VANCOUVER, Nov. 28, 2018 /CNW/ - Leagold Mining
Corporation (TSX:LMC; OTCQX:LMCNF) ("Leagold" or the "Company")
reports updated mineral reserve and mineral resource estimates at
its RDM and Fazenda mines in Brazil and the filing of the associated
updated technical reports. The Company also reports
highlights from the 2018 drill program at Fazenda.
At the RDM mine, Proven and Probable mineral reserves
total 24.7 million tonnes (Mt) grading 1.0 grams per tonne (g/t)
and containing 789 thousand ounces (koz) of gold (see Table 1) and
Measured and Indicated mineral resources total 39.3 Mt grading 1.0
g/t and containing 1,259 koz of gold (see Table 2). The
results at RDM represent a net reduction of 41 koz since the 2017
reserve estimate (effective date of December
31, 2017) which is attributable to depletion. Measured
and Indicated resources increased by 57 koz over the December 31, 2017 mineral resource estimate.
Table 1 – RDM Mineral Reserve Estimates (Effective Date of
May 31, 2018)
|
|
|
|
Classification
|
Tonnes
(kt)
|
Au Grade
(g/t)
|
Contained Gold
(koz)
|
Proven – open
pit
|
2,510
|
0.88
|
71
|
Proven –
stockpiles
|
3,137
|
0.61
|
62
|
Total
Proven
|
5,647
|
0.73
|
133
|
|
|
|
|
Probable– open
pit
|
19,079
|
1.08
|
656
|
Probable –
stockpiles
|
0
|
0
|
0
|
Total
Probable
|
19,079
|
1.08
|
656
|
|
|
|
|
Proven and Probable –
open pit
|
21,589
|
1.05
|
728
|
Proven and Probable –
stockpiles
|
3,137
|
0.61
|
62
|
Total Proven and
Probable
|
24,726
|
0.99
|
789
|
Notes:
|
1. CIM (2014)
definitions were followed for Mineral Reserves.
|
2. Mineral Reserves
were generated using the May 31, 2018 mining surface.
|
3. Mineral Reserves
are reported at an open pit cut-off grade of 0.40 g/t
Au.
|
4. Mineral Reserves
are reported using a long-term gold price of US$1,200/oz and
exchange rate of R$3.70 = US$1.00.
|
5. Mining dilution of
5% and 95% mining recovery.
|
6. Process recovery
of 90%.
|
7. Totals may not add
due to rounding.
|
RDM is a conventional open pit and carbon-in-leach (CIL)
operation, which is scheduled to process 7,000 tonnes per day (tpd)
and recover over 700,000 oz of gold over a mining life of eight
years plus two additional years of stockpile processing, for a
total mine life of 10 years. Significant exploration
potential has been identified laterally along strike, both north
and south of the existing pit, as well as down-dip.
Table 2 – RDM Mineral Resource Estimates (Effective Date of
May 31, 2018)
|
|
|
|
Classification
|
Tonnes
(kt)
|
Au Grade
(g/t)
|
Contained Gold
(koz)
|
Measured – open
pit
|
3,195
|
0.77
|
79
|
Indicated – open
pit
|
27,731
|
0.96
|
853
|
Measured and
Indicated – open pit
|
30,926
|
0.94
|
932
|
Inferred – open
pit
|
7
|
1.42
|
0
|
|
|
|
|
Measured –
underground
|
0
|
0
|
0
|
Indicated –
underground
|
5,239
|
1.58
|
266
|
Measured and
Indicated – underground
|
5,239
|
1.58
|
266
|
Inferred –
underground
|
8,297
|
1.50
|
401
|
|
|
|
|
Indicated –
stockpiles
|
3,137
|
0.61
|
62
|
|
|
|
|
Total Measured and
Indicated
|
39,303
|
1.00
|
1,259
|
Total
Inferred
|
8,305
|
1.50
|
401
|
Notes:
|
1. CIM (2014)
definitions were followed for Mineral Resources.
|
2. Mineral Resources
are inclusive of Mineral Reserves.
|
3. Open pit Mineral
Resources are reported at a cut-off grade of 0.30 g/t
Au.
|
4. Underground
Mineral Resources are reported at a cut-off grade of 1.0 g/t
Au
|
5. No minimum
thickness was used in the resource estimation.
