Module Resources Incorporated
TSX VENTURE : MLE

Module Resources Incorporated

February 09, 2010 20:41 ET

Module Announces Initial Assay Results of Tailings Drill Program at Its Ladner Gold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2010) -

NOT FOR DISTRIBUTION IN THE UNITED STATES

Module Resources Incorporated (TSX VENTURE:MLE) is pleased to announce that the Company has received assay results from its Vibracore drill program on the tailings impoundment at its Ladner Gold Property near Hope in southeast British Columbia (see previous Press Release dated October 21, 2009). Gold grade ranged from a minimum of 1.27 g/tonne to a maximum of 2.53 g/tonne with the average being 1.68 g/tonne.

The objectives of this drill program were designed to collect material in order to confirm the grade of gold mineralization that was previously reported by Athabaska Gold Resources Ltd. (Report to Shareholders, April 18, 2000). The gold distribution appears to be consistent over all the samples collected from the tailings impoundment and the head grades are similar to those from the 1996 program conducted by Athabaska Gold Resources.

The tailings are the waste product from the previous operation of the Carolin Mine from 1982 to 1984 when the average overall gold recovery was 50.2%. This low recovery indicates that a substantial amount of gold-bearing material was sent to the tailings impoundment. The tailings impoundment has been covered by water continuously since 1984. The objective of this tailings program is to determine whether the tailings can be economically mined and processed to recover the contained gold.

Nine vertical random holes were drilled with 10 foot cores of tailings taken and collected by Beard Technologies, Inc. (www.beardtechnologies.com), a company whose expertise is in drilling, sampling and mining of tailings material. All material from the 2009 program was transported to the mineral and processing laboratory at the University of British Columbia, Vancouver. BC, where it was logged and sampled under the supervision of Professor Marcello Viega. The sampled material showed little signs of oxidation, having been under water since 1984.

The sampled material was taken to Acme Analytical Laboratories, an ISO 9001:2000 certified analytical laboratory, located in Vancouver, BC. As there is no remaining tailings material from previous drilling, no historic core samples were obtained. All samples subsequently underwent testing by various analytical techniques including standard fire assay for gold and ICP-MS for multi-elements.

DRILL AND ASSAY RESULTS

Calculated averages of gold head grades of sample duplicates over ten foot intervals of the upper ten feet for each of the nine holes are presented in the following table. The true depths of these holes are not known.

HOLE INTERVAL GRADE
  (FEET) (gm/t gold)
     
1 10 1.36
2 10 1.56
3 10 1.48
4 10 2.46
5 10 1.41
6 10 1.84
7 10 1.85
8 10 1.79
9 10 1.42
Total/average 90 1.68

Calculated averages of gold head grades of 60 holes drilled in 1996 are presented in the following table. The true depths of these holes are not known.

HOLE TOTAL DEPTH (feet) AVERAGE GOLD GRADE (g/t)
     
T1 21 2.49
T2 21 1.92
T3 21.5 1.52
T13 51.5 2.63
T1.5 34.5 2.21
T4 22.5 1.89
T5 23 1.93
T6 23.5 2.57
T7 25 2.55
T8 24 1.74
T9 24 1.96
T10 26.5 2.41
T11 26.5 2.11
T11A 22.5 2.43
T11B 22 2.01
T12 34.5 1.44
T14 50.5 1.83
T15 45 1.43
T18 53.5 2.80
T19 56.5 2.38
T21 57.5 2.17
T22A 22.5 1.89
T23 24 1.87
T24 59 1.88
T25 66.5 1.84
T26 63.5 1.68
T30 17.5 1.32
T31 41 1.43
T32 64.5 1.66
T33 78 1.82
T34 70 1.32
T35 79 1.67
T36 61 1.43
T37 76.5 1.37
T38 50 1.53
T39 30 1.89
T22B 23.5 2.05
T20 60 3.02
T22 43 2.86
T29 29 2.53
T28 68 2.41
T21A 70.5 1.84
T17 55 2.08
T18A 78 2.15
T19A 77 2.34
T303 31 1.34
T17A 80 1.86
T16 53 1.95
T18B 81 1.85
T36A 90 1.38
T19B 87 1.76
T20A 81 1.64
T27 80 1.68
T31A 63 1.38
T32B 68 1.35
T40 25 1.16
T41 52.5 1.12
T42 40 1.13
T43 65 1.28
T44 83 1.39
     

If metallurgical test work is successful, a study will be initiated to determine the economics of recovering gold from the tailings. Depending upon a positive study, Module could realize some potential early cash flow from recovering contained gold by treatment of the tailings.

About Module Resources

The Ladner Gold property includes 229 claims (11,175 hectares) covering 18 kilometres of the Coquihalla Gold Belt, and contains several historic gold producers including the Carolin Mine, a former underground gold producer from 1982 – 84, Emancipation Mine (intermittent gold producer from 1916 – 41), Pipestem Mine (intermittent gold producer from 1935 - 37), and numerous gold prospects situated along the under-explored Coquihalla Gold Belt. Based on historical exploration and development work in 1995 - 1996 and historical production records of the Carolin Mine, the Company believes that there is potential to reopen the mine at some time in the future if the exploration and development programs are successful and a positive feasibility study is obtained given a favorable gold market. The Company also believes that there may be potential for a bulk tonnage gold deposit situated at the McMaster Zone where additional work is required in order to delineate such potential. This zone is approximately 1200 meters north from the Carolin Mine.

For additional further information, please visit the Company's website at www.moduleresources.com.

The technical information contained in this release has been prepared by Bruce Downing, a qualified person who is the president and CEO of the Company.

ON BEHALF OF THE BOARD OF DIRECTORS

Bruce W. Downing, M.Sc., P.Geo., President & Chief Executive Officer

Caution concerning forward-looking information

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Module in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Module's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Module disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.

Neither the 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 the accuracy of this press release. We seek Safe Harbor.

Contact Information

  • Module Resources Incorporated
    Bruce W. Downing, M.Sc., P.Geo.
    President & Chief Executive Officer
    (778) 294-3211
    www.moduleresources.com