Vior Inc.
TSX VENTURE : VIO

Vior Inc.

September 08, 2005 14:52 ET

Vior Receives Resource and Reserve Estimate on the Douay Project and Douay Properties

QUEBEC, QUEBEC--(CCNMatthews - Sept. 8, 2005) - Vior Inc. (TSX VENTURE:VIO)("Vior") announces that Geostat Systems International Inc. ("Geostat") recently completed a mineral resource and mineral reserve estimate on the company's Douay and Douay West properties. This study also included a pre-feasibility study of a possible open pit production start-up on the upper part of the Douay West gold deposit.

Resource Estimate

The study concludes that indicated resources of the Douay West deposit total 515,000 metric tonnes at 5.94 g/t Au or 98,000 ounces of gold while inferred resources total 529,000 metric tonnes at 5.43 g/t Au or 92,000 ounces of gold. The method used to estimate the resources is by the inverse square of the distance on regular blocks inside the mineralized envelope. Gold values assigned to the computer generated blocks (5 metres in easting; 2.5 metres in northing and 5 metres in elevation) were based on 1.5 metres recalculated composites over original drilling gold assays dataset. In the study, a specific gravity of 2.85 g/cm3 was used. The open-pit resources, for which a cut-off grade of 2 g/t Au was used, are limited between the surface and a vertical depth of 90 metres while material between 90 metres and 400 metres is considered underground resources for which a cut-off grade of 3 g/t Au was applied.

Other gold mineralized zones were also identified on the Douay property for which the following inferred resource calculations were obtained using the average section method: (high values were cut to 31.1 g/t Au; a cut-off grade envelope of 2.0 g/t Au was used for the 531, Main, 10 and 20 zones; a cut-off grade envelope of 0.5 g/t Au was used for the Porphyry zones; all these zones are still at the exploration stage and need further definition drilling)



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Zones Tonnage g/t Au Ounces Au
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531 Zone 730,000 4.9 115,000
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Main Zone 300,000 4.8 46,000
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10 Zone 118,000 2.7 10,000
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20 Zone 50,000 2.7 4,000
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Adam Porphyry Zone 7,100,000 1.1 242,000
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92-7 Porphyry Zone 5,800,000 0.7 121,000
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Central Porphyry Zone 4,400,000 0.8 109,000
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The estimated amount of gold contained in these inferred resource zones on the Douay property total 647,000 ounces. The Douay and Douay West properties therefore contain an aggregate of 98,000 ounces of gold in the indicated resource category and 739,000 ounces in the inferred resource category.

Reserve Estimate

Following the positive results obtained from last winter's shallow drilling campaign (PR June 8, 2005), Geostat was mandated to carry out an open pit pre-feasibility study on the upper portion of the Douay West gold deposit. Whittle 3D software was used to carry an economic pit optimization. The resulting pit design was then modified to incorporate an access ramp. The reserves that are classified as probable represent the portion of the indicated resources contained inside the preliminary modelled pit. A cut-off grade of 2 g/t Au was used. Blast outlines for preliminary mine plan were done in order to assess the real mining dilution from inside waste and isolated blocks. Dilution is estimated at 10 % and most of the blast outlines lie within the ore envelope grading between 1 g/t Au and 2.0 g/t Au. Hence diluted, the probable reserves of the Douay West gold deposit are 270,000 tonnes at 4.74 g/t Au totalling 41,150 ounces. It is envisaged to mine the open pit first and then the deeper zones by underground mining by using a ramp as a main access (phase 2: between 90 and 250 metres) and a conventional three compartment shaft (phase 3: under 250 metres). The Geostat study (Open Pit Pre-feasibility - Phase 1) does not include any underground mining scenario. For the open-pit reserve estimate, the economic and technical parameters are established as follows:



Gold price forecast: (US$ 430.47/oz) CA$ 538.09/oz with 1.25
exchange rate
Metallurgical recovery: 93% (2005 metallurgical test)
Custom milling and transportation cost: CA$ 29/metric tonne
(supplier quote)
Contractor extraction cost- Overburden: CA$1.55/metric tonne
(supplier quote)
Contractor extraction cost- Ore or Waste: CA$3.75/metric
tonne(supplier quote)
Overburden slopes - 26.5, 18.5 and 12.5 degrees
Wall slope in the rock - 45 degrees
No provision for environmental reclamation and no provision for
Quebec Tax
Refunds may be generated from exploration expenditures.


