White Gold Corp. (TSX-V:WGO) (OTC:GFRGF) (FRA:29W) is pleased to announce a Mineral Resource Estimate on the White Gold property located in Yukon, Canada.
Detailed images of the resource model and additional information can be found at http://whitegoldcorp.ca/investors/exploration-highlights/.
Jodie Gibson, P.Geo., Vice President of Exploration for the Company, commented “We are very pleased with the Mineral Resource estimate on the Golden Saddle and Arc. It provides us with a solid foundation from which we can expand the current mineral inventory in future exploration programs. Particularly exciting is the GS Main which has a remarkably consistent core at grades >3g/t Au that has been traced from surface to approximately 400m depth and is open down dip and down plunge. The Arc also remains open for expansion in all directions and our 2017 program demonstrated a subparallel zone to the Arc.
These results have been achieved with only 44,698m of drilling on the Golden Saddle and 11,911m of drilling on the Arc to date by the Company and previous owners. Combined with the numerous other known exploration targets on the property that have received minimal to no drill testing and the broad advances in our understanding of the regional geology and controls on mineralization, we believe there is significant potential to expand the current resource base and make new discoveries. Furthermore, recent investments into access and infrastructure via the Yukon Resource Gateway project continues to improve the overall economics within the district.
Resource Estimate Details
The resource estimate was conducted by Arseneau Consulting Services and is reported within the guidelines of the Canadian Securities Administration National Instrument 43-101. ACS carried out database verification, grade shell geometry, variography, and ordinary kriging exercises. A database with a total of 3,751 samples from 126 drill holes was used for the Golden Saddle and Arc areas. The Indicated and Inferred mineral resources were classified according to the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definition Standards for Mineral Resources and Mineral Reserves by Dr. Gilles Arseneau, P.Geo., of ACS, a “qualified person” as defined by NI 43-101. The Company intends to publish an updated technical report within 45 days of this news release which will include the resource estimate. The report will be available at that time on SEDAR and the Company’s website.
Indicated and Inferred resources were categorized as potentially open pit or underground minable utilizing 10m x 10m x 10m blocks at 0.5 g/t Au and 3.0 g/t Au cut-off grades, respectively, and utilizing a Whittle shell model. The Grade Tonnage Report using an Ordinary Kriging Estimate is as follows (1-5):
|GS Main||Open Pit||Indicated||0.5||11,431||2.52||925,280|
|GS Footwall||Open Pit||Indicated||0.5||864||1.24||34,560|
|GS Upper||Open Pit||Inferred||0.5||757||0.83||20,270|
(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
(2) The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(3) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
(4) The Mineral Resources in this report were estimated using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
(5) Indicated and Inferred ounces were determined using the following assumptions: gold price of US$1,400/oz, average gold recovery of 94% on the
Golden Saddle and 85% on the Arc (based on preliminary metallurgical test work), pit slope of 50 degrees, mining cost of CAN$2.50/tonne mined, processing costs of CAN$15.00/tonne milled, G&A costs of CAN$5.00/tonne milled, transportation and royalty costs of CAN$46.15/oz, and a US:CAN exchange rate of 0.77. These assumptions are subject to the completion of a detailed economic analysis and are not to be interpreted as such.
Wireframes for the Golden Saddle (GS Main and GS Footwall) and Arc were constructed to enclose mineralized zones with composited assays greater than 0.3 g/t Au over 1.5m length. The GS Main was split into 5 domains (101, 102, 103, 104, & 110) with the 110 domain consisting of a “high-grade” core within the 101 domain that was modelled on 1.5m composites greater than 3 g/t Au. The GS Footwall was split into 3 domains (201, 202, & 203), and the Arc and Arc Footwall were modelled as distinct domains.
Capping was performed on the assays using the 97th or 98th percentile values based on assays within each zone. Within the GS Main, domains 101 – 104 were capped at 10 g/t Au and the 110 domain was capped at 18 g/t Au. All domains within the GS Footwall were capped at 7 g/t Au and the Arc was capped at 5 g/t Au.
A block model encompassing all zones was constructed by ordinary kriging using Dassault Systems GEMS software. The model was estimated using 10m x 10m x 10m blocks and grades were estimated in three passes. Pass 1 and 2 were based on variography and had expanding ranges from 50-60m for pass 1 and 110 – 130m for pass 2. Pass 3 estimated blocks that had not been estimated during pass 1 or 2 but were pierced by drill holes. Any blocks estimated during pass 1 by at least three drill holes within a 50m radius were classified as Indicated and all other estimated blocked were classified as Inferred.
Mineral Resources on both the Golden Saddle and Arc are potentially amenable to open pit mining methods. Any mineralized blocks that were not within the pit shells but at a >3g/t cut-off were considered potentially amenable to underground mining methods. All tonnage, grade, and contained metal content estimates have been rounded. Rounding may result in apparent summation difference between tonnage, grade, and contained metal content.
