Adventure Gold Inc.

TSX VENTURE : AGE


Adventure Gold Inc.

November 21, 2012 08:30 ET

Adventure Gold Outlines Inferred Resources of 770,000 Ounces of Gold and Releases New Drilling Results at Pascalis

MONTREAL, QUEBEC--(Marketwire - Nov. 21, 2012) - Adventure Gold Inc. (TSX VENTURE:AGE) (the "Company") is pleased to provide the results of its initial NI 43-101 compliant resource estimate on its 100%-owned Val-d'Or East Pascalis project. This resource estimate, independently prepared by SGS Canada Inc., was based on exploration drilling programs performed by AGE at Pascalis, in the vicinity of the former Beliveau Gold Mine. The resource estimate confirms a significant gold inferred resource totaling 770,000 ounces of gold in 9,130,000 tonnes at 2.63 grams per tonne of gold (g/t Au) close to existing infrastructures (see Figures 1 and 2 available on the Company website). SGS Canada Inc. suggests that the inferred resources outlined have significant prospects for production with surface and underground bulk mining operation techniques. The Pascalis property is located 25 kilometers from Val-d'Or and therefore close to all required infrastructure for a proper development. Key infrastructure for the project: a currently existing 340-metre deep shaft, underground development drifts on five levels, industrial access road, power line, a railway within 1.5 kilometres and custom milling facilities in Val-d'Or.

Given its initial success, the Company will continue its work toward re-opening the Beliveau mine where 167,000 ounces were extracted in the 90's by Cambior (now Iamgold). Marco Gagnon, Adventure Gold president and CEO declares "today's announcement is a big step forward for the Company. This resource estimate continues to show the merit of our efforts as we are on track to deliver on the value of this asset."

Considering the positive results of the resource estimates and the fact that most of the gold mineralization is covered by a thin layer of overburden, generally 0 to 5-metres thick, the Company has authorized the consultant to proceed with a Whittle-optimized pit shell simulation using a lower cut-off grade for the near surface gold zones. These results will be included in the full NI 43-101 technical report that will be filed on SEDAR within 45 days.

Resource estimate highlights include the following:

The selected base case inferred resource is 770,000 ounces (9.13 million tonnes grading 2.63 g/t Au, capped at 30 g/t), using cut-off grades of 1 g/t Au (surface to 350 metres depth) and 1.5 g/t Au (350 metres and below). SGS Canada outlined three gold deposits over a 1500-metre long strike, up to 900 metres deep and 600 metres wide. The mineralized system is still open at depth and laterally.

SGS Canada Inc. (SGS Geostat office of Blainville, Que.) is the independent resource estimate consultant for the Val-d'Or East Pascalis project. The Qualified Persons at SGS have authorized the release of the following estimates for the New Beliveau, Highway and North Zone gold deposits included in, "Table 1: Pascalis in situ inferred resource estimates at November 19, 2012" that summarize its block model estimates using variable cut-off grades.

TABLE 1: PASCALIS IN SITU INFERRED RESOURCE ESTIMATES AS OF NOVEMBER 19, 2012

Surface to 350 m Tonnage Au g/t Au Oz
Cut-off 1.0 g/t Au
New Beliveau 5,440,000 2.62 460,000
North Zone 780,000 1.84 50,000
Highway 1,110,000 1.61 60,000
Total 7,320,000 2.38 560,000
350 m and below Tonnage Au g/t Au Oz
Cut-off 1.5 g/t Au
New Beliveau 1,800,000 3.63 210,000
Total 1,800,000 3.63 210,000

All elevation base case - cut-off 1.0 g/t Au from surface to 350 m and 1.5 g/t at 350 m and below

Tonnage Au g/t Au Oz
New Beliveau 7,240,000 2.87 670,000
North Zone 780,000 1.84 50,000
Highway 1,110,000 1.61 60,000
Total 9,130,000 2.63 770,000

The mineral resource estimate has been calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definitions Standards for mineral resources in accordance with National Instrument 43-101-standards of Disclosure for Mineral Projects.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. Results are presented undiluted and in situ.

Capping of 30 g/t used over 1m.

Tonnages and ounces are rounded to nearest ten thousand.

Numbers may not total due to rounding.

