Announced in May 2014, the company has officially begun construction of the Karma Gold Mine. Rather than focus all of their efforts on building the mine, the company has also begun an aggressive exploration program to help expand the current resources and hopefully turn the region into a gold district.
VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 9, 2014) – True Gold Mining Inc. (TSX VENTURE:TGM) (“True Gold” or the “Company“) is pleased to announce that step-out drilling at the Karma Gold Project’s Nami deposit (“Nami”) intersected 29.5 g/t gold over 6.0 metres and extended the deposit 250 metres north, along a corridor 150 metres wide. This previously untested extension has the potential to add an additional 50% to the strike length of the current Nami deposit outlined in the Feasibility Study. The deposit remains open for further expansion.
A feasibility study evaluates whether or not a project can potentially turn a profit. These studies are typically based on the average trend of commodity prices and current to projected operating costs. True Gold’s latest feasibility study was calculated using a base price of $1250 per oz gold, which is perilously close to today’s gold price of $1253 per oz. However, their latest technical reports show that the mine is operable at a price of $1000 per oz, which gives a little more of a cushion should the price of gold continue to fall or costs suddenly increase.
Holes RMB14RC-115 and RMB14RC-107 each intersected shallow, high-grade, oxidized gold mineralization at depths of less than 60 metres, including:
- 29.5 g/t Au over 6.0 metres, in RMB14RC-115, including 44.08 g/t Au over 4.0 metres;
- 0.99 g/t Au over 12.0 metres, in RMB14RC-107.
“We strongly believe that this northern Nami extension will add to the overall resource at Nami in much the same way that North Kao has added to the Kao deposit,” stated Scott Heffernan, Vice President, Exploration, of True Gold. “Ongoing exploration results like these continue to support our belief that the resource expansion potential at Karma is exceptional.”
This release deals with exploration at their “Nami” orebody and is one of five orebodies identified within the Karma Project, which includes the the Kao, Goulagou I, Goulagou II and Rambo deposits. The latest technical report filed in April 2014 also included the inferred resources of their newest discovery “North Kao”. Which brings the inferred resources for the karma gold mine from 956,000 oz of 1.04 g/t gold to 2.7039 Million oz of 1.05 g/t gold.
The high grade intercept the company has highlighted in hole RMB14RC-115 is somewhat unusual since most of the gold located within the deposit is low grade (~1.0 g/t gold). We’ve included the remaining drill results here.
Gold mineralization at Nami exhibits the same intrusive-hosted, shallow-dipping structural style found within Kao and North Kao, Karma’s two largest gold deposits, where continuity has been demonstrated over strike a length of 1.6 kilometres. North Kao was a blind discovery in 2013 and now has an inferred mineral resource of 1.66 million ounces (47.8 million tonnes at an average grade of 1.08 g/t gold; see March 13, 2014 news release). Like North Kao, the shallow dipping structures found at Nami can be drilled off rapidly for very low costs. Of note, oxide, transition and sulphide mineralization at Nami is all leachable, as per the Feasibility Study1.
The Karma Gold Project has been defined as a mesothermal, shear hosted gold deposit that formed during mountain building events. Gold deposits related to mountain building events are also referred to as orogenic gold deposits. Structural deformation of the Earth’s crust during these events creates “shear zones” which act as channels for hot-hydrothermal gold bearing fluids.
The property consists of two dominant structures. A north – south shallow dipping shear zone (known as the Ouahigouya Shear Zone) and a series of North to north east structures that cross cut the property including the north-south structures. These North to North East structures have been described as steeply dipping and generally have higher grades and thicker intercepts, especially when the two structures meet. It is possible that the drill rig may have hit the reported high grade 29 g/t gold interval at one of these intersections.
The deposit is characterized by three “ore” zones: An oxide, a transition and sulfide rich zone. As surface waters flowed through the rock, gold bearing metallic minerals can break down into oxides. As you go deeper, it becomes more difficult for surface water and oxygen to permeate and fewer minerals tend to become oxidized (transition) and below this penetration depth the original iron sulfide minerals are still intact. The company intends to focus its mine operation on the shallow oxide and transition zones which are much more easily and economically processed than the deeper sulfide zone.
RC drilling around the periphery of the Nami deposit was designed to test the strike extents of the dominant structural controls as mapped by a recently completed 20 line-km gradient array IP and magnetic survey. To date, True Gold has completed 2,812 metres in 20 holes in the Nami area as part of the greater 2014 exploration program. True Gold will continue testing this Nami extension along strike.
True Gold’s 2014 exploration program was launched in early May and is designed to both expand existing deposits and test new targets. Results from Nami are the first in a series of exploration updates we anticipate providing, as results become available. To date, we have completed approximately two thirds of a planned 15,000 metre combined core and RC drill program. In additional to drilling, 315 line-kilometres of IP and an extensive soil sampling program are also underway.
(1) See Technical Report, entitled “Updated Resource Estimate and Feasibility Study on the Karma Gold Project,” prepared by P&E Mining Consultants Inc. dated effective December 17, 2013, a copy of which is available under the Company’s profile on SEDAR at www.sedar.com.
Scott Heffernan, M.Sc., P.Geo., and the Vice President, Exploration for the Company, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same. Holes were drilled at an azimuth of 45, 90 and 360 degrees and with dips of -60 at Nami. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be 50 to 90 percent of the reported lengths. Samples were submitted to ALS Chemex in Ouagadougou, Burkina Faso for geochemical analysis for gold by fire assay of a 30-gram charge with an Atomic Absorption finish (AA). Samples with AA assays over 5.0 g/t were re-assayed by Fire Assay with gravimetric finish. Control samples (accredited standards, blanks and duplicate samples at the field and preparation stages) were inserted on a regular basis. Results were monitored on receipt of assays.
The potential quantity and grade of the Nami North target is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain that further exploration will result in the target being delineated as a mineral resource.
About True Gold
True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company’s board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.