Feb 4 2011
Auryx Gold Corp. (TSX: AYX) has announced the results of the NI 43-101 compliant resource "re-estimation" by BMRE Resource Solutions and audited by SRK, Johannesburg.
At a 0.8 g/t cut-off, the grade has increased 31% to 1.94 g/t with only a corresponding 13% decrease in contained metal. This resource estimate does not include the results of any drilling completed since Auryx's acquisition of Otjikoto.
Auryx' President, Mr. Searcy comments: "We are extremely pleased with the results of this resource estimate. The significant grade increase combined with only a modest loss in metal content highlights the quality and potential of the resource at Otjikoto. The new resource estimate incorporates a greater degree of geologic data and a more sophisticated treatment of the coarse gold material from a consultant, BMRE, that is experienced modelling the coarse gold effect. The results demonstrate that a significant high-grade core exists within a broad, lower grade envelope. As such, the deposit provides for a greater range of options at the time of development and production."
While different geo-statistical methods were used between this and the previous estimate, the key practical differences between the two estimates are that the new resource: incorporates more geologic data, provides for variable capping of high grade intercepts across different zones instead of using one fixed cap level, models smaller block sizes, and constrains the radius of influence for each sample more tightly than the previous model. The mineralization at Otjikoto was originally interpreted as being stratabound, largely confined to one sedimentary layer; however, further work revealed the presence of high-grade structures within that layer. The conservative capping, large block sizes, and limited spatial constraints on samples in the previous resource estimate served to smear the high-grade zones across greater volumes. This new resource estimate has sought to include a wider range of data to in attempt to get a truer picture of the gold mineralization at Otjikoto.
In addition, the application of Uniform Conditioning, has resulted in the definition of a recoverable resource, which is the principal reason for the change in the grade and metal content. Also, previously there was not a cut-off applied to the block model estimates, but rather to the wireframe definition. The cut-off previously applied to the generation of the wireframes was 0.4g/t, and the cut-off now applied to the Block model is 0.8g/t.
The net effect of these differences, at a 0.4 g/t cut-off, is a new resource estimate with very similar grade and tonnage to the previous estimate. However, at a cut-off of 0.8 g/t the new resource estimate has significantly fewer tonnes of much higher grade, which is a favourable trade-off from a development perspective.
Source: Auryx Gold Corp.