Details on the parameters of the resource estimates:

  • The database used for Pascalis includes drilling obtained from AGE 2009-2012 drill programs.
  • Most NQ assays reported by AGE were obtained by standard 50-gram fire assaying-AA finish or gravimetric finish and another fraction by screen metallics at various laboratories (Technilab SGB and AGAT Laboratories).
  • The estimates were done using inverse distance square (ID2) as the interpolation method based on 2 metre analytical composites. Composites calculations are based on original samples value capped based on metal factor at 30 g/t Au for 1 metre.
  • The New Beliveau estimates are based on a parent cell dimension of 3 metres East, 5 metres North and 2 metres height. The North Zone and Highway estimates are based on a parent cell dimension of 5 metres East, 3 metres North and 2 metres height. Four search ellipsoids were used in four estimation steps with the biggest ellipsoid always being of 100 m, 100 m and 33 m of radiuses. The orientation of the ellipsoids was based on the zones' geometry. Each mineralized structure (New Beliveau: 5 dikes and 16 shallow dipping structures, North Zone: 3 dikes and 9 shallow dipping structures and Highway: 12 shallow dipping structures) was estimated separately using its respective composites.
  • The interpretation for the mineralized structures was done on sections from which solid meshes were generated. Volumes were then validated by 3D visualization. Only the 5 near vertical dikes of the New Beliveau deposit were modeled on horizontal level plans at every 10 metres. True thickness of the mineralized structures range from about 3 to 80 metres.
  • For the classification, while some areas would qualify for some higher classification, it has been decided to simplify the initial resource estimates by placing all resource in the inferred category. Given the good structural understanding of the geological systems, some of the resource estimate is as far as 100 metres from the drill hole information in some areas.
  • Underground voids (shaft, ramp and drifts) were modeled from historical mine plans and adjusted according to positions of drill intersections in stopes and drifts. Historical underground production has been subtracted from the resource estimate.
  • Tonnage estimates are based on rock densities of 2.8 tonnes per cubic metre.
  • Additional details will be provided in the technical report.

Phase 3 drilling results

The Company also announces the final results from the Phase 3 exploration surface diamond drilling programs. Results come from the last 10 holes totalling 3,673 metres drilled south of the Former Beliveau mine, Zone 2 / Isabella and Highway / Loraine areas. Table 2 shows all significant results and figure 3 shows the location of drill holes. The best intercepts, in core length, are summarized as follows:

Beliveau South Area

  • Hole PC-12-58: 2.1 g/t Au over 22.5 metres;
  • Hole PC-12-60: 2.0 g/t Au over 7.3 metres including 4.3 g/t Au over 3.3 metres;
  • Hole PC-12-64: 1.5 g/t Au over 13 metres including 2.5 g/t Au over 10.3 metres.

Zone 2 Area

  • Hole PC-12-61: 0.5 g/t Au over 82.1 metres including 3.0 g/t Au over 2.7 metres and 4.1 g/t Au over 3.0 metres.

Figures 1 to 3 are available at :

http://www.adventure-gold.com/common/documents/Figure1_depositslocationmap_PC_20nov2012.pdf

http://www.adventure-gold.com/common/documents/Figure2_Pascalis_VueIso_LB_20nov2012.pdf

http://www.adventure-gold.com/common/documents/Figure3_Pascalis_ddh2012lastresults_20nov2012.pdf

Table 2: Final set of results from Phase 3 drilling program on Pascalis-Colombiere property.

