PEAK GOLD ANNOUNCES FILING OF
AMAPARI TECHNICAL REPORT; SEPTEMBER 30, 2007 RESERVE AND RESOURCE UPDATE
(All figures are in US dollars unless stated otherwise)
Vancouver, British Columbia, November 15, 2007 � Peak Gold Ltd.
(PIK:TSX-V) (�Peak Gold�) is pleased to announce that it has filed an
independent technical report for its Minera��o Pedra Branca do Amapari gold
mine (the �Amapari Mine�) in Brazil which was prepared by Mine and Quarry
Engineering Services, Inc. (�MQes�), AMEC International (Chile) S.A. (�AMEC�)
and NCL Brasil Ltda. (�NCL�). This technical report is available on SEDAR at www.sedar.com.
The Proven and Probable Mineral Reserve Estimate as of September 30, 2007 is
3.806 million tonnes at 2.47 grams gold per tonne or 302,100 contained ounces
of gold.
On October 19, 2007, Peak Gold reported that Measured and Indicated Mineral
Resources estimated as of September 30, 2007 were 1.047 million contained
ounces of gold compared to 1.156 million contained ounces of gold estimated as
of December 31, 2006. In addition, the Inferred Mineral Resources have increased
to 1.351 million contained ounces of gold estimated as of September 30, 2007
compared to 0.152 million contained ounces of gold estimated as of December 31,
2006. The increase of approximately 1.2 million contained ounces of gold in the
Inferred Mineral Resource category is largely attributable to the Urucum and
Tapereba AB deposits.
The Measured, Indicated and Inferred Mineral Resources are shown in the
following table.
Measured, Indicated and Inferred
Mineral Resources
(inclusive of Mineral Reserves)
as of September 30, 2007 (1)(2)(3)(4)(5)(6)
(1) The Mineral
Resources are classified as Measured, Indicated and Inferred based on the
current (2004) version of the Australasian Code for Reporting of Mineral
Resources and Ore Reserves (the �JORC Code�). The JORC Code has been accepted
for current disclosure rules in Canada under National Instrument 43-101 (�NI
43-101�).
(2) Based on a gold price of US$600 per ounce.
(3) Based on a cut-off grade of 0.5 grams per tonne for the open pit and 2.1
grams per tonne for the underground mineralization.
(4) Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
(5) The Mineral Resources as set out the table above have been estimated by
Emmanuel Henry, Member of the AusIMM (CP) from AMEC, who is a Qualified Person
under NI 43-101 and a competent person under the JORC Code.
(6) Represents the Mineral Resource (including Inferred material) including
that portion of the resource that, together with dilution, comprises the
Mineral Reserves.
The Proven and Probable Mineral Reserves are shown in the following table.
Proven and Probable Mineral
Reserves
as of September 30, 2007 (1)(2)(3)(4)
(1) The Mineral
Reserves are classified as Proven and Probable based on the JORC Code. The JORC
Code has been accepted for current disclosure rules in Canada under NI 43-101.
(2) Based on a gold price of US$575 per ounce.
(3) Based on a cut-off grade of 1.1 grams per tonne.
(4) The Mineral Reserves as set out in the table above have been estimated by
Carlos Guzm�n of NCL, who is a Qualified Person under NI 43-101 and a competent
person under the JORC Code.
A mine plan was developed for the Amapari Mine to leach approximately 2.3
million tonnes of oxide ore per year from October 2007 onwards. The open pit
mine operates with excavators with capacities of 4.3 and 15.0 cubic metres and
trucks with capacities of 35 and 100 tonnes. The mixed fleet of equipment gives
enough flexibility for the ore to be mined with the smaller equipment and high
productivity for waste to be mined with the bigger equipment.
The year-to-date operating costs as of August 31, 2007 are $26.40 per tonne.
The Amapari Mine has current plans to reduce operating costs by approximately
$6.2 million per year. The exchange rate which was used in preparation for the
estimate was 1.90 Brazilian Real to the US Dollar.
