VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 21, 2015) - Newmarket Gold ("Newmarket" or the "Company")(TSX:NMI) is pleased to announce positive results from an additional 7,805 metres (m) of drilling, including 39 drill holes at the Cosmo Gold Mine, Northern Territory, Australia, and 2,070 m of drilling in 4 drill holes at Stawell Gold Mines, Victoria, Australia. These results are part of Newmarket's 2015 growth exploration program and include continued intercepts of significant gold mineralization from the Sliver Lode and Cosmo Deeps Drilling at Cosmo and at the Aurora B discovery at Stawell.
Highlights and Key Drill Intercepts (Outside Mineral Resources Reported December 2014)
- Development of the Sliver Lode at the Cosmo Mine with additional high grade results including: 14.79 g/t Au over 11.4 m (ETW 11.4 m) in hole CE67518 and 14.07g/t Au over 6.0 m (ETW 5.83 m) in hole CE67522.
- The Sliver Lode drilling is approximately 25 m from current underground development highlighting the potential additional tonnes to be included in the near term mine plan.
- Down plunge drilling in the footwall area of the Cosmo deposit, the Cosmo Deeps drill program has identified mineralization approximately 200 m down-plunge from the current base of Mineral Resources at Cosmo. The Cosmo Deeps drilling program was successful and include intercepts such as 5.85 g/t Au over 5.70 m (ETW 4.2 m) in hole CE84099 and 3.09 g/t Au over 6.4 m (ETW 5.0 m) in hole CE840100.
- At Stawell a second phase of drilling in the Aurora B discovery target returned high-grade gold intercepts containing visible gold of 8.03 g/t Au (1) over 8.80 m (ETW 5.0 m) including 51.80 g/t Au (1) over 0.80 m (ETW 0.45 m) in hole MD6347.
(1) Visible gold present in drill intercept, ETW - Estimated True Width, All drill results are presented in Table 1 and 3
Mr. Douglas Forster, President and Chief Executive Officer, Newmarket Gold commented: "We are extremely pleased with the drilling results from the Sliver Lode and Cosmo Deeps down plunge targets which have intersected significant gold mineralization in previously undrilled areas close to current infrastructure at Cosmo. With these positive results, we continue to invest in additional drilling to advance the resource potential of these targets. At Stawell, continued drilling of the Aurora B discovery has returned additional high-grade results containing visible gold. These results combined with historical drilling, outline a mineralized surface approximately 140 m along strike and 140 m down dip with the Aurora B discovery remaining open for further expansion."
Mr. Forster continued: "To date, Newmarket's ongoing 2015 growth exploration programs totaling US$5.0 million have resulted in three exciting and significant gold discoveries, one at each of our operations including: the Eagle Fault discovery at Fosterville, the Aurora B discovery at Stawell and the Western Lodes discovery at Cosmo. In addition, drilling has also expanded the down plunge potential of the Sliver and Cosmo Deeps targets at Cosmo and the Lower Phoenix zone at Fosterville. All of Newmarket's growth exploration programs are designed to target significant resource expansion opportunities with the goal of increasing the life of mine reserves at our operations".
Cosmo Drilling Program
Approximately 16,700 m of exploration drilling has been completed at the Cosmo Mine since the start of 2015 with previously reported drill results for the Western Lodes and the Inner Metasediment programs released July 2015 (see Newmarket press release dated July 22, 2015). Further work has been completed on these areas with results expected to be released in the second half of 2015. In total, approximately US$3.0 million has been spent on exploration activities in the Northern Territory during 2015 with the majority of these expenditures targeting gold targets near infrastructure at Cosmo.
In addition to the results released in July 2015, drilling at Cosmo Mine continued to target the Sliver Lode, a mineralized lode located in the Hanging Wall of the F1 Fault located only 25 m from current underground mine development. Sliver Lode drilling suggests results could form part of the near term mine plan for the Cosmo Mine. Key intercepts from this drilling include 14.79 g/t Au over 11.4 m (ETW 11.4 m) in hole CE67518 and 14.07g/t Au over 6.0 m (ETW 5.83 m) in hole CE67522.
