Nov 7 2013
WCB Resources Ltd ("WCB" or the "Company") is pleased to announce that ongoing historical data compilation has identified potential extensions up to 2,000m to the north west of the previously mined Stage 6 open pit on the Umuna Zone on Misima Island, PNG. These extensions were initially identified by WCB's soil sampling in mid 2012.
Subsequent acquisition of the Misima Mines Pty Ltd database, which included channel sample data and geological mapping data, when combined with recently completed mapping has confirmed these anomalies as the likely extensions of the previously mined mineralisation in the Stage 6 pit. Historic mapping completed in 1974 prior to any surface disturbance also suggests that these anomalies are the extensions of the Umuna Zone.
Two spatially separate zones are indentified with controls on mineralisation interpreted as being both structural fault related and also in part stratigraphic related, similar to that mined in the open pits to the south. Results above 1.0 g/t Au include:
- Zone 1
- 14.4m @ 1.18 g/t Au and 1.3 g/t Ag
- 130.1m @ 1.62 g/t Au and 2.9 g/t Ag
- 21.2m @ 2.01 g/t Au and 2.6 g/t Ag
- Zone 2
- 13.2m @1.47 g/t Au and 1.9 g/t Ag
- 63.9m @ 1.00 g/t Au and 2.9 g/t Ag
- 160.8m @ 1.23 g/t Au and 2.1 g/t Ag
There are numerous channel sample results with length weighted intervals below 1.0 g/t Au in both Zone 1 and Zone 2. Scout drill testing has previously been completed in this region the results of which continue to be compiled. Updated mapping and channel sampling is continuing towards these zones to the north west.
Cameron Switzer, President and CEO said, "These results further support our concept that there continues to be significant upside in the Umuna Prospect and its potential extensions. We will work to further understand the intervening zone between the limits of the Stage 6 pit and this extension area to the north. This data in combination with our recently announced initial inferred mineral resource of 1.57M oz's Au and 8.5M oz's Ag clearly demonstrate the exploration potential of the Umuna Zone. All three prospects within the project area, the Misima Porphyry, the Umuna Zone and the Quartz Mountain Area continue to be upgraded with each phase of exploration activity."
Within the Umana Zone, approximately 86Mt was mined from 1989 to 2004 at an average grade of 1.46 g/t Au and 15.6 g/t Ag. Recoveries for gold averaged 91.5% and for silver 43.9% over the life of mine. Project economics were based on a USD$300 per ounce gold price. The nominal cut off grade used for extraction was 0.7 g/t Au. Mining activity ceased in May 2001 and milling of remnant stockpiles finished in 2004. This mining was via a staged development process that resulted in six (6) planned pit extensions (termed Stage 1 to Stage 6). In addition exploration success at Tonowak resulted in a subsequent final open pit on a major fault splay being mined. This staged mine development process resulted in fill material being placed in pit Stages 1 through to Stage 5. Outside of the Umana Zone there were three (3) small pits developed in the Quartz Mountain Area. Production from these pits, although minor, is included in the figures above.
WCB announced the delineation of an Inferred Mineral Resource on the Umuna Zone containing 1.57M oz's Au and 8.5M oz's Ag in an estimated 43.1Mt of material. This resource was based on extensions at depth of previously mined mineralisation (see press release dated October 7, 2013).
Historic channel sample data has been compared to recent WCB channel sample data with results indicating a high degree of correlation supporting the high confidence level of the data. Historic channel sample data was collected under the guidance of protocols and procedures outlined by Misima Mines Limited, a Placer Group of companies.
Comparison was then made to the WCB channel sample results and the Misima Mines Pty Ltd results (upon projection correction). The conclusion was that even though the exact sample intervals varied, overall the results showed a high degree of similarity and as such a high degree of confidence could be placed on the Misima Mines Channel Sample Data.
WCB channel samples have been collected with a 125mm grinder diamond blade in zones of hard material and with geological blade hammer in softer zones typically associated with clay alteration. Geological control at each sample ensured that care was taken to ensure accurate volume / hardness relationships remained consistent. Sampling was completed on a geological control basis rather than a set distance relationship to ensure a better understanding of controls on mineralisation. Appropriate QA/QC protocols were completed which included duplicate samples, standards and field blanks. All sample locations were surveyed using GPS devices in GDA94 projection. Samples are dispatched via commercial transport to an accredited laboratory in Brisbane, Australia for analysis. Results are routinely examined by a suitably qualified geologist to ensure laboratory performance meets required standards.
Results are reported above a cut off grade of 0.5 g/t Au.
Misma Mines Pty Ltd Database
Acquisition of the Misima Mines Pty Ltd Database (MMPL) from Barrick Papua New Guinea was completed in late 2012. This database includes an extensive array of surface sampling including 11,846 soil, 2,941 rock, 4,853 trench and 25,980 channel samples. Included in the MMPL data are 2,640 exploration drill holes of which 2,613 have assay data. In addition there are 467,316 located blast hole assays. Subsequently, drill core photographs, mine feasibility documentation, petrological data and production records including reconciliations have been sourced. Surfaces for original topography, current topography and as mined topography were compiled from this data. WCB has been actively validating, compiling and auditing this data. Appropriate QA/QC protocols were completed which included duplicate samples, standards and field blanks.
Mr. Cameron Switzer, BSc (Hons), MAIG (3384), MAUSIMM (112798), President and Chief Executive Officer of WCB Resources, is a qualified person as defined by National Instrument 43-101. He is responsible for quality control of exploration undertaken by WCB. Mr. Switzer has reviewed and approved the technical information in this release.