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Mountain Boy Minerals announces a significant increase in gold resources to 947,988 ounces inferred and 423,002 ounces measured and indicated PR Newswire - March 14, 2007 7:24 PM ET
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Mountain Boy Minerals Ltd. Pinnacle Mines Ltd. and Tenajon Resources Corp. are pleased to announce the results of a recent update to the resource estimate on the Silver Coin Project, adjoining the former gold producer Premier Silbak, near Stewart, BC. The new mineral resource has been significantly increased and improved since the last resource estimate published in March 2006, which only referred to inferred resources. MineFill was able to upgrade roughly 40 percent of the resources from Inferred to Measured and Indicated. The new resource estimate includes 947,988 ounces of gold in the inferred category and 423,002 ounces of gold in the measured and indicated category.
Andrew Bowering, a director of Mountain Boy and President of Pinnacle, stated that "We are pleased with the work that was completed in 2006 which improved and increased the resources and we believe that there is potential to increase the resources even more with additional drilling to the north and east in the next exploration programs. The 2007 exploration program will be established upon receipt of the 2006 drill report and Minefill 43-101 report."
This updated resource includes an additional 182 surface diamond drill holes completed in 2005 and 2006 under the supervision of Pinnacle geologists and 417 historical drill holes of which 288 were drilled from underground. The resource is based on drilling along 700 meters of strike length within a mineralized zone that has been identified over a distance of at least 2,500 meters that remains open to the south, east and north. Trenching to the north along the mineralized structure has returned values up to 22 g/t gold.
The current resource estimate is located primarily within the Kansas claim and the immediate surrounding area including the Big Missouri claim (51% Pinnacle - 49% Mountain Boy), as drilling was concentrated in these areas. In 1991 the Facecut zone, located on the Big Missouri, produced 102,539 tonnes at an average grade of 8.9 g/t Au and 55.50 g/t Ag. Work during 2005 and 2006 has extended this high grade mineralization (Facecut Zone) at least 200 meters north of the stoped area. DDH-2005-89 intersected 11.59 meters of 9.89 g/t gold approximately 100 meters north of the mined area. Future drilling will concentrate on this area to the north.
The new mineral resource estimate is presented in Table 1 below.
Table 1 Updated Mineral Resource Estimate for Silver Coin (Above a Cutoff Grade of 0.75 g/t Au-eq.) ------------------------------------------------------------------------- Au Ag Zn Au Au-Eq (oz) Class Tonnes g/t g/t % (oz) (Au, Ag only) ------------------------------------------------------------------------- Measured 1,073,891 3.481 14.191 0.432 120,181 129,513 ------------------------------------------------------------------------- Indicated 8,633,606 1.091 10.567 0.288 302,822 358,689 ------------------------------------------------------------------------- M+I 9,707,497 1.355 10.968 0.304 423,002 488,202 ------------------------------------------------------------------------- Inferred 15,947,629 1.849 5.377 0.273 947,988 1,000,499 ------------------------------------------------------------------------- (x) Au-eq values calculated from $525/oz for Au, $10/oz for Ag. (x) Metallurgical recoveries and net smelter returns are assumed to be 100%.
The inferred total has been almost doubled plus we have added an additional 423,002 to the measured and indicated categories.
In addition to the above results, MineFill report the following resources at a range of cutoff values (Table 2).
The new resource was classified in accordance with CIMM (2000) standards. The updated resource includes a high grade core of 8.25 million tonnes grading over 5.0 g/t Au-equivalent (3.8 g/t Au, 14.9 g/t Ag, 0.04% Cu and 0.54% Zn) containing just over 1 million ounces of gold.
Resources on the Kansas claim, at a 0.75 g/t Au-equivalent cutoff include 7.225 million tonnes measured and indicated grading 1.532 g/t Au, 9.998 g/t Ag, 0.013% Cu and 0.329% Zn, and 10.256 million tones inferred grading 2.146 g/t Au, 5.572 g/t Ag, 0.009% Cu and 0.26% Zn. Contained metal on the Kansas claims include 355,924 ounces of measured and indicated gold and 2.322 million ounces of silver, and 707,605 ounces of inferred gold and 1.837 million ounces of silver.
A comprehensive program of data verification was undertaken by MineFill Services prior to the building of a block model in SURPAC. The mineral resource estimate was then generated by ordinary kriging using uncapped gold, silver and zinc values.
MineFill Services is currently preparing a 43-101 compliant Technical Report for filing on SEDAR. MineFill has also been engaged to prepare a Preliminary Economic Assessment to evaluate the economics of an open pit at Silver Coin. The results of this study will be released as soon as they are available, and a report will be filed on SEDAR.
The Qualified Person for this release is Dr David Stone, P.Eng., P.E. of MineFill Services, Inc., Vancouver, B.C.
ON BEHALF OF THE BOARD
"Ed Kruchkowski"
Ed Kruchkowski, Director
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of the content of this news release.
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