Portage Minerals Inc.

Portage Minerals Inc.

August 24, 2011 18:18 ET

Portage Announces Initial Mineral Resource Estimate at Golden Pike, New Brunswick

ST. ANDREWS, NEW BRUNSWICK--(Marketwire - Aug. 24, 2011) - Portage Minerals Inc. ("Portage") (CNSX:RKX) today announced the results of the initial resource estimate and project highlights on the Golden Pike property (the "Golden Pike Property"). The NI 43-101 compliant mineral resource estimate and technical report on the Golden Pike Property were completed by Roscoe Postle Associates Inc. ("RPA"). The Golden Pike Property, comprising 1600 hectares, is located 60 kilometres southeast of the City of Fredericton in Kings County, New Brunswick. The Golden Pike Property is owned 100% by Portage and is subject to a 2.0% net smelter return ("NSR"). Portage can purchase half of the NSR (1%) for $500,000 per 0.5% NSR increments.

  • The South Trend mineral resource estimate contains an Inferred Mineral Resource of 214,800 tonnes at a grade of 9.60 g/t gold (capped) yielding 66,300 ounces of gold. The mineral resource is located within a 600 m segment of the South Trend and remains open in both directions.
  • In addition to the resource, RPA outlines a potential tonnage and grade of additional mineralization located immediately along strike from the South Trend resource could be in the 150,000 tonnes to 350,000 tonnes grading between 7.0 g/t Au and 10 g/t Au. This is preliminary in nature and further work is required before this can be considered a resource.
  • Significant drill intercepts (core widths and all uncapped gold averages) include 43.07 g/t Au over 13.00 m, 32.26 g/t Au over 10.06 m and 8.08 g/t Au over 7.72 m from the South Trend.
  • RPA is of the opinion that Portage's Golden Pike Property hosts a gold mineralized system with potential to increase the resource base and warrants additional exploration, particularly drilling.
  • Property wide exploration has identified numerous other high-potential targets which demonstrate the larger scale potential of the project. Areas of particular interest include gold in soil geochemical anomalies and areas with induced polarization (IP) signatures similar to those of the mineralized zones.

Roger Dahn, Vice President - Exploration, stated, "The property hosts a significant gold target with excellent potential to significantly increase the resource base on the South Trend. As well, our initial drill hole on the North Trend identified extensive gold bearing alteration. Untested high priority target along the extensions of these mineralized trends which are up to 5 km length, have yet to be drill tested and hold promise for near term resource additions."

The Company controls an approximate 10 km x 40 km land position (100% owned) surrounding the Golden Pike project and Bald Hill Sb-Au discovery (Portage Minerals Inc. press release dated November 10, 2010) within the prospective Annidale Gold Belt.


Most of the drilling on the property completed by Portage to May 26, 2011 (44 of 45 holes) has been on the South Trend deposit which has been defined by drilling over a 600 m length to a maximum vertical depth of approximately 350 m. This mineralized trend remains open for expansion in both directions. Demonstrating the larger scale potential at the Golden Pike Property is the fact that property-wide exploration initiated by Portage has identified a number of other high-potential targets along each of the South and North mineralized trends. Areas of particular interest include gold in soil geochemical anomalies and areas with induced polarization (IP) signatures similar to those of the mineralized zones.

With funding assistance through the New Brunswick Junior Mining Assistance Program, 7 seven exploration holes totaling approximately 936 metres were completed along the North Trend during July 2011. Five holes were drilled on the Golden Pike property approximately 2 km north of the South Trend deposit. Previous trenching in this area by Noranda, during 1990 – 1991, returned high grade gold mineralization in bedrock and boulders assaying 17.38 g/t gold and 42.84 g/t gold respectively. Two holes were also completed 13.4 km further east along the North Trend on Portage's surrounding Annidale gold belt claims where Portage prospecting results returned grab samples assaying between 0.3 to 12.1 g/t gold. All assay results from the July drill program are currently outstanding and will be released once received.


