7th Mar 2011 07:00
7 March 2011 African Barrick Gold plc Initial Resource Declared at Golden Ridge Project
African Barrick Gold plc (the "Company" or "ABG") is pleased to announce the initial Mineral Resource at the Golden Ridge project, confirming the potential to develop a substantial satellite operation to the Buzwagi gold mine from 2013.
This initial resource consists of 527Koz @ 2.94g/t Au Indicated and 152Koz @ 2.52g/t Au Inferred. Further exploration drilling is scheduled to commence in the second quarter of 2011 aimed at expanding the total resource at the project over the coming months. In addition, the Feasibility Study for this project is on track for completion by the middle of 2011.
This resource announcement is another encouraging step in the overall Company strategy of realising the potential of its existing portfolio of high quality assets. It follows the announcement of the initial high grade underground resource at North Mara in December 2010 and the additional extension in February 2011 of the Tulawaka mine life. Together with the positive progress made on our other organic growth projects, this will be a significant part of our target of expanding our existing production base by 40% over the coming 3 years.
Commenting on the initial Mineral Resource at Golden Ridge, CEO Greg Hawkins said: "This initial mineral resource from our Golden Ridge project underpins our confidence in the potential for this deposit to contribute around 50Koz of additional production to our Buzwagi mine within 2-3 years at the same time as extending the life of that mine. Over the coming months, our aim is to validate this through the current feasibility study as well as adding to this initial resource."
The following table details the Mineral Resources, which have been developed and are reported in accordance with Canadian National Instrument 43-101.
Table 1: Mineral Resource Estimation for the Golden Ridge Deposit
Indicated Inferred Tonnes (Mt) Au (g/t) Ounces Tonnes (Mt) Au (g/t) Ounces (Moz) (Moz) Oxide 3.15 2.61 0.26 1.54 2.35 0.12 Transitional 1.21 3.03 0.12 0.16 3.42 0.02 Sulphide 1.22 3.70 0.14 0.17 3.19 0.02 Total 5.58 2.94 0.53 1.88 2.52 0.15
(1) ABG owns 100 per cent of the Golden Ridge property through its wholly-owned subsidiary, Pangea Minerals Limited
(2) Estimated at a 1.1g/t cut-off
(3) Assumed base case gold price of $1,200 per ounce and an assumed recovery of 80%
(4) Totals may not add due to rounding
(5) Mineral resources that are not mineral reserves do not have demonstrated economic viability (6) See `Note to mineral resource estimates' at the end of this release for information on the calculation of mineral resources estimates and definitions.
The following table provides a breakdown of the resources at varying cut-off grades.
Table 2: Mineral Resource Estimation for the Golden Ridge Deposit
Indicated Inferred Cut-off (g/ Tonnes (Mt) Au (g/t) Ounces Tonnes (Mt) Au (g/t) Ounces
t) (Moz) (Moz) 0.5 8.92 2.14 0.61 3.38 1.73 0.19 0.7 7.60 2.41 0.59 2.72 2.01 0.18 0.9 6.61 2.65 0.56 2.19 2.31 0.16 1.1 5.58 2.94 0.53 1.88 2.52 0.15 1.5 4.49 3.35 0.48 1.36 2.99 0.13 2.0 3.32 3.92 0.42 0.94 3.56 0.11
(1) ABG owns 100 per cent of the Golden Ridge property through its wholly-owned subsidiary, Pangea Minerals Limited
(2) Assumed base case gold price of $1,200 per ounce and an assumed recovery of 80%
(3) Totals may not add due to rounding
(4) Mineral resources that are not mineral reserves do not have demonstrated economic viability (5) See `Note to mineral resource estimates' at the end of this release for information on the calculation of mineral resources estimates and definitions.
This initial Mineral Resource from our Golden Ridge project follows the initial scoping study and more advanced work undertaken in 2010. In 2011, planned step-out exploration drill programmes will continue to target extensions of higher grade shoots at Golden Ridge with the objective of identifying further mineralization amenable for trucking to Buzwagi. Further exploration drill programmes will commence in the coming weeks to investigate extensions of the higher grade shoots on the margins of the current pit design in order to delineate additional higher grade resource ounces, particularly between the northern and southern zones of the main pit. In addition, these programmes will also be aimed at upgrading some of the Inferred resource ounces to the Indicated category. At the same time, we aim to finalise the feasibility study on Golden Ridge by the middle of 2011 and subsequently move into the project execution phase.
