GoldQuest Reports Maiden Resource Estimate from Romero and Update at Romero South; Indicated Resource of 2.4 Million oz. Gold Equivalent; Inferred Resource of 0.8 Million oz. Gold Equivalent
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 29, 2013) - GoldQuest Mining Corp. (TSX VENTURE:GQC)(FRANKFURT:M1W)(BERLIN:M1W) ("GoldQuest" or the "Company") is pleased to announce a maiden National Instrument 43-101 (NI 43-101) compliant resource estimate on its 100% owned Romero deposit and an update of the Romero South (previously Escandalosa) NI 43-101 resource estimate, which is located 950 metres south of Romero, see Table 1 below.
Highlights:
Fast track maiden indicated resource estimation achieved for Romero
75% of the contained metal occurs within the higher confidence indicated category due to the low variability of the gold grade of the deposit and concentrated drilling density near the core of the deposit.
The Company believes there is good potential for underground bulk mining at Romero
Romero and Romero South are considered a single project
"High grade, long drill hole intersections from the Romero Project have translated into a high quality resource statement within 17 months of the Romero discovery," commented Julio Espaillat, GoldQuest's CEO. "At a $150 net smelter return cut-off Romero includes a coherent high-grade indicated core of 6.23 million tonnes grading 6.9 g/t gold equivalent, containing 1,386,000 ounces of gold equivalent, which also encourages us to consider commencing early economic studies to advance the project towards a mining decision."
Table 1: Mineral Resources for Romero and Romero South Estimated by Micon International Limited as of October 29, 2013
Category
Zone
Tonnes
Au (g/t)
Cu (%)
Zn (%)
Ag (g/t)
AuEq (g/t)
Au Ounces
AuEq Ounces
Indicated
Romero
17,310,000
2.55
0.68
0.30
4.0
3.81
1,419,000
2,123,000
Romero South
2,110,000
3.33
0.23
0.17
1.5
3.80
226,000
258,000
Total Indicated Resources
19,420,000
2.63
0.63
0.29
3.7
3.81
1,645,000
2,381,000
Inferred
Romero
8,520,000
1.59
0.39
0.46
4.0
2.47
437,000
678,000
Romero South
1,500,000
1.92
0.19
0.18
2.3
2.33
92,000
112,000
Total Inferred Resources
10,020,000
1.64
0.36
0.42
3.8
2.45
529,000
790,000
Key assumptions of the mineral resource estimates for Romero and Romero South deposits are as follows:
1. The mineral resource estimate for the Romero and Romero South deposits has been prepared and categorized for reporting purposes by B.T. Hennessey, P.Geo., and A.J. San Martin, MAusIMM(CP)., of Micon, following the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum. Both Mr. Hennessey and Mr. San Martin are Qualified Persons as defined by NI 43-101 on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold deposits and they are both independent of GoldQuest.
2. Resource estimate assumptions.
- Drill core assays from GoldQuest's 2013 drill hole database, comprising all holes in the LTP series between LTP-01 and LTP-150. - Micon has verified over 80% of the assay database against original laboratory certificates delivered directly from the lab and reviewed the QA/QC procedures used in the sampling protocol. Micon is satisfied that the quality of the data is sufficient for resource estimation. - Samples were composited to a 2 metre sample length. - Grades at Romero capped as follows: Au = 72.2 g/t, Cu = 6.37%, Zn = 6.91% and Ag = 60 g/t. - Grades at Romero South capped as follows: Au = 20.5 g/t, Cu = 1.25%, Zn = 1.65% and Ag = 15 g/t. - Average specific gravity is assumed to be 2.94 g/cc at Romero and 2.72 g/cc at Romero South. - NSR formula considered the following metal prices: gold = $1400/ounce, copper = $3.18/pound, zinc = $0.95/pound and silver = $22.50/ounce. - The following costs were used in the NSR: mining = $30/t (Romero) and $24/t (Romero South); processing = $12.50/t and G&A = $2.50/t. The weighted (by metal price) average recovery of the 4 elements from the Romero South met test-work was 76.7%. - NSR cut-off = ($30 + $12.50 + $2.50) / 0.767 at Romero (rounded to $60) and ($24 + $12.50 + $2.50) / 0.767 at Romero South (rounded to $50). - NSR input formula for cut-off = (Au g/t x $45.01) + (Ag g/t x $0.72) + (Cu% x $70) + (Zn% x $21). - Block model with regular-shaped blocks measuring (X) 10 m by (Y) 4 m by (Z) 4 m estimated with the Ordinary Kriging (OK) method at Romero. - Block model with regular-shaped blocks measuring (X) 10 m by (Y) 10 m by (Z) 2 m estimated with the Ordinary Kriging (OK) method at Romero South.