The Sliver Zone is a subsidiary fold on the Eastern Hanging-wall limb of the Cosmo anticline fold (Figure 1) and to date has produced a significant number of tonnes of mill feed for the Cosmo Mine. Previously the down plunge extension of the Sliver Zone was poorly understood and it was believed the mineralization terminated down plunge by the F1 fault. The latest results show that this is not the case and zone is still open at depth suggesting the potential to extend the current mine plan into the future. With this improved understanding of the Sliver Lode, a US$530,000 surface drill program is expected to commence to test the extent of mineralization down plunge. A schematic long section is available in Figure 2 and a view showing the mineralization with respect to current underground workings is available in Figure 3. Since Mineral Resources reported in December 2014, a total of 6,417 m of drilling in 37 NQ diamond holes have been completed on the Sliver Lode. A Mineral Resource and Mineral Reserve update for the Sliver Lode will be undertaken at year-end 2015 incorporating the recent and ongoing drilling results.
See results for the Sliver Lode drilling in Table 1 with collar information shown in Table 2.
Further to the drilling completed into the Sliver Lode, two drill holes, out of a four hole program, were completed on Cosmo Deeps and tested mineralization around 200 m down plunge of current base of reported Mineral Resources at Cosmo. Both diamond holes (CE84099 & CE840100) have returned significant results, such as 5.85 g/t Au over 5.70 m (ETW 4.29 m) in hole CE84099, see table 1, located within the 300 Lode. In addition to these significant results in the 300 Lode, a previously unidentified lode has been intersected in these two holes with results of 3.87 g/t Au over 9.3 m (ETW 7.2 m) in hole CE840100 and 2.37 g/t Au over 5.2 m (ETW 3.8 m) in hole CE84099. These intercepts are located approximately 500 m from current workings (Figure 2) and are significant. Near-term exploration at Cosmo Mine continues to focus on advancing the Mineral Resource potential of these zones.
The very encouraging Cosmo Deeps and Sliver drill results have identified an opportunity to drill the down plunge potential of these targets from surface. This program is expected to commence in late 2015 and will cover 2,000 m of drilling to allow for future infrastructure planning for the mine. This drilling is planned to intersect the mineralization around 100 m down plunge from recent Sliver Lode drilling results as well as around 80 m above the intercept in drill hole CE840100. This program has the potential to add significant mineralization extension to the Cosmo deposit.
Stawell Drilling Program
Newmarket is also pleased to announce further successful results during the second phase of the Aurora B discovery drill program at Stawell Gold Mines (Figure 4). This program is following up on drill results reported on July 22, 2015 where drilling focused on the Hampshire Lode on the East Flank of the Magdala Basalt, approximately 400-500 m below surface (Figure 5). The first phase of drilling included a high-grade gold intercept of 7.06 g/t Au (1) over 17.80 m (ETW 8.3 m) in MD6339 (reported July 22, 2015). The second phase of drilling, comprising four holes for 2,067 m returned high-grade gold intercepts containing visible gold of 8.03 g/t Au (1) over 8.80 m (ETW 5.0 m) including 51.80 g/t Au (1) over 0.80 m (ETW 0.45 m) and 2.59 g/t Au over 5.50 m (ETW 3.1 m) in hole MD6347. These high-grade results, when considered with historical drill results (Figure 6), demonstrate a mineralized surface of approximately 140 m along strike and 140 m down dip and the Aurora B discovery remains open for further expansion. Results are pending for the fourth and final hole.
Drilling of the Aurora A target has now commenced from underground and comprises two diamond holes for a total of 2,000 m. The Aurora A target is located vertically below the Aurora B discovery, and is separated by the South Fault, which has thrust the Aurora B upwards and to the southwest. The Aurora A target was previously known as "Wonga Gift" (Northgate Minerals Press Release, dated November 1, 2010) and has a significant historic drill intercept of 13.7 g/t Au over 5.45 m (ETW 4.90 m) from surface diamond hole SD649A (Figure 7). The present drill program has an estimated cost of US$250,000 and will test an area approximately 700 m along strike to the north from existing Aurora A drilling.
