Kandia Gold Resource
| Material Type | Indicated | Inferred | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Tonnes (t) | Au (g/t) | Au (ounces) | Tonnes (t) | Au (g/t) | Au (ounces) | Tonnes (t) | Au (g/t) | Au (ounces) | |
| Oxide | 131,300 | 1.0 | 4,100 | 51,000 | 1.3 | 2,100 | 183,000 | 1.1 | 62,000 |
| Fresh | 1,841,500 | 1.0 | 58,700 | 1,327,200 | 1.0 | 42,500 | 3,169,000 | 1.0 | 101,200 |
| Total | 1,973,000 | 1.0 | 62,900 | 1,379,000 | 1.0 | 44,600 | 3,351,000 | 1.0 | 107,500 |
| Wa Project | Indicated | Inferred | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Tonnes (t) | Au (g/t) | Au (ounces) | Tonnes (t) | Au (g/t) | Au (ounces) | Tonnes (t) | Au (g/t) | Au (ounces) | |
| Julie West | 383,000 | 4.2 | 52,100 | 32,000 | 4.0 | 4,100 | 415,000 | 4.2 | 56,200 |
| Kandia 4000 Zone | 1,973,000 | 1.0 | 62,900 | 1,150,000 | 0.8 | 31,200 | 3,123,000 | 0.9 | 94,100 |
| Kandia 8000 Zone | 229,000 | 1.8 | 13,400 | 229,000 | 1.8 | 13,400 | |||
| Total | 2,356,000 | 1.5 | 115,000 | 1,411,000 | 1.1 | 48,700 | 3,767,000 | 1.4 | 163,700 |
| Note: A 0.5g/t Au cut-off has been used for the 4000 Zone, and a 1.0g/t Au cut-off has been used for the 8000 Zone | |||||||||
The Kandia prospect is located in north-west Ghana and forms part of Castle’s large Wa Project.
Gold mineralisation was first discovered on this greenfields prospect by Castle in 2010 with the first resource drilling being undertaken in 2011. Since that time Castle has completed extensive soil sampling, airborne geophysical surveys and completed 264 RC drill holes for 19,541m.
The Resource estimate for Kandia was completed for two mineralised zones named the “4000 Zone”and “8000 Zone” that are situated along a regionally mineralised granite/sediment contact termed the Kandia Trend that can be traced for over 20km.
Gold mineralisation at Kandia is hosted within silicified and weakly pyritic sediments (shales and siltstones) and generally forms a regular west dipping zone within a broader sediment package bounded to the east by granite.
Resource Statement and Parameters
The resource estimate was completed using the following parameters:
- The Mineral Resource estimate for the Kandia Gold Prospect in north-west Ghana was completed in November 2011 by Castle Minerals Limited using mining consultants Runge Limited for the Surpac block modeling and Inverse Distance (ID2) interpolation functions.
- The resource consists of two separate zones of sediment hosted gold mineralisation named the ‘4000 zone’ and ‘8000 zone’ that have respective strike extents of 800m (1,104,160mN to 1,104,960mN) and 260m (1,107,740mN to 1,107,900mN). The vertical extent of the resource is 170m from surface at 320mRL to 150mRL.
- Mineralisation is hosted within Lower Proterozoic Birimian (~2.2Ma) metasediments intruded by granite/granodiorite sills and dykes in both the footwall and hangingwall.
- Of the 264 RC drill holes in the database, 81 were used in the resource estimate. Drilling density varied from 80m by 40m and 40m by 40m to 20m over the deposit. Drill holes are orientated 50° to the east (UTM grid), with the exception of the 8000 zone where holes were oriented 50° to 130°.
- The RC sampling procedures are considered to be of industry standard with samples collected as follows; bulk samples were collected at 1m intervals below a free standing cyclone in large plastic retention bags. The 1m bulk samples were split using a riffle splitter at the time of drilling and then stored off site. Five metre composite ‘spear’ samples were prepared and submitted to the laboratory. If the 5m composite returned an assay greater than 0.1g/t Au, the individual 1m samples in the interval were assayed.
- Samples were sent to Transworld/Intertek Laboratory in Tarkwa, Ghana for analysis. Samples were prepared by drying, crushing to -6mm and then pulverising to <75 microns (-200 mesh). Analysis for Au was by 50g Fire Assay with an atomic absorption spectrometry (AAS) finish.
- Quality control samples were collected on a regular basis and the results have been reviewed by Castle and are considered to be satisfactory.
- Drillhole collars in the resource area have been surveyed by Coffey Mining (Coffey) using a Sokkia Stratus DGPS to an accuracy of 10mm.
- Down hole surveys were completed using a single shot Eastman camera.
- Wireframes were constructed using cross sectional interpretations based on a nominal 0.2g/t Au cut-off grade.
- Samples within the wireframes were composited to even 1.0m intervals. A 10g/t Au high grade cut was determined by statistical analysis and applied to the 1m composite values.
- A Surpac block model was used for the estimate with a block size of 20m NS by 5m EW by 5m vertical with sub-cells of 5m by 1.25m by 1.25m. The model was rotated 30° to align with the strike of the deposit.
- Inverse Distance (ID2) interpolation was used for grade interpolation with the search ellipse orientated to match the lode geometry. A first pass radius of 60m was used with a second pass radius of 100m. This was increased to 180m for the third pass to fill all remaining un-estimated blocks. Greater than 92% of blocks were filled in the first two passes.
- No bulk density test work has been completed. A bulk density value of 2.0t/m³ was assigned to the oxide material, and 2.55t/m³ assigned to the fresh material. These values are considered reasonable for this style of mineralisation.
- The Mineral Resource classification complies with JORC (2004) Guidelines and is based on geological confidence, including drill spacing, sample density and continuity of the geological model.
- No assumptions have been made about mining, metallurgy or processing methods.
- Totals have been rounded.
Information in this announcement that relates to Exploration Results is based on information compiled by Michael Ivey, Castle Minerals Limited Managing Director, who is a Member of The Australasian Institute of Mining and Metallurgy. Michael Ivey is a permanent employee of Castle Minerals Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 JORC Code. Michael Ivey consents to the inclusion in the announcement of the matters based on the information in the form and context in which it appears.
Updated December 2011