|
6. Mineral Resources
estimated using US$1,500/oz gold price, exchange rate of R$3.70 =
US$1.00 and constrained by a pit shell.
|
7. Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
8. Totals may not add
due to rounding.
|
At the Fazenda mine, Proven and Probable mineral reserves
total 5.4 Mt grading 1.84 g/t Au and containing 319 koz of gold
(see Table 3), representing a net decrease of 58 koz since the 2017
reserve estimate (effective date of December
31, 2017). The reduction in reserves is attributable to
depletion. Measured and Indicated Resources total 7.5 Mt
grading 2.3 g/t and containing 558 koz of gold (see Table 4).
At current mining rates, the Fazenda reserves represent a mine
life of approximately four years. Fazenda has operated for over 30
years and has a solid track record of successfully replacing
production each year with new reserves through drilling and
development. The plant is operated as carbon-in-leach (CIL)
with a capacity of 1.3 million tonnes per year. The majority
of ore is sourced from underground mining with supplemental feed
from open pits.
Exploration potential is laterally along strike and at depth
below the existing Fazenda operations. The area has seen extensive
exploration along the mineral trend and the exploration team has
successfully identified additional underground targets in parallel
structures to the principal zones that were already being
mined. This exploration success is anticipated to continue
and will include some deeper targets on known mineralized
structures.
Table 3 – Fazenda Mineral Reserve Estimates (Effective Date
of May 31, 2018)
|
|
|
|
Classification
|
Tonnes
(kt)
|
Au Grade
(g/t)
|
Contained Gold
(koz)
|
Proven –
underground
|
1,456
|
1.94
|
91
|
Proven – open
pit
|
1,176
|
1.57
|
59
|
Total
Proven
|
2,632
|
1.77
|
150
|
|
|
|
|
Probable –
underground
|
2,726
|
1.91
|
168
|
Probable – open
pit
|
29
|
1.64
|
2
|
Total
Probable
|
2,756
|
1.91
|
169
|
|
|
|
|
Total Proven and
Probable
|
5,387
|
1.84
|
319
|
Notes:
|
1. CIM (2014)
definitions were followed for Mineral Reserves.
|
2. Mineral Reserves
are reported at a cut-off grade of 1.29 g/t Au for underground and
0.64 g/t Au to 0.72 g/t Au for open pit.
|
3. Mineral Reserves
are reported using a long-term gold price of US$1,200/oz and
exchange rate of R$3.70 = US$1.00.
|
4. A minimum mining
width of 3.0 m was used for underground Mineral
Reserves.
|
5. Bulk density
ranges from 2.72 t/m3 to 3.00 t/m3.
|
6. Numbers may not
add due to rounding.
|
Table 4 – Fazenda Mineral Resource Estimates (Effective Date
of May 31, 2018)
|
|
|
|
Classification
|
Tonnes
(kt)
|
Au Grade
(g/t)
|
Contained gold
(koz)
|
Measured –
underground
|
3,700
|
2.35
|
280
|
Measured – open
pit
|
1,170
|
1.57
|
59
|
Total
Measured
|
4,870
|
2.17
|
339
|
|
|
|
|
Indicated –
underground
|
2,370
|
2.66
|
203
|
Indicated – open
pit
|
300
|
1.63
|
16
|
Total
Indicated
|
2,670
|
2.55
|
219
|
|
|
|
|
Measured and
Indicated – underground
|
6,070
|
2.47
|
483
|
Measured and
Indicated – open pit
|
1,470
|
1.59
|
75
|
Total Measured and
Indicated
|
7,540
|
2.30
|
558
|
|
|
|
|
Inferred –
underground
|
5,260
|
2.58
|
436
|
Inferred – open
pit
|
780
|
1.61
|
40
|
Total
Inferred
|
6,040
|
2.45
|
476
|
Notes:
|
1. CIM (2014)
definitions were followed for Mineral Resources.
|
2. Mineral Resources
are reported at a cut-off grade of 0.40 g/t Au for open pit and 1.0
g/t Au for underground.
|
3. Mineral Resources
are inclusive of Mineral Reserves.
