Indicated Resource: 391,000 Ounces Gold +
6,070,000 Ounces Silver
Inferred Resource: 42,100 Ounces Gold + 401,500
Ounces Silver
TSX-V: NDR
VANCOUVER, Oct. 5, 2018 /CNW/ - New Dimension Resources Ltd.
(TSXV: NDR) (the "Company" or "New Dimension") is pleased to report
the results of an updated Mineral Resource Estimate ("MRE") for the
Las Calandrias Gold-Silver Project in Santa Cruz Province, Argentina. The updated MRE has been prepared
by independent mining consultants AGP Mining Consultants Inc. ("AGP
Mining") in accordance with Canadian National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101").
The updated MRE includes contributions from both the Calandria Sur
and Calandria Norte deposits (Figures 1&2); a detailed
evaluation of the mineral resource potential of the adjacent
high-grade Morena vein/breccia system will continue over the coming
months.
Highlights
- The updated Mineral Resource Estimate ("MRE") for Las
Calandrias has been reported utilizing an optimized constraining
shell, and is based on the concept of an open pit for the Calandria
Sur deposit and an open pit and possible underground operations for
the Calandria Norte Deposit.
- The updated MRE confirms the robust nature of the Las
Calandrias gold-silver resource, and has increased global Indicated
Category gold resources contained within constraining pit shells by
22% or 69,000 ounces. Significant potential also
still exists for the discovery of new mineral resources at Las
Calandrias, especially within the Morena and Despreciada
vein/breccia systems, in addition to within new prospects (e.g.
Bozal) in the broader Las Calandrias District.
- The updated MRE for Las Calandrias, as reported by sector:
Calandria Sur Deposit (Figures 3&4) –
Mineral Resources within constraining Shell
|
Grades
|
Contained
Metal
|
Resource
|
Cut-off
Grade
(gpt Au)
|
Tonnage
(,000 t)
|
Au
(gpt)
|
Ag
(gpt)
|
Au
(oz Au)
|
Ag
(oz Ag)
|
Indicated
|
Varied
|
7,424
|
1.33
|
24.65
|
318,000
|
5,884,000
|
Inferred
|
Varied
|
1,739
|
0.73
|
7.17
|
41,000
|
401,000
|
Calandria Norte Deposit (Figure 5) – Mineral
Resources within constraining Shell
|
Grades
|
Contained
Metal
|
Resource
|
Cut-off
Grade
(gpt Au)
|
Tonnage
(,000 t)
|
Au
(gpt)
|
Ag
(gpt)
|
Au
(oz Au)
|
Ag
(oz Ag)
|
Indicated
|
>0.8
|
604
|
3.12
|
8.20
|
61,000
|
159,000
|
Inferred
|
>0.8
|
19
|
1.31
|
0.69
|
1,000
|
400
|
Calandria Norte Deposit - Mineral Resources
below constraining shell
|
Grades
|
Contained
Metal
|
Resource
|
Cut-off
Grade
(gpt Au)
|
Tonnage
(,000 t)
|
Au
(gpt)
|
Ag
(gpt)
|
Au
(oz Au)
|
Ag
(oz Ag)
|
Indicated
|
>1.5
|
131
|
2.82
|
6.30
|
12,000
|
27,000
|
Inferred
|
>1.5
|
2
|
1.71
|
2.01
|
100
|
100
|
|
Notes to Accompany
Calandria Sur MRE:
|
Summation errors may
occur due to rounding;
|
Mineral Resources are
reported within an optimized constraining shell;
|
Block matrix is 6m x
6m x 5m (length x width x height);
|
Grades are estimated
by ID3 interpolation;
|
Density was
interpolated by ID2. Blocks not populated by ID2 were
assigned the mean density 2.21;
|
Cut-off grade for MRE
varies by oxide zone (0.3 g/t Au oxide; 0.4 g/t Au transition; and
0.8 g/t Au primary zones);
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability
|
Constraining pit
parameters: (in $US)
|
|
Metal Price:
$1,400/oz Au; $18.50/oz Ag (based on 3 year rolling average
seller's prices)
|
|
Metal Recoveries: Au
(94%-oxide; 73% transition; 80% primary), Ag (88%-oxide; 78%
transition; 80% primary)
|
|
Mining Cost:
$2.50/t
|
|
Processing plus
General and Administration: $11-oxide; $11-transition;