The Aurora targets on the East Basalt Flank represent near mine exploration targets in an area with no recorded production. In comparison, the West Basalt Flank has produced over 2.3 million ounces of gold. Exploration of the East Basalt Flank has been prioritized based on the more accessible Western Flank targets and the location of mine infrastructure, which is also situated on the west flank. Work has commenced on an exploration decline, 220 m in length to provide suitable drill platforms to support future Aurora B drill programs.
Both the Aurora A and B programs have demonstrated that targeted exploration activities at Stawell Gold Mines still have the opportunity for success. Through the detailed work by the Stawell Geology team reviewing both historical and current mining and exploration activities, targets such as the Aurora prospect can still be identified in close proximity to a mine that has been active since the Mid-1980's. Newmarket will continue to review and support targets, such as Aurora at Stawell, with the plan of attaining organic growth at our current mines.
All drill intercept results are shown in Table 3 and drill collars are presented in Table 4.
A location map of the Stawell operation can be seen in Figure 4.
Qualified Person
Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
QAQC information is provided at the bottom of Table 4.
ON BEHALF OF THE BOARD
Douglas Forster, M.Sc., P.Geo.
President & Chief Executive Officer
About Newmarket Gold Inc.
Newmarket Gold is a Canadian-listed gold mining and exploration company with three 100% owned operating mines across Australia. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating free cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy. The Company is focused on sustainable operating performance, a disciplined approach to growth, and building gold reserves and resources while maintaining the high standards that the Newmarket Gold core values represent.
| Table 1: Drill Assay Intercepts for Cosmo Underground Drilling Programs | ||||||
| Hole ID | From (m) |
To (m) |
Downhole Interval (m) |
Estimated True Width (m) | Gold Grade (g/t Au) |
Geological Structure |
| Sliver Drilling Results | ||||||
| CE67501 | 162.35 | 173 | 4.3 | 10.62 | 6.50 | Sliver |
| and | 178.35 | 182.75 | 4.4 | 4.39 | 2.04 | Sliver |
| and | 194.5 | 205.7 | 11.2 | 11.14 | 4.19 | Sliver |
| and | 249.75 | 253.5 | 3.8 | 3.71 | 2.69 | Sliver |
| CE67502 | No Significant Intercept | |||||
| CE67504 | 113 | 118 | 5.0 | 4.54 | 2.97 | Sliver |
| CE67505 | 99.3 | 106.6 | 7.3 | 7.01 | 3.22 | Sliver |
| and | 113.4 | 119 | 5.6 | 5.38 | 5.03 | Sliver |
| CE67506 | 129 | 133 | 4.0 | 3.64 | 2.33 | Sliver |
| CE67507 | 115 | 119 | 4.0 | 3.85 | 9.71 | Sliver |
| CE67508 | 98.2 | 100.3 | 2.1 | 2.02 | 8.64 | Sliver |
| and | 136.25 | 138.9 | 2.7 | 2.55 | 2.47 | Sliver |
| CE67509 | 107.8 | 113.5 | 5.7 | 4.15 | 9.90 | Sliver |
| and | 117.8 | 121 | 3.2 | 2.33 | 4.00 | Sliver |
| CE67510 | 115.7 | 117.8 | 2.1 | 1.53 | 2.14 | Sliver |
| CE67511 | No Significant Intercept | |||||
