Patricia Mining Corp.

Patricia Mining Corp.

February 20, 2008 11:17 ET

Patricia Mining Corp. Reports Year End Reserves and Resources and 4th Quarter 2007 Production Results

TORONTO, ONTARIO--(Marketwire - Feb. 20, 2008) -


Patricia Mining Corp. ("Patricia") (TSX VENTURE:PAT) reports 2007 production results and reserve and resource calculations as of December 31, 2007 for the Island Gold Mine. These results and calculations are as a result of work performed by Richmont Mines Inc., the mine operator.


Commercial production began on October 1, 2007 at the Island Gold Mine. For the period October 1, 2007 to December 31, 2007, the Island Gold Mine produced 7,348 ounces of gold. The mill recovery was 94.36%. Prior to starting commercial production, a total of 21,933 ounces of gold were recovered from the Island Gold Mine from the processing of development ore and mineralized material. Revenue generated during this nine-month period was applied against fixed assets in accordance with generally accepted accounting standards.


At the Island Gold Mine, Proven and Probable Reserves were estimated at 1,058,881 tonnes of ore at a grade of 8.39 g/t for 285,536 ounces of gold. Measured and Indicated Resources totalled 192,422 ounces of gold while Inferred Resources were estimated at 193,350 ounces of gold. Recently, underground drilling confirmed an extension of the Island Zone to the east of previously defined resources. This drilling program confirmed Indicated Resources of 179,404 tonnes at a grade of 9.17 g/t for 52,892 ounces of gold and 21,140 tonnes at 8.27 g/t for 5,621 ounces as Inferred Resources. Assay results on an additional 5 holes are pending and further drilling will be completed in this area in 2008. The extension is strategically located near the exploration drift on the 190 level east of the Island Zone. Overall, more than 20,000 meters of definition and exploration drilling are planned for 2008 at Island Gold.

Island Gold Mine (100%)

Island and Lochalsh December 31, 2007 May 15, 2007(1)
Zones Reserves Tonnes Grade Ounces Tonnes Grade Ounces
(metric) (g/t Au) (metric) (g/t Au)
Proven 369,325 8.91 105,773 106,835 8.62 29,598
Probable 689,555 8.11 179,763 907,019 8.54 249,113
Total Proven
and Probable 1,058,881 8.39 285,536 1,013,854 8.55 278,711

Island, Lochalsh
and Goudreau
Zones Resources(2) December 31, 2007 May 15, 2007(1)
Tonnes Grade Ounces Tonnes Grade Ounces
(metric) (g/t Au) (metric) (g/t Au)
Measured 8,135 6.45 1,687 5,835 4.59 860
Indicated 582,032 10.19 190,735 448,870 10.33 149,112
Total Measured
and Indicated 590,167 10.14 192,422 454,705 10.26 149,972

Inferred 613,635 9.80 193,350 610,728 9.96 195,549
(1) Based on GENIVAR estimates as at May 15, 2007 with geological
information available as at January 31, 2007.
(2) Resources presented in the above table are exclusive of reserves and do
not have demonstrated economic viability at this time.

For the reserves, the geological envelope takes into account a cut-off grade of 5 g/t Au and a minimum true thickness of 2.0 metres for stope openings and 3.0 metres for development. Mining dilution of 20% at 0.5 g/t Au was applied. Reserves are based on a gold price of $US650 with an exchange rate of 1.00 (CAN$650). For the resources, the geological envelope takes into account a cut-off grade of 5 g/t Au and a minimum true thickness of 1.5 metres for Lochalsh, Goudreau and Inferred Resources at the Island Zone, 2 metres for Indicated and Measured Resources at the Island Zone. High values are cut to 75 g/t Au. The average density is 2.82 tonnes/m3. A block model for the reserves and resources was interpolated using the inverse distance to the second power. A 20-metre (Island Gold) and a 25-metre (Lochalsh and Goudreau) spherical search ellipsoid was used in the model with restriction on a maximum of 4 composites.

The Proven Reserve Category and the Measured Resource Category were calculated with a zone of influence of 10 metres from mine openings along strike. The Probable Reserve Category and the Indicated Resource Category were calculated with a maximum of 20 metres between drill holes for the Island Zone and 25 metres for the Goudreau and Lochalsh zones. Finally, the inferred resources are defined by isolated drill hole intercepts showing no clustering inside an envelope of 20 and 25 metres respectively. The crown pillar is not included in this resource estimate. The average true thickness of each zone is 2.7 metres for the Island Zone, 2.3 metres for the Lochalsh Zone and 3.1 metres for the Goudreau Zone.

Chris Chadder, Patricia's CEO stated "The results of this first quarter of commercial operations resulted in both tonnage and grade falling short of budget expectations. The mill throughput is expected to be increased in the first quarter of 2008 towards a targeted capacity of approximately 675 tonnes per day."

Patricia's main asset is a 45% interest in the Island Gold Mine located approximately 50 km northeast of Wawa, Ontario. The 650 tonne-per-day carbon-in-pulp mill was restarted in September 2006 and the first gold was poured in November 2006. Richmont Mines Inc. is the project operator.

National Instrument 43-101 (NI 43-101)

The reserve and resource calculation of the Island Gold property as of December 31, 2007 was performed by Ms. Nicole Rioux, Geo., of Genivar, a qualified persons as defined by NI 43-101 and was supervised by Mr. Jules Riopel, M.Sc. P. Geo., MBA, Director Geology and Exploration, an employee of Richmont Mines Inc. The previous reserve and resources calculation of the Island Gold property as of December 31, 2007 was performed by Ms. Nicole Rioux, Geo., of Genivar, a qualified person under the terms of this instrument.

Analyses in 2007 were conducted at the Swastika Laboratory in Swastika, Ontario and Wesdome laboratories in Wawa, Ontario, by means of fire assay fusion on 30 grams of material with atomic absorption (AA) and gravimetric finish. A quality control and a quality assurance program for the Wesdome samples has been put in place by reanalysing 10% of the samples.

The reserve and resources calculation of the Island Gold property filed on May 15, 2007 was performed by qualified persons as defined by Regulation 43-101 and was supervised by Mr. Michel Garon, Eng. and Ms. Nicole Rioux, Geo., of Genivar, qualified persons under the terms of this standard.

Forward-Looking Statements

This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made.

The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenues and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Patricia Mining Corp. undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

This release was prepared by management of the Company who takes full responsibility for its contents.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs at the Island Gold Project, future profitability and production.

The securities referred to herein have not been registered under the US Securities Act of 1933 and may not be offered or sold in the United States or to a US person absent registration or an applicable exemption from registration.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Patricia Mining Corp.
    Christopher R Chadder C.A.
    President & CEO
    (416) 214-4900
    (416) 864-0620 (FAX)
    Patricia Mining Corp.
    Mr. Gus Garisto
    Investor Relations
    Cell: (416) 805-3106