$25-primary
|
|
Pit Slope:
45°
|
|
Notes to Accompany
Calandria Norte MRE:
|
Summation errors may
occur due to rounding;
|
Mineral Resources are
reported within, and below, an optimized constraining
shell;
|
Block matrix is 5m x
3m x 5m (length x width x height);
|
Grades are estimated
by ID3 interpolation;
|
Density was assigned
the mean density 2.41;
|
Cut-off grade used
for reporting MRE within constraining shell is 0.8 g/t
Au;
|
Cut-off grade used
for reporting MRE below constraining shell is 1.5 g/t
Au
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
Constraining pit
parameters: (in $US)
|
|
Metal Price:
$1,400/oz Au; $18.50/oz Ag (based on 3 year rolling average
seller's prices)
|
|
Metal
Recoveries: Au (80%), Ag (84%)
|
|
Mining Cost:
$2.50/t
|
|
Processing plus
General and Administration: $25
|
|
Pit Slope:
45°
|
- The previous MRE for the Las Calandrias Project was reported on
an unconstrained basis. On a like-for-like basis (all mineral
resources contained within constraining shell), increases in both
average gold grade and total contained gold ounces are reported for
Calandria Sur (+10% increase in Au grade and +21% increase in
contained gold ounces in Indicated Category). At Calandria
Norte, the 2018 MRE reports an increase of +13,000 oz
in contained ounces (+27%) in Indicated Category.
- Mineral resources at the Calandria Sur deposit are bounded to
the south by the Calandria I claim block boundary.
Calandria Sur Deposit – Resource
Comparison
Classification
|
Previous
MRE
Oxide COG >0.3 gpt
Au
Transition COG >
0.4 gpt Au
Primary COG > 0.8
gpt Au
|
September 2018
MRE
Oxide COG >0.3 gpt
Au
Transition COG >
0.4 gpt Au
Primary COG > 0.8
gpt Au
|
|
|
Tonnage
('000 t)
|
Au
(gpt)
|
Contained Au
(oz Au)
|
Tonnage
('000 t)
|
Au
(gpt)
|
Contained Au
(oz Au)
|
Increase in
Contained Au
(oz Au)
|
Indicated
|
6,755
|
1.21
|
262,000
|
7,424
|
1.33
|
318,000
|
+56,000
|
Inferred
|
228
|
1.13
|
8,500
|
1,739
|
0.73
|
41,000
|
+32,500
|
Note:
|
Previous MRE and 2018
MRE are reported at the same Au cut-off grades and within the 2018
constraining shell
|
Previous MRE reported
using 2011 Oxide Zones; 2018 MRE reported using updated 2018 Oxide
Zones
|
Calandria Norte Deposit – Resource
Comparison
Classification
|
Previous
MRE
COG > 0.8 gpt
Au
|
September 2018
MRE
COG > 0.8 gpt
Au
|
|
|
Tonnage
('000 t)
|
Au
(gpt)
|
Contained Au
(oz Au)
|
Tonnage
('000 t)
|
Au
(gpt)
|
Contained Au
(oz Au)
|
Increase in
Contained Au
(oz Au)
|
Indicated
|
366
|
4.09
|
48,000
|
604
|
3.12
|
61,000
|
+13,000
|
Inferred
|
101
|
2.14
|
7,000
|
19
|
1.31
|
1,000
|
-6,000
|
Note:
|
Previous MRE and 2018
MRE are reported at the same Au cut-off grades and within the 2018
constraining shell
|
Link to figures:
https://newdimensionresources.com/site/assets/files/13136/2018_10_calandrias_mre_update_figs.pdf
Eric Roth, New Dimension's CEO,
commented today: "I am pleased to be able to report our updated
Mineral Resource Estimate for the Las Calandrias Project, which has
shown growth even with tighter technical constraints being placed
on the outlining of mineral resource areas. And this resource
growth occurred without any potential new contributions from the
high-grade Morena vein/breccia system, for which we had
insufficient time to evaluate in detail. Significant potential
still exists at the Las Calandrias Project to expand the known
mineralization at Morena (where only the southern end has seen any
meaningful drilling), together with the nearby Despreciada-Nido
vein system (untested in the 2018 drill program).
