Aldridge Announces an Updated 43-101 Resource Estimate
- Yenipazar Contained Gold Equivalent Now Stands at 2.62M oz Grading 3.05 g/t -
- Significant Improvement in Gold Recoveries -
- Conference call scheduled for today at 11:00 am ET -
www.aldridgeminerals.ca
TSXV: AGM
TORONTO, June 13, 2012 /CNW/ - Aldridge Minerals Inc. (TSX Venture: AGM) ("Aldridge") is pleased to announce an in pit updated National Instrument 43-101 mineral resource estimate for its Yenipazar polymetallic deposit in Turkey. The estimate is based on all drilling completed to the end of 2011 (54,774 meters), and includes 7,202 metres of diamond drilling.
Highlights of the June 2012 Resource Estimate
- Indicated resource - 2.62M gold equivalent ounces at 3.05 g/t
- Gold recoveries now stand at 92%
- Indicated resources increased 9.9% to 26,684,000 tonnes from 24,284,000 tonnes
- Inferred resources increased 432% to 1,159,000 tonnes from 218,000 tonnes
"Since the December 2010 mineral resource estimate for the Yenipazar deposit, we have seen an increase in total resources and recoveries - particularly gold recoveries - as a result of our ongoing efforts to optimize metallurgy. The increased resources combined with improved recoveries and metal prices have significantly enhanced the potential of Yenipazar which now contains 2.62M gold equivalent ounces grading 3.05 g/t", said Mario Caron, Aldridge President and CEO. "With the progress that has been made, it is clear that Yenipazar is a world-class VMS deposit with excellent potential for becoming a near-term producer."
Value Creation Through Process Improvements
Aldridge published a Preliminary Economic Assessment ("PEA") in December 2010 that generated robust economic returns. The metallurgy identified at the time was preliminary in nature and necessitated significantly more test work for better optimization.
The PEA contemplated the production of a copper concentrate, a lead concentrate, and a zinc concentrate, with only about one third of the gold reporting to the copper concentrate and the majority of the silver reporting to the lead concentrate. In December 2011, Aldridge announced additional metallurgical testing completed by G&T Metallurgical Services, which indicated that production of a gold gravity concentrate prior to base metal flotation may more than double gold recoveries reported in the PEA.
SGS UK, which is currently conducting all metallurgical test work for Aldridge, has expanded upon the work by G&T. The process contemplates a separate gold circuit followed by sequential flotation of copper, lead, and zinc. Aldridge expects the flowsheet to be finalized for the purposes of the Feasibility Study in the coming weeks. The matrix of metal recoveries that formed the basis for the resource update, which incorporates all testing completed to date, is set out in the table below.
| Metal | Total Recoveries | Gold Gravity Concentrate | Copper Concentrate | Lead Concentrate | Zinc Concentrate |
| Au | 92.0% | 65.0% | 20.0% | 5.0% | 2.0% |
| Ag | 90.0% | 10.0% | 10.0% | 65.0% | 5.0% |
| Cu | 75.0% | 75.0% | |||
| Pb | 75.0% | 75.0% | |||
| Zn | 77.0% | 77.0% |
Metal Prices
In order to facilitate a comparison between the resource estimates, it was determined that three year trailing average metal prices be used for the June 2012 resource estimate update. As shown in the table below, precious metal prices have increased significantly while base metals have increased by up to 19% in the case of copper.
| Three Year Trailing Average Metal Prices | |||
| Metal | Resource Update June 2012 | Resource December 2010 | Increase |
| Au (US$/oz) | 1,340 | 991 | 35% |
| Ag (US$/oz) | 25.00 | 15.86 | 58% |
| Cu (US$/lb) | 3.50 | 2.94 | 19% |
| Pb (US$/lb) | 1.00 | 0.92 | 9% |
| Zn (US$/lb) | 0.95 | 0.86 | 10% |
Resource Summary
Compared to the December 2010 mineral resource estimate, the metal grades of the resource have remained fairly stable while the total size of the resource has increased. The total Indicated resource has grown by almost 10% while recent geotechnical drilling that encountered mineralization has added significantly to the Inferred resource base.
The updated mineral resource is summarized in the tables below. A longitudinal section of the Yenipazar deposit is posted on the Aldridge website at www.aldridgeminerals.ca.
In Pit Total Mineral Resources @ NSR/t cut-off of US$15/t for Sulphides and US$10/t for Oxides(1)(2)(3)(4)(5)
| Contained Metal | |||||||||||||
| Category | Tonnes | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) | Au Eq (g/t) | Au (M oz) | Ag (M oz) | Cu (M lbs) | Pb (M lbs) | Zn (M lbs) | AuEq (M oz) |
| Indicated | 26,684,000 | 1.04 | 31.3 | 0.30 | 1.04 | 1.40 | 3.05 | 0.89 | 26.85 | 176.5 | 611.8 | 823.6 | 2.62 |
| Inferred | 1,159,000 | 0.48 | 27.7 | 0.22 | 1.00 | 1.95 | 2.51 | 0.02 | 1.03 | 5.6 | 25.6 | 49.8 | 0.09 |
The total resources can be further broken down into sulphides and oxides.
