Prize
Mining Corporation ("Prize") (TSXV: PRZ) is pleased to
announce that good progress is being made on the Yellowjacket Zone bulk
sampling (trial mining) program on its Atlin Gold Property, located in
northwestern British Columbia. Prize's previous news release, dated May
14, 2008, gave a full project review, summarizing the results of
exploration programs completed to date on the Yellowjacket Zone.
Over the past week, Prize has processed one test block and the first official
block of its bulk sampling program. The 10,000 tonne bulk sample is being
run through the Knelson designed processing plant in 40 250 tonne blocks
with full gold cleanup to be completed at the end of each block run.
Due to the "nugget" effect of the high grade coarse native gold
mineralization in the Yellowjacket Zone, completion of the bulk sample is
required in order to help mitigate grade variability to allow for
determination of an expanded resource estimate for the zone. The bulk
sample blocks were extracted from a location where the high grade gold
mineralization within the bedrock comes to surface. The following table
shows the shallow depths of high grade gold mineralization from the
diamond drill core samples taken from holes drilled within the bulk
sample pit area.
YELLOWJACKET
ZONE BULK SAMPLE PIT AREA
SHALLOW DIAMOND DRILL CORE GOLD ASSAY RESULTS
|
HOLE #
|
FROM (m)
|
TO (m)
|
WIDTH (m)
|
GOLD (g/t)
|
|
YJ03-01
|
13.95
|
19.51
|
5.56
|
513.50
|
|
and
|
21.96
|
22.87
|
0.91
|
21.06
|
|
and
|
25.00
|
26.52
|
1.52
|
40.42
|
|
and
|
35.97
|
39.02
|
3.05
|
34.81
|
|
and
|
42.99
|
44.21
|
1.22
|
57.88
|
|
YJ04-07
|
38.66
|
37.16
|
0.50
|
24.61
|
|
and
|
48.85
|
54.45
|
6.10
|
40.10
|
|
including
|
53.40
|
53.71
|
0.31
|
588.87
|
|
including
|
53.95
|
54.45
|
0.50
|
98.85
|
|
YJ04-17
|
33.10
|
33.60
|
0.50
|
19.41
|
|
YJ04-29
|
68.00
|
68.50
|
0.50
|
119.62
|
|
TW05-01
|
12.20
|
12.90
|
0.70
|
29.78
|
|
TW05-02
|
10.67
|
12.79
|
2.62
|
853.29
|
|
including
|
10.67
|
11.58
|
0.91
|
2397.59
|
|
including
|
11.58
|
12.19
|
0.61
|
74.51
|
|
and
|
20.05
|
41.50
|
21.45
|
11.49
|
|
including
|
24.00
|
25.29
|
1.29
|
26.80
|
|
including
|
26.82
|
27.28
|
0.46
|
28.22
|
|
including
|
31.00
|
31.50
|
0.50
|
129.00
|
|
including
|
34.50
|
35.50
|
1.00
|
16.13
|
|
including
|
37.50
|
38.50
|
1.00
|
86.83
|
The first official 250 tonne block has been milled and the mill has been
cleaned with 25 tonnes of clean crushed rock. Approximately two tonnes of
concentrate was collected from this first block and is ready to be
further concentrated by tabling. A clean gold concentrate and a
magnetic-rich concentrate will be produced off the table. The clean
concentrate will be saved to pour into a gold bar onsite, and the
remaining magnetic concentrate will be assayed and saved to ship to a
smelter at the end of the season. Processing of the next official block
has now commenced.
During processing of the first official 250 tonne block, 140 head grade
and tailings samples were collected for assay. The results from this
assaying program, combined with the gold produced from the concentrate
will give reliable gold grade information for this sample block. During
the course of assay sample collection, standard QA/QC practices were put
in place consisting of duplicate sampling and insertion of blanks and
gold standards.
