TORONTO, March 26, 2013 /CNW/ - Alacer Gold Corp. ("Alacer") [TSX:ASR, ASX:AQG] is pleased to announce a number of significant results returned from its ongoing exploration programs in Australia.
Alacer's management believes its 3400km2 tenement holding along the +100 million ounce Kalgoorlie to Norseman gold belt has the potential to deliver significant exploration success and has committed to a substantial $36 million exploration budget in Australia for 2013. The ongoing exploration program currently has eight drill rigs in operation in the Higginsville and South Kalgoorlie areas.
Recent Exploration Highlights
Alacer's 2013 exploration program commenced in mid January and highlights of work completed to date include:
South Kalgoorlie
- Location 48 Significant shallow (< 30m below surface) high-grade gold mineralization has been discovered over a two square kilometer area just three kilometers from the Jubilee processing plant; and
- SBS28 Area High-grade gold mineralization has now been intersected over 200m below the lowest levels at both the historical Barbara and Surprise underground mines.
Higginsville
- Challenge Further high-grade mineralization discovered in a >1km long bedrock structure at the Jupiter Prospect;
- Eundynie Multiple, shallow, high-grade gold intersections at the Hidden Secret Prospect; and
- Vine Multiple high-grade gold zones intersected at depths up to 800m below the base of the Vine pit.
David Quinlivan, President and CEO of Alacer, stated:
"The results announced today reflect an excellent start to the 2013 exploration field season.
The 2012 strategic review of South Kalgoorlie's extensive exploration data identified three target areas with the highest probability of delivering a large gold discovery. Location 48 was identified as the highest priority target area, being a poorly explored area located on the prolific Boulder-Lefroy Fault only a few kilometers southeast of the Jubilee processing plant. The presence of shallow high-grade gold mineralization in early reconnaissance drilling over an extensive area at Location 48 is extremely encouraging and validates our exploration model. Deeper drilling at the SBS28 complex is confirming our belief in the underground potential of this target area, and drilling will soon commence at Mt. Marion - our third priority target area at South Kalgoorlie.
Exploration at Higginsville during 2013 is testing the many high-quality targets generated by last year's Higginsville Line of Lode Framework program and by the extensive anomaly generation program completed across the Higginsville tenure. Our belief in the exploration potential of this field is being confirmed by high-grade results from recent drilling."
Key recent assay results at South Kalgoorlie include:
- Location 48 - High-grade gold mineralization has been discovered close to the surface over a two square kilometer area at the Wedge Prospect. Results include:
- 4m at 14.6g/t gold from 20m in WGA228;
- 7m at 4.9g/t gold from 27m in WAC261;
- 4m at 5.9g/t gold from 16m in WGA133; and
- 4m at 5.6g/t gold from 4m in WGA142.
- SBS28 Complex - Two deep wide-spaced step-out drill holes have each intersected high-grade mineralization over 200m below historical underground workings at Barbara and Surprise. Results include:
- 4.25m at 7.7g/t gold from 558.0m in BU210W1 at Barbara, and
- 2.1m at 9.1g/t gold from 386.5m in SD083 at Surprise.
Key recent assay results at Higginsville include:
- Drilling of recently identified structures at the Challenge and Eundynie Prospects has intersected shallow high-grade gold mineralization, including:
- 2m at 234g/t gold from 90m in JUPR037;
- 2m at 39.2g/t gold from 64m in JUPR025;
- 5m at 10.0g/t gold from 52m in HDSR0023;
- 5m at 7.7g/t gold from 60m in HDSR0022; and
- 7m at 5.8g/t gold from 32m in HDSR0009.
- A diamond drill hole (VIND103) testing the Higginsville Line of Lode has intersected several zones of high-grade gold mineralization over a distance of 450m down hole at the Vine Prospect, including:
- 3.55m at 6.7g/t gold from 390.2m;
- 3.55m at 5.9g/t gold from 453.45m;
- 0.65m at 43.6g/t gold from 622.35m; and
- 2.0m at 8.9g/t gold from 855.0m.
To view the complete drill hole and assay results relating to this announcement, please visit the following link: http://www.alacergold.com/files/2013_03_26_exploration_update_supporting_information_3.pdf or visit Alacer's website at: www.AlacerGold.com.
