Author Archive
Seabridge Gold Sells Residual Noche Buena Project Interest for US$10.12 Million
Despite good news and solid high gold prices, Seabridge shares remain about level for months now. When you have a look at the companies fundamentals, the current share price is ridiculously low. Seabridge is a good buy below $29.00 ; our longer term target (e.g. 2-3 years) for Seabridge is $80.00
Seabridge Gold News Release:
Toronto, Canada… Seabridge Gold announced today that it has completed the sale of its remaining interest in the Noche Buena project to Minera Penmont, S. de R.L. de C.V. (“Penmont”) for US$10.12 million in cash (see News Release dated October 28, 2010). Penmont is a joint venture between Fresnillo plc. and Newmont USA Limited, a wholly owned subsidiary of Newmont Mining Corporation. Dahlman Rose & Co., LLC acted as advisors to Seabridge for this transaction.
Seabridge holds a 100% interest in several North American gold projects. The Company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories. For a breakdown of Seabridge’s mineral resources by project and resource category please visit the Company’s website at http://www.seabridgegold.net/resources.php.
ON BEHALF OF THE BOARD
“Rudi Fronk”
President & C.E.O.
For further information please contact:
Rudi P. Fronk, President and C.E.O.
Tel: (416) 367-9292 • Fax: (416) 367-2711
Email: info@seabridgegold.net
Stock Pick: Brigus Gold (AMEX:BRD)
Today gold and silver finally entered a proper correction. We think prices will level now, and start climbing a bit day-by-day till the end of the year. This correction has given us the change to buy into two beautiful companies. Yesterday we announced our first pick Excellon Resources. Today we bought shares of Brigus Gold @ $1.88
Text from company website:
Brigus Gold is a growing gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and select acquisitions. The company operates the wholly-owned Black Fox Mine in the Timmins gold district of Ontario, Canada. In 2010, the Black Fox Mine is expected to produce approximately 80,000-85,000 ounces of gold at a lower-than-average cash costs per ounce in the range of $500-$550 per ounce. Brigus expects gold production to grow to 180,000 ounces in the near future. Brigus Gold is also advancing the Goldfields Project located near Uranium City, Saskatchewan, Canada. Combined, Black Fox and the Goldfields Project contain over 2 million ounces of gold reserves. Brigus Gold also has a vigorous project pipeline including the Ixhuatan Project and the Huizopa Joint Venture in Mexico, and joint venture exploration projects in the Dominican Republic. Brigus Gold has a solid balance sheet with growing cash flow from operations.
Click here to download a company presentation of December 9, 2010
Great Panther Updates Mineral Resource/Reserve Estimates At The Guanajuato Mine
After the closing bell Wednesday Great Panther announced great news, again! We bought shares of Great Panther in September 2009 @ CA$0.84 using today’s close of CA$2.45 this means a 191.6% gain! Watch this stock on Thursday!
Great Panther News Release
GREAT PANTHER SILVER LIMITED (TSX: GPR) is pleased to report that Scott Wilson Roscoe Postle Associates (“Scott Wilson RPA”), of Vancouver, B.C., has completed a NI 43-101 compliant mineral resource/reserve estimate on the Cata Clavo, Los Pozos, and Santa Margarita zones at the Company’s wholly-owned Guanajuato Mine in Guanajuato, Mexico. The new Measured and Indicated mineral resource contains 5,450,000 ounces silver equivalent. Inferred mineral resources are estimated at 2,678,000 ounces silver equivalent (“Ag eq oz”). The Measured and Indicated mineral resources include 4,372,000 Ag eq oz categorized as Proven and Probable mineral reserves, using a cut-off grade of 185 g/t silver equivalent. This is the first time that NI 43-101 compliant reserves have been estimated for the Guanajuato Mine and is a positive step in confirming the long-term viability of this historic operation.
The new resource base represents a 53% increase over the previous resource estimate (for just the Cata Clavo; see news release June 30, 2009), even after deducting the production from that zone over the last year and a half. This demonstrates the Company’s ability to not only replace what is being mined, but to increase the resource base and extend the mine life with additional drilling. There were no compliant resources at Guanajuato when Great Panther purchased the property in 2005 and most of the more than 4,500,000 Ag eq oz that the Company has mined from Guanajuato since 2006 has come from non-compliant resources.
Mining of the three zones, Cata, Los Pozos, and Santa Margarita currently accounts for most of the Guanajuato metal production. Resource drilling is ongoing to delineate new resources and reserves on the upper and depth extensions of Los Pozos and the southeast strike extension of Santa Margarita but also includes Guanajuatito, Valenciana, San Telesforo, and the depth extensions of the Rayas Clavo, none of which are included in this resource estimation but which will be included in the 2011 update. In addition, drilling of the very promising San Ignacio project will continue through 2011 and will make a significant contribution to future resources for the Guanajuato Mine. As such, the resource base will continue to build at Guanajuato and it is the Company’s stated objective to delineate approximately 25-30 million Ag eq oz here by 2012.
For the year 2010, production from Guanajuato is estimated to be 1.02 million Ag oz and 6,720 Au oz (1.44 million Ag eq oz). The resource and reserve estimates, together with the significant potential of the ongoing drilling programs, positively support the achievement of the growth strategy objectives for Guanajuato.
Silver equivalent values were applied to computer generated block models in order to define the mineral resource. The mineral reserve cut-off value of 185g/t (6.0 oz/t) silver equivalent is the metal content contained in one tonne of ore for which the net revenue (net of smelter and refining costs) is equal to the average full operating costs to mine and process one tonne of ore. Scott Wilson RPA used medium term projected metal prices of US$17.67/oz Ag and US$1150/oz Au (relative price ratio of 65 gold to 1 silver), 2010 concentrate sales contract terms, and typical plant performance metal recoveries and concentrate grades to calculate the net value. Total operating costs at Guanajuato, including mining, milling, and general and administration costs, are currently US$85/tonne. Experience gained from mining the veins by the cut-and-fill mining method and the upward trend in metal prices, determined that the appropriate cut-off value for defining mineral resources at Guanajuato be set at 136g/t (4.3oz/t) silver equivalent. The use of a lower cut-off for resources reflects the less stringent guidelines for resources versus reserves.
