Takara Resources Inc.

Takara Resources Inc.

March 18, 2010 08:15 ET

Takara Tasswini Gold Project Gold Resource Restated by SRK

TORONTO, ONTARIO--(Marketwire - March 18, 2010) - Takara Resources Inc. (TSX VENTURE:TKK) ("Takara") is pleased to announce that SRK Consulting (Canada) Inc. ("SRK") has readdressed to Takara the National Instrument 43-101 ("NI 43-101") Mineral Resource Estimation technical report for the Tassawini and Sonne Gold Deposits located on the Tassawini property in Guyana.

The mineral resource evaluation, previously reported in June 2008, integrated 440 diamond drill holes and 1,187 reverse circulation holes for a total of 58,390 metres (m) and 43,284 m of drilling, respectively. The Tassawini and Sonne Deposits are composed of five and four distinct auriferous zones respectively. The Sonne deposit is located at surface and is a flat-lying zone of gold mineralization entirely located in the saprolite profile. Mineral Resources are reported using 0.5 grams of gold per tonne (g/t) cut-off grade.

Table 1: Tassawini and Sonne Deposits Mineral Resource Statement*, SRK Consulting (Canada) Inc, May 21, 2008.

Deposit Category of Mineral Tonnes Gold Grade Gold
  Resource (Ktonnes) (g/t) (ounces)
Tassawini Indicated 10,766 1.3 437,000
Tassawini Inferred 614 1.7 33,000
Sonne Indicated - - -
Sonne Inferred 1,312 0.7 29,000

*Table 1: Notes

  1. Mineral resources estimated in conformity with both generally accepted CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice" guidelines. The mineral resource statement is reported in accordance with the Canadian Securities Administrators National Instrument 43-101. Mineral resources classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005) by G. David Keller, P.Geo. (APGO#1235), an independent Qualified Person as defined by NI 43-101.
  2. All figures have been rounded to reflect the relative accuracy of the estimates.
  3. Mineral resources reported at a 0.5 g/t gold cut-off grade within Whittle pit shells based on a gold price of US $750 per ounce and metallurgical recovery of 85%.
  4. Gold composites were capped at 50 g/t gold for Tassawini East and 30 g/t for Tassawini West.
  5. Troy ounce = 31.103 grams.
  6. Density values for each of the weathering profiles are based on averages of specific gravity measurements.
  7. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
  8. SRK is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing or other relevant issues that could potentially affect this estimate of mineral resources. The mineral resources may be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio- economic and other factors. There is insufficient information at this early stage of study to assess the extent to which the resources will be affected by these factors, which are more appropriately assessed in a conceptual study.

The mineral resources are sensitive to the selection of the cut-off grade. The table below presents the tonnage and gold grades including all zones within the Whittle pit shell at various cut-off grades. The reported quantities and grades are only presented as a sensitivity of the resource model to the selection of cut-off grade.

Table 2: Tassawini - Sonne Deposits

Sensitivity analysis of tonnage and grade using comparative cut-offs*

Deposit Cut-off Grade Tonnage Gold Grade Contained
  (Gold g/t) (Ktonne) (g/t) Gold (ounce)
Tassawini 1.00 4,447 2.2 312,000
Tassawini 0.75 6,983 1.7 382,000
Tassawini 0.50 11,237 1.3 466,000
Tassawini 0.35 13,759 1.1 500,000
Sonne 1.00 111 1.2 4,000
Sonne 0.75 359 0.9 11,000
Sonne 0.50 1,312 0.7 29,000
Sonne 0.35 2,655 0.6 47,000

*Table 2: Notes

  1. The reader is cautioned that the figures presented in this table should not be misconstrued as a mineral resource they are only presented to show the sensitivity of the mineral resource estimates to the selection of cut-off grade.
  2. All figures have been rounded to reflect the relative accuracy of the estimates

Takara is required under the Tassawini Agreement to make all reasonable efforts, consistent with technically-and-economically prudent industry practices, to complete a 'Feasibility Study' on the property by June 2012. A full copy of the resource calculation report will be available on the SEDAR website within 45 days of this press release. Takara plans to complete a PEA (Preliminary Economic Assessment) on the Tassawini deposit and a GAP analysis in Q2-Q3 2010.