The test block, which had never been assayed, returned a small amount of
visible gold mineralization when tabled. The first two
"official" blocks being processed are from the central portion
of the excavated pit in an area adjacent to blocks where channel sampling
returned high grade gold assays. Bedrock channel sampling of these two
blocks did not return any gold assay values above detection limits,
although the blocks are located within a favourable lithologic zone. The
reason for choosing to run these blocks first is two-fold. First, until
Prize is certain that the mill is running efficiently (and it appears to
be doing an excellent job of milling and concentrating the rock during
processing of the first block) high grade blocks will not be put through.
Second, one of the main reasons for doing this entire bulk sampling
program is to determine gold quantities in areas where channel sample
results did not pick up gold grades. These "nuggety" systems,
such as the one hosting the Yellowjacket Zone gold mineralization, are
notorious for their gold assay inconsistencies. In some instances, two
side-by-side samples can vary in grade by several orders of magnitude.
Where gold assay values are low in channel samples, the adjacent several
metres may contain areas of high grade gold mineralization that were not
included in the assayed sample. The 250 tonne block samples being
processed during the current program are large enough to allow meaningful
comparisons of the gold assay values from the prior channel sampling with
the gold content of the entire block.
After this second low grade block has been run, and mill and tabling
efficiencies are optimized, the third block to be processed will be one
that was extracted from central, higher grade area of the pit. The
following table shows select channel sample gold assay results. Assays
for the two metre channel samples vary in grade from less than detection
up to 311.27 g/t gold.
YELLOWJACKET ZONE BULK SAMPLE PIT
2 METRE BEDROCK CHANNEL SAMPLE RESULTS
|
CENTRAL AREA
|
|
SAMPLE #
|
TOTAL GOLD g/t
|
GOLD g/t (+150 MESH)
|
GOLD g/t (-150 MESH)
|
|
350943
|
4.99
|
13.43
|
1.71
|
|
350979
|
5.45
|
1.72
|
5.01
|
|
350980
|
4.61
|
2.78
|
3.91
|
|
350981
|
23.31
|
2.21
|
22.73
|
|
350999
|
15.07
|
20.73
|
10.01
|
|
351000
|
195.32
|
38.69
|
185.40
|
|
351104
|
36.00
|
94.84
|
12.52
|
|
351139
|
4.40
|
9.65
|
1.63
|
|
351160
|
5.43
|
1.75
|
4.99
|
|
351161
|
311.27
|
443.18
|
201.30
|
|
351208
|
4.15
|
7.91
|
2.22
|
|
351307
|
4.07
|
11.68
|
1.04
|
|
WEST END
|
|
SAMPLE #
|
TOTAL GOLD g/t
|
GOLD g/t (+150 MESH)
|
GOLD g/t (-150 MESH)
|
|
350785
|
90.61
|
179.91
|
45.29
|
|
EAST END
|
|
SAMPLE #
|
TOTAL GOLD g/t
|
GOLD g/t (+150 MESH)
|
GOLD g/t (-150 MESH)
|
|
351365
|
39.58
|
49.36
|
26.92
|
|
351555
|
6.16
|
11.26
|
3.34
|
|
351556
|
10.01
|
10.54
|
7.37
|
|
351576
|
31.75
|
58.65
|
17.09
|
|
Note: The table above shows the +150 (coarse gold
fraction) and the --150 (fine gold fraction) assay values as returned
from ACME Laboratory Ltd. Total gold content is obtained by weighted
averaging of the coarse and fine fraction gold contents.
|
Currently,
each 250 tonne sample block is grizzlied to 2" minus, with the
oversize being jaw crushed to 2" minus. The 2" minus rock is
then fed via conveyor into a seven by eight foot ball mill, with the
ground material from the ball mill being screened to two or three millimetres.
