Golden Tag Files Independent 43-101 Technical Report with Updated Mineral Resource Estimate for the San Diego Project, Durango, Mexico
MONTREAL, QUEBEC -- (Marketwired) -- 04/23/13 -- Golden Tag Resources Ltd. (TSX VENTURE: GOG) is pleased to report the recent filing of the 43-101 Technical Report on the 2013 Revised Resource Estimate completed by SGS Canada Inc. for the San Diego Deposit located in the Velardena camp in Durango State, Mexico. The report is available through www.sedar.com and at Golden Tag's Web site at www.goldentag.ca. The Resource Estimate was reported in a press release on February 26, 2013 (errata - press release March 04 2013) and reproduced below as Tables 1 and 2. The San Diego Property is a 50-50 joint venture between Golden Tag and Golden Minerals Company (NYSE Amex: AUMN) (TSX: AUM)Golden Tag is the operator and is earning an additional 10% interest to a 60% interest by funding additional exploration on the property.
The Resource Study was undertaken by SGS-Canada with Indicated and Inferred Resources estimated and classified using current CIM Standards and a block modeling interpolation with geo-statistical analysis. The study evaluated 23 mineralized zones recognized on the property and developed a three-dimensional model of mineralization. The model, along with the results of 34 separate block models, provides a significantly improved database to support further work and study. Further details of the approach and methodology are available in press release of Feb. 26th 2013 and in the Technical Report.
Table 1. Summary of Mineral Resources, San Diego Property, Durango State, Mexico
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INDICATED Tonnage
RESOURCES Cut-Off (g/t) (t) Au (g/t) Ag (g/t) Pb (%)
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TOTAL BULK
ZONES (3) 52 14,800,000 0.06 51 0.65
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TOTAL OXIDE
VEINS 133 311,000 0.43 211 1.15
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TOTAL SULPHIDE
VEINS 52-125 1,373,000 0.20 123 1.23
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TOTAL
INDICATED 16,484,000 0.08 60 0.71
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INDICATED Ag.EQ(2)
RESOURCES Zn (%) Cu (%) Ag.Eq(2)(g/t) Silver ounces ounces
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TOTAL BULK
ZONES (3) 1.17 0.12 94 24,070,000 44,510,000
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TOTAL OXIDE
VEINS 0.90 0.00 234 2,110,000 2,330,000
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TOTAL SULPHIDE
VEINS 1.85 0.10 197 5,430,000 8,680,000
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TOTAL
INDICATED 1.22 0.11 105 31,610,000 55,520,000
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INFERRED Tonnage
RESOURCES Cut-Off (g/t) (t) Au (g/t) Ag (g/t) Pb (%)
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TOTAL BULK
ZONES(3) 52 28,650,000 0.05 46 0.67
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TOTAL OXIDE
VEINS 133 288,000 0.43 238 0.81
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TOTAL SULPHIDE
VEINS 52-125 13,100,000 0.11 93 1.41
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TOTAL INFERRED 42,038,000 0.07 62 0.90
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INFERRED Ag.EQ(2)
RESOURCES Zn (%) Cu (%) Ag.Eq(2) (g/t) Silver ounces ounces
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TOTAL BULK
ZONES(3) 1.08 0.10 88 42,440,000 80,690,000
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TOTAL OXIDE
VEINS 0.91 0.10 261 2,200,000 2,410.000
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TOTAL SULPHIDE
VEINS 1.83 0.10 171 39,170,000 72,230,000
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TOTAL INFERRED 1.31 0.10 115 83,810,000 155,330,000
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(2) See Note 2 at bottom of Table 2.
The 23 mineralized zones at San Diego represent a variety of geological settings and mineralization types, from narrow high-grade veins to bulk mining opportunities of the Fernandez Zone. These zones are individually reported and studied in the technical report. The variety of mineralized zones lends itself to the use of four cut-off grades which ultimately reflect varied mining widths and costs of potentially applicable mining methods. The grand total of Inferred and Indicated resources in table 1 are clearly weighted (biased) by the Bulk zones due to their higher tonnage and lower grade. Table 2 applies cut-off grades of 52, 81, 102 and 125 g/t.Ag.Eq. and provides a breakdown of the Resources into Bulk Zones (Fernandez Endoskarn and Fringe, Trovador); the sulphide Vein Zones of Montanez (3 Zones); the generally narrow sulphide vein zones (17 veins); and the oxide zones. A new Corporate presentation available at Golden Tag's Web site (www.goldentag.ca) further explains the significance of this Resource breakdown.