South Kalgoorlie Exploration
South Kalgoorlie is one of the most prospective areas for gold exploration and discovery in Australia, as it is located centrally within a +100 million ounce gold belt defined by Kalgoorlie's Golden Mile at the northern end and the world-class St. Ives goldfield at the southern end. The geology from Kalgoorlie through South Kalgoorlie and to St. Ives is essentially the same stratigraphic succession, and the Boulder-Lefroy Fault, which is the principal controlling feature of gold mineralization in the area, transects the entire package from Kalgoorlie to St Ives. Continuous exploration has seen material resource and reserve growth at both the Golden Mile and St. Ives over recent years; however exploration at South Kalgoorlie has been largely neglected due to splintered historical ownership prior to Alacer.
In late 2012, Alacer began drilling high-potential conceptual targets identified by an in-depth 'first principles' targeting exercise based on the extensive exploration data for the South Kalgoorlie tenements. The 2013 exploration budget is $20 million and the 2013 exploration results should clarify the strategic options available for the South Kalgoorlie Operations.
Three key areas with the highest probability of delivering a large gold discovery have been identified: Location 48, the Mt. Marion Complex, and the SBS28 Complex.
To view "Figure 1: South Kalgoorlie tenement Location showing the three key target areas to be drilled during 2013" please click http://files.newswire.ca/986/Figure1.pdf
Location 48
The Location 48 area lies immediately southeast of the 5 million ounce HBJ deposit and Jubilee processing plant, and extends 10km south along the Boulder-Lefroy Fault. Historical exploration in this area has not been effective as the area is dominated by thin cover that is not amenable to soil geochemistry.
Twelve high-priority targets have been defined in Location 48. Drilling of the first target, called 'Wedge', commenced late in 2012 and has been a focus of exploration in 2013. A total of 27km of aircore drilling has been completed across the target area, initially on 160m x 40m spacing and then infilled to 80m x 40m spacing.
Drilling results have identified widespread shallow gold anomalism in oxidized rock over a distance of two square kilometers, with several multi-gram intersections over appreciable widths intersected at depths less than 30m. Figure 2 shows the wide distribution of strong anomalism and mineralization generated by the aircore drilling program at Wedge and results include:
- 4m at 5.9g/t gold from 16m in WGA133;
- 4m at 5.6g/t gold from 4m in WGA142;
- 4m at 14.6g/t gold from 20m in WGA228;
- 7m at 4.9g/t gold from 27m in WAC261; and
- 2m at 8.4g/t gold from 8m in WAC296.
To view "Figure 2: Wedge Prospect at Location 48. Widespread gold anomalism is seen in broad early stage aircore drilling. Alacer drilling is represented as circles and effective historical drilling as triangles. Drill collars color coded to maximum gold assay value in (red > 1.0g/t gold)" please click http://files.newswire.ca/986/Figure2.pdf
An RC drilling campaign is planned to commence soon to follow-up these strong results from first-pass aircore drilling.
SBS28 Complex
Located near Coolgardie and 35km west of the Jubilee processing plant, the SBS28 complex is a 3km-long mineralized zone that has been sporadically mined under fragmented ownership over the past 70 years. Historical gold production from the SBS28 Complex is estimated to total 1.4 million tonnes at 7.0g/t gold for 320,000 ounces.
The proximal nature of a variety of mineralization styles within the SBS28 Complex is indicative of a single large mineralized system. The controls on mineralization are becoming better understood as drilling progresses.
The majority of drilling in 2012 focused on infill and resource-extension work required prior to the final open pit optimization and mining studies. The 2012 drilling program successfully defined extensions to mineralization which form the basis of South Kalgoorlie's open-pit production from Q2 2013.
Drilling completed in 2012 also confirmed the continuity of higher grade mineralization immediately below the historical underground workings at both the Barbara and Surprise Mines with results including 3m at 8.2g/t gold from 299m in drill hole BU212 at Barbara, and 2m at 12.7g/t gold from 196m in drill hole SD075 at Surprise. Alacer has recently completed two wide-spaced step-out drill holes to assess the depth potential of these two historic high-grade mines. Drill hole BU210W1 at Barbara intersected 4.25m at 7.7g/t gold from 558m and drill hole SD083 at Surprise intersected 2.1m at 9.1g/t gold from 386.5m (estimated true width is 60-70% of downhole width). Both drill hole intersections occur over 200m below the existing underground workings and confirm the significant underground potential of both these mines.
