| September 8, 2008 |
| X-Cal Resources Ltd.: Mineral Resources and Inventory, Sleeper Gold Property, Nevada |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2008) - X-Cal (TSX:XCL) has received an independent resource calculation and mineral inventory from Giroux Consultants Limited of Vancouver, BC for the Sleeper Gold Property (100% X-Cal), located in Humboldt County, Nevada.
A comprehensive NI-43-101 technical report authored by Gary H. Giroux MA.Sc., P.Eng and co-authored by Larry Kornze P.Eng and Larry G. Martin CPG is pending and will be published within 45 days of this release.
The new block model for Sleeper has confirmed the mineralized layers described in the 2007 X-Cal Resources Ltd. Annual Report.
The in-ground resources for the project are located in the Facilities Area, east of the Sleeper Pit and in the West Wood Area, south west of the pit, in the mine site area of the Property. The database provided for the Sleeper resource estimate includes a total of 4,131 drill holes. Facilities contains 1,891 drill holes totaling 242,016 m. West Wood contains 437 drill holes totaling 85,194 m.
The Sleeper Gold Property area is situated within the western, apparently older, part of the Northern Nevada Rift geologic province of Miocene age, along the western flank of the Slumbering Hills. Drilling completed in 2007 has led to a new geologic interpretation of mineralization at Sleeper. Meticulous logging of the drill holes identified cobbles and occasional boulders of altered vesicular basalt supported by a matrix of cryptocrystalline volcanic ash. Further inspection identified other volcanic clasts of various lithologies supported by the ash matrix. A "block in ash" texture had been identified and the wide spread occurrence of the volcanic breccia throughout the Facilities area was referred to as a volcanic unit given the name "debris flow". The debris flow is the primary host lithology for precious metals mineralization identified at the Facilities area. Thickness of the debris flow ranges from 100 feet (30m) to 500 feet (150m). Ash layers that are interbedded within the debris flow are not mineralized but do exhibit advanced argillic alteration. The ash units range in thickness from 5 feet (1.5m) to 20 feet (6m). The debris flow dips westerly towards the existing open pit and has been identified in core at West Wood. The banded veins with visible gold (electrum) and the higher grade sulfide breccias of West Wood are developed within the debris flow. The lower grade mineralization of West Wood favors the debris flow and is similar to mineralization found at the Facilities area.
A resource estimate was commissioned by X-Cal in 2008 to determine the resource contained within the Facilities area east of the Sleeper pit and the West Wood area south west of the pit. This estimate used all available drill hole information and the current revised geologic interpretation. The Facilities area was subdivided into three geologic domains: a debris flow, tuff units and Mesozoic basement. The West Wood area was subdivided in a debris flow, tuff units and West Wood breccia unit. Examination of gold and silver grade distributions within these domains indicated a higher grade vein population in each unit and a background mineralization.
Thresholds were established in each domain to separate these different styles of mineralization. Capping levels were established for each style of mineralization in each domain. Semivariograms were used to establish directions and distances of grade continuity within each domain. Grades were estimated, for blocks 10 x 10 x 5 m in dimension, by a combination of indicator and ordinary kriging. Estimated blocks were classified as indicated or inferred based on grade continuity. The in-ground resource present at Sleeper is summarized at 0.40 g/t Au cutoff (see Table 1).
Above-ground material, containing gold and silver located in the heap leach pads and tailings at Sleeper has also been classified as resource (see Table 2).
A preliminary economic assessment has been recommended for the project, which will likely focus on the potential of higher grade "in-ground" resources and already mined "above-ground" precious metals at Sleeper, which are summarized in Table 1 and Table 2.
