Kaminak Gold Releases Updated Mineral Resource Estimate for Coffee

Kaminak Gold (TSXV:KAM) has released an updated mineral resource estimate for its Coffee gold project. The new resource estimate represents an 8 percent grade in indicated resources and a 12 percent increase in grade for inferred resources.
As quoted in the press release:

As part of the ongoing feasibility study initiated at Coffee in 2014, Kaminak undertook a 70,000 metre infill drilling campaign on the four main Coffee deposits: Supremo, Latte, Double Double and Kona, with the aim of upgrading the 2.1 million ounce, primarily oxide gold resource contained in the conceptual pit shells defined in the 2014 Preliminary Economic Assessment (“PEA”, see press release June 10, 2014) from the Inferred to the Indicated resource category. In order to compare with previous mineral resource estimates reported at Coffee, the base case estimate is reported at a cut-off grade of 0.5 grams per tonne gold (“g/t Au”) for Oxide, Upper and Middle Transitional facies mineralization and a 1 g/t Au cut-off for Lower Transitional and Sulphide material. Using these cut-offs, the updated estimate of mineral resources for Coffee is 52.4 million tonnes at an average grade of 1.68 g/t Au for 2,824,000 oz of contained gold in the Indicated category and 42.7 million tonnes at a grade of 1.52 g/t Au for 2,088,000 oz of contained gold in the Inferred category.

Kaminak president and CEO, Eira Thomas, said:

Drilling in 2014-15 has successfully grown Coffee’s gold inventory to an indicated resource of ~3 million ounces at a grade of 1.45g/t Au plus an Inferred resource of ~2.2 million ounces at a grade of 1.31g/t Au, using projected feasibility resource cut-off grades. The high conversion rate from Inferred to Indicated together with the increase in grade and global resources, further demonstrates the confidence in the modeling approach taken by SIM Geological Inc. and underpins our confidence in the quality and predictability of the Coffee resource as we head into the home stretch of the feasibility study, which is fully funded and on track for completion in early Q1, 2016.

Click here for the full press release.