|
4. Mineral Resources
are estimated using US$1,500/oz gold price, exchange rate of R$3.70
= US$1.00 and constrained by a pit shell.
|
5. A minimum mining
width of 1.0 m was used for underground Mineral
Resources.
|
6. Bulk density
ranges from 2.72 t/m3 to 3.00 t/m3.
|
7. Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
8. Numbers may not
add due to rounding.
|
At Fazenda, Leagold has also completed a 38-hole
underground drill program totalling 5,964 metres with the objective
of identifying new resources and reserves and upgrading Inferred
Mineral Resources to the Indicated category. The program
focused on two underground drilling targets accessed from the
C-ramp and one target from the E-ramp. Drill holes in the
C-ramp area intersected mineralization on extensions to the
principal structures including the CLX and Canto sequence
mineralization. A preliminary assessment of the drilling
results shows an opportunity to increase reserves and resources,
however, further analysis is required with updated mineral resource
estimates anticipated in 2019. Table 5 below summarizes
mineralized intervals from 22 of the 31 holes from the recent
drilling program in the C-ramp target areas. These results
have not yet been included in the current Mineral Resource
estimate. Drilling of 7 holes in the E-ramp target area was
not successful.
Table 5 – Summary of Fazenda Drilling Results
Location
|
Section
|
Hole
ID
|
From
(m)
|
To
(m)
|
Core
Length (m)
|
True
Width (m)
|
Grade
(g/t
Au)
|
Mineralization
type
|
C12/C14
|
91700
|
FSS-03434
|
88.0
|
100.0
|
12.0
|
4.0
|
4.50
|
CLX2&TUF-CANTO
SEQ
|
FSS-03443
|
90.0
|
91.0
|
1.0
|
0.9
|
1.29
|
AGV-CANTO
SEQ
|
FSS-03444
|
83.0
|
86.0
|
3.0
|
1.0
|
1.71
|
AGV-CANTO
SEQ
|
92025
|
FSS-03453
|
77.0
|
84.0
|
7.0
|
5.0
|
5.75
|
CLX2
|
135.0
|
141.0
|
6.0
|
5.0
|
1.89
|
AGV-CANTO
SEQ
|
FSS-03454
|
88.0
|
92.0
|
4.0
|
2.0
|
1.41
|
CLX2
|
99.0
|
105.0
|
6.0
|
2.0
|
1.28
|
AGV-CANTO
SEQ
|
FSS-03505
|
136.0
|
138.0
|
2.0
|
2.0
|
2.15
|
AGV-CANTO
SEQ
|
92075
|
FSS-03456
|
114.0
|
116.0
|
2.0
|
1.0
|
1.17
|
AGV-CANTO
SEQ
|
135.0
|
137.0
|
2.0
|
2.0
|
1.51
|
TUF_CANTO
SEQ
|
FSS-03457
|
93.0
|
95.0
|
2.0
|
1.0
|
1.02
|
QZ VEIN/CANTO
SEQ
|
92050
|
FSS-03507
|
134.0
|
135.0
|
1.0
|
1.0
|
2.07
|
AGV-CANTO
SEQ
|
146.0
|
148.0
|
2.0
|
2.0
|
3.38
|
AGV-CANTO
SEQ
|
FSS-03461
|
128.0
|
131.0
|
4.0
|
2.0
|
22.87
|
QZ VEIN/CANTO
SEQ
|
FSS-03463
|
140.0
|
143.0
|
3.0
|
2.0
|
1.13
|
AGV-CANTO
SEQ
|
C RAMP
|
92375
|
FS-15184
|
101.85
|
109.0
|
7.15
|
6.0
|
1.85
|
AGV-CANTO
SEQ
|
114.0
|
118.0
|
4.0
|
2.0
|
2.22
|
AGV-CANTO
SEQ
|
FS-15204
|
119.0
|
120.0
|
1.0
|
1.0
|
1.53
|
AGV-CANTO
SEQ
|
119.0
|
120.0
|
1.0
|
1.0
|
2.60
|
AGV-CANTO
SEQ
|
92450
|
FS-15190
|
158.0
|
164.0
|
6.0
|
6.0
|
1.02
|
QZ VEIN/AGV-CANTO
SEQ
|
FS-15229
|
83.0
|
95.0
|
14.0
|
13.0
|
4.60
|
QZ VEIN/AGV-CANTO
SEQ
|
105.0
|
109.0
|
5.0
|
4.0
|
3.14
|
QZ VEIN/AGV-CANTO
SEQ
|
FS-15191
|
76.0
|
80.0
|
4.0
|
1.0
|
4.33
|
AGV-CANTO
SEQ
|
90.0
|
92.0
|
2.0
|
2.0
|
5.24
|
AGV-CANTO
SEQ
|
96.0
|
115.0
|
19.0
|
19.0
