Gold-Ore Reports Resource/Reserve Statement for Bjorkdal Gold Mine
29 October 2009 - 12:00AM
Marketwired Canada
Gold-Ore Resources Ltd. (the "Company") (TSX VENTURE:GOZ) is pleased to report
the results of the recently completed resource and reserve estimate for the 100%
owned Bjorkdal Gold Mine in Sweden. The Bjorkdal Gold Mine has been in operation
for 19 of the last 21 years and this new reserve estimate outlines 4.0 million
tonnes of ore sufficient for another 3.7 years of operations. The measured and
indicted resources generate an additional 6.9 million tonnes available for
conversion to reserves.
Resources
Wardell Armstrong International Ltd. (WAI) was commissioned to provide Gold-Ore
with a resource estimate, which separated the deposit into resources amenable to
open pit mining and those that would be mined underground. WAI used Datamine
software and Indicator Kriging, incorporating all drill data up to March 2009, a
total of 4,475 drill holes with a nominal spacing of 30 metres. The resource
estimate complies with JORC 2004. Table 1 lists the tonnage and grade for the
open pit and underground resources, and Table 2 lists the corresponding ounces
of gold for each category.
Table 1: Open Pit & Underground Mineral Resource Estimate - Tonnages and Grade
---------------------------------------------------------------------------
Res-
ource Cut- Measured +
Type off Measured Indicated Indicated Inferred
---------------------------------------------------------------------------
Au Tonnage Au Tonnage Au Tonnage Au Tonnage Au
(g/t) (000's t) (g/t) (000's t) (g/t) (000's t) (g/t) (000's t) (g/t)
---------------------------------------------------------------------------
Open
Pit 0.60 394 2.25 4,071 2.07 4,465 2.09 5,743 1.79
---------------------------------------------------------------------------
Under-
ground 1.00 796 2.79 1,611 2.94 2,407 2.89 1,927 2.62
---------------------------------------------------------------------------
Evaluation (2.5 m Selectivity) Adjusted for a 91% Mining Recovery and 30%
Mining Dilution
Table 2: Open Pit & Underground Mineral Resource Estimate - Ounces
--------------------------------------------------------
Resource Cut- Measured +
Type off Measured Indicated Indicated Inferred
--------------------------------------------------------
Au Au Au Au Au
(g/t) (Ounces) (Ounces) (Ounces) (Ounces)
--------------------------------------------------------
Open Pit 0.60 28,505 270,964 299,469 330,546
--------------------------------------------------------
Underground 1.00 71,410 152,294 223,704 162,339
--------------------------------------------------------
Evaluation (2.5 m Selectivity) Adjusted for a 91% Mining
Recovery and 30% Mining Dilution
Reserves
After completing the resource estimate, WAI calculated mineable reserves for
open pit and underground mining. To establish open pit reserves WAI completed a
Pit Optimisation Study using Net Present Value Scheduler software and evaluated
four different resource scenarios at different gold prices. The scenario
selected for the pit mine design was the one that only included measured and
indicated resources that would not impact the underground development. The Open
Pit Design Module of Datamine was used to delineate the reserves. The mineable
reserves include a dilution factor of 30% and 91% mining recovery. The economic
cut-off grade was determined to be 0.45 grams per tonne gold at a gold price of
$200 Swedish krona per gram (US$806 per ounce).
To calculate the underground reserves WAI updated the underground resources
based on modelling individual veins for the area extending beyond the north wall
of the current pit and within the area bounded by the current mine development.
Of the Measured and Indicated resources considered, approximately 30% was
included in proven and probable ore. Measured and Indicated resources, north and
south of the area examined in the study, will be added to reserves as additional
diamond drilling and development in these areas allows conversion. This resource
estimate was based on a minimum vein thickness of 1.0 metres. No dilution was
applied to the estimate. The resource estimate for this part of the study used
ordinary Kriging.
The mine design, including the stopes, was modelled in Mine 2-4D software. A
dilution factor of 25% was applied and a mining recovery of 95%. A cut-off grade
of 1.3 grams per tonne gold was used for the development and a cut-off grade of
1.0 grams per tonne gold was used for the stopes. Proven and probable reserves
for the open pit and the underground are listed in Table 3.
Table 3: Mineable Reserves Estimate - Tonnages, Grade & Ounces
-----------------------------------------------------------
Proven &
Mine Cut-off Probable
Design Grade Proven Probable Reserves
-----------------------------------------------------------
Tonnage Grade Tonnage Grade
Au (000's Au (000's Au
(g/t) tonnes) (g/t) tonnes) (g/t) Ounces
-----------------------------------------------------------
Open Pit 0.45 497 1.15 3,071 1.13 129,945
-----------------------------------------------------------
Underground 1.00/1.30 170 2.39 287 2.50 36,128
-----------------------------------------------------------
Totals 667 3,358 166,073
-----------------------------------------------------------
Economic Parameters for Conversion of Resources to Reserves
The Bjorkdal Gold Mine began operations in 1988 and has produced for 19 of the
last 21 years, and continuously since 2001. The Bjorkdal processing plant has
now milled over 19.7 million tonnes of ore and has produced 960,000 ounces of
gold. The economic parameters used for converting resources to reserves were
based on actual operating conditions at Bjorkdal for the period December 2008 to
August 2009 and are listed below:
- Mechanized underground mining methods - long hole stoping and lateral
sub-level jumbo development
- Open pit methods using blast hole drill rigs on 5 metre benches using standard
truck and shovel excavation
- Processing throughput of 3,200 tonnes/day for 350 days/year or 1.1 million
tonnes per annum
- Processing flow sheet includes crushing, grinding with gravity and flotation
beneficiation to recover gold
- Average plant recoveries at 90%
- Refinery and smelter contracts established with payable gold at 94%
- Average underground costs including mining, transportation, milling and G&A at
Swedish krona $233 (US$ 29.20) per tonne
- Average open pit costs including mining, transportation, milling and G&A at
Swedish krona $110 (US$ 13.78) per tonne
- Average Swedish krona to US dollar exchange rate (Dec 2008 to August 2009) at
7.98:1
Glen Dickson, CEO of Gold-Ore stated, "We are pleased to have a reserve
statement that indicates a multi-year mine life at Bjorkdal, although there is a
significant amount of resources that could not be included in the reserves
because of the drill hole density. However, our underground drill program
continues to define those resources, and we are confident that a large
percentage of the underground resources will be converted to reserves as the
mine development advances."
About Gold-Ore
Gold-Ore Resources is a gold mining and exploration company focused in Sweden.
The Company is generating positive cash flow, is debt-free and unhedged, and
remains focused on increasing gold production from the 100%-owned Bjorkdal Gold
Mine. In addition to Bjorkdal, the Company also has other assets in the country;
the Ronnberget Gold Property (adjacent to Bjorkdal), the Norrliden Polymetallic
Deposit and the Vallberget Polymetallic Property.
ON BEHALF OF THE BOARD
Glen Dickson, Chairman and CEO
This news release may contain forward-looking statements including but not
limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral
recovery processes, etc. Forward-looking statements address future events and
conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such
statements.
News Release 09-14
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