| CE67512 | No Significant Intercept | |||||
| CE67513 | 112.95 | 114.95 | 2.0 | 1.46 | 2.15 | Sliver |
| CE67514 | No Significant Intercept | |||||
| CE67515 | 103.6 | 105.7 | 2.1 | 2.07 | 8.58 | Sliver |
| CE67516 | 119 | 123.8 | 4.8 | 4.74 | 13.87 | Sliver |
| and | 135.3 | 139.5 | 4.2 | 4.15 | 5.44 | Sliver |
| and | 163.1 | 167 | 3.9 | 3.85 | 4.88 | Sliver |
| CE67517 | 107.3 | 111 | 3.7 | 3.65 | 4.09 | Sliver |
| CE67518 | 124.2 | 135.6 | 11.4 | 11.40 | 14.79 | Sliver |
| CE67519 | 126.3 | 130.8 | 4.5 | 4.49 | 3.79 | Sliver |
| CE67520 | No Significant Intercept | |||||
| CE67521 | 137 | 143.5 | 6.5 | 5.63 | 4.67 | Sliver |
| CE67522 | 112 | 118 | 6.0 | 5.83 | 14.07 | Sliver |
| CE67523 | 134.25 | 136.25 | 2.0 | 1.94 | 2.06 | Sliver |
| CE67524 | No Significant Intercept | |||||
| CE67525 | No Significant Intercept | |||||
| CE67526 | No Significant Intercept | |||||
| CE67527 | No Significant Intercept | |||||
| CE67528 | No Significant Intercept | |||||
| CE67529 | 126.2 | 136.45 | 10.3 | 10.24 | 3.56 | Sliver |
| and | 160.2 | 165 | 4.8 | 4.80 | 4.44 | Sliver |
| and | 169 | 175 | 6.0 | 6.00 | 4.77 | Sliver |
| CE67531 | 120.5 | 123.5 | 3.0 | 2.78 | 7.06 | Sliver |
| CE67533 | 132.9 | 137 | 4.1 | 4.06 | 8.50 | Sliver |
| CE67536 | 137 | 139 | 2.0 | 1.98 | 2.81 | Sliver |
| CE67538 | No Significant Intercept | |||||
| CE67539 | 101.3 | 107.3 | 6.0 | 4.59 | 3.01 | Sliver |
| CE69038 | 164.4 | 168 | 3.6 | 3.43 | 4.59 | Sliver |
| and | 179 | 184 | 5.0 | 4.76 | 2.00 | Sliver |
| CE69043 | 151 | 155 | 4.0 | 3.73 | 4.36 | Sliver |
| CE69048 | 186.1 | 190.4 | 4.3 | 4.25 | 2.15 | Sliver |
| CE69052 | 181 | 185 | 4.0 | 4.00 | 2.66 | Sliver |
| and | 188.8 | 204.3 | 15.5 | 15.50 | 4.62 | Sliver |
| and | 210.6 | 218.2 | 7.6 | 7.60 | 5.26 | Sliver |
| and | 236 | 239.1 | 3.1 | 3.10 | 4.20 | Sliver |
| Cosmo Deeps Drilling Results | ||||||
| CE84099 | 523 | 528.5 | 5.5 | 3.80 | 2.37 | New |
| and | 565.1 | 567.6 | 2.5 | 1.73 | 2.22 | 22 |
| and | 580 | 585.7 | 5.7 | 4.20 | 5.85 | 300 |
| CE840100 | 294 | 297 | 3.0 | 2.30 | 3.89 | 22 |
| and | 336 | 339 | 3.0 | 2.31 | 2.51 | 22 |
| and | 352.9 | 356.6 | 3.7 | 2.87 | 2.05 | 22 |
| and | 474.5 | 478.75 | 4.3 | 3.29 | 16.17 | 22 |
| and | 615.45 | 624.7 | 9.3 | 7.21 | 3.87 | New |
| inc. | 3.7 | 2.90 | 6.21 | New | ||
| and | 691.75 | 702 | 10.3 | 8.07 | 2.75 | 300 |
| inc. | 6.4 | 5.04 | 3.09 | 300 | ||
Note: Drill results that are greater than 30 - Gram Metres are in bold text
| Table 2: Cosmo Diamond Drilling Collar Locations (Cosmo Mine Grid) | ||||||
| Hole ID | Northing | Easting | Elevation | Collar Azimuth |
Collar Plunge |
Depth (m) |
| Underground Diamond Drill Holes - Sliver | ||||||
| CE67501 | 1,826 | 4,917 | 678 | 360 | -0.9 | 284.9 |
| CE67502 | 1,827 | 4,916 | 678 | 342 | -1.8 | 188.8 |
| CE67504 | 1,827 | 4,917 | 680 | 358 | 25.6 | 144.7 |
| CE67505 | 1,827 | 4,917 | 679 | 359 | 16.8 | 155.6 |
| CE67506 | 1,827 | 4,917 | 680 | 347 | 24.5 | 164.8 |
| CE67507 | 1,827 | 4,917 | 679 | 347 | 16.7 | 173.9 |
