TORONTO, September 27, 2012 /PRNewswire/ --
- Indicated Resources of 118,000 ounces of gold -
- Inferred Resources of 5,000 ounces of gold -
Volta Resources Inc. ("Volta Resources" or the "Company") (TSX: VTR) announces a maiden NI 43-101 compliant Mineral Resource estimate has been completed for the Kiaka South deposit on the Kiaka Gold Project which is located 140 kilometers south-east of Ouagadougou in Burkina Faso. The Mineral Resource estimate was prepared by SRK Consulting UK Limited (Cardiff) ("SRK") in collaboration with Volta's personnel. The estimate has been reported according to CIM Standards and will be supported by a NI43-101 independent technical report which will be published in due course.
The estimate is based on some 35,108m of diamond and RC drilling: five drill holes for 908m from Randgold, the previous owners, and 348 drill holes for 34,200m from Volta Resources' ongoing drilling campaign. The maiden resource estimate for the Kiaka South Area deposit is summarized in Table 1 below:
Table 1: SRK Kiaka South Area Mineral Resource Statement as of 26 Sept 2012 @ 0.4 g/t Au cut-off
SRK Mineral Resource Statement, Kiaka South Gold Project 26 Sept 2012 Type Category Tonnes (Kt) Au (g/t) Metal Au (Kg) Metal Au (Oz) Measured Indicated 1,840 2.0 3,670 118,000 Kiaka South Measured and Indicated 1,840 2.0 3,670 118,000 Inferred 75 1.9 140 5,000
*Mineral Resources are reported at a cut-off grade of 0.4 g/t. Cut-off grades are based on a price of 1400 USD/oz of gold and gold recoveries of 89.8 percent for resources. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate. Exploration on the concession is operated by the Company.
Kevin Bullock, Volta Resources President & CEO, stated: "In addition to generating a maiden resource at Kiaka South, Volta Resources has initiated an investigation into optimizing the geological and resource models of the Kiaka Central Area by further improving the definition of the higher-grade mineralised bands that are evident in this large gold deposit. This would enhance the optionality of the deposit whereby an alternative staged approach to construction can be considered. This alternative could entail reducing initial ore throughput with selectively mined higher-grade material, feeding a smaller processing plant (6Mtpa), while stockpiling lower grade material. This should lead to considerably reduced initial Capex requirements than would be needed for the large single stage processing plant (12Mtpa) outlined in the pre-feasibility study.
Table 2: Grade Tonnage Sensitivity Analysis for Kiaka South Area 26 September 2012
Grade - Tonnage Table, Kiaka Deposit 26 September 2012 Indicated Inferred Cut-off Tonnes Au Grade Metal Au Metal Au Tonnes Au Grade Metal Au Metal Au g/t Kt g/t Kg (Oz) Kt g/t Kg (Oz) 1.4 860 3.3 2,800 90,000 25 4.0 100 3,000 1.2 1,020 2.9 3,010 97,000 30 3.7 110 3,000 1 1,210 2.7 3,220 103,000 45 2.7 120 4,000 0.9 1,330 2.5 3,330 107,000 50 2.6 130 4,000 0.8 1,440 2.4 3,420 110,000 55 2.4 130 4,000 0.7 1,550 2.3 3,500 113,000 60 2.3 140 4,000 0.6 1,660 2.2 3,580 115,000 70 2.0 140 5,000 0.5 1,750 2.1 3,630 117,000 75 2.0 140 5,000 0.4 1,840 2.0 3,670 118,000 75 1.9 140 5,000 0.2 1,950 1.9 3,700 119,000 75 1.9 140 5,000 0 21,110 0.2 3,730 120,000 2065 0.1 150 5,000
The high-grade mineralization at the Kiaka South Area is situated approximately 700m south-west of the Company's Kiaka Central Area where a positive pre-feasibility study has already defined proven and probable mineral reserves of 126.08 million tonnes at a diluted grade of 0.96 g/t Au for 3.89 million ounces of gold within a single open pit (see News Release of 3 May 2012), within NI-43-101 compliant resources including 117.42 million tonnes @ 1.07 g/t Au for 4,029,000 ounces in the Measured and Indicated categories and 29.96 million tonnes @ 1.00 g/t Au for 1,000,000 ounces in the Inferred category (Please see VTR press release dated March 21, 2012).
The Kiaka South Area mineralisation is structurally controlled, being focussed along contacts between north-easterly striking meta-sediments and meta-basalts enclosed within a northerly trending envelope. Drilling has defined four such north-easterly striking zones, each comprising multiple, narrow mineralised lenses, extending between 75m and 200m along strike (illustrated in plan and section in Figures 1 and 2). They vary in thickness, but average between 2 - 10m and can range up to 15 -20m. The resource is defined from surface, down to an average depth of approximately 100m (illustrated in cross section in Figure 2). The Kiaka South Area mineralisation is characterized by high-grade intercepts with single metre intervals regularly exceeding 10g/t gold. Most drill holes intersecting the ore body have, so far, returned high-grade values over narrow to moderate widths confirming the continuity of the high-grade mineralization. The deposit is overlain by thin transported surface cover and artisanal spoil, while oxidation has affected only the upper 20 to 30m of the underlying geology.