Drill hole UTM
East
UTM
North
Azimuth Dip Length
(m)
From
(m)
To
(m)
Core length*
(m)
Au**
(g/t)
Beliveau West & South
PC-12-58 312736 5334882 360 -54 549 271.0 273.0 2.0 2.2
303.0 309.0 6.0 1.1
476.5 499.0 22.5 2.1
Inc. 476.5 481.6 5.1 7.5
495.0 499.0 4.0 1.9
522.3 525.2 2.9 2.1
PC-12-60 312832 5334799 355 -58 379 244.5 251.8 7.3 2.0
Inc. 244.5 247.8 3.3 4.3
PC-12-62 312884 5334799 360 -62 600 209.0 210.5 1.5 2.0
360.6 362.0 1.4 1.4
517.0 520.0 3.0 1.2
PC-12-64 312686 5334954 360 -55 432 65.0 67.0 2.0 1.4
264.0 274.0 10.0 0.9
Inc. 264.0 266.5 2.5 1.9
303.0 310.5 7.5 1.0
330.0 343.0 13.0 1.5
Inc. 333.4 337.4 4.0 2.8
361.0 371.3 10.3 2.5
Inc. 362.0 365.1 3.1 6.9
Zone 2 & Isabella
PC-12-61 312986 5334549 358 -48 261 123.6 205.7 82.1 0.5
Inc. 133.0 135.7 2.7 3.0
Inc. 154.5 157.5 3.0 4.1
PC-12-63 312986 5334530 358 -45 186 NSV
PC-12-65 313159 5334755 164 -70 323 NSV
Highway & Loraine
PC-12-66 311930 5335876 357 -52 375 73.0 78.0 5.0 0.7
Inc. 73.0 74.0 1.0 1.4
PC-12-67 311907 5335735 357 -50 465 129.9 135.5 5.6 0.9
Inc. 134.1 134.7 0.6 4.5
PC-12-68 311932 5335911 355 -45 102 215.2 219.3 4.1 1.1
Inc. 215.2 217.2 2.0 2.2
230.7 238.2 7.5 0.5
Inc. 236.1 238.2 2.1 1.2

* Reported gold intersections are measured along the hole. ** Uncut gold value.

Qualified Person and Quality Control

Yann Camus, Ing. and Claude Duplessis, Ing, both of SGS Canada Inc. are the independent Qualified Persons who have reviewed this news release and are responsible for the technical information related to resources reported above, including verification of the data disclosed.

Jules Riopel, P.Geo., Vice-President Exploration and Acquisitions, acting as the Company's "Qualified Person" as defined by NI 43-101, has reviewed this press release and has supervised the exploration program on the Pascalis-Colombiere property.

Assay samples were taken from NQ core sawed in half, with one half sent to Agat Laboratories, a commercial laboratory in Mississauga, Ontario, and the other half retained for future reference. A strict QA/QC program was applied to all samples, which includes mineralized standards and blank samples for each batch of 20 samples. The gold analyses were completed by fire assay with an atomic absorption finish on 50 grams of material. Repeats were carried out by fire assay followed by gravimetric testing on each sample containing 3.0 g/t gold or more. Total gold analyses (Metallic Sieve) were carried out on samples that showed a great variation in gold content.

The Val-d'Or East Project

The Val-d'Or East Project consists of the 100%-owned Pascalis-Colombiere, Pascalis Extension, Senore, Beaufor West and North properties which all together total 107 mining claims covering a surface area of 3,708 hectares. From 1989 to 1993, the Pascalis-Colombiere property was the site of gold production at the L.C. Beliveau Mine, where Cambior Inc. (now IAMGOLD) mined the New Pascalis gold deposit. A total of 1.8 Mt of ore was extracted at a grade of 3.2 g/t Au, from the surface to 300 metres depth (total of 167,000 ounces of gold from the main diorite dyke, official production from Cambior postmortem report, Nov. 1996).

Profile

Adventure Gold Inc. is a mineral exploration company focused on discovering and developing high-quality gold deposits in the Abitibi region located in eastern Canada - one of the richest gold mining areas in the world. Adventure Gold has become, in a few years, an important player in the mineral exploration industry with one of the best portfolios of exploration properties along the main gold-bearing structures of the Abitibi Greenstone Belt. The Company is exploring mainly close to gold mines where mining production infrastructure is already in place, which distinguishes it from several other exploration companies. Adventure Gold's exploration team consists of mining professionals having worked previously for well-established producing companies, who understand industry challenges. The Company owns 100% of the rights on its three main projects namely: Val-d'Or East, Detour Quebec and Casa-Cameron. The Val-d'Or East flagship project encompasses the Pascalis-Colombiere property where Cambior Inc. (now IAMGOLD) produced gold between 1989 and 1993 at the Beliveau Mine. Close to the former mine, Adventure Gold recently discovered a significant new gold system and is actively working on its development. As disclosed in its latest financial statements, the Company is well financed to apply its business plan.

Follow Adventure Gold on:

Twitter: http://twitter.com/Adventure_AGE

LinkedIn: http://www.linkedin.com/company/2253943

The foregoing information may contain forward-looking statements and events relating to the future performance of the Company. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate regulatory authorities. We seek safe harbour.

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.

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