New Dimension Reports Updated Mineral Resource Estimate for the Las Calandrias Project, Santa Cruz Province, Argentina.
Indicated Resource: 391,000 Ounces Gold + 6,070,000 Ounces Silver
Inferred Resource: 42,100 Ounces Gold + 401,500 Ounces Silver
New Dimension Resources Ltd. (TSXV:NDR.VN) (the "Company" or "New Dimension") is pleased to report the results of an updated Mineral Resource Estimate ("MRE") for the Las Calandrias Gold-Silver Project in Santa Cruz Province, Argentina. The updated MRE has been prepared by independent mining consultants AGP Mining Consultants Inc. ("AGP Mining") in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The updated MRE includes contributions from both the Calandria Sur and Calandria Norte deposits (Figures 1&2); a detailed evaluation of the mineral resource potential of the adjacent high-grade Morena vein/breccia system will continue over the coming months.
-- The updated Mineral Resource Estimate ("MRE") for Las Calandrias has been reported utilizing an optimized constraining shell, and is based on the concept of an open pit for the Calandria Sur deposit and an open pit and possible underground operations for the Calandria Norte Deposit. -- The updated MRE confirms the robust nature of the Las Calandrias gold-silver resource, and has increased global Indicated Category gold resources contained within constraining pit shells by 22% or 69,000 ounces. Significant potential also still exists for the discovery of new mineral resources at Las Calandrias, especially within the Morena and Despreciada vein/breccia systems, in addition to within new prospects (e.g. Bozal) in the broader Las Calandrias District. -- The updated MRE for Las Calandrias, as reported by sector:
Calandria Sur Deposit (Figures 3&4) - Mineral Resources within constraining Shell
Grades Contained Metal Resource Cut-off Grade Tonnage Au Ag Au Ag (gpt Au) (,000 t) (gpt) (gpt) (oz Au) (oz Ag) --- Indicated Varied 7,424 1.33 24.65 318,000 5,884,000 --- Inferred Varied 1,739 0.73 7.17 41,000 401,000 ---
Calandria Norte Deposit (Figure 5) - Mineral Resources within constraining Shell
Grades Contained Metal Resource Cut-off Grade Tonnage Au Ag Au Ag (gpt Au) (,000 t) (gpt) (gpt) (oz Au) (oz Ag) --- Indicated >0.8 604 3.12 8.20 61,000 159,000 --- Inferred >0.8 19 1.31 0.69 1,000 400 ---
Calandria Norte Deposit - Mineral Resources below constraining shell
Grades Contained Metal Resource Cut-off Grade Tonnage Au Ag Au Ag (gpt Au) (,000 t) (gpt) (gpt) (oz Au) (oz Ag) --- Indicated >1.5 131 2.82 6.30 12,000 27,000 --- Inferred >1.5 2 1.71 2.01 100 100 ---
Notes to Accompany Calandria Sur MRE: Summation errors may occur due to rounding; Mineral Resources are reported within an optimized constraining shell; Block matrix is 6m x 6m x 5m (length x width x height); Grades are estimated by ID3 interpolation; Density was interpolated by ID2. Blocks not populated by ID2 were assigned the mean density 2.21; Cut-off grade for MRE varies by oxide zone (0.3 g/t Au oxide; 0.4 g/t Au transition; and 0.8 g/t Au primary zones); Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability Constraining pit parameters: (in $US) Metal Price: $1,400/oz Au; $18.50/oz Ag (based on 3 year rolling average seller's prices) Metal Recoveries: Au (94%-oxide; 73% transition; 80% primary), Ag (88%-oxide; 78% transition; 80% primary) Mining Cost: $2.50/t Processing plus General and Administration: $11-oxide; $11-transition; $25-primary Pit Slope: 45° Notes to Accompany Calandria Norte MRE: Summation errors may occur due to rounding; Mineral Resources are reported within, and below, an optimized constraining shell; Block matrix is 5m x 3m x 5m (length x width x height); Grades are estimated by ID3 interpolation; Density was assigned the mean density 2.41; Cut-off grade used for reporting MRE within constraining shell is 0.8 g/t Au; Cut-off grade used for reporting MRE below constraining shell is 1.5 g/t Au Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Constraining pit parameters: (in $US) Metal Price: $1,400/oz Au; $18.50/oz Ag (based on 3 year rolling average seller's prices) Metal Recoveries: Au (80%), Ag (84%) Mining Cost: $2.50/t Processing plus General and Administration: $25 Pit Slope: 45°
-- The previous MRE for the Las Calandrias Project was reported on an unconstrained basis. On a like-for-like basis (all mineral resources contained within constraining shell), increases in both average gold grade and total contained gold ounces are reported for Calandria Sur (+10% increase in Au grade and +21% increase in contained gold ounces in Indicated Category). At Calandria Norte, the 2018 MRE reports an increase of +13,000 oz in contained ounces (+27%) in Indicated Category. -- Mineral resources at the Calandria Sur deposit are bounded to the south by the Calandria I claim block boundary.
