Olympus Announces Increased Gold Equivalent
Resource Of 833,500
Oz. At Bong Mieu
HIGHLIGHTS
- An upgrade of Resources at Bong Mieu East has increased total
gold Resources at the Bong Mieu Project area to 664,500 ounces.
This figure rises to 833,500 ounces when the gold
equivalent value of tungsten in the Bong Mieu East deposit is
included.
- A fully funded US$ 8 million Budget has been approved by the
Board of Olympus Pacific for a Preliminary Feasibility Study to
determine the viability of a 100,000 ounce
per year treatment plant to be undertaken in parallel with a Resource
and Exploration drilling program totalling 12,000 meters
over the next 18 months.
- The Bong Mieu drilling program will target reserves and
resources totalling between 2.5 and 3.5 million tonnes averaging 5 to
6 g/t Au adding some 400,000 to 675,000 ounces
to the Resource base by mid-2009.
Toronto, October 9, 2007 -
Olympus Pacific Minerals Inc. (TSX: OYM) is pleased to report significant
increases to the mineral resource at the Bong Mieu Gold Property as
outlined in a Technical Report prepared by Terra Mining Consultants and
Stevens & Associates ("TMC/SA") The full text of the report
is available on the Olympus and Sedar websites: (www.olympuspacific.com) (www.sedar.com)
TMC/SA reviewed planned
exploration and development programs and agreed that the projects have
merit and justify the programs and levels of projected expenditure.
TMC/SA recommended that a
preliminary feasibility study be undertaken to review the three gold
deposits at the Bong Mieu Project in their entirety to evaluate the
development of a larger gold processing plant capable of producing
approximately 100,000
oz of gold annually.
The Bong Mieu property is
located in the southeast corner of Quang Nam Province of central Vietnam,
some 70 km
south of the port city of Danang and 20 km southwest of the provincial capital
Tam Ky. The property hosts four known gold deposits - Ho Gan, Ho Ray, Thac
Trang and Nui Kem.
Bong Mieu Underground
At Nui Kem, Olympus is
developing a decline to access levels below the old mine, a hanging wall
drive will be developed for exploration drilling. Further exploration drill
holes are planned which will determine the extent and value of the
resource.
Bong Mieu East
The TMC/SA report focuses on
the Ho Ray / Thac Trang (Bong Mieu East) gold/tungsten/fluorine deposit and
provided an update on the Ho Gan gold deposit. TMC/SA audited the Mineral
Resource estimate for the Ho Ray and Thac Trang deposits prepared by
Olympus and validated the resulting block model tonnages and grades. TMC/SA
classified the Resources using the CIMM standards as required by NI 43-101.
- Measured and Indicated Resource categories at Bong Mieu East
are increased to 129,300 ounces gold (Measured
Resources 46,100
ounces and Indicated Resources 83,200 ounces)
Inferred Resources total 86,200 ounces gold.
- The tungsten content of the Resource has been estimated for the
first time. Tungsten Measured and Indicated Resources are 1.98 million
kg (Measured Resources 0.78 million kg and Indicated Resources 1.20
million kg). Inferred
Resources are estimated at 1.77 million kg.
- Using values of US$250/MTU for tungsten and US$700/oz. for
gold, the value of the tungsten in the Bong Mieu East Resource is
equivalent to a further 169,000 ounces. (One MTU contains 7.93kg
tungsten as WO3)
The TMC/SA report reviews and
compares historical resource estimates, estimation methodology and
comparative estimates while detailing the methodology used to make the
Resource Estimates summarized in Tables 1 and 2 (below).
The Ho Ray, Thac Trang and
combined Bong Mieu East Mineral Resource estimates are shown in Tables 1, 2
and 3. The gold resource estimates are based on a 0.5 g/t Au cut-off and 10
g/t Au top cut.
