TORONTO, June 29, 2011 /PRNewswire/ --
- Measured and Indicated Resources Increase 118% to 3,018,000 ounces of gold AND Inferred Resources Increase 163% to 1,260,000 ounces of gold
Volta Resources Inc. ("Volta" or the "Company") (TSX: VTR) announces that an updated NI 43-101 compliant Mineral Resource estimate has been completed for the Kiaka Gold Project which is located 140 kilometers south-east of Ouagadougou in Burkina Faso. The updated Mineral Resource estimate was prepared by SRK Consulting UK Limited (Cardiff) ("SRK") in collaboration with Volta's personnel.
The new and updated resource estimate for the Kiaka deposit is summarized in Table 1 below:
Table 1: Mineral Resources at the Kiaka deposit as at June 2011
SRK Mineral Resource Statement, Kiaka Gold Project 28th June 2011
Metal Metal Au Au Type Category Tonnes (Kt) Au (g/t) (Kg) (Koz) Mineralised Bands Measured 14,040 1.43 20,030 644 Indicated 25,770 1.31 33,870 1,089 Measured and Indicated 39,810 1.35 53,900 1,733 Inferred 15,900 1.30 21,300 680 Halo Mineralisation Measured 15,220 0.79 12,050 387 Indicated 35,260 0.79 27,910 897 Measured and Indicated 50,480 0.79 39,960 1,284 Inferred 22,600 0.80 17,900 580 Combined Total Measured 29,260 1.10 32,100 1,031 Indicated 61,030 1.01 61,800 1,987 Measured and Indicated 90,290 1.04 93,900 3,018 Inferred 38,520 1.00 39,200 1,260 Notes Mineralised Bands based on a cut-off grade of 1 Au (g/t) within mineralised wireframe Halo Mineralisation based on a cut-off grade of 0.6 Au (g/t) within mineralised wireframe
"Our drilling programs have more than doubled the mineral resource base from last year's estimate at Kiaka while also significantly increasing the confidence of the geological model" stated Kevin Bullock, Volta's President & CEO.
He went on to say "The Volta team has once again delivered the estimate on time and on budget and I commend them on their efforts. The extent of the current resource upgrade elevates the Kiaka deposit to the next category in terms of quality and size. Notwithstanding the success of the Phase 2 campaign, the Kiaka deposit is not closed off yet, with further potential indicated along strike and down dip. There are also untested targets in close proximity that will be drilled in Phase 3. Combined with its favorable location and positive results from initial metallurgical test work, the prospects for the Kiaka deposit have been considerably enhanced."
This mineral resource estimate is based on approximately 72,500 m of diamond and RC drilling: 35 drill holes for 8,083m from Randgold, the previous owners, and 365 drill holes for 64,484 m from Volta's ongoing drilling campaign. In comparison to 2010, an additional 245 drill holes have been incorporated, representing an additional 45,409 m of drilling and 45,862 new assays, representing a 69% increase in the size of the assay database.
Phase 2 drilling has now extended the Kiaka deposit to >1.5km along strike (illustrated in plan and longitudinal section in Figures 1 and 2) and down to an average depth of approximately 450m below surface (illustrated in cross sections in Figures 3 and 4). The additional drilling has confirmed that higher grade "mineralized bands" ranging between 5 metres and 50 metres wide extend with good continuity for 100 metres to 400 metres along strike and 50 metres to 200 metres down dip. These "mineralized bands" are hosted within a lower grade "halo mineralization" within a structural corridor that is 100 metres to 250 metres wide. SRK has elected to report resources from the "mineralized bands" at a cut-off grade of 1.0 g/t gold and the "halo mineralization" at a cut-off grade of 0.6 g/t gold.
Infill drilling has resulted in considerably increasing the confidence in the geological model, leading to 1,031,000 ounces now reporting to Measured Resources. Measured and Indicated Resources have increased by 118% from 1,384,000 ounces to 3,018,000 ounces and Inferred Resources by 163% from 480,000 ounces to 1,260,000 ounces. The change in the Mineral Resources from June 2010 to June 2011 is highlighted in Table 2.
Table 2: Change in the Mineral Resources from June 2010 to June 2011 at the Kiaka deposit.
