Aldridge Minerals Reports Second Quarter 2012 Financial Results and Provides a Corporate Update

TSX-V: AGM

TORONTO, July 20, 2012 /CNW/ - Aldridge Minerals Inc. (TSX Venture: AGM) ("Aldridge" or the "Company") is pleased to announce the filing of its unaudited condensed consolidated financial statements and management's discussion & analysis for the three and six months ended May 31, 2012 (the "Financial Statements" and the "MD&A", respectively). Aldridge is also pleased to provide an overview of the work summarized in the MD&A. Technical information contained in this news release was previously disseminated by way of news releases and posted on SEDAR at www.sedar.com and on the Company's website at www.aldridgeminerals.ca.

Yenipazar Resource Estimate

On June 13, 2012, the Company announced an in pit updated National Instrument 43-101 mineral resource estimate for its Yenipazar polymetallic deposit in Turkey. The estimate is based on all drilling completed to the end of 2011 (54,774 meters), and includes 7,202 metres of diamond drilling.  The resource estimate showed an indicated resource of 2,620,000 gold equivalent ounces at 3.05 g/t gold equivalent.

The updated mineral resource is summarized in the table below.

In Pit Total Mineral Resources @ NSR/t cut-off of US$15/t for Sulphides and US$10/t for Oxides(1)(2)(3)(4)(5)

  Contained Metal
Category Tonnes Au
(g/t)
Ag
(g/t)
Cu
(%)
Pb
(%)
Zn
(%)
Au Eq
(g/t)
Au
(M oz)
Ag
(M oz)
Cu
(M lbs)
Pb
(M lbs)
Zn
(M lbs)
AuEq
(M oz)
Indicated 26,684,000 1.04 31.3 0.30 1.04 1.40 3.05 0.89 26.85 176.5 611.8 823.6 2.62
Inferred 1,159,000 0.48 27.7 0.22 1.00 1.95 2.51 0.02 1.03 5.6 25.6 49.8 0.09

(1)     Mineral resources which are not mineral reserves do not have demonstrated economic viability.  The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
(2)     The quantity and grade of reported Inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
(3)     The mineral resources in this estimate were calculated with 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.
(4)     Au equivalent ratios were calculated using the following recoveries: Au 92%, Ag 90%, Cu 75%, Pb 75% and Zn 77%. Metal prices in US$ used were Au $1,340/oz, Ag $25/oz, Cu $3.50/lb, Pb $1.00/lb and Zn $0.95/lb.
(5)     All resources are reported within an optimized pit shell. The $15/tonne Sulphide NSR cut-off value for resource reporting was derived from a processing cost of US$12.50/tonne and a G&A cost of US$2.50 per tonne. The $10/tonne Oxide NSR cut-off value for resource reporting was derived from a processing cost of US$7.50/tonne and a G&A cost of US$2.50 per tonne. Mining costs were US$1.60 per tonne and optimized pit slopes were 50 degrees.

Significantly Improved Metallurgy

In June 2012, Aldridge announced that metallurgical testing at SGS (UK) has confirmed that a gravity concentration process prior to flotation significantly increases the amount of gold recovered. Preliminary flow sheet analysis contemplates a separate gold circuit followed by sequential flotation of copper, lead, and zinc. Test work is ongoing with a view to finalizing the flow sheet this summer.

The matrix of metal recoveries that formed the basis for the Yenipazar resource update is set out in the table below.

Metal Total
Recoveries
Gold Gravity
Concentrate
Copper
Concentrate
Lead
Concentrate
Zinc
Concentrate
Au 92.0% 65.0% 20.0% 5.0% 2.0%
Ag 90.0% 10.0% 10.0% 65.0% 5.0%
Cu 75.0%   75.0%    
Pb 75.0%     75.0%  
Zn 77.0%       77.0%

Feasibility Study
The Yenipazar feasibility study (the "Feasibility Study"), being overseen by Jacobs Minerals Canada Inc., continues to progress. Project costs are within the budgets established for the team of consultants including P&E Mining who is preparing the mine plan and resource update, SGS (UK) who is undertaking metallurgical studies, SRK Turkey which is working on the Environmental and Social Impact Assessment (ESIA) and Golder Associates which is responsible for geotechnical studies. SRK Turkey is also working on hydrological aspects of the project from both geotechnical and water supply aspects. The logistics study on the transportation of concentrates, which included on-site inspections in June of various ports, roads and rail options is progressing as scheduled.

The diamond drilling program, which will twin an equal number of RC holes, began in late April and will continue through August. The resulting assays from the 2012 drilling program will enhance the data available to support the mine plan and the project economics of the Feasibility Study.

Copies of the Financial Statements and MD&A may be obtained on SEDAR at www.sedar.com, our website at www.aldridgeminerals.ca or by contacting the Company directly.

About Aldridge Minerals Inc.
Aldridge is a near development stage mining company focused on advancing its Yenipazar polymetallic VMS deposit (Au, Ag, Cu, Pb, Zn) in Turkey - a country that is committed to developing its natural resources and is rapidly emerging as an economic powerhouse. Aldridge is currently building on its December 2010 Preliminary Economic Assessment with a Feasibility Study, which Aldridge expects to complete by the end of 2012. The Yenipazar deposit is subject to an earn-in agreement with Alacer Gold Corp., wherein Aldridge can earn a 100% working interest subject to certain conditions, subject to a 6% net profit interest ("NPI", revenues less operational costs) until revenues of US$165 million are generated, and a 10% NPI from there on.

Additional information and corporate documents may be found on www.sedar.com and the Aldridge website, www.aldridgeminerals.ca.

Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Aldridge. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Aldridge believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this new release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Aldridge disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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 Aldridge Minerals Inc.




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