In Pit Sulphides @ NSR cut-off of US$15/t(1)(2)(3)(4)(5)
| Contained Metal | |||||||||||||
| Category | Tonnes | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) | Au Eq (g/t) | Au (M oz) | Ag (M oz) | Cu (M lbs) | Pb (M lbs) | Zn (M lbs) | AuEq (M oz) |
| Indicated | 23,682,000 | 1.03 | 31.3 | 0.31 | 1.00 | 1.52 | 3.08 | 0.78 | 23.83 | 161.8 | 522.1 | 793.6 | 2.35 |
| Inferred | 1,156,000 | 0.49 | 27.8 | 0.22 | 1.01 | 1.96 | 2.52 | 0.02 | 1.03 | 5.6 | 25.7 | 50.0 | 0.09 |
In Pit Oxides @ NSR cut-off of US$10/t(1)(2)(3)(4(5)
| Contained Metal | |||||||||||||
| Category | Tonnes | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) | Au Eq (g/t) | Au (M oz) | Ag (M oz) | Cu (M lbs) | Pb (M lbs) | Zn (M lbs) | AuEq (M oz) |
| Indicated | 3,002,000 | 1.10 | 31.1 | 0.23 | 1.35 | 0.49 | 2.76 | 0.11 | 3.00 | 15.2 | 89.3 | 32.4 | 0.27 |
| Inferred | 3,000 | 0.28 | 10.3 | 0.07 | 0.59 | 1.17 | 1.28 | 0.00 | 0.00 | 0.00 | 0.04 | 0.08 | 0.00 |
| (1) | Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. |
| (2) | The quantity and grade of reported Inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. |
| (3) | The mineral resources in this estimate were calculated with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions. |
| (4) | Au equivalent ratios were calculated using the following recoveries: Au 92%, Ag 90%, Cu 75%, Pb 75% and Zn 77%. Metal prices in US$ used were Au $1,340/oz, Ag $25/oz, Cu $3.50/lb, Pb $1.00/lb and Zn $0.95/lb. |
| (5) | All resources are reported within an optimized pit shell. The $15/tonne Sulphide NSR cut-off value for resource reporting was derived from a processing cost of US$12.50/tonne and a G&A cost of US$2.50 per tonne. The $10/tonne Oxide NSR cut-off value for resource reporting was derived from a processing cost of US$7.50/tonne and a G&A cost of US$2.50 per tonne. Mining costs were US$1.60 per tonne and optimized pit slopes were 50 degrees. |
Diamond Drill Twinning Program
A diamond drilling program is ongoing at Yenipazar and is anticipated to continue until the end of July 2012 as part of a planned $1.3 million program (10,000 metres). The purpose of the program is to twin up to 99 existing reverse circulation ("RC") drill holes with the objective of increasing in particular the precious metal grades as found in previous diamond-RC duplicate pairs. The RC holes will be subsequently removed from the resource database so that only the more accurate diamond data remain for the duplicated holes. The 99 scheduled holes address about 81% of the RC-drilled gold resource, and about 75% of the Ag-Cu-Pb-Zn resource.
The results of this twinning program will be included in a subsequent resource estimate that will form the basis for the Feasibility Study, which is on track for completion in December 2012. As announced in March 2012, the Feasibility Study will reflect the decision to increase the throughput of the proposed development at Yenipazar from a nominal 5,700 tonnes per day envisioned in the PEA to 7,500 tonnes per day (an increase of 32%) for an annual throughput of 2.5 million tonnes.
Quality Assurance
The technical information in this news release was prepared, reviewed and approved by Eugene Puritch, P. Eng. of P&E Mining Consultants Inc. of Brampton, Canada. Mr. Puritch is a Qualified Person under NI 43-101 standards.
Analyses for gold, silver, copper, zinc, and lead were completed by ALS Chemex of Vancouver, BC. Blanks, certified reference material and field duplicates were inserted on a regular basis in the sample stream in order to provide external QAQC on the lab analysis.
The metallurgical testing data in this news release were reviewed and approved by Mike Hallewell, BSc., Fellow of IMMM, Chartered Engineer, employed with SGS Mineral Services UK Limited of Truro, Cornwall U.K. This data reflects the current indicative recoveries based on testwork conducted to date. Work is on-going to optimize and understand the recoveries across the various zones in the deposit. Mr. Hallewell is a Qualified Person for metallurgical testing with respect to NI 43-101 standards.
Conference Call
Aldridge management will host a conference call on Wednesday June 13 at 11:00 am (Eastern) to review its updated resource estimate. Mr. Mario Caron, President and CEO, will chair the call. All interested parties can join the conference call by dialing 1-888-231-8191. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Tuesday June 20 2012 at midnight. To access the archived conference call, please dial 1-855-859-2056 or 416-849-0833 and enter the reservation code 90684503.
About Aldridge Minerals Inc.
Aldridge is a near development stage mining company focused on advancing its Yenipazar polymetallic VMS deposit (Au, Ag, Cu, Pb, Zn) in Turkey - a country that is committed to developing its natural resources and is rapidly emerging as an economic powerhouse. Aldridge is currently building on its December 2010 Preliminary Economic Assessment with a Feasibility Study, which Aldridge expects to complete by the end of 2012. The Yenipazar deposit is subject to an earn-in agreement with Alacer Gold Corp., wherein Aldridge can earn a 100% working interest subject to certain conditions, subject to a 6% net profit interest ("NPI", revenues less operational costs) until revenues of US$165 million are generated, and a 10% NPI from there on.
Additional information and corporate documents may be found on www.sedar.com and the Aldridge website, www.aldridgeminerals.ca.
Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Aldridge. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Aldridge believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this new release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Aldridge disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Aldridge Minerals Inc.
Contact Information:
Mario Caron
President & CEO, Director
Aldridge Minerals Inc.
(416) 477-6985
mcaron@aldridgeminerals.ca