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Table 1: SUMMARY OF IN-GROUND RESOURCE - SLEEPER PROJECT
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Au Cutoff Au Ag
Classification (g/t) Tonnes (g/t) (g/t) Ozs Au Ozs Ag
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Indicated 0.40 26,960,000 0.87 5.80 750,000 5,030,000
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Inferred 0.40 20,000,000 0.59 6.60 380,000 4,240,000
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Table 2: ABOVE-GROUND INFERRED RESOURCE LOCATED IN THE HEAPS
AND TAILS - SLEEPER PROJECT
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Average Average
Tons Grade Au Grade Ag
AREA Placed tonnes Au Ounces Ag Ounces
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Au Ag
Au Au Remain- Ag Ag Remain-
(oz/t) (g/t) ing (oz/t) (g/t) ing
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Pad 1 7,595,860 6,890,919 0.015 0.501 110,935
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Pad 2 5,981,701 5,426,564 0.012 0.411 71,646
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Pad 3 12,581,794 11,414,129 0.012 0.417 152,932
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Pad 4 9,084,620 8,241,513 0.012 0.419 111,046
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ROM South 4,127,400 3,744,353 0.010 0.337 40,584
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ROM North 9,484,900 8,604,645 0.010 0.347 96,110
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Total 48,856,275 44,322,122 0.012 0.409 583,254 0.026 0.877 1,249,983
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Mill 6,600,000 5,987,481 0.020 0.679 130,666 0.224 7.671 1,476,748
Tailings
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TOTAL 55,456,275 50,309,603 0.013 0.441 713,920 0.049 1.686 2,726,731
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Table 1 and table 2 summarize the current Sleeper Resource.
In-Ground MINERAL INVENTORY: Table 3 and 4
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Table 3: SLEEPER ALL BLOCKS CLASSED INDICATED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
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(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 84,310,000 0.465 4.89 1,260,000 13,260,000
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0.30 45,470,000 0.654 5.38 960,000 7,870,000
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0.40 26,960,000 0.868 5.80 750,000 5,030,000
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0.50 18,040,000 1.077 6.39 620,000 3,710,000
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0.60 13,250,000 1.269 7.01 540,000 2,990,000
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0.70 10,230,000 1.453 7.67 480,000 2,520,000
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0.80 8,000,000 1.650 8.40 420,000 2,160,000
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0.90 6,340,000 1.859 8.84 380,000 1,801,000
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1.00 5,190,000 2.062 9.47 340,000 1,581,000
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1.10 4,320,000 2.266 10.16 315,000 1,411,000
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1.20 3,670,000 2.466 10.82 291,000 1,277,000
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1.30 3,250,000 2.623 11.27 274,000 1,178,000
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1.40 2,860,000 2.796 11.75 257,000 1,081,000
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1.50 2,550,000 2.961 12.00 243,000 984,000
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1.60 2,290,000 3.123 12.22 230,000 900,000
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1.70 2,040,000 3.301 12.70 217,000 833,000
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1.80 1,830,000 3.479 13.19 205,000 776,300
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1.90 1,660,000 3.650 13.52 195,000 721,500
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2.00 1,510,000 3.812 13.90 185,000 674,600
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Table 4: SLEEPER ALL BLOCKS CLASSED INFERRED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
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(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 117,710,000 0.328 5.68 1,240,000 21,480,000
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0.30 50,600,000 0.437 6.17 710,000 10,040,000
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0.40 20,000,000 0.587 6.60 380,000 4,240,000
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0.50 8,820,000 0.770 7.46 220,000 2,110,000
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0.60 4,950,000 0.949 7.39 150,000 1,180,000
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0.70 2,960,000 1.152 7.68 110,000 730,000
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0.80 1,560,000 1.520 7.87 80,000 390,000
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0.90 1,010,000 1.893 7.42 60,000 241,000
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1.00 810,000 2.129 6.22 60,000 162,000
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1.10 710,000 2.277 6.02 52,000 138,000
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1.20 630,000 2.428 6.32 49,000 128,000
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1.30 570,000 2.552 6.65 47,000 122,000
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1.40 510,000 2.684 7.04 44,000 115,000
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1.50 480,000 2.765 7.26 43,000 112,000
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1.60 430,000 2.902 7.42 40,000 103,000
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1.70 390,000 3.047 7.35 38,000 92,000
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1.80 360,000 3.161 7.55 37,000 87,300
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1.90 340,000 3.234 7.70 35,000 84,100
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2.00 310,000 3.324 7.60 33,000 75,800
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The overall mineral inventory figures for the Sleeper Gold Property are contained in Table 2, Table 3 and Table 4, consisting of in-ground indicated and in-ground inferred resource, in combination with the above-ground inferred resource.
