April 03, 2012 GobiMin Inc -- Increases Indicated Resource Estimates at Sawayaerdun Gold Project to 56.5 Million Tonnes at 1.3 g/t Au for 2.3 Million Ounces in Zones I and IV
Toronto, Canada. April 3, 2012 - (TSXV:GMN) GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce the latest resource estimates for Zones I and IV at the Sawayaerdun Gold Project after completion of its previously announced 92 hole infill program completed during 2011.
The current resource estimates at a 0.5 g/t Au lower cut-off base case are:
ZONE IV
INDICATED
Million BCM
Million Tonnes
Average Grade Au g/t ID2
Contained Gold 1000 Oz ID2
OXIDE
0.3
0.8
1.2
31
SULPHIDE
17.8
51.7
1.3
2,145
Total
18.1
52.5
1.3
2,176
2011 Estimate*
34.1
1.3
1,378
Increment
18.4
798
INFERRED
Million BCM
Million Tonnes
Average Grade Au g/t ID2
Contained Gold 1000 Oz ID2
OXIDE
0.1
0.2
1.3
10
SULPHIDE
15.0
43.5
1.1
1,533
Total
15.1
43.8
1.1
1,543
2011 Estimate*
13.5
1.0
426
Increment
30.3
1,117
ZONE I
INDICATED
Million BCM
Million Tonnes
Average Grade Au g/t ID2
Contained Gold 1000 Oz ID2
OXIDE
0.1
0.2
1.0
5
SULPHIDE
1.3
3.8
1.1
133
Total
1.4
4.0
1.1
139
INFERRED
Million BCM
Million Tonnes
Average Grade Au g/t ID2
Contained Gold 1000 Oz ID2
OXIDE
0.0
0.0
0.6
0
SULPHIDE
3.6
10.4
1.0
333
Total
3.6
10.4
1.0
333
TOTAL
Million BCM
Million Tonnes
Average Grade Au g/t ID2
Contained Gold 1000 Oz ID2
INDICATED
19.5
56.5
1.3
2,314
INFERRED
18.7
54.2
0.8
1,876
This latest resource estimate adds 18.4 million tonnes of Indicated resources for 798 thousand ounces of contained gold and 30.3 million tonnes of Inferred resources for 1,117 thousand ounces to the previous 2011 resource estimate for Zone IV. There has been no previous resource estimate for Zone I.
The Company had completed a 92 diamond drilling program at Sawayaerdun in the northwest of Xinjiang, China as scheduled in October 2011. This drilling in-filled and extended the earlier drilling in Zone IV to improve the reliability of the previously announced National Instrument (NI) 43-101 compliant resource estimate and delimited another approximately parallel mineralised structure at Zone I located 1,200 m to the east of Zone IV. This latest resource estimate utilises the drilling results of all previous drilling including the 2011 program totalling approximately 32,000 m.
Sawayaerdun Geology
The Zone IV and Zone I structures are part of a series of sub-parallel shears that dip steeply, approximately 70 degrees to the west, following a structural corridor that strikes east-northeast within fine grained Devonian clastic metasediments. These metasediments are composed of a turbidite sequence that has been altered to phyllites becoming more carbonaceous in the proximity of the mineralized shears, see Figure 1. The mineralized shear making up Zone IV is mapped over a strike length of over 6,500 m within GobiMin's tenements with drilling confirming that this structure is mineralized along the whole of this strike length and at depth. Mapping and drilling along Zone I has shown that this mineralized structure continues over 3,200 m of strike length.
Current Sawayaerdun Resource
The current mineral resource estimates are based on 221 diamond drill holes totalling approximately 53,200 m for 18,606 gold assays. Of this total, GobiMin drilled an aggregate of 127 holes for approximately 38,000 metres during 2010 and 2011, Figure 2.
The samples from all the GobiMin drilling were assayed for gold by the Geophysical and Geochemical Exploration Team of Xinjiang Geology Bureau laboratory in Urumqi, Xinjiang, China using the activated carbon/foam absorption of dissolved gold in aqua regia technique. A program of QA/QC sampling and assaying has been followed by the Company's geological staff and the laboratory to ensure that the assays obtained are NI 43-101 compliant and fit for the purpose of this resource estimate.
The grade estimation domains for the two Zones modelled were wire-framed using an approximate 0.5 g/t Au shell. A block model was then generated using block dimensions of 10 metres EW x 10 metres NS x 5 metres vertically into which the drill intercept grades were interpolated using a 200 m along strike x 200 m depth x 20 m across strike search ellipse with an inverse distance squared (ID2) algorithm. A second inverse distance cubed algorithm was also used as a check on the ID2 estimate and to determine the effect of more discrete modelling of the grades.