Mineralization on portions of both the Golden Saddle and Arc is known to extend beyond the limits of the current resource estimate, however, the mineralization in these areas does not currently meet the criteria to be classified as Mineral Resources. Based on drilling in these areas and current geologic models this includes an estimated 7 – 10 million tonnes grading between 1 – 1.5 g/t Au. The reader should be cautioned that the potential quantity and grade is conceptual in nature; there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Golden Saddle Deposit
Within the Golden Saddle, the resource estimate was conducted on three zones, the GS Main; GS Footwall, and GS Upper. Both the GS Main and GS Footwall trend NE-SW and dip to the NW at approximately 55 degrees with mineralization occurring along faults, fractures, and breccia zones in an overall normal to strike-slip structural regime. The GS Upper consists of narrow, discontinuous, zones of mineralization intercepted in drilling above the GS Main and appear to be associated with high angle structures subparallel to lithology in the Golden Saddle. Together, the zones define mineralization over 900m strike length and up to 400m down dip. Mineralization is open along strike and down dip/plunge on both zones.
The GS Main is the most significant in terms of estimated ounces and overall grade; containing approximately 96% of the Indicated ounces within the overall resource. Furthermore, the 101-110 domain is specifically important as it encompasses the core of mineralization within the GS Main; can be consistently be traced from surface to over 400m depth; defines an overall northly plunging ore body; and is open and appears to the increasing in grade with depth. This is highlighted by the grade sensitivity on the GS Main, where over 95% of the contained Indicated ounces are within a cut-off grade of >1 g/t and approximately 57% are within a cut-off grade of >3g/t Au.
|GS Main – Open Pit – Mineral Resource Estimate Grade Sensitivity|
(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
Future work on the Golden Saddle in 2018 will focus on the high-grade core of the GS Main and aggressively drill test it with step-outs down dip and down plunge. Additional detailed metallurgical testing will also be performed on the Golden Saddle and an oxide model will be prepared to assess the potential heap leachability of the Golden Saddle mineralization. A detailed exploration plan and finalized budget for the 2018 program on the White Gold property regional exploration portfolio will be reported in due course.
The Arc is located approximately 400m south of the Golden Saddle and consists of two zones, the Arc Main and Arc Footwall zones. Both zones trend E-NE and dip to the north at approximately 50 degrees. Mineralization at the Arc has been defined over 1,200m in strike length and up to 400m down dip with mineralization open along strike and down dip. Based on historic metallurgical testing(6) and with only limited drilling performed to date, only a small portion of the mineralized zone meets the criteria to be classified as a Mineral Resource at this point in time. Future work to assess the potential economic viability of the Arc will include detailed metallurgical testing and sensitivity analyses using different gold prices, gold recoveries and potentially, mining and processing methods along with additional drilling.
(6) See Underworld Resources News Release UW2010-NR1 dated Jan. 5, 2010 and available on SEDAR
The analytical work for the 2017 program was performed by Bureau Veritas Commodities Canada Ltd., an internationally recognized analytical services provider, at its Vancouver, British Columbia laboratory. Sample preparation was carried out at its Whitehorse, Yukon facility. All RC chip and diamond core samples were prepared using procedure PRP70-250 (crush, split and pulverize 250 g to 200 mesh) and analyzed by method FA430 (30g fire assay with AAS finish) and AQ200 (0.5g, aqua regia digestion and ICP-MS analysis). Samples containing >10g/t Au were reanalyzed using method FA530 (30g Fire Assay with gravimetric finish).
The reported work was completed using industry standard procedures, including a quality assurance/quality control (“QA/QC”) program consisting of the insertion of certified standards, blanks, and field duplicates into the sample stream. Additionally, historic QA/QC data and methodology on the White Gold property were reviewed and are summarized in the “Independent Technical Report for the White Gold Project, Dawson Range, Yukon Canada” by Dr. Gilles Arseneau, P.Geo. dated September 15, 2017 (the “Technical Report”) and available on SEDAR. The qualified persons detected no significant QA/QC issues during review of the data.
Jodie Gibson, P.Geo. and Vice President of Exploration for the Company is a “qualified person” as defined under NI 43-101, and has reviewed and approved the content of this news release. For further information regarding the White Gold property, please refer to the Technical Report available on SEDAR at www.sedar.com.
About White Gold Corp.
The Company owns a portfolio of 19,438 quartz claims across 30 properties covering over 390,000 hectares representing approximately 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 Indicated and 262,220 Inferred ounces of gold. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which borders sizable gold discoveries including the Coffee project owned by Goldcorp Inc. and Western Copper and Gold Corporation’s Casino project. The Company has outlined an aggressive exploration plan to further explore its properties.
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