Calandria Sur Deposit - Resource Comparison
Classification Previous MRE September 2018 MRE Oxide COG >0.3 gpt Au Oxide COG >0.3 gpt Au Transition COG > 0.4 gpt Au Transition COG > 0.4 gpt Au Primary COG > 0.8 gpt Au Primary COG > 0.8 gpt Au --- Tonnage Au Contained Au Tonnage Au Contained Au Increase in ('000 t) (gpt) (oz Au) ('000 t) (gpt) (oz Au) Contained Au (oz Au) Indicated 6,755 1.21 262,000 7,424 1.33 318,000 +56,000 --- Inferred 228 1.13 8,500 1,739 0.73 41,000 +32,500 ---
Note: Previous MRE and 2018 MRE are reported at the same Au cut-off grades and within the 2018 constraining shell Previous MRE reported using 2011 Oxide Zones; 2018 MRE reported using updated 2018 Oxide Zones
Calandria Norte Deposit - Resource Comparison
Classification Previous MRE September 2018 MRE COG > 0.8 gpt Au COG > 0.8 gpt Au --- Tonnage Au Contained Au Tonnage Au Contained Au Increase in ('000 t) (gpt) (oz Au) ('000 t) (gpt) (oz Au) Contained Au (oz Au) Indicated 366 4.09 48,000 604 3.12 61,000 +13,000 --- Inferred 101 2.14 7,000 19 1.31 1,000 -6,000 ---
Note: Previous MRE and 2018 MRE are reported at the same Au cut-off grades and within the 2018 constraining shell
Link to figures:https://newdimensionresources.com/site/assets/files/13136/2018_10_calandrias_mre_update_figs.pdf
Eric Roth, New Dimension's CEO, commented today: "I am pleased to be able to report our updated Mineral Resource Estimate for the Las Calandrias Project, which has shown growth even with tighter technical constraints being placed on the outlining of mineral resource areas. And this resource growth occurred without any potential new contributions from the high-grade Morena vein/breccia system, for which we had insufficient time to evaluate in detail. Significant potential still exists at the Las Calandrias Project to expand the known mineralization at Morena (where only the southern end has seen any meaningful drilling), together with the nearby Despreciada-Nido vein system (untested in the 2018 drill program).
With the arrival of the Patagonian summer field season, our geological teams will now accelerate field activities and the process of evaluating and ranking vein targets at both Las Calandrias and elsewhere within our 860 square kilometre portfolio. This field work is expected to lead to the definition of new high-grade gold-silver targets for drill testing during 2019".
