TORONTO, April 27, 2016 /CNW/ - Roxgold Inc. ("Roxgold" or
"the Company") (TSX.V: ROG) is pleased to announce the results of a
maiden mineral resource statement for the QV1 target on the
Yaramoko permit where the Company is currently constructing the
Yaramoko Gold Project with anticipated completion in June this
year. The resource estimate was undertaken by SRK Consulting
(Canada) Inc. ("SRK") of
Toronto and is based on 114 core
boreholes totalling approximately 27,000 metres of drilling and has
been prepared in accordance with National Instrument 43-101
("43-101") Standards of disclosure for Mineral Projects.
Highlights:
- Inferred mineral resource estimated at 563,000 tonnes at 12.14
grams of gold per tonne gold ("g/t Au") for 220,000 ounces of gold
at a cut-off grade of 5.0 g/t Au
- QV1 structure remains open down plunge
- Further exploration potential at QV Prime ("QV'")and foot wall
("FW") zone
"We are pleased to be able to show another milestone in terms of
growth on the Yaramoko permit," commented John Dorward, President and CEO of Roxgold. "As
we continue to focus on delivering the Yaramoko Gold Project on
time and on budget, with first gold scheduled in June, we are
encouraged to have a second mineral resource on the Yaramoko permit
that highlights the prospectivity of the permit and Roxgold's
potential for organic growth."
TABLE 1 - MAIDEN
MINERAL RESOURCE STATEMENT, QV1 GOLD DEPOSIT, YARAMOKO PROJECT,
SRK Consulting (Canada) Inc., April 22, 2016
|
|
Inferred Mineral
Resources
|
Domain
|
Category
|
Quantity
(t)
|
Grade
Au
(g/t)*
|
Contained
Metal
Au
(oz)
|
QV1
|
Inferred
|
474,000
|
13.13
|
200,000
|
FW
|
Inferred
|
40,000
|
7.49
|
10,000
|
QV'
|
Inferred
|
49,000
|
6.40
|
10,000
|
Total
|
Inferred
|
563,000
|
12.14
|
220,000
|
*Mineral resources are not
mineral reserves and have not demonstrated economic viability. All
figures have been rounded to reflect the relative accuracy of the
estimates. Underground mineral resources are reported at a cut-off
grade of 5.0 gpt gold assuming: metal price of US$1,200 per ounce
of gold, mining cost of US$90 per tonne, G&A cost of US$7.20
per tonne, processing cost of US$20.70 tonne, process recovery of
96 percent.
|
Mineral Resources Estimation parameters and
methodology
The reported mineral resources have been estimated using a
geostatistical block modelling approach informed by capped
composited gold assay data collected in core boreholes. Resource
domains were constructed as explicit wireframes using interval
selections of assay and lithology data. The same intersections used
for generating the wireframes were used for the mineral resource
evaluation.
The evaluation of the mineral resources involved the following
steps:
- Database compilation and verification;
- Generation of three-dimensional resource structures and
verification;
- Data conditioning (compositing and capping), statistical
analysis, and variography;
- Selection of estimation strategy and estimation
parameters;
- Block modelling and grade estimation;
- Validation, classification, and tabulation;
- Assessment of "reasonable prospects for economic extraction"
and selection of reporting assumptions; and
- Preparation of the Mineral Resource Statement.
The exploration database up to March 11,
2016 comprises of 114 core boreholes (27,215 metres),
drilled by Roxgold since 2013. SRK reviewed the analytical quality
control data generated by Roxgold for the data informing the
mineral resource model and found no material flaws. SRK is
satisfied that the exploration work carried out by Roxgold has been
conducted in a manner consistent with generally recognized industry
best practices and, therefore, the exploration drilling data are
sufficiently reliable for the purpose of supporting a mineral
resource evaluation.
Geological modelling
The shear zone and mineralized structures/quartz veins were
constructed using interval selection. Two shear zones were
modelled: QV1 and QV' (QV prime). In addition, three gold
mineralized structures were modelled within the QV1 shear zone: QV1
Main, QV1 HW, and FW. The average thickness of the gold
mineralization at QV1 Main varies from less than one metre to more
than 18 metres. The mineral resources extend from the surface to a
depth of about 300 metres below the surface, and the gold
mineralization remains open along plunge.
Four main lithological units are present in this area of the
property: mafic volcanic rock, granite, granodiorite, and diabase.
The dominant country rock consists of mafic volcanic rock, fine
grained and typically massive away from deformation zones. All
geological units, including the QV1 shear zone, are cross-cut by a
late ~40 metre wide diabase dike.
At QV1, gold mineralization is primarily associated with
quartz-carbonate veins striking northwest within a moderately
dipping brittle-ductile shear zone. Gold is also hosted in quartz
veins and chlorite filled fractures within brittle deformation
zones. The QV1 shear zone strikes northwest (295 to 315º) and dips
steeply to the north-northeast (60 to 70°). Kinematic indicators
suggest dominant dextral with a minor component of reverse movement
in QV1.