With the arrival of the Patagonian summer field season, our
geological teams will now accelerate field activities and the
process of evaluating and ranking vein targets at both Las
Calandrias and elsewhere within our 860 square kilometre portfolio.
This field work is expected to lead to the definition of new
high-grade gold-silver targets for drill testing during
2019".
Las Calandrias Mineral Resource Estimate Authorship,
Parameters, and Methodology
The updated Mineral Resource Estimate for the Las Calandrias
Project was prepared by Mr. Paul
Daigle, associate resource geologist with AGP Mining
Consultants Inc. and an Independent Qualified Person as defined by
Canadian National Instrument NI-43-101 Standards of Disclosure
for Mineral Projects. The Mineral Resource Estimate was
completed using the following parameters:
- Mineral resources are estimated in accordance with the CIM
Mineral Resource definitions referred to in NI 43-101. This mineral
resource estimate has an effective date of 14 September, 2018 and was carried out by AGP
Mining Consultants Inc. for the Las Calandrias Project, which
includes the Las Calandrias Sur and Las Calandrias Norte
Deposits.
- The estimate was completed based on the concept of an open pit
for Las Calandrias Sur Deposit; and an open pit and possible
underground operations for Las Calandrias Norte Deposit.
- For the 2009-2012 drill campaigns, the samples were assayed at
ALS Laboratories in Mendoza, Argentina. Sample preparation included
weighing, drying, crushing of the entire sample to greater than 70%
-2mm, taking a split of 250g, and pulverizing the split to greater
than 85% passing 75microns (ALS code: PREP-31, DRY-22). Analyses
consisted of gold assays and multi-element Inductively Coupled
Plasma (ICP) analysis. Gold analyses for all samples were by fire
assay (FA) with an atomic absorption (AA) finish (ALS code:
Au-AA24). Any results over 10g Au/t were checked using a
gravimetric finish (ALS code: Au-GRA22). The 34-element ICP
analyses (ALS code: ME ICP41 package) used aqua regia digestion.
Silver grades exceeding 100 g Ag/t were checked by FA with a
gravimetric finish (ALS code: Ag-GRA21). In 2012, some samples were
analyzed for mercury using a cold-vapor AA method (ALS code:
Hg-CV41)
- For the 2018 drill program, the samples were sent to Alex
Stewart International S.A. (ASI) in San Julian, Argentina for sample preparation; and to ASI
in Mendoza, Argentina for
analysis. Sample preparation included weighing, drying, crushing of
the entire sample to greater than 80% -2mm, taking a split of 250g,
and pulverizing the split to greater than 95% passing 106 microns
(ASI code: P-1). Analyses consisted of fire assay for gold and
multi-element ICP analysis (ASI code: ICP-AR-39). The 39-element
ICP analyses used an aqua regia digest and optical emission
spectrometry (ICP-OES) finish. Gold analyses for all samples were
by FA with an AA finish (ASI code: Au4-50). Any silver values over
detection limit used FA with a gravimetric finish (ASI code:
Ag4A-50).
- AGP validated the assays in the database using the laboratory
certificates and spreadsheets from ALS and from Alex Stewart. Approximately 20% of the database
was reviewed against the certificates and no issues were
encountered.