Based upon these parameters, the Measured and Indicated mineral resource contains 5,450,000 Ag eq oz including 2,495,000 Ag eq oz in the Measured category and 2,956,000 Ag eq oz in the Indicated category. Inferred resources are estimated at 2,678,000 Ag eq oz. Of the Measured and Indicated mineral resource, 4,372,000 Ag eq oz is classified as Proven and Probable mineral reserve, using a cut-off of 185g/t silver equivalent. The Proven mineral reserve is estimated at 1,935,000 Ag eq oz, while the Probable mineral reserve is estimated at 2,438,000 Ag eq oz. Breakdowns for silver and gold can be found in the tables below.
The mineral resource estimate for Guanajuato was prepared using block models constrained by 3D wireframes of the principal mineralized zones. Separate block models, comprising arrays of 2.5 by 2.5 by 2.5 meter blocks, were constructed for each of the Cata, Los Pozos, and Santa Margarita zones. Grades for gold and silver were interpolated into the blocks using Inverse Distance Cubed (ID3) weighting. Block model graphics, maps, sections and previous news releases can be viewed on the Company’s website at www.greatpanther.com. The samples consisted of diamond drill and production chip samples. Scott Wilson RPA capped high gold and silver grades at a range of levels depending on the zone and the type of sample (drill hole or chip). The estimates were classified according to the CIM Definition Standards on Mineral Resources and Mineral Reserves, and as such, are consistent with the requirements of NI 43-101. The estimate was prepared using GEMS software (Gemcom), which is a commercially available package, commonly used in the industry.
The Cata Clavo is separated into four zones, namely, the Veta Madre, Alto 1, Alto 1a and Alto 2. The upper limit of the main Veta Madre zone is set at the floor of the 460 metre level as it has been extensively mined out above this level. Mining of the three higher grade Alto zones is underway using a modified mining plan. The mineralized zones used in the resource represent an approximate 100 metre vertical height and a strike length of approximately 150 metres. The Los Pozos zone is a downward tapering zone of 30-90 metres strike length and widths to 12 metres. The mineral resource estimate is from the 390 level up to the bottom of the 270 level sill pillar. The Santa Margarita is separated into four zones, namely the HW stockwork, Breccia, FW A, and FW B. The mineral resource estimate was calculated from below the floor of the 390 level to the 600 level along a strike length of more than 200 metres.
The Veta Madre (at Cata and Los Pozos areas) and the Cata Alto 1 zone are complex quartz dominated stockwork and breccia zones of pyrite and argentite mineralization with argillic and propylitic alteration in the footwall shale. Footwall to the Veta Madre is a barren silica breccia with large angular shale fragments. The Alto 1a, and Alto 2 zones are silica rich brecciated zones within a hanging-wall diorite dyke. The Santa Margarita zones in the Rayas area are silica rich brecciated hanging wall conglomerates, andesite and La Sirena quartz porphyry intrusive. All zones strike generally NW-SE and dip 45 degrees southwest.
Measured, Indicated and Inferred mineral resources in the three areas were estimated by Dave Rennie, P.Eng, a Principal Geologist for Scott Wilson RPA, and the Proven and Probable mineral reserves were estimated by R. Dennis Bergen, P. Eng, Associate Principal Mining Engineer for Scott Wilson RPA. Both are independent of Great Panther as per the criteria set out in NI43-101. The Mineral Reserves and Mineral Resources estimates are tabulated below:
| October 31 2010 Proven Mineral Reserves | ||||||
|---|---|---|---|---|---|---|
| Tonnage | AU | AU | AG | AG | AgEq | |
| Zone | Kt | g/t | oz | g/t | oz | oz |
| Cata – Madre | 44.0 | 1.28 | 1,800 | 344 | 486,000 | 603,000 |
| Cata – Alto 1 | 30.5 | 2.21 | 2,170 | 296 | 290,000 | 431,000 |
| Pozos | 65.4 | 1.29 | 2,720 | 309 | 650,000 | 827,000 |
| Santa Margarita BX | 7.3 | 4.47 | 1,050 | 21 | 5,000 | 73,000 |
| Total Proven | 147.0 | 1.64 | 7,740 | 303 | 1,431,000 | 1,935,000 |
| October 31 2010 Probable Mineral Reserves | ||||||
|---|---|---|---|---|---|---|
| Zone | Tonnage | AU | AU | AG | AG | AgEq |
| Kt | g/t | oz | g/t | oz | oz | |
| Cata – Madre | 2.1 | 0.91 | 60 | 187 | 13,000 | 17,000 |
| Cata – Alto 1 | 21.6 | 1.02 | 710 | 225 | 156,000 | 202,000 |
| Cata – Alto 1a | 21.6 | 2.49 | 1,730 | 605 | 420,000 | 533,000 |
| Cata – Alto 2 | 12.3 | 2.33 | 920 | 721 | 285,000 | 345,000 |
| Pozos | 68.6 | 1.03 | 2,280 | 262 | 577,000 | 725,000 |
| Santa Margarita BX | 30.4 | 6.69 | 6,540 | 15 | 15,000 | 441,000 |
| Santa Margarita FWSTK | 16.6 | 4.80 | 2,560 | 19 | 10,000 | 177,000 |
| Total Probable | 173.2 | 2.66 | 14,790 | 265 | 1,475,000 | 2,438,000 |
| Total Proven & Probable | 320.2 | 2.19 | 22,530 | 282 | 2,906,000 | 4,372,000 |
| October 31 2010 Proven & Probable Mineral Reserves | ||||||
|---|---|---|---|---|---|---|
| Zone | Tonnage | AU | AU | AG | AG | AgEq |
| Kt | g/t | oz | g/t | oz | oz | |
| Cata – Madre | 46.1 | 1.25 | 1,860 | 337 | 499,000 | 620,000 |
| Cata – Alto 1 | 52.1 | 1.72 | 2,880 | 266 | 446,000 | 633,000 |
| Cata – Alto 1a | 21.6 | 2.49 | 1,730 | 605 | 420,000 | 533,000 |
| Cata – Alto 2 | 12.3 | 2.33 | 920 | 721 | 285,000 | 345,000 |
| Pozos | 134.0 | 1.16 | 5,000 | 285 | 1,227,000 | 1,552,000 |
| Santa Margarita BX | 37.7 | 6.26 | 7,590 | 17 | 20,000 | 514,000 |
| Santa Margarita FWSTK | 16.6 | 4.80 | 2,560 | 19 | 10,000 | 177,000 |
| Total Proven & Probable | 320.2 | 2.19 | 22,530 | 282 | 2,906,000 | 4,372,000 |
Notes
- CIM definitions were followed for Mineral Reserves.
