TIDMHGM
RNS Number : 2244E
Highland Gold Mining Limited
05 May 2017
HIGHLAND GOLD MINING LIMITED
05 May 2017
Updated Resource and Reserve Estimates for MNV
Highland Gold Mining Limited ("Highland Gold" or the "Company",
AIM: HGM) is pleased to announce the results of updated
JORC-compliant Mineral Resource and Ore Reserve estimates for its
Mnogovershinnoye (MNV) mine, conducted by Micon International Co
Limited.
The Mineral Resource and Ore Reserve estimates take into account
data from the extensive near-mine exploration programme conducted
at MNV in 2016, which included over 14,000 metres of diamond
drilling. The data supports the extension of MNV's life of mine to
2022, as announced earlier this year.
Total Ore Reserves increased to 500,400 oz, compared to 245,618
oz previously estimated to remain from the last reserve audit
conducted in 2012 and reported in the Company's 2016 Annual
Report.
Mineral Resources of the Mnogovershinnoye Gold Deposit
in accordance with the JORC Code (2012) as of 01 January
2017
Tonnage Average Gold Gold
(kt) Grade (kg) (oz)
(g/t
Au)
Indicated 2,339 7.3 17,091 549,400
Inferred 341 7.5 2,560 82,320
Total (Indicated
+ Inferred) 2,680 7.3 19,651 631,720
Ore Reserves of the Mnogovershinnoye Gold Deposit
in accordance with the guidelines of the JORC Code (2012) as of
01 January 2017
Ore Grade Gold Gold
(kt) (g/t (kg) (oz)
Au)
Probable
Open Pit 113 5.7 647 20,800
Underground 2,871 5.2 14,916 479,600
Total 2,984 5.2 15,563 500,400
Mineral Resources and Ore Reserves are diluted and based upon a
gold price of US$1,200 per ounce. The cut-off grade for open pit
mining is 1 g/t Au and for underground mining is 2 g/t.
Mineral Resources were reduced to 631,720 oz, compared to the
1.6 million oz reported in the 2016 Annual Report, as a result of
employing a different approach to modelling and a higher cut-off
grade. This was done with the goal of optimising resources under
both Russian and international standards, and therefore omits
resources with grades of lower than 2 g/t for underground
mining.
Due to the geological complexity of mineralisation, Micon has
exercised further caution by assigning Mineral Resources to the
Indicated and Inferred categories, and Ore Reserves to the Probable
category.
The Company is carrying out additional surface and underground
exploration at several of the ore bodies at MNV in 2017 with a view
toward further increase reserves and extending the life of mine
beyond 2022. In addition, 4,300 m of drilling is planned at the
satellite Bear ore zone to the north this year. This exploration
programme has the potential to upgrade the current MNV Mineral
Resources and Reserves.
The resource estimate does not include MNV's historic rock waste
dumps, which the Company has been evaluating separately on an
ongoing basis. Since the beginning of 2016, the Company has taken
about 400k tonnes of ore from the rock dumps, with an average grade
of 1.1 g/t, for processing at the MNV mill.
Information contained in this release has been taken from the
"Independent Expert's Report on the Resources and Reserves of the
Mnogovershinnoye Gold Deposit, Khabarovsk Region, Russian
Federation", prepared in compliance to the JORC Code 2012 by a
panel of qualified industry experts of Micon International Co
Limited. The report has been signed off by Mr Stanley Bartlett, who
has sufficient experience relevant to the style of mineralisation
and type of deposit under consideration to qualify as Competent
Persons as defined in the 2012 Edition of the "Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
FOR FURTHER INFORMATION PLEASE CONTACT:
Highland Gold John Mann, Head of Communications
+ 7 495 424 95 21
Duncan Baxter, Non-Executive Director
+ 44 (0) 1534 814 202
Numis Securities Limited John Prior, James Black
(Nominated Adviser and Broker) Paul Gillam
+44 (0) 207 260 1000
Peat & Co Charlie Peat
(Joint Broker) +44 (0) 207 104 2334
***
Glossary
JORC - Widely accepted standard for reporting mineral resources
and ore reserves established by the Australasian Joint Ore Reserves
Committee.
Mineral Resource - concentration or occurrence of solid material
of economic interest in or on the Earth's crust in such form, grade
or quality and quantity that there are reasonable prospects for
eventual economic extraction. The location, quantity, grade or
quality, continuity and other geological characteristics of a
Mineral Resource are known, estimated or interpreted from specific
geological evidence and knowledge, including sampling.
Inferred Mineral Resource- that part of a Mineral Resource for
which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed,
but not verified, geological and grade continuity. The estimate is
based on limited information and sampling gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes.
Indicated Mineral Resource - that part of a Mineral Resource for
which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably
assumed.
Measured Mineral Resource- that part of a Mineral Resource for
which quantity, grade or quality, densities, shape, and physical
characteristics are so well established that they can be estimated
with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning
and evaluation of the economic viability of the deposit. The
estimate is based on detailed and reliable exploration, sampling
and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes that are spaced closely enough to confirm both geological and
grade continuity.
Ore Reserve - the economically mineable part of a Measured or
Indicated Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on
mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction can be justified. A Mineral Reserve includes diluting
materials and allowances for losses that may occur when the
material is mined.
Probable Ore Reserve - the economically mineable part of an
Indicated and, in some circumstances, a Measured Mineral Resource
demonstrated by at least a Preliminary Feasibility Study. This
Study must include adequate information on mining, processing,
metallurgical, economic, and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can
be justified.
Proven Ore Reserve - is the economically mineable part of a
Measured Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on
mining, processing, metallurgical, economic, and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction is justified.
This information is provided by RNS
The company news service from the London Stock Exchange
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