East Santa Cruz Initial Resource Estimate
29 August 2007 - 5:00PM
UK Regulatory
HIDEFIELD GOLD PLC
INITIAL RESOURCE ESTIMATE AT EAST SANTA CRUZ, ARGENTINA
ADOPTION OF NEW PROJECT NAME
Hidefield Gold plc ("Hidefield" or the "Company", HIF:AIM) is pleased to
confirm the receipt of an initial report on the mineral resource estimate for
the Company's East Santa Cruz gold project in Southern Argentina.
This report confirms that drilling to date has demonstrated a mineral resource
of 1,214,000 tonnes at 7.7 gpt gold for 301,600 ounces of gold estimated using
a high grade cut of 90 gpt gold.
This mineral resource estimate was carried out for the Company by Resource
Evaluations Pty. Ltd. of Perth, Australia, an independent consultant engaged
for the purpose of completing the report, and was prepared in compliance with
the Australasian Code for Reporting of Mineral Resources by the Joint Ore
Reserves Committee (JORC).
The mineral resource estimate includes Indicated plus Inferred categories
distributed among six vein sets all located in the La Paloma and Martinetas
sectors of the project area and is contained within 1,214,000 tonnes with an
average grade of 7.73 gpt gold (9.82 gpt gold and 383,400 ounces gold if no
high grade cut is applied).
Distribution of the resource is summarised in the following table.
East Santa Cruz Project
Indicated Inferred Total Mineral Resource
Type Tonnes Au Au Tonnes Au Au Tonnes Au Au
T gpt Ounces T gpt Ounces T gpt Ounces
Sulphuro Vein 613,000 8.0 156,600 117,000 10.3 39,000 730,000 8.3 195,600
Arco Iris Veins 250,000 4.1 32,700 250,000 4.1 32,700
Coyote Norte 19,000 22.8 13,600 24,000 12.7 9,900 43,000 17.1 23,500
Veins
Coyote Sur Veins 59,000 10.6 20,100 6,000 12.4 2,400 65,000 10.7 22,500
Armadillo Veins - - - 66,000 5.9 12,500 66,000 5.9 12,500
Cerro Oro Veins - - - 60,000 7.7 14,800 60,000 7.7 14,800
Total 690,000 8.6 190,300 524,000 6.6 111,200 1,214,000 7.7 301,600
Note: Upper and lower cut-off grades of 90.0 and 1.0 gpt gold respectively; no
minimum thickness.
The mineral resource estimate is based upon the results from 123 surface
diamond core holes totaling 14,167 metres, three reverse circulation drill
holes totaling 374 metres and surface trenches. The drill holes were typically
spaced on 25 metre centres for Indicated mineral resources and 25 by 50 metre
centres for the Inferred mineral resource category.
Approximately 65 per cent. of the mineral resource is contained within the
Sulfuro vein at La Paloma which has an average thickness of approximately 3
metres and has been tested for a strike length of 800 metres and maximum
vertical range of 160 metres. This deposit remains open in both strike
directions and at depth. The Coyote Norte and Sur veins at Martinetas contain
high gold grades across narrow widths within three north plunging ore shoots
50-100 metres long; the oreshoots are delimited along strike but open down
plunge. The other veins making up the East Santa Cruz resource have had limited
drilling and remain open for potential mineral resource expansion.
PROJECT NAME CHANGE
The Company is pleased to announce that in recognition of the rapid advancement
of the East Santa Cruz gold project, the project is to be renamed "Don
Nicolas". Henceforth the project will be referred to as "Don Nicolas" and
initially will comprise the "La Paloma" and "Martinetas" sectors of the
property.
The project's new name has been selected in respectful recognition of Senor
Nicolas Urricelqui, the former owner of the Company's La Paloma Estancia, one
of three large ranches totaling approximately 70,000 hectares in size that the
Company now owns as freehold land. Senor Urricelqui is a lifetime resident of
the region, a prominent and much respected local citizen and enthusiastic
supporter of the Company's activities in the project area and we are honoured
to have been granted permission to use the name "Don Nicolas" for the Company's
flagship project in Argentina.
ECONOMIC SCOPING STUDY & PHASE III DRILL PROGRAMME
The Company is pleased to confirm that the economic scoping study on the Don
Nicolas gold project which had been delayed pending completion of the mineral
resource estimate referred to in this announcement is now anticipated to be
completed and delivered during October.
