Consolidated Thompson-Lundmark Gold Mines Limited

Consolidated Thompson-Lundmark Gold Mines Limited

July 07, 2005 08:00 ET

Consolidated Thompson Announces Results Of 43-101 Review Of The Bloom Lake Iron Ore Property, Quebec & Commencement Of 2005 Work Program

TORONTO, ONTARIO--(CCNNMatthews - July 7, 2005) - Consolidated Thompson-Lundmark Gold Mines Limited (TSX VENTURE:CLM) ("CLM" or "the Company")) is pleased to announce results of the recently completed 43-101 review of the Bloom Lake Iron Ore Property carried out by international consulting firm Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers (WGM), of Toronto. The Bloom Lake property is located in northeastern Quebec in the southwest portion of the Labrador Trough, only 10 km from the Mont-Wright iron mining operation of Quebec Cartier Mining Company. Watts, Griffis and McOuat Limited ("WGM") was retained by CLM to carry out an independent technical study of the property, in particular to confirm that a 1998 "mineral resource" estimate which was prepared on the Bloom Lake deposit by WGM for Quebec Cartier Mines was prepared in accordance with National Instrument 43-101 ("NI 43-101") guidelines and standards and to reclassify the resulting Mineral Resource estimate according to NI 43-101 classification criteria. The report was authored by Richard W. Risto, P.Geo., Senior Associate Geologist, H.E. ("Buzz") Neal, P.Eng., Senior Associate Geologist, and Michael W. Kociumbas, P.Geo., Vice-President and Senior Geologist, all qualified persons under NI-43-101. The study is available online on SEDAR.

Based on the results of the 1998 field exploration and bench-scale metallurgical testing programs and the interpretation of their results, and the review and reclassification of the Bloom Lake Mineral Resource estimate, WGM stated that: "WGM is satisfied that the 1998 estimate was prepared in a manner that respects these requirements and has reclassified the 1998 figures to meet the classification requirements now in place."

The block model Mineral Resource, tabulated by cutoff grade tranches, is summarized in the following table:

Total in situ Mineral Resources at a Cutoff Grade of 15% Total Fe

Resource Volume Tonnage Average
Category bcm(i) tonnes Grades
x 1,000 x 1,000 Total Fe% Magnetite% CaO% MgO%
Measured 141,350 488,465 29.91 10.54 2.32 2.18
Indicated 43,372 149,232 29.29 10.55 2.37 2.15
Meas. + Ind. 184,722 637,697 29.76 10.54 2.33 2.17
Inferred 10,322 35,697 30.97 8.47 0.84 0.82

(i) Bulk cubic metre - A historic unit of measure in the iron ore industry

The Inferred Resource is in addition to the Measured and Indicated Resource.

Based on WGM's knowledge of the geology and mineralogy of the deposit, the limited metallurgical testwork carried out and the economics of the iron deposits of the area, a 15% Fe cutoff grade was used for the Mineral Resource estimate. The Measured and Indicated block model Mineral Resource estimated for the Bloom Lake deposit on the CLM property using a 15% Fe cutoff and an inverse distance squared ("IVD2") grade interpolation technique, totalled 638 million tonnes grading 29.76% Total Fe and 10.54% Magnetite. Measured , indicated, and inferred resources were all calculated and classified using NI 43-101 guidelines and CIM Standards. A 15% Fe cutoff was used and was based on that employed at operating mines in the Labrador Trough exploiting deposits similar to Bloom Lake. Measured Resources are defined as OIF mineralization no greater than 75 m from drillhole intersections within the interpreted geological boundaries. Indicated Resources are defined as OIF mineralization between 75 m and 150 m from drillhole intersections. This mineralization is the deeper OIF and represents larger drillhole spacings and less confidence in the geological interpretation. Inferred Resources are defined as OIF mineralization between 150 m and 400 m from drillhole intersections. This mineralization only occurs on the fringes of the deposit and represents a very minor amount (about 5%) of the OIF.

The following Specific Gravities (SGs) were used:

OIF: Variable Density Model (IVD2)

QR: 2.77; SIF: 3.37; AMP: 3.19; QRIF: 2.94; MS: 2.80

The report also recommended a significant 2005 program designed to establish the optimum bench-scale metallurgical flowsheet for resource material from the deposit and to study, in a preliminary manner, the various parameters, which would determine the economic viability of an eventual mining and processing operation at Bloom Lake.

Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers have been engaged to carry out and manage the 2005 work program and study of the Bloom Lake iron deposit.

The program, which began on June 20, 2005, will consist of the following elements:

- Collecting 10 representative mini-bulk samples of approximately 500 kg each from different portions of the deposit;

- Carrying out a series of grinding and metallurgical bench tests on these samples at SGS Lakefield Research;

- Based on these test results establishing the optimum flowsheet for the Bloom Lake deposit material;

- Carrying out preliminary Capital Expenditure and Operating Expenditure studies;

- Carrying out preliminary marketing and transportation studies;

- Carrying out a preliminary open pit optimization study in a series of runs using Whittle™ software; and

- Combining the results of the studies mentioned above and preparing a preliminary cash flow study and sensitivity analysis of an open pit mining and processing operation at Bloom Lake.

It is expected that the program will be completed in early October.

"We are very pleased to have confirmed the resource size and quality of the Bloom Lake Deposit and to have a firm with the experience and reputation of WGM undertaking the ongoing work program. The Bloom Lake property represents a significant resource of Iron Ore located in an area with substantial existing mining and transportation infrastructure. Iron Ore prices have also risen significantly over the last year due to rising global demand, greatly improving the economics in the global iron ore industry and of the Labrador area as well as the attractiveness of the Bloom Lake deposits." stated Stan Bharti, President and Chief Executive Officer of Consolidated Thompson-Lundmark Gold Mines Ltd.

Doug Currie, MAusIMM, consultant to the Company, is the Qualified Person for this release under NI-43-101.

Consolidated Thompson-Lundmark Gold Mines Ltd. is an exploration and development company. The Company has approximately 10 million shares outstanding and trades on the TSX Venture exchange under the symbol (CLM).

The Company is advancing the Bloom Lake Iron Ore Property, located in Duplessis County, Quebec, on the south end of the Labrador Trough, approximately 400 km north of Sept-Iles. The Bloom Lake deposit hosts an NI 43-101-compliant Measured plus Indicated Mineral Resource of 637,697,000 tonnes grading 29.76% total Fe.

On June 1, 2005 the Company announced the completion of a private placement financing for gross proceeds of $1,048,199.68 as well as a number of significant board and management changes which have strengthened the Company's ability to advance The Bloom Lake Deposit and other opportunities in the Iron Ore area.



Contact Information

  • Consolidated Thompson-Lundmark Gold Mines Limited
    David A. Meyer
    Manager, Corporate Development
    (416) 861-5891