Highly mineralized sample intervals have been recorded in two recently completed drill holes at St Augustine Gold and Copper’s King-king project in the Compostela Valley of Mindanao.
The assays compare favourably with the gold and copper grades predicted by the block model from the mineral resource estimate disclosed in the NI 43-101 October 2010 Technical Report.
These results are supported by a positive third party site visit audit report on the overall King-king project drilling and geology programs.
St Augustine’s president and CEO say, “These intercepts confirm the high quality and integrity of the existing King-king data. The grades are extremely compelling with 99 metres of greater than 1 grams/tonne gold and 1.1% copper.”
The first hole recorded 600 metres from surface @ 0.299 grams/tonne gold and 0.368% copper, including 99 metres from 141 metres @ 1.03 grams/tonne gold and 1.14% copper. The second hole returned 455 metres from surface @ 0.129 grams/tonne gold and 0.197% copper, including 150 metres from 45 metres @ 0.166 grams/tonne gold and 0.295% copper.
King-king has measured and indicated resources of 792 million tonnes grading 0.37 grams/tonne gold and 0.28% copper. It is a porphyry copper-gold deposit hosted by hornblende-biotite diorite porphyritic rocks that intrude interbedded sediments, submarine volcanic rocks, and volcanoclastic sediments.
The current drill hole database consists of 276 holes representing 89,922 metres of drilling with an average drill hole spacing ranging from 94 to 125 metres. The lower extent of the deposit is often open, with numerous historic holes that terminated in ore grade mineralization.
The potential for discovery of additional mineral resources in both the undrilled portion of the deposit as well as in outlying areas of the mineral property tenement is regarded as excellent.
The King-king drilling to support metallurgical, geotechnical and hydrogeological components of the feasibility study is progressing well, with 80% of the 15 hole program completed.
Contractors DrillCorp, Intertek Testing Services and Geotechnica are primarily focused on collecting and analysing additional data and samples for the geotechnical, hydrogeological, and metallurgical studies that will form the basis of the feasibility-level mine design, process design, tailing disposal system design, as well as supply information for the waste rock and tailing characterization, and for evaluating surface and underground water impacts and mitigation plans for the feasibility study.
As part of continued operations and the current feasibility study work program, there will continue to be an ongoing audit and review of King-king's site management data collection process and procedures.
St Augustine has also agreed and executed with Nationwide Development Corp (Nadecor) an Interim Funding Agreement (IFA) for its additional investment in the King-king project. The additional investment covered by the IFA is investment over and above the US$30 million in project expenditures covered by the Preferred Share Investment Phase of the overall earn-in agreement but prior to the joint venture phase.
St Augustine expects that it will invest an estimated additional US$60 million, part of it under the IFA, to complete its full earn-in interest by quarter 2 of 2012 when the bankable feasibility study is forecast to be completed.