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CWM Crown Mining Corp

0.21
0.00 (0.00%)
17 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Crown Mining Corp TSXV:CWM TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.21 0.205 0.21 0 01:00:00

Crown Gold Receives Conceptual Underground Mine Design for Monte Cristo: Production Possible Within Six Months of Start-Up

05/05/2011 2:25pm

Marketwired Canada


Crown Gold Corporation ("Crown" or the "Company") (TSX VENTURE:CWM) has received
a Conceptual Decline & Development Report from Golder Associates ("Golder") for
underground mining of the McLean "Main Lode" resource on Crown's Monte Cristo
property in Esmeralda County, Nevada. The study provides a preliminary
underground design to mine the existing National Instrument 43-101 compliant
inferred resource of 226,000 ounces of gold grading 7.2 g/t gold at a 2.0 g/t
cut-off contained in the Main Lode, the steeply dipping part of the McLean
deposit. This is designated by Golder as "milling ore" to be treated at a custom
offsite facility. Golder did not review the NI 43-101 report on the potential
resources at Monte Cristo. The model was used as supplied.


The NI 43-101 compliant gold resources for the whole McLean Lode, that includes
both the Main Lode and "Upper Zone" resources, are:




---------------------------------------------------
cut off g/t          gm      tonnes   g/t    ounces
---------------------------------------------------
2.0           7,377,274   1,025,685   7.2   237,548
---------------------------------------------------
1.0           8,673,975   1,923,349   4.5   279,302
---------------------------------------------------
0.5           9,475,041   3,158,347   3.0   306,787
---------------------------------------------------



The Golder design work used Vulcan mine planning and modelling software after
importing a SURPAC generated block model supplied by Crown. The optimum design
selected locates the portal on the existing McLean open-pit wall at between 70
to 100 feet below surface. A spiral ramp in the footwall east of the deposit
would provide access to the bottom of the current Main Lode resource,
approximately 800 ft deep. Lateral development levels would be placed at 50 foot
vertical intervals extending in a NE-SW direction up to 600 ft along strike.
From the development levels, crosscuts into the resource would allow mining by
cut and fill stoping.


Cost of the decline ramp, footwall and connection drifts, equipment passing bays
and 3 ventilation raises - a total of 27,083 feet of development is estimated to
be $25.6 million, calculated at $57 per ton with a total 448,700 tons excavated.
The decline design cross section size is 13.1 ft (4 m) in width and 16.4 ft (5
m) in height with a minimum default curve radius of 50 ft and maximum grades of
12% for all straight drift and decline segments and 10% for all curves allowing
for 45 ton haul truck and 19 ton LHD equipment.


The proposed design allows for mine production to start after construction of
only approximately one third of the total ramp constructed with development
drifts providing access to the upper part of the resource. This time period is
estimated conservatively at six months from commencement of construction.


Although not part of the conceptual study, Golder has indicated that an
estimated additional 41,000 ounces of gold, contained in material grading
between 1 g/t and 2 g/t gold, below mill grade cut-off, would be excavated in
the planned development. Golder suggests that this low grade material may be
economically treated in an on-site heap leach operation to recover additional
ounces of gold. The study recommends that geotechnical work, a hydro-geological
study, ventilation analysis and review of heap leach test work be completed to
advance design from conceptual to preliminary levels. Approximately 300,000 tons
of oxide ore was mined from the pit in the 1980's and leached on a nearby heap. 


Additional gold above a 1 g/t gold cut-off occurs in mineralized material in the
shallow, flat lying McLean Upper Lode portion of the deposit but drilling is too
wide-spaced for 43-101 compliant modeling. Management believes that up to an
additional 250,000 ounces of gold may also be available from this material for
on-site heap leaching.


Crown Gold signed a memorandum of understanding with American Mining Corporation
("AMC") on November 17, 2010 to secure milling facilities for Monte Cristo ore.
AMC's Silver Peak milling complex is currently under development approximately
40 miles south of the McLean resource. 


Crown also recently signed a letter of intent with an arm's length private
Canadian company, Argentium Resources Inc. ("Argentium"), to sell Crown's Monte
Cristo, Sugarloaf and Blue Sphinx properties in Nevada for $16,000,000 in cash
and securities (see News Release of March 28, 2011). Closing is expected to be
on or about June 30, 2011.


About Crown 

Crown Gold, formed last year by the amalgamation of Crown Minerals and Gold
Summit, is exploring for high grade gold and silver deposits in Nevada and
Ontario. 


In Ontario, Crown has its McKenzie Island property at Red Lake where a spring
work program is being planned to follow up on its successful drill program this
past February that yielded promising results, including 2.2 oz/gold over 3 feet
(see Crown's news release dated March 3, 2011). Crown's other northwest Ontario
properties are its Sakoose property near Kenora and its Surprise Lake property
in the Uchi Belt, east of Red Lake. In northeastern Ontario, Crown holds three
other strategic land positions: one adjacent to Trelawney's Chester discovery
near Gogama, another at the old Stairs Mine near Matachewan and a third in the
heart of the Timmins camp.


In Nevada, in addition to its Monte Cristo, Sugarloaf and Blue Sphinx
properties, Crown has two other gold exploration properties, Gold Springs and
Black Warrior, each of which contains well-defined, essentially undrilled,
targets.


Larry Kornze, Senior Consultant to Crown Gold and a registered Professional
Engineer/Geologist, is designated as the Qualified Person under National
Instrument 43-101 and has reviewed and approved the contents of this news
release.


For more information please see the Crown website at www.crowngoldcorp.com.

This press release contains forward-looking statements within the meaning of
applicable Canadian and U.S. securities regulation, including statements
regarding the future activities of the Company. Forward-looking statements
reflect the current beliefs and expectations of management and are identified by
the use of words including "will", "anticipates", "expected to", "plans",
"planned" and other similar words. Actual results may differ significantly. The
achievement of the results expressed in forward-looking statements is subject to
a number of risks, including those described in the Company's management
discussion and analysis as filed with the Canadian securities regulatory
authorities which are available at www.sedar.com. Investors are cautioned not to
place undue reliance upon forward-looking statements.


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