Perth, Apr 3, 2008 (ABN Newswire) - Emerging gold producer Adamus Resources Limited (Adamus) (ASX: ADU)(PNK: ARLTF) is pleased to announce an increase in Ore Reserve estimate at its Southern Ashanti Gold Project (SAGP) in Ghana.
Highlights
- Updated independent gold Ore Reserve estimate of 815,000 oz
- 93% of Ore Reserve @ 2.35g/t
- 83% Proven Ore Reserve category
- 95% is in free milling material
- US$800/oz gold price assumed in mine model
- 26% increase (169,000 oz) over the previous base case gold Reserve of 646,000 oz
26% Ore Reserve Increase
An updated independent Ore Reserve estimate for the SAGP has defined a base case ore reserve of 815,000 ounces of economic mineralisation assuming a gold price of US$800 per ounce. This surpasses the previously released base case ore reserve of 646,000 ounces.
Adamus CEO Mark Bojanjac said the reserve increase followed a 40% increase in Measured and Indicated Gold Mineral Resources announced in February 2008, and was another significant milestone in the accelerating development of the SAGP.
"This will be a further boost to projected economics, with an increase in reserves supported by the significant increase in prevailing gold prices since our initial feasibility study. We expect more and we are considering an increase in the plant design capacity before we go to production" Mr Bojanjac said.
Table: Summary of Southern Ashanti Gold Project Ore Reserve Estimate
Category Tonnage Grade Au Contained Ounces
(Mt) (g/t) Au ('000)
---------------------------------------------
Proved Ore 10.12 2.08 678
Probable Ore 1.90 2.24 137
Total Ore 12.02 2.11 815
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Note: Mineral resource estimation calculated by Multiple Indicator
Kriging methodologies as detailed in the Feasibility Study announcement
dated 14 June 2007 and Revised Technical Report dated 31 October 2007
(Study Reports). The ore reserve estimation has been prepared by Mining
Solutions Consultancy Pty Ltd using cost estimates derived from third
party contractor and consultant quotations and based on a gold price
of US$800 oz. All metallurgical recoveries for conventional CIL and
CIP circuits are based on testwork as previously detailed in the
Study Reports.
More Resources and Reserve Conversion Expected
Current mineral resources identified at the SAGP comprise:
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28.4Mt @ 1.78 g/t for 1,630,000 oz gold (Measured and Indicated)
And
6.43Mt @ 1.64 g/t for 340,000 oz gold (Inferred)
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Notes:
1. The Measured and Indicated mineral resource estimate is inclusive
of current Ore Reserves.
2. For full details on the key assumptions, parameters and methods
used to estimate the mineral resource, please refer to the
mineral resource update announcement of 19 February 2008
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More from within Existing Pit Designs
"We are continuing our focused in-fill drilling program which will we believe convert further resources to reserves and further build project confidence. Our technical team see very real potential in a number of specific areas within the existing pit designs to convert more of the existing shallow resource to reserves," Mr Bojanjac said.
More from Satellite Deposits
In addition, drilling on several satellite deposits is in progress to convert more existing resources to reserves. Based on conversion metrics to date it is anticipated this could deliver a further 80,000 oz increase in gold reserves when studies are finalised.
More from Sulphides on the Salman Trend
95% of the mineralisation in the current Ore Reserve is contained within the free milling zones found near surface.
The refractory sulphides on the Salman Trend have to date been excluded from reserve calculations as they require a different treatment process. Testwork results and the treatment of these types of ores by regional neighbours warrants focus on unlocking this obvious potential.
Significantly, some 466,000 ounces of the current JORC measured and indicated resource category sulphide mineralisation is within 50 metres of the base of the Salman Trend pits.
The majority of the pits along the Salman Trend are less than 80 metres deep and the vast majority of drilling is less than 100m from surface. Most Salman Trend mineralisation remains open and untested at depth.
Bioleaching of float-concentrates is currently being used at the regionally neighbouring Bogoso Gold Operation (Bogoso) owned by Golden Star Resources Inc only 45km north and along strike from the SAGP. Bogoso mined surface oxide material similar to the SAGP at the rate of 100,000 oz per year for 10 years and has now recommenced processing refractory sulphide material.
Testwork currently being undertaken indicates that refractory sulphide material from SAGP can be converted into a higher grade concentrate by conventional flotation. Recent test results indicate a float-concentrate containing up to 95% of sulphide mineralisation can be delivered and that this concentrate could be expected to produce a high gold recovery when processed via bioleaching or pressure leaching.
"The very real potential to use conventional methods to concentrate and economically treat refractory sulphide mineralisation is demonstrated in the region at Bogoso and at Tarkwa. To date our focus has been entirely on near surface oxidised material down to 100m depth. By comparison, Bogoso have mineralisation down to 1,500m depth. Deeper sulphides could potentially be key to opening up the full scale of the project, and based on other regional examples may substantially increase the mineral resource and ore reserve base going forward," Mr Bojanjac said.
Note:
Information in this announcement pertaining to ore reserves was compiled by Tamer Dincer an employee of Mining Solutions Consultancy Pty Ltd, who is a Member of The Australasian Institute of Mining and Metallurgy. He qualifies as a "Qualified Person" under Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Tamer Dincer has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code. Tamer Dincer consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears. Information in this announcement pertaining to mineral resources was compiled by Ron Heeks, an employee of Adamus Resources Ltd, who is a Member of The Australasian Institute of Mining and Metallurgy and has more than 5 years experience in estimation of recoverable resources in gold deposits. He quali ies as a "Qualified Person" under Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Ron Heeks has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code. Ron Heeks consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears. The reference to 80,000 ounces in the section titled "More from Satellite Deposits" on page 2 of this announcement, is not an estimate of further Ore Reserves under the JORC Code or otherwise. There has to date been insufficient exploration to define these estimated ounces as Ore Reserves and it is uncertain if further exploration will result in the delineation of any further Ore Reserves. The TSX-V and ASX does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or ther regulatory authority has approved or disapproved the information contained herein. Caution Regarding Forward Looking Statements. Statements regarding Adamus' plans with respect to its mineral properties are forward-looking statements. There can be no assurance that Adamus' plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Adamus will be able to confirm the presence of additional mineral deposits, that any mineralization will prove to be economic or that a mine will successfully be developed on any of Adamus' mineral properties. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
