TomaGold reports the results of an initial resource estimate by IAMGOLD for the Monster Lake project
Inferred resource of 1,109,700 tonnes at an average grade of 12.14 g/t Au for 433,300 ounces of gold
MONTREAL, March 28, 2018 /CNW Telbec/ – TOMAGOLD CORPORATION (TSXV: LOT) (« TomaGold » or the « Corporation ») is pleased to announce that its joint-venture partner IAMGOLD Corporation (« IAMGOLD ») has reported the results of its first mineral resource estimate in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (« CIM ») Definition Standards incorporated by reference in National Instrument 43-101 (« NI 43-101 ») for the Monster Lake joint venture project (IAMGOLD: 50%, TomaGold: 45%, and Quinto Resources Inc.: 5% on the Monster Lake block of claims), located 50 kilometres southwest of Chibougamau, Quebec, Canada.
The resource estimate comprises 1,109,700 tonnes of inferred resources averaging 12.14 grams of gold per tonne for 433,300 ounces of contained gold. This resource is contained in four discrete mineralized zones where geological and grade continuities have been demonstrated and has been estimated assuming an underground mining scenario. The most significant zone is the 325-Megane Zone which is characterized by its high grade and remains open down plunge at depth. The potential for adding additional resources along the identified shear structures is considered favourable and remains the focus of ongoing exploration programs.
« This first resource estimate is added support for what we have long suspected, which is that Monster Lake has the potential to become an important high-grade gold deposit, » said David Grondin, President and Chief Executive Officer of TomaGold. « This is a milestone in the development of Monster Lake, especially because many targets and gold-bearing areas have yet to be explored. The goal of the joint venture is to realize the full value of the Monster Lake project, and IAMGOLD has the required resources and tools to achieve that goal. »
The mineral resource estimate for the Monster Lake project incorporates assay results from 105 diamond drill holes variably spaced from 50 to 200 metres apart and totaling nearly 39,000 metres. The drill hole data base comprises both historic and recent drill holes completed by the joint venture partners. The estimate was prepared using a block model constrained with 3D wireframes of the four mineralized solids constructed by InnovExplo Inc. Values for gold were interpolated into blocks using a 2-pass inverse distance squared (ID2) interpolation method. This mineral resource estimate incorporates mining assumptions relating to an underground mining extraction method to support the CIM requirement that Mineral Resources have ‘reasonable prospects for eventual economic extraction’. Only mineralization contained within the four mineralized wireframes has been included in the resource estimate. The effective date of this resource estimate is February 26, 2018.
A supporting NI 43-101 Technical Report will be filed on SEDAR at www.sedar.com by IAMGOLD within 45 days of this release.
MINERAL RESOURCE STATEMENT – MONSTER LAKE PROJECT
Effective February 26, 2018
| Classification | Tonnage
(000s) |
Gold Grade
(g/t Au) |
Contained Ounces
(Au) (000s) |
| Inferred | 1,109.7 | 12.14 | 433.3 |
Notes:
- CIM definitions were followed for classification of Mineral Resources.
- Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
- Results are presented in situ and undiluted.
- Mineral resources are reported at a cut-off grade of 3.5 g/t Au, using a gold price of US$1,300/ounce and a Canadian$/U.S.$ exchange rate of 1.28.
- Density data (g/cm3) was established on a per zone basis and ranges from 2.86 to 2.88 g/cm3.
- A minimum true thickness of 2.5 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.
- High-grade capping (g/t Au) was done on raw assay data and ranges from 20 to 150 g/t Au, based on the statistical analysis of each mineralized zone.
- Resources were estimated from 1.5m drill hole composites, using a 2-pass ID2 interpolation method in a block model (block size = 3 m x 3 m x 3 m).
- The number of metric tons and ounces was rounded to the nearest hundred.
Next Steps
IAMGOLD has initiated its 2018 exploration program which includes approximately 7,500 metres of diamond drilling. The objectives of the drilling program include: definition drilling targeting the upper part of the 325-Megane zone; testing for extensions along strike and at depth; and evaluation of newly discovered areas of mineralization adjacent to the 325-Megane zone along the Monster Lake structural corridor and in the Lower Shear zone. The program is designed to improve confidence in the continuity of the mineralization and to extend the known mineralized zones.
About the Monster Lake Project
The Monster Lake project is underlain by Archean volcanic rocks of the Obatogamau Formation and is traversed by an important deformation corridor and associated gold-bearing mineralized structures. Historical drilling and exploration by TomaGold have identified a four-kilometre long structural corridor, along which most of the known gold occurrences discovered to date on the property are associated, including the 325-Megane Zone.
The Monster Lake project is held under an earn-in option to joint venture agreement with IAMGOLD, which holds an undivided 50% interest in the property, and holds an option to earn a further 25% undivided interest, for a total 75% undivided interest in the project, should it spend a total of C$10.0 million on the project within a seven year period, beginning January 1, 2015. Should a development decision be made by the joint venture, or should the joint venture declare commercial production, TomaGold would be entitled to a further C$1.0 million payment for each of these events.
On August 14, 2017, IAMGOLD subscribed for 27.7 million common shares of TomaGold from treasury representing 19.98% of the outstanding common shares of TomaGold. The common shares were purchased at a price of C$0.09 per common share, for an aggregate purchase price of C$2.5 million. Prior to the acquisition, IAMGOLD did not hold any common shares of TomaGold.
Qualified Persons and Technical Information
The mineral resource estimate, including verification of the data disclosed, has been completed by InnovExplo Inc. (« InnovExplo ») and reported in accordance with NI 43-101 requirements and CIM Estimation Best Practice Guidelines. The resource estimate was prepared by Karine Brousseau, Eng., and Charlotte Athurion P.Geo., both of InnovExplo, under the supervision of Alain Carrier P.Geo., of InnovExplo.
Karine Brousseau, Eng. who is an independent qualified person under NI 43-101, has reviewed and approved the contents of this release. The information in this news release was reviewed and approved by Marie-France Bugnon, P. Geo., General Manager Exploration for IAMGOLD, who is considered a Qualified Person as defined by National Instrument 43-101.
The technical content of this press release has been reviewed and approved by Claude P. Larouche, Eng., a qualified person as defined by National Instrument 43-101.
About TomaGold Corporation
TomaGold Corporation is a Canadian mineral exploration company engaged in the acquisition, assessment, exploration and development of gold mineral properties. To optimize its chances of discovery and minimize its exploration risk, TomaGold aims to develop high-grade gold properties with major mining companies. It currently has joint venture agreements with IAMGOLD Corporation for the Monster Lake project, with Goldcorp Inc. for the Sidace Lake property, and with Goldcorp Inc. and New Gold Inc. for the Baird property. TomaGold has interests in six gold properties in northern Quebec: Monster Lake, Winchester, Lac-à-l’Eau-Jaune, Monster Lake East, Obalski and Lac Cavan near the Chibougamau mining camp. It also holds a 39.5% interest in the Sidace Lake property and a 24.5% in the Baird property near the Red Lake mining camp in Ontario. Finally, it has an option to acquire a 70% interest in the Hazeur property, at the southern edge of the Monster Lake group of properties.
The Corporation is also engaged in gold brokerage activities in South America through its subsidiary, TomaSouth Corporation.
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. The statements in this news release that are not historical facts are « forward-looking statements ». Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those described in such « forward-looking » statements.