Re: News Release - Tuesday, October 11, 2011
Title: REBgold Announces New NI 43-101 Resource Estimate for Finland Projects
Toronto, Canada, October 11, 2011 - REBgold Corporation ("REBgold" or the "Company", TSX.V: RBG) is pleased to announce the initial resource reports from its Finnish gold projects Kiimala and Rantasalmi. Highlights of the reports are as follows:
- Indicated resources of 215,000 ounces
- Inferred Resources of 244,000 ounces
- Historical Resources of 100,000 ounces
- Significant potential exists to expand existing mineralization and for new discoveries
Results of the resources are summarized in the table below. Further information can be found on our website www.reb-gold.com or on Sedar www.sedar.com.
| |
Tonnes |
Grade g/t |
Ounces |
Indicated Resources
Osikonmaki East
K1
Total Indicated |
1,296,000
3,850,000 |
1.7
1.19 |
68,000
147,000
215,000 |
Inferred Resources
Osikonmaki East
Total Inferred |
3,542,000 |
2.1 |
244,000
244,000 |
Historical Estimates(1)
Oskionmaki West
Pirila
K3
Total Historical |
90,000
300,000
291,000
|
4.86
6.5
2.5 |
14,000
63,000
23,000
100,000 |
(1) The historical estimates for the Osikonmaki West, Pirila and K3 zones are based on prior data and reports prepared by previous owners of the properties. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources under NI 43-101. The Company is not treating the historical estimates as current mineral resources or mineral reserves. The Company considers that the historical estimates should be considered only as historical references of tonnes and grades. No reliance should be placed on these historical estimates.
Mark Burridge, Chairman, stated. "These are very encouraging initial results. We believe that there is significant potential to add to these resources by drilling around existing mineralization as well as through the discovery of new mineralization. We are particularly excited by Osikonm�ki East where the mineralization remains open at depth and along strike."
REBgold is also pleased to announce that it has engaged Investor Cubed Inc. ("Investor Cubed" or ICI") to provide investor relations and shareholder communications services. In connection with the engagement, Investor Cubed has been awarded a consulting contract paying $5,000 per month for a term of twelve months. In addition, Investor Cubed has been granted options to purchase 2,000,000 shares of REB at a price of ten cents ($0.10) per share. The options will vest quarterly over a period of one year and will be governed by the provisions of REB's stock option plan.
Background on Projects
The main mineralized structure in the Rantasalmi area is the Osikonm�ki shear zone, a shear complex, at least 3km long, hosted by a Proterozoic aged (1.88 Ga) Tonalitic Intrusion. Most of the drilling to date has focused on the Eastern 800m of this shear (referred to as Osikonm�ki East) where the mineralization is primarily associated with a 45 0 south dipping shear zone between 4 and 30 m thick. A series of higher grade chutes pitch at shallow angles across the plane of the main shear, plunging 200 to the ESE, contain the better part of the mineralization and extend for at least 600 m down plunge. In addition, recent drilling has identified the presence of hanging wall mineralization, a portion of which is included in the current resource estimate. Beyond the main shear zone, potential exists for gold mineralization in associated structures as indicated by the high grade mineralization identified at Pirila.
The Kiimala project contains numerous paleoproterezoic gold occurrences in the form of an echelon vein system, two of which (K1 and K3) have been drilled sufficiently to allow for the historical resource calculations.
Rantasalmi Mineral Resource Statement:
The mineral resource estimate for Osikonm�ki East is effective from 6th October, 2011 and has been prepared by Golder Associates (UK) Ltd under the supervision of Alexandra Akyurek (Csci, MSc MIMMM), acting as an independent "Qualified Person" as defined by National Instrument 43-101. Mrs Akyurek is a member of the Institute of Materials, Minerals and Mining (Member #447670). Mineral resources of the Osikonm�ki East gold deposit have been prepared and categorised for reporting purposes by Golders, according to the Canadian Institute of Mining (CIM) Standards on Mineral Resource and Reserves Definitions and Guidelines, referred to in the National Instrument (NI) 43-101, Standard Disclosure for Mineral Projects (Standards) for submission to the TSX.
The Osikonm�ki database includes 199 Diamond drillholes totalling 24,271 metres drilled. These include 79 drillholes for a total of 7,809 m of core drilled by Belvedere and 120 drillholes for 16,462m of core drilled by the GTK (Geological Survey of Finland) between 1986 and 1991. The database includes 1,135 Au assays from within the modelled wireframes. Drill core sample lengths vary between 0.01 and 4.06 metres but were generally 1.0 metres (average 0.85 metres). All assays were composited to a "best fit" 1m for use in the interpolation. No topcutting was employed.
The mineralisation was divided into three domains: Main Lode, Offset Lode and Top Lode. Wireframe models were delineated using a gold cut-off grade of 0.5 g/t Au. The mineral resource was calculated using block modelling to a maximum vertical depth of 220 metres, made up of 10m x 10m x 10m blocks (x:y:z) constrained by the modelled wireframe. Sub-blocks of 5m x 5m x variable (z) were created to better outline the mineralised lodes.
