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Enforcer Gold and SOQUEM announce updated mineral resource estimate for Roger project containing 377,000 gold equivalent ounces indicated and 365,000 gold equivalent ounces inferred

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Enforcer Gold and SOQUEM announce updated mineral resource estimate for Roger project containing 377,000 gold equivalent ounces indicated and 365,000 gold equivalent ounces inferred

Canada NewsWire

TSX-V: VEIN | FSE: N071

TORONTO, Aug. 28, 2018 /CNW/ - Enforcer Gold Corp ("Enforcer" or the "Company") (TSX-V: VEIN) (FSE: N071) along with SOQUEM are very pleased to announce the results of the updated mineral resource estimate on the Mop-II gold-copper deposit at the Company's Roger project. This new resource estimate is constrained in a conceptual open pit shell. The project is advantageously located just 5 km north of the historic mining center of Chibougamau, Quebec, has all-season road access and is crossed by a power line that serviced the past-producing Troilus Mine. Enforcer is earning a 50% interest in the Roger project from project operator, SOQUEM.

Enforcer Gold President and CEO, Steve Roebuck, comments:

"These results have surpassed our best expectations. We were optimistic that the updated resource estimate would be a significant milestone for the Company, but this new estimate is not only a marked increase in the size of the resource, it is also a very significant boost in confidence level with over 50% in the Indicated category. We look forward to further advancing the Roger project in the upcoming Phase 2 exploration program."

SOQUEM President, Olivier Grondin, comments:

"SOQUEM is very satisfied with the updated resource estimate since it provides a new opportunity to further advance the Mop-II deposit. SOQUEM has a long-term exploration strategy and our perseverance is rewarded, as SOQUEM staked the property in 1997.  This is a major step forward in the development of this deposit."

Table 1. Pit-Constrained Mineral Resource Estimate on the Mop-II Gold-Copper Deposit

Category

AuEq

Cut-off (g/t)

Tonnes

AuEq

(g/t)

Contained AuEq

(oz)

Au

(g/t)

Contained Au

(oz)

Indicated

0.45

11,143,000

1.05

377,000

0.92

331,000

Inferred

0.45

8,676,000

1.31

365,000

1.07

298,000

 

Notes to Table 1:

  1. The mineral resource estimate was prepared with reference to the 2014 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards and the 2003 CIM Best Practice Guidelines.
  2. The effective date of the mineral resource estimate is July 4, 2018.
  3. The Qualified Person for the estimate is Christian D'Amours, PGeo, of GéoPointCom.
  4. Gold Equivalent ("AuEq") cut-off grade is based on 3-year average metal prices (to July 2018) of US$1,240/oz gold, US$16.50/oz silver and US$3.00/lb copper, USD/CAD exchange rate of 1.3129 using an open pit constrained model.
  5. The resource is supported by statistical analysis with good reproducibility of the values and geostatistical validation of the coefficient of variation and probability curves. High-grade values were not capped but their numbers and area of influence was limited.
  6. A minimum thickness of 10m was used for all sub-vertical zones and assays were composited to 1.0m true width.
  7. A bulk density of 2.70 g/cm3 was used for the current estimate.
  8. Mineral resources are reported as in-situ without dilution and material loss.
  9. Rounding may result in apparent differences between tonnes, grade and contained metal content.
  10. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Block model plans and sections are available in the Roger Map Gallery.

Table 2. Pit-Constrained Indicated Mineral Resource Sensitivity by Cut-Off Grades

AuEq

Cut-Off

(g/t)

Tonnes

(kt)

Au

(g/t)

Ag

(g/t)

Cu

(%)

Au

(oz)

Ag

(oz)

Cu

(lb)

AuEq

 (oz)

0.25

22,244

0.59

0.83

0.06

419,000

592,000

27,932,000

494,000

0.3

17,840

0.68

0.86

0.06

392,000

492,000

23,925,000

455,000

0.35

14,899

0.77

0.9

0.06

368,000

430,000

21,150,000

425,000

0.4

12,819

0.85

0.94

0.07

349,000

388,000

18,842,000

400,000

0.45

11,143

0.92

0.99

0.07

331,000

353,000

17,056,000

377,000

0.5

9,722

1

1.04

0.07

313,000

325,000

15,630,000

355,000

0.6

7,708

1.15

1.14

0.08

284,000

282,000

13,400,000

320,000

0.7

6,265

1.28

1.22

0.08

258,000

246,000

11,722,000

290,000

 

Table 3. Pit-Constrained Inferred Mineral Resource Sensitivity by Cut-Off Grades

AuEq

Cut-Off

(g/t)

Tonnes

(kt)

Au

(g/t)

Ag

(g/t)

Cu

(%)

Au

(oz)

Ag

(oz)

Cu

(lb)

AuEq

 (oz)

