Tigray Resources Inc. (TSX VENTURE:TIG) ("Tigray" or the "Company") is pleased
to announce its initial National Instrument 43-101 Standards of Disclosure for
Mineral Projects ("NI 43-101") compliant gold, copper, silver and zinc mineral
resource estimate for the Terakimti volcanogenic massive sulfide (VMS) deposit
on the Company's 70%-owned Harvest project (the "Harvest Project") located in
the Arabian Nubian Shield in northern Ethiopia. This mineral resource estimate
is contained within the first prospect discovered at the Harvest Project in 2009
and incorporates 16,495 metres of drilling in 79 diamond drill holes.
Tigray has also received positive results from on-going metallurgical testing at
Terakimti. A selected suite of representative supergene and primary sulfide
mineralization has yielded encouraging initial results for potential base metal
concentrates produced from conventional floatation work. Results from
preliminary bottle roll testing on oxide composites have yielded recoveries that
indicate oxides are amenable to conventional cyanide leaching.
Tigray has now drill tested another six prospects through 4,316 metres of
drilling which are not included in this initial mineral resource estimate. This
testing continues in the present drill program with drilling at three priority
target areas at both the Harvest and Adyabo projects (refer to Tigray's news
release dated December 4, 2013).
Highlights
-- Indicated Mineral Resources of 2.131 million tonnes containing
89,477,000 lbs copper, 86,000 ounces gold, 1,130,000 ounces silver, and
66,871,000 lbs zinc.
-- Inferred Mineral Resources of 3.920 million tonnes containing 76,385,000
lbs copper, 166,000 ounces gold, 2,264,000 ounces silver, and
137,459,000 lb zinc.
-- Mineral Resource is defined to a depth of 300 metres and has potential
to continue at depth.
-- Near surface oxide gold mineralization shows potential for heap leach
amenability.
-- Supergene and primary mineralization produce copper concentrates (25%
copper grade) through conventional floatation processes, with further
optimization possible. Attractive zinc concentrates are also produced on
selected mineralization.
Terakimti is defined at surface by a 800 metre surface NE-SW gossan expression,
with the mineralized deposit dipping steeply to the southeast, plunging
moderately northeast, and remaining open to extension down plunge at depth. The
deposit is located within 7 kilometres of both a paved highway, and a
high-voltage power grid line.
The Terakimti deposit is the most advanced prospect on the Harvest Project, of
which Tigray owns a 70% interest. Andrew Lee Smith, President and CEO of Tigray
stated, "This initial mineral resource estimate at Terakimti is a key milestone
for the Company and establishes the excellent potential of the prospects we
continue to discover and define in the region. Further drilling and analysis
planned for 2014 will assess if the high-grade oxide resource and favourable
metallurgical response defined to date presents opportunity for near-term cash
flow through small-scale open pit operations at Terakimti."
Path Forward
At Terakimti, additional drilling is planned to upgrade the mineral resource
through extension drilling, and detail drilling of the existing mineral resource
for improved definition of the deposit and metal zonation. Continued exploration
work is expected to target the additional satellite VMS prospects discovered on
the Harvest Project. Additional metallurgical studies will continue, with
emphasis on oxide work.
Terakimti Mineral Resource Estimate David Thomas, P. Geo., Effective Date:
January 17, 2014
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NSR
Mineralization Cut-Off
Class Ore Type ($/t) Contained Metals
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Tonnes
('000s) Cu % Au g/t Ag g/t Zn %
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Indicated Oxide 25.9 290 0.06 2.55 10.5 0.02
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Sulphide 23.9 1,841 2.20 1.06 17.5 1.65
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Sub-Total
Indicated 2,131
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Inferred Oxide 25.9 398 0.13 4.77 7.2 0.07
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Sulphide 23.9 2,583 1.09 0.96 20.6 1.42
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Underground
Primary 63.9 939 0.69 0.84 15.2 2.92
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Sub-Total
Inferred 3,920
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NSR
Mineralization Cut-Off
Class Ore Type ($/t) Contained Metals
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Cu Au Ag Zn
('000 lb) ('000 oz) ('000 oz) ('000 lb)
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Indicated Oxide 25.9 - 24 98 -
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Sulphide 23.9 89,477 63 1,033 66,871
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Sub-Total
Indicated 89,477 86 1,130 66,871
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Inferred Oxide 25.9 - 61 92 -
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Sulphide 23.9 62,187 80 1,712 77,101
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Underground
Primary 63.9 14,198 25 459 60,358
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Sub-Total
Inferred 76,385 166 2,264 137,459
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Footnotes to mineral resource statement
Fladgate undertook data verification, and reviewed Tigray's quality
assurance and quality control programs on the mineral resources data.
Fladgate concluded that the collar, survey, assay, and lithology data were
adequate to support mineral resources estimation.