ZONE IV Cumulative INDICATED
Lower Cutoff ID2 g/t
Million Tonnes
Average Grade Au g/t ID2
Average Grade Au g/t ID3
Contained Gold 1000 Oz ID2
Contained Gold 1000 Oz ID3
5.00
0.1
6.3
7.6
24
29
2.50
2.1
3.2
3.5
217
232
2.00
5.5
2.6
2.7
456
475
1.75
8.9
2.3
2.4
664
687
1.50
14.6
2.0
2.1
957
985
1.25
22.7
1.8
1.8
1,314
1,341
1.00
33.5
1.6
1.6
1,702
1,729
0.75
44.7
1.4
1.4
2,016
2,039
0.50
52.5
1.3
1.3
2,176
2,194
0.00
57.9
1.2
1.2
2,230
2,245
ZONE I Cumulative INDICATED
Lower Cutoff ID2 g/t
Million Tonnes
Average Grade Au g/t ID2
Average Grade Au g/t ID3
Contained Gold 1000 Oz ID2
Contained Gold 1000 Oz ID3
5.00
0.0
0.0
0.0
-
-
2.50
2.1
3.2
3.5
217
232
2.00
0.0
2.6
2.7
2
2
1.75
0.3
2.2
2.2
20
21
1.50
0.5
2.0
2.0
30
30
1.25
1.3
1.6
1.6
64
65
1.00
1.9
1.4
1.4
88
89
0.75
3.0
1.2
1.2
119
121
0.50
4.0
1.1
1.1
139
141
0.00
5.1
0.9
0.9
146
147
The Competent Person has considered sampling density and distance from drill intercepts in order to classify the Mineral Resources according to the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves (December 2005) as required by NI 43-101. Model cells within 50 m of a drill intercept were classified as Indicated and between 50 m and 200 m as Inferred.
The Mineral Resource is not constrained by any open pit mining shell since it is projected that this deposit will be mined utilising underground mining methods commonly used in China for this type of deposit. A feasibility study is currently being prepared following Chinese standards, as required by the Chinese authorities before mining can commence, to determine the viability of these resources.
Metallurgical Testing
During 2011, two sets of metallurgical gold recovery tests were done on representative samples of fresh sulphide ore from the underground workings in Zone IV by the Beijing General Institute of Mining and Metallurgy and the Processing Research Institute of XBGMR. The results of these floatation and roasting tests are summarised in Table 3.
June 2011, Beijing General Institute of Mining and Metallurgy
Stage
Head Grade g/t
Head Grade g/t
Recovery %
Recovery %
Au
Ag
Au
Ag
Floatation
2.53
4.50
90
42
Floatation-Roasting-CIL1*
82
34
March 2011, Processing Research Institute of Xinjiang Bureau of Geology and Mineral Resources
Stage
Head Grade g/t
Head Grade g/t
Recovery %
Recovery %
Au
Ag
Au
Ag
Floatation
2.41
2.82
93
62
Floatation-Roasting-CIL
79
35
Table 3 2011 Metallurgical test results * Includes CIL tailings re-processing
A copy of the full technical report that includes the NI 43-101 resource statement will be posted by GobiMin on SEDAR within 45 days.
Pursuant to NI 43-101, the qualified person responsible for the technical data provided in this press release is Mr Philip Jones, a geologist with over 35 years geological experience, including gold, in mineral exploration, development and mining. Mr Jones, B App Sc, AusIMM, AIG, is the Company's consultant geologist and has reviewed and approved the contents of this news release.
Future Developments
In addition to further infilling drilling program of 30,000 meters commencing in April 2012, the Company will continue the mine development program in 2012 which includes construction of water and electricity supply facilities, and basic civil works.
About GobiMin
As at December 31, 2011, GobiMin had approximately USD62.30 million (CAD63.40 million) in cash and cash equivalent, which represents approximately USD1.00 (CAD1.01) per share based on the total issued capital of 62,596,296 shares.
GobiMin owns a 70% equity interest in Xinjiang Tongyuan Minerals Ltd. for the development of the Sawayaerdun Gold Project in Xinjiang, China. GobiMin also owns a 40%-50% interest each in four other base metal joint ventures in Xinjiang and an 8% equity interest in the Yanxi Copper Deposit. In addition, the Company also holds a 48.02% equity interest in a silver operation.
GobiMin is aggressively seeking opportunities to acquire high quality mining and exploration projects.
For further information, please contact:
Felipe Tan, Chief Executive Officer
Tel: (852) 3586-6500
Email: felipe@gobimin.com
Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management of GobiMin. The readers are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. The readers should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate. These statements speak only as of the date they are made, and GobiMin assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law. There is no guarantee that the Transaction will be completed on the terms and conditions described in this press release.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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