- Mineral Reserves are estimated at a cut-off grade of 185 g/t AgEQ.
- Mineral Reserves are estimated using an average gold price of US$1150 per ounce and an average silver price of US$17.67 per ounce.
- The minimum mining width is 1.5 metres.
- Bulk density is 2.65 t/m3.
- Numbers may not add due to rounding.
| Au g/t | Ag g/t | ||
|---|---|---|---|
| Cata/Alto dilution | 20% | 0.30 | 80 |
| Cata extraction | 80% | ||
| Alto extraction | 85% | ||
| Pozos dilution | 15% | 0.30 | 80 |
| Pozos extraction | 85% | ||
| Santa Margarita dilution | 20% | 1.00 | 10 |
| Santa Margarita extraction | 90% |
| October 31, 2010 Measured Mineral Resource | ||||||||
|---|---|---|---|---|---|---|---|---|
| Zone | Volume | Density | Tonnage | Au | Au | Ag | Ag | Ag Eq |
| (K m3) | (t/m3) | (Kt) | (g/t) | (oz) | (g/t) | (oz) | (oz) | |
| Cata | 34.7 | 2.65 | 91.9 | 1.71 | 5,050 | 338 | 999,000 | 1,330,000 |
| Los Pozos | 32.7 | 2.65 | 86.7 | 1.27 | 3,540 | 303 | 844,000 | 1,070,000 |
| Santa Margarita | 3.47 | 2.65 | 9.20 | 4.43 | 1,310 | 22.0 | 6,520 | 92,000 |
| Total | 70.8 | 2.65 | 188 | 1.64 | 9,910 | 306 | 1,850,000 | 2,495,000 |
| October 31, 2010 Indicated Mineral Resource | ||||||||
| Zone | Volume | Density | Tonnage | Au | Au | Ag | Ag | Ag Eq |
| (K m3) | (t/m3) | (Kt) | (g/t) | (oz) | (g/t) | (oz) | (oz) | |
| Cata | 26.3 | 2.65 | 211 | 2.55 | 4,150 | 474 | 1,060,000 | 1,330,000 |
| Los Pozos | 34.7 | 2.65 | 91.8 | 0.98 | 2,900 | 252 | 743,000 | 932,000 |
| Santa Margarita | 18.8 | 2.65 | 49.8 | 6.42 | 10,300 | 18.9 | 30,300 | 701,000 |
| Total | 79.7 | 2.65 | 211 | 2.55 | 17,300 | 270 | 1,830,000 | 2,956,000 |
| October 31, 2010 Measured and Indicated Mineral Resource | ||||||||
| Zone | Volume | Density | Tonnage | Au | Au | Ag | Ag | Ag Eq |
| (K m3) | (t/m3) | (Kt) | (g/t) | (oz) | (g/t) | (oz) | (oz) | |
| Cata | 60.9 | 2.65 | 161 | 1.77 | 9,210 | 397 | 2,060,000 | 2,660,000 |
| Los Pozos | 67.4 | 2.65 | 178 | 1.12 | 6,440 | 277 | 1,590,000 | 2,010,000 |
| Santa Margarita | 22.2 | 2.65 | 59.0 | 6.11 | 11,600 | 19.4 | 36,800 | 792,000 |
| Total | 150.5 | 2.65 | 399 | 2.12 | 27,200 | 287 | 3,680,000 | 5,450,000 |
| October 31, 2010 Inferred Mineral Resource | ||||||||
| Zone | Volume | Density | Tonnage | Au | Au | Ag | Ag | Ag Eq |
| (K m3) | (t/m3) | (Kt) | (g/t) | (oz) | (g/t) | (oz) | (oz) | |
| Cata | ||||||||
| Los Pozos | 2.53 | 2.65 | 6.70 | 0.53 | 113 | 149 | 32,200 | 40,000 |
| Santa Margarita | 77.6 | 2.65 | 206 | 4.52 | 29,900 | 105 | 694,000 | 2,640,000 |
| Total | 80.1 | 2.65 | 212 | 4.39 | 30,000 | 106 | 726,000 | 2,678,000 |
Both drill core and underground chip samples were assayed independently by SGS at the Company’s Guanajuato Mine site laboratory. Aspects relating to mining and metallurgy are overseen by Charles Brown, Chief Operating Officer for Great Panther and its Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V. Robert F. Brown, P. Eng and Vice President of Exploration for the Company, is the Qualified Person for the Guanajuato Mine Project, under the meaning of NI43-101, and has reviewed these results. The Company’s QA/QC program includes the regular insertion of blanks, duplicates, and standards into the sample shipments.
Great Panther owns a 100% interest in the Guanajuato Mine Complex. Historically, the Guanajuato Mine was one of the largest silver producers in Mexico and encompasses the core of the Guanajuato District, which has produced 1.2 billion ounces of silver and 4.5 million ounces gold.
For further information please visit the Company’s website at www.greatpanther.com, contact B&D Capital at telephone 604 685 6465, fax 604 899 4303 or e-mail info@greatpanther.com.
ON BEHALF OF THE BOARD
“Robert A. Archer”
Robert A. Archer, President & CEO
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, “forward-looking statements”). Such forward-looking statements may include but are not limited to the Company’s plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company’s operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2009 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Stock Pick: Excellon Resources Inc. (TSX EXN) Mexico’s Highest Grade Silver Producer
After weeks of examining about 50 mining companies, today we bought shares of Excellon Resources @ CA$0.99 We have made a second stock pick as well, but our buy order today was to low. We will try to buy shares again on Thursday. When we manage to do so, we will announce our second pick! The text below is from the Excellon website.