Domains were modelled in 3D to separate oxide, supergene and primary
sulphide rock types from surrounding waste rock. The domains conformed to
lithological contacts logged in diamond drill core. Sub-domaining was
further warranted to separate different grade populations and zones with
differing strike and dip orientation within domains. Raw drill hole assays
were composited to 5 metre lengths broken at domain boundaries. High grade
assays were capped prior to compositing. Capping thresholds were assessed
within each domain independently. Block grades for copper, zinc, gold, and
silver were estimated from the composites using a combination of ordinary
kriging ("OK") and inverse distance weighted to the third power ("ID3") into
5 x 5 x 5 m blocks coded by domain. Dry bulk density of the oxide, supergene
and primary sulphide was estimated by ID3 interpolation of SG measurements.
Blocks were classified as indicated and inferred in accordance with CIM
Definition Standards.
NSR was estimated using undiluted grades, metal prices, recoveries, smelter
treatment and refining costs. Metal prices used for copper, zinc, gold and
silver were US$3.50/lb, US$0.90/lb, US$1,400/oz, and US$25/oz respectively.
Metallurgical recoveries, supported by metallurgical test work were applied
as follows:
Oxide zone: a recovery of 78.4% was applied for gold and 64.5% for silver.
Copper and zinc are not recovered during the oxide phase and therefore are
not considered a part of the oxide mineral resources.
Supergene zone: recoveries to copper concentrate of 87%, 36%, and 78% were
applied for copper, gold and silver. Zero recovery of zinc from the
supergene zone has been assumed. The supergene zinc metal content has not
been included in the mineral resource calculation.
Primary zone: recoveries to copper concentrate of 89%, 45%, and 39%, were
applied for copper, gold, and silver respectively.Recoveries to zinc
concentrate of 85% and 10% were applied for zinc and silver.
A Lerchs-Grossman pit shell was generated from the NSR and using open pit
mining costs of US$1.75/t. The total ore based costs (process and G&A) are
US$25.9/t for oxide, and US$23.9/t for the supergene and primary rock types.
A constant pit slope of 45 degrees was used in the pit optimization. Open
Pit Mineral Resources were reported within the Lerchs-Grossman pit shell
above an NSR cut-off equivalent to the total ore based costs stated
above.Underground Mineral Resources were reported within a grade shell
generated at an NSR cut-off of US$63.9/t, assuming a US$40/t underground
mining cost in addition to the ore based costs stated above. Isolated blocks
were removed prior to tabulation.
The contained metal figures shown are in situ. No assurance can be given
that the estimated quantities will be produced. All figures have been
rounded to reflect accuracy and to comply with securities regulatory
requirements. Summations within the tables may not agree due to rounding.
The sulphide summation for contained zinc does not agree due to exclusion
from the mineral resource of the contained zinc metal within the supergene
zone.
A low sensitivity and a three year average price comparison on open pit
economics was also conducted, to assess project potential and risk due to
commodity price fluctuation. From the scenarios outlined below, the project
illustrates consistency in metal content as prices decrease, and show upside
potential in pit expansion to depth, as prices increase.
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Open Pit Total
Tonnage and Metal % Cu Au Ag Zn
Sensitivity Tonnes Metal Metal Metal Metal
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Low Case -2.9% -0.7% -0.9% -0.8% -1.4%
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Base Case 0.0% 0.0% 0.0% 0.0% 0.0%
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3year average 16.4% 7.1% 9.5% 11.3% 21.6%
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Low Case - - Cu $3.20/lb, Au $1250/oz, Ag $20/oz, Zn $0.80/lb
Base Case - Cu $3.50/lb, Au $1400/oz, Ag $25/oz, Zn $0.90/lb
3 year average - Cu $3.60/lb, Au $1548/oz, Ag $29.90/oz, Zn $0.90/lb
Metallurgy
Metallurgical work is considered preliminary in nature and is on-going. A total
of 16 composite samples were designed for testing at the Blue Coast Research
metallurgical facility in Parksville, BC. These composites were formed from 1/4"
diamond core from 28 separate drill holes, profiling representation from gold
enriched oxide mineralization, copper enriched supergene mineralization, and
copper-zinc primary mineralization. Oxide mineralization has been shown to be
amenable to conventional leaching, with initial South and North Oxide zone
composites illustrating 100 micron grind gold recoveries of 75-80%, and coarser
size heap leach type material would be slightly lower at 71-75%. Additional test
work, engineering, and trade-off studies would be required to establish the most
attractive economic option.
Copper enriched supergene mineralization, derived from the combination of
several composite samples, provided provisional Locked Cycle Test results with
high copper recoveries of 90% and a concentrate grade of 25%. Locked Cycle
Testing on a single composite sample of primary sulfide mineralization resulted
in 89% copper recovery being achieved at a 25% concentrate grade, with 86% zinc
recovery to a separate concentrate grading 60% zinc. Both concentrates contain
gold and silver credits with the potential to prove attractive in a marketing
context. One composite test conducted on transition mineralization did not
respond favourably to initial conventional floatation, and will require
additional review.
