Probe Mines Announces Updated Resource Estimate for the Borden Gold Zone, Chapleau, Ontario: Significant Improvement in Grade, Size and Classification

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TORONTO, ONTARIO--(Marketwire - Jan. 15, 2013) - Probe Mines Limited (TSX VENTURE:PRB) ("Probe" or the "Company") -

Highlights:

  • At a 0.5 grams of gold per tonne ("g/t Au") cut-off, the Borden Gold Zone is estimated to contain a Pit Constrained Indicated Resource of 3,686,000 ounces of gold averaging 1.02 g/t Au and an additional Pit Constrained Inferred Resource of 625,000 ounces of gold averaging 1.08 g/t Au, representing an overall increase of approximately 26%, at a similar average grade, from the previous Resource Estimate.
     
  • At a 1.0 g/t Au cut-off, the Borden Gold Zone estimated to contain a distinct, higher-grade zone with a Pit Constrained Indicated Resource of 1,982,000 ounces of gold averaging 1.64 g/t Au and an additional Pit Constrained Inferred Resource of 361,000 ounces of gold averaging 1.77 g/t Au, representing an overall increase in the Resource size of approximately 32%, and an increase in grade of approximately 12%.
     
  • New Resource Estimate highlights the increasing grade of the Borden Gold Zone (up to 48%) observed at all cut-off levels and has the potential to enhance project`s economic viability.
     
  • 85% of the total Pit Constrained resource is now in the Indicated category, representing an increase of 18% from the previous Resource Estimate, from 3,112,000 ounces to 3,686,000 ounces of gold, at a 0.5 g/t Au cut-off grade.
     
  • Significant increase in Global Inventory Sensitivity to the Resource Estimate with an Indicated inventory of 5,190,000 ounces of gold and an additional Inferred Inventory of 1,179,000 ounces of gold at a 0.2 g/t cut-off grade.

Probe Mines Limited (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce that the Company has received the Updated Mineral Resource Estimate for its Borden gold deposit from P&E Mining Consultants Inc. ("P&E"), which shows a marked improvement in grade, size and quality from the previous Resource Estimate (see News Release dated April 2, 2012). The Borden Gold Zone is estimated to contain a Pit-Constrained Indicated Resource of 3,686,000 ounces of gold averaging 1.02 g/t Au and an additional Inferred Resource of 625,000 ounces of gold averaging 1.08 g/t Au, at a 0.5 g/t Au cut-off grade. This represents an overall increase of approximately 26%, at similar average grades, from the previous Resource Estimate (2,735,000 ounces averaging 1.04 g/t Au in an Indicated Resource and of 683,000 ounces averaging 0.93 g/t Au in an Inferred Resource, at a 0.6 g/t Au cut-off grade). In addition, the higher-grade core continues to improve at higher cut-off levels and is highlighted at the 1.0 g/t Au cut-off, where the Resource has increased by 32% in total contained ounces and 12% in overall average grade reflected in an estimated 1,982,000 ounces of gold averaging 1.64 g/t Au in the Indicated category and 361,000 ounces of gold averaging 1.77 g/t Au in an additional Inferred Resource. 

The Updated Resource Estimates represents a rigorous evaluation of the drilling completed to the end of November 2012. The most noticeable difference from previous estimates is the increase in overall grade of the deposit at all cut-off grades (see sensitivity table below) and the continuing definition of a persistent higher-grade resource that has been delineated by the drilling. In addition, there is also a significant increase in the size of the resource, particularly at the higher grade cut-offs, which has been accomplished by the infill drilling program as well as the discovery of higher grade mineralization through recent expansion drilling. The infill drilling program has also been successful at converting additional Inferred material into the Indicated category, with the result that 85% of the Resource is now in the Indicated category.

With ongoing drilling, and each successive Resource Estimate, the Company's understanding of the Borden Gold Zone is improving and it is now recognized that the higher-grade core zone is an integral part of the mineralization and one of its most important aspects. At a 0.5 g/t Au cut-off, the Resource contains a significant deposit of greater than 1.0 g/t average gold grades. Although sensitivity tables are provided for both Constrained and Global sensitivity to the Resources, it is important to note that due to overall increasing grades any comparison to previous Resource Estimates should also consider average grades at each Au cut-off. 

Updated Resource Estimate (Pit Constrained)

The Updated Resource Estimate was constrained in a preliminary Whittle open-pit optimized shell to a maximum depth of approximately 475m. For the purpose of this News Release, the Resource Estimate is reported at a cut-off grade of 0.5 g/t Au. The 0.5 g/t cut-off was chosen to better represent the higher-grade core to the mineralized zone and to provide continuity for the upcoming Preliminary Economic Assessment ("PEA"), which will be based on the Resource at a 0.5 g/t Au cut-off. 

The following sensitivity table presents the Resource Estimate for mineralization falling within the preliminary optimized pit shell, assuming a gold price of US$1,200/oz and a metallurgical recovery of 92%.