Gold-Ore Resources Ltd.
TSX VENTURE : GOZ

Gold-Ore Resources Ltd.

October 28, 2009 09:00 ET

Gold-Ore Reports Resource/Reserve Statement for Bjorkdal Gold Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 28, 2009) - Gold-Ore Resources Ltd. (the "Company") (TSX VENTURE:GOZ) is pleased to report the results of the recently completed resource and reserve estimate for the 100% owned Bjorkdal Gold Mine in Sweden. The Bjorkdal Gold Mine has been in operation for 19 of the last 21 years and this new reserve estimate outlines 4.0 million tonnes of ore sufficient for another 3.7 years of operations. The measured and indicted resources generate an additional 6.9 million tonnes available for conversion to reserves.

Resources
Wardell Armstrong International Ltd. (WAI) was commissioned to provide Gold-Ore with a resource estimate, which separated the deposit into resources amenable to open pit mining and those that would be mined underground. WAI used Datamine software and Indicator Kriging, incorporating all drill data up to March 2009, a total of 4,475 drill holes with a nominal spacing of 30 metres. The resource estimate complies with JORC 2004. Table 1 lists the tonnage and grade for the open pit and underground resources, and Table 2 lists the corresponding ounces of gold for each category.

Table 1: Open Pit & Underground Mineral Resource Estimate – Tonnages and Grade

Resource
Type
Cut-offMeasuredIndicatedMeasured + IndicatedInferred
 Au
(g/t)
Tonnage
(000's t)
Au (g/t)Tonnage
(000's t)
Au (g/t)Tonnage
(000's t)
Au (g/t)Tonnage
(000's t)
Au (g/t)
Open Pit0.603942.254,0712.074,4652.095,7431.79
Underground1.007962.791,6112.942,4072.891,9272.62

Evaluation (2.5 m Selectivity) Adjusted for a 91% Mining Recovery and 30% Mining Dilution

Table 2: Open Pit & Underground Mineral Resource Estimate – Ounces

Resource
Type
Cut-offMeasuredIndicatedMeasured + IndicatedInferred
 Au
(g/t)
Au
(Ounces)
Au
(Ounces)
Au
(Ounces)
Au
(Ounces)
Open Pit0.6028,505270,964299,469330,546
Underground1.0071,410152,294223,704162,339

Evaluation (2.5 m Selectivity) Adjusted for a 91% Mining Recovery and 30% Mining Dilution

Reserves
After completing the resource estimate, WAI calculated mineable reserves for open pit and underground mining. To establish open pit reserves WAI completed a Pit Optimisation Study using Net Present Value Scheduler software and evaluated four different resource scenarios at different gold prices. The scenario selected for the pit mine design was the one that only included measured and indicated resources that would not impact the underground development. The Open Pit Design Module of Datamine was used to delineate the reserves. The mineable reserves include a dilution factor of 30% and 91% mining recovery. The economic cut-off grade was determined to be 0.45 grams per tonne gold at a gold price of $200 Swedish krona per gram (US$806 per ounce).

To calculate the underground reserves WAI updated the underground resources based on modelling individual veins for the area extending beyond the north wall of the current pit and within the area bounded by the current mine development. Of the Measured and Indicated resources considered, approximately 30% was included in proven and probable ore. Measured and Indicated resources, north and south of the area examined in the study, will be added to reserves as additional diamond drilling and development in these areas allows conversion. This resource estimate was based on a minimum vein thickness of 1.0 metres. No dilution was applied to the estimate. The resource estimate for this part of the study used ordinary Kriging.

The mine design, including the stopes, was modelled in Mine 2-4D software. A dilution factor of 25% was applied and a mining recovery of 95%. A cut-off grade of 1.3 grams per tonne gold was used for the development and a cut-off grade of 1.0 grams per tonne gold was used for the stopes. Proven and probable reserves for the open pit and the underground are listed in Table 3.

Table 3: Mineable Reserves Estimate – Tonnages, Grade & Ounces

Mine DesignCut-off
Grade
ProvenProbableProven & Probable Reserves
 Au
(g/t)
Tonnage
(000's tonnes)
Grade Au (g/t)Tonnage
(000's tonnes)
Grade
Au (g/t)
Ounces
Open Pit0.454971.153,0711.13129,945
Underground1.00/1.301702.39 2872.50 36,128
Totals 667 3,358 166,073

Economic Parameters for Conversion of Resources to Reserves
The Bjorkdal Gold Mine began operations in 1988 and has produced for 19 of the last 21 years, and continuously since 2001. The Bjorkdal processing plant has now milled over 19.7 million tonnes of ore and has produced 960,000 ounces of gold. The economic parameters used for converting resources to reserves were based on actual operating conditions at Bjorkdal for the period December 2008 to August 2009 and are listed below:

  • Mechanized underground mining methods – long hole stoping and lateral sub-level jumbo development
  • Open pit methods using blast hole drill rigs on 5 metre benches using standard truck and shovel excavation
  • Processing throughput of 3,200 tonnes/day for 350 days/year or 1.1 million tonnes per annum
  • Processing flow sheet includes crushing, grinding with gravity and flotation beneficiation to recover gold
  • Average plant recoveries at 90%
  • Refinery and smelter contracts established with payable gold at 94%
  • Average underground costs including mining, transportation, milling and G&A at Swedish krona $233 (US$ 29.20) per tonne
  • Average open pit costs including mining, transportation, milling and G&A at Swedish krona $110 (US$ 13.78) per tonne
  • Average Swedish krona to US dollar exchange rate (Dec 2008 to August 2009) at 7.98:1

Glen Dickson, CEO of Gold-Ore stated, "We are pleased to have a reserve statement that indicates a multi-year mine life at Bjorkdal, although there is a significant amount of resources that could not be included in the reserves because of the drill hole density. However, our underground drill program continues to define those resources, and we are confident that a large percentage of the underground resources will be converted to reserves as the mine development advances."

About Gold-Ore
Gold-Ore Resources is a gold mining and exploration company focused in Sweden. The Company is generating positive cash flow, is debt-free and unhedged, and remains focused on increasing gold production from the 100%-owned Bjorkdal Gold Mine. In addition to Bjorkdal, the Company also has other assets in the country; the Ronnberget Gold Property (adjacent to Bjorkdal), the Norrliden Polymetallic Deposit and the Vallberget Polymetallic Property.

ON BEHALF OF THE BOARD
Glen Dickson, Chairman and CEO

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

News Release 09-14

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gold-Ore Resources Ltd.
    Glen Dickson
    (604) 687-8884
    or
    Gold-Ore Resources Ltd.
    Bob Wasylyshyn
    (604) 687-8884
    or
    Gold-Ore Resources Ltd.
    Ron Ewing
    (604) 687-8884
    (604) 629-0400 (FAX)
    www.goldoreresources.com