The metallurgical work conducted to date is considered very preliminary and more
comprehensive work will follow more detailed drill testing and sampling.
The NI 43-101 technical report for the Harvest Project will be filed on
www.sedar.com within 45 days.
Quality Control
The planning, execution, and monitoring of Tigray's drilling and quality control
programs at the Harvest Project have been conducted under the supervision of
Jeff Heidema, P.Geo., Tigray's Vice President Exploration. Mr. Heidema is a
"Qualified Person" as defined by NI 43-101. Diamond drilling and trenching at
Harvest was coordinated by Tigray contract geologists who also managed the
preparation, logging, and sampling of core and rock samples, in addition to
carrying out bulk density measurements. During sampling, quality control
standards and blanks were introduced at pre-determined intervals to monitor
laboratory performance. A system of field, reject, and pulp sample duplicates
was also incorporated, as were specific programs of re-assaying and umpire lab
assaying to both monitor laboratory performance and also characterize potential
mineralization; all consistent with industry best practice.
Core and rock samples have undergone preliminary preparation at the Acme
Laboratories facility in Ankara, Turkey, and are crushed to 80% passing 10 mesh,
and pulverized to 85% passing 200 mesh (Acme R200-1000 package). Analyses are
conducted at Acme Laboratories in Vancouver, Canada, utilizing Aqua Regia
digestion and ICP-ES for base metal and silver analyses. Gold analyses are
conducted via Fire Assay Fusion with AA finish, and gravimetric analyses are
completed for over-limit samples (Acme 7AR2, G601 packages).
Information recorded from diamond drill core logging and assaying was integrated
using industry standard data management software (Maxwell Datashed). The
resultant data was reviewed, including validation of a random selection of data
against source information, and is considered acceptable for the estimate.
Mineral Resource Qualified Persons
David Thomas, P.Geo., of Fladgate Exploration Consulting Corporation has
reviewed and approved the technical, non-metallurgical information contained in
this news release. Mr. Thomas is independent of Tigray and is a "Qualified
Person" as defined by NI 43-101. Jeff Heidema, P.Geo., Tigray's Vice President
Exploration, has reviewed and approved the geological and metallurgical
information contained in this news release.
Mr. Thomas has consented to the disclosure of such information and his name in
this news release.
About Tigray
Tigray is a Canadian mineral exploration company focused on discovery through
advancing early-stage mineral projects in Ethiopia. Tigray's key property is the
70%-owned Harvest polymetallic VMS exploration project, which covers
approximately 155 square kilometres in the Tigray region of Ethiopia, 600
kilometres north-northwest of the capital city of Addis Ababa. The Company has
also entered into an agreement to acquire up to an 80% interest in the Adyabo
property covering approximately 415 square kilometres immediately west of the
Harvest Project. Tigray's shares trade on the TSX Venture Exchange under the
symbol TIG.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., President, CEO, and Director
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of
applicable Canadian securities legislation. Generally, forward-looking
information can be identified by the use of forward-looking terminology such as
"anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast",
"project", "budget", "schedule", "may", "will", "could", "might", "should" or
variations of such words or similar words or expressions. Forward-looking
information is based on reasonable assumptions that have been made by the
Company as at the date of such information and is subject to known and unknown
risks, uncertainties and other factors that may cause the actual results, level
of activity, performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking information,
including but not limited to: risks associated with mineral exploration and
development; metal and mineral prices; availability of capital; accuracy of the
Company's projections and estimates, including the initial mineral resource for
the Harvest Project; interest and exchange rates; competition; stock price
fluctuations; availability of drilling equipment and access; actual results of
current exploration activities; government regulation; political or economic
developments; environmental risks; insurance risks; capital expenditures;
operating or technical difficulties in connection with development activities;
personnel relations; the speculative nature of strategic metal exploration and
development including the risks of diminishing quantities of grades of reserves;
contests over title to properties; and changes in project parameters as plans
continue to be refined, as well as those risk factors set out in the Company's
listing application dated August 18, 2011.
Forward-looking statements are based on assumptions management believes to be
reasonable, including but not limited to the price of gold, silver, copper and
zinc; the demand for gold, silver, copper and zinc; the ability to carry on
exploration and development activities; the timely receipt of any required
approvals; the ability to obtain qualified personnel, equipment and services in
a timely and cost-efficient manner; the ability to operate in a safe, efficient
and effective manner; and the regulatory framework regarding environmental
matters, and such other assumptions and factors as set out herein. Although the
Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
information will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward-looking information. The
Company does not undertake to update any forward-looking information that is
included herein, except in accordance with applicable securities laws.
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 news release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tigray Resources Inc.
Nick Watters
Business Development
604-488-9582
investors@tigray.ca
www.tigray.ca
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