Las Calandrias Mineral Resource Estimate Authorship, Parameters, and Methodology
The updated Mineral Resource Estimate for the Las Calandrias Project was prepared by Mr. Paul Daigle, associate resource geologist with AGP Mining Consultants Inc. and an Independent Qualified Person as defined by Canadian National Instrument NI-43-101 Standards of Disclosure for Mineral Projects. The Mineral Resource Estimate was completed using the following parameters:
-- Mineral resources are estimated in accordance with the CIM Mineral Resource definitions referred to in NI 43-101. This mineral resource estimate has an effective date of 14 September, 2018 and was carried out by AGP Mining Consultants Inc. for the Las Calandrias Project, which includes the Las Calandrias Sur and Las Calandrias Norte Deposits. -- The estimate was completed based on the concept of an open pit for Las Calandrias Sur Deposit; and an open pit and possible underground operations for Las Calandrias Norte Deposit. -- For the 2009-2012 drill campaigns, the samples were assayed at ALS Laboratories in Mendoza, Argentina. Sample preparation included weighing, drying, crushing of the entire sample to greater than 70% -2mm, taking a split of 250g, and pulverizing the split to greater than 85% passing 75microns (ALS code: PREP-31, DRY-22). Analyses consisted of gold assays and multi-element Inductively Coupled Plasma (ICP) analysis. Gold analyses for all samples were by fire assay (FA) with an atomic absorption (AA) finish (ALS code: Au-AA24). Any results over 10g Au/t were checked using a gravimetric finish (ALS code: Au-GRA22). The 34-element ICP analyses (ALS code: ME ICP41 package) used aqua regia digestion. Silver grades exceeding 100 g Ag/t were checked by FA with a gravimetric finish (ALS code: Ag-GRA21). In 2012, some samples were analyzed for mercury using a cold-vapor AA method (ALS code: Hg-CV41) -- For the 2018 drill program, the samples were sent to Alex Stewart International S.A. (ASI) in San Julian, Argentina for sample preparation; and to ASI in Mendoza, Argentina for analysis. Sample preparation included weighing, drying, crushing of the entire sample to greater than 80% -2mm, taking a split of 250g, and pulverizing the split to greater than 95% passing 106 microns (ASI code: P-1). Analyses consisted of fire assay for gold and multi-element ICP analysis (ASI code: ICP-AR-39). The 39-element ICP analyses used an aqua regia digest and optical emission spectrometry (ICP-OES) finish. Gold analyses for all samples were by FA with an AA finish (ASI code: Au4-50). Any silver values over detection limit used FA with a gravimetric finish (ASI code: Ag4A-50). -- AGP validated the assays in the database using the laboratory certificates and spreadsheets from ALS and from Alex Stewart. Approximately 20% of the database was reviewed against the certificates and no issues were encountered. -- The quality control and quality assurance program for the New Dimension drilling consisted of regular insertion of blanks, duplicates and certified reference materials obtained from Geostat Pty. Ltd., O'Connor (Perth), Australia. -- The Las Calandrias Sur Deposit was interpolated with 147 diamond drill holes completed by previous operator, Mariana Resources Ltd. ("Mariana") between 2009 and 2012, totalling 23,173 metres. The Las Calandrias Norte Deposit was interpolated with 51 diamond drill holes completed by Mariana and New Dimension between 2009-2012 and 2018, totalling 17,530 metres of drilling; and nine trenches completed by Mariana in 2009. -- Gold and silver mineralization mainly occurs within a rhyolite dome at the Calandria Sur and, within a breccia zone that cuts a rhyolite dome in Calandria Norte. A country rock wireframe was created surrounding both the Calandria Sur and Norte rhyolite dome wireframes. A higher-grade core at Calandria Sur was developed using an indicator model at a 1.0 gpt Au indicator. Mineralization at Calandria Norte is mainly confined within the breccia zone, striking roughly 055Â°Az and dipping approximately -60Â° to the northwest, and varies in true thickness from 2 m to 15 m. This breccia zone was created in Leapfrog and manually adjusted to capture the logged breccia zone. Occurrences of gold mineralization occur sporadically in the hanging wall and footwall of this zone, within the rhyolite dome. -- Mariana sampled most of the Calandria Sur and Calandria Norte drill core nominally between 0.5 and 2 m intervals. New Dimension sampled the drill core nominally at 1 m intervals. Composite intervals were created at an average composite length of 2.0 m. -- For the treatment of outliers in the Calandria Sur Deposit, raw assays were capped at 28.60 gpt Au and 12.05 gpt Au; and 602.00 gpt Ag and 208.00 gpt Ag; within the core and dome domains, respectively. In the Calandria Norte Deposit, raw assays were capped at 64.00 gpt Au and 93.60 gpt Ag in the breccia zone domain; and at 9.78 gpt Au and 47.50 gpt Ag in the rhyolite dome and country rock domain. -- Specific Gravity (SG) in the resource models was derived from a dataset of 451 measurements. The specific gravity measurements were carried out by Mariana using the wet/dry method. For Calandria Sur, 410 SG values were interpolated using inverse distance squared method, from the well-distributed measurements in the deposit. Any block not interpolated were assigned the average SG value of 2.21. For Calandria Norte, the dataset was made up of 41 selected measurements. Due to the low population of density data the block model was assigned the average SG value of 2.41. -- A (3D) geological and block model was generated using Geovia GEMSâ?