Excellon is a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. The Company is producing silver, lead and zinc from high-grade manto deposits on its Platosa Property, strategically located in the middle of the Mexican silver belt. In fiscal 2010, Excellon’s focus remains on increasing its Mineral Resources at Platosa through an aggressive exploration program, and working towards expanding its operating capacity to maximize the value of the Miguel Auza mill acquired in 2009. The Platosa Property, not fully explored, has several geological indicators of a large carbonate replacement deposit (CRD) mineralized system, the tracking of which Excellon believes will lead to the discovery of a world class deposit. At Miguel Auza, located in the northern portion of the Zacatecas-Fresnillo silver belt, an initial exploration program to evaluate the potential of this largely underexplored property, the site of considerable historic and recent production from epithermal precious and base metal veins was completed in September 2010.
Click here to download the investor presentation of December 1 from the company website.
First Majestic to List on the New York Stock Exchange
Today First Majestic has announced it will get a listing on the NYSE. The company will reach new investors and benefit from a deeper liquidity. We bought shares of First Majestic in September 2009 @ CA$2.66 using yesterday’s close of CA$13.43 this means a 404,8% gain.
First Majestic News Release:
First Majestic Silver Corp. (TSX:FR) (NYSE:AG) (the “Company” or “First Majestic”) is pleased to announce that its common shares have been authorized for listing on the New York Stock Exchange (“NYSE”). The Company expects the shares to begin trading on the NYSE on December 15, 2010 under the trading symbol “AG”. The Company will retain its primary listing on the Toronto Stock Exchange under the trading symbol “FR”.
“We’re pleased to welcome First Majestic Silver Corp, a leading Canadian miner, to the NYSE,” said Scott Cutler, EVP and Co-Head of U.S. Listings and Cash Execution, NYSE Euronext. “First Majestic is a welcome extension to our fast-growing roster of Canadian mining companies. The Company and its shareholders will benefit from the deep liquidity and global visibility offered to Canadian companies cross-listed on the NYSE.”
“First Majestic’s increased exposure from this upcoming NYSE listing is a result of management’s continued focus to bring additional value to our broadening shareholder base,” said Keith Neumeyer, President and CEO of the Company. “We look forward to introducing First Majestic to a wider audience of investors as our profile is expanded internationally.”
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
“signed”
Keith Neumeyer,
President & CEO
This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Avino Announces $5.1 Million Financing
Last friday Avino announced a private placement for $5.1 million financing. The net proceeds of this offering will be used to advance the company’s San Gonzalo silver, gold, lead and zinc project at Durango, Mexico and general working capital requirements. Today the stock surged 10% to a new 52-week high of $2.40 We bought shares Avino in July 2009 @ $0.63 using today’s intra-day high this means a 280,9% gain. We think this company still has a very bright future. We did sell some shares however, just as we have done with all shares exceeding 250% gains these weeks. The correction last week did not come though like we expected and gold and silver prices seem to stabilize a bit. This trend is likely to continue the coming weeks, for gold this means the $1378-$1425 range and for silver $27.50-$30.50 We expect the next big surge in commodities in the beginning of 2011. The surge still might come sooner if global circumstances give reason for it (Euro crisis, Korean situation). We will announce new stock picks within a month!
Avino News Release:
Avino Silver and Gold Mines Ltd. (the “Company”) is pleased to announce that it has arranged a private placement of up to 2,700,000 units at a price of $1.90 per unit, each unit consisting of one common share and one non-transferrable share purchase warrant. Each warrant will entitle the investor to purchase one additional common share with a term of three years at an exercise price of $2.50. Sprott Asset Management LP on behalf of certain funds and managed accounts has agreed to participate in this private placement. In addition, units will be sold by the Company to investors introduced by Sprott Private Wealth LP (“SPW”). A cash commission of 5% of the gross proceeds from units sold to such investors and 5% compensation warrants are payable to SPW.
The net proceeds of this Offering will be used to advance the Company’s San Gonzalo silver, gold, lead and zinc project at Durango, Mexico and general working capital requirements.
The financing is Subject to approval of The TSX Venture Exchange and all regulatory authorities. The securities issued by the Company in connection with this financing are subject to a 4-month “hold period” as prescribed by the TSX Venture Exchange.
Founded in 1968, Avino has established a long record of mining and exploration in Mexico. The Company’s focus is to bring the property to production. Avino remains well funded.
ON BEHALF OF THE BOARD
“David Wolfin”
______________________________
David Wolfin
President & Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading “Risk Factors” and elsewhere in the Company’s periodic filings with Canadian securities regulators. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
Seabridge Gold Drilling Expands Iron Cap: Resource Estimate Expected Shortly. Results Suggest Potential to Discover Higher Grade Deposit at Depth.
Today Seabridge Gold announced that a new resource estimate is expected shortly. The data of all 46 drilling holes will now be provided to Resource Modeling Inc., an independent consulting firm, and the first NI-43-101 compliant resource estimate for Iron Cap is expected in January 2011. We bought Seabridge Gold in June of this year @ $28.36 Today the stock closed @ $27.79 this means a 2% loss. We think the coming estimate will finally give the share price the firm push forward we have been waiting for. For the time being we keep our targeted price at $75
Seabridge News Release:
Toronto, Canada – Results from the final 33 core holes drilled by Seabridge this year at Iron Cap have confirmed (i) consistent gold, copper and silver mineralization which is likely to generate an increase in resources and reserves at KSM; (ii) an expanded size of the deposit; (iii) higher average metal values than KSM’s current reserves which have the potential to enhance project economics; and (iv) a highly prospective new exploration target which could have dynamic implications for KSM. For assay results and hole descriptions see www.seabridgegold.net/NDec9-10-table.pdf and for a drill hole location map see www.seabridgegold.net/NDec9-10-maps.pdf.
A total of 46 core holes have now been drilled at Iron Cap. Every hole has intersected ore grade mineralization over significant widths. The drill data will now be provided to Resource Modeling Inc., an independent consulting firm, and the first NI-43-101 compliant resource estimate for Iron Cap is expected in January 2011. The drill hole spacing in the heart of the Iron Cap deposit should be sufficient to allow a significant portion of this resource to be classified as measured and indicated which could enable it to qualify as reserves in the updated Preliminary Feasibility Study (“PFS”) scheduled for April 2011.
