Engineering & Mining Journal

OCT 2018

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Page 23 of 91

REGIONAL NEWS - EXPLORATION ROUNDUP 22 E&MJ • OCTOBER 2018 Alamos Adding Reserves, Resources at Island Gold Mine Alamos Gold is conducting an $18 million exploration drilling program at its under- ground Island Gold mine 83 kilometers (km) northeast of Wawa, Ontario, that is successfully adding reserves and resourc- es to the mine. A total of 65,500 meters (m) of drilling was completed across 432 holes during the first half of 2018, and a further 84,000 m of surface and under- ground exploration and delineation drilling have been budgeted for the second half. Through the first half, proven and probable reserves at the mine increased by 72,000 ounces (oz) net of mining depletion to 959,000 oz, and mineral reserve grades increased 5% to 10.69 grams per metric ton (mt) gold. The Island Gold mine is scheduled to produce between 100,000 ounces (oz) and 110,000 oz of gold in 2018. As a result of the first-half drilling, the Island mine's measured and indicated mineral resources, exclusive of mineral reserves, nearly doubled to 221,000 oz, while grades increased 40% to 8.18 g/ mt gold. In the same time frame, inferred mineral resources increased 30% to 1.18 million oz, while grades increased 5% to 9.99 g/mt. The focus of the 2018 exploration is on expanding the down-plunge and later- al extensions of the Island gold deposit, with the objective of adding near-mine mineral resources. Drilling is being con- ducted across three main areas along the 2-km-long Island Gold Main Zone, including the Main, Eastern and Western Extensions. The 2018 drilling has been successful in extending high-grade gold mineralization across all three areas, with the bulk of the mineral resource increase coming in the Main Extension, where the majority of the surface exploration drill holes have been concentrated. The explo- ration program has also been successful in adding to mineral reserves within the Eastern Extension and the Main C Zone. A total of 390,000 oz of inferred min- eral resources were added within the Main Extension. The bulk of the increase was in an area of focus down-plunge from ex- isting mineral reserves. Exploration drill- ing in 2017 and through the first half of 2018 has successfully defined a new in- ferred mineral resource in this area total- ing 314,000 oz grading 11.20 g/mt gold. A significant portion of the surface exploration drilling planned for the sec- ond half of 2018 will be at wider drill spacing than required for inclusion in in- ferred resources and focused on regional targets. As such, Alamos is not expecting the same pace of mineral resource growth during the second half of 2018 as was experienced during the first half. ( Exploration Briefs TerraX Minerals has announced encour- aging assays from the summer field pro- gram on its Yellowknife City gold project in Canada's Northwest Territories. The project lies on the prolific Yellowknife greenstone belt, covering 70 km of strike length along the main mineralized break in the Yellowknife gold district, including the southern and northern extensions of the shear system that hosted the high- grade Con and Giant gold mines. The project area contains multiple shears that are the recognized hosts for gold deposits in the Yellowknife district, with innumerable gold showings and re- cent high-grade drill results that indicate the project's potential as a world-class gold district. The Yellowknife City gold project en- compasses 772 km 2 of contiguous land im- mediately north, south, and east of the city of Yellowknife. Being within 10 km of the city, the project is close to vital infrastruc- ture, including all-season roads, air trans- portation, service providers, hydro-electric power, and skilled tradespeople. TerraX President and CEO David Suda stated, "The results of our summer field work continue to feed our pipeline of drill targets. It is highly encouraging to see surface results that extend the potential strike to the Giant mine structure." ( Toro Gold has reported results from an ongoing 15,000-m, 60-hole core drilling program at its 90% owned Mako open-pit gold mine in southeast Senegal. The main objective of the program is to investigate the potential to extend the mine's open- pit life through exploration of the main mineralized lode beneath the current final pit design. In addition, some deeper drill holes have been sited to investigate the potential for underground mining. Intercepts through mid-September in- cluded 19.5 m grading 3.4 g/mt gold from 193 m in one hole and 19.5 m grad- ing 3 g/mt gold from 224.6 m in another. Drilling at depth beneath the pit has continued to confirm the geological mod- el, and mineralization is being intersect- ed where predicted by the block model. Final assay results were scheduled to be available in mid-October, when the new exploration data as well as grade-control drilling data from mining activity will be provided to Cube Consulting of Perth, Australia, for preparation of an updated mineral resource estimate. ( Tando Resources has started a drilling program at its SPD vanadium project on the Eastern Limb of the Bushveld Com- plex in South Africa. Two drilling rigs, one reverse circulation and one core, have been mobilized to site, with drilling scheduled to be conducted at both the existing high-grade resource and the sur- rounding high-grade vanadium pipes. Phase One of the drilling will comprise 18 holes for 1,650 m at the SPD depos- it, where there is currently a resource of 513 million mt at a grade of 0.78% V 2 O 5 . Phase One will also include the first holes to be drilled at the shallow, high- grade vanadium pipes that sit within a 3-km radius of the SPD deposit. Tando has reported a host of high-grade vanadi- um assays from samples taken from the surface of these pipes, with assay results consistently above 2% V 2 O 5 . Following completion of the Phase One drilling program, Tando will move into Phase Two, which will be aimed at upgrad- ing a maiden JORC resource to indicated. (

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