TORONTO, ONTARIO–(Marketwired – Feb. 23, 2017) – Satori Resources Inc. (TSX VENTURE:BUD) (“Satori” orthe “Company”) is pleased to announce a new resource estimate for its 100% owned Tartan Lake Gold Mine Project, located within the prolific Flin Flon mining district, in Manitoba, Canada.
Highlights:
- The updated Mineral Resource estimate, using a cut-off grade of 3.0 grams per tonne of gold (“g/t Au“), comprises an Indicated Resource of 1,180,000 tonnes at 6.32 g/t Au for 240,000 ounces and an Inferred Resource of 240,000 tonnes at 4.89 g/t Au for an additional 38,000 ounces
- Indicated resource gold ounces and grade have increased by 135% and 24%, respectively, compared to the 2012 mineral resource estimate, due to the successful conversion of inferred ounces to the indicated category
- Mineralized Resource includes a strike length of 625 metres down to a maximum depth of 575 metres below surface in the Main Zone and 275 metres below surface in the South Zone
- The Main and South Zones remain open along strike and down-dip beyond the limit of the current resource model
The Mineral Resource estimate was prepared under the direction of Mining Plus Canada Consulting Ltd. (“Mining Plus“) in accordance with National Instrument 43-101 (“NI 43-101“) and the results are sumarized in Table 1 at a range of cut-off grades.
Table 1: 2017 Mineral Resource Statement, Tartan Lake Gold Mine Project
| Cut-off Grade | Tonnes | Grade (g/t Au) | Au Ounces | |
| Indicated Resources | ||||
| 0.0 g/t | 4,720,000 | 2.42 | 367,000 | |
| 2.0 g/t | 1,820,000 | 4.97 | 290,000 | |
| 3.0 g/t | 1,180,000 | 6.32 | 240,000 | |
| 4.0 g/t | 830,000 | 7.55 | 201,000 | |
| Inferred Resources | ||||
| 0.0 g/t | 1,210,000 | 1.92 | 75,000 | |
| 2.0 g/t | 450,000 | 3.74 | 54,000 | |
| 3.0 g/t | 240,000 | 4.89 | 38,000 | |
| 4.0 g/t | 140,000 | 5.93 | 27,000 | |
| Notes: | ||||
| 1. | CIM Definitions Standards were followed for mineral resources | |||
| 2. | The Qualified Person is Allan Armitage, Ph.D., P. Geol, of GeoVector Management Inc. | |||
| 3. | All figures are rounded to reflect the relative accuracy of the estimate | |||
| 4. | Mineral resources are not mineral reserves and do not have demonstrated economic viability | |||
| 5. | The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues | |||
| 6. | Effective date of the mineral resource estimate is February 20, 2017 | |||
Will Ansley, President and Chief Executive Officer of Satori said “The new mineral resource estimate focused on a higher cut-off grade concept, reflecting the high-grade nature of the Tartan Lake deposit, upgraded the resource models, geostatistical analysis and specific gravity assumptions utilized in the previous report.”
“The result is a significant increase in both the overall confidence level (to indicated from inferred) and gold grade (to 6.32 g/t from 5.12 g/t), which is consistent with what was previously milled in 1988-1989 at the Tartan Lake. At a conceptual milling rate of 450 tonnes per day our resource tonnage could potentially support several years of mill feed which is a tremendous head start for the Company as we continue to explore the property.”
2017 Mineral Resource Estimate
In the 2017 Mineral Resource Estimate update for the Tartan Lake Gold Mine Project, based on a 3.0 g/t Au cut-off grade, mineral resources in the Indicated category was 1.18 million tonnes grading 6.32 g/t Au for 240,000 ounces of gold. This represents a 90% increase in tonnes, 24% increase in grade, and 135% increase in ounces compared to the 2012 Mineral Resource Estimate. The increase in tonnes and ounces were due to the successful upgrade of mineral resources from the Inferred category. Mineral resources in the Inferred category was 0.24 million tonnes grading 4.89 g/t Au for 38,000 ounces. This represents a 77% decrease in tonnes, 7% decrease in grade, and 79% decrease in ounces compared to the 2012 Mineral Resource Estimate. A comparison between the 2012 and 2017 Mineral Resource Estimates is summarized in Table 2 below.