In the Seabridge news release dated July 26, 2010, the size of the Iron Cap deposit was estimated to be at least 900 meters in strike length, 400 meters wide and up to 350 meters thick. The results from the last 33 holes now confirm a deposit which has a strike length of at least 1,300 meters, a width of at least 600 meters and an average thickness of 350 meters. In addition to the down dip potential, Iron Cap remains open on strike to the northeast and southwest.
Analysis of drill data indicates that the Iron Cap resource is likely to have a higher metal value than the average KSM grade. For example, Hole 40, which is mineralized from top to bottom, contains a 128.5 meter interval grading 1.04 grams per tonne gold and 0.37% copper. What is most encouraging is that Iron Cap’s higher grade copper zones could be blended with ore from the Mitchell zone to maintain the targeted 0.20% average copper grade to the mill. This average head grade is important because it generates a higher grade concentrate without sacrificing recoveries, which in turn commands better smelter returns and reduces shipping costs. The current mine plan calls for the early development of the more distant Kerr and Sulphurets zones to maintain copper head grades to the mill. Sequencing Iron Cap before Kerr and Sulphurets could have multiple potential benefits including lower operating and capital costs, deferring significant expenditures and extending mine life.
The Iron Cap deposit is a separate but related mineral system within the KSM district. It is structurally above the Mitchell deposit in the panel of rocks between the Mitchell and Sulphurets thrust faults. Iron Cap differs from the Mitchell deposit in that several intrusions make up the host rock. This higher temperature environment and its associated potassic alteration have resulted in the higher metal value at Iron Cap. There is the potential for an undiscovered, deeper core zone characterized by potassium feldspar, magnetite and bornite which could be expected to contain significantly higher metal values than the shallower levels tested so far at Iron Cap. This year’s drill results suggest that this potential core zone may exist below the current limits of the Iron Cap deposit. Seabridge intends to pursue this target in next year’s program.
Exploration activities at KSM are being conducted by Seabridge personnel under the supervision of William E. Threlkeld, Senior Vice President of Seabridge and a Qualified Person as defined by National Instrument 43-101. An ongoing and rigorous quality control/quality assurance protocol is being employed during the 2010 program including blank and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed at Eco Tech Laboratory Ltd., Kamloops, B.C., using fire assay atomic adsorption methods for gold and total digestion ICP methods for other elements.
Seabridge holds a 100% interest in several North American gold resource projects. The Company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories. For a breakdown of Seabridge’s mineral resources by project and resource category please visit the Company’s website at http://www.seabridgegold.net/resources.php.
All reserve and resource estimates reported by the Corporation were calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
This document contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements” are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the amount of mineral reserves and mineral resources; (ii) any potential for the increase of mineral reserves and mineral resources, whether in existing zones or new zones; (iii) the amount of future production; (iv) further optimization of the PFS including metallurgical performance; (v) completion of and submission of the Environmental Assessment Application; and (vi) potential for engineering improvements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
All forward-looking statements are based on Seabridge’s or its consultants’ current beliefs as well as various assumptions made by them and information currently available to them. These assumptions include: (i) the presence of and continuity of metals at the Project at modeled grades; (ii) the capacities of various machinery and equipment; (iii) the availability of personnel, machinery and equipment at estimated prices; (iv) exchange rates; (v) metals sales prices; (vi) appropriate discount rates; (vii) tax rates and royalty rates applicable to the proposed mining operation; (viii) financing structure and costs; (ix) anticipated mining losses and dilution; (x) metallurgical performance; (xi) reasonable contingency requirements; (xii) success in realizing further optimizations and potential in exploration programs and proposed operations; (xiii) receipt of regulatory approvals on acceptable terms, including the necessary right of way for the proposed tunnels; and (xiv) the negotiation of satisfactory terms with impacted First Nations groups. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, but specifically include, without limitation: risks relating to variations in the mineral content within the material identified as mineral reserves or mineral resources from that predicted; variations in rates of recovery and extraction; developments in world metals markets; risks relating to fluctuations in the Canadian dollar relative to the US dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals or settlement of an agreement with impacted First Nations groups; the effects of competition in the markets in which Seabridge operates; operational and infrastructure risks and the additional risks described in Seabridge’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com for the year ended December 31, 2009 and in the Corporation’s Annual Report Form 40-F filed with the U.S. Securities and Exchange Commission on EDGAR (available at www.sec.gov/edgar.shtml info@seabridgegold.net
When relying on our forward-looking statements to make decisions with respect to Seabridge, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Seabridge does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Seabridge or on our behalf, except as required by law.
ON BEHALF OF THE BOARD
“Rudi Fronk”
President & C.E.O.
For further information please contact:
Rudi P. Fronk, President and C.E.O.
Tel: (416) 367-9292 • Fax: (416) 367-2711
Email: info@seabridgegold.net
Copper Creek Gold Provides Update on Santa Lucia Property
Just two weeks ago we bought shares of Copper Creek Gold @ CAD$0.075 Today the company officially announced the exploration plans for the Santa Lucia Property, Sonora, Mexico. Copper Creek may earn an undivided 60% interest in the Santa Lucia Gold Property from Kootenay Gold by spending $2,000,000.00 on exploration and making various cash and share payments over a four year period.
Copper Creek Gold / Kootenay Gold News Release:
VANCOUVER, BRITISH COLUMBIA – December 8, 2010 – Copper Creek Gold Corp. (“Copper Creek” or the “Company”; TSX VENTURE: CPV) wishes to update shareholders on its current exploration plans for its Santa Lucia project in the State of Sonora, Mexico. Recently, representatives from Copper Creek and its option partner, Kootenay Gold Inc., met in Ciudad Obregon, Mexico. Staging from there, the team travelled to the Santa Lucia site, inspected old workings, and conducted reconnaissance prospecting on the Santa Lucia North project. A number of grab samples were taken and submitted to ALS Chemex Labs in North Vancouver, British Columbia, for analysis. Various exploration strategies were discussed and plans for the 2011 exploration program were finalized.
The Company plans to begin a comprehensive exploration of the Santa Lucia project beginning in late January, 2011. The initial program will entail detailed mapping and mechanical trenching of the La Fortuna zone where high grade gold values have been uncovered on surface from highly silicified quartz veins and stockwork to the west of old artisanal mining pits. This trenching will help to establish specific drill targets in the La Fortuna area.
