Initial and Updated NI 43-101 Compliant Mineral Resource Estimates for Gold deposits within Colt's 100% Boa Fé and Montemor Projects, Southern Portugal
GTP - (TSX-V)
P01 - (FRANKFURT)
COLTF - (OTCQX)
MONTREAL, March 4, 2013 /PRNewswire/ - Colt Resources Inc. ("Colt" or the "Company") (TSXV: GTP) (FRA: P01) (OTCQX: COLTF) is pleased to announce details of updated mineral resource estimates for the Chaminé and Casas Novas gold deposits and initial mineral resource estimates for the Banhos, Bracos and Ligeiro gold deposits located within the Company's 100% owned (47Km2) Boa Fé Experimental Mining License ("EML"). Colt is also pleased to announce details of an initial resource estimate for the Monfurado gold deposit located within the Company's 100% owned (728km2) Montemor exploration license that completely surrounds the Boa Fé EML. Boa Fé and Montemor are located approximately, 95km east of Lisbon, Portugal. The resource estimates have been prepared by SRK Consulting (UK) Ltd ("SRK"). These estimation results have been reported in accordance with the guidelines set out by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and detailed in the National Instrument 43-101. The effective date of the mineral resource estimate is March 4, 2013.
Resource Estimate Summary
The Mineral Resources for the six deposits at Banhos, Braços, Chaminé, Casas Novas, Ligeiro and Monfurado (Figure 1) have been independently estimated by SRK at 6,070,000 tonnes grading an average of 1.74 g/t gold classified as Indicated Mineral Resources, with an additional 1,555,000 tonnes grading an average of 1.7 g/t gold classified as Inferred Mineral Resources. The Mineral Resource is reported above a 0.44 g/t gold cut-off grade and contained within optimized pit shells considered to have reasonable prospects for eventual economic extraction.
"We are very pleased with the results of this estimate exercise that reflects the work performed on several targets where we have concentrated our efforts since commencing field work on the project in late November 2011. Our strategy of focusing on previously drilled areas has resulted in a rapid increase of mineral resources that will provide the foundation for near term mine development.
Colt's regional exploration results continue to support our belief that over time the project will develop into a world-class mining district. Demonstrating this will take time and money. Colt recognizes that there is a disconnect between valuation of resources in the ground and valuation of resources being mined profitably. Therefore Colt's decision to move towards development is based on economics and our desire to finance future regional exploration from revenue. Our high level of confidence in the Boa Fé/Montemor projects supports our decision to commence a Feasibility study during Q2, 2013. We expect to have this completed by year end. In parallel, we have completed the majority of the anticipated work required for the Environmental Impact Assessment (EIA). In April, a scheduled public review period will take place, paving the way for final approval. The EIA will be used as a blueprint designed to mitigate the impact of mining while generating value in an economically depressed region of Portugal."
Mr. Perrault added that, "While we intend to focus on mine development, we are committed to demonstrating the long term potential of this mineralized zone that is believed to extend over 30 Km. Our work last year resulted in the discovery of many new areas with significant upside potential such as the "Chaminé Deeps" discovery where this week, we have begun down hole geophysics to improve our understanding of this discovery and planning our next phase of targeted drilling."
Mr. Perrault concluded by saying, "Building a mine takes time and involves risk. We are confident that our team has the skills to deliver on our strategy. As with our Tabuaço Tungsten Project, we decided initially to focus on a relatively small (but reasonably well-drilled) part of this large mineralized system so as to deliver on our promise to reach production within an accelerated time frame. Our Feasibility Study will focus on delivering a cost effective and profitable gold mining operation that will provide investors with exposure to a company focused on building value."
Boa Fé / Montemor Resource Estimate
SRK were supplied with a comprehensive drilling and trenching database together with preliminary 3D solids interpreted for the six deposits at Banhos, Braços, Chaminé, Casas Novas, Ligeiro and Monfurado. The exploration work has been completed by Colt Resources and predecessor companies. This database and 3D solids has formed the basis of the Mineral Resource estimates presented here. All geological modeling was undertaken in Gemcom™ mining software ("GEMS") by Colt and SRK. In addition, Colt in conjunction with SRK have undertaken grade modeling and estimation using GEMS with subsequent resource pit shell optimization conducted by SRK using Whittle ("Whittle") software packages.
Block models were constructed for each of the deposit areas in GEMS using a block size of 10m (X) x 10m (Y) x 5m (Z), except for Monfurado where a block size of 25m (X) x 25m (Y) x 5m (Z) was used. Block grades were estimated using 2m downhole composites using Ordinary Kriging (OK) in all cases except for Braços and Monfurado where Inverse Distance Weighting (IDW) was used. Grade estimation was constrained by nominal 0.40 g/t Au grade solids. The resultant block models were then imported into Whittle for resource pit optimization (Figures 2 to 5).
The following table (Table 1) summarises the Mineral Resource, stated at a 0.44g/t Au cut-off grade and contained within potentially mineable open pits, within the defined mineralization models for each deposit. Classification of the Mineral Resource is based on quality control data, geological continuity, borehole spacing and kriging quality results. The estimate is considered to have reasonable prospects for eventual economic extraction, as it is constrained by pit shells optimized on a gold price based on consensus market forecasts and independent benchmarking, and a cut-off grade derived from reasonable surface mining and processing costs.