The Company is continuing to pursue an active field programme at the Don
Nicolas gold project which includes prospecting, mapping, sampling and
trenching of the extensive vein systems in both the La Paloma and Martinetas
sectors of the project area. A Phase III drill programme designed to expand
gold resources in the veins subject to past work as well as to test other
unexplored vein targets with promising surface indications elsewhere within the
project area, is scheduled to commence in late September.
The Don Nicolas gold project in East Santa Cruz comprises twenty seven
exploration and development licences covering approximately 203,000 hectares
and freehold ownership of three ranches comprising approximately 70,000
hectares covering the principal La Paloma and Martinetas prospect areas. The
licenses cover extensive epithermal gold vein systems with a collective strike
length of more than 100km of which only approximately 2km has so far been
explored in the Company's earlier drill programmes at La Paloma and Martinetas.
Hidefield's chairman, Kenneth Judge commenting on the mineral resource
statement said "We are obviously delighted with the gold resources now
confirmed at Don Nicolas. This mineral resource has been developed from drill
campaigns on only the La Paloma and Martinetas sectors of the project area
which were undertaken following the Company's acquisition of the project in
early 2006.
"We are confident that ongoing development of the veins drilled to date at La
Paloma and Martinetas, and exploration of the extensive untested targets
throughout our large property, will continue to expand and create the project
resource base capable of supporting a viable mining operation at Don Nicolas."
John Prochnau BSc (Mining Engineering), MSc (Geology), Hidefield's Chief
Executive Officer, has reviewed and approved the content of this announcement.
Paul Payne, a principal and employee of Resource Evaluations Pty. Ltd, was
responsible for compiling the mineral resource estimate referred to in this
announcement and has consented to the inclusion of the resource statement
information reported in this announcement. Mr. Payne is a "Competent Person" as
defined in the 2004 edition of the "Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Resources".
ABOUT HIDEFIELD
Hidefield is a gold company with a focus on the acquisition and development of
highly prospective projects in North and South America. The Company has a
diverse portfolio of projects, those of which in South America are directly
held as are the projects in Alaska, while those in Canada, Nevada and Arizona
are held in independent, self-funded associate companies.
Hidefield's substantial direct gold project interests are principally in
Argentina where the Company is actively exploring the advanced stage East Santa
Cruz gold project in Santa Cruz Province and operates in joint venture with
Minera Sud Argentina S.A. with which it is currently exploring a number of gold
exploration licenses in the Patagonian provinces of Santa Cruz, Chubut, and Rio
Negro. In Brazil the Company is focused on the evaluation of the advanced stage
Cata Preta gold project near the historic city of Ouro Preto in the productive
Quadrilatero Ferrifero region of Minas Gerais state.
In Alaska Hidefield has a 60% interest in the Golden Zone and South Estelle
mineral projects and an option to earn up to 100% interest, subject to a 2.5%
NSR, by making a series of staged cash, share and property expenditures. The
Golden Zone property is located 240 km north of Anchorage and contains a
measured and indicated resource of approximately 253,000 ounces of gold,
1,180,000 ounces of silver and 6,114,000 pounds of copper. The South Estelle
property now in joint venture with International Tower Hill Mines Ltd is
located approximately 175 km northwest of Anchorage and 230 km southwest of the
Golden Zone project and adjoins Kennecott's Whistler copper-gold property.
For more information on Hidefield go to www.hidefieldgold.com
For further information on this release, please contact:
Hidefield Gold Plc + 44 773 300 1002
Ken Judge, Chairman + 44 20 7590 5503
Investor Relations
Paul Ensor
Hanson Westhouse Limited (Nomad) + 44 113 246 2610
Tim Feather / Matthew Johnson
Landsbanki Securities (UK) Limited (Broker) + 44 20 7426 9000
Tom Hulme
Appendix
Glossary of terms
"Au" Gold
"gpt" grammes per tonne
"high grade cut" all values above a specified grade excluded from resource
calculation
"indicated an `Indicated Mineral Resource' is that part of a Mineral
resources" Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated
with a reasonable level of confidence. It is based on
exploration, sampling and testing information gathered
through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely
enough for continuity to be assumed.
"inferred an `Inferred Mineral Resource' is that part of a Mineral
resources Resource for which tonnage, grade and mineral content can be
estimated with a low level of confidence. It is inferred from
geological evidence and assumed but not verified geological
and/or grade continuity. It is based on information gathered
through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes which may
be limited or of uncertain quality and reliability.
"mineral a `Mineral Resource' is a concentration or occurrence of
resource" material of intrinsic economic interest in or on the Earth's
crust in such form, quality and quantity that there are
reasonable prospects for eventual economic extraction. The
location, quantity, grade, geological characteristics and
continuity of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and knowledge.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories.
END
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