White Tiger Gold Ltd.
TSX : WTG

White Tiger Gold Ltd.

April 07, 2011 13:58 ET

White Tiger Gold Announces Discovery of New Gold Mineralization Zone

TORONTO, ONTARIO--(Marketwire - April 7, 2011) - White Tiger Gold (TSX:WTG) (the "Company") is pleased to announce the discovery of a new zone of significant gold mineralization situated to the southwest of its current open pit gold mine.

Highlights

  • Recent drilling completed in February of this year has resulted in the discovery of a major zone of gold mineralization located immediately to the southwest of the current open pit operation.
  • Limited drilling to the northeast of the open pit has also encountered oxide gold mineralization but requires additional drilling to define the dimensions of the mineralized zone.
  • A total of 106 diamond drill holes were completed in the Southwest Flank Zone on 50 and 100m sections at 50m intervals for a total of 11,682m.
  • The drilling has outlined two zones of gold mineralization with a combined strike length of 1200 m, ranging up to 270 m in width and tested to a vertical depth of 160 m. Potential exists to join the two zones of mineralization with additional drilling.
  • Potential exists to extend the zone of gold mineralization along strike and at depth.
  • Gold mineralization is developed along the Savkino Fault. The fault has been traced intermittently over a strike length of 6 km of which only 2.5 km has been drill tested.
  • Extensive alluvial gold mineralization is sourced from Permian granites located in the northwest part of the license area. This area also contains numerous bedrock Zn-Pb-Ag-Au-Sn prospects which have not been drill tested.
  • Cyanide bottle roll leach tests conducted by SGS Mineral Services Chita, Russian Federation, are currently in progress to determine metallurgical recovery of gold.
  • Micon International Co Limited has been contracted to undertake a mineral resource estimate for the Southwest Flank gold mineralization which is expected to be available within 6-8 weeks.

Mine Location

The Savkino heap leach oxide gold mine is located in the Zabaikal Region of southeast Siberia in the Russian Federation. The mine is situated approximately 400 km from Chita, the administrative capital the Region and 15 km west of the north border of China.  Access to the mine is afforded by the Chita-Khabarovsk federal highway to Priargunsk and then serviced by all-weather gravel road to the mine site.

Savkino Gold Deposit

The Savkino gold deposit lies in the Eastern Trans-Baikal polymetallic belt and the license areas host a wide variety of base and precious metal occurrences in addition to areas of placer gold mineralization.

The Savkino mineralization exhibits geological and geochemical characteristics analogous to Carlin-type disseminated gold deposits. Gold mineralization is partly controlled by a steeply-inclined, reverse-faulted curvilinear contact between Cambrian and Jurassic stratigraphic units which is intermittently exposed over a strike length of 6 km.

The majority of the gold mineralization is hosted primarily by Cambrian dolostone, siltstone and shale favoring the footwall limb and hinge zone of the asymmetrical to recumbent Savkino Anticline. Lower grade discontinuous mineralization is also developed in the hangingwall of the Anticline Mineralization. The mineralization has no clear geological boundaries or preferred host rocks and is defined on the basis of sampling and assaying.

The Central Zone of oxide gold mineralization which is currently being mined extends for a strike length of 950 m and has been traced to a minimum depth of 175 m and is open down dip. Historical wide spaced drilling over the Northeast and Southwest Flanks intersected near surface disseminated oxide gold mineralization. The 2010-2011 drilling program reported herein was designed to test the potential extension of the Central Zone mineralization.

Savkino Deposit Mineral Resources and Mineral Reserves

The Savkino mineral resource and mineral reserve estimates were prepared by Micon International Co Limited ("Micon") in 2010 following CIM guidelines in compliance with National Instrument 43-101 ("NI 43-101"). Such estimates are respectively set out below in Tables 1 and 2.