0.25

15,013

0.72

1.62

0.10

346,000

784,000

31,643,000

432,000

0.3

12,626

0.82

1.77

0.11

331,000

719,000

29,446,000

411,000

0.35

10,824

0.91

1.94

0.12

317,000

676,000

27,752,000

393,000

0.4

9,781

0.98

2.05

0.12

309,000

643,000

26,323,000

380,000

0.45

8,676

1.07

2.16

0.13

298,000

604,000

24,880,000

365,000

0.5

7,862

1.14

2.3

0.14

288,000

581,000

23,747,000

353,000

0.6

6,452

1.31

2.61

0.15

272,000

541,000

20,814,000

329,000

0.7

5,744

1.41

2.81

0.15

260,000

519,000

19,266,000

314,000

 

Notes to Tables 2 and 3:

  1. Gold Equivalent ("AuEq") cut-off grade is based on 3-year average metal prices (to July 2018) of US$1,240/oz gold, US$16.50/oz silver and US$3.00/lb copper, USD/CAD exchange rate of 1.3129 using an open pit constrained model.

Gold mineralization at the Mop-II deposit correlates with broad alteration zones of sericitization and silicification that are largely contained within a 2.2 km long by 0.4 km wide quartz-feldspar porphyry intrusion. The mineralization is homogenous, generally low grade and occurs over broad intervals. In addition to the 58,000 m of diamond drilling now completed on the Roger property, underground exploration undertaken in 1988 included 1,177 m of development and over 1,000 m of chip sampling. In 2006, a NI 43-101 mineral resource estimate on the Mop-II deposit outlined 3.24 Mt of Inferred Resources at an average grade of 1.61 g/t Au and 0.04% Cu for a total 167,200 ounces of gold (Enforcer press release dated March 5, 2018). Enforcer considers the 2006 estimate as a historical resource estimate that has relevance to the project; however, a qualified person for the Company has not done sufficient work to classify the historical estimate as a current mineral resource and as such it should not be relied on.

The 2018 mineral resource estimate was prepared by GéoPointCom of Val-d'Or, Quebec utilizing GeoticMine software and geostatistical analysis by Isatis software. The estimate was calculated using ordinary kriging (OK) methodology and the block model was constructed using block dimensions of 10 x 10 x 10 meters. The estimate incorporates information from 260 surface diamond drill holes and 23 underground diamond drill holes for a total of 38,554 m of split/sawn and assayed core. The wireframes solids were created using a 3D Delaunay triangulation process instead of lines and tie lines projected on section. A total of 13 sub-vertical wire frames were constructed considering a minimum true thickness of 10 m and a minimum grade of 0.35 g/t Au equivalent. This package of zones lied in a lower-grade envelope of 1,880m x 1,110m x 460m dimensions. Samples were composited inside the wire frames into 1 m true length composites. No capping was used at this step. During the interpolation process, composite having a gold grade higher than 30 g/t was limiting to influence only the cell located 15 m around them. Passed this distance, their grade was limited to 30 g/t. A uniform density of 2.7 g/cm3 was used. The resources categories were defined based on composite proximity using two consecutive search ellipsoids passes. The cut-off grade calculation is based on the following parameters:

Au price: US$1,240/oz gold
Ag price: US$16.50/oz silver
Cu price: US$3.00/lb copper
USD/CAD exchange rate: 1.3129
Mining cost: US$2.5/t
Mill recovery: 95%
Processing cost: US$20/t

A NI 43-101 technical report to support the disclosure of the mineral resource estimate is being prepared by Consortium Geologica Groupe-Conseil Inc. of Val-D'Or, Québec and will be filed on SEDAR (www.sedar.com) within 45 days of this press release.

Qualified Persons

Enforcer's VP Exploration, Antoine Fournier, PGeo, and Christian D'Amours, PGeo, of GéoPointCom, are both Qualified Persons as defined by National Instrument 43-101 and have reviewed and approved the content of this news release.

About SOQUEM

SOQUEM Inc., a subsidiary of Ressources Québec, is a leading player in mineral exploration with its mission to explore, discover and develop mining properties in Quebec. SOQUEM has participated in more than 350 exploration projects and contributed to major discoveries of gold, diamonds, lithium and other mineral commodities in Quebec.

About Enforcer Gold Corp

Enforcer Gold Corp is a Canadian-based mineral exploration company and is earning a 50% interest in the advanced-stage Roger project from SOQUEM. Roger hosts the Mop-II gold-copper deposit located 5 km from the historic mining center of Chibougamau, Quebec. Enforcer also holds a 100% interest in the Waswanipi gold project located 125 km west of Chibougamau. The project is situated within the prolific Abitibi greenstone belt, which has produced over 180 M oz. of gold and over 450 M tonnes of copper-zinc ore since the early 1900s.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release contains "forward-looking statements" that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's plans with respect to the exploration of its Roger project, the exploration potential and analogous deposit potential of the Roger project and the timing of the Company's exploration programs. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, the results of exploration activities; the ability of the Company to complete further exploration activities; the ability of the Company to complete transactions on terms announced; timing and availability of external financing on acceptable terms and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. Enforcer Gold does not undertake to update any forward-looking information except in accordance with applicable securities laws.

SOURCE Enforcer Gold

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