Moto's Moto at 11.29 mm oz of 3.1 g/t Au indicated
2009-01-21 08:40 ET - News Release
Mr. Andrew Dinning reports
MOTO GOLD PROJECT MINERAL RESOURCE UPDATE
Moto Goldmines Ltd. has released a new global resource for its Moto gold project of 11.3 million ounces indicated plus 11.2 million ounces inferred mineral resources.
Central to the revision is a 126-per-cent increase in the tonnage and a 60-per-cent increase in the contained gold for indicated mineral resources within the high intensity alteration zone (ACSA) of the Sessenge Deeps lodes, which is the subject of current underground feasibility work. This result continues to demonstrate the robust nature of previous mineral resource estimates and confirms the high conversion rates historically seen with infill drilling.
In line with Moto's strategy to reconfigure the project, diamond drilling activities from mid-2007 to mid-2008 solely targeted the Sessenge Deeps lodes which were assessed to have significant potential for mining using high-productivity underground methods. The drill results contained within this release form the basis for this resource update. Results of drilling for the period mid- to end of 2008 targeting different orebodies within the KCD system will be the subject of a separate press release.
Significant intersections include the following:
* 28 metres at 8.67 grams per tonne gold from 442 metres to 470 metres;
* 26 metres at 13.04 grams per tonne gold from 456 metres to 482 metres;
* 52 metres at 7.97 grams per tonne gold from 494 metres to 546 metres;
* 38 metres at 7.67 grams per tonne gold from 496 metres to 534 metres;
* 54 metres at 5.34 grams per tonne gold from 533 metres to 587 metres;
* 20 metres at 10.28 grams per tonne gold from 460 metres to 480 metres;
* 10 metres at 10.43 grams per tonne gold from 476 metres to 486 metres;
* 14 metres at 9.38 grams per tonne gold from 468 metres to 482 metres.
The drilling program was designed to provide better edge definition for lode interpretation and aimed to convert inferred mineral resources to indicated mineral resources. Moto considers this to be essential to provide sound technical evaluation of the underground mining potential.
Cube Consulting Pty. Ltd. was commissioned to undertake the independent revision of the project's mineral resources using additional drilling information acquired during the period from mid-December, 2007, to July, 2008. The revised mineral resources form the basis of the project's optimization study.
SESSENGE DEEPS LODES -- REFINED INTERPRETATION -- MINERAL RESOURCES
GREATER THAN ONE GRAM PER TONNE GOLD
Indicated mineral resources Inferred mineral resources
Deposit Tonnes Grade Metal Tonnes Grade Metal
Mt g/t Au 000 oz Mt g/t Au 000 oz
High-grade core 9.93 6.7 2,149 2.13 3.4 233
Low-grade halo 6.03 1.9 362 4.49 1.9 275
Since the previous mineral resource update in February, 2008, Cube has expanded the scope of interpretation and estimation practice to include discrete modelling of the low-grade, low-intensity alteration halo encompassing the higher-grade core alteration which was the subject of previously published mineral resource estimates. This enhancement will aid underground mine planning activities of the optimization study.
The Sessenge Deeps drilling program also yielded a significant number of additional intersections in the upper areas of the KCD deposit as a result of the stacked nature of the deposit's mineralized lodes. Significant intersections for this upper area include the following:
* Eight metres at 13.99 grams per tonne gold from 338 metres to 346 metres;
* 14 metres at 7.15 grams per tonne gold from 464 metres to 478 metres;
* 30 metres at 5.18 grams per tonne gold from 463 metres to 493 metres;
* Eight metres at 11.13 grams per tonne gold from 26 metres to 34 metres;
* Six metres at 16.80 grams per tonne gold from 352 metres to 358 metres;
* 20 metres at 10.13 grams per tonne gold from 282 metres to 302 metres;
* 18 metres at 11.96 grams per tonne gold from zero metres to 18 metres;
* 24 metres at 8.10 grams per tonne gold from 164 metres to 188 metres.
On the basis of statistical analysis of geological data, Cube has redefined the local recoverable mineral resource using a modelling methodology adopting a lower interpretative cut-off grade of approximately 0.15 gram per tonne gold (previous mineral resource estimates used approximately 0.5 gram per tonne). As a result, all the project's deposits containing indicated mineral resources were revised using this methodology, the results of which are listed in the local recoverable mineral resource table.
