Adventure Gold Inc. is pleased to announce the completion of an important mechanical stripping program on the New Beliveau Gold Deposit located on its 100 %-owned Val-d'Or East project.
Channel sampling work and drone surveying were also completed in June. The main goal of this exploration program was to expose, characterise and sample the new mineralisation discovered by the Company in 2014 and in the recent years. All the results should be received, processed and released by the first week of August.
Mechanical stripping and channel sampling
Two distinct areas, the East and the West strip zones were mechanically stripped for a total of 3,230 m² of new rock surface exposed. The East strip zone covering an area of 10 x 25 metres is located over the West dyke of the main dyke swarm adjacent to the west of the former Beliveau mine surface opening while the West strip zone covering a surface of 50 x 60 metres is located 150 metres west of the opening and 10 metres south of the new discovery made last year by the Company in hole PC-14-70 (12.4 g/t Au over 7 metres; see press release June 26, 2014). Both strip zones have exposed east-west gold structures and their geological relationship with the different north-south dykes. A comprehensive channel sampling was also completed on the East and West strip zones where a total of 634 samples were taken for 593 line-metres.
This program succeeded to confirm the presence of the interpreted east-west gold envelopes projected to the surface from the resource block model. It also appears that the gold envelope may be wider in some areas since the mineralization style is similar in appearance to the gold mineralization intersected by drilling as observed outside the block model gold envelopes. Pending assay results should confirm these observations.
Drone aerial surveying
Following the channel sampling over the mineralized zones, an unmanned aerial vehicle (UAV or drone) was use to survey the area. The purpose of this survey is to acquire an accurate 3D-like terrain model and high quality aerial orthophoto data set. All the information acquired from the drone will be processed to create a 3D map (centimeter accuracy in x, y and z) that will be integrated in the Company's geological and block models. Details obtained from the orthophoto data set will also significantly enhance the precision of the geological mapping of the strip zones and will help to better understand the structural control on the gold mineralization.
Val-d'Or East project
The 100%-owned Val-d'Or East project consists of three blocks of properties, totaling 8,982 hectares, in the eastern portion of the Val-d'Or-Malartic gold district. The main block of properties, which encompass the New Beliveau gold deposit is also adjacent to the producing Beaufor Gold Mine held by Richmont Mines. In the recent years, 18,375m of drilling was completed by AGE to delineate an initial gold resource at the New Beliveau gold deposit. Best drill results show widths ranging from 60 m to 300 m with grades between 1-3 g/t. Higher grade zones grading up to 12.9 g/t Au over 8 metres 10.4 g/t Au over 10 metres, 4.8 g/t Au over 33.1 metres and 2.7 g/t Au over 65.1 metres. In 2013, initial NI 43-101 resource estimate outlines close to existing infrastructure: 770,000 ounces of gold at 2.6 g/t Au in the inferred category (report available on AGE's website). Half of the resources are situated at, or near surface, and are considered open-pitable.
The project was also the site of profitable gold production from 1989 to 1993 when Cambior Inc. (currently IAMGOLD Corporation) mined the New Pascalis gold deposit (L.C. Beliveau Mine). The mechanized underground mine which utilized long-hole mining methods extracted a total of 1.8 Mt of ore at a grade of 3.2 g Au/t from the surface to a depth of 300 metres. The mine generated net profit after tax of $20M on 170,000 ounces produced. The production cost was $233 per ounce and the average selling cost was $508 during the production period (Cambior, Post-Mortem report 1996).
The New Beliveau gold deposit is located only 25 kilometres from the mining community of Val d'Or (35,000 people) and benefits from world-class mining infrastructure, expertise for underground and open-pit operations and highly qualified manpower. The Company believes that the strategic location of its gold deposit has the potential to positively impact the long-term viability and attractiveness for employment on its project. Key infrastructure on site includes an existing 340-metre deep shaft, underground development drifts on five levels, industrial access road, power line, a railway within 1.5 kilometres and custom milling facilities in Val-d'Or (four gold mills within 25 km). The existing mining infrastructure on site would allow for mining production within a short-term period (around 2 years). There are no significant environmental issues from past exploitation. Metallurgy of the ore from the past production suggests that the mineralized material from the property is compatible with the gold mills in the immediate area. There is strong municipal and provincial support for this project.
The exploration potential is very favorable for a large multi-million ounce gold deposit on the property. The Company has a short-term objective to define around 1M ounces of gold on its Val-d'Or East project. In 2015, the Company will continue to focus on advancing this potential development project with additional work. An economic study based on a starter open-pit operation scenario is scheduled for later this year.
Jules Riopel, Adventure Gold's Vice-president Exploration and Acquisitions, acting as the qualified person (as defined by National Instrument 43-101), reviewed and approved the scientific and technical information in this press release. He supervised the work program on the Project.