|
2.80
|
QZ VEIN/CANTO
SEQ
|
120.0
|
122.0
|
2.0
|
2.0
|
2.13
|
QZ VEIN/AGV-CANTO
SEQ
|
143.0
|
145.0
|
2.0
|
2.0
|
1.78
|
GRX-CANTO
SEQ
|
FS-15230
|
65.0
|
66.0
|
1.0
|
1.0
|
13.0
|
QZ VEIN/AGV-CANTO
SEQ
|
92425
|
FS-15187
|
88.0
|
92.0
|
4.0
|
1.8
|
2.70
|
AGV-CANTO
SEQ
|
116.0
|
119.0
|
3.0
|
2.0
|
1.42
|
QZ VEIN/CANTO
SEQ
|
FS-15188
|
114.0
|
117.0
|
3.0
|
2.0
|
2.67
|
AGV-CANTO
SEQ
|
FS-15189
|
68.0
|
70.0
|
2.0
|
1.0
|
2.94
|
QZ VEIN/CANTO
SEQ
|
90.0
|
92.0
|
2.0
|
1.0
|
1.21
|
QZ VEIN/CANTO
SEQ
|
92400
|
FS-15228
|
108.0
|
118.0
|
10.0
|
10.0
|
4.00
|
QZ VEIN/CANTO
SEQ
|
FS-15231
|
96.0
|
101.0
|
5.0
|
5.0
|
2.17
|
QZ VEIN/CANTO
SEQ
|
107.0
|
116.0
|
9.0
|
9.0
|
1.23
|
QZ VEIN/CANTO
SEQ
|
124.00
|
136.0
|
12.0
|
12.0
|
3.23
|
QZ VEIN/CANTO
SEQ
|
Notes:
|
1.
|
Results reported are
above cut-off grade of 1.0 g/t Au for underground.
|
2.
|
Seven holes returned
no intercept or low grade intercepts; FSS-03435 and FSS-03438
intercepts were marginal.
|
Technical Disclosure Regarding Fazenda Drilling
Results
The Fazenda mine employs industry standard drilling and sampling
procedures. The drill holes were oriented perpendicular to the
mineralized structures with the majority of the holes oriented to
the north. The holes were drilled with a range of
inclinations to provide sufficient spacing to support mineral
resource estimation. Diamond drill holes are used to provide
BQ sized core samples. The core is logged and the entire core
is sent for assay.
Samples from this 2018 program were sent to the mine site
laboratory for sample preparation and analyses by 50-gram fire
assay. The laboratory has accreditation to ISO Standard
17025:2005. A full quality control and quality assurance
(QAQC) program and protocols are in place and are aligned with best
practices including regular insertion of certified reference
standards, blanks, and duplicates. External check assays are
sent to third party independent laboratories on a regular basis.
QAQC data is reviewed on an ongoing basis and reported monthly.
Doug Reddy, P.Geo, Leagold's
Senior Vice President – Technical Services, is a Qualified Person
and has verified the data disclosed, including the sampling and
analytical data, and concludes that there are no known drilling,
sampling recovery or other factors that could materially affect the
accuracy or reliability of the drilling data.
Technical Reports
For further information regarding the updated mineral resource
and mineral reserve estimates at RDM, please see the Company's
technical report prepared in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects (NI
43-101) entitled "Technical Report on the Riacho dos Machados Gold
Mine, Minas Gerais, Brazil" dated
November 20, 2018 with an effective
date of May 31, 2018 (the "RDM
Technical Report"). The RDM Technical Report was prepared by
Hugo Miranda, MBA, ChMc (RM),
Mark B. Mathisen, C.P.G. and
Kathleen Ann Altman, Ph.D., P.E.,
each of whom is a "qualified person" as that term is defined in NI
43-101 and is independent of the Company.
