Gold-Ore Resources Ltd.

Gold-Ore Resources Ltd.

April 03, 2007 14:36 ET

Gold-Ore Resources Ltd.: Bjorkdal Gold Mine-Internal Engineering Study

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 3, 2007) - Gold-Ore Resources Ltd. (TSX VENTURE:GOZ) is pleased to release the results of an internal study ("the Study") that considers all aspects of a proposed underground mine at the Bjorkdal Project, Sweden. The Study is based on the known parameters from the current gold production at Bjorkdal and on contracts for an upcoming underground bulk sampling program that will form the basis of a feasibility study planned for later this year. Gold-Ore has the option to purchase 100% of the project from Minmet plc of Dublin, Ireland.

Study Overview

The Study proposes an average production rate of 1,500 tonnes per day sourced from underground. The processing costs are based on plant production records from the last 5 years. Contract mining costs are derived from a proposal for the test mining phase to commence in May. It is anticipated that long term contracts or an owner-operator scenario will reduce mining costs. A November 2005 mineral resource estimate (NI 43-101 compliant) is being validated and expanded by the Company's ongoing 20,000 metre development drilling program.

Projected Operating Costs (derived from current
operating conditions) $US
Process Cost/tonne (concentrating plant) 9.43
General &Administrative Cost/tonne 1.43
Mine and Technical Services/tonne (drilling, engineering, geology) 5.00
Contract Mining Cost/tonne (includes annual development) 24.26
Haulage Cost/tonne 3.00
Total cash cost/tonne 43.12

Projected Production
Concentrating plant throughput (tonnes/day) 1,500
Plant recovery (based on known plant recoveries) 93%
Payable Gold (current contracted smelting, refining charges) 92.7%

A gold grade of 5.0 g/t has been assumed for the purposes of the Study. This grade is consistent with the measured and indicated resources from a November, 2005 Mineral Resource Estimate (NI 43-101 compliant) and with the corporate objective of re-activating mining at Bjorkdal at a rate of 70,000 to 80,000 ounces of gold per year.

Acquisition Cost $US
Acquisition from Minmet 2.0 million
NSR Royalty Purchase 1.0 million

The Company has the option to purchase 100% interest in Bjorkdal from Minmet plc for US$2.0 million and 4 million common shares of Gold-Ore. Minmet will retain a maximum NSR royalty of 1.75% that can be purchased for US$1 million.

Project Capital Cost $US
Initial Capital Investment - Mine (proposed
underground development) 4.7 million
- Plant 1.0 million

Bjorkdal Project Concentrating Plant

The Bjorkdal plant began processing gold ores in 1988 and has treated a total 16.8 million tonnes of material. The rated capacity of the plant is 1.2 million tonnes per year and plant recoveries are well understood and are consistently greater than 90% for head grades in excess of 3 g/t gold.

The onsite process staff studied several ore processing options including the scenario of treating 700,000 tonnes of material per year. Detailed operating and capital budgets were prepared and reflect additional unit costs related to the proposed reduction in throughput from the current 1.2 million tonnes per year. Capital expenditure estimates include an upgraded plant control system and the addition of a Knelson Concentrator to the recovery circuit. These costs are estimated at between US$600,000 and $900,000.

All required environmental and operating permits are in place. In 2006 the tailings management facility was expanded and now has capacity for 2 to 4 years at the proposed production rate.

Mining Methods and Mining Costs

The gold-bearing veins at Bjorkdal range from less than one metre to six metres in width and commonly occur as swarms. The veins are vertical and the granodiorite host rock is extremely competent. The proposed mining method is longhole stoping or blast hole open stoping with sub-level spacing of 20 metres. This mining method is used extensively at many gold and base metals mines globally.

Longhole stoping is a productive, mechanized mining method that allows production from multiple mining faces. It is relatively selective and permits mining widths as narrow as three metres. The underground excavations last year intersected at least eight zones that could be profitably mined using this method, and diamond drilling has intersected numerous other veins with similar dimensions.

Mining costs are based on the conceptual mine design and schedule provided by the Company's consultant mining engineer, current quoted contract mining costs, with service and technical costs developed from last year's exploration program.

Mineral Resources

In November 2005, Gold-Ore completed a NI 43-101 compliant mineral resource estimate at Bjorkdal based on the historic drill database. During the 12 months Gold-Ore has completed 1,050 metres of underground excavations, 12,000 metres of underground diamond drilling and has analyzed 13,000 samples to further define and expand the mineral resource.

November, 2005 Mineral Resource Estimate - Bjorkdal Project
Cutoff Gold Grade Ounces
Grade (g/t) Resources Category Tonnes (g/t) Gold
Measured and Indicated 386,000 5.02 62,382
3.5 -------------------------------------------------------------
Inferred 1,419,000 5.41 246,842

The work completed by Gold-Ore confirms that the gold-bearing vein structures extend well beyond the limits of the above resource estimate and remain open for expansion. An updated resource estimate will be scheduled for later this year upon completion of the current drilling campaign.

Project Schedule

The Company is currently drilling with two underground drills. A surface rig will commence drilling in May to explore along the known trend of the mineralization. Previous drilling at the Storheden Zone, 1,100 metres north of the open pit, has demonstrated the presence of Bjorkdal-style gold mineralization over an area 1,200 metres (across trend) by 300 metres (along trend).

The underground mining exploration phase will commence in May and will start with the lengthening of the Central Tunnel and the establishment of drill stations to facilitate drilling on 30 metre-spaced sections. This will enable the Company to effectively double the area under evaluation.

A test mining and bulk sampling program will take place in the Main Tunnel area immediately upon completion of the Central Tunnel expansion. The test mining will involve driving an incline from the 205 level, up 20 metres, to the 185 level. Several veins will be stoped or mined by blasting down from the 185 level to the 205 level. The material mined will be batch processed or campaigned through the Bjorkdal plant to enable an accurate grade determination for reconciliation with the grades predicted from the diamond drilling. It is anticipated that 50,000 tonnes of material will be mined in 3 to 6 veins.

Feasibility Study

An independent engineering consulting firm has been presented with the Terms of Reference for a feasibility study anticipated to commence in June for completion during the fourth quarter of 2007. The time required for completion of the feasibility study is relatively short given the Project has an operating plant, tailings facility and all of the known parameters from the last 20 years of mining and processing.

The reader should be cautioned that the Company has not completed an independent feasibility study confirming the projected production and there is no certainty the Company's plan will be economically viable.

Bjorkdal property information is posted on the Company's web site at Robert S. Wasylyshyn, P. Geo., is the Company's Qualified Person for the Bjorkdal Project.


Robert Wasylyshyn, President

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.

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
    Gold-Ore Resources Ltd.
    Bob Wasylyshyn
    (604) 687-8884
    (604) 629-0400 (FAX)