About the Golden Ridge Project
The Golden Ridge deposit is located is located approximately 100km south of Mwanza, 30km southeast of Bulyanhulu Mine and about 50km north of Kahama town near the village of Mwakitolyo in the Shinyanga Rural District.
Golden Ridge is situated in the Archean Sukumaland Greenstone Belt, part of the Tanzanian Craton. It is formed of the Upper Nyanzian series which is dominated by a thick sequence of sediments, felsic volcanics, and lesser amounts of banded iron formation (BIF). The deposit extends along a topographic ridge-forming BIF unit for a strike length of over 2.5km, although the mineralised Main Zone is best developed over a strike length of about 800m.
Golden Ridge mineralisation consists primarily of replacement-style sulphidised BIFs, although a lesser but high-grade quartz vein style of mineralisation is superimposed on the auriferous BIFs. The mineralised zone is characterised by abundant sulphides and silicification, brecciation and fracturing. The true thickness of the mineralised zone commonly ranges between 15 metres and 30 metres; mineralisation is known to locally extend down dip in excess of 300 metres and in many places remains open below 200 metres. Several subordinate stratiform bands of lesser width occur discontinuously in the hanging wall short distances to the east of the main zone. The Main Zone is centred on a bend in the azimuth of the host BIF from a north-south orientation to a N45°E trend. The BIF and its associated mineralisation dip about 50-60° to the east. A cross section (figure 1) and longitudinal projection of the main zone (figure 2) are shown below.
Figure 1: Golden Ridge Cross Section through Main Zone
[For picture see www.africanbarrickgold.com]
Figure 2: Golden Ridge Long Section showing the Main Zone
[For picture see www.africanbarrickgold.com]
ENQUIRIES
For further information contact:
African Barrick Gold plc
Greg Hawkins, CEO
Andrew Wray, Head of Corp Devt & IR +44 (0)207 129 7155
Finsbury +44 (0)20 7251 3801 Andrew MitchellCharles Chichester
Note on estimation techniques
A block model was created in Vulcan software to estimate grades and define classification of the resource. Block size were defined as 5x5x5 meters and an inverse distance (squared) was utilized to estimate the value of each block. Multiple domains were defined to differentiate lithologies and areas of similar strike and dip. 5 meter composites were used for the estimate and the number of composites used varied depending on the estimation pass. More details will be available in the technical report.
In order to constrain the resource estimate, a conceptual pit shell was developed using Datamine software to identify those parts of the block model that have reasonable prospects for eventual economic extraction. Parameters used were: $3.53 /tonne mining cost; $1200 per oz gold price; 80% process recovery; $32.46/ tonne Whittle process cost; 34°degree pit slope in Oxide and Transitional and 45°in fresh material.
Note to mineral resource estimates
Mineral resources estimates contained in this announcement have been calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definitions were followed for the mineral resources estimates. Calculations have been reviewed, verified (including estimation methodology, sampling, analytical and test data) and compiled by ABG personnel under the supervision of ABG Qualified Persons: Nic Schoeman, Director of Technical Services, Richard Adofo, Corporate Manager, Geology and Robert Van der Westhuizen, Corporate Mine Planning Manager. However, the figures stated are estimates and no assurances can be given that the indicated quantities of metal will be produced. Mineral Resources have been calculated using an assumed long-term average gold price of US$ 1200 per ounce. Resource estimates can change and tend to be influenced mostly by new information pertaining to the understanding of the deposit and secondly the conversion to ore reserves. In addition, estimates of inferred mineral resources may not form the basis of an economic analysis and it cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, investors are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves.
An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
Forward-looking statements
This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of ABG in any jurisdiction.
This announcement includes "forward-looking statements" that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "plans," "expects," "anticipates," "believes," "intends," "estimates" and other similar expressions.
All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are beyond the control of ABG, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, political, economic and business conditions, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand and Tanzanian shilling exchange rates), ABG's ability to successfully integrate future acquisitions, ABG's ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to timely and successfully process its mineral reserves, risk of trespass, theft and vandalism, changes in its business strategy as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Although ABG's management believes that the expectations reflected in such forward-looking statements are reasonable, ABG cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward looking statements in this announcement. Any forward-looking statements in this announcement only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this announcement that may occur due to any change in ABG's expectations or to reflect events or circumstances after the date of this announcement. Nothing in this announcement should be construed as a profit forecast or estimate.
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