To account for undulations in the topography of the Lodes, Golders employed an "unfold" strategy using Datamine's UNFOLD technology. Composite samples are "unfolded" and all subsequent data manipulation, including variography and estimation is performed in the transformed coordinate system.
Block grades were interpolated using a three pass, ordinary kriging estimate for the three lodes. For the Main Lode the minimum number of samples was 12, and the maximum 32, with a maximum of 5 samples permitted from one hole. For the Offset and Top Lodes the minimum number of samples was 7 and the maximum 32, with a maximum of 5 samples permitted from one hole (maximum of 4 for the third pass). The dimensions of the search ellipses were as follows:
| Interpolation pass |
X |
Y |
Z |
| First pass |
40m |
50m |
10m |
| Second pass |
80m |
100m |
20m |
| Third pass |
200m |
250m |
50m |
Bulk density of the mineralisation was based on actual specific gravity data collected during exploration. A total of 227 recent density determinations from within the mineralised rock as defined by the wireframe model, were used in establishing an average bulk density of 2.69 tonnes/m3. Specific gravity of the blocks was estimated using inverse distance for the Main, Offset and Top Lodes.
Indicated mineral resources are defined as those portions of the deposit estimated in the first estimation pass, using only Belvedere samples, and using more than 15 samples. Inferred mineral resources are defined as those portions of the deposit outside of the indicated resources and contained within the mineralised wireframes. Indicated resources are separate from Inferred resources.
Kiimlala Mineral Resource Statement:
The mineral resource estimate for �ngesneva (K1) is effective from 29th September 2011 and has been prepared under the supervision of Dr Hannu Makkonen, (EurGeol, PhD) of the Geological Survey of Finland (GTK) acting as an independent "Qualified Person" as defined by National Instrument 43-101. Dr Makkonen belongs to the Geological Society of Finland and the Finnish Association of Mining and Metallurgical Engineers, and holds the European Geologist Title, EurGeol, no. 808. Mineral resources of the �ngesneva gold deposit have been prepared and categorised following the guidelines of the JORC Code.
The �ngesneva (K1) database includes 69 Diamond drillholes totalling 9,167.71 metres drilled between 1988 and 2010. The database includes 4,442 Au assays. Drill core sample lengths vary between 0.08 and 4.4 metres but were generally about 1.0 metres (average 1.19 metres). All assays were composited to 1.5 m for use in the interpolation.
The mineralization was modeled as one domain. A wireframe was constructed based on a 0.5 g/t Au cut-off grade, permitting the inclusion of up to 7m waste. The mineral resource was calculated using block modeling to a maximum vertical depth of approximately 250 meters (Z=-160), made up of 10m x 10m x 2m blocks constrained by the modeled wireframe. The block model was rotated to an azimuth of 030� to better fit the geometry of the body.
Block grades were interpolated using 3 concentric search ellipses using ordinary Kriging with a minimum of 3 and a maximum of 25 samples. The first search ellipse had a maximum range of 26m (being 2/3 the range determined by variography), the second was 52m, and the final 104m. 8.6% of blocks were populated in the 1st pass, 63.6% in the 2nd pass and the remainder of 27.7% populated in the 3rd pass.
Bulk density of the mineralisation was based on actual specific gravity data collected during exploration. A total of 285 measurements were taken from within the modelled mineralised zone, giving an average bulk density of 2.83 tonnes/m3.
About Investor Cubed
Investor Cubed Inc. provides specialized investor relations and business consulting services to a select group of leading emerging and mid-capitalization public companies. Investor Cubed has an established national network of financial industry professionals including investment advisors, bank owned investment dealers and leading independent financial firms. In addition, ICI introduces and manages national online and off-line marketing initiatives.
Forward Looking Statement:
Some of the statements contained herein may be forward-looking statement, which involve known and unknown risks and uncertainties. Without limitation, statements regarding future plans and objectives of the Company (including statements relating to future drill results) are forward-looking statements that involve various degrees of risk. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements.
Qualified Person
This news release was reviewed by Hannu Makkonen, Ph.D., EurGeol and Alexandra Akyurek, Qualified Persons for both REBgold and Belvedere in compliance with National Instrument 43-101 with respect to this release.
REBgold PROFILE
REBgold is in the process of acquiring and developing economic interests in gold assets, in particular, where it can utilize its competitive advantages, to create shareholder value.
The Company's key competitive advantages include an experienced board and management team, strategic investor backing and proprietary technology. The Company's bacterial oxidation and bioleaching technologies are commercially proven for the liberation of precious metals from difficult-to-treat sulphide ores and concentrates, with environmental and economic benefits. To date, the Company's BACOX technology has been used at three gold mines located in Western Australia, Tasmania and China.
For further information contact:
EJ Spencer
REBgold Corporation
Corporate and Investor Relations Administrator
416-646-1850 X 242
Investor Cubed Inc.
647-258-3311 or toll-free 888-258-3323
info@investor3.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright � 2011 REBGOLD CORPORATION (RBG) All rights reserved. For more information visit our website at http://www.reb-gold.com/ or send email to info@reb-gold.com ..
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