SRK has also provided a summary of the mineral resource by weathering profile and are presented below:

Table 3: Consolidated Mineral Resource Statement by weathering profile*

  Indicated Mineral Resources Inferred Mineral Resource
  Tonnage (Ktonnes) Gold Grade (g/t) Contained Gold (ounce) Tonnage (Ktonnes) Gold Grade (g/t) Contained Gold (ounces)
Saprolite Total 5,588 1.3 229,000 1,625 0.7 36,000
Transition Total 986 1.1 35,000 61 0.7 1,000
Sulphide Total 4,193 1.3 173,000 240 3.1 24,000
Total 10,766 1.3 437,000 1,926 1.0 62,000

*Table 3: Notes (see footnotes to Table 1)

Quality Control and Assurance of Samples

A rigorous Quality Control and Assurance program (QC/QA) was in place, using control samples and duplicates, as well as Chain of Custody protocols, under the indirect supervision of Terry Tucker, P.Geo. Tamperproof sample bags with zip lock tags were utilized for all of the drill samples. The Tassawini samples were freighted by air in sealed containers to be analyzed at either ALS Chemex in Vancouver or to the ACME sample prep facility located in Georgetown, Guyana. The samples prepped in the ACME's Georgetown facility are air freighted to the ACME analytical laboratory in Santiago, Chile for analysis. Both ALS Chemex and ACME are recognized as ISO 9000 registered laboratories. The control samples, blank and duplicate assay results received for the drilling program demonstrated that the results are considered reliable.

G. David Keller, P.Geo, Terry Tucker, P.Geo. and Pamela Strand, P.Geol., have reviewed and approved the technical information in this press release.

The Acquisition

Pursuant to the terms of the acquisition, Takara has agreed to purchase all of the issued and outstanding shares of StrataGold Guyana Inc. ("SGI"), a private Guyanese company that holds title to the Guyana Gold Projects, namely: (i) the Tassawini Gold Project; and (ii) the BRL Venture (the "Guyana Gold Projects. See Takara's November 13, 2009, March 5, 2010, March 8, 2010 and March 17, 2010 news releases for further details. Subject to receipt of all required shareholder and regulatory approval, in consideration for the acquisition, Takara shall issue 21,810,000 shares to Victoria Gold Corp. There will be a total of 38,944,899 issued and outstanding on a post acquisition and post consolidated basis. The Share Purchase Agreement is subject to customary terms and conditions, the key terms of which are disclosed in Takara's March 8, 2010 news release and includes approval by disinterested shareholders by written consent of Takara holding a simple majority of the outstanding shares. The directors of each of Victoria and Takara have approved the Transaction.

About Takara

Takara is a gold development company focused on the systematic exploration and development of Tasswini and the BRL Venture with Newmont in Guyana.

Statement Regarding Forward Looking Statements

This news release of Takara contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as such information constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward-looking statements in this document include statements regarding: Takara's expectations regarding drilling and exploration activities on properties in which Takara has an interest; and Takara's statements regarding estimates of resources on properties in which Takara has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their respective dates. Important factors that could cause actual results to differ materially from Takara's expectations include among others, risks related to fluctuations in mineral prices; uncertainties related to raising sufficient financing to fund planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of Takara's properties; uncertainties involved in the estimation of resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Takara's operations; risks associated with title to mineral properties; and other risks discussed in Takara's MD&A. Except as expressly required by applicable securities laws, Takara undertakes no obligation to update these forward-looking statements in the event that management‟s beliefs, estimates or opinions, or other factors, should change.

This news release uses the terms "Inferred Resource", "Indicated Resource" and "Mineral Resource". Takara advises readers that although these terms are recognized and required by Canadian securities regulations (under National Instrument 43-101 "Standards of Disclosure for Mineral Projects"), the US Securities and Exchange Commission does not recognize these terms. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred Resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an Indicated or Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Assessment as defined under National Instrument 43-101. Readers are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. The Mineral Resources stated in this news release are not mineral reserves and, in the absence of a current feasibility study, do not demonstrate economic viability. The determination of mineral reserves can be affected by various factors including environmental, permitting, legal, title, taxation, socio-political, and marketing issues on the estimate.

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 accuracy of this news release.

Contact Information

  • Takara Resources Inc.
    Pamela Strand, P. Geol.
    President and Director
    (780) 435-0045 (work) or (780) 903-0820 (cell)
    Takara Resources Inc.
    Jennifer L. Boyle, B.A., LL.B.
    Chief Executive Officer and Chairman
    (647) 430-0966 (work) or (416) 904-2714 (cell)
    Takara Resources Inc.
    Julie Lassonde, B. Sc.
    (647) 430-0966 (work)