The estimate is based on a combination of diamond core and RC chip samples which were fire assayed for gold by ALS and Actlabs laboratories in Ouagadougou. Comprehensive QAQC has demonstrated that sample preparation and laboratory performance for all drilling campaigns comprising the Kiaka South Area database provided assays which are fit for the purpose of this estimate.
The grade estimation domains/zones comprise narrow lenses which have been wireframed approximating a 0.5 g/t assay cut-off. SRK has produced a block model with block dimensions of 5m x 20m x 10m into which gold grades have been estimated, based on optimised kriging routines with a search ellipse orientated to follow the dominant strike and dip of each domain. High-grade capping was applied based on a combination of log probability plots and raw and log histogram information. Based on this analysis, SRK has decided to apply a high-grade cap of 60 g/t Au to two domains and 50 g/t Au was applied to the third domain. The fourth domain was deemed not to require any high-grade capping.
SRK has treated all boundaries as hard boundaries in terms of the estimation process. The resultant block grade distribution is appropriate for the mineralisation style and noted continuity, which SRK consider to be an important feature of the deposit. In areas of limited sampling the block grade estimates have been produced using expanded search ellipses which result in more smoothed boundaries.
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.
To determine the proportion of the Mineral Resource which meets these criteria, the Mineral Resource has been limited to a Whittle Mining Software pit shell based on assumed criteria. SRK has used market consensus long-term price forecasts based on over 30 contributors and has then applied an uplift to result in a long-term optimistic gold price of 1400 USD/ oz; this approach is in line with other gold producing companies' reporting methods. SRK has utilised typical mining, processing, administrative costs based on the results from the recent prefeasibility study completed by Volta on the Kiaka Central Area. The marginal operating costs of USD 11.89 per tonne for processing and G&A as well as USD 1.58 per tonne for mining (assuming this will be a satellite resource to the 12 Mtpa CIP operation for the Kiaka Central Area), have been used to for the Whittle study. Further, assuming a process recovery of 89.8% based on metallurgical test work, SRK has elected to report resources from a cut-off grade of 0.4 g/t gold.
SRK notes there is potential for additional Mineral Resources within the Kiaka Licence which require further exploration. These include:
- Depth extensions on the Kiaka South Project could increase the depth of the Whittle shell with some targeted drilling to depths of between 150m - 200m. SRK would anticipate this drilling to target low-tonnage, higher-grade zones.
- The current Kiaka South model has a total of four zones modelled in a north-south direction (striking northeast-southwest). Potential exists to find similar parallel structures to the north and south of the current modelled structures with geophysics and auger results showing a number of anomalies which require follow-up work. SRK would recommend initial drilling on these structures be limited to depths of 100m - 150m below surface based on the depth limitations of the current whittle shell on the Kiaka South model.
A copy of the full technical report that accompanies the NI 43-101 resource statement will be posted on the Volta Resources website and on SEDAR within 45 days.
Pursuant to National Instrument 43-101, the qualified person responsible for the technical data provided in this press release is Mr. Ben Parsons, a Senior Consultant (Resource Geology); a full-time employee of SRK Consulting (UK) Ltd., Mr. Parsons is a member of the AusIMM with Chartered Professional status. Mr. Parsons has reviewed and approved the contents of this news release.
About Volta Resources:
Volta Resources has a portfolio of quality gold exploration projects in Burkina Faso and Ghana, both mining-friendly West African jurisdictions with proven world-class gold deposits. VTR will focus on fast-tracking its flagship Kiaka Gold Project (NI-43-101 compliant resources include 117.42 million tonnes @ 1.07 g/t Au for 4,029,000 ounces in the Measured and Indicated categories and 29.96 million tonnes @ 1.00 g/t Au for 1,000,000 ounces in the Inferred category [Please see VTR press release dated March 21, 2012] including 34.38 million tonnes @ 1.04 g/t Au for 1,145,969 ounces of gold in the Proven category and 91.70 million tonnes @ 0.93 g/t Au for 2,742,353 ounces of gold in the Probable category [Please see VTR press release dated May 3, 2012]) towards a development decision, aiming to complete a Feasibility Study in Q1, 2013. The recent acquisition of properties around Kiaka has provided VTR with an extensive ground position along the highly prospective Markoye Fault Corridor in an important emerging gold province.
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 Resources 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 Resources 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.
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For further information:
please refer to our website http://www.Voltaresources.com, or contact:
Kevin Bullock, P.Eng., President & CEO
Andreas Curkovic, Investor Relations
SOURCE Volta Resources Inc.