Gold-Ore Resources Ltd. (the "Company") (TSX VENTURE: GOZ) is
pleased to report the results of the recently completed resource
and reserve estimate for the 100% owned Bjorkdal Gold Mine in
Sweden. The Bjorkdal Gold Mine has been in operation for 19 of the
last 21 years and this new reserve estimate outlines 4.0 million
tonnes of ore sufficient for another 3.7 years of operations. The
measured and indicted resources generate an additional 6.9 million
tonnes available for conversion to reserves.
Resources
Wardell Armstrong International Ltd. (WAI) was commissioned to
provide Gold-Ore with a resource estimate, which separated the
deposit into resources amenable to open pit mining and those that
would be mined underground. WAI used Datamine software and
Indicator Kriging, incorporating all drill data up to March 2009, a
total of 4,475 drill holes with a nominal spacing of 30 metres. The
resource estimate complies with JORC 2004. Table 1 lists the
tonnage and grade for the open pit and underground resources, and
Table 2 lists the corresponding ounces of gold for each
category.
Table 1: Open Pit & Underground Mineral Resource Estimate -
Tonnages and Grade
---------------------------------------------------------------------------
Res-
ource Cut- Measured +
Type off Measured Indicated Indicated Inferred
---------------------------------------------------------------------------
Au Tonnage Au Tonnage Au Tonnage Au Tonnage Au
(g/t) (000's t) (g/t) (000's t) (g/t) (000's t) (g/t) (000's t) (g/t)
---------------------------------------------------------------------------
Open
Pit 0.60 394 2.25 4,071 2.07 4,465 2.09 5,743 1.79
---------------------------------------------------------------------------
Under-
ground 1.00 796 2.79 1,611 2.94 2,407 2.89 1,927 2.62
---------------------------------------------------------------------------
Evaluation (2.5 m Selectivity) Adjusted for a 91% Mining Recovery and 30%
Mining Dilution
Table 2: Open Pit & Underground Mineral Resource Estimate -
Ounces
--------------------------------------------------------
Resource Cut- Measured +
Type off Measured Indicated Indicated Inferred
--------------------------------------------------------
Au Au Au Au Au
(g/t) (Ounces) (Ounces) (Ounces) (Ounces)
--------------------------------------------------------
Open Pit 0.60 28,505 270,964 299,469 330,546
--------------------------------------------------------
Underground 1.00 71,410 152,294 223,704 162,339
--------------------------------------------------------
Evaluation (2.5 m Selectivity) Adjusted for a 91% Mining
Recovery and 30% Mining Dilution
Reserves
After completing the resource estimate, WAI calculated mineable
reserves for open pit and underground mining. To establish open pit
reserves WAI completed a Pit Optimisation Study using Net Present
Value Scheduler software and evaluated four different resource
scenarios at different gold prices. The scenario selected for the
pit mine design was the one that only included measured and
indicated resources that would not impact the underground
development. The Open Pit Design Module of Datamine was used to
delineate the reserves. The mineable reserves include a dilution
factor of 30% and 91% mining recovery. The economic cut-off grade
was determined to be 0.45 grams per tonne gold at a gold price of
$200 Swedish krona per gram (US$806 per ounce).
To calculate the underground reserves WAI updated the
underground resources based on modelling individual veins for the
area extending beyond the north wall of the current pit and within
the area bounded by the current mine development. Of the Measured
and Indicated resources considered, approximately 30% was included
in proven and probable ore. Measured and Indicated resources, north
and south of the area examined in the study, will be added to
reserves as additional diamond drilling and development in these
areas allows conversion. This resource estimate was based on a
minimum vein thickness of 1.0 metres. No dilution was applied to
the estimate. The resource estimate for this part of the study used
ordinary Kriging.
The mine design, including the stopes, was modelled in Mine 2-4D
software. A dilution factor of 25% was applied and a mining
recovery of 95%. A cut-off grade of 1.3 grams per tonne gold was
used for the development and a cut-off grade of 1.0 grams per tonne
gold was used for the stopes. Proven and probable reserves for the
open pit and the underground are listed in Table 3.
Table 3: Mineable Reserves Estimate - Tonnages, Grade &
Ounces
-----------------------------------------------------------
Proven &
Mine Cut-off Probable
Design Grade Proven Probable Reserves
-----------------------------------------------------------
Tonnage Grade Tonnage Grade
Au (000's Au (000's Au
(g/t) tonnes) (g/t) tonnes) (g/t) Ounces
-----------------------------------------------------------
Open Pit 0.45 497 1.15 3,071 1.13 129,945
-----------------------------------------------------------
Underground 1.00/1.30 170 2.39 287 2.50 36,128
-----------------------------------------------------------
Totals 667 3,358 166,073
-----------------------------------------------------------
Economic Parameters for Conversion of Resources to Reserves
The Bjorkdal Gold Mine began operations in 1988 and has produced
for 19 of the last 21 years, and continuously since 2001. The
Bjorkdal processing plant has now milled over 19.7 million tonnes
of ore and has produced 960,000 ounces of gold. The economic
parameters used for converting resources to reserves were based on
actual operating conditions at Bjorkdal for the period December
2008 to August 2009 and are listed below:
- Mechanized underground mining methods - long hole stoping and
lateral sub-level jumbo development
- Open pit methods using blast hole drill rigs on 5 metre
benches using standard truck and shovel excavation
- Processing throughput of 3,200 tonnes/day for 350 days/year or
1.1 million tonnes per annum
- Processing flow sheet includes crushing, grinding with gravity
and flotation beneficiation to recover gold
- Average plant recoveries at 90%
- Refinery and smelter contracts established with payable gold
at 94%
- Average underground costs including mining, transportation,
milling and G&A at Swedish krona $233 (US$ 29.20) per tonne
- Average open pit costs including mining, transportation,
milling and G&A at Swedish krona $110 (US$ 13.78) per tonne
- Average Swedish krona to US dollar exchange rate (Dec 2008 to
August 2009) at 7.98:1
Glen Dickson, CEO of Gold-Ore stated, "We are pleased to have a
reserve statement that indicates a multi-year mine life at
Bjorkdal, although there is a significant amount of resources that
could not be included in the reserves because of the drill hole
density. However, our underground drill program continues to define
those resources, and we are confident that a large percentage of
the underground resources will be converted to reserves as the mine
development advances."
About Gold-Ore
Gold-Ore Resources is a gold mining and exploration company
focused in Sweden. The Company is generating positive cash flow, is
debt-free and unhedged, and remains focused on increasing gold
production from the 100%-owned Bjorkdal Gold Mine. In addition to
Bjorkdal, the Company also has other assets in the country; the
Ronnberget Gold Property (adjacent to Bjorkdal), the Norrliden
Polymetallic Deposit and the Vallberget Polymetallic Property.
ON BEHALF OF THE BOARD
Glen Dickson, Chairman and CEO
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.
News Release 09-14
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Gold-Ore Resources Ltd. Glen Dickson (604) 687-8884
Gold-Ore Resources Ltd. Bob Wasylyshyn (604) 687-8884 Gold-Ore
Resources Ltd. Ron Ewing (604) 687-8884 (604) 629-0400 (FAX)
www.goldoreresources.com
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