- The quality control and quality assurance program for the New
Dimension drilling consisted of regular insertion of blanks,
duplicates and certified reference materials obtained from Geostat
Pty. Ltd., O'Connor (Perth),
Australia.
- The Las Calandrias Sur Deposit was interpolated with 147
diamond drill holes completed by previous operator, Mariana
Resources Ltd. ("Mariana") between 2009 and 2012, totalling 23,173
metres. The Las Calandrias Norte Deposit was interpolated with 51
diamond drill holes completed by Mariana and New Dimension between
2009-2012 and 2018, totalling 17,530 metres of drilling; and nine
trenches completed by Mariana in 2009.
- Gold and silver mineralization mainly occurs within a rhyolite
dome at the Calandria Sur and, within a breccia zone that cuts a
rhyolite dome in Calandria Norte. A country rock wireframe was
created surrounding both the Calandria Sur and Norte rhyolite dome
wireframes. A higher-grade core at Calandria Sur was developed
using an indicator model at a 1.0 gpt Au indicator. Mineralization
at Calandria Norte is mainly confined within the breccia zone,
striking roughly 055°Az and dipping approximately -60° to the
northwest, and varies in true thickness from 2 m to 15 m. This
breccia zone was created in Leapfrog and manually adjusted to
capture the logged breccia zone. Occurrences of gold mineralization
occur sporadically in the hanging wall and footwall of this zone,
within the rhyolite dome.
- Mariana sampled most of the Calandria Sur and Calandria Norte
drill core nominally between 0.5 and 2
m intervals. New Dimension sampled the drill core nominally
at 1 m intervals. Composite intervals
were created at an average composite length of 2.0 m.
- For the treatment of outliers in the Calandria Sur Deposit, raw
assays were capped at 28.60 gpt Au and 12.05 gpt Au; and 602.00 gpt
Ag and 208.00 gpt Ag; within the core and dome domains,
respectively. In the Calandria Norte Deposit, raw assays were
capped at 64.00 gpt Au and 93.60 gpt Ag in the breccia zone domain;
and at 9.78 gpt Au and 47.50 gpt Ag in the rhyolite dome and
country rock domain.
- Specific Gravity (SG) in the resource models was derived from a
dataset of 451 measurements. The specific gravity measurements were
carried out by Mariana using the wet/dry method. For Calandria Sur,
410 SG values were interpolated using inverse distance squared
method, from the well-distributed measurements in the deposit. Any
block not interpolated were assigned the average SG value of 2.21.
For Calandria Norte, the dataset was made up of 41 selected
measurements. Due to the low population of density data the block
model was assigned the average SG value of 2.41.
- A (3D) geological and block model was generated using Geovia
GEMS™ 6.8.1 software. Calandria Sur block model matrix size of
6 m x 6m x 5 m (width x
length x height) and was selected based on the size deemed suitable
for an open pit mining scenario. Calandria Norte block model matrix
size of 5 m x 3 m x 5 m (width x
length x height), rotated 35°counter-clockwise, and was selected
based on the size deemed suitable for both an open pit and possible
underground mining scenario.
- Spatial analysis did not produce any decent variograms due to
the high variability of the gold and silver grades in both
deposits. The grade models were interpolated using inverse distance
cubed, and validated using inverse distance squared and nearest
neighbour models.
- The interpolation was carried out in two passes with increasing
search ellipsoid dimensions. For both zones, the classification was
based nominally on the number composites used to estimate a block
and the distance to the nearest composite. Isolated Inferred blocks
within core areas of Indicated resource blocks were captured within
a wireframe and upgraded to the Indicated Category.
- In 2012, preliminary metallurgical testwork was completed on
material from the oxide, transition and primary zones of the
Calandria Sur Deposit. Testwork was carried out by ALS in
Sydney, Australia (formerly Metcon
Laboratories Pty. Ltd.). The testwork involved a
Leachwell® test to determine how amenable the material
was to a leaching process.