Table 1: Mineral Resource Estimates - Savkino Gold Deposit - 0.5 g/t Au Cutoff – as of September 1,2010
Category   Tonnage
(kt)
  Grade
(g/t Au)
  Gold
(kg)
  Gold
(koz)
Measured   359   1.29   464   15
Indicated   4,425   1.09   4,837   155
Measured + Indicated   4,784   1.11   5,301   170
Inferred   461   1.61   742   24
 
Table 2: Mineral Reserve Estimates - Savkino Gold Deposit - 0.7 g/t Au Cutoff – as of September 1, 2010
Category   Tonnage
(kt)
  Grade
(g/t Au)
  Gold
(kg)
  Gold
(koz)
Proved   269   1.46   393   13
Probable   2,463   1.27   3,122   100
Proved + Probable   2,732   1.29   3,515   113
                 
Low Grade (0.5-0.7 g/t Au)
Marginal   960   0.6   580   19
Waste   12,977            
Strip Ratio (t:t)   5:1            

Savkino Production Details

The Savkino gold deposit was approved for construction and commencement of operations by the Federal authority Glavsgosexpertiza on May 30, 2008. Mining is from an open pit at 1,823 t/day with heap leach cyanide extraction process.

The first gold doré was produced in October 2008 and to date the mine has produced 28,379 ounces of gold.

During 2010, the Savkino heap leach operation produced 15,157 ounces of gold at an average recovery of 79.7%. The average head grade of the ore was 1.29 g/t Au.

2010-2011 Drilling Southwest Flank Zone

A total of 106 diamond drill holes were completed on 50 and 100 m sections at 50 m intervals for a total of 11,682 m. The drilling has defined two mineralized bodies. The 100 m gap between the mineralized bodies has not been drilled due to lack of soil geochemical and geophysical responses. The Company believes that potential exists to join the two zones of mineralization with additional drilling.

Oxidation is variable in the Southwest Flank Zone with minor sulphides present in some of the drill holes. Primary gold mineralization is associated with variable silicification and fine quartz vein stockwork with minor disseminated pyrite and marcasite. Oxide-type mineralization is associated with intensive clay-iron oxide alteration and silicification, with the highest gold grades occurring in zones of faulting, shearing and brecciation.

The largest and most continuous mineralized body to the southwest extends over a strike length of 780 m and variable width from 50 to 200 m, with variable dip 40 to 70°SE and intersections to 160 m vertical depth. Mineralization occurs in two subparallel structural zones which are highly variable in thickness along strike and down dip.

The second mineralized body closest to the mine in the Central Zone has similar mineralogical characteristics as the oxide zone in the main body, but continuity has not been confirmed due to irregular drill spacing. This zone extends approximately 420 m along strike and 270 m wide. The zone dips 40 to 50°SE and has been intersected to a maximum depth of 120 m.

The Company is presently undertaking cyanide assaying on all fire assay results ≥0.2 g/t Au to determine the leaching characteristics of the gold mineralization.

The drill hole statistics and significant assay intervals greater than or equal to 0.3 gpt Au are summarized in Table 3 below.

Micon has been involved with the Savkino project since its inception and is intimately familiar with all aspects of the mining operation. Micon has been contracted to undertake a mineral resource estimate for the Southwest Flank Zone. The Company anticipates such estimate will be available within 6-8 weeks.

Regional Potential Savkino License Area

Extensive alluvial gold mineralization is sourced from Permian granites located in the northwest part of the license area. This area contains numerous bedrock Zn-Pb-Ag, and Ag-Au prospects, which have not been drill tested. In addition, four significant Ag-Au soil anomalies have been defined within and along the contact of the Permian granitic batholiths. The most significant Ag soil anomaly measures 3 km in length and up to 1.5 km in width and is coincident with a strong IP chargeability high.

Sample Preparation, Analytical Protocol and Quality Control

Analytical samples were taken from half core cut with a diamond saw and composited over 1 m intervals. Samples were prepared at site by Vostokgeologiya LLC, an independent government approved geological contracting company, and assayed at the independent commercial laboratories of ALS Laboratory Group and SGS Mineral Services in Chita.

Samples were crushed to 100% passing -5 mm, sub-sampled using a rotary sample divider, recrushed to -2 mm and pulverized to 95% passing 75 microns, and sub-sampled to 200 g submitted to the commercial laboratory. Control samples, including 4 Certified Reference Material (CRM), 5 pulp duplicates and 3 blanks were inserted with each analytical batch of 100 samples. CRM and blank material is internationally certified and supplied by Geostats Pty Ltd in Australia and Rocklabs Ltd. in New Zealand (each independent of the Company).