3. Micon considers a $60 NSR cut-off at Romero to be reasonable with potential for economic extraction in a bulk tonnage underground mine and a $50 NSR cut-off at Romero South to be reasonable with potential for economic extraction in a room and pillar underground mine.
4. The resource estimate has been classified using the CIM Definition Standards - For Mineral Resources and Mineral Reserves. Specifically the Indicated and Inferred based upon the following criteria:
- Resource blocks estimated with at least 6 samples from 3 distinct drill holes within the range of the variogram were assigned to the Indicated category (55m along strike, 75m down dip at Romero and 50 along strike and 70m down dip at Romero South). - All remaining resource blocks within the geological model were assigned to the Inferred category.
5. It is Micon's opinion that there are no known environmental, permitting, legal, title, taxation, socio-economic, marketing or political issues which exist that would adversely affect the mineral resources for Romero and Romero South presented above. The mineral resources presented herein are not mineral reserves as they have not been subject to adequate economic studies to demonstrate their economic viability. They represent in-situ tonnes and grades and have not been adjusted for mining losses or dilution.
6. A portion of the mineral resource estimate has been calculated as Inferred as there has been insufficient exploration to define the resources as an indicated or measured mineral resource. It is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
7. Effective date of the resource estimate is October 29, 2013.
The mineral resources at Romero occur in a kilometre long deposit that extends from close to the GoldQuest exploration camp towards the north-west. Along the long axis it is up to several hundred metres wide and is at its thickest towards the core. The core of the deposit is the Indicated resource, which appears to have favorable geometry for large tonnage underground mining (see link to cross-section
Table 3: Romero Inferred Resources Sensitivity to NSR Cut-off (reported cut-off marked with *)
Category
Cut-off ($)
Cum. Tonnage
Au g/t
Ag g/t
Cu %
Zn %
Au-Eq. g/t
Au Ounces
Au-Eq. Ounces
Inferred
>150
1,460,000
3.84
5.1
0.58
0.48
5.04
180,000
237,000
Inferred
140.0
1,690,000
3.61
5.0
0.57
0.48
4.79
196,000
261,000
Inferred
130.0
1,990,000
3.36
4.9
0.55
0.48
4.52
215,000
289,000
Inferred
120.0
2,370,000
3.10
4.7
0.54
0.48
4.24
236,000
323,000
Inferred
110.0
2,830,000
2.86
4.6
0.52
0.48
3.97
260,000
361,000
Inferred
100.0
3,410,000
2.62
4.5
0.50
0.47
3.69
287,000
405,000
Inferred
90.0
4,080,000
2.39
4.4
0.48
