GOLD X MINING CORP. February 23, 2017 - Denver, Colorado and Vancouver, British Columbia - Sandspring Resources Ltd. (SSP: TSX-V) ("Sandspring" or the "Company") is pleased to report the maiden mineral resource estimate ("Resource Estimate") for its discovery at Sona Hill, deposit located 5 km southeast of the Toroparu Gold Project ("Toroparu")1 in Guyana, South America.
Highlights of the Resource Estimate include:Pit-constrained maiden gold only resource having a total Indicated ("Ind.") resource of 195,000 Au, and Inferred ("Inf.") resource of 241,000 ounces of at a cut-off grade of 0.31 g/t Au (Table 1)
Significant quantities of higher grade gold-only mineralization include (Table 1):
178,000 oz Ind. resource at 1.30 g/t Au and 218,000 Inf. resource at 1.29 g/t Au at elevated cutoff grade of 0.5 g/t Au, and
129,000 oz Ind. resource at 1.88 g/t Au and 156,000 Inf. resource at 1.94 g/t Au at elevated cutoff grade of 1.0 g/t Au, and
Shallow lode-gold vein mineralized system in proximity to main Toroparu pit with 80% of total mineralization located within 120m of surface within single optimized Whittle pit; 25% of the total Indicated resource contained in weathered Saprolite rock from surface (see Table 2); and
Mineralization at Sona Hill remains open at depth and along strike.
The estimate was completed at a variety of cut off grades by SRK Consulting (U.S.) Inc. ("SRK") and the details are presented in the following table:
Table 1: Mineral Resource Sensitivity Table - All Rock Types 2All Rock Type Cutoff Sensitivity (Ind) All Rock Type Cutoff Sensitivity (Inf)
Gold Price ($/oz) | Cutoff (g/t Au) | Tonnes (000's) | Au (g/t) | Au oz. (000's) |
$1,750 | 0.25 | 5,996 | 1.03 | 199 |
$1,460 | 0.3 | 5,643 | 1.08 | 196 |
$1,400 | 0.31 | 5,563 | 1.09 | 195 |
$1,250 | 0.35 | 5,315 | 1.13 | 192 |
$1,095 | 0.4 | 4,968 | 1.18 | 188 |
$875 | 0.5 | 4,245 | 1.30 | 178 |
$730 | 0.6 | 3,692 | 1.42 | 168 |
$625 | 0.7 | 3,182 | 1.54 | 157 |
$550 | 0.8 | 2,748 | 1.66 | 147 |
$490 | 0.9 | 2,401 | 1.78 | 137 |
$440 | 1.0 | 2,138 | 1.88 | 129 |
Gold Price ($/oz) | Cutoff (g/t Au) | Tonnes (000's) | Au (g/t) | Au oz. (000's) |
$1,750 | 0.25 | 7,660 | 1.00 | 247 |
$1,460 | 0.3 | 7,151 | 1.05 | 242 |
$1,400 | 0.31 | 7,041 | 1.06 | 241 |
$1,250 | 0.35 | 6,606 | 1.11 | 236 |
$1,095 | 0.4 | 6,127 | 1.17 | 231 |
$875 | 0.5 | 5,232 | 1.29 | 218 |
$730 | 0.6 | 4,418 | 1.43 | 203 |
$625 | 0.7 | 3,754 | 1.57 | 189 |
$550 | 0.8 | 3,265 | 1.69 | 178 |
$490 | 0.9 | 2,829 | 1.82 | 166 |
$440 | 1.0 | 2,497 | 1.94 | 156 |
The resource estimate is based on analytical and geological data from 12,585 metres ("m") of diamond drill core recovered from the 109 deposit specific boreholes drilled to date and reported in news releases on February 3, 2016, November 3, 2016, and February 13, 2017.
2013 SRK Consulting (U.S.) Inc., Toroparu pre‐feasibility study estimates 44.5 mt of Measured Resource at a grade of 0.98 g.t Au containing 1.398 moz of Gold, Indicated Resource of 195.7 mt at 0.87 g/t containing 5.497 moz Gold for a total M&I resource of 6.894 moz of Gold, inclusive of 4.107 moz of Proven and Probable Reserves as follows: Proven Reserves are 29.7 mt at 1.10 g/t containing 1.049moz Au, and Probable Reserves of 97.3 mt at 0.98 g/t containing 3.058 moz Au.