The screen oversize returns to the ball mill for further grinding and the
screen undersize reports to two circuits containing Knelson CD20
Concentrators which produce a gold concentrate. At the end of the milling
of each block, the gold concentrate is tabled on a Deister Table in order
to produce a clean gold concentrate. An onsite assay lab runs internal
assays to control mill efficiencies and to provide a timely but
non-certifiable gold fire assay for grade control. The samples collected
to be used for the 43-101 compliant resource estimate will be shipped to
ACME Laboratory Ltd. in Vancouver for analyses.
Prize is still awaiting the arrival of a semi-autogenous grinding mill
purchased from Titan Equipment in Ontario. Delays in modification of this
mill have necessitated Prize's process consultant Rino Mihoc to do some
leading-edge modifications in order to process the blocks utilizing the
existing ball mill as the main grinding unit. Talc-clay content in the
bedrock block material made the original plan to crush all the rock to
3/8" minus to feed the ball mill impossible. The fine crush simply
compacted on the crushing unit and would not allow proper crushing to
occur. Crushing to the larger 2" minus size works well with the
crushing unit and with Mr. Mihoc's modifications also process well
through the entire milling system. When the semi-autogenous grinding mill
arrives on site, processing will continue at an increased rate which is
estimated to double the current production rate.
Weekly updates will be provided by news release during the course of the
Yellowjacket Zone bulk sample (trial mining) program.
Additional details and information regarding past work conducted on
Prize's Atlin Property are set out in past news releases issued and technical
reports published by Prize, all of which are available on SEDAR at www.sedar.com.
Quality Assurance/Quality Control (QA/QC)
Prize
follows a rigorous Quality Assurance/Quality Control program consisting
of inserting standards, blanks and duplicates into the sample stream
submitted to ACME Laboratory Ltd. for analyses. As well, Prize has
instructed ACME to increase their internal standard and re-assay
protocols for this project.
Ms.
Linda Dandy, P.Geo., the project supervisor of Prize's trial mining
program on the Yellowjacket Zone of the Atlin Gold Property, is Prize's
nominated Qualified Person responsible for monitoring the supervision and
quality control of the programs completed within the Atlin Gold Property.
Ms. Dandy has reviewed and verified the technical information contained
in this news release.
About Prize Mining
Prize Mining Corporation is a Tier One Company listed on the TSX Venture
Exchange (symbol: PRZ-V). The Company is exploring for Gold in the Atlin
area of British Columbia, Canada and its Nickel-Copper-Palladium and
Platinum project on the Muskox Layered Intrusion in Nunavut, Arctic
Canada.
ON BEHALF OF THE BOARD OF
PRIZE MINING CORPORATION
"Harry McGucken"
Harry McGucken
President and CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Jamie Mathers, Investor Relations
Phone: 604.684.4743 ext. 228
Toll Free: 1.866.684.4743 ext. 236
Email: info@prizemining.com
Website: www.prizemining.com
Forward-Looking Statements
This news release contains forward-looking information
including but not limited to comments regarding the timing and content of
upcoming work programs, geological interpretations and potential mineral
recovery processes. Forward-looking information includes disclosure regarding
possible future events, conditions or results of operations that is based
on assumptions about future economic conditions and courses of action,
and therefore, involves inherent risks and uncertainties. When used in
this news release the words "estimated", "plan",
"anticipated", "expected", "intend",
"believe", and similar expressions are intended to identify
forward-looking statements. These statements involve known and unknown
risks, uncertainties and other factors that may cause the actual results,
performance or achievements of Prize to be materially different from any
future results, performance or achievement expressed or implied by such
forward-looking statements. For any forward-looking information given,
management has assumed that the analytical results it has received are
reliable, and has applied geological interpretation methodologies which
are consistent with industry standards. Although management has a
reasonable basis for the conclusions drawn, there can be no assurance
that forward-looking statements will prove to be accurate and actual
results may differ materially from those currently anticipated in such
statements. Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date it is
expressed in this news release or otherwise. Prize undertakes no
obligation to update publicly or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by law.
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.