New Guinea Gold Corporation has lodged of a National Instrument 43-101 compliant technical report for the operating Sinivit Gold Project. The company commissioned Ian Taylor of Mining Associates (MA), Brisbane, Australia, to compile the report.
MA has, over the last 12 months, provided ongoing support to the project in the areas of geology and production grade control and has recently completed an update of the Sinivit Resource Model. The scope of the report covers an estimate of the mineral resources remaining at Sinivit mine as well as an appraisal of the geology and exploration potential of the project within the confines of the current exploration tenement.
This report is based on a review of all technical data supplied by the company and a total of six site visits made by Ian Taylor over the past 12 months as part of the technical support contract.
New Guinea Gold’s acting CEO Greg Heaney says, “It is pleasing to note that this study has confirmed the company's confidence in the indicated and inferred resources at Sinivit and Kavursuki. The resource estimates here are consistent with our current mine plan and further support our decision to progress with the definitive feasibility study into an agitated leaching operation.”
Mineral resources for the project have been estimated by MA for the preparation of the report and quoted above a 1.5g/t gold cut off. There are a total of 1.697 million tonnes of inferred resources @ 3.4 grams/tonne gold and 0.25% copper for 183,700 ounces of gold, and 354,000 tonnes of indicated resources @ 3.8 grams/tonne gold and 0.29% copper for 43,800 ounces of gold.
The resource is based on holes drilled to August 31 2011 and the resource is depleted with mining to June 30, 2011. There are also 135,000 indicated tonnes remaining within the designed pit shell @ 4.44 grams/tonne gold and 0.35% copper for 19,230 ounces of gold.
The company has also recently received results from drilling in the Kavursuki zone, which is on strike with the Sinivit Mine and 1.5-2km to the north. Greg Heaney says, “These drilling assay results continue to assist us in understanding the extent, location and nature of the Kavursuki vein system. The current exploration drilling program will continue until December 2011 by which time a new medium to long-term exploration program will have been finalized.”