Xmet Inc. Reports 525,000 Ounces (uncut) of Inferred NI 43-101 Gold Mineral
Resource on Duquesne-Ottoman
TORONTO, Sept. 21 /CNW Telbec/ - Xmet Inc. (TSX-XME) is pleased to announce it has received a National Instrument (NI) 43-101 compliant Mineral Resource estimate from Reddick Consulting Inc. (RCI) for the Duquesne-Ottoman Property, located near Rouyn-Noranda in Northwestern Quebec. Xmet Inc. ("Xmet") is the operator and can earn a 75% interest in the Duquesne-Ottoman property from Globex Mining Enterprises Inc. (TSX:GMX) by investing a total of $10 million in exploration on the property and making cash payments totalling CDN $7.76 million over four years. Highlights of the new NI 43-101 Duquesne-Ottoman Resource estimate include:
- Inferred Resources of 2,731,276 tonnes at an average grade of 5.29 g/t
Au (6.00 g/t Au uncut) hosting 465,000 ounces Au cut (525,000 ounces Au
uncut)
Xmet management recognized significant upside potential for the historical 2003 Kinross resource with the addition of over 19,000 meters of drilling completed by Queenston Mining Inc. and Diadem Resources Ltd. during the period from 2003 to 2007. Xmet is pleased to report a 72% increase in the inferred resource over the historical resource as a result of this evaluation completed by Xmet's external consultants. Reddick Consulting Inc. have also advised that there is excellent potential to develop additional resources amenable to underground extraction below the areas identified in the current Mineral Resource estimate. Further work to identify and delineate these is ongoing at this time, with Xmet's 2010 diamond drill programme which commenced on September 9th, 2010 (see NR of Sept 9, 2010). Results from drilling in 2010 have not been included in the resource estimate outlined below, and will be reported when they become available.
"We are very pleased to report this updated NI 43-101 compliant resource estimate for the Duquesne-Ottoman project, said Charles Beaudry, President and COO of Xmet. These results are aligned with our expectations upon entering the option agreement and clearly show that, on a gold-ounce-basis our acquisition cost will be quite modest. We will continue to add ounces to this resource by drilling the extensions of the known mineralized zones and, in addition, we will be testing for near surface, low grade, open pittable gold deposits of the style found on the adjacent Beattie-Donchester property explored by the Osisko/Clifton Star joint venture". He further added that "the potential to add high grade ounces is clear as the system is very robust and extends beyond current drilling levels, but we can also see that the gold mineralization extends deep into the syenites and quartz feldspar porphyries which allows us to explore for low grade mineralization near surface. This is an exciting time to be exploring for gold in the Abitibi region of Quebec, which has seen a veritable renaissance in gold exploration in the past few years, and we think Xmet is the next chapter of the story".
Details for the Mineral Resource estimate, using a cut-off grade of 3.0 g/t Au over a 2.5m minimum horizontal width, are outlined in the table and resource statement below. A location map of the deposits is attached to this press release (Figure 1).
Table 1
Duquesne-Ottoman Project -Inferred Mineral Resource
Effective Date September 20, 2010
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Mineral Tonnes Grade Grade Uncut Contained Contained
Resources (Millions) (g/t Au) (g/t Au) Gold Gold
Class (Ounces Cut) (Ounces Uncut)
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Inferred 2.73 5.29 6.00 465,000 525,000
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1. The resources reported in this release occur in a number of closely
spaced steeply dipping sub parallel zones. All drilling used for the
estimate was completed by a number of previous operators in the period
from 1994 and 2006;
2. Resources estimated using polygonal estimation methods on vertical
longitudinal sections. A cutting factor of 30 g/t Au was applied. A
cut-off grade of 3.0 g/t Au and a minimum horizontal width of 2.5m is
based on possible underground mining and a recovery of 100% is
assumed;
3. Figures may not total due to rounding;
4. 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,
socio-political, marketing, or other relevant issues;
5. The quantity and grade of reported Inferred Mineral 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;
6. The Mineral Resources in this press 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 CIM Council December 11, 2005.
Zones
There are five zones hosting the gold mineralization. There are additional mineralized zones that host gold mineralization but do not contribute to the Mineral Resources quoted in this estimate due to less certainty concerning continuity.
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Au g/t
(Cut to Au g/t Ounces Ounces
ZONE TONNES 30 g/t Au) (Uncut) (Cut) (Uncut)
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Liz 1,360,775 4.63 4.63 203,000 203,000
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Fox 545,624 7.84 11.33 138,000 199,000
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South Shaft 162,456 6.08 6.29 32,000 33,000
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Shaft 297,023 4.90 4.90 47,000 47,000
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Stinger 365,399 3.90 3.90 46,000 46,000
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TOTAL 2,731,277 5.29 6.00 465,000 525,000
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The five zones hosting the gold mineralization remain open at depth and in some cases along strike and up dip. The current 7,000 m drill program that commenced on September 9th, 2010 is planned to expand the current resource. Major structures controlling the gold mineralization on the property remain open to the east and west along strike from the known gold zones. Exploration drilling will also target Beattie-style intrusive hosted bulk tonnage gold mineralization already discovered on our western boundary by the Osisko/Clifton Star joint venture.