Table 2: Comparison of 2012 vs. 2017 Resource Estimate at Tartan Lake (using a 3.0 g/t cut-off)
| Tonnes | Gold | ||||||
| Grade (g/t) | Ounces | ||||||
| Indicated Resources | |||||||
| 2017 | 1,180,000 | 6.32 | 240,000 | ||||
| 2012 | 620,000 | 5.12 | 102,000 | ||||
| % Difference | +90 | % | +24 | % | +135 | % | |
| Inferred Resources | |||||||
| 2017 | 240,000 | 4.89 | 38,000 | ||||
| 2012 | 1,040,000 | 5.27 | 177,000 | ||||
| % Difference | -77 | % | -7 | % | -79 | % | |
The drilling database utilized in the resource estimation was closed as of December 31, 2016 and comprises 501 diamond-drill holes totaling 79,600 metres including drill holes from the 2016 exploration program which consisted of 6 diamond drill holes totaling approximately 1,600 metres (see Satori news release dated December 7, 2016).
For the 2017 resource estimate, a total of 15 sub-parallel, three-dimensional (“3D“) wireframe grade control models were constructed. The 3D grade control models were built through visually interpreting the mineralized zones from cross sections using histograms of gold values. Polygons of mineral intersections were made on each cross section and wireframed together to create contiguous resource models in GEOVIA GEMS 6.7.3 software. The Tartan Lake grade control models define east-west trending, steep north dipping (75° – 85°) to steep south dipping gold zones. The gold zones extend for approximately 625 metres along strike and to depths of up to 575 metres in the Main Zone and 275 metres in the South Zone.
The Tartan Lake grade shells were used to constrain 1.0 metre composite values chosen for interpolation, and the mineral blocks reported in the estimate of the mineral resource. A block model in Metric Mine Grid space (origin: x – 1775, y – 4725, z – 2025, no rotation) with block dimensions of 5 x 1.5 x 5 metres in the x (east), y (north) and z (level) directions was placed over the grade shells with only that proportion of each block inside the shell recorded as part of the resource estimate (% Block Model).
Grades for Au (g/t) were interpolated into blocks by the inverse distance squared (ID2) method. Three passes were used to interpolate grade into all of the blocks in the grade shells. For Pass 1 the search ellipse size was set at 20 x 20 x 6 metres in the X, Y, Z direction (approximate range based on variography); for Pass 2 the search ellipse size was set at 40 x 40 x 12 and for Pass 3 the search ellipse size was set at 80 x 80 x 12. Blocks were classified as Indicated if they were populated with grade during Pass 1 and 2 of the interpolation procedure. Pass 3 search ellipse size was set to assure all remaining blocks within the grade shell are assigned a grade. These blocks were classified as Inferred.
Grades were interpolated into blocks using a minimum of 8 and maximum of 12 composites to generate block grades during Pass 1 and Pass 2 (maximum of 4 samples per drill hole), and a minimum of 4 and maximum of 12 composites to generate block grades during pass 3.
High grade composites were capped at 55 g/t gold (99.3 percentile) to limit their influence during the grade estimation, a total of 31 composite samples ranging in grade from 55.8 g/t to 199.5 g/t gold were capped to 55 g/t.
Due to the relative sparseness of specific gravity (“SG“) data, an average value is used for the resource estimation. An SG value of 2.85 is used for the current resource estimate.
2017 Exploration Program
Exploration programs are currently being designed to in-fill and expand the existing resource model, as well as evaluate and test a number of gold showings and regional targets identified on the property. The Main and South Zones remain open along strike and down-dip beyond the limit of the current resource model at 575 metres and 275 metres below surface, respectively.
Qualified Person
The mineral resource estimate was prepared and reviewed by Mr. Allan Armitage, Ph.D., P. Geol, of GeoVector Management Inc., a consultant for Mining Plus. Mr. Armitage is an independent Qualified Person in accordance with the requirements of National Instrument (NI) 43-101 and has approved the scientific and technical disclosure herein. A Technical Report authored by Mining Plus will be filed on SEDAR within 45 days of this news release.
ABOUT SATORI RESOURCES INC.
Satori is a Toronto-based mineral exploration and development company whose primary property is the Tartan Lake Gold Mine Project (100% interest), located in the prolific Flin Flon mining district, in Manitoba, Canada. The Tartan Lake Gold Mine had historical high-grade production of 48,000 ounces of gold between 1987-1989. The Project hosts a 450 tonne per day gold concentrator and related infrastructure, along with a decline ramp providing access to developed gold mineralization within the Main and South Zones to a vertical depth of 320 metres.
For further information, please visit www.satoriresources.ca.
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release of Satori contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Satori’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.
Chief Executive Officer
Satori Resources Inc.
[email protected]
www.satoriresources.ca
