Canamex Resources Announces Initial Resource Estimate for Bruner: 10.3M metric tonnes at average grade of 0.72gpt gold
Canamex Resources Corp. (TSXV:CSQ) reported an indicated mineral resource of 10.3 million metric tonnes at an average grade of 0.72 gpt gold, containing 239koz of gold, with an inferred mineral resource of 2.45 million metric tonnes at an average grade of 0.77 gpt Au containing 61koz of gold in the Historic Resource Area and Penelas zones at the Bruner Gold Project in Nye County, Nevada.
According to Canamex President, Greg Hahn, “This resource estimate and the enhanced understanding gained in its development will be the foundation for a continued exploration program designed to expand in open directions the three deposits identified and to upgrade the inferred resource to the level of indicated resource.” He also said that in 2015, the company will focus on filling in the undrilled gaps in their database, and testing the extensions by drilling.
The 3,500-acre Bruner Gold Property lies approximately 45 miles northwest of the Kinross Gold (TSX:K,NYSE:KGC) and Barrick Gold (TSX:ABX,NYSE:ABX) joint venture, Round Mountain Mine, which has produced more than 10 million ounces of gold over a thirty year period. Historic production at the Bruner Gold property includes approximately 100,000 ounces at an average grade of 0.56 ounces per ton.
As quoted in the press release:
In order to establish a reasonable prospect of economic extraction in an open pit/heap-leach context, the mineral resources presented above are reported within a constraining pit generated at a gold price of US$1350/oz Au; a silver price of US$15/oz Ag; metallurgical recoveries of 90% for gold and 10% for silver; mining cost of US$2.40/tonne of material mined; and process and G&A costs of US$4.67/tonne of material processed. Additional pit factors include a pit slope of 50 degrees.
The resources are reported within the pit shell above an external cutoff grade (“ecog”) of 0.212 gpt gold-equivalent on the basis of a gold price of US$1,250/oz Au; a silver price of US$15/oz Ag; metallurgical recoveries of 90% for gold and 10% for silver; mining cost of US$2.65/tonne of material mined; and process and G&A costs of US$5.00/tonne of material processed. The gold to silver ratio used for calculating gold-equivalent ounces was 750:1 based upon: a gold price of US$1250/oz; a silver price of US$15/oz; gold metallurgical recovery of 90%; and silver metallurgical recovery of 10%. Gold and silver estimates for both the HRA and Penelas zones are uncapped, while gold and silver estimates for the Paymaster zone are capped at 7 gpt and 40 gpt respectively until further drilling is completed to provide more data for statistical support above these capping levels. The associated additional material within all of the pits for all three zones below the external cutoff grade is 46.8 million tonnes.
Canamex President/COO and Director, Greg Hahn, said:
We are very pleased to be able to report our initial resource estimate for the Bruner property, including the HRA zone, Penelas zone, and the new Paymaster zone. We are excited by the evolving picture of the Penelas zone, about which little was previously known due to few historic drill holes and the lack of surface expression. This resource estimate and the enhanced understanding gained in its development will be the foundation for a continued exploration program designed to expand in open directions the three deposits identified and to upgrade the inferred resource to the level of indicated resource. There is a significant undrilled gap of 200 meter strike length in the center of the Penelas resource between the well-drilled mineralized pods estimated at either end, as well as unmined blocks of modelled material at depth that require additional drilling in order to be able to report. In addition, all three resource areas remain open in more than one direction and there is supportive surface geochemistry and geophysics to encourage the potential for expanding these resources. Our focus for 2015 will be to fill in these gaps in our database and test the extensions with additional drilling.