SUMMARY
The Sleeper resource merits preliminary economic assessment.
The attached graphics should assist with visualization of the Sleeper Gold and Silver Resource.
The pending NI-43-101 technical report will provide additional detail on the methods of calculation, quality control and references.
The pending report also documents the Sleeper mineral system, priority drill targets and includes comprehensive information as required by NI-43-101. The resource occurs within a portion of the 30 square mile district scale property.
A detailed breakdown of the in-ground resource is provided as "Schedule A" to this release.
The contents of this release have been reviewed by Gary H. Giroux, who is an independent resource estimate consultant, Larry Kornze P.Eng and Larry G. Martin CPG, who are "Qualified Persons" as defined by NI-43-101. Mr. Kornze is a director of X-Cal and Mr. Martin is X-Cal's Senior Geologist.
Quality control and data verification consistent with good industry practice, including use of accredited labs for assays, insertion of standards and check assays have been completed and are documented in detail in the pending NI-43-101 technical report. Drill data attributable to Amax and Placer Dome, which preceded NI-43-101, does not have documentation for sample preparation, bagging, security, and transportation practices. However, summary data sheets and summary reports prepared by these companies and by the analytical labs are available.
Caution Concerning Forward-Looking Statements
This release and related documents may contain certain "forward-looking statements" including, but not limited to, statements relating to interpretation of drilling results and potential mineralization, future exploration work at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project and the expected results of this work. Forward looking statements are statements that are not historical facts and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project; uncertainties involved in the interpretation of drilling results and other tests; the possibility that required permits may not be obtained in a timely manner or at all; risk of accidents, equipment breakdowns or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the exploration operations at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project. Forward-looking statements contained in this release and related documents are based on the beliefs, estimates and opinions of management on the date the statements are made. There can be no assurance that such statements will prove accurate. Actual results may differ materially from those anticipated or projected. X-Cal Resources Ltd. and X-Cal USA, Inc. undertake no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
(1) Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources: This press release uses the terms "measured", "indicated" and "inferred" "resources". We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.
To view the Sleeper Gold Project Mine Site Area, Sleeper Gold Resource Illustration and Sleeper Silver Resource Illustation please click on the following link: http://media3.marketwire.com/docs/xcl98ms2.pdf.
SCHEDULE A:
The Sleeper Mineral Inventory consists of all blocks classified indicated and inferred and the above-ground inferred resource in the heap leach pads and tailings.
A detailed description of the above-ground resource will be provided as an appendix in the pending NI-43-101 technical report.
Definitions of the various resource categories are also contained in the pending technical report.
