Pershimco Announces 'In-Pit' NI 43-101 Resource Estimate Totalling 570,100 Indicated Au Ounces & 167,800 Inferred AuEq Ounces
ROUYN-NORANDA, QUEBEC -- (Marketwire) -- 09/20/12 -- Pershimco Resources Inc. (the "Corporation" or "Pershimco") (TSX VENTURE: PRO) (FRANKFURT: BIZ) announces the completion of it's National Instrument (NI) 43-101 2012 Mineral Resource Estimate Update at its 15,000 Ha 100% owned Cerro Quema Property, Panama, which was completed by P&E Mining Consultants Inc. ("P&E") of Brampton Ontario. The Cerro Quema Property hosts the La Pava, Quema Quemita and La Mesita Zones.
Highlights from the updated Mineral Resource:
-- All resources reported are within an optimized pit shell;
-- Indicated oxide gold mineral resources increase from 256,000 to 513,100
Au Oz's;
-- Indicated oxide and sulphide resources total 570,100 Au Oz's increasing
by 123%;
-- Inferred resources total 167,800 AuEq(10) Oz's;
-- Previous mineral resource calculation (2010) gives a gold discovery rate
of 14.7 Oz's per meter drilled;
-- Gold discovery rate has increased to 17.5 Oz's per meter drilled;
-- The recently drilled 9,020 meters is not included in this mineral
resource estimate but will be included in the next resource estimate;
and
-- Four drill rigs are still expanding the two targets : LaPava and
Quemita-Quemita.
Table 1: Mineral Resource Summary for La Pava, Quema Quemita and La Mesita Zones
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AuEq(10)(11)
Resource Category Au (oz) (oz) Tonnes Grade
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Au (gpt) Cu (%)
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In pit Oxide Resource Estimate at 0.15 g/t Au Cut-Off
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Indicated 513,100 Nil 20,189,000 0.79 Nil
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Inferred 50,600 Nil 4,492,000 0.35 Nil
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In Pit Sulphide Resource Estimate at 0.30 g/t Au Cut-off
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Indicated 57,000 Nil 2,750,000 0.64 0.24
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Inferred 1 30,400 Nil 1,963,000 0.48 0.32
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Inferred 2 (12) 9,900 76,900 1,470,000 0.21 0.86
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Resource Estimate Notes and Parameters
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, socio-political, marketing, or other relevant issues, although
the Corporation is not aware of any such issues.
2. 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.
3. The mineral resources in this news release were estimated using 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 and
adopted by the CIM Council.
4. Variable Au grade capping by mineralized domain was accomplished at Au
values ranging from 1.5g/t to 15 g/t
5. The Gemcom block model was defined by 5m x 5m x 5m blocks. Bulk
densities of 2.2 t/m3 and 2.7 t/m3 were respectively used for oxide and
sulphide tonnage calculations. Inverse distance cubed (1/d3) grade
estimation was utilized.
6. An August 31, 2012 two year trailing gold price of US$1,555/oz was
utilized in the Au cut-off grade calculations of 0.15 g/t for oxide
resources and 0.30 g/t Au for sulphide resources. Open pit mining costs
were assumed at US$2.25/t for mineralized material and waste rock,
process costs at US$5.50/t for oxide and US$11.25/t for sulphide along
with G&A of $1.50/t. Au leach process recovery was assumed at 93%.
7. Values in the table may differ due to rounding.
8. The open pit resource is reported within a Whittle optimized pit shell
with 45 degree slopes.
9. Resources were based on 509 drill holes (197 drilled by Pershimco) for a
total of 43,768 metres.
10. AuEq g/t = Au g/t + (Cu% x 1.64) derived from US$1,555/oz Au, US$3.84/lb
Cu, 93% Au recovery and 90% Cu recovery.
11. Pershimco's current extraction rights for the Cerro Quema Property are
for Au and Ag only. Pershimco also has first rights for Cu or other base
metals in accordance with the Corporation's rights under the present
concession contract governed by Panamanian law.
12. The noted Inferred 2 AuEq resource was derived from the La Pava portion
the Cu rich sulphide domain using the AuEq calculation in note 10 above.
This Mineral Resource update also highlights potential operational advantages for the Corporation's Cerro Quema Project:
-- Higher grade gold within potential near surface starter pit;
-- Potential low stripping ratio;
-- Significant copper credits in the sulphide resource; and
-- Resources are contained in two pits located within 3 km.
Alain Bureau, P.Eng, Pershimco's President and CEO commented: "We are pleased to have almost tripled our overall resources since our last mineral resource estimate in 2011 and in doing so maintained high quality in-pit ounces. As the Corporation moves closer to a Preliminary Economic Assessment, we are very encouraged that we now have a solid low strip 'in-pit' resource with high grades sitting on surface that provides us with a good starting point to go forward with future project development. As reported in recent press releases, our ongoing drilling programs also continue to yield favorable results. In addition, we have two close proximity drill ready targets to access as soon as we finalize the current program. The project has approved environmental and gold exploitation permits and benefits from the potential operational advantage of having a paved road from the Pan-American highway to within 7 km of the proposed plant site and pit".
Quality Assurance / Quality Control ("QA/QC")
Drill core from the diamond drill holes and cuttings from reverse circulation (RC) drill holes are transported by Pershimco technical personnel from the drill site to the core and sample preparation facility on site. Once there, geologists and qualified technicians log, sample tag and half-split the diamond drill core in 1 meter lengths using stationary saws. Individual sampled meter intervals of split core and RC chips are then put in tagged and sealed plastic bags with a standard, duplicate and blank inserted at regular intervals. The prepared samples are then sent to the Activation Laboratories (Actlabs) sample preparation facilities in Panama. Individual samples are inventoried by Actlabs personnel, dried, finely crushed to 70% at less than 2 mm, then pulverized to 85% at less than 75 um, and riffle-split to 150 grams. Prepared samples are then placed into sealed 5-gallon plastic containers and shipped by courier services to the Activation Laboratories main facilities in Ancaster (Ontario, Canada) for assaying using a multi-element ICP method and fire assay method with atomic absorption finish for Gold, Silver and Copper. Over limit assays are done on samples with results greater than 2.5 g/t. The sample preparation protocol also requires that samples be dried at 125 degrees Fahrenheit just prior to crushing and also immediately before pulverizing.
Qualified Persons
The Mineral Resource calculations were completed by P&E Mining Consultants Inc. of Brampton, ON, Canada under the direction of Eugene Puritch P.Eng., an independent Qualified Person ("Q.P,") under NI 43-101 guidelines. The content of this press release was reviewed and approved by Mr. Puritch.
About Pershimco Resources Inc.
Pershimco Resources Inc. is a Canadian-based resources and exploration company listed on the TSX Venture Exchange and the Frankfurt Exchange. The Corporation holds several mining properties in Canada and South America, including the extraction permitted Cerro Quema advanced project in Panama and the Courville Gold Project, in the Val-d'Or Gold Mining Camp, being explored in partnership with Osisko Mining Corporation. The Corporation is managed by skilled and reputable people with extensive mining, exploration and development experience. The Pershimco Team and its investors are the key to its success.
The Corporation's documents are available on www.sedar.com
Please visit the Corporation's website at www.pershimco.ca
Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statement.
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 news release.
Contacts:
Alain Bureau, P. Eng.
President and Chief Executive officer
+1 (819) 797-2180
ressources@pershimco.ca
Richard Leroux
Investor Relations
+1 (514) 993-4510
info@pershimco.ca
www.pershimco.ca