Subsequently, the Company plans to mobilize a drill to the property in March to target the high grade La Fortuna area, as well as to test CSAMT (Controlled-Source Audio-Frequency Magneto-Telluric) and IP resistivity anomalies that were discovered by Cominco Ltd. in the 1990′s. These anomalies remain untested, and underlie surface gold mineralization for approximately 4km.
An independent consulting geologist has been retained by the Company to produce an NI 43-101 compliant report on the Santa Lucia property as required by the TSX Venture Exchange.
The Company can earn a 60% interest in the Santa Lucia property from Kootenay Gold Inc. by spending $2,000,000.00 on exploration and making various cash and share payments over a four year period.
About Copper Creek Gold:
Copper Creek Gold Corp. is a Canadian based mineral exploration company actively exploring in Northern British Columbia and Mexico. The Company holds two exploration projects, the Bonsai Property located in the Eskay Creek region of Northwest British Columbia, Canada, and the Santa Lucia Gold Property located at Sonora, Mexico. The Company may earn up to a 70% interest in the Bonsai property from Teuton Resources Corp. and a 60% interest in the Santa Lucia property from Kootenay Gold Inc. subject to approval by the TSX Venture Exchange.
ON BEHALF OF THE BOARD
James Anderson, President
FOR FURTHER INFORMATION CONTACT
James Anderson, President
Tel. 604-662-3004, ext. 105
Cell: 778-989-5346
james777anderson@gmail.com
First Majestic: La Parrilla Expansion to 1,600 tonnes!
First Majestic achieved significant production ramp up throughout 2010 at their La Encantada project after a successful expansion. Today the company announced a similar upgrade for their La Parrilla project. The budget for this operation is US$27.3 million. All the required capital will be funded internally by cash flows. Completion will be in phases starting with the land clearing and preparation (already started, December 1) and finishing with the expansion of the cyanidation circuit early in the first quarter of 2012.
This day was a beautiful day for silver, the highest price since 1980 was reached and finally breaking through the $30.00 mark. First Majestic gained 6.68% just today. We bought First Majestic in September 2009 @ CAD$2.66 it closed @ CAD$13.58 today, that means a whopping 410% gain! We sold 35% of our shares in First Majestic today to take profit. We will use the capital in the next big correction. We are following many interesting companies at the moment and are almost ready to announce a new stock pick! We will take this “additional time” at all-time highs to continue to read year reports, news releases, websites, geological reports and make sure to pick the next First Majestic when the in inevitable correction comes. We will probably wait till gold goes back to about $1385 again, for silver a pull-back to $29 might be a interesting moment to step in.
First Majestic News Release:
First Majestic Silver Corp. is pleased to announce the expansion of its 100% owned La Parrilla Silver Mine, located in Durango, Mexico has commenced. The extremely successful completion of the expansion of the Company’s La Encantada Silver Mine has allowed management to focus its efforts on the Company’s next major expansion project with ground breaking that started on December 1st, 2010.
During the past three years the La Parrilla mine has undergone extensive development to prepare the mine for higher production levels. During the past six months this expansion plan has been assessed and defined to optimize the La Parrilla operation into the future. Once this construction project is completed, the La Parrilla mine will be operating at twice current levels. This expansion will result in the mill capacity reaching 1,600 tpd from the current 850 tpd and will effectively double the current output of the La Parrilla operation from approximately 1.5 million ounces to 3.0 million ounces of silver equivalent annually.
The following activities have been achieved to date:
- Engineering and design work has been completed for the expansion of the processing plant including a new and larger crushing area, the addition of a third ball mill and the increase of capacity of both the flotation and cyanidation circuits. Each circuit’s capacity is currently 425 tpd and once the expansion is completed, each circuit will continue to run in parallel but at the higher rate of 800 tpd for a total capacity of 1,600 tpd.
- Engineering plans for the Rosarios/La Rosa, San Marcos, Quebradillas and Vacas mines have been defined and scheduled, including the planning of development and preparation of required production areas, planning and scheduling the construction of a new production shaft for the Rosarios mine, and all other required mine infrastructure to achieve the expanded production levels.
- All final documentation required for the Environmental Impact Statement and the ‘Change of use of Land’ have been submitted to the SEMARNAT (the government environmental authorities) office in Durango, with final approvals expected prior to year end.
Timelines for the Construction Project:
- Land clearing and preparation activities commenced on December 1st, 2010
- Construction of the new crushing area will begin in January 2011. A new third ball mill has already been purchased and is on site and is expected to be ready for installation by June 2011.
- The expansion of the flotation circuit is planned for completion by the end of July 2011. This new circuit will produce both a lead and zinc concentrate. A full year of production at 800 tpd is expected to produce 5,673,096 pounds of lead and 5,236,704 pounds of zinc. In flotation, the silver will report to the lead concentrate which is expected to contain 1,429,991 ounces of silver annually.
- The expansion of the cyanidation circuit will follow in the second half of 2011 with the replacement and expansion of eight leach tanks and the construction of four additional leach tanks. Several new technologies will also be utilized; similar to those adopted in the Company’s recently completed La Encantada operation. These items will include; new clarification filters, new induction furnaces and new filter presses for the tailings in order to recover and re-use solution and to save on water consumption. In addition, the plan includes new systems for automation of feeding processes for chemicals and reagents.
- Inauguration of this newly expanded cyanidation circuit is expected to take place early in the first quarter of 2012. Once completed, this larger 800 tpd cyanidation circuit will produce an additional 899,792 ounces of silver in the form of silver Doré bars annually.
The total capital budget for this expansion is US$27.3 million, consisting of: US$17.7 million for plant equipment and construction costs; US$2.6 million for additions to the underground fleet; US$3.8 million for underground mine development and US$3.2 million for infrastructure including a new power line and substation. All required capital for this expansion project will be funded internally from cash flows.
The internal rate of return (IRR) on this investment is expected to be 126% considering a price of silver of US$20.00 per ounce and lead and zinc prices of US$1.00 per pound.
Once in full operation at the newly expanded rate of 1,600 tpd, the La Parrilla Silver Mine will produce 3.0 million silver equivalent ounces annually consisting of 2.3 million ounces silver and 0.7 million ounces of silver equivalents in the form of lead and zinc. The expected Total Cash Costs are anticipated to be US$5.50 per ounce of silver.
