October 30, 2013
Orefinders identifies 20,742 tonnes averaging 4.41 gpt Au in Stockpiles at Mirado Project
Orefinders Resources Inc. (TSX.V: ORX) reports that it has identified a mineral resource of 20,742 tonnes of stockpiled material with an average grade of 4.41 grams per tonne gold (gpt Au) in three separate stockpiles located on Orefinders 100% owned Mirado property. The mineral resources are reported in accordance with Canadian Securities Administrator’s National Instrument 43-101 and have been estimated in conformity with generally accepted CIM Estimation of Mineral Resource and Mineral Reserves Best Practises Guidelines. Orefinders commissioned SRK Consulting (Canada) Inc. (“SRK”) in June 2013 to complete a mineral resource estimate for the Mirado project which includes existing historical stockpiles. This portion of the mineral resource estimate was completed on gold bearing mineralization previously stockpiled by Golden Shield Resources Inc. (“Golden Shield”) during the period from 1986-1987. The mineral resource estimate based on the 2013 drilling program is currently being finalized and will be reported at a future date.
Golden Shield reported the extraction of 50,000 tons from the South Zone open pit and an additional 20,000 tons from an underground exploration development program at the North Zone in a Northern Miner article dated November 9, 1987. Custom milling of a limited amount of the stockpiled Mirado material occurred at the Queenston Gold Mines Limited McBean mill located in nearby Kirkland Lake, where historical recovered gold grades were reported to range from 0.12 ounces per ton Au to 0.17 ounces per ton. Golden Shield halted operations in November 1987, leaving unprocessed stockpiles on the Mirado site, citing low gold prices at a time when the gold price averaged approximately CDN $450 per ounce. A location map for the three sampled stockpiles is provided on the Orefinders website at www.orefinders.ca under a section called “Core Shack.”
The current mineral resources of the stockpiles, named Northern Pile, Central Pile and Southern Pile are reported using a conservative cut-off grade of 2.0 g/t Au. Composited data were capped at 16, 20 and 9 g/t Au for the Northern Pile, Central Pile and Southern Pile, respectively. The Mineral Resource Statement for the three stockpiles is shown in Table 1.
|Table 1: Mineral Resource Statement*, Stockpiles, Mirado Gold Project, Ontario, SRK Consulting (Canada) Inc., October 25, 2013|
|*||Mineral resources are not mineral reserves and do not have a demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. Figures are reported at a cut-off grade of 2.0 gpt gold, assuming a gold price of US$1,400 per ounce, and a metallurgical recovery of 95 percent.|
Gold grades were estimated by an inverse algorithm (power of three), within a wireframe defined for the extents of each of the Stockpiles. Orefinders sampled the Northern and Central Stockpiles on a regular grid of 7.5 metres and the Southern Stockpile on a regular grid of 10 metres. Orefinders surveyed the areal extents of the stockpiles using a differential GPS receiver. Due to the larger size of the Southern Stockpile, Orefinders also surveyed the thickness of this stockpile using the same equipment.
Gold grades were estimated in each Stockpile separately using capped composited data. Block sizes for the Northern, Central and Southern Pile are 2.5 x 2.5 x 5 metres, 2.5 x 2.5 x 1.5 metres, and 2.5 x 2.5 x 2.5 metres, respectively. The mineral resources are reported at a cut-off grade of 2.0 gpt gold, assuming a gold price of US $1,400 per ounce of gold and a metallurgical recovery of 95 percent. The specific gravity was assumed at 1.5, corresponding to a swell factor of approximately 55 percent for blasted rock and a specific gravity of 2.75 of the in-situ rock.
The mineral resource estimation work was completed by Dr. Lars Weiershäuser, P.Geo. (APGO#1504) and reviewed by Glen Cole, P.Geo. (APGO #1416). Dr. Weiershäuser and Mr. Cole are both independent Qualified Persons as this term is defined in National Instrument 43-101. Dr. Weiershäuser inspected the Mirado gold project on July 15 to 17, 2013.
The chemical analyses were conducted in ALS Chemex’s ISO 9001:2008 certified Vancouver, BC laboratory facility; gold values were determined using fire assay method with a gravimetric over-limit finish. Multi-element (ME-ICP41) techniques yielded assays for a 35 element suite of minerals. All samples collected for analysis were processed using Orefinders’ strict QA/QC (quality assurance / quality control) program which includes the insertion of standards, duplicates and blanks for quality control of the assays. Samples were collected over measured grids on all three Stockpiles. An excavator was used to determine true thickness. A differential GPS took detailed readings in UTM coordinates using NAD 83 datum to determine the volume of each pile.
The technical information contained in this news release has been reviewed and approved by Kevin Piepgrass, P.Geo, Vice-President Exploration for Orefinders, who is a Qualified Person as defined in “National Instrument 43-101, Standards of Disclosure for Mineral Projects.”
On behalf of the Board of Directors
William Yeomans, P. Geo
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results may differ materially from results suggested in any forward-looking statements. Orefinders assumes no obligations to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless required by securities laws applicable to Orefinders. Additional information identifying risks and uncertainties is contained in filings by Orefinders with Canadian securities regulators, which filings are available under Orefinders profile at www.sedar.com.
For further information, please contact
William Yeomans, P. Geo.
VP Corporate Development