VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 11, 2013) - Logan Resources Ltd. (TSX VENTURE:LGR) ("Logan" or the "Company") is pleased to announce an updated mineral resource estimate for the Friday Deposit, one of six zones of known gold mineralization within the Idaho Gold Property (the "Property"), located in north-central Idaho, USA. The updated resource estimate at a 0.45 grams per tonne gold ("g/t Au") cut-off, increases the Friday Deposit Indicated Mineral Resource estimate to 647,000 ounces (20.1 Mt @ 1.0 g/t Au) and increases the Inferred Mineral Resource estimate to 590,000 ounces (20.9 Mt @ 0.88 g/t Au). This is an increase in both the grade and the ounces of gold estimated in the Indicated and Inferred categories over those reported in the initial mineral resource estimate published on the Friday Deposit by Premium Exploration Inc. ("Premium") on August 16, 2012.
Logan has signed an Option and Joint Venture Agreement (the "Agreement") with Premium which affords Logan the option to acquire up to a 75% interest in the Property. Further details of this transaction are disclosed in the Company's press release dated March 28, 2013. Closing of this transaction is subject to a number of conditions, including approval of the TSX Venture Exchange and the completion of a financing satisfactory to the Company.
"We are extremely pleased with this improved mineral resource estimate from our latest property acquisition opportunity," stated Adrian Bray, President and CEO of Logan. "The increase in ounces estimated in this most recent report clearly supports our belief in the potential of this property to host significant gold mineralization."
Mineral resource estimates summarized above represent the estimate with a gold cut-off grade of 0.45 g/t within a potential open pit limit and considered to be generally consistent with the economic cut-off for other mineral deposits of similar characteristics, scale and location. Assumptions used in the estimate include a gold price of US$1,500 per ounce, gold recovery of 85% and combined processing, G&A and mining costs of $16.50 per tonne.
Resource Estimate Details
|Cut-off g/t Au
||oz Au (000's)
||oz Au (000's)
Notes to accompany Mineral Resource tables:
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral resources are amenable to open pit mining methods and have been constrained using a Lerches-Grossmann optimized pit.
- Assumptions include US$1,500/oz Au, 85% Au recovery, $2.50/tonne mining cost, $2.00/tonne waste mining cost, $12.00/tonne process and G&A cost. No allowances have been made for mining losses and dilution. Pit slope angle of 45°.
- The Company has elected to use a 0.45 g/t gold cut-off (bolded) which is greater than the conceptual marginal cut-off of 0.36 g/t.
- Gold analyses are performed by fire assay/AA finish methods.
The updated mineral resource estimate for the Friday Deposit, formerly known as the Friday-Petsite deposit, in the table above is based on a combination of historical data (Cyprus-Kinross, 1997-1999; Canden Capital, 2002; and Beartooth, 2004), and the data acquired by Premium Exploration Inc. between 2009-2012, and is effective as of February 19, 2013. Analytical data from 86 core holes and 90 reverse circulation ("RC") holes were used in the updated resource model. Grade estimation was based on data from 78 core holes, totaling 8,688 metres, and 56 RC holes, totaling 3,296 metres.
A grade shell model was created to constrain the grade estimation using indicator kriging with a threshold of 0.2 g/t Au. A wireframe model of a dacite dyke intruding the western portion of the central shear zone was also created. The dyke does not contain significant mineralization and was excluded from the mineralized domain. The wireframe and grade shell modeling were carried out in Leapfrog3d software and exported to Gemcom:Surpac software for grade estimation.
After examination of the cumulative probability plot it was decided to use a top-cut of 30 g/t Au prior to compositing and restrict the influence of grades above 10 g/t to a shorter search distance. The top-cut of 30 g/t affected 56 samples. A total of 56 samples exceeded 10 g/t. Globally, the outlier restriction and top-cut removed 10.6% of the contained metal.
Best-fit downhole sample assay composites of Au were generated using a nominal three metre interval within the grade shell domain. All samples were capped prior to compositing. Based on 637 samples, a density of 2.68 g/cm3 was used for the mineral zone, 2.65 g/cm3 for the host rock and 2.67 g/cm3 for the dyke.
Gold grades within the corresponding domains were estimated in three passes using the inverse distance weighting method to the third power (ID3). Ordinary kriging and nearest neighbour estimates were also carried out for use in model validation. Blocks were classified as 'Indicated' if they were estimated in the first or second estimation pass or had a composite located within 30 metres (or half the variogram range) of the block centroid. All other estimated blocks were classified as 'Inferred'.
In order to meet the requirements of National Instrument ("NI") 43-101 with respect to reasonable prospects of economic extraction by open pit mining methods, a 45° pit wall slope Lerchs-Grossman pit was generated to constrain the resource within the block model.
Mr. Ronald G. Simpson, P.Geo., with independent firm Geosim Services Inc., Vancouver, Canada, and a Qualified Person as defined by NI 43-101, has reviewed and approved the underlying sampling, analytical and test data used for the estimate. He examined and verified the database, and conducted a site visit in 2012. Mr. Simpson has reviewed and approved the technical disclosure contained in this news release. The estimate is classified as Indicated or Inferred Mineral Resources, consistent with the definitions set out in CIM (2010).
Areas of uncertainty that may materially impact the Mineral Resource Estimate include:
- Commodity price assumptions
- Assumptions that all required permits will be forthcoming
- Pit slope angles
- Metal recovery assumptions
- Mining and process cost assumptions
There are no other known factors or issues that materially affect the estimate other than normal risks faced by mining projects in terms of environmental, permitting, taxation, socio-economic, marketing, and political factors. Geosim is not aware of any known legal or title issues that would materially affect the Mineral Resource estimate.
The Idaho Gold Property is a contiguous land package encompassing approximately 18,000 hectares (ha) in north-central Idaho. Logan has an Option and Joint Venture Agreement with Premium which affords Logan the option to acquire up to a 75% interest in the Property.
Additional information about the Idaho Gold Property can be found in the technical report entitled: "Technical Report, Idaho Gold Project, Idaho County, Idaho, USA" dated effective May 31, 2012, filed on SEDAR at www.sedar.com on August 16, 2012 and prepared for Premium Exploration Inc.
Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing mineral properties. Logan has a diversified portfolio of precious metal, base metal and uranium projects. For more information on the property portfolio and Logan, please visit www.loganresources.ca.
LOGAN RESOURCES LTD.
On behalf of the Board
Adrian Bray, President & CEO
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. Forward-looking statements in this document include statements about the Property, the mineral resource estimate, the transaction with Premium to acquire a 75% interest in the Property and the potential for gold mineralization on the property. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.