For further information regarding the updated mineral resource
and mineral reserve estimates at Fazenda, please see the Company's
technical report prepared in accordance with NI 43-101 entitled
"Technical Report on the Fazenda Brasileiro Mine, Bahia State, Brazil" dated November
26, 2018 with an effective date as of May 31, 2018 (the "Fazenda Technical
Report"). The Fazenda Technical Report was prepared by
Mark Mathisen, C.P.G., Hugo M. Miranda, MBA, ChMC (RM), Robert L. Michaud, P.Eng. and Andrew Paul Hampton, P.Eng., each of whom is a
"qualified person" as that term is defined in NI 43-101 and is
independent of the Company.
The RDM Technical Report and the Fazenda Technical Report are
being filed today under the Company's profile on SEDAR at
www.sedar.com and will be available on the Company's website later
today at www.leagold.com.
Qualified Persons
Hugo Miranda, MBA, ChMc (RM),
Mark B. Mathisen, C.P.G. and
Kathleen Ann Altman, Ph.D., P.E.,
are the qualified persons that prepared or supervised the
preparation of the information that forms the basis for the written
disclosure regarding RDM.
Mark Mathisen, C.P.G.,
Hugo M. Miranda, MBA, ChMC (RM),
Robert L. Michaud, P.Eng. and
Andrew Paul Hampton, P.Eng. are the
qualified persons that prepared or supervised the preparation of
the information that forms the basis for the written disclosure
regarding Fazenda.
Doug Reddy, P.Geo, Leagold's
Senior Vice President – Technical Services, is a Qualified Person
under NI 43-101, and has reviewed and approved the written
disclosure relating to the drill results at Fazenda.
About Leagold Mining Corporation
Leagold is building a mid-tier gold producer with a focus on
opportunities in Latin America.
The Company is based in Vancouver,
Canada and owns four operating gold mines in Mexico and Brazil, along with a near-term gold mine
restart project in Brazil and
additional expansion and growth opportunities. Leagold is listed on
the TSX under the trading symbol "LMC" and trades on the OTCQX
market as "LMCNF".
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward looking information" or
"forward looking statements" within the meaning of applicable
securities legislation. All statements other than statements of
historical fact, included herein, including statements relating to
anticipated mine life, exploration potential and anticipated
exploration success at each of the RDM and Fazenda mines are
forward looking statements. Generally, these forward looking
information and forward looking statements can be identified by the
use of forward looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", "will continue" or "believes", or variations of such
words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Statements concerning mineral resource estimates may
also be deemed to constitute forward looking information to the
extent that they involve estimates of the mineralization that will
be encountered. The material factors or assumptions used to develop
forward looking information or statements are disclosed throughout
this document.
Forward looking information and forward looking statements,
while based on management's best estimates and assumptions, are
subject to a variety of known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Leagold to be materially different
from those expressed or implied by such forward-looking information
or forward looking statements, including but not limited to: risks
related to international operations; risks related to general
economic conditions and credit availability, unanticipated
reclamation expenses; changes in project parameters as plans
continue to be refined; fluctuations in prices of metals including
gold; fluctuations in foreign currency exchange rates, increases in
market prices of mining consumables, possible variations in mineral
reserves, grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes,
title disputes, claims and limitations on insurance coverage and
other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities, changes in national and
local government regulation of mining operations, tax rules and
regulations, and political and economic developments in countries
in which the Company operates, actual resolutions of legal and tax
matters, as well as those factors discussed in the section entitled
"Description of the Business – Risk Factors" in Leagold's most
recent AIF available on SEDAR at www.sedar.com.
Although Leagold has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such information or statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information or statements. The Company has and
continues to disclose in its Management's Discussion and Analysis
and other publicly filed documents, changes to material factors or
assumptions underlying the forward-looking information and
forward-looking statements and to the validity of the information,
in the period the changes occur. The forward-looking statements and
forward-looking information are made as of the date hereof and
Leagold disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the
forward-looking statements or forward-looking information contained
herein to reflect future results. Accordingly, readers should not
place undue reliance on forward-looking statements and
information.
SOURCE Leagold Mining Corporation