Mineral Resources are reported in accordance with Canadian Securities Administrators (CSA) National Instrument 43‐101 (NI 43‐101) and have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
Fresh Rock Type Cutoff Sensitivity (Ind) Fresh Rock Type Cutoff Sensitivity (Inf)
Gold Price ($/oz) | Cutoff (g/t Au) | Tonnes (000's) | Au (g/t) | Au oz. (000's) |
$1,750 | 0.25 | 4,405 | 1.05 | 148 |
$1,460 | 0.3 | 4,118 | 1.10 | 146 |
$1,400 | 0.31 | 4,047 | 1.11 | 145 |
$1,095 | 0.4 | 3,602 | 1.21 | 140 |
$875 | 0.5 | 3,076 | 1.34 | 132 |
$550 | 0.8 | 1,976 | 1.72 | 109 |
$440 | 1 | 1,555 | 1.95 | 97 |
Gold Price ($/oz) | Cutoff (g/t Au) | Tonnes (000's) | Au (g/t) | Au oz. (000's) |
$1,750 | 0.25 | 5,374 | 1.01 | 174 |
$1,460 | 0.3 | 5,069 | 1.05 | 171 |
$1,400 | 0.31 | 4,994 | 1.06 | 171 |
$1,095 | 0.4 | 4,371 | 1.16 | 164 |
$875 | 0.5 | 3,712 | 1.29 | 154 |
$550 | 0.8 | 2,299 | 1.70 | 125 |
$440 | 1 | 1,736 | 1.96 | 109 |
Saprolite Cutoff Sensitivity (Ind) Saprolite Cutoff Sensitivity (Inf)
Gold Price ($/oz) | Cutoff (g/t Au) | Tonnes (000's) | Au (g/t) | Au oz. (000's) |
$1,750 | 0.25 | 1,591 | 1.00 | 51 |
$1,460 | 0.3 | 1,525 | 1.03 | 50 |
$1,400 | 0.31 | 1,515 | 1.03 | 50 |
$1,250 | 0.35 | 1,461 | 1.06 | 50 |
$1,095 | 0.4 | 1,366 | 1.10 | 49 |
$875 | 0.5 | 1,169 | 1.21 | 46 |
$550 | 0.8 | 772 | 1.51 | 38 |
$440 | 1.0 | 583 | 1.71 | 32 |
Gold Price ($/oz) | Cutoff (g/t Au) | Tonnes (000's) | Au (g/t) | Au oz. (000's) |
$1,750 | 0.25 | 2,287 | 0.99 | 73 |
$1,460 | 0.3 | 2,082 | 1.06 | 71 |
$1,400 | 0.31 | 2,047 | 1.07 | 70 |
$1,250 | 0.35 | 1,899 | 1.13 | 69 |
$1,095 | 0.4 | 1,756 | 1.19 | 67 |
$875 | 0.5 | 1,520 | 1.30 | 64 |
$550 | 0.8 | 965 | 1.69 | 52 |
$440 | 1.0 | 762 | 1.90 | 46 |
Identification of infill locations to meet the goal of increasing the Indicated classification of the resource to +80%;
Identification of step-out locations to determine continuity potential of mineralization at depth to the west and to a lesser extent north and south of existing resource shell; and
Determination of metallurgical, recovery, and comminution properties of representative saprolite and fresh rock samples.
Continuation of feasibility work for Toroparu including evaluation of Sona Hill resource impacts on mine plan presented in the Pre-Feasibility Study for Toroparu published on May 24, 2013.
Rich Munson, CEO states: "We are very pleased to announce the maiden resource estimate for the Sona Hill Satellite Deposit. Sona Hill adds significant shallow gold-only resources in proximity to the existing reserves reported in the pre-feasibility study for Toroparu. The results from Sona Hill and the new discovery at Wynamu Hill that were reported on February 13, 2017 clearly warrant the continuation of systematic exploration of our property position surrounding Toroparu, including the eight-additional high-priority gold features within the 20 km by 7 km regional hydrothermal alteration halo surrounding Toroparu. Our geologic team, that continues to be led by Werner Claessens and Pascal van Osta, consultants to the Company, is working with SRK on additional drill programs to increase the confidence classification of Sona Hill resources, as well as looking at programs to further delineate mineralization at Wynamu Hill and explore for additional satellites within our concession boundaries.
