May 9, 2013
Lexam VG Gold Reports Resource Update at Buffalo Ankerite
TORONTO, ONTARIO--(Marketwired - May 9, 2013) - Lexam VG Gold Inc. (the "Company", "Lexam") (TSX:LEX)(OTCQX:LEXVF)(FRANKFURT:VN3A) announces updated resource estimates for the Buffalo Ankerite property in Timmins, Ontario.
A digital resource model, including an optimized Whittle Pit, was completed for the Buffalo Ankerite North and South Zones. Updated resource estimates for the Davidson Tisdale, Fuller and Paymaster projects unfortunately remain in progress.
Table 1. 2013 Buffalo Ankerite In-Pit Resource Estimate
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In-Pit Resources - at a Cut-Off Grade of 0.015 opt Au (0.51 gpt Au)
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Indicated Resources Inferred Resources
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Tonnes Grade Grade Au Tonnes Grade Grade Au
Zone (000's t) (opt) (gpt) (000's oz) (000's t) (opt) (gpt) (000's oz)
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North 483 0.071 2.43 37.6 180 0.070 2.40 13.8
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South 2,378 0.075 2.57 197 2,456 0.068 2.33 183
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Total 2,861 0.074 2.54 235 2,635 0.068 2.33 197
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(See Note at the end of news release.)
In this press release the following abbreviations are used: opt = ounce per ton; gpt = gram per tonne, Au = gold; oz = ounce; ft = foot; m = metre; M = million, t = tonne. The following definitions apply: 1 tonne = 1,000 kilograms; cut-off grade = the grade value that distinguishes ore from waste, where material which has a grade below the cut-off grade is classified as waste and material with a grade equal to or greater than the cut-off grade is classified as ore.
The Buffalo Ankerite in-pit resource is 235,000 ounces of gold at a grade of 2.54 gpt Au in the Indicated category and 197,000 ounces of gold at a grade of 2.33 gpt Au in the Inferred category. This resource occurs within two optimized Whittle Pit shells, North Zone and South Zone. The Whittle pit dimensions are as follows:
- North Zone: Length x Width x Depth of 719 m x 663 m x 213 m (2,360 ft
x 2,175 ft x 700 ft);
- South Zone: Length x Width x Depth of 1,362 m x 649 m x 320 m (4,470
ft x 2,130 ft x 1,050 ft).
This represents a favourable target for potential exploitation due to the proximity of the project to mining infrastructure in the Timmins area. Once resource estimates for all four properties have been completed, the Company will initiate a Preliminary Economic Assessment to determine the economic viability of mining these properties by open pit methods.
Lexam VG Gold Resources
The growth of resources is an important objective for Lexam VG Gold. The exploration goal for the remainder of 2013 is to continue to develop the Company's gold resource base. Lexam currently has NI 43-101 resources estimates for four projects: Buffalo Ankerite, Fuller, Davidson Tisdale and Paymaster.
About Buffalo Ankerite Property
Buffalo Ankerite is a property of 1,214 acres, situated southeast of Timmins in northern Ontario. Buffalo Ankerite is easily accessible by highway, neighbouring within a few kilometers Goldcorp's Dome Mine to the east, Hollinger and McIntyre Mines to the north and Aunor Mine to the west, mines that generated more than 50 million of the 70 million ounces of gold produced in the Timmins Gold Camp. During the period 1926-1953, the Buffalo Ankerite property had a production of 1,018,000 ounces of gold with an average recovered grade of 6.51 grams per tonne.