Seafield Resources Ltd. (TSX VENTURE:SFF) announce further results from the ongoing 5,000-metre diamond drill program at the Company's Miraflores Deposit ("the Deposit") in the Quinchia District, Department of Risaralda, Colombia. The infill drilling program continues to return moderate to high grade mineralization in significant intervals. The Company aims to gain more confidence on the high grade veins identified within the Miraflores breccia pipe to further delineate its resource as it moves its project towards feasibility level.
-- Drill hole QM-DH-33 intersected 114.7 m of 1.89 g/t Au, including 10.6 m of 11.97 g/t Au; -- QM-DH-33 was drilled from southeast to northwest of the Miraflores breccia pipe as part of Seafield's infill drilling program aimed at improving the confidence in the Deposit's current resource. This drill hole confirms the vertical extension of mineralization previously intersected in drill hole QM-DH-32A (194 m at 1.57 g/t Au, including 26 m at 3.86 g/t Au and 6 m at 11.04 g/t Au, press released on June 7, 2012), 50 metres below of QM-DH-33. -- QM-DH-33 also confirms the extension and continuity of high grade mineralization intercepted 80 metres north in drill hole QM-DH-03 (449 m at 1.29 g/t Au, including 10 m at 2.87 g/t Au and 23.95 m at 9.18 g/t Au, press released December 2, 2010).
Seafield's Miraflores Deposit is situated in the Company's 100%-owned, 6,757-hectare, Quinchia Gold Project. Miraflores is a low sulphidation epithermal deposit located in Colombia's mineral- prolific Mid-Cauca gold belt. The Deposit's mineralization is characterized by a hydrothermal breccia pipe with free gold associated with cement materials (the matrix) and high-grade structures where gold is associated with zinc, lead, copper and iron. At surface, the breccia pipe has a drill-tested diameter of 250 metres by 280 metres. The breccia pipe widens and remains open at depth with a drill-tested vertical extent of 600 metres.
The Deposit currently hosts a NI 43-101 compliant Measured and Indicated resource of 77.8 million tonnes averaging 0.8 g/t Au for contained gold of 1.9 million ounces and an Inferred resource of 5.5 million tonnes averaging 0.6 g/t Au for 103,043 ounces of contained gold. A 0.3 g/t Au cut-off grade was used for the estimate as reported in the Company's press release on January 31, 2012.
Miraflores presents robust economics as indicated in a Preliminary Economic Assessment ("PEA") on the Deposit that was completed by SRK Consulting in Denver on April 23, 2012. The indicated economics for the Deposit include a pre-tax IRR of 50%, an NPV (8%) of $249 million and a payback period of 1.8 years. SRK considers that portions of the Miraflores gold deposit are amenable to open pit mining, while other portions are amenable to underground mining methods. The proposed mine development in the PEA was prepared to best fit Seafield's corporate strategy focused on a medium sized operation that results in solid value accretion (as measured by NPV), moderate capital usage, and manageable environmental and social programs.
20.29 million tonnes ("Mt") of materials extracted over a 14-year mine life will comprise of 6.97 Mt at 1.38 g/t Au in open pit mining (years 1-8), 5.0 Mt at 2.27 g/t Au in underground mining (years 1-10) and 8.32 Mt at 0.43 g/t Au in stockpile processing (years 10-14). At an initial throughput rate of 4,000 tonnes per day, an annual production of 71,000 ounces at a below-industry average cost of $524 per ounce of gold, the PEA was completed using a gold price per ounce of $1,500 and a recovery rate of 90% (See Company's press release dated March 26, 2012). The PEA is preliminary in nature and contains mineral resources that are not mineral reserves and do not have demonstrated economic viability. All of the Company's technical reports are available on SEDAR and the Company's website.
The assay reported in this press release represents the results from one diamond drill hole, which accounts for 550 m of a total 3,242 m drilled since January 2012 (See Figure 1).
"We are pleased that our ongoing infill drilling program continues to confirm the continuity of high-grade vein structures within Miraflores," commented Cesar Lopez, Seafield's President and CEO. "Seafield will be completing its current phase of drilling over the next quarter and begin our preparation to commence our underground drill program at the Deposit. We look forward to providing our shareholders with a steady flow of news going forward."
QM-DH-33 (See Figure 2) was completed as part of Seafield's infill drilling program at Miraflores. The Company's ongoing 5,000-metre drill program is aimed at further verifying the geometry and continuity of the high-grade structures found within the breccia. All information from the current drill program will be used to develop a more robust geological model for Miraflores' resource at the feasibility level.
Table 1 below summarizes the results of diamond drill hole QM-DH-33:
Table 1 – Drill Results:
From To Interval Au Drill Hole (m) (m) (m) (g/t) ---------------------------------------------------------------------------- QM-DH-33 31.9 39.2 7.3 0.20 and 104.3 177.9 73.6 0.64 and 185.9 300.6 114.7 1.89 including 233.0 243.6 10.6 11.97 and 322.6 345.6 23.0 0.74 and 351.6 383.2 31.6 1.40 and 388.9 407.0 18.1 0.56 and 461.1 468.5 7.4 0.38
Note: Gold grades reported are cut to 20 g/t Au for the interval 185.9 to 300.6. Hole QM-DH-33 includes a sample of 26.7 g/t Au over 2.00 m and a sample of 47.5 g/t Au over 2.00 m. Only continual intervals of mineralization above 6 metres with a cut-off grade of 0.2 g/t Au are reported.
QM-DH-33 was drilled from a collar outside of the southeastern portion of the breccia pipe and was drilled to the northwest, intersecting 114.7 m at 1.89 g/t Au, including 10.6 m at 11.97 g/t Au. This drill hole confirms the continuity and geometry of high grade mineralization in the veins and matrix inside the breccia. A previous drill hole, QM-DH-32A (press released on June 7 2012), intercepted 194 m at 1.57 g/t Au, including 26 m at 3.86 g/t Au and 6 m at 11.04 g/t Au, 50 metres below of QM-DH-33 confirming further vertical continuity of mineralization within the deposit. QM-DH-33 also confirmed the horizontal continuity of higher grade mineralization found 80 m north of QM-DH-03 (press released, December 2, 2010), which intercepted 449 m at 1.29 g/t Au, including 10 m at 2.87 g/t Au and 23.95 m at 9.18 g/t Au.
To view Figure 1 – Plan View of Miraflores Deposit, please visit the following link: http://media3.marketwire.com/docs/sff0619fig1.pdf.
To view Figure 2 – Cross Section of Miraflores Deposit, please visit the following link: http://media3.marketwire.com/docs/sff0619fig2.pdf.
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