The reported metallurgical recoveries show a continued improvement between
December 2005 and January 2007. Since then, however, the recoveries have
decreased due to issues including ratios of saprolite and colluvium ore types
and periods of high rainfall. The current budgeted metallurgical recovery for
the project is 69.6% gold. The year-to-date gold recovery up to August 2007 is
reported as 68.8%.
The updated resource block model utilized additional geological and drilling
data collected during 2006 and early 2007. The effective date of the database
is April 30, 2007. This included 17,568 metres of diamond drilling and enhanced
geological information made available by 20 months of mining operations, which
included data from 113,600 grade control samples.
The method of estimation used was ordinary kriging. Reserve depletion from
production at the Amapari Mine from January 1, 2007 to September 30, 2007 was
1.915 million tonnes at 2.00 grams of gold per tonne for a total of 123,997
ounces of gold.
The geological model was prepared under the supervision of Trevor Jones, MAIG
at the Amapari Mine. The Mineral Resource Estimate was prepared under the
supervision of Emmanuel Henry, Member of the AusIMM (CP) from AMEC, who is a
Qualified Person under NI 43-101. Mr. Henry has reviewed and approved the above
resource statement. The Mineral Reserve Estimate was prepared by Carlos Guzm�n,
Ing. Civil de Minas, Member of the AusIMM from NCL, who is a qualified person
under NI 43-101. Mr. Guzm�n has reviewed and approved the above reserve
statement.
�We are excited by the growth opportunity at Amapari and are confident that we
will deliver on key strategies to reduce cash cost, extend the mine life, and
create greater shareholder value,� said President and Chief Executive Officer
of Peak Gold, Julio Carvalho.
Peak Gold is a new intermediate gold producer with a strong foundation for
growth. To learn more about us, please visit our website at www.peakgold.com.
The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This News Release contains �forward looking
statements�, within the meaning of applicable Canadian Securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to the
future price of gold and copper, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and amount
of estimated future production, costs of production, capital expenditures,
costs and timing of the development of new deposits, success of exploration
activities, permitting time lines, currency exchange rate fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. Generally, these
forward looking statements can be identified by the use of forward-looking
terminology such as �plans�, �expects�, or �does not expect�, �is expected�,
�budget�, �scheduled�, �estimates�, �forecasts�, �intends�, �anticipates�, or
�does not anticipate�, or �believes�, or variations of such words and phrases
or state that certain actions, events or results �may�, �could�, �would�,
�might� or �will� or �will be taken�, �occur� or �be achieved�. Forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of
Peak Gold to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related to the
integration of acquisitions; risks related to international operations; actual
results of current exploration activities; actual results of current
reclamation activities; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of gold and copper;
possible variations in ore reserves, grade or recovery rates; failure of plant;
equipment or processes to operate as anticipated; accidents; labor disputes and
other risks of the mining industry; delays in obtaining governmental approvals
or financing or in the completion of development or construction activities, as
well as those factors discussed in the section entitled �Risk Factors� in Peak
Gold�s Filing Statement dated April 2, 2007, available at www.sedar.com.
Although Peak Gold has attempted to identify important factors that would cause
actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as
anticipated, estimated, or intended. There can be no assurance that such
statements will prove to be accurate. As actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements that are
incorporated by reference herein, except in accordance with applicable
securities laws.
CAUTIONARY NOTE REGARDING RESERVES AND RESOURCES
Readers should
refer to continuous disclosure documents filed by Peak Gold since April 3, 2007
available at www.sedar.com , for further information on mineral reserves and
resources, which is subject to the qualifications and notes set forth therein.
For further information, please contact:
Investor Relations, Vanguard Shareholder Solutions
Tel: 1.866.398.1088 or 604.608.0824
Email: ir@vanguardsolutions.ca
Peak Gold
Vanguard Shareholder Solutions
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