At QV', gold mineralization is hosted in millimetre- to
centimetre-wide extensional quartz veins and quartz-chlorite
veinlets, often associated with carbonate and green mica
alteration. Higher grade gold mineralization within QV' is
clustered around a west-northwest striking steeply dipping shear
zone.
Modelling Parameters
Borehole gold assay data inside the resource domains were
extracted and examined for determining an appropriate composite
length. A modal composite length of 1.5 metres was applied to all
data, honouring the boundary of the lower grade shear zone and the
higher grade structure sub-domains.
SRK evaluated the spatial distribution of the gold
mineralization using variograms and correlograms of composite data
as well as their normal score transform. A total of four spatial
metrics were considered to infer the correlation structure to be
used in the grade estimation. Continuity direction is primarily
based on orientation of the Main domain. Variogram calculation
considered sensitivities on orientation angles prior to finalizing
the correlation orientation.
Grade Interpolation
Gold grade was estimated into a block model using ordinary
kriging and three passes informed by capped composites. The first
pass was the most restrictive in terms of search radii and number
of boreholes required. Successive passes usually populated areas
with less dense drilling, using relaxed parameters with generally
larger search radii and less data requirements. SRK assessed the
sensitivity of the gold block estimates to changes in minimum and
maximum number of data, use of octant search and the number of
informing boreholes. Results from these studies show that the model
is relatively insensitive to the selection of the estimation
parameters and data restrictions. See table 2 for a summary of the
grade estimation strategy.
Table 2:
Estimation Strategy
|
Axis
|
1st
Pass
|
2nd
Pass
|
3rd
Pass
|
Search
increment
|
100% Sill
|
100% Sill
|
300% Sill
|
Interpolation
method
|
OK
|
OK
|
OK
|
Octant
search
|
Yes
|
Yes
|
No
|
Search
Volume
|
|
|
|
|
X (metres)
|
110
|
110
|
330
|
|
Y (metres)
|
70
|
70
|
210
|
|
Z (metres)
|
20
|
20
|
60
|
Minimum number of
octants
|
5
|
3
|
-
|
Minimum number of
composites per octant
|
1
|
1
|
-
|
Maximum number of
composites per octant
|
10
|
10
|
-
|
Minimum number of
composites
|
6
|
6
|
1
|
Maximum number of
composites
|
10
|
12
|
12
|
Maximum number of
composites per borehole
|
4
|
4
|
-
|
Capping
The impact of gold outliers was examined on composite data using
log probability plots and cumulative statistics. Composites
affected by capping were further examined in three dimensions to
validate their location and relevance relative to the entire
population. For reporting a capping value of 60 g/t Au was selected
for the QV1 structure, the results of this analysis are summarized
in table 4.
TABLE 3 -
SENSITIVITY OF QV1 MAIN ZONE QUANTITIES AND GRADE ESTIMATES TO
CAPPING*
|
|
QV1 Capping
sensitivity
|
capping value
Au (g/t)
|
Cut-off grade
Au (g/t)
|
Quantity
(t)
|
Grade
Au
(g/t)
|
Contained
Metal
Au
(oz)
|
60
|
3.00
|
656,000
|
10.59
|
223,000
|
4.00
|
560,000
|
11.81
|
213,000
|
5.00
|
474,000
|
13.13
|
200,000
|
100
|
3.00
|
659,000
|
11.64
|
246,000
|
4.00
|
564,000
|
13.03
|
236,000
|
5.00
|
480,000
|
14.52
|
224,000
|
150
|
3.00
|
661,000
|
12.05
|
256,000
|
4.00
|
565,000
|
13.51
|
245,000
|
5.00
|
481,000
|
15.09
|
233,000
|
uncapped
|
3.00
|
663,000
|
14.34
|
306,000
|
4.00
|
568,000
|
16.14
|
295,000
|
5.00
|
485,000
|
18.14
|
283,000
|
*
|
The reader is
cautioned that the figures in this table should not be misconstrued
with a Mineral Resource Statement.
The figures are only presented to show the sensitivity of the block
model estimates to the selection of a cut-off grade.
Figures are rounded to reflect the accuracy of the
estimate.
|
Mineral Resource Classification
Block model quantities and grade estimates were classified by
Sébastien Bernier, PGeo (APGO #1847) according to the CIM
Definition Standards for Mineral Resources and Mineral
Reserves (May 2014). Mineral
resource classification is typically a subjective concept, and
industry best practices suggest that resource classification should
consider the quantity and quality of exploration data supporting
the estimates, the confidence in the geological continuity of the
mineralized structures, the geostatistical confidence in the
tonnage and grade estimates, and the continuity at the reporting
cut-off grade. Appropriate classification criteria should aim at
integrating these concepts to delineate regular areas at a similar
classification.