¢ 6.8.1 software. Calandria Sur block model matrix size of 6 m x 6m x 5 m (width x length x height) and was selected based on the size deemed suitable for an open pit mining scenario. Calandria Norte block model matrix size of 5 m x 3 m x 5 m (width x length x height), rotated 35Â°counter-clockwise, and was selected based on the size deemed suitable for both an open pit and possible underground mining scenario. -- Spatial analysis did not produce any decent variograms due to the high variability of the gold and silver grades in both deposits. The grade models were interpolated using inverse distance cubed, and validated using inverse distance squared and nearest neighbour models. -- The interpolation was carried out in two passes with increasing search ellipsoid dimensions. For both zones, the classification was based nominally on the number composites used to estimate a block and the distance to the nearest composite. Isolated Inferred blocks within core areas of Indicated resource blocks were captured within a wireframe and upgraded to the Indicated Category. -- In 2012, preliminary metallurgical testwork was completed on material from the oxide, transition and primary zones of the Calandria Sur Deposit. Testwork was carried out by ALS in Sydney, Australia (formerly Metcon Laboratories Pty. Ltd.). The testwork involved a Leachwell(ÂR) test to determine how amenable the material was to a leaching process. -- Under CIM definitions, Mineral Resources should have a reasonable prospect of eventual economic extraction. An optimized constraining shell has been applied to capture reported Mineral Resources. A gold price of US$ 1400/oz Au and US$ 18.50/oz Ag were used for the cut-off calculation which corresponded to three year rolling average seller's price as of September 14, 2018. The cut-off calculation included metallurgical recoveries based on metallurgical testwork to date by oxide zone. In order to assess the Mineral Resources at Calandria Sur, an in situ resource cut-off grade between 0.3 gpt Au and 0.8 gpt Au (varies by oxide zone) has been applied for potential material amendable to open pit extraction. For the Mineral Resources at Calandria Norte, an in situ resource cut-off grade between 0.8 gpt Au has been applied for potential material amendable to open pit extraction and a cut-off grade of 1.5 gpt Au for material below the constraining shell. -- The quantity and grade of reported Inferred resources in this estimation are conceptual in nature, and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured resource. It is uncertain if further exploration will result in upgrading them to an Indicated or Measured resource category. -- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. -- Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade, and contained metal content.
Qualified Persons Statement
The technical content of this press release has been reviewed by Paul Daigle, P.Geo., Associate Senior Geologist of AGP Mining. Mr. Daigle is responsible for the Technical Report and Mineral Resource Estimate for the Las Calandrias Project, is independent of New Dimension Resources and is a "Qualified Person" as defined by NI 43-101.
All information relating to exploration activities has been reviewed by Eric Roth, Chief Executive Officer and Executive Director of New Dimension Resources. Mr Roth holds a Ph.D. in Economic Geology from the University of Western Australia, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM), and is a Fellow of the Society of Economic Geologists (SEG). Mr Roth has over 25 years experience in international minerals exploration and mining project evaluation.
On Behalf of the Board of New Dimension Resources Ltd.
"Eric Roth"___________________________Eric Roth, Ph.D., FAusIMMPresident & CEO
About New Dimension ResourcesNew Dimension is engaged in the acquisition, exploration and development of quality mineral resource properties throughout the Americas, with a focus on precious metals. The Company's current focus is on the discovery through drilling of new high-grade gold-silver resources at its 100%-owned Las Calandrias, Los Cisnes and Sierra Blanca projects, all located in the highly prospective Deseado Massif of Santa Cruz Province, southern Argentina. The Company also holds an option on the Savant Lake gold project in Ontario, together with an active JV interest (with Yamana Gold) in the Domain gold project in Manitoba.
About AGP Mining Consultants Inc.AGP Mining Consultants Inc. is an Ontario-based mining consulting firm specializing in mine engineering (underground and open pit), mineral resource estimation, metallurgical development and process engineering, geotechnical and water resources engineering, infrastructure and project management.
Cautionary Notes and Forward-looking StatementsThis news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of New Dimension, including the timing, completion of and results from the drill programs described in this release. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by New Dimension in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-looking information include those described under the heading "Risks and Uncertainties" in New Dimension's most recently filed MD&A. New Dimension does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.
Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE New Dimension Resources Ltd.
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SOURCE: New Dimension Resources Ltd.
New Dimension Contacts: Eric Roth, Email: email@example.com; Karen Davies, +1 604-314-2662