- Under CIM definitions, Mineral Resources should have a
reasonable prospect of eventual economic extraction. An optimized
constraining shell has been applied to capture reported Mineral
Resources. A gold price of US$
1400/oz Au and US$ 18.50/oz Ag
were used for the cut-off calculation which corresponded to three
year rolling average seller's price as of September 14, 2018. The cut-off calculation
included metallurgical recoveries based on metallurgical testwork
to date by oxide zone. In order to assess the Mineral Resources at
Calandria Sur, an in situ resource cut-off grade between 0.3 gpt Au
and 0.8 gpt Au (varies by oxide zone) has been applied for
potential material amendable to open pit extraction. For the
Mineral Resources at Calandria Norte, an in situ resource cut-off
grade between 0.8 gpt Au has been applied for potential material
amendable to open pit extraction and a cut-off grade of 1.5 gpt Au
for material below the constraining shell.
- 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 resource. It is uncertain if further
exploration will result in upgrading them to an Indicated or
Measured resource category.
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
- Rounding of tonnes as required by reporting guidelines may
result in apparent differences between tonnes, grade, and contained
metal content.
Qualified Persons Statement
The technical content of this press release has been reviewed
by Paul Daigle, P.Geo., Associate
Senior Geologist of AGP Mining. Mr. Daigle is responsible for
the Technical Report and Mineral Resource Estimate for the Las
Calandrias Project, is independent of New Dimension Resources and
is a "Qualified Person" as defined by NI 43-101.
All information relating to exploration activities has been
reviewed by Eric Roth, Chief
Executive Officer and Executive Director of New Dimension
Resources. Mr Roth holds a Ph.D. in Economic Geology from the
University of Western Australia,
is a Fellow of the Australian Institute of Mining and Metallurgy
(AusIMM), and is a Fellow of the Society of Economic Geologists
(SEG). Mr Roth has over 25 years experience in international
minerals exploration and mining project evaluation.
On Behalf of the Board of New Dimension Resources Ltd.
"Eric Roth"
___________________________
Eric Roth, Ph.D., FAusIMM
President & CEO
About New Dimension Resources
New Dimension is engaged
in the acquisition, exploration and development of quality mineral
resource properties throughout the Americas, with a focus on
precious metals. The Company's current focus is on the
discovery through drilling of new high-grade gold-silver resources
at its 100%-owned Las Calandrias, Los Cisnes and Sierra Blanca projects, all located in the
highly prospective Deseado Massif of Santa Cruz Province, southern Argentina. The Company also holds an option on
the Savant Lake gold project in
Ontario, together with an active
JV interest (with Yamana Gold) in the Domain gold project in
Manitoba.
About AGP Mining Consultants Inc.
AGP Mining
Consultants Inc. is an Ontario-based mining consulting firm
specializing in mine engineering (underground and open pit),
mineral resource estimation, metallurgical development and process
engineering, geotechnical and water resources engineering,
infrastructure and project management.
Cautionary Notes and Forward-looking
Statements
This news release contains forward-looking
information within the meaning of applicable securities
legislation. Forward-looking information is typically
identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. Such
statements include, without limitation, statements regarding the
future results of operations, performance and achievements of New
Dimension, including the timing, completion of and results from the
drill programs described in this release. Although the
Company believes that such statements are reasonable, it can give
no assurances that such expectations will prove to be
correct. All such forward-looking information is based
on certain assumptions and analyses made by New Dimension in light
of their experience and perception of historical trends, current
conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances.
This information, however, is subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking information. Important factors that could cause
actual results to differ from this forward-looking information
include those described under the heading "Risks and Uncertainties"
in New Dimension's most recently filed MD&A. New Dimension does
not intend, and expressly disclaims any obligation to, update or
revise the forward-looking information contained in this news
release, except as required by law. Readers are cautioned not to
place undue reliance on forward-looking information.
Neither the TSX Venture Exchange ("TSXV") nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
release.
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SOURCE New Dimension Resources Ltd.