Our technical team, which continues to be led by Greg Barnes, our Executive Vice President, with assistance from Yani Roditis as a consultant to the Company, will simultaneously be advancing the final feasibility study for Toroparu over the course of 2017. Because Sona Hill adds significant shallow gold-only resources in both Saprolite and Fresh Rock (the "New Resource") in proximity to the existing reserves at Toroparu, on-going feasibility work will examine the potential impacts on the economic parameters of the project by including this higher grade New Resource in the overall mine plan and the initial Saprolite mining phase, as detailed in the 2013 Toroparu Pre-Feasibility Study."
Location Map Sona Hill GeologyThe Sona Hill deposit, hosted by intrusives of intermediate composition, is a typical lode-gold vein system, which developed in the hanging wall above a low angle, west dipping shear zone. This fault feature forms the highly deformed and intensely altered contact zone between the intrusives and an underlying acid volcanic sequence. Gold-Pyrite mineralization occurs mainly within and at the border of tourmaline-feldspar bearing quartz veins, which are surrounded by intense bleaching and alteration halos.
Areas of higher grade mineralization occur frequently throughout the resource area, with more than 80% of gold mineralization contained in rock from 0 to 160m below surface. Mineralization at Sona Hill remains open at depth and along strike. The results of ground geophysical and infill geochemical surveys conducted in 2016, which focused on a 1000 x 1500 m area due west of Sona Hill, are being analyzed for evidence of possible extensions of mineralization in this direction (see February 13, 2017 Press Release).
The Sona Hill drill geologic model was developed in Leapfrog 3D modeling software utilizing geologic information from the 109 drill holes. The 109 deposit specific boreholes were drilled over a 1,000m x 300m area on the west flank of Sona Hill from 2014-2016. The resource estimate is based on data from 12,585m of diamond drill core recovered from the 109 deposit specific boreholes drilled to date.
Sona Hill Resource EstimateThe Sona Hill mineral resource estimate was independently estimated by SRK Consulting (U.S.) Inc. ("SRK") as a potentially open-pit satellite deposit to Toroparu. The geologic and assay data were used to model a mineralized shell in Leapfrog Geo® software. The mineralized shape is based on continuity established with 6m composites, and incorporated anisotropy from a generalized average trend of mineralized quartz veins as well as local down-hole point- data structural orientations of veins. The mineralized veins (down-hole point data) have an average strike of 2280 azimuth dipping on average 410 (NW).
The drill core assay length was 1.5m and the gold assay were composited to 2.5m intervals within the mineralized wireframes and capped at 18g/t Au. A block model was constructed in Datamine Studio3® mining software package ("Datamine"), using a 10m x 10m x 5m standard block size and sub-blocking with a variable "z" value at the fresh rock- saprolite surface.
Variogram analysis on 2.5m composites was undertaken, with reasonable continuity results, but no preferred orientation of mineralization observed; given the distribution of drilling and the geometry of the mineralization this was not un-
expected. Therefore, the point data of structural vein orientations were used with the dynamic anisotropy option in Datamine, and search orientations interpolated into each block. The average interpolated orientation is azimuth 248o with a dip of 41o NW. Gold grades were interpolated using ordinary kriging constrained within the mineralized shape. Average Bulk Density values based on measurements of Sona Hill core are 1.65 for oxidized saprolite and 2.84 for fresh rock. Validation of model accuracy was based on comparing results from kriging with inverse distance and nearest neighbor grade estimates, which shows very similar results, and visual review on sections.
Confidence classification is based on a minimum of 5 composites, with a maximum of two composites from any one hole and search distances of 25m x 50m x 50m for Indicated. Inferred classification used a minimum of one composite with a search distance of 50m x 100m x 100m.
Plan View - Block Model GradesThe effective date of the resource estimate is February 21, 2017. All resources in the mineral resource statement are in- pit resources reported within a Whittle optimized pit shell above an economic cut-off grade of 0.31 g/t Au. The optimized pit shell was determined using Indicated and Inferred resources, a gold price of US$1,400/oz. Au, an average
Sandspring Resources Ltd. published this content on 23 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 February 2017 18:12:13 UTC.
Original documenthttp://www.sandspringresources.com/i/pdf/nr/ssp-20170223-nr.pdf
Public permalinkhttp://www.publicnow.com/view/D336F6035C13C9761D7E3896C1AB643CAA525045