|
Ho Ray
|
Thac Trang
|
Combined
|
Category
|
Tonnes (t)
|
Au (g/t)
|
Tonnes (t)
|
Au (g/t)
|
Tonnes (t)
|
Au (g/t)
|
Measured
|
508,300
|
2.25
|
118,600
|
2.47
|
626,900
|
2.29
|
Indicated
|
968,900
|
2.09
|
354,400
|
1.59
|
1,323,300
|
1.95
|
Measured + Indicated
|
1,477,200
|
2.14
|
473,000
|
1.81
|
1,950,200
|
2.06
|
Inferred
|
1,063,800
|
1.47
|
809,400
|
1.38
|
1,873,200
|
1.43
|
Table 1 Bong Mieu East: Measured, Indicated and
Inferred Gold Mineral Resources
|
Ho Ray
|
Thac Trang
|
Combined
|
|
|
|
|
|
|
|
Category
|
Tonnes (t)
|
Au (g/t)
|
Tonnes (t)
|
Au (g/t)
|
Tonnes (t)
|
Au (g/t)
|
Measured
|
434,400
|
1,749
|
94,100
|
246
|
528,500
|
1,481
|
Indicated
|
809,600
|
1,413
|
232,300
|
230
|
1,041,900
|
1,150
|
Measured + Indicated
|
1,244,000
|
1,530
|
326,400
|
235
|
1,570,400
|
1,261
|
Inferred
|
1,305,500
|
1,104
|
958,500
|
342
|
2,264,000
|
782
|
Table 2 Bong Mieu East: Measured, Indicated and
Inferred Tungsten Mineral Resources
Data
Analysis and Resource Calculation Methodology
The
statistical analyses and block model calculation methodology used in the
TMC/SA report are detailed on pages 105 to 145 of that report.
- In the Ho Ray and Thac
Trang deposits top cut values for gold, tungsten and fluorine were 10
g/t Au, 10,000 ppm W and 4.5% F were applied. No lower cut-off was
applied to tungsten and fluorine data whilst a 0.5 g/t cut-off was
used for gold.
- Densities used for
calculating tonnage were 1.97 g/ccm in oxide material and 2.81 g/ccc
for sulphide ores.
- Block models were created
in Gemcom. The mineralised zone wireframes were filled with 2m x 2m x
1m model cells.
Olympus,
as first mover in Vietnam, is positioned to become a leading gold explorer
and producer in Southeast Asia. Olympus is committed to its vision of
making major discoveries in the region and increasing shareholder wealth.
For further information contact:
David Seton, Executive Chairman
Jim Hamilton, Corporate Communications
T: (416) 572-2525 or TF: 1-888-902-5522
or F: (416) 572-4202
Unless
otherwise noted, the technical information in this release has been
prepared by and/or reviewed by Mr. TRP (Rod) Jones, Vice-President
Exploration for Olympus Pacific Minerals Inc, who is a Qualified Person as
defined by National Instrument 43-101.
Statements
contained in this release that are not historical facts are forward-looking
statements which involve risk and uncertainties, which could cause actual
results to differ materially from those expressed in the forward-looking
statements. The Company relies upon litigation protection for
forward-looking statements.
OLYMPUS
FOFI DISCLAIMER
Certain of the statements made and information contained herein is
forward-looking information within the meaning of the Ontario Securities
Act, including statements concerning our plans at our Vietnamese mineral
projects, which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of
the Company, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking information.
Forward-looking
information is subject to a variety of risks and uncertainties which could
cause actual events or results to differ from those reflected in the
forward-looking information, including, without limitation, failure to
establish estimated resources or to convert resources to mineable reserves;
the grade and recovery of ore which is mined varying from estimates;
capital and operating costs varying significantly from estimates; delays in
obtaining or failure to obtain required governmental, environmental or
other project approvals; changes in national and local government
legislation or regulations regarding environmental factors, royalties,
taxation or foreign investment; political or economic instability;
terrorism; inflation; changes in currency exchange rates; fluctuations in
commodity prices; delays in the development of projects; shortage of
personnel with the requisite knowledge and skills to design and execute
exploration and development programs; difficulties in arranging contracts
for drilling and other exploration and development services; dependency on
equity market financings to fund programs and maintain and develop mineral
properties; risks associated with title to resource properties due to the
difficulties of determining the validity of certain claims and other risks
and uncertainties, including those described in each management discussion
and analysis. In addition, forward-looking information is based on various
assumptions including, without limitation, the expectations and beliefs of
management; the assumed long-term price of gold; the availability of
permits and surface rights; access to financing, equipment and labour and
that the political environment within Vietnam will continue to support the
development of environmentally safe mining projects. Should one or more of
these risks and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those described in
forward-looking statements. Accordingly, readers are advised not to place
undue reliance on forward-looking information. Except as required under
applicable securities legislation, the Company undertakes no obligation to
publicly update or revise forward-looking information, whether as a result
of new information, future events or otherwise.