| CE67508 | 1,827 | 4,917 | 680 | 352 | 31.0 | 155.5 |
| CE67509 | 1,827 | 4,916 | 681 | 342 | 43.8 | 164.8 |
| CE67510 | 1,827 | 4,916 | 680 | 343 | 33.9 | 152.9 |
| CE67511 | 1,827 | 4,916 | 681 | 334 | 44.9 | 148.7 |
| CE67512 | 1,827 | 4,915 | 681 | 335 | 34.3 | 158.9 |
| CE67513 | 1,827 | 4,915 | 681 | 324 | 44.1 | 125.2 |
| CE67514 | 1,827 | 4,915 | 680 | 327 | 34.2 | 122.3 |
| CE67515 | 1,827 | 4,917 | 680 | 354 | 22.7 | 130.8 |
| CE67516 | 1,827 | 4,917 | 679 | 347 | 9.5 | 182.5 |
| CE67517 | 1,827 | 4,917 | 679 | 354 | 8.8 | 149.5 |
| CE67518 | 1,827 | 4,917 | 678 | 354 | 3.2 | 161.9 |
| CE67519 | 1,827 | 4,917 | 678 | 354 | -1.8 | 185.9 |
| CE67520 | 1,827 | 4,916 | 678 | 347 | -2.5 | 218.2 |
| CE67521 | 1,827 | 4,916 | 680 | 341 | 30.6 | 152.8 |
| CE67522 | 1,827 | 4,917 | 679 | 353 | 16.5 | 141.8 |
| CE67523 | 1,827 | 4,916 | 679 | 341 | 16.1 | 168.0 |
| CE67524 | 1,827 | 4,916 | 678 | 341 | 3.6 | 174.1 |
| CE67525 | 1,827 | 4,916 | 679 | 336 | 9.7 | 153.0 |
| CE67526 | 1,827 | 4,916 | 681 | 334 | 33.9 | 55.3 |
| CE67527 | 1,827 | 4,916 | 680 | 333 | 25.0 | 146.6 |
| CE67528 | 1,827 | 4,916 | 679 | 328 | 16.6 | 145.9 |
| CE67529 | 1,827 | 4,916 | 678 | 348 | 3.4 | 188.9 |
| CE67531 | 1,827 | 4,916 | 680 | 341 | 25.0 | 150.0 |
| CE67533 | 1,827 | 4,916 | 679 | 341 | 10.4 | 164.9 |
| CE67536 | 1,827 | 4,916 | 679 | 335 | 17.0 | 146.6 |
| CE67538 | 1,827 | 4,916 | 679 | 338 | 2.7 | 161.7 |
| CE67539 | 1,827 | 4,916 | 681 | 156 | 40.1 | 350.5 |
| CE69038 | 1,765 | 4,838 | 694 | 31 | 19.9 | 202.6 |
| CE69043 | 1,766 | 4,838 | 694 | 24 | 22.9 | 196.7 |
| CE69048 | 1,765 | 4,838 | 694 | 29 | 13.3 | 235.9 |
| CE69052 | 1,766 | 4,838 | 693 | 24 | 4.3 | 311.7 |
| Underground Diamond Drill Holes - Cosmo Deeps Program | ||||||
| CE84099 | 1,687 | 4,709 | 826 | 19 | -42.6 | 636.0 |
| CE840100 | 1,687 | 4,708 | 826 | 10 | -40.4 | 752.6 |
| Table 3: Drill Assay Intercepts for Stawell Underground Drilling Programs | ||||||
| Hole ID | From (m) | To (m) | Downhole Interval (m) | Estimated True Width (m) | Gold (g/t Au) |
Geological Structure |
| MD6345 | 233.55 | 235.65 | 2.10 | 1.80 | 1.00 | Moray Lode |
| and | 267.10 | 267.95 | 0.85 | 0.70 | 3.45 | Waterloo |
| and | 283.85 | 284.90 | 1.05 | 0.90 | 5.44 | East Contact |
| MD6346 | 214.90 | 222.80 | 7.90 | 5.90 | 0.70 | Moray Lode |
| and | 346.30 | 349.30 | 3.00 | 1.60 | 2.47 | Waterloo |
| and | 396.80 | 398.40 | 1.60 | 0.85 | 1.46 | Hampshire Lode |
| MD6347 | 430.30 | 431.40 | 1.10 | 0.80 | 0.78 | Waterloo |
| and | 541.50 | 547.70 | 6.20 | 3.50 | 1.39 | Hampshire Lode |
| and(1) | 553.60 | 562.40 | 8.80 | 5.00 | 8.03 | Hampshire Lode |
| including(1) | 559.00 | 559.80 | 0.80 | 0.45 | 51.80 | Hampshire Lode |
| and | 568.80 | 574.30 | 5.50 | 3.10 | 2.59 | Hampshire Lode |
| and | 578.00 | 578.60 | 0.60 | 0.35 | 7.93 | Hampshire Lode |
| MD6353 | Results Pending | |||||
(1) Visible Gold Present in drill intercept
| Table 4: Stawell Diamond Drilling Collar Locations (Stawell Mine Grid) | ||||||
| Hole ID | Northing | Easting | Elevation | Collar Azimuth | Collar Plunge |