The 2013 exploration focus is to test the underground potential of the historic high-grade SBS28 mines, as well as test for new discoveries where minimum effective shallow exploration has been completed.
Mt. Marion Complex
The Mt. Marion area is the third SKO target area to be drilled during 2013. The Mt. Marion deposit contained in excess of 1 million ounces of gold and was mined by open pit and underground methods in the late 1990s to mid 2000.
No regional drilling has occurred outside the immediate mine area since the 1997 discovery of Mt. Marion. Alacer plans to test an area around the Mt Marion deposit which lies on a +5km long and +1km wide dilational bend of the mineralized Karramindie Shear. Only 1km of this mineralised structure has been tested in the immediate vicinity of the Mt. Marion deposit. Early-stage reconnaissance drilling in the remaining 4km of this prospective area is planned to commence in April.
Higginsville Exploration
Higginsville's exploration investment in 2013 of $16 million is targeting discoveries that will extend the currently planned gold production of more than 150,000 ounces per annum beyond 2016. Drilling during 2013 is planned to test three main areas:
- Challenge area - testing several recently defined mineralized structures;
- Higginsville Line of Lode area - testing targets generated by the framework drilling program; and
- Chalice area - testing the down-plunge continuity of the Chalice orebodies as well as the potential for satellite ore deposits near the Chalice mine.
To view "Figure 3: Location of early drilling in 2013 at Higginsville is indicated by the stars" please click http://files.newswire.ca/986/Figure3.pdf
Challenge
The Challenge region has produced over 260,000 ounces of gold and lies approximately 10km southeast of the Higginsville processing plant. The bedrock source of the Challenge paleaochannel gold has not been discovered, yet is interpreted to lie in close proximity. Drilling in 2012 defined supergene and bedrock anomalies in the Challenge area near the paleaochannel that require follow-up drill testing for primary bedrock mineralization.
Exploration results from the northwestern margin of Challenge area have confirmed the presence of several large +1km long mineralized north-south structures. As shown in Figure 4 below, several high-grade bedrock intersections have been recorded on these structures at the Jupiter Prospect:
- 2m at 234g/t gold from 90m in JUPR037;
- 2m at 39.2g/t gold from 64m in JUPR025;
- 17m at 4.2g/t gold from 54m in JUPR031;
- 7m at 4.7g/t gold from 70m in JUPR030; and
- 2m at 9.0g/t gold from 65m in JUPR038.
To view "Figure 4: Long Section of the Jupiter Prospect at the Challenge Project, Higginsville. Estimate true widths are 60-70% of downhole widths" please click http://files.newswire.ca/986/Figure4.pdf
Exploration in 2013 will continue to delineate the extent of this newly defined high-grade mineralization along its +1km length, test recently identified parallel mineralized structures to the east and west, and follow up on other high priority anomalies in the Challenge area.
Eundynie
Eundynie is a historical mining centre located 15km east of the Higginsville processing plant with mine workings dating from the early 1900s to 1950s. Drill testing of these workings commenced in the latter half of 2012 and is continuing in early 2013. Initial drill testing of the Hidden Secret workings has confirmed strong, shallow, high-grade mineralization with results including:
- 5m at 10.0g/t gold from 52m in HDSR0023;
- 5m at 7.7g/t gold from 60m in HDSR0022;
- 7m at 5.8g/t gold from 32m in HDSR0009;
- 5m at 4.2g/t gold from 43m in HDSR0021; and
- 7m at 4.5g/t gold from 39m in HDSR0005.
To view "Figure 5:Long Section of the Western Lode at Hidden Secret, Eundynie Project, Higginsville. Estimate true widths are 90% of downhole widths" please click http://files.newswire.ca/986/Figure5.pdf
Ongoing drilling in 2013 will determine the open-pit potential of these high-grade vein complexes at Eundynie.
Higginsville Line of Lode
The "framework drilling" program of diamond drill holes at Higginsville commenced in late 2011 and was completed by the end of 2012. The framework drilling has been carried out on lines 800m apart and comprises several holes per section with the objective of:
- developing an understanding of the three-dimensional nature of the stratigraphy and structure that comprise the 6km‐long Higginsville Line of Lode to a depth of 800m; and
- identifying prospective stratigraphic units with the potential for >5g/t large-scale gold deposits.
