Nov 16 2010
Harmony Gold Corp. (TSX VENTURE:H) has announced that it has started a geological review and audit of data on the Caribou Gold Project with the objective of developing a diamond drilling program for 2011.
The Caribou Gold Project is located 80 kilometers northwest of the City of Halifax, Halifax County, Nova Scotia. The Caribou Gold Property is comprised of 16 contiguous claims covering approximately 256 hectares.
The Company is currently in the process of completing a review and audit of all data from previous exploration, including review of an independent National Instrument 43-101 compliant Resource Estimation on the Caribou Gold Property in 2006 by W.G. Shaw and Associates Ltd. The purpose of this review is for planning the steps necessary to upgrade the inferred resource to indicated, and expand known mineralized targets on the property. Toward the goal of upgrading the current resource, Harmony Gold Corp. intends on developing an initial 3,000 meter drilling plan for implementation during the first quarter of 2011.
The drilling program will focus on:
- Validating existing drill hole intercepts used in the resource estimate.
- Infill drilling with the objective of transferring the inferred resources to indicated resource.
- Step-out drilling on mineralized zones with the intent of increasing the overall resource on the property.
Harmony Gold Corp. entered into an option agreement with Scorpio Gold (Canada) Corp. (see news release 09/29/10) to acquire a 100% interest in the Caribou Gold Property. Scorpio holds an option to acquire a 100% registered and beneficial interest in the Caribou Gold Property, comprised of 16 contiguous mineral claims covering approximately 256 hectares, subject to a net smelter return royalty of 2.5% held by the underlying owner John Logan Enterprises Ltd.
About the Caribou Project
The Caribou Project has power and most infrastructures in place, including year round road access for development. The unique style of the Caribou deposit to Nova Scotia's Maguma type deposits in that it has large stockwork gold bearing mineralization in addition to sizable high grade gold veins. The deposit is open at both ends and at depth for expanding the already known Resource. The project is permitted for mine re-enter and certain development.
Underground production from the Caribou district was first recorded in 1869 and continued through 1947. During this period approximately 108,250 ounces of historical gold production was documented from the property in production records and reports. Mining and milling records indicate gold grades as high as 68 g/t locally, and an average mined grade of approximately 12 g/t. The most significant production period dates from 1934 to 1947, during which time Consolidated Mining and Smelting Company (Cominco) produced 43,205 ounces of gold from the district.
A renewed interest in the district took place during the 1980's with several companies optioning and exploring the property. Exploration during these years included surface and underground core drilling, underground development and test mining, bulk sampling, geological mapping and geochemical and geophysical surveys. The most recent exploration took place in 2007; Scorpio Gold Corp. conducted a small surface drilling program on the property totaling 698 meters targeting near-surface stockwork veins.
Lode gold mineralization in the district is controlled by a north-northwest striking low angle axial structure that cuts the 35km-long Caribou-Cochrane Hill Anticline. Gold mineralization occurs within an area 6 kilometers in length and 1 kilometer wide. Gold deposits are characterized by pipe shaped deposits of mineralization including bedding parallel quartz veins and quartz stockwork zones that have been described in the literature as saddle reefs.
W.G. Shaw and Associates Ltd. completed an independent National Instrument 43-101 compliant Resource Estimation on the Caribou Gold Property in 2006. The Inferred Resource Estimate using uncapped gold assays is 350,305 tonnes grading 8.41 g/t gold, or 94,763 ounces of gold. Using a statistical grade cap for gold of 47 g/t (to compensate for nugget effect) the Inferred Resource for the Caribou Gold Property is 350,305 tonnes grading 5.83 g/t gold, or 67,425 ounces of gold.
Mr. William Burnett, CPG, of Yukuskokon Professional Services, LLC., is a qualified person as defined by NI 43-101, and has reviewed and approved the information contained in this release.
Source: Harmony Gold Corp.