Geostat Recommendation

Geostat recommends a phase 2 geotechnical investigation program to further refine the definition of the overburden properties that could have a significant impact on the slope parameters and consequently, the amount of overburden to be removed. Geostat also recommends a 30 drill-hole exploration program totalling 6,000 metres to define with greater precision the extensions of the mineralization of the Douay West Zone. Once this additional work is completed and the current pit design updated, Geostat recommends that a production scenario, incorporating on-site ore processing facilities, be evaluated since transportation and milling costs account for the largest part of the total costs of this project. In addition, Geostat recommends a 20 drill-hole exploration program totalling 5,000 metres to test known drill-identified targets around the Douay West gold deposit.

Discussion and Analysis

Based on actual reserves and production parameters, the open pit would generate a positive cash return of CA$ 866,000, taking into account an eighteen month CA$ 6.8 million financing required for start up and overburden removal. The proposed open pit has the potential to produce approximately 41,150 ounces of gold. Excluding financing, rehabilitation costs and taxes, the project would generate a 12% undiscounted return. However, additional work including the fine-tuning of the open pit model could improve the economics of the project. The small open pit production scenario, which would have an actual proposed mine life of two years, includes a final ramp that would give access to investigate the underground gold resources of the Douay West gold deposit. The economics for the mining of the gold mineralization located under the proposed open pit were not addressed in this study (phase 2 and 3).

The rate of return of this project is highly sensitive to four major factors: the quantity of overburden to be removed, the price of gold, transportation costs and milling costs. With regard to the price of gold, based on the actual mining schedule, an increase of CA$25 per ounce in the price of gold would add approximately CA$1 million to the forecast return from the proposed open pit scenario.

Vior's management is pleased with this first mineral resource and mineral reserve estimate, compliant with NI 43-101 standards, which confirms the strong potential of the Douay project. In the months ahead, the Company will implement Geostat's recommendation and work on improving the returns of the Douay West project. The NI 43-101 technical report will be filled shortly on SEDAR.

Qualified Person and Data Verification

The Douay and Douay West project mineral resource and mineral reserve are compliant with current standards as outlined in the National Instrument 43-101. The qualified person responsible for the pre-feasibility report, the data verification, the mineral reserve and the mineral resource estimates is Claude Duplessis, P.Eng., President of Geostat. Mr. Duplessis has worked as geological engineer for 17 years. Geostat did a complete verification of all of the technical data available for the Douay project and reviewed Vior's control and analytical quality assurance protocol. Geostat also carried out independent analytical checks of over 59 core samples on the project site between April 20th and 23rd, 2005. These samples were sent to two different laboratories in order to cross check the values provided by Vior. Only four samples from one hole drilled by a previous partner in 1995 in the Douay West deposit showed different gold content in this validation procedure. All the other assay results from the Geostat sampling campaign confirm the presence and the gold content of the selected samples, as well as the integrity of the sample results used in the resource estimation. No statistical bias between the original samples and the re-assays was observed.

Additional Information

The Douay West Project can rely on a complete surface infrastructure (road, power line, head frame, hoist, shaft and collar) that was built in 1997 by a previous partner at a cost of CA$5M. Today, after five years of care and maintenance by Vior, the entire surface infrastructure on the project remains in good condition.

Profil

Vior is a Quebec-based mineral exploration company whose strategy is to explore and develop gold and base metal properties in proven and accessible mining areas. The Company wholly owns the Douay West gold project, which is at a pre-feasibility stage, and other gold and base metal exploration interests in the Abitibi region of Quebec. Inco Limited is the largest shareholder of Vior with a 17% interest in the company.

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