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
“Signed”
Keith Neumeyer, President & CEO
This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Rubicon Announces 4.0 Million Ounce Inferred Gold Resource Estimate Grading 20.1 g/t gold (0.59 oz/ton gold) at its Phoenix Gold Project, Red Lake, Ontario
Today Rubicon announced the results of the Geoex Limited research of the Phoenix Gold Project. These results are no surprise to us, many investors seemed to be surprised, since the stock gained 33,26% today! We bought Rubicon in July of this year at a price of CAD$3,49 at today’s closing of CAD$6,13 meaning a 75,6% gain. We are not selling Rubicon. We expect the company to ad value for it’s shareholders for years to come. Production at the Phoenix Gold Project will able the company to aggressively explore their other projects, and thereby adding even more to their inferred resources.
Rubicon News Release:
- Total geological potential of F2 Gold System 13.3 to 16.1 million ounces grading 24.4 to 26.8 g/t -
TORONTO, Nov. 29 /CNW/ – Rubicon Minerals Corporation (RMX:TSX | RBY:NYSE-AMEX) (“Rubicon”) is pleased to provide a NI 43-101 compliant inferred mineral resource estimate for the F2 Gold System, part of its 100%-owned Phoenix Gold Project located in the heart of the prolific Red Lake Gold District of Ontario. The estimate is summarized below:
| Inferred Resource (5 g/t cutoff & 10 gram x metre product minimum) | Tonnes | Grade (g/t) | Grade (oz/ton) | Contained ounces |
| Total Inferred Resource | 6,200,000 | 20.1 | 0.59 | 4,007,000 |
The inferred mineral resource estimate was prepared by Geoex Limited. (“Geoex”) based on 166,886 metres of diamond drilling in 237 drill holes carried out between February 27, 2008 (the date of the initial discovery) and July 31, 2010. The estimate does not include approximately 41,702 metres of drilling completed since July 31, 2010. The inferred resource estimate was prepared using the polygonal calculation method (see below for details) which, in the opinion of Geoex, is the appropriate method and is typically used for this type of deposit. The cut-off used is considered to be an economically reasonable estimate of breakeven mining costs.
“We are very pleased with these initial results. They demonstrate that the F2 Gold System is already a significant sized gold deposit. Importantly, the gold grade of 20.1 g/t gold is high compared to most major gold deposits around the world and is consistent with the overall Red Lake camp average grade, which is Red Lake’s key advantage. Our objective now, through our ongoing delineation program is to upgrade part of this large inferred resource, move towards development and to continue to expand the gold system. Underground development on the project has already cross-cut mineralized zones at the 305 metre level and delineation drilling is underway. Photographs of the new zones are available on the Company website at www.rubiconminerals.com.” stated David Adamson, President and CEO.
Geological Potential
In addition to the above referenced inferred resource estimate, Geoex carried out an evaluation of geological potential based on an analysis of the distribution of current drilling (strike length of 898 meters as of July 31,2010) and opportunity for infill and expansion drilling to depth. The system remains open along strike and to depth beyond the current limit of drilling.
The geological potential is based on the projection and extrapolation of the inferred resource present between 0 to 500 metres below surface as this area is considered well drilled and contains an inferred resource of 3,400,000 tonnes containing 2,680,000 oz at 24.4 g/t or 0.71 oz/ton. In the area between 500 and 1500 metres below surface, drilling is wider spaced and thus large parts of the system in this area have not been adequately drill tested, however, in the opinion of Geoex, based on a review of project data, experience from elsewhere in Red Lake and general observations on lode gold deposits, the grade and tonnage profile of the area above 500 metres is likely to be replicated to depth with additional drilling. The results of this analysis are summarized in the table below:
| Depth | Potential Tonnes | Potential Grade | Potential Ounces |
| Above 500m (well drilled) | 3,400,000 to 3,700,000 | 24.4 to 26.8 g/t | 2,680,000 to 3,190,000 |
| 500-1500 metres (wide spaced drilling) | 6,800,000 to 7,500,000 | 24.4 to 26.8 g/t | 5,330,000 to 6,460,000 |
| 1500-2500 metres (no drilling – open) | 6,800,000 to 7,500,000 | 24.4 to 26.8 g/t | 5,330,000 to 6,460,000 |
| Total to 2500 metres (open at depth) | 17,000,000 to 18,700,000 | 24.4 to 26.8 g/t | 13,340,000 to 16,110,000 |
The potential tonnages, grades and ounces set forth in the analysis of geological potential are conceptual in nature, as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
“From the early days of the discovery, we have always recognized that we are exploring a very robust and large mineralizing system, which is why we have dedicated significant drilling efforts to the 9X target area. As suggested by Geoex, the current 4.01 million ounce inferred gold resource may be only a small part of the overall gold potential of the F2 Gold System. Large areas remain to be infill-drilled and the system is open in all directions. We should also point out, we own 40% of the exploration real estate in Red Lake giving us a unique opportunity to find the next F2 Gold Deposit,” stated David Adamson, President and CEO.
Geoex will prepare an NI 43-101 compliant technical report in respect of the inferred resource estimate and geological potential discussed in this release which Rubicon will file on SEDAR within 45 days of the date this release was disseminated, and plans to complete a Preliminary Economic Assessment in respect of the F2 Gold System by the end of Q1, 2011.
Resource Calculation Methodology
The construction of the polygonal and block models was a product of collaboration between Rubicon and Geoex. Rubicon personnel included Matt Wunder P.Geo, V.P. Exploration and Eric Hinton P.Eng., Project Manager. All data in the resource evaluation were reviewed by Geoex with Mr. Peter George of Geoex assuming responsibility for the resource and geological potential estimates upon which the statements reported herein are based.
Polygonal Resource calculation
Source assay data were audited by a third party consulting firm (IoGlobal) specializing in data management and QA/QC analysis and composite intervals were calculated utilizing a minimum three and also a five gram cut-off and minimum 10 gram times metre product for all F2 system data to July 31, 2010. No top cut was applied to the data because, in the opinion of Geoex there is insufficient geostatistical data to properly determine an accurate top cut value at this time. The X, Y and Z centroid points were calculated and horizontal thickness for each composite interval was calculated utilizing a set of east-west cross sections (local mine grid). The composite intervals were classified by geological unit and centroid points for each composite interval were plotted on long sections for each geological domain utilizing AMine software. Individual zones were then interpreted in AMine.
