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Vancouver, British Columbia - Lumina Gold Corp. (TSXV: LUM) (OTC: LUMAF) (the "Company" or "Lumina")announces an updated mineral resource estimate for the Company's Condor project, located in Zamora-Chinchipe Province, southeast Ecuador. This updated mineral resource estimate is the first since Lumina Gold acquired Condor and incorporates the 1,907 metres of drilling at Santa Barbara that has been completed since the acquisition in November 2016.
Mineral Resource Estimate Summary
|Deposit||Million Tonnes||Average Grade||Contained Metal|
(1) The mineral resource estimate has an effective date of April 5, 2018. (2) There are no known issues related to environmental, permitting, legal, taxation, socio-economic, marketing, or political issues that could materially affect the mineral resource. (3) The quantity and grade of reported Inferred mineral resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred mineral resources as an Indicated or Measured mineral resource. It is reasonable to expect that the majority of Inferred mineral resources could be upgraded to Indicated or Measured mineral resources with continued exploration. (4) The mineral resources in this estimate were calculated with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions. (5) Gold equivalent values were calculated using the following prices: for gold a price of US$1,400 per ounce, for copper a price of US$3.25 per pound and for silver a price of US$17 per ounce. Gold equivalent values can be calculated using the following formula: AuEq = Au g/t+(Ag g/t*0.0122)+(Cu%*1.592). (6) The base case cut-off grade for the estimate of mineral resources is 0.35g/t AuEq.(7) The Indicated and Inferred mineral resources are contained within a limiting pit shell and comprise a coherent body.
Future Activity and Exploration Plans
Lumina believes there are additional near surface drill targets at Santa Barbara. Exploration drilling and completion of the 29km geophysical Induced Polarization program has confirmed that the copper-gold mineralization has a distinctive high chargeability signature. Extensions to the resource that match this signature remain untested by drilling and constitute priority drill targets at the project.
In addition to Santa Barbara, the Condor land package covers a highly prospective area, within the most prolific mineral belt in Ecuador, along strike from significant gold and copper mines that are in construction. Lumina has been actively exploring the 10,101 hectare land package and has identified a large, four by two kilometre surface gold anomaly at the Prometedor prospect and an extension to the Los Cuyes deposit defined by a 200 metre by 200 metre surface gold anomaly that remains open.
The Santa Barbara and Los Cuyes extensions, Prometedor drill targets and others, continue to be advanced to drill stage. When ready, a drill will be mobilized to site to begin testing the targets in order of priority.
Comparative Commentary on the Current Mineral Resource Estimate Versus Prior Mineral Resource Estimates
Prior technical reports by Al Maynard & Associates (effective date March 24, 2014) and by GBM Mineral Engineering Consultants Limited ("GBM") (effective date May 19, 2015) took a substantially different approach to their classification of Inferred and Indicated mineral resources. The prior mineral resource estimates used a cut-off grade of 0.25g/t Au, versus the 0.35g/t AuEq cut-off used in the current mineral resource estimate. Although a cut-off grade that reflected the costs associated with open pit mining methods was used in the prior reports, there was no constraint on the mineral resource within economic pit shells. Accordingly, the updated mineral resource estimate is lower than prior mineral resource estimates. There is still substantial mineralization below and around the economic pit shells that could be re-incorporated into a mineral resource estimate in a higher gold and copper price environment. The majority of the mineral resource reduction occurred at the Santa Barbara deposit.
The May, 2015 PEA Technical Report that was prepared for Santa Barbara included an estimate of "material planned for processing" that was derived from the Indicated and Inferred resources. This material was potentially amenable to open pit extraction, but did not include mining losses or dilution.
Material Planned for Processing:
98.8Mt @ 0.72 g/t gold; 0.96 g/t silver; 0.11% copper; 2,272koz gold; 3,036koz silver; 233Mlbs copper.
Note: the cut-off grade used to calculate "material planned for processing" is not stated in the GBM report.
Lumina's management believes that the "material planned for processing" amount from that report provides a more appropriate comparison to the current Lumina Indicated and Inferred resource estimate methodology. The current resource estimate has higher tonnage, with 13Mt Indicated and 119Mt Inferred at a cut-off grade of 0.35 AuEq g/t. The contained gold and copper quantities are similar, with 267koz gold and 27Mlbs copper Indicated and 1,985koz gold and 255Mlbs copper Inferred.
Prior Condor mineral resource estimates included the El Hito copper-molybdenum deposit. For the purpose of the current mineral resource estimate, it was determined that the nine holes of completed drilling were inadequate to form the basis of an estimate of Inferred mineral resources. An exploration target has been estimated based on the assumption that the mineralization is continuous between drill holes and extends to a depth of between 150m and 300m below surface. The exploration target has been estimated to have a range of mineralization between 150-250Mt, with grades of 0.25-0.35% copper and 0.003-0.005% molybdenum.