Trelawney Mining and Exploration Inc.

Trelawney Mining and Exploration Inc.

March 07, 2011 10:27 ET

Trelawney Announces Initial Mineral Resource Estimate of 4.2 Million Ounces for the Cote Lake Gold Deposit

TORONTO, ONTARIO--(Marketwire - March 7, 2011) - Trelawney Mining and Exploration Inc. (the "Company" or "Trelawney") (TSX VENTURE:TRR)(FRANKFURT:RTW) announces the results of the initial Mineral Resource estimate for the Cote Lake Deposit on the Chester Project located halfway between Timmins and Sudbury in Northern Ontario. The Mineral Resource estimate has been audited by Roscoe Postle Associates Inc. ("RPA") and reported in accordance with National Instrument 43-101 requirements.

Roscoe Postle Associates Inc. has audited the Mineral Resource estimate for the Cote Lake Deposit prepared by Trelawney's Consulting Geologist Jamie Lavigne, P.Geo. The estimate is all classified as Inferred Mineral Resource and totals 131 million tonnes averaging 1.00 g/t Au for 4.22 million ounces of contained gold at a cut-off grade of 0.30 g/t Au. Table 1 shows the Mineral Resource at the 0.30 g/t cut-off grade and at several higher cut-off grades for comparison. The effective date of this Mineral Resource estimate is March 4, 2011.

Trelawney Mining and Exploration Inc. – Cote Lake Deposit
Classification Cut-off Grade
g/t Au
g/t Au
Contained Au
Millions of oz
Inferred 0.30 131 1.00 4.22
Inferred 0.35 122 1.06 4.12
Inferred 0.40 113 1.10 4.02
Inferred 0.50 100 1.21 3.88
1. CIM Definition Standards were followed for Mineral Resources.
2. Mineral Resources are estimated at a pit discard cut-off grade of 0.30 g/t Au.
3. Mineral Resources are estimated using a gold price of US$1,200 per ounce and metallurgical recovery of 95%.
4. Highgrade assays are capped at 25 g/t Au.
5. Bulk density of 2.7 t/m3 was used.
6. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

In order to comply with the CIM Definition Standards requirement of "reasonable prospects for economic extraction", RPA prepared a preliminary Whittle pit shell to constrain the Mineral Resource estimate using a gold price of US$1,200 and other assumed pit parameters. The Mineral Resource extends to a depth of approximately 550 metres below surface. Only mineralization located within the shell has been reported in the Mineral Resource. 

The Cote Lake Mineral Resource estimate is based on the results of 47 diamond core holes totaling 23,500 metres drilled from December 2009 to December 31, 2010. Assays reported from these drill holes up to the February 8, 2011 press release are used in the Mineral Resource estimate. The drill hole assays are capped at 25 g/t Au prior to compositing into 2 m lengths. Three dimensional wireframes were generated using geological information and a minimum grade of approximately 0.30 g/t Au. An inverse distance squared algorithm was used to interpolate gold grades into 10 m by 10 m by 10 m blocks.

Significant additional exploration potential exists within the pit shell of the current resource. These areas were inaccessible over the summer months due to the swampy nature of the terrain in that area. The resource is also open both along strike and to depth from the existing resource model, and will be the focus of the ongoing exploration program this spring. Recently completed geophysics has identified an induced polarization (IP) response that correlates well with the current resource and extends for several hundred metres along strike of the known zone.

Greg Gibson, Trelawney's President and CEO commented, "We are extremely pleased to have identified such a large initial resource on the Cote Lake Deposit from the results of only 12 months of drilling. We look forward to reporting on the current winter drill program and the continuing exploration efforts to define the limits of the deposit."

The expansion and exploration drill program on the Cote Lake Deposit is ongoing with five drill rigs. A sixth exploration drill rig is currently exploring other targets on the 4,200 acre property. The majority of the winter drilling has been completed on the wetlands southwest of the known mineralization that is inaccessible during the summer.

The Trelawney Mineral Resource estimate for the Cote Lake Deposit has been audited and accepted by William E. Roscoe, P.Eng., Principal Geologist with RPA, an independent qualified person under NI 43-101, who has also reviewed and approved the contents of this release. The NI 43-101 Technical Report on the Mineral Resource Estimate for the Cote Lake Deposit will be filed on SEDAR within 45 days of this press release. David Beilhartz, Vice President, Exploration for Trelawney Mining and Exploration, a Qualified Person under NI 43-101, has prepared or supervised the scientific or technical information for the property and verified the data disclosed in this press release.

Trelawney is a Canadian junior mining and exploration company with a focus on Archean gold deposits. The Company's current focus is directed towards the development and continued exploration of the Chester Project, located in Chester Township 20 kilometres southwest of Gogama, Ontario.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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 release.

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