0.47
3.43
314,000
450,000
Inferred
80.0
5,020,000
2.14
4.3
0.46
0.47
3.14
346,000
507,000
Inferred
70.0
6,340,000
1.88
4.2
0.43
0.47
2.83
383,000
577,000
Inferred
60.0*
8,520,000
1.59
4.0
0.39
0.46
2.47
437,000
678,000
Inferred
50.0
11,850,000
1.33
3.9
0.34
0.45
2.12
506,000
808,000
Inferred
40.0
17,340,000
1.07
3.8
0.28
0.43
1.76
596,000
983,000
Inferred
30.0
24,420,000
0.87
3.6
0.23
0.41
1.48
685,000
1,160,000
Table 4: Romero South Indicated Resources Sensitivity to NSR Cut-off (reported cut-off marked with *)
Category
Cut-off ($)
Cum. Tonnage
Au g/t
Ag g/t
Cu %
Zn %
Au-Eq. g/t
Au Ounces
Au-Eq. Ounces
Indicated
>150
950,000
5.34
1.5
0.29
0.19
5.90
163,000
180,000
Indicated
140.0
1,040,000
5.11
1.5
0.28
0.19
5.66
171,000
189,000
Indicated
130.0
1,120,000
4.93
1.5
0.28
0.19
5.47
177,000
197,000
Indicated
120.0
1,210,000
4.73
1.5
0.27
0.19
5.27
184,000
205,000
Indicated
110.0
1,310,000
4.54
1.5
0.27
0.19
5.06
191,000
213,000
Indicated
100.0
1,420,000
4.34
1.5
0.26
0.19
4.86
198,000
222,000
Indicated
90.0
1,540,000
4.13
1.5
0.26
0.19
4.64
205,000
230,000
Indicated
80.0
1,660,000
3.94
1.5
0.25
0.18
4.45
210,000
237,000
Indicated
70.0
1,800,000
3.74
1.5
0.25
0.18
4.23
216,000
245,000
Indicated
60.0
1,940,000
3.55
1.5
0.24
0.17
4.03
221,000
251,000
Indicated
50.0*
2,110,000
3.33
1.5
0.23
0.17
3.80
226,000
258,000
Indicated
40.0
2,300,000
3.12
1.4
0.22
0.17
3.57
231,000
264,000
Indicated
30.0
2,550,000
2.87
1.5
0.21
0.16
3.30
235,000
270,000
Table 5: Romero South Inferred Resources Sensitivity to NSR Cut-off (reported cut-off marked with *)
Category
Cut-off ($)
Cum. Tonnage
Au g/t
Ag g/t
Cu %
Zn %
Au-Eq. g/t
Au Ounces
Au-Eq. Ounces
Inferred
>150
240,000
5.10
2.1
0.22
0.25
5.59
39,000
43,000
Inferred
140.0
280,000
4.74
2.2
0.22
0.27
5.25
43,000
47,000
Inferred
130.0
320,000
4.47
2.2
0.23
0.28
4.99
46,000
51,000
Inferred
120.0
360,000
4.24
2.2
0.23
0.29
4.77
49,000
55,000
Inferred
110.0
400,000
4.05
2.2
0.23
0.29
4.57
52,000
59,000
Inferred
100.0
460,000
3.76
2.2
0.22
0.28
4.27
56,000
63,000
Inferred
90.0
520,000
3.53
2.2
0.22
0.27
4.03
59,000
67,000
Inferred
80.0
610,000
3.23
2.1
0.22
0.27
3.73
63,000
73,000
Inferred
70.0
760,000
2.84
2.2
0.21
0.25
3.32
69,000
81,000
Inferred
60.0
1,060,000
2.34
2.2
0.20
0.21
2.78
80,000
95,000
Inferred
50.0*
1,500,000
1.92
2.3
0.19
0.18
2.33
92,000
112,000
Inferred
40.0
2,190,000
1.53
2.4
0.17
0.18
1.91
107,000
134,000
Inferred
30.0
3,090,000
1.21
2.5
0.15
0.18
1.58
120,000
157,000
Contact
GoldQuest Mining Corp. Julio Espaillat President & Chief Executive Officer +1-829-919-8701 jespaillat@goldquestcorp.com GoldQuest Mining Corp. Office of the Chairman - Toronto +1-416-583-5606 wfisher@goldquestcorp.com