Alacer Gold Announces 36% Increase in Reserves for Frog's Leg Mine
TORONTO, March 27, 2012 /PRNewswire/ - Alacer Gold Corp ("Alacer" or the "Corporation") [TSX: ASR and ASX: AQG] is pleased to advise of updated resources and reserves for the Frog's Legs Mine in Western Australia.
Mr. Edward Dowling, President and CEO of Alacer stated, "Alacer's 49% share of proven and probable reserves at the Frog's Legs Mine has increased by 102,000 ounces to 385,000 ounces of contained gold, representing a 36% increase in total reserves. Importantly, the reserve grade has increased by 12% to 5.76g/t gold. The mine life has been extended to 2019 based on these reserves which extend to only 600m below surface. A drilling program is in progress to test for depth extensions to the current resource."
Alacer has a 49% interest in the Mungari East Joint Venture ("MEJV"), which owns the Frog's Leg underground mine located 20 kilometres west of Kalgoorlie. La Mancha Resources ("La Mancha") [TSX: LMA] is the operator of MEJV and holds the other 51% interest in the Frog's Leg Mine. La Mancha is a reporting issuer in certain jurisdictions in Canada and is required to comply with National Instrument 43-101 ("NI 43-101").
Alacer's 49% share of reserves and resources for the Frog's Legs Mine is shown in the following table.
|As at December 31, 2010||As at December 31, 2011|
|(kt)||(g/t Au)||(koz)||(kt)||(g/t Au)||(koz)|
|Total P&P reserves||1,714||5.14||283||2,081||5.76||385|
|Total M&I resources||2,318||6.1||455||2,219||6.74||480|
Reported mineral reserves as at December 31, 2011 were calculated using cut-off grades of 3.0 g/t gold for stope ore and 1.5 g/t gold for development ore, whilst mineral resources for the same period were calculated using a cut-off grade of 2.7 g/t gold.
All resource numbers quoted in this release are reported inclusive of reserves.
The information contained in this press release is based on an announcement released by La Mancha on March 22, 2012 in respect of the increase of reserves at Frog's Legs Mine (the "La Mancha Release"). Further information is provided in the La Mancha Release.
Qualified Persons and Data Verification
This press release was reviewed and prepared under the supervision of Chris Newman, Executive Vice President - Exploration and Paul Thompson, Vice President Technical Services of Alacer. By reason of Mr. Newman's and Mr. Thompson's education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, they are the "qualified persons" for the purposes of NI 43-101. Mr. Newman and Mr. Thompson have read NI 43-101 and have ensured that this press release has been written in compliance with that instrument. Mr. Newman and Mr. Thompson have read and approved the contents of this press release, and have consented to publish the press release in the form and context in which it appears.
The following commentary is extracted from the La Mancha press release dated March 22, 2012:
"James Potter Bsc.(Earth Science) hons MAIG, MAusIMM, Exploration Manager of La Mancha Resources Australia, supervised the drilling program and the geostatistical analysis of the drill data, was responsible for quality control and verification of the drill hole data used by La Mancha Resources Australia in calculating the resource estimates, conducted the resource estimation.
Nigel Tamlyn, Chartered Engineer (UK), Chief Operating Officer of La Mancha Resources Inc., is a member of the IMMM, and member of the SAIMM. Mr. Tamlyn has conducted a review of the Ore Reserve for the Frog's Leg Gold Mine and has supervised the study and all of the information contained in this release.
The mineral reserves in this press release conforms to the requirements of NI 43-101 and were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. The effective date of the mineral reserves and resources estimate is December 31, 2011. The Mineral reserves estimate is based on only measured and indicated resource block modelling information. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
The mineral reserves were calculated using a mining reserve cut-off grade of 3.0 g/t for stoping and 1.5 g/t for development, a gold price of US$1,350 per ounce, and mining methods, standard assumptions on underground design made to suit operating equipment parameters and current operational experience.
The reserve includes a dilution factor of 10.6% based on standard dilution parameters applied to the resource based upon empirical knowledge of the existing Frog's Leg Underground mine conditions and industry standards. Weighted average LOM gold recovery is estimated at 94.5% based on the geological model and the respective metallurgical recoveries for each rock type generated for the deposit.
The mineral resources were calculated using a cut-off grade of 2.7 g/t Au. The mineral reserve and resource has been rounded to reflect that the numbers are estimates. Gold grades were estimated with a parent block size of 2m x 10m x 10m with sub-celling down to 0.1m x 1m x 1m. Block model grade was estimated using Ordinary Kriging technique from capped 1m composites. Composites were capped between 15g/t and 190 g/t depending on the individual mineralized domain.
The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as indicated or measured mineral resources and it is uncertain if further exploration will result in upgrading them to indicated or measured mineral resource categories.
Analysis of the samples used to calculate the mineral resource complied fully with the Analytical Quality Assurance Program put in place by La Mancha to control and assure the analytical quality of assays in its gold exploration and development. This program includes the systematic addition of blank samples, pulp duplicates and internal material references ("standards") to each batch of samples sent for analysis. Blank samples are used to check for possible contamination in the laboratory, duplicates allow the overall precision to be quantified and standards determine the analytical accuracy. The majority of drilling samples were generated by cutting the NQ2 diamond core in half, and sending one half to the lab for assaying. Grade control LTK48 diamond drill core (whole core) and ore drive face samples were also included in the estimation to give finer detail in the production areas. All samples generated are based on sampling according to geological boundaries. Samples are assayed at the SGS Laboratory in Kalgoorlie using a 50g Fire Assay analysis.
There are numerous uncertainties inherent in estimating mineral reserves, including many factors beyond the Company's control. Resource estimation is a subjective process, and the accuracy of any resource estimate is a function of the quality of available data and engineering and geological interpretation and judgment. Results from drilling, testing and production, as well as material changes in metal prices subsequent to the date of an estimate, may justify revision of such estimates. To the best of La Mancha's knowledge, at the time of estimation there were no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues that could materially impact on the eventual extraction of the mineral resources."
Mr. Potter and Mr. Tamlyn are not the qualified persons in regard to this Alacer press release.
Alacer is a leading intermediate gold company with operations in both Australia and Turkey.
Alacer has three operating gold mines in Australia, namely the Higginsville and South Kalgoorlie Operations; and a 49% interest in the Frog's Leg underground mine. The South Kalgoorlie Operations and the Frog's Leg interest were acquired following the successful acquisition of Dioro Exploration NL, which was completed in March 2010.
Alacer has one world-class operating gold mine in Turkey called Çöpler. As a result of its development of Çöpler , Alacer is recognized as a leader in exploration and development in Turkey. Çöpler is 80% owned by Alacer and 20% by Lidya Madencilik San. ve Tic. A.Ş.
Alacer also possesses a significant portfolio of gold and copper exploration properties in Turkey and Australia.
Except for statements of historical fact relating to Alacer, certain statements contained in this press release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may be contained in this document and other public filings of Alacer. Forward-looking information often relates to statements concerning Alacer's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts.
Forward-looking information includes statements concerning, among other things, matters relating to proposed exploration, communications with local stakeholders and community relations, status of negotiations of joint ventures, commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the development approach, the timing and amount of future production, timing of studies and analyses, the timing of construction of proposed mines and process facilities, capital and operating expenditures, economic conditions, availability of sufficient financing, exploration plans and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political factors that may influence future events or conditions. Such forward-looking information and statements are based on a number of material factors and assumptions. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.
You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in Alacer's filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events
SOURCE ALACER GOLD CORP.