Analytical results of control samples indicate there is no apparent analytical bias or systematic contamination of samples, and accuracy is within the stated specifications of the CRM.

Qualified Persons

Mr. Stanley C. Bartlett, PGeo., Managing Director for Micon, is independent of the Company and a Qualified Person under NI 43-101, and has conducted quality control tests, has reviewed the technical information included in this press release and has verified the data disclosed in this press release, including sampling, analytical and test data underlying the information.

Drilling, logging, sampling and dispatch were under the direct supervision of Vostokgeologiya LLC, an independent geological consulting firm certified under the Law of the Russian Federation # 128- FZ with the latest revision dated December 29, 2010.

Micon has prepared a NI 43-101 compliant technical report (under the supervision of Stanley C. Bartlett, with contributions by Jonathan Steedman, who is also a Qualified Person under NI 43-101) describing the mineral resources and mineral reserves of Ildikangold's Savkino gold mine and heap leach operation. Micon's complete technical report titled "Savkino Gold Project, Chita Region, Russian Federation – Mineral Resources and Reserves – NI 43-101 Technical Report", dated November 22, 2010 is available on the Company's SEDAR profile at www.sedar.com.

About White Tiger Gold

The Company is a TSX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation. The Company currently operates the Savkino heap leach gold operation located in southeastern Siberia which is expected to produce 17,361 oz Au in 2011. Plans are underway to expand gold production at Savkino and to develop a second gold-copper mine at the Company´s Nasedkino property situated in Chita Region in southeast Siberia. The Company also holds 3 additional early-stage gold exploration licenses in prospective geological environments located in central and northeast Siberia.