SRK is satisfied that the geological model constructed for the
QV1 gold project honors the current geological information and
knowledge. The location of the samples and the analytical data are
sufficiently reliable to support resource evaluation and do not
present a risk that should be taken into consideration for
classification. The mineral resource model is informed by data from
core boreholes drilled with pierce points generally spaced
approximately 50 metres apart. The controls on the distribution of
the gold mineralization are sufficient to infer reasonable
continuity of the gold mineralization between sampling points
within the meaning of CIM Definition Standards for Mineral
Resources and Mineral Reserves (May
2014)
Next Steps
The disclosure of a maiden mineral resource statement for the
QV1 gold deposit is not material to Roxgold. As a result, no
technical report will be filed in respect of the maiden mineral
resource at the QV1 deposit. Roxgold remains committed to bringing
the Yaramoko Gold Project into production during Q2 2016 and
expects to update the technical disclosure of the project during Q1
2017. The new technical report will summarize the relevant
technical information about the new Yaramoko mine, including the
potential impact of new mineral resources delineated at the QV1
gold deposit. Exploration drilling at QV1 will target the down
plunge extensions with potential to improve and expand the mineral
resources delineated to date. There is no guarantee that the
additional drilling will be successful at expanding the mineral
resources.
Qualified Persons and Additional Information
Block model quantities and grade estimates were classified by
Sébastien Bernier, PGeo (APGO #1847) according to the CIM
Definition Standards for Mineral Resources and Mineral
Reserves (May 2014). All other scientific and technical
information contained in this press release has been prepared under
the supervision of, and verified by, Ben
Pullinger P.Geo, Vice President Exploration for
Roxgold, a "qualified person" within the meaning
of 43-101.
For a summary of the quality assurance and quality control
measures relating to the foregoing disclosure, as well as the
material results of surveys and investigations regarding the QV1
deposit, as well as any known legal, political, environmental or
other risks that could materially affect the potential development
of this target, please refer to the final short form prospectus of
Roxgold dated February 26, 2016, the
press release of Roxgold dated March 15,
2016 and the annual information form of Roxgold dated
April 5, 2016, each available on
SEDAR at www.sedar.
Management Appointment
The Company is pleased to announce the appointment of
Tania Shaw as Director, Investor
Relations and Communications effective May
2, 2016. Tania will be responsible for executing an Investor
Relations program that will support the transition of Roxgold from
a company in the development stage, to a producer poised to
continue to deliver shareholder value.
Tania brings 10 years of experience in Investor Relations and
Communications. Most recently, Ms. Shaw held positions in both
capacities at Primero Mining, and previously was part of the
Investor Relations team at Detour Gold. Tania holds a CPIR
designation (Certified Professional Investor Relations) and is a
member in good standing of CIRI (Canadian Investor Relations
Institute).
"I am pleased to welcome Tania to the Roxgold team," commented
John Dorward, President and CEO of
Roxgold Inc. "The Company is at a stage where clear and timely
communications to our shareholders and stakeholders is crucial, and
I am delighted to have strengthened our management team by bringing
on board an Investor Relations professional with the experience to
manage a strategic and effective Corporate Communications
program."
For an image related to today's press release please click on
the following link
(http://www.roxgold.com/i/maps/2016-04-27_nrm-rog-p6pbdx.jpg)
Photo Gallery
Shareholders are encouraged to follow the progress of the
Yaramoko Gold Project in our Photo Gallery on our website at
www.roxgold.com
About Roxgold
Roxgold is a gold exploration and development company with its
key asset, the high grade Yaramoko Gold Project, located in the
Houndé greenstone region of Burkina
Faso, West Africa. The
Company is currently in construction and expects to be producing
gold by Q2, 2016. Roxgold trades on the TSX Venture Exchange under
the symbol ROG and as part of the Nasdaq International Designation
program with the symbol OTC: ROGFF.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release."
Forward-Looking Information
This news release contains forward-looking information. Forward
looking information contained in this new release includes, but is
not limited to, the mineral resource estimate at the QV1 deposit,
future exploration and development plans for the Yaramoko Gold
Project and other exploration targets underlying the Yaramoko
permit, and the future preparation and timing of any technical
reports to be prepared by the Company in respect thereof.
These statements are based on information currently available to
the Company and the Company provides no assurance that actual
results will meet management's expectations. In certain cases,
forward-looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Forward-looking information contained
in this news release is based on certain factors and assumptions
regarding, among other things, the estimation of mineral resources
and mineral reserves, the realization of resource estimates and
reserve estimates, gold metal prices, the timing and amount of
future exploration and development expenditures, the estimation of
initial and sustaining capital requirements, the estimation of
labour and operating costs, the availability of necessary financing
and materials to continue to explore and develop the Yaramoko Gold
Project and other targets underlying the Yaramoko permit in the
short and long-term, the progress of exploration and development
activities, the receipt of necessary regulatory approvals,
availability of financing, and assumptions with respect to currency
fluctuations, environmental risks, title disputes or claims, and
other similar matters. While the Company considers these
assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include: changes in market conditions, unsuccessful exploration
results, changes in the price of gold, unanticipated changes in key
management personnel and general economic conditions. Mining
exploration and development is an inherently risky business.
Accordingly, actual events may differ materially from those
projected in the forward-looking statements. This list is not
exhaustive of the factors that may affect any of the Company's
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
the Company's forward-looking statements. The Company does not
undertake to update any forward-looking statement that may be made
from time to time by the Company or on its behalf, except in
accordance with applicable securities laws.
SOURCE Roxgold Inc.