Depth (m) |
| MD6345 | 4,768 | 4,771 | -118 | 43.4 | -33.6 | 390.3 |
| MD6346 | 4,768 | 4,770 | -118 | 56.2 | -41.5 | 485.9 |
| MD6347 | 4,768 | 4,770 | -118 | 42.1 | -51.7 | 676.9 |
| MD6353 | 4,768 | 4,770 | -118 | 51.9 | -47.3 | 515.8 |
Drilling and Assay QAQC
Newmarket Gold has in place quality-control systems to ensure best practice in drilling, sampling and analysis of drill core. All diamond drill hole collars (Table 2 and 4) are accurately surveyed using a Leica Total Stations instrument and down hole deviations are measured by electronic multi-shot cameras (Fosterville and Stawell) or by using a down hole Gyro instrument (Cosmo).
All reported drill intercepts are from NQ2 or NQ sized diamond drill core that was either whole core sampled or cut longitudinally in half with a diamond saw depending on the requirements to keep core for future reference. In the cases of sawn drill core, one-half of the drill-core was sent for assay and the other half retained for reference. Drill core sample intervals vary between 0.2 and 1.5m in length and were determined from logging of sulphide and visible gold. Where recognized in drill core all visible gold zones have been noted in the tables reported above.
Assay results are based on either a 30-gram (Stawell) or 50-gram (Cosmo) charge fire assay. Mean grades are calculated using a variable lower grade cut-off (generally 2 g/t Au) and maximum contiguous 2m internal dilution. No upper gold grade cut has been applied to the data. However, during future resource work the requirement for assay top cutting will be assessed.
Drill samples from the Cosmo Deposit were assayed at North Australian Laboratories Pty Ltd, an independent laboratory in Pine Creek, Northern Territory.
Drill samples from the Stawell Deposit were assayed at ALS Laboratories Pty Ltd, an independent laboratory in Orange, New South Wales.
All Mine Geology and Exploration teams conduct site audits and reviews from time to time at the independent laboratories as well as conduct intra-laboratory analysis of results to test the quality of reported results. All reviews of QAQC data has not identified any significant issues that cannot be resolved prior to results being used for modelling or reporting.
To view the figures associated with this release, please visit the following links:
http://media3.marketwire.com/docs/Figure_1-Cosmo_location_plan.pdf
http://media3.marketwire.com/docs/Figure_2-Cosmo_Long_section.pdf
http://media3.marketwire.com/docs/Figure_3-Cosmo_Sliver_Lode_sectional_view.pdf
http://media3.marketwire.com/docs/Figure_4-Stawell_Project_location_plan.pdf
http://media3.marketwire.com/docs/Figure_5-Stawell_mine_long_proj_showing_Aurora_targets.pdf
http://media3.marketwire.com/docs/Figure_6-Stawell_AuroraB_East_Flank_Targets_long_sec.pdf
http://media3.marketwire.com/docs/Figure_7-Stawell_AuroraA_East_Flank_Targets_long_sec.pdf
Contact Information:
Director, Investor Relations
Newmarket Gold, Inc.
416.847.1847
llepore@newmarketgoldinc.com
www.newmarketgoldinc.com