2010 KIAKA RESOURCE 2011 KIAKA RESOURCE STATEMENT STATEMENT Metal Metal Au Au Tonnes Au Au Type Category Tonnes (Kt) (g/t) (Koz) (Kt) (g/t) (Koz) Mineralised Bands Measured - - - 14,040 1.43 644 Indicated 16,990 1.42 773 25,770 1.31 1,089 Measured and Indicated 16,990 1.42 773 39,810 1.35 1,733 Inferred 4,510 1.4 200 15,900 1.3 680 Halo Mineralisation Measured - - - 15,220 0.79 387 Indicated 24,260 0.78 611 35,260 0.79 897 Measured and Indicated 24,260 0.78 611 50,480 0.79 1,284 Inferred 11,400 0.8 280 22,600 0.8 580 Combined Total Measured - - - 29,260 1.10 1,031 Indicated 41,250 1.04 1,384 61,030 1.01 1,987 Measured and Indicated 41250 1.04 1,384 90,290 1.04 3,018 Inferred 15,900 0.90 480 38,520 1.00 1,260
The estimate is based on a combination of diamond core and RC chip samples which were fire assayed for gold by ALS, SGS and BIGS laboratories in Ouagadougou. Field rejects from the mineralized intersections of the Randgold drill holes have been re-sampled and included in Volta's assay database; comprehensive QAQC has demonstrated that sample preparation and laboratory performance for all drilling campaigns provided assays which are fit for the purpose of this estimate.
The grade estimation domains comprise the wide KMZ corridor and flanking KHZ structures that were wire-framed using an approximate 0.3 g/t shell. A block model was then generated using block dimensions of 20 metres x 10 metres x 5 metres, into which up to 24 x 3 meter composite samples per block were used for estimation employing an ordinary kriging routine.
SRK has considered sampling density and distance from samples in order to classify the Mineral Resource 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 National Instrument 43-101. Further, SRK has used reasonable costs for the region, process recoveries based on the results of an internal scoping study (currently being completed by SRK) and a long term upside gold price of US$ 1,175/oz to determine that the current resource and its potential depth extensions have sufficiently high grade, width and proximity to surface to have reasonable prospects for economic extraction by producing a Whittle open pit shell.
Table 3: Sensitivity of SRK's block model within the Whittle open pit, at a range of cut-off grades from 0.0g/t to 1.4g/t
Grade - Tonnage Table, Kiaka Deposit 28th June 2011
Measured & Indicated Inferred Au Metal Cut-off Tonnes Au Grade Metal Au Metal Au Tonnes Grade Metal Au Au g/t Kt g/t Kg (Koz) Kt g/t Kg (Koz) 1.40 12,210 1.77 21,640 700 3,900 1.89 7,300 230 1.20 22,760 1.55 35,250 1,130 8,200 1.57 12,900 410 1.00 39,810 1.35 53,900 1,730 15,900 1.34 21,300 680 0.90 51,160 1.26 64,670 2,080 21,100 1.24 26,200 840 0.80 63,340 1.18 75,020 2,410 26,300 1.16 30,700 990 0.70 76,690 1.11 85,020 2,730 32,600 1.08 35,300 1,140 0.60 90,290 1.04 93,860 3,020 38,500 1.02 39,200 1,260 0.50 102,320 0.98 100,500 3,230 42,800 0.97 41,600 1,340 0.40 112,210 0.94 104,980 3,380 45,600 0.94 42,900 1,380 0.20 122,060 0.89 108,060 3,470 48,000 0.91 43,600 1,400 0.00 167,730 0.68 114,860 3,690 80,000 0.61 48,400 1,560
Volta will continue with the Phase 3 (50,000 meter) drilling program to further extend and enhance the Kiaka deposit, test other local targets already identified within a 3 kilometer radius of the currently defined deposit and to carry out scout drilling on the other regional targets on the 184 km Kiaka property.
Volta plans to enter into a pre-feasibility study over the second half of the year that will concentrate on optimizing metallurgical test work and mining schedules. This will be done in tandem with generating appropriate and project specific operating and capital cost parameters for the Kiaka deposit. This is consistent with Volta's stated objective of fast-tracking the development of the Kiaka deposit to generate the best return for shareholders.
A copy of the full technical report that accompanies the NI 43-101 resource statement will be posted on Volta's website and on SEDAR within 45 days.
To view "Figure 1: Kiaka Deposit - Plan View", "Figure 2: Kiaka Deposit - Longitudinal Section", "Figure 3: Kiaka Deposit - Cross Section 5450N" and "Figure 4: Kiaka Deposit - Section 5200N", please click http://files.newswire.ca/407/Kiaka-0629.doc
Pursuant to National Instrument 43-101, the qualified persons responsible for the technical data provided in this press release are Mr. Martin Pittuck, Director and Corporate Consultant (Resource Geology) and Mr. Ben Parsons, a Senior Resource Geologist; both full time employees of SRK Consulting (UK) Ltd. Mr. Pittuck is a Chartered Engineer and a Member of the IOM3 and Mr. Parsons is a member of the AusIMM. Mr. Pittuck has reviewed and approved the contents of this news release.
Volta is a mineral exploration company primarily focused on becoming a leader in the identification, acquisition, exploration and development of gold properties in West Africa.
Forward Looking Information Caution:
This press release presents "forward-looking statements" within the meaning of Canadian securities legislation that involve inherent risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Volta to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to international operations, risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management and officers of Volta believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Volta Resources does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
For further information, please refer to our website http://www.voltaresources.com or contact:
Kevin Bullock, P.Eng., President & CEO
Andreas Curkovic, Investor Relations