The in-ground resource can be subdivided into the two principal zones: "Facilities" which might be extractable by open pit methods and "West Wood" which would likely require underground methods:
FACILITIES
(ALL BLOCKS CLASSED INDICATED AND INFERRED)
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FACILITIES ALL BLOCKS CLASSED INDICATED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
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(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 49,210,000 0.355 6.077 560,000 9,610,000
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0.30 21,460,000 0.501 7.053 350,000 4,870,000
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0.40 10,000,000 0.686 7.835 220,000 2,520,000
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0.50 5,740,000 0.866 8.392 160,000 1,550,000
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0.60 3,610,000 1.055 9.010 120,000 1,050,000
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0.70 2,470,000 1.245 9.709 100,000 770,000
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0.80 1,800,000 1.430 10.054 80,000 580,000
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0.90 1,210,000 1.714 9.722 70,000 378,000
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1.00 920,000 1.952 9.703 60,000 287,000
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FACILITIES ALL BLOCKS CLASSED INFERRED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
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(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 113,890,000 0.330 5.801 1,210,000 21,240,000
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0.30 49,770,000 0.437 6.239 700,000 9,980,000
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0.40 19,600,000 0.587 6.682 370,000 4,210,000
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0.50 8,620,000 0.772 7.576 210,000 2,100,000
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0.60 4,820,000 0.954 7.530 150,000 1,170,000
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0.70 2,930,000 1.154 7.748 110,000 730,000
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0.80 1,540,000 1.525 7.954 80,000 390,000
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0.90 1,000,000 1.898 7.485 60,000 241,000
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1.00 800,000 2.137 6.274 50,000 161,000
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WEST WOOD
(ALL BLOCKS CLASSED INDICATED AND INFERRED)
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WEST WOOD ALL BLOCKS CLASSED INDICATED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
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(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 35,100,000 0.618 3.229 700,000 3,640,000
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0.30 24,000,000 0.790 3.888 610,000 3,000,000
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0.40 16,960,000 0.975 4.607 530,000 2,510,000
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0.50 12,290,000 1.176 5.456 460,000 2,160,000
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0.60 9,640,000 1.349 6.261 420,000 1,940,000
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0.70 7,770,000 1.519 7.021 380,000 1,750,000
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0.80 6,200,000 1.714 7.926 340,000 1,580,000
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0.90 5,130,000 1.894 8.626 310,000 1,423,000
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1.00 4,270,000 2.086 9.423 290,000 1,294,000
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1.50 2,090,000 3.013 12.868 202,000 865,000
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2.00 1,200,000 3.977 15.674 153,000 604,700
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2.50 780,000 4.925 17.962 124,000 450,400
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3.00 600,000 5.572 18.574 107,000 358,300
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3.50 470,000 6.222 19.241 94,000 290,700
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4.00 390,000 6.743 21.558 85,000 270,300
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WEST WOOD ALL BLOCKS CLASSED INFERRED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
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(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 3,820,000 0.280 2.003 30,000 250,000
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0.30 830,000 0.446 2.062 10,000 60,000
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0.40 390,000 0.563 2.311 10,000 30,000
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0.50 200,000 0.674 2.373 4,300 15,300
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0.60 130,000 0.744 2.264 3,100 9,500
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0.70 40,000 1.017 2.088 1,300 2,700
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0.80 20,000 1.194 2.070 800 1,300
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0.90 13,000 1.452 2.004 600 800
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1.00 11,000 1.524 1.988 500 700
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1.50 2,700 3.025 0.290 260 30
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2.00 2,700 3.025 0.290 260 30
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2.50 1,300 4.001 0.370 170 20
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3.00 1,300 4.001 0.370 170 20
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The resource figures can be further divided and tabulated with respect to the oxide/sulphide boundary:
FACILITIES-OXIDE RESOURCE (INDICATED and INFERRED)
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FACILITIES - OXIDE RESOURCE
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FACILITIES ALL OXIDE BLOCKS CLASSED INDICATED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
--------------------------------------------------------------------------
(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 9,660,000 0.349 5.226 110,000 1,620,000
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0.30 4,160,000 0.492 6.770 70,000 910,000
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0.40 2,110,000 0.637 8.187 40,000 560,000
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0.50 1,190,000 0.789 8.870 30,000 340,000
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0.60 710,000 0.949 9.054 20,000 210,000
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0.70 440,000 1.134 9.939 20,000 140,000
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0.80 310,000 1.309 11.167 10,000 110,000
