Its been nearly a year since the last development update ( see below ) for the SAWAYAERDUN GOLD PROJECT and its 4.3 million oz of gold.30,000 m of drilling have taken place and mine development proceeds apace.
A chinese feasability study will also accompany the updated 43-101 which could see the deposit exceed 5 million oz of gold....a truly world class discovery.
GMN should exit 2013 above the $2 level unless it is taken private by then in which case we could receive more.....................................................................................................................................the share buyback will make that somewhat cheaper for Mr Tan who already owns 52 %..
Mr. Felipe Tan reports
GOBIMIN INC - INCREASES INDICATED RESOURCE ESTIMATES AT SAWAYAERDUN GOLD PROJECT TO 56.5 MILLION TONNES AT 1.3 G/T AU FOR 2.3 MILLION OUNCES IN ZONES I AND IV
GobiMin Inc. is releasing the latest resource estimates for zones I and IV at the Sawayaerdun gold project after completion of its previously announced 92-hole infill program completed during 2011.
The current resource estimates at a 0.5-gram-per-tonne-gold lower cut-off base case are tabulated.
Contained Million Million Avg. grade gold (000 oz) BCM tonnes Au (g/t) ID2 ID2Zone IVIndicatedOxide 0.3 0.8 1.2 31Sulphide 17.8 51.7 1.3 2,145Total 18.1 52.5 1.3 2,1762011 estimate 34.1 1.3 1,378increment 18.4 798InferredOxide 0.1 0.2 1.3 10Sulphide 15.0 43.5 1.1 1,533Total 15.1 43.8 1.1 1,5432011 estimate 13.5 1.0 426Increment 30.3 1,117Zone IIndicatedOxide 0.1 0.2 1.0 5Sulphide 1.3 3.8 1.1 133Total 1.4 4.0 1.1 139InferredOxide 0.0 0.0 0.6 0Sulphide 3.6 10.4 1.0 333Total 3.6 10.4 1.0 333Totalindicated 19.5 56.5 1.3 2,314Inferred 18.7 54.2 0.8 1,876
This latest resource estimate adds 18.4 million tonnes of indicated resources for 798,000 ounces of contained gold and 30.3 million tonnes of inferred resources for 1,117,000 ounces to the previous 2011 resource estimate for zone IV. There has been no previous resource estimate for zone I.
The company had completed a 92-hole diamond drilling program at Sawayaerdun in the northwest of Xinjiang, China, as scheduled in October, 2011. This drilling infilled and extended the earlier drilling in zone IV to improve the reliability of the previously announced National Instrument 43-101-compliant resource estimate and delimited another approximately parallel mineralized structure at zone I, located 1,200 metres to the east of zone IV. This latest resource estimate utilizes the drilling results of all previous drilling, including the 2011 program, totalling approximately 32,000 metres.
The zone IV and zone I structures are part of a series of subparallel shears that dip steeply, approximately 70 degrees to the west, following a structural corridor that strikes east-northeast within fine-grained Devonian clastic metasediments. These metasediments are composed of a turbidite sequence that has been altered to phyllites becoming more carbonaceous in the proximity of the mineralized shears. The mineralized shear making up zone IV is mapped over a strike length of over 6,500 metres within GobiMin's tenements, with drilling confirming that this structure is mineralized along the whole of this strike length and at depth. Mapping and drilling along zone I have shown that this mineralized structure continues over 3,200 m of strike length.
Current Sawayaerdun resource
The current mineral resource estimates are based on 221 diamond drill holes totalling approximately 53,200 metres for 18,606 gold assays. Of this total, GobiMin drilled a total of 127 holes for approximately 38,000 metres during 2010 and 2011.
The samples from all the GobiMin drilling were assayed for gold by the geophysical and geochemical exploration team of Xinjiang Geology Bureau laboratory in Urumqi, Xinjiang, China, using the activated carbon/foam absorption of dissolved gold in aqua regia technique. A program of quality assurance/quality control sampling and assaying has been followed by the company's geological staff and the laboratory to ensure that the assays obtained are NI 43-101-compliant and fit for the purpose of this resource estimate.
The grade estimation domains for the two zones modelled were wire framed using an approximate 0.5-gram-per-tonne-gold shell. A block model was then generated using block dimensions of 10 metres east-west by 10 metres north-south by five metres vertically into which the drill intercept grades were interpolated using a 200 m along-strike by 200 m depth by 20 m across-strike search ellipse with an inverse-distance-squared (ID2) algorithm. A second inverse-distance-cubed algorithm was also used as a check on the ID2 estimate and to determine the effect of more discrete modelling of the grades.
The competent person has considered sampling density and distance from drill intercepts in order to classify the mineral resources according to the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves (December, 2005), as required by NI 43-101. Model cells within 50 m of a drill intercept were classified as indicated and between 50 m and 200 m as inferred.
The mineral resource is not constrained by any open pit mining shell since it is projected that this deposit will be mined utilizing underground mining methods commonly used in China for this type of deposit. A feasibility study is currently being prepared following Chinese standards, as required by the Chinese authorities before mining can commence, to determine the viability of these resources.
During 2011, two sets of metallurgical gold recovery tests were done on representative samples of fresh sulphide ore from the underground workings in zone IV by the Beijing General Institute of Mining and Metallurgy and the Processing Research Institute of XBGMR. The results of these floatation and roasting tests are summarized in the tables.
JUNE, 2011, BEIJING GENERAL INSTITUTE OF MINING AND METALLURGY Head grade (g/t) Recovery rate (%) Stage Au Ag Au Ag Floatation 2.53 4.50 90 42 Floatation-roasting-CIL1* 82 34 MARCH, 2011, PROCESSING RESEARCH INSTITUTE OF XINJIANG BUREAU OF GEOLOGY AND MINERAL RESOURCES Head grade (g/t) Recovery rate (%) Stage Au Ag Au Ag Floatation 2.41 2.82 93 62 Floatation-roasting-CIL 79 35 * Includes CIL tailings reprocessing.
A copy of the full technical report that includes the NI 43-101 resource statement will be posted by GobiMin on SEDAR within 45 days.
Pursuant to NI 43-101, the qualified person responsible for the technical data provided in this news release is Philip Jones, a geologist with over 35 years of geological experience, including gold, in mineral exploration, development and mining. Philip Jones, BAppSc, AusIMM, AIG, is the company's consultant geologist and has reviewed and approved the contents of this news release.
In addition to a further infilling drilling program of 30,000 metres commencing in April, 2012, the company will continue the mine development program in 2012, which includes construction of water and electricity supply facilities and basic civil works.
We seek Safe Harbor.