Table 1: Resource Statement for the principal Boa Fé/Montemor deposits
Alentejo Region, Portugal: SRK Consulting (UK) Ltd., March 4, 2013*
|(1) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.|
|(2) Resources stated as contained within a potentially economically mineable open pit above a 0.44 g/t Au cut-off. A variable specific gravity estimated for individual block models.|
|(3) Pit optimization is based on an assumed gold price of US$1,560/oz , metallurgical recovery of 90%, mining cost of US$2.00/t and processing and G&A cost of US$18.00/t.|
|4) Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.|
The Mineral Resources are reported in accordance with Canadian Securities Administrators ("CSA") NI 43-101 and have been classified in accordance with standards as defined by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") "CIM Definition Standards - For Mineral Resources and Mineral Reserves".
This mineral resource estimate has been completed by Dr John Arthur (CGeol FGS, CEng MIMMM), Principal Resource Geologist with SRK, who has conducted a site inspection and visited the technical offices of Colt between February 6-8 2013 and has reviewed pertinent geological information and the procedures and protocols of Colt in sufficient detail to support the data incorporated in the Mineral Resource estimate. Dr Arthur is an Independent Qualified Person as defined under NI 43-101 and is responsible for the Mineral Resource estimate presented in this release.
Cut-Off Grade Sensitivity
Tables 2 and 3 illustrate the impact of the application of a range of cut-off grades and the resulting impact on total tonnes and grade.
Table 2: Indicated Mineral Resources
|Cut-Off g/t Au||Tonnes||Grade g/t Au||Contained Oz Au|
Table 3: Inferred Mineral Resources
|Cut-Off g/t Au||Tonnes||Grade g/t Au||Contained Oz Au|
The application of cut-off grades higher than that used for reporting of mineral resources indicates a significant proportion of the mineral resources may be selectively mined during the initial phases of development and in doing so may positively impact project economics.
Boa Fé / Montemor Next Steps
- Resource definition and infill drilling will continue to improve confidence in near term mining production targets.
- Geophysical testwork to model mineralization close to known deposits.
- Targeted deep drilling to continue to test deep gold mineralization potential close to planned mining operations.
- Environmental impact studies will continue so as to optimize the mining and processing facilities and minimize their environmental impact.
- Geotechnical and Hydrological testwork will continue to provide data for pit design.
- Metallurgical bulk sampling to provide sufficient representative volumes for final plant design and gold recovery optimization.
- Feasibility Study will be accelerated so as to be completed by the end of 2013.
- Advance the project to construction during 2014 and full production by 2015.
Quality Assurance / Quality Control (QA/QC)
Drill sample intervals are reported as metres (m) down hole and as such do not represent true widths of mineralized intersections. All drill core is transported by Company personnel from drill site to a nearby secure storage facility for logging and sampling. Sampling intervals are defined after core logging and determination of probable high grade zones based on visible mineralization and favorable structure. One half of the core is sent for analysis, while the other half is retained in the core boxes for future reference.
All samples are sent by courier to ALS Chemex's facility in Seville, Spain, where they undergo sample preparation. The resulting pulps are shipped by ALS to their laboratory in Romania for gold assay and routine ICP multi-element analysis. Gold analysis for all samples is done via method "Au - AA24" (Au by fire assay and AAS, 50g nominal sample weight). The detection limit for this method is 5 ppb. For every sample with Au values over 3 ppm, the pulp is re-analyzed by method "Au - GRA22" (Au by fire assay and gravimetric finish, 50g nominal sample weight). The detection range for this method is 0.05-1000 ppm.
A set of standards and blanks has been inserted by Colt into the drill sample stream on a regular basis in addition to the laboratory's own internal QA/QC standards and duplicates. QA/QC results to date are well within the accepted norm.
SRK, with inputs from Colt on specific sections, will be the author of an NI 43-101 compliant Technical Report on the Mineral Resource Estimate for the Boa Fé Gold Project, to be filed within 45 days of this news release.
About Colt Resources Inc.
Colt Resources Inc. is a is a Canadian mining exploration and development company engaged in acquiring, exploring, and developing mineral properties with an emphasis on gold and tungsten. It is currently focused on advanced stage exploration projects in Portugal, where it is one of the largest lease holders of mineral concessions.
Dr John Arthur, (CGeol FGS, CEng MIMMM), Principal Resource Geologist with SRK, is the independent qualified person, as defined in NI 43‐101, for the Boa Fe Mineral Resource estimates. Dr Arthur has reviewed the content of this press release and consents to the information provided in the form and context in which it appears.
The Company's shares trade on the TSX‐V, symbol: GTP; the Frankfurt Stock Exchange, symbol: P01; and, the OTCQX, symbol: COLTF.
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which are beyond the Company's control. These risks, uncertainties and
assumptions include, but are not limited to, those described under
"Risk Factors" in the Company's annual information form available on
SEDAR at www.sedar.com and could cause actual events or results to differ materially from
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intend, nor does the Company undertake any obligation, to update or
revise any forward-looking information or statements contained in this
news release to reflect subsequent information, events or circumstances
or otherwise, except if required by applicable laws.
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SOURCE COLT RESOURCES INC.