The interpretation is largely based on a series of detailed cross sections confirming geological continuity vertically down dip and along strike (mine grid north-south). Polygons were plotted on long sections for each sub zone with ellipse parameters for the inferred resource of 75 metre vertical radius and 37.5 metre horizontal radius. Polygons were clipped where overlapping, clipped where the claim boundary and 15 metres below where the lake bottom surface was contacted. Polygon areas were calculated for each centroid point, horizontal thickness was applied to determine the volume, a specific gravity (“SG”) of 2.85 g/cm3 was applied, being derived from the average SG in preliminary metallurgical studies (see news release dated October 19, 2010). The volume of each polygon was calculated and assigned a gold grade. The sum of the polygons constitutes the inferred resource.
Block Model calculation
In addition to the polygonal resource calculation, as a means of validating the inferred resource estimate by an independent method, a block model was calculated utilizing Surpac software resulting in 5,830,000 tonnes, 3,210,000 ounces at 17.2 g/t or 0.50 opt. The block model results are within 6.7% of the tonnage, 17.1% of the contained ounces and 24.9% of the grade of the polygonal estimate (6,200,000 tonnes, 4,007,000 ounces at 20.1g/t gold or 0.59 opt). While Geoex does not consider the block model the most appropriate method for this type of deposit, the results are considered to provide strong supporting validation for the preferred polygonal estimate reported above. It should be noted that the block model results do not differ significantly regardless of whether a northeast (East Bay trend) or northwest (F2 trend) oriented search ellipse is used in the block model.
Data were audited prior to completion of the block model. For this inferred resource estimate, the data were treated as one domain. Assay data were composited at 1.0 metre intervals (no top cut was applied) and variogram analysis was completed. Two times the variogram range was utilized for oriented search ellipse parameters (list parameters) for the inferred resource calculation. A block size of 2m (E-W) by 4m (N-S) by 12m (vertical) was selected through an optimization process. Data were constrained by the lake bottom surface, the claim boundary and a western boundary was included to exclude any unrelated drilling carried out prior to February 2008. A SG of 2.85 g/cm3 was utilized.
Rubicon is a well-funded exploration and development company, focused on exploring and developing its high-grade gold discovery at its Phoenix Project in Red Lake, Ontario. Rubicon controls over 100 square miles of prime exploration ground in the prolific Red Lake gold district of Ontario which hosts Goldcorp’s high-grade, world class Red Lake Mine.
RUBICON MINERALS CORPORATION
“David W. Adamson”
President & CEO
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resources in this press release were estimated using CIM Standards.
Qualified Persons
Rubicon has implemented a rigorous QA/QC program to ensure best practices in the sampling and analysis of drill core. Assays were conducted on sawn NQ-sized half core sections. Delineation drilling intercepts represent true horizontal width. The saw blade is routinely cleaned between samples when visible gold is noted during logging and sampling of the drill core. Assays were conducted by SGS Minerals Services using standard fire assay on a 30 gram (1 assay ton) sample with a gravimetric finish procedure. Assays are uncut as is standard practice in Red Lake. Standards, blanks and check assays were included at regular intervals in each sample batch. Check assays on 5% of samples are carried out at a third party independent laboratory. Gold standards were prepared by CDN Resource Laboratories Ltd. Exploration drill programs and all data forming the basis of the inferred resource estimate described in this release were supervised and verified by Terry Bursey, P.Geo,. Regional Manager for Rubicon and a Qualified Person as defined by NI 43-101. All data required for the block calculation described in this release was prepared and verified by Eric Hinton, P.Eng, Project Manager of Rubicon and a Qualified Person as defined by NI 43-10. The inferred resource estimate, including the polygonal resource calculation and the block model calculation, and the geological potential analysis were prepared by Peter George, P.Geo., President and consulting geologist of Geoex, an independent Qualified Person as defined by NI 43-101, and he verified all data received from Rubicon in connection with same.
Cautionary Note to U.S. Readers Regarding Estimates of Measured, Indicated and Inferred Resources
This press release uses the term “inferred resources.” We advise U.S. investors that while this term is recognized and required by Canadian regulations, it is not recognized by the SEC. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Under Canadian rules, estimates of “inferred mineral resources” may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute “reserves” as in-place tonnage and grade without reference to unit measures. The term “contained gold ounces” used in this press release is not permitted under the rules of the SEC. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.
Forward Looking Statements
This news release contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934 and “forward looking information” within the meaning of applicable Canadian provincial securities legislation (collectively, “forward-looking statements”) . Forward-looking statements often, but not always, are identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “targeting” and “intend” and statements that an event or result “may”, “will”, “should”, “could”, or “might” occur or be achieved and other similar expressions. Forward-looking statements in this document include statements regarding estimates of mineral resources, estimates of gold grades and in-place ounces, the preparation and timing of a technical report in respect of the inferred resource estimate and the proposed Preliminary Economic Assessment and the timing and nature of future exploration programs. Our exploration programs are dependent on projections which may change as drilling continues, or if unexpected ground conditions are encountered. In addition, areas of exploration potential are identified which will require substantial drilling to determine whether or not they contain similar mineralization to areas which have been explored in more detail. The description of the extent of mineralized zones is not intended to imply that any economically mineable estimate of reserves or resources exists on the Phoenix project. Similarly, although geological features of the F2 Gold System are interpreted to show similarities to nearby gold producing mines owned by third parties, this should not be interpreted to mean that the F2Gold System has, or that it will generate similar reserves or resources. Significant additional drilling is required at F2 to fully understand system size before a meaningful resource calculation can be completed.
The forward-looking statements that are contained in this news release are based on various assumptions and estimates by Rubicon and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Rubicon to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; results of exploration, availability of capital and financing on acceptable terms, inability to obtain required regulatory approvals, unanticipated difficulties or costs in any rehabilitation which may be necessary, market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions, including assumptions regarding general market conditions, timing and receipt of regulatory approvals, the ability of Rubicon and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. Although Rubicon has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this news release and Rubicon disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking 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.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Source: Company website
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