Table 3: Southwest Flank Zone Drill Statistics and Significant Assay Intervals
Section Line DDH   Depth
(m)
  Azimuth (deg)   Inclination
(deg)
  From
(m)
  To
(m)
  Length
(m)
  Au
(g/t)
L_012 448   157.7   301   -62                
  449   139   299   -61                
  911   148.5   298   -60                
  919   190.7   299   -63                
L_016 957   50   300   -61   33   39   6   0.39
  958   175   300   -61   103.2   111.5   8.3   0.39
  958   175   300   -61   114.4   175   60.6   0.66
L_020 434   106.5   299   -63   91   101   10   1.04
  435   120   303   -63   105.1   120   14.9   0.77
  446   100   301   -63   53.2   62   8.8   2.14
  447   44   298   -61   25.8   44   18.2   0.95
  incld               35   36   1   5.30
  915   162.9   301   -59   58   153.3   95.3   1.07
  939   138.7   296   -63   120   126.7   6.7   0.44
  939   138.7   296   -63   132   138.7   6.7   0.76
  940   148   298   -60   72   91   19   1.06
L_024 945   124.8   297   -63   5.6   106   100.4   1.51
  incld               16   21   5   7.30
  incld               28   32   4   5.80
  947   103.4   299   -63   43   74   31   0.77
  947   103.4   299   -63   82   99   17   0.40
L_028 900   137   295   -62   14.2   23   8.8   0.54
  900   137   295   -62   38   52   14   0.37
  900   137   295   -62   113   119   6   0.41
  901   133   299   -64   32   38   6   1.20
  901   133   299   -64   46   83   37   0.73
  901   133   299   -64   101   107   6   0.36
  903   105.5   299   -63   16   59   43   1.21
  903   105.5   299   -63   67   75   8   0.41
  903   105.5   299   -63   86   101   15   0.61
  912   81   296   -59   3.7   16   12.3   1.87
  912   81   296   -59   29   81   52   0.89
  914   161   299   -62   103   120   17   0.84
  918   91   300   -60   46   78.4   32.4   0.83
  932   80   298   -61   52   59   7   0.52
  932   80   298   -61   64   80   16   0.83
  933   100   299   -61   12.9   85   72.1   1.46
  incld               20   24   4   8.10
  incld               27   29   2   8.00
L_032 948   58.8   305   -59   21   56   35   1.20
  949   91   301   -61   20   63   43   0.57
  949   91   301   -61   64   88   24   0.93
  955   118   294   -62   3   12   9   0.34
  955   118   294   -62   17.7   47   29.3   0.57
  955   118   294   -62   93   110   17   0.49
  956   96   301   -62   14   19.6   5.6   1.47
  956   96   301   -62   25.6   34.5   8.9   1.14
L_036 432   126.8   302   -64   14.5   44   29.5   0.48
  432   126.8   302   -64   55   65   10   0.40
  433   187.3   296   -64   73   78.8   5.8   0.88
  433   187.3   296   -64   84   100   16   0.39
  904   94   296   -62   4   51   47   0.58
  904   94   296   -62   52   83   31   0.46
  913   75.2   299   -61   3.2   10   6.8   0.32
  913   75.2   299   -61   14   30   16   0.35
  913   75.2   299   -61   37   59   22   0.57
  930   90.6   304   -61   7.4   45   37.6   0.62
  930   90.6   304   -61   85   90.6   5.6   0.55
  931   80.4   295   -62   1   36   35   0.89
  931   80.4   295   -62   41   74.5   33.5   0.62
  938   46   298   -58   4   12   8   0.48
  938   46   298   -58   24   46   22   2.07
  incld               39   42.8   3.8   6.50
L_040 941   91   300   -62   6   25.6   19.6   0.87
  incld               24.8   25.6   1   8.80
  941   91   300   -62   34.4   75   40.6   0.78
  942   65.6   298   -60   3   17   14   0.47
  942   65.6   298   -60   22   55   33   0.74
  incld               47   48   1   5.50
  944   88   299   -63   74   88   14   0.86
  953   37.4   315   -62   3   34   31   0.80
L_044 430   120.2   308   -64   38   71.8   33.8   1.07
  incld               38   39   1   11.60
  431   46.5   297   -62   0   28   28   0.79
  436   122.4   301   -61   57   73   16   0.57
  436   122.4   301   -61   91.4   99   7.6   0.46
  928   64   296   -61   6   13   7   0.52
  928   64   296   -61   22   48   26   1.20
  929   100.1   301   -61   65   89   24   0.53
L_048 951   79   307   -62   52   61.7   9.7   2.14
  incld               53   54   1   9.50
L_052 427   60   300   -63   19   26   7   0.32
  427   60   300   -63   34   39   5   0.63
  428   130   302   -62   69   104   35   0.62
  437   120   0   -90   59   66   7   0.33
  437   120   0   -90   69   77.1   8.1   0.51
  442   166   300   -64   126.5   132   5.5   0.78
  442   166   300   -64   133   148.5   15.5   0.78
L_060 905   71.9   299   -63   16   61.6   45.6   1.63
  incld               18.5   19.6   1.1   9.80
  incld               20.7   21.8   1.1   6.00
  incld               35   36   1   6.75
  906   149   297   -64   66   71.4   5.4   5.34
  incld               67.9   69.4   1.5   19.30
  907   174.8   303   -65   7   25   18   0.31
  907   174.8   303   -65   26   31   5   0.35
  907   174.8   303   -65   87   97   10   0.33
  907   174.8   303   -65   109   116   7   0.43
  907   174.8   303   -65   125   132   7   0.45
  907   174.8   303   -65   146   174.8   28.8   0.53
  916   64   301   -61   17   30   13   1.16
  923   109.3   300   -63   83   108.6   25.6   0.82
  incld               87   87.8   0.8   7.00
  925   100   302   -62   40   53   13   0.57
  925   100   302   -62   62   83.8   21.8   1.04
L_068 423   84   304   -62   41   49   8   0.42
  424   156.7   303   -63   104   153   49   0.61
  425   199   306   -63   3   17   14   1.83
  incld               4.7   5.7   1   8.85
  425   199   306   -63   159   170   11   0.52
  426   140   307   -63   48   54.7   6.7   2.61
  incld               50   51   1   6.52
  441   128.9   302   -63   2   16   14   0.60
  441   128.9   302   -63   84   125   41   0.59
  443   98.3   297   -64   56   63   7   4.66
  incld               58   60   2   16.20
  917   94   298   -60   30.7   40.1   9.4   0.43
  917   94   298   -60   48   56   8   0.33
  921   70.3   293   -64   59   64   5   2.95
  incld               59   60   1   8.10
L_076 417   121   302   -62   103   108   5   0.70
  418   136   296   -63   124   132   8   0.53
  419   190   292   -63   167   183   16   0.71
  420   256.5   297   -63   223   229   6   0.30
  420   256.5   297   -63   244   251   7   0.66
L_092 410   120   302   -61   51   69   18   0.36
  411   140   303   -63   4   19   15   0.32
  413   174.6   302   -62   62   74   12   0.37
  413   174.6   302   -62   118   128   10   0.32
  422   190.5   301   -62   86   94   8   0.48
L_100 400   40   306   -60   1   17   16   0.34
  401   57.4   298   -60   0   6   6   0.30
  401   57.4   298   -60   12.8   18   5.2   0.71
  401   57.4   298   -60   23   45.4   22.4   0.88
  402   80   303   -60   25   66   41   0.62
  403   105.6   305   -59   47.9   60.9   13   0.37
  403   105.6   305   -59   69.9   74.9   5   0.57
  404   100   302   -58   53   60   7   0.46
  404   100   302   -58   74   79   5   0.32
  406   140   303   -60   21   27   6   0.57
  407   150   308   -59   38.2   73   34.8   0.78
  421   166.4   297   -63   67   76   9   0.71
  421   166.4   297   -63   82   104.6   22.6   0.66
L_100-S_255 494   121.2   323   -61   11.8   49   37.2   2.23
  incld               22   23   1   6.00
  incld               26   27   1   5.20
  incld               28   29   1   6.40
  incld               35   37   2   9.14
  495   50.9   320   -61   0.5   40.5   40   0.70
  496   148.5   324   -61   26   34   8   0.48
  496   148.5   324   -61   52   97   45   0.74
  496   148.5   324   -61   104   112   8   0.47
  909   31.3   320   -62   0   24   24   1.04
  910   82.2   320   -59   2.4   9   6.6   1.83
Note: true widths are currently estimated at 80-90% of drilled widths

