Completion of bulk sample exploration program recovers an average gold grade of 33.4 grams per bank cubic meter at the Wingdam Gold Project
CALGARY, May 3, 2012 /CNW/ - CVG Mining Ltd., (the "Company") is pleased to announce that it has completed the analyses of the 140 bank cubic meter paleochannel bulk sample exploration program at the Wingdam Gold Project near Quesnel, British Columbia. The bulk sample was extracted from a 2.44-meter high by 2.44-meter wide exploration drift that intersected the true width of the Lightning Creek paleochannel floor along a 23.5-meter distance. The paleochannel extends laterally across the entire 2.4 km length of the Wingdam Property (the "Property"). The quality and grade reported are conceptual in nature respecting the Property as a whole as there has been insufficient exploration to define a mineral resource within the meaning of National Instrument 43-101. It is uncertain if further exploration will result in a mineral resource being delineated on the Property, however the results of the bulk sample exploration program is consistent with the extensive historical data available on the Property.
The Company extracted and processed the sample to confirm the historical 43-101 non-compliant gold grade of 33.6 grams per bank cubic meter. This grade was established in 1986 by a qualified engineer who used results from historic drill and partial gold production records compiled by previous operators of the Property.
The majority of the gold across the paleochannel floor was concentrated directly along the bedrock-gravel interface. The remaining gold concentrations were located within thin bedrock fractures that extend up to 0.30 m deep and along an overlying boulder/cobble-rich fluvial gravel layer that reached up to 0.90 m thick. This auriferous bedrock and gravel section makes up a gold-enriched zone that reaches up to 1.20 m thick. The materials exposed above and below this section along the 2.44-meter high drift contained negligible traces of gold. All of the gravel and bedrock material extracted along the drift height was combined into the bulk sample.
The gold recovered from the 23.5-meter drift advance across the paleochannel true width amounted to 167.0 ounces of raw placer gold (900 fineness) from 140 bank cubic meters. The refined-equivalent gold grade across this width amounted to 33.4 g/m3 or 0.438 oz/ton. The grade across a central portion of the paleochannel totalling 14.8 m (3.8 to 18.6 m) averaged 49.45 g/m3 or 0.652 oz/ton. Abundant elongated gold flakes up to 5 mm long were visible on bedrock across a 5.5-meter distance (6.5 to 12.0 m). Seven consecutive discrete samples (0.036 to 0.054 m3) collected along this distance returned gold grades ranging from 71.35 to 185.62 g/m3 (0.936 to 2.436 oz/ton). The discrete sample gold grades represent the entire extent of the 5.5-meter distance and 2.44-meter mine height.
The material extracted from the exploration drift was processed in an underground chamber by a trommel washplant and jig utilizing gravity separation methods. The Company's geologist supervised the entire gold recovery process. All tailings or waste manufactured during each recovery process was analysed for gold-loss and it was determined that recovery was more than 99% efficient.
The Property is situated within the Cariboo Gold Fields; a world-class producer of placer gold that includes a history of mining that began during the 1861 gold rush. The Property is located 45 km east from the City of Quesnel along Provincial Highway 26. The Property lies within the Lightning Creek valley and is located immediately downstream from both the former Sanderson and Melvin mines.
The Company is presently in the process of finalizing a National Instrument 43-101 technical report on the Property. Discussions are also being held with engineering firms for the completion of a pre-feasibility study to ascertain the appropriate mining method.
The technical information in this news release has been reviewed and approved by Chief Geologist Stephen Kocsis, BSc, P.Geo; a qualified person as defined in National Instrument 43-101.
Forward Looking Information: This release contains forward-looking information within the meaning of applicable Canadian securities legislation. In particular but without limitation, this press release includes references to future exploration activities, anticipated metal production, estimated ore grades, and events or developments that the Company expects which may constitute forward-looking information. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information, including metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. In addition, the forward-looking information contained in this release is based upon what management believes to be reasonable assumptions. Readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, the Company assumes no obligation to update or revise such information to reflect new events or circumstances.
CVG Mining Ltd.
Len Sinclair
President
250-994-3455
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