MOTO GOLD PROJECT LOCAL RECOVERABLE MINERAL RESOURCE --
ALL DEPOSITS GREATER THAN ONE GRAM PER TONNE GOLD
Indicated mineral resources Inferred mineral resources
Deposit Tonnes Grade Metal Tonnes Grade Metal
Mt g/t Au 000 oz Mt g/t Au 000 oz
Pakaka 16.93 2.5 1,379 - - -
Gorumbwa - - - 8.29 5.2 1,374
Kibali - - - 17.08 2.2 1,206
Mengu Hill 8.82 3.0 847 - - -
Mengu Village 1.15 1.9 69 0.08 1.4 4
KCD 66.74 3.6 7,705 73.75 3.4 8,127
Megi - - - 4.14 2.1 277
Marakeke - - - 2.41 1.7 134
Kombokolo 2.33 2.4 176 - - -
Sessenge 8.58 2.3 637 - - -
Ndala - - - 0.26 4.0 34
Pamao 7.85 1.9 480 1.15 1.9 71
------ --- ------ ------ --- ------
Global resource 112.39 3.1 11,293 107.16 3.3 11,226
------ --- ------ ------ --- ------
Note: KCD mineral resources in this table are inclusive of Sessenge Deeps
mineral resources listed in the refined interpretation table. The mineral
resource listings are not additive.
SUMMARY OF ATTRIBUTABLE MINERAL RESOURCES
Category Gross Net attributable to Moto group(i) Operator
Tonnes grade Metal Tonne Grade Metal
Mt Au g/t Moz Mt Au g/t Moz
Measured - - - - - - Moto group
Indicated 112.4 3.1 11.3 78.7 3.1 7.9 Moto group
Inferred 107.2 3.3 11.2 75.0 3.3 7.9 Moto group
(i) Net attributable to the Moto group represents 70 per cent of the Moto
gold project.
Mineral resources and reserves
In December, 2007, Moto released a feasibility study compiled by Lycopodium Minerals Pty. Ltd. (formerly Lycopodium Engineering Pty. Ltd.) and Cube. As part of this feasibility study, Cube calculated probable mineral reserves of 37.8 million tonnes at 3.2 grams per tonne gold for 3.9 million ounces gold, sourced solely from open-pit mining.
Also in February, 2008, the company released an underground concept study conducted by AMC Consultants Pty. Ltd., which modelled high-grade domains within the two Sessenge Deeps lodes of the KCD mineralized system. Based on a three-gram-per-tonne cut-off grade, AMC's preliminary assessment concluded that the following mineral resources of the project have the potential to be extracted using underground methods:
* 4.9 million tonnes at 8.9 grams per tonne for 1.4 million ounces gold in the indicated mineral resource category;
* 30.7 million tonnes at six grams per tonne for 5.9 million ounces gold in the inferred mineral resource category.
Additional notes
The Moto group undertakes geological sampling and assay in accordance with its quality assurance-quality control program, which includes the use of standards, blanks and duplicates. This program was audited by Snowden Mining Industry Consultants Pty. Ltd. in July, 2006. Snowden is independent of Moto and is currently undertaking an updated quality assurance-quality control audit.
Gold assay work was undertaken by Genalysis Laboratory Services Pty. Ltd. in Perth, Western Australia. Genalysis is accredited under the National Association of Testing Authorities Australia for compliance with ISO/EC 17025 for chemical testing and is independent of the Moto group. Assays are determined using fire assay methods with a 50-gram charge, AAS finish with a 0.10-gram-per-tonne-gold detection limit.
Scientific or technical information in this news release has been prepared under the supervision of Greg Smith, geological consultant to the company and a qualified person under National Instrument 43-101, and a member of the Australasian Institute of Mining and Metallurgy. Mr. Smith has sufficient experience which is relevant to the style of mineralization under consideration and to the activity which he is 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" (the JORC code).
The information in this report that relates to mineral resources is based on a resource estimate compiled by Rick Adams, who is a member of the Australasian Institute of Mining and Metallurgy and a qualified person under National Instrument 43-101. Mr. Adams is a director of Cube and has sufficient experience which is relevant to gold mineralization and resource estimation to qualify as a competent person as defined in the December, 2004, edition of the "Australasian Code for Reporting of Exploration Results, mineral resources and Ore Reserves" (the JORC code). Mr. Adams consents to the inclusion in this report of the information in the form and context in which it appears.
The information in this report that relates to mineral reserves is based on a resource estimate compiled by Quinton de Klerk, who is a member of the Australasian Institute of Mining and Metallurgy and a qualified person under National Instrument 43-101. Mr. de Klerk is a director of Cube and has sufficient experience which is relevant to gold mining and mineral reserve calculation to qualify as a competent person as defined in the December, 2004, edition of the "Australasian Code for Reporting of Exploration Results, mineral resources and Ore Reserves" (the JORC code). Mr. de Klerk consents to the inclusion in this report of the information in the form and context in which it appears.
All the mineral resource estimates and mineral reserve calculations referred to in this news release have been classified and reported in accordance with the 2004 Australasian Code for Reporting of mineral resources and Ore Reserves (2004 JORC code). The 2004 JORC reporting guidelines are equivalent to the guidelines adopted for the Canadian National Instrument 43-101.
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