Duquesne-Ottoman Project
The Duquesne-Ottoman Project is located approximately 50 kilometres north of Rouyn-Noranda in Northwestern Quebec and is immediately adjacent to three past-producing mines on properties currently held by the Osisko-Clifton Star Duparquet joint venture (See June 23 news release at www.xmet.ca and Figure 2). The Duquesne-Ottoman Project benefits from development advantages including Highway 393 and logging roads on the property, and a major power line located 1 km east of the property. Specialized services and a skilled labour pool exist in several communities within 30 kilometres of the Duquesne-Ottoman Project. The project also holds significant potential for the discovery of additional mineral resources.
Historic estimates exist for the Duquesne-Ottoman Project that were prepared for Kinross Gold Inc. by Reddick Consulting Inc. (RCI) in 2003 and were in-house estimates that were not publicly released by Kinross. The Historic estimates were based on data that do not include all currently available drilling, and assumed considerably different gold prices and operating costs than might be expected at present, and are therefore not considered relevant and should not be relied upon. Xmet is not treating the Historic estimates as relevant or as current mineral resources or mineral reserves.
Resource Statement
A total of 17,831 samples in 112 drill holes, representing approximately 55,400 metres of drilling were used for the estimate. All the drilling used for the estimate was done in the period 1994-2006 although older drilling which could not be validated also occurs in the area of the resources. No drilling by Xmet has been incorporated in the current Mineral Resources. Earlier holes were drilled by Santa Fe Canadian Mining Ltd., Kinross Gold Corporation, Queenston Mining Inc. and Diadem Resources Ltd. The Mineral Resource is constrained by limiting intervals to interpreted, multiple zones that demonstrate continuity of mineralization along strike and down-dip between adjacent drill holes. Metal grades were interpolated using polygons with a maximum radius of 60m using a polygonal estimation method. Metal prices of US$850 per troy ounce of gold, based on the three year trailing average, were used to estimate cut-off grade values for the estimate. Individual zones were modelled that reflected the continuous nature of gold mineralisation in a number of different zones.
Mineral Resources were classified as Inferred in each zone if:
a) the composited interval for a zone had a minimum grade of 3.0 gpt Au
(cut) and a minimum horizontal width of 2.5 m; and either
b) a polygon meeting the above criteria was also contiguous with another
polygon for the same zone that also met the minimum grade and width
criteria; or
c) for isolated polygons; if they occurred up or down dip and along the
interpreted plunge line of the zones.
Assay grades were composited to a minimum of 2.5m horizontal width based on the interpreted dip of the zones prior to resource estimation. Unsampled intervals were included in the composites at nil grades. A top cut of 30 g/t Au was applied to the assays before calculation of composite grades on the basis of statistical analysis. The gold grade cut-off value, at 3.0 g/t Au, is based on the assumption that the deposit is of a potential size and nature to allow for possible underground mining. The cut-off value of 3.0 g/t Au was derived from recent technical reports filed on SEDAR and in-house technical data from RCI for similar deposit types. Specific Gravity used in these estimates was 2.70. Recoveries are assumed to be 100%.
A copy of the full resource estimation report will be available on the SEDAR website (www.sedar.com) within 45 days of this press release. The mineral resource estimates which are effective today were completed by John Reddick, M.Sc., P.Geo., of Reddick Consulting Inc., Inverary, Ontario, and are based on geological interpretations and data supplied by the Company to Reddick Consulting Inc. and modified by Reddick Consulting Inc. John Reddick is an 'independent qualified persons' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed in this release. John W. Londry, M.Sc., P.Geo., of Emerald Geological Services (2099840 Ontario Inc.), and Tracy Armstrong, B.Sc., P.Geo., of TJ Armstrong Geological Consulting Inc., both also 'independent qualified persons' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, have verified the sampling procedures and QA/QC data delivered to Reddick Consulting Inc. and are of the opinion that the data are of good quality and suitable for use in the resource estimates.
About Xmet Inc
Xmet Inc., through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne-Ottoman Mines"), carries out gold and resource exploration and development. Pursuant to the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets Ltd., Duquesne-Ottoman Mines can earn an option to purchase 75% of the common shares in the capital of Duparquet Assets Ltd, which legally and beneficially owns 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.
Click here for Figure 1: http://files.newswire.ca/357/Fig_1_eng.doc
Click here for Figure 2: http://files.newswire.ca/357/Fig_2_eng.doc
Neither 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. Mr. Bill Yeomans, P.Geo., Xmet's V.P. Exploration, is the designated Qualified Person responsible for this release.
For further information: Xmet Inc. Charles Beaudry, President and COO, Phone (416) 644-6588, E-mail: [email protected] or Tim Gallagher, Director, Phone: (416) 925-0090, E-mail: [email protected]: Renmark Financial Communications Inc.: Maurice Dagenais: [email protected]; Christine Stewart: [email protected]; Media - Guy Hurd: [email protected], Tel.: (514) 939-3989 or (416) 644-2020, www.renmarkfinancial.com
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