RPA estimated Mineral Resources for the Golden Pike South Trend deposit using drill hole data available to May 26, 2011. Resources were estimated and classified by RPA following Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (CIM definitions). At a cut-off grade of 5 g/t Au and minimum true thickness of two metres, Inferred Mineral Resources are estimated to total 214,800 tonnes grading 9.60 g/t gold (capped) containing 66,300 ounces of gold. The details of the gold mineral resource estimate are tabled below:

Gold Mineral Resource Estimate – May 26, 2011
Portage Minerals Inc. – South Trend Deposit
Golden Pike Project
Capped Au Uncapped Au
Classification Zone Tonnes (t) Au (g/t) Au (Oz) Au (g/t) Au (Oz)
Inferred Main Zone 78,200 11.47 28,800 17.10 43,000
Inferred Parallel Zone 136,600 8.54 37,500 11.41 50,100
Inferred Total 214,800 9.60 66,300 13.48 93,100
1. CIM definitions have been followed for classification of Mineral Resources.
2. The Qualified Person for this Mineral Resource estimate is Tudorel Ciuculescu, P.Geo.
3. Mineral Resources are estimated at a cut-off grade of 5 g/t Au and a minimum thickness of two metres.
4. High gold grades were capped to 30 g/t prior to compositing. Uncapped average grades are listed for comparative purposes only.
5. Mineral Resources are estimated using an average long-term price of US$1200 per oz Au, and a C$:US$ exchange rate of 1:1.
6. The Mineral Resource estimate uses drill hole data available as of May 26, 2011.
7. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
8. The uncapped Au grade is provided for comparative purposes only.
9. Totals may not add correctly due to rounding.

The May 26, 2011, resource estimate for the Golden Pike Property is based on a total of 100 diamond drill holes with a length of 16,185.5 m. The resource drilling consists of 25 holes, 15 drilled by Fosters Resources Ltd. in 1994-1996 campaigns and 11 by Rockport Mining Corp. in 2007-2008 campaigns, totalling 4,092 m and generating 29 intercepts. The resource estimate is based on 132 assays for gold.

In addition to the above resource, the potential tonnage and grade of the mineralization according to RPA, located immediately along strike from the South Trend resource which are targets for further exploration, could be 150,000 tonnes to 350,000 tonnes grading between 7.0 g/t Au and 10 g/t Au. The potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a mineral resource along strike from the resource area, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The estimated ranges of tonnage and grade for the exploration target were based on gold in soil anomalies, geophysical results, and the geology of the South Mineralized Trend. The current mineral resource is located within a 600 m segment of the South Mineralized Trend that has been drilled tested at a relatively closely spaced pattern. In addition to this segment, the gold in soil anomaly, IP results, and geology suggest exploration targets ranging from an additional 400 m to 1,000 m of favourable strike length which have yet to receive sufficient drill testing. Using these lengths of untested favourable strike, plus the estimated tonnage per metre of the current mineral resource, RPA estimated a tonnage range of 150,000 to 350,000 tonnes for the exploration target. The estimated grade ranging from 7.0 g/t Au to 10 g/t Au is derived from the current mineral resource.

A technical report on the Golden Pike Property describing in detail among other things, the resource estimate, QA/QC, database validation and geologic model, will be filed on SEDAR within 45 days of this news release.

Roger Dahn, P. Geo. (New Brunswick), Vice President-Exploration of Portage, is designated as the Qualified Person under National Instrument 43-101 and has reviewed and approved the contents of this press release. David A. Ross, M.Sc., P.Geo., of Roscoe Postle Associates Inc., has reviewed the portion of this news release pertaining to the NI 43-101 technical report and related resource estimate. All assays have been completed by Activation Laboratories Ltd, Ontario.

Portage Minerals Inc. is a mineral exploration corporation exploring for gold in Eastern Canada. Further information about Portage can be accessed on the Company's website at www.portagemineralsinc.com and on the SEDAR website at www.sedar.com. The common shares of Portage trade on the Canadian National Stock Exchange ("CNSX") as a mining issuer under the trading symbol "RKX".

To receive Company news releases via e-mail, please advise lauren@chfir.com and specify "Portage News" in the subject line.

CNSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Portage Minerals Inc.
    Ken Hight
    President and CEO
    (506) 529-8206
    (506) 529-8595 (FAX)

    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    (416) 868-1079 x228
    (416) 868-6198 (FAX)