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0.90 230,000 1.472 10.998 10,000 81,000
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1.00 170,000 1.637 11.339 10,000 62,000
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FACILITIES ALL OXIDE BLOCKS CLASSED INFERRED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
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(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 20,670,000 0.344 5.525 230,000 3,670,000
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0.30 9,760,000 0.454 6.613 140,000 2,080,000
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0.40 4,280,000 0.596 8.122 80,000 1,120,000
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0.50 1,910,000 0.786 10.205 50,000 630,000
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0.60 930,000 1.041 11.629 30,000 350,000
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0.70 470,000 1.433 13.011 20,000 200,000
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0.80 280,000 1.897 14.528 20,000 130,000
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0.90 220,000 2.199 12.626 20,000 89,000
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1.00 170,000 2.574 8.867 10,000 48,000
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SULPHIDE RESOURCE INDICATED AND INFERRED
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FACILITIES AND WEST WOOD - SULPHIDE RESOURCE
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FACILITIES AND WEST WOOD ALL SULPHIDE BLOCKS CLASSED INDICATED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
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(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
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0.20 74,650,000 0.480 4.848 1,150,000 11,640,000
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0.30 41,310,000 0.670 5.242 890,000 6,960,000
--------------------------------------------------------------------------
0.40 24,850,000 0.887 5.602 710,000 4,480,000
--------------------------------------------------------------------------
0.50 16,850,000 1.097 6.216 590,000 3,370,000
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0.60 12,540,000 1.287 6.894 520,000 2,780,000
--------------------------------------------------------------------------
0.70 9,790,000 1.467 7.566 460,000 2,380,000
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0.80 7,690,000 1.664 8.294 410,000 2,050,000
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0.90 6,120,000 1.874 8.755 370,000 1,723,000
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1.00 5,020,000 2.077 9.409 340,000 1,519,000
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FACILITIES AND WEST WOOD ALL SULPHIDE BLOCKS CLASSED INFERRED
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Tonnes
Au greater
Cutoff than Cutoff Grade greater than Cutoff
--------------------------------------------------------------------------
(g/t) (tonnes) Au (g/t) Ag (g/t) Ounces Au Ounces Ag
--------------------------------------------------------------------------
0.20 97,040,000 0.324 5.710 1,010,000 17,810,000
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0.30 40,840,000 0.433 6.065 570,000 7,960,000
--------------------------------------------------------------------------
0.40 15,720,000 0.584 6.180 300,000 3,120,000
--------------------------------------------------------------------------
0.50 6,910,000 0.765 6.698 170,000 1,490,000
--------------------------------------------------------------------------
0.60 4,010,000 0.927 6.406 120,000 830,000
--------------------------------------------------------------------------
0.70 2,490,000 1.099 6.670 90,000 530,000
--------------------------------------------------------------------------
0.80 1,280,000 1.437 6.404 60,000 260,000
--------------------------------------------------------------------------
0.90 790,000 1.808 5.976 50,000 152,000
--------------------------------------------------------------------------
1.00 640,000 2.012 5.515 40,000 113,000
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ABOVE-GROUND INFERRED RESOURCE
Table # 2 of the press release describes the above-ground inferred resource. The portion of the above-ground resource which is contained in the heap leach pads at Sleeper is believed to be largely oxide material, further metallurgical work will be required to confirm the oxide content of the heaps.
The preliminary economic assessment will likely focus on the potential for renewed heap leach operations at Sleeper using all ready mined material located in the heap leach pads in combination with material from the adjacent Facilities area.
MINERAL INVENTORY
The complete mineral inventory for Sleeper is contained in Table #2, Table # 3 and Table # 4 of the press release. Investors are cautioned that the inventory does not imply economics and is presented for the purpose of guiding on going work.
A preliminary economic assessment has been recommended and will likely focus on the potential of higher-grade material within the inventory.
(1) Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources: This press release uses the terms "measured", "indicated" and "inferred" "resources". We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.
Caution Concerning Forward-Looking Statements
This release and related documents may contain certain "forward-looking statements" including, but not limited to, statements relating to interpretation of drilling results and potential mineralization, future exploration work at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project and the expected results of this work. Forward looking statements are statements that are not historical facts and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project; uncertainties involved in the interpretation of drilling results and other tests; the possibility that required permits may not be obtained in a timely manner or at all; risk of accidents, equipment breakdowns or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the exploration operations at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project. Forward-looking statements contained in this release and related documents are based on the beliefs, estimates and opinions of management on the date the statements are made. There can be no assurance that such statements will prove accurate. Actual results may differ materially from those anticipated or projected. X-Cal Resources Ltd. and X-Cal USA, Inc. undertake no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. | |