Alacer's management believe there is excellent potential for the discovery of a major orebody similar to the +1 million ounce Trident deposit lying beneath the near-surface gold deposits that define the Higginsville Line of Lode. Significant gold mineralization was discovered during the 2012 Higginsville framework drilling program including the high-grade Corona Vein, as well as several mineralized quartz veins in the Vine area.
Three-dimensional modeling of the stratigraphy and structure has been completed and has resulted in generating multiple targets that may host large gold deposits. To date, two target areas identified by the framework drilling program, Trident North Basalt and Vine, have been drill tested. Positive results have been returned for the drill hole at Vine (VIND103). Broad areas of low-grade mineralization that contained several high-grade intersections were returned over a distance in excess of 450m down hole, confirming the target as a high-potential area. The better results include:
- 3.55m at 6.7g/t gold from 390.2m;
- 3.55m at 5.9g/t gold from 453.45m;
- 0.65m at 43.6g/t gold from 622.35m; and
- 2.0m at 8.9g/t gold from 855m.
To view "Figure 6: Vine cross section 6486000N showing the location of VIND103 in relation to the Higginsville Line of Lode Framework drill holes. Estimate true widths are 60-80% of downhole widths" please click .http://files.newswire.ca/986/Figure6.pdf
Further diamond drilling is currently being planned to determine the extent of the mineralization defined in VIND103.
Other Information
Qualified Person and Technical Procedural Information
The information in this announcement which relates to Exploration Results and Mineral Resources is based on information compiled by Chris Newman, a full time employee of Alacer Gold Corp. who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr. Newman has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and a qualified person pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. Mr. Newman consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
Exploration drilling and sampling in Australia utilized surface HQ and NQ2 diamond core, RC and aircore. All holes are marked out with hand held GPS in Map Grid of Australia 1994 - Zone 51. All diamond and RC holes are surveyed using Real Time Kinematic GPS by the on-site survey team. Drill core was sawn half core and submitted for assaying. Dependent on the ore body geometry, core sample lengths were constrained by geology, alteration or structural boundaries and sample lengths varied between a minimum of 0.5m to a maximum of 1.3m. Reported results from RC samples were collected on 1m riffle split intervals and from 4m composite samples and 1m re-samples using aircore. At Higginsville, RC and diamond drill samples were assayed with fire assay with an AAS finish on 50g charges via MinAnalytical in Perth or by pulverise and leach (PAL1000B) with an AAS finish on 500 ‐ 750g charges at the Higginsville Intertek laboratory. Aircore samples at both operations were analysed via low-level aqua regia digestion by SGS and MinAnalytical Laboratories in Perth. Internationally accepted standards and blanks were utilised to check on laboratory assay quality control. At South Kalgoorlie, RC and diamond samples were assayed with fire assay with an AAS finish on 50g charges via SGS Laboratories in Kalgoorlie. Blanks and Assay Pills were utilised to check on laboratory assay quality control. Exploration and drilling results are reported as drilled thicknesses. Drill composites were calculated using a cut‐off of approximately 1.0g/t gold. No top cut was applied.
Cautionary Statements
Certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Alacer's public filings, Alacer's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "forecast", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to exploration, communications with local stakeholders and community relations, status of negotiations of joint ventures, commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, timing of studies and analysis, the timing of construction of proposed mines and process facilities, capital and operating expenditures, economic conditions, availability of sufficient financing, exploration plans and any and all other timing, exploration, development, operational, production, financial, economic, legal, social, regulatory and, political factors that may influence, or be influenced by, future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other Alacer filings, and include exploration results and the ability to explore, the ultimate determination of mineral reserves, availability and final receipt of required approvals, titles, licenses and permits, sufficient working capital to develop and operate the mines, access to adequate services and supplies, commodity prices, ability to meet production targets, foreign currency exchange rates, interest rates, access to capital markets and associated cost of funds, availability of a qualified work force, ability to negotiate, finalize and execute relevant agreements, lack of social opposition to the mines, lack of legal challenges with respect to any the property or Alacer and the ultimate ability to mine, process and sell mineral products on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Alacer filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.
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SOURCE: ALACER GOLD CORP.
For further information:
on Alacer Gold, please contact:
Lisa Maestas - North America at +1-303-292-1299
Roger Howe - Australia at +61-2-9953-2470
