Astur Gold Corporation

TSX VENTURE : AST
FRANKFURT : CDC


Astur Gold Corporation

February 06, 2014 08:00 ET

Astur Gold Announces Updated Mineral Resource Estimate for Salave

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 6, 2014) - Astur Gold Corp. (TSX VENTURE:AST)(FRANKFURT:CDC) ("Astur Gold" or the "Company") is pleased to announce an updated resource estimate for its 100% owned Salave Gold Project in Northern Spain. The resource estimate has an effective date of January 22, 2014 and was prepared by Mine Development Associates, Inc. ("MDA") in accordance with National Instrument 43-101 ("NI 43-101") Standards for Disclosure of Mineral Properties. Astur Gold is currently completing a Feasibility Study on the Salave Gold Project.

Table 1: Salave Project Gold Resources
Cut-off Measured Indicated
g/t Tonnes g/t oz Au Tonnes g/t oz Au
2.0 514,000 5.87 97,000 6,008,000 4.39 847,000
2.5 409,000 6.81 89,000 4,338,000 5.21 727,000
3.0 338,000 7.65 83,000 3,257,000 6.04 632,000
5.0 191,000 10.56 65,000 1,251,000 9.68 389,000
7.0 129,000 12.78 53,000 704,000 12.66 286,000
10.0 78,000 15.67 40,000 387,000 16.22 202,000
Cut-off Measured + Indicated Inferred
g/t Tonnes g/t oz Au Tonnes g/t oz Au
2.0 6,522,000 4.51 944,000 1,078,000 3.05 106,000
2.5 4,747,000 5.35 816,000 631,000 3.63 74,000
3.0 3,595,000 6.19 715,000 378,000 4.24 52,000
5.0 1,442,000 9.80 454,000 69,000 6.89 15,000
7.0 833,000 12.68 339,000 22,000 9.30 7,000
10.0 465,000 16.13 242,000 6,000 12.69 2,000
Note: Rounding may cause apparent discrepancies

Mineral Resources that are not reserves do not have demonstrated economic viability. The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured resource category.

Due to the necessity to maintain a surficial crown pillar in a potential underground operation, all material from the present surface to a depth of 40 meters is not included in the Salave resources. The resource cut-off grade of 2.0 g/t Au was chosen to capture mineralization that is potentially amenable to underground mining, sulfide concentration, and gold recovery using off-site processing. The deposit still remains open to the west for future expansion potential.

"This is the most extensive study done to date on the Salave underground resource, incorporating historic and current drilling, extensive due diligence by independent engineers, high quality QA/QC program, and looking at an underground only mining scenario," stated Cary Pinkowski, Astur Gold's President and CEO. "This is a positive step forward for Astur Gold, as it provides a solid foundation on which to complete our Feasibility Study."

Mineral Resource Parameters and Methods

  • Mineral Resources do not have demonstrated economic viability. Under CIM definitions, mineral resources should have a reasonable prospect of economic extraction. In order to assess the mineral resources, an in situ resource cut-off grade of 2 g/t Au was applied. The resource estimate includes the recently completed 3,031 meters of infill drilling and 51,556 meters of previous drilling conducted on the property.

  • A three-dimensional block model was created for estimating the gold resources at the Salave deposit from data generated by Rio Tinto, Gold Fields, Anglo, Oromet, Newmont, Rio Narcea, Lyndex and Astur Gold, including percussion, RC, and core drill data. This data, as well as digital topography of the project area, was provided to MDA by Astur Gold and incorporated into a digital database in UTM Zone 29 coordinates using the ETRS89 datum.

  • Gold mineralization at Salave occurs within the granodiorite and overlying package of metasedimentary rocks; the gold resources reported herein are restricted to mineralization hosted within the granodiorite. The bulk of the modeled gold mineralization is contained within thick zones of albitized and sericitized granodiorite that generally dip 10 to 20° to the west-southwest, more-or-less sub-parallel to the metasediment/granodiorite contact.

  • The gold resources at the Salave deposit were modeled and estimated by: 1) determining statistical and geological criteria to aid in the modeling of gold mineral domains; 2) interpreting gold mineral-domain polygons on a set of 26 northwest-looking cross sections (292.7°) spaced at 20-meter intervals; 3) rectifying the mineral-domain interpretations on northeast-looking long sections spaced at four-meter intervals; 4) analyzing the modeled mineralization geostatistically to aid in the establishment of estimation and classification parameters; 5) interpolating grades into a three-dimensional block model, using the gold mineral domains to control estimation; and 6) undertaking various checks and re-interpolation runs until optimal results were generated.

  • Due to potential penalties associated with the processing of arsenic-rich gold concentrates, arsenic was modeled in addition to gold. The arsenic was modeled independently of gold, but in an identical manner.

MDA completed an initial draft of the Salave resource model in mid-December 2013. Subsequent to this, Astur Gold received final assays for a sequence of 10 holes drilled in late 2013, which were primarily drilled internal to the deposit as modeled in 2013. These holes were added to the resource database, and the resource model was then updated in January 2014 to include the new Astur Gold core data. The new holes broadly confirm the modeling of the Salave resources. There were several instances where the new data led to small interpretational changes as to the correlation of one intercept of a shallowly dipping zone with that from an adjacent hole, but the most common changes in these zones were in the interpreted widths of mineralized zones. Of particular interest is one hole that was drilled directly down the axis of the main sub-vertical high-grade domain. The results of this hole were remarkably consistent with the 2013 interpretations.

Astur Gold received a positive environmental impact assessment for an underground mine from the Commission for Environmental Affairs of the Principality of Asturias in November 2012 and recently submitted an Amended Environmental Impact Study on December 18, 2013 for plant, tailings, and water discharge approvals for a simplified flotation plant with no cyanide or autoclave. It is expected that tailings will be managed using a state of the art dry stack tailings system. The public consultation period for the Amended Environmental Impact Study ends on February 6, 2014.

The resource estimation for the Salave Gold Project was completed by Mine Development Associates, Inc. under the supervision of Mr. Neil Prenn, who is a Qualified Person as stipulated by National Instrument 43-101 and is independent of Astur Gold. Mr. Prenn has read and approved the contents of this press release as it pertains to the disclosed mineral resource estimate. A technical report including the updated underground resource estimate will be filed on the SEDAR website at www.sedar.com within 45 days.

ABOUT ASTUR GOLD

Astur Gold is developing its 100% owned Salave Gold Project in Asturias, northern Spain. Salave is one of the largest undeveloped gold deposits in Western Europe. The Company received approval for an underground mine from the Commission for Environmental Affairs of the Principality of Asturias in November 2012. Astur Gold is conducting a Feasibility Study on Salave and intends to commence construction upon its completion and receipt of process plant, tailings, and water discharge approvals. The Company is building a partnership with the people of Asturias to generate sustainable economic benefits for the region while balancing the needs of environmental protection and social community development.

ON BEHALF OF THE BOARD

Cary Pinkowski, Chief Executive Officer, President and Director

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. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.

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