Forward-Looking Information

This news release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding mineral resource and mineral reserve estimates, drilling and other exploration results, assaying, potential mineralization, the anticipated timing for the completion of a mineral resource estimate for the Southwest Flank gold mineralization, the Company's exploration and development plans, the Company's beliefs regarding the potential for joining the two Southwest Flank zones and extending the zone of gold mineralization, success of exploration, potential expansion of gold production at Savkino and the timing and amount of future production and the Company's plans to develop a second gold-copper mine at its Nasedkino property) are forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks related to the exploration, development and production stages of the Company's properties; uncertainties relating to the availability and costs of financing needed to complete exploration, development and production activities; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurances can be given that the indicated levels of gold will be produced); delays in the exploration and development of, and/or commercial production from, the properties in which the Company has an interest; the uncertainties involved in interpreting exploration results and other geological data; unexpected geological conditions; the speculative nature of mineral exploration and development, including the uncertainty of and the imprecision in mineral resource and reserve estimates;
success of future development initiatives; operating performance of facilities; the possibility that the results of the current assaying and future exploration results will not be consistent with the Company's expectations; changes in the price of gold or certain other commodities (such as fuel and electricity); fluctuations in the currency markets; changes in equity markets; changes in interest rates; failure to complete financings on favourable terms or at all; exploration, capital and other costs varying significantly from estimates; uncertainties relating to the availability and costs of financing needed in the future; changes in national and local government legislation, taxation, controls, policies and regulations; political developments in Russia; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; and the other risks involved in the mineral exploration business. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein. Additional information about these assumptions and risks and uncertainties are contained in the Company's filings with securities regulators, including its management's discussion and analysis dated March 30, 2011 (available on SEDAR at www.sedar.com). All of the forward-looking information made in this news release is qualified by the foregoing cautionary statements and those made in the "Risk Factors" section of the Company's most recently filed Annual Information Form dated March 30, 2011.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.

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