- Published: 20 November 2008
- Written by Editor
43-101 Update Moves Kinbauri's El Valle/Carles Project Towards Feasibility; Measured & Indicated Resource at BSN and A107 Zones Up Over 80 Pct
Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE: KNB)(FRANKFURT: 3KG.DE) is pleased to report that it has filed on Sedar a N.I. 43-101 compliant report entitled "Technical Report for the El Valle, Carles, La Brueva and GodA-A?1/2n Gold Deposits, November 2008 Update Rio Narcea Gold Belt, Asturias, Spain". This report, dated November 14th, 2008 ("the technical report") was authored by Alan C. Noble, P.E. of Ore Reserves Engineering, Lakewood, Colorado ("ORE").
Total Resources now stand at 916,000 ounces of gold measured and indicated (6,170,000Mt grading 4.6gAu/t) and 1,097,000 ounces (6,577,000Mt grading 5.2gAu/t) of gold inferred.
Noble states "The drilling program defined two new gold-copper zones at El Valle (San Martin and A208 South) both of which are not fully delineated. Work to date has indicated potential for further discoveries as exploration drilling continues" (p. 94 of the technical report). Resource details are summarized in the table below:
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Gold Copper Ounces Tonnes G Au
Resource Type and Category Tonnes G Au/t %Cu Gold Copper Eq/t
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Total Measured Sulphides 2,360,000 3.6 0.85 272,000 20,000 5.0
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Total Indicated Sulphides 2,874,000 3.8 0.85 348,000 25,000 5.2
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Total Measured +
Indicated Sulphides 5,234,000 3.7 0.85 620,000 45,000 5.1
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Total Indicated Oxides 936,000 9.8 0.70 296,000 6,500 11.0
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Total Measured +
Indicated Oxides +
Sulphides 6,170,000 4.6 0.85 916,000 51,500 6.0
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Total Inferred Sulphides 2,896,000 4.1 0.65 384,000 19,500 5.2
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Total Inferred Oxides 3,681,000 6.0 0.65 713,000 14,000 7.1
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Total Inferred Oxides +
Sulphides 6,577,000 5.2 0.65 1,097,000 33,500 6.3
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Cutoff grades vary by deposit as follows: 1.5g/t EqAu for surface minable
material, 2.6g/t Eq Au for blasthole and room and pillar mining, and 3.5g/t
EqAu for blasthole retreat and cut and fill mining. EqAu equals Equivalent
Gold equals Au (ppm) + 1.66 (i) % Cu
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The new estimate represents a 52 percent increase in gold and a 125 percent increase in copper, primarily in the measured and indicated categories, over the N.I 43-101 resource estimate of the project prior to Kinbauri's purchase of the property in March 2007. The increase is a result primarily from 29,060m of underground drilling at El Valle and 1,250m at Carles. For details of resources and cut-offs for all zones see Schedule A, press release of November 5th, 2008.
Success of 2008 Drilling Program: "Infill drilling in the Black Skarn North (BSN) and Area 107 (A107) Zones has converted significant quantities of inferred resources to measured and indicated resources, while continued exploration has replaced the inferred resource that was converted to measured and indicated...
- Measured resources in the BSN and A107 Zones increased from zero to 905,000 tonnes, which contain 113,000 ounces of gold and 7,000 tonnes of copper.
- Indicated resources in BSN and A107 Zones have increased by over 40% to 2,201,000 tonnes containing 424,000 ounces of gold and 18,500 tonnes of copper.
- Total measured plus indicated resources in the BSN and A107 Zones are now 3.1 million tonnes, with an average grade of 5.4g Au/t and 0.8% Cu that contain 537,000 ounces of gold and 25,500 tonnes of copper. Thus, the currently defined measured plus indicated tonnage exceeds the Kinbauri goal; gold grade is currently lower than the goal, but there are still significant tonnages of inferred resource in A107 that can be upgraded to add higher-grade material. In addition, immediate high-grade potential is available in the Charnela South Zone.
- Conversion of resources from inferred to measured and indicated in the BSN and A107 zones has been very efficient, and inferred resources have decreased by only the amount of resource that has been upgraded." (p. 7 and 8 of the technical report).
ORE's estimates for the most accessible zones at El Valle show clear potential for a 10 year mine life at El Valle. Estimates for A107, BSN, Charnela South and Monica, which are all easily accessible from present mine workings, total:
- 787,000 ounces of gold and 98 million lbs. of copper (5.1Mt at 4.8g Au/t and 0.86% Cu (6.23g Au Eq/t)) measured and indicated.
- 485,000 ounces of gold and 36 million lbs. of copper (2.6Mt of 5.9g Au/t and 0.64% Cu (6.16 Au Eq/t)) inferred
For details of zone resources and cut-offs see Schedule A. (http://media3.marketwire.com/docs/Schedules_A1.pdf)
Further Development: Kinbauri is currently updating the geological models for the area and is confident that more drilling and interpretive work will lead to further increases in resources. ORE has recommended a program to Kinbauri. The details of the program are available in Schedule B. (http://media3.marketwire.com/docs/Schedules_B1.pdf) Kinbauri has retained Scott Wilson Roscoe Postle Associates to complete a scoping study prior to completing a full feasibility for the re-start of mining operations. Results of the scoping study are expected in mid to late-December.
Drill programs at the project were supervised by Mr. Santiago Gonzalez-Nistal, Kinbauri Espana's senior geologist, with quality control being provided by Dr. C. F. Gleeson, P. Eng., Kinbauri's Vice-President of Exploration: both are qualified persons as defined by N.I. 43-101. Details of Kinbauri's Quality Assurance Program are reported in the press release of July 19th, 2007. This press release was prepared by Dr. V. N. Rampton, P. Eng in his capacity as a qualified person. Dr. Rampton recorded a "Beyond The Press Release" on November 6th, 2008 on the Company's Investor Relations Site at http://www.agoracom.com/ir/kinbauri discussing of the resource up-date. The November Resource up-date and the technical report prepared by ORE is available for viewing on SEDAR (www.sedar.com) and Kinbauri's web-site.
In other corporate news: At the Annual Meeting held in Toronto on the 13th of November, the following directors were elected: Vern Rampton, Christopher Gleeson, Marilyn Bloovol, Brian McEwen and Bryan Nethery. In addition the shareholders ratified Kinbauri's Stock Option Plan, the Shareholder's Rights Plan and approved the appointment of Raymond Chabot Grant Thornton as its auditors.
Kinbauri is a TSX VENTURE - Tier 1 Mineral Exploration Company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. Its immediate focus is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain in order to start operations at the mine and existing mill complex there in 2010. It currently has 48,752,695 common shares issued and outstanding.
This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
VISIT:
Kinbauri Gold's Hub at http://www.agoracom.com/IR/kinbauri where investors can post questions and receive answers or review questions and answers already posted by other investors. Kinbauri Web-Site: www.kinbauri-gold.com
THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
North America
Kinbauri Gold Corp.
Darrell Munro, BB.A, LL.B
Manager, Corporate Communications
613-836-0198
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Kinbauri Gold Corp.
Dr. Vern Rampton, P. Eng.
President
613-836-2594
613-831-2730 (FAX)
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Europe
INVESTEL
Investor Relations & Telecommunications
Ruediger (Rudy) Hnyk
CEO
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SOURCE: Kinbauri Gold Corp.
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