)
|
|
|
Tonnes
(000 t) |
Grade
Au (g/t) |
Ag
(g/t) |
Cu
(%) |
Au
(000 oz) |
Ag
(000 oz) |
Cu
( lbs) |
| Indicated: |
|
|
|
|
|
|
|
|
| Los Cuyes |
|
46,800 |
0.82 |
6.2 |
|
1,234 |
9,314 |
|
| Soledad |
|
34,900 |
0.63 |
7.2 |
|
707 |
8,090 |
|
| Enma |
|
1,005 |
2.88 |
32.8 |
|
93 |
1,061 |
|
| Santa Barbara |
* |
364,572 |
0.51 |
0.9 |
0.1 |
5,978 |
10,080 |
0.8 billion |
| Total Indicated |
|
447,277 |
0.56 |
2.0 |
|
8,012 |
28,545 |
0.8 billion |
| Inferred: |
|
|
|
|
|
|
|
|
| Soledad |
|
20,000 |
0.5 |
6.9 |
|
300 |
4,500 |
|
| Santa Barbara |
* |
177,601 |
0.4 |
0.8 |
0.1 |
2,300 |
4,625 |
0.4 billion |
| Total Inferred |
|
197,601 |
0.4 |
1.4 |
0.1 |
2,600 |
9,125 |
0.4 billion |
| Inferred El Hito: |
|
|
|
|
|
|
|
|
| El Hito |
|
161,000 |
|
|
0.31 |
|
|
1.1 billion |
| Total Inferred |
|
161,000 |
|
|
0.31 |
|
|
1.1 billion |
Notes:
| 1) |
All mineral resource estimates shown above have been completed
pursuant to NI 43-101. Mr. Phil Jones is an independent
Qualified Person as defined by NI 43-101 and its companion policy
43-101CP. New resource estimates at Santa Barbara are shown
in bold with an asterisk (*). |
| 2) |
Details of previous calculations and resource estimates at Los
Cuyes, Soledad, Enma, and El Hito are reported in detail in the
Company's NI 43-101 Technical Report dated effective October 16,
2013 and filed on SEDAR on November 29, 2013, available at
www.sedar.com. |
| 3) |
The definitions of indicated and inferred mineral resources
reported here are as defined in the CIM Standards on Mineral
Resources and Mineral Reserves adopted by the CIM Council, as
amended. |
| 4) |
Inferred resource estimates have a great amount of uncertainty
as to their existence and economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under NI
43-101, estimates of inferred mineral resources may not form the
basis of feasibility or pre-feasibility studies except for a
preliminary economic assessment or scoping study. |
| 5) |
Sums may not add up due to rounding as all quantities are
rounded to the appropriate number of significant figures. |
| 6) |
Tonnage and grades are in metric units. Contained gold
and silver ounces are reported as troy ounces, contained copper as
imperial pounds. |
| 7) |
Gold resources have been calculated using a 0.25 g/t Au cutoff
grade while the copper resources at El Hito are reported above a
0.2% Cu cutoff grade. |
Quality Assurance
The Company has implemented a quality assurance and quality control
program to ensure that the transport, sampling and analysis of all
samples are conducted in accordance with the best possible
practices. The QA/QC program has been described for each previous
release of drill hole results on the project (see recent news
releases at www.ecuadorgoldandcopper.com). In preparation for
the resource estimate, the Company hired independent consultants to
review the QA/QC program. Further details will be released in
a technical report prepared in accordance with NI 43-101 that will
be posted at www.sedar.com within 45 days of the date of this news
release.
Qualified Person
Mit Tilkov, P.Geo., Vice-President Exploration of Ecuador Gold and
Copper Corp. is a qualified person, as defined by NI 43-101,
supervised the project field work, and is responsible for the
preparation of the technical information in this news release.
Phil Jones,
BAppSc (Geol), MAIG, MAusIMM, of Al
Maynard and Associates prepared the mineral resource
estimate. He is an independent qualified person, as required
by NI 43-101 and has reviewed and approved the contents of this
news release.
Cautionary Note
The Company has not completed a preliminary
economic assessment or feasibility study of the Condor Gold Project
under NI 43-101, and there is no assurance that the exploration and
subsequent development operations of the Condor Gold Project will
be economically or technically viable.
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.
SOURCE Ecuador Gold and Copper Corp.