Table2. Summary of Mineral Resources in 23 Zones on the San Diego Property, Durango State, Mexico
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SAN DIEGO RESOURCE CoG
ESTIMATE (g/t) Indicated Resources
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Ag.EQ(2
Tonnes Au Ag Pb Zn ) Ag Oz
Fernandez Zone (Mt) g/t g/t % % g/t (M)
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Endoskarn 52(1) 9.3 0.06 55 0.59 1.33 100 16.5
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Fringe 52 5.5 0.06 43 0.74 0.89 83 7.6
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Sub-total 14.8 0.06 51 0.65 1.17 94 24.1
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SAN DIEGO RESOURCE
ESTIMATE Inferred Resources
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Tonnes Au Ag Pb ZnAg.EQ(2) Ag Oz
Fernandez Zone (Mt) g/t g/t % % g/t (M)
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Endoskarn 9.6 0.04 57 0.6 1.3 101 17.4
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Fringe 19.1 0.05 41 0.7 0.97 81 25.1
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Sub-total 28.7 0.05 46 0.7 1.08 88 42.4
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Vein & Mantos Zones Indicated Resources
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Trovador 52 0.29 0.09 87 0.72 4.15 194 0.81
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Montanez (3) 125 0.56 0.31 101 1.36 1.43 170 1.82
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Vein Zones (17) 52 -125 0.53 0.14 166 1.38 1.03 227 2.80
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Oxide Zones 133 0.31 0.43 211 1.15 0.9 234 2.11
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Sub-total 1.69 0.24 139 1.22 1.68 204 7.54
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TOTAL Oxide & Sulphide
Zones 16.5 0.08 60 0.71 1.22 105 31.6
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Vein & Mantos Zones Inferred Resources
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Trovador 4.41 0.04 68 0.9 1.55 124 9.6
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Montanez (3) 1.57 0.18 91 1.5 1.9 174 4.6
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Vein Zones (17) 7.12 0.14 109 1.7 1.99 200 25.0
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Oxide Zones 0.29 0.43 238 0.8 0.91 261 2.2
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Sub-total 13.39 0.12 96 1.40 1.81 173 41.4
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TOTAL Oxide &
Sulphide Zones 42.0 0.07 62 0.9 1.31 115 83.8
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Note: Corrected tables 1 & 2 reproduced here from press release on March 4th 2013. (1) Block Caving/Mechanized Bulk Mining Cut-Off Grade (CoG) of 52 g/t Ag.EQ = NSR $30/t. See NR Feb 26th 2013 or Technical Report for details. (2)(i) Ag.EQ: Silver Equivalent ounces based on 3-yr trailing average commodity prices of US$1455/oz.Au; US$28.10/oz.Ag;US$1.00/lb Pb and US$0.96/lb Zn applying estimated Mill and Smelter recoveries. (3) Bulk Zones includes the Fernandez Zone (Fringe & Endoskarn) and Trovador; (4) Totals may not add up correctly due to rounding.
Additional Mineral Potential:
SGS-Canada recognizes in addition to the above-mentioned Inferred and Indicated Resources that there are areas within recognized structures and depth extensions which will require additional drilling and can offer additional Mineral Potential of between:
20 to 50 million tonnes grading 100 to 150 g/t AgEQ
The Additional Mineral Potential includes those tonnes contained within the 23 outlined mineralized envelopes that fall under either one of those 2 categories:
-- Unclassified tonnes above applicable cut-offs;
-- Classified resources that are below cut-offs;
-- As well as the down-depth and strike-length extensions to the
mineralized structures.
Cautionary Statement:
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The potential quantity and grade reported as Mineral Potential, is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Conclusion of the 43-101 Independent Technical Report
SGS concludes: "The San Diego project and surrounding properties have a rich mining heritage with a history of producing world class mines. The location of the property within this camp means that it has access to major infrastructure and a qualified workforce. Recent drilling and 3D modeling has shown that the polymetallic deposits located on the property have a predictable geometry and potential for significant tonnage additions. The resources comprise 23 separate silver-rich zones, each of which contains additional exploration opportunities. This family of structures provides flexibility in the future mine-planning in terms of methods and sequencing. The potential for the future development of a long term underground mining operation at San Diego is considered very good, and it could represent a new "Center of Mineralization" within the Velardena mining camp."
SGS further stated: "San Diego is host to a variety of Silver-rich and Pb-Zn bearing zones variably associated with a Diorite Intrusion which lies in the center of the property. The property was previously known for narrow, high-grade Ag-Pb-Zn Veins from surface to 400-500m depth. New drilling has shown that below 500m, veins often widen and occur with massive sulphides replacing carbonate, and/or in zones of skarn and stockwork systems. Highlights from the 2011 and 2012 drill campaigns include:
-- Fernandez Zone: a very large skarn deposit with high tonnage and
amenable to bulk mining methods. This zone remains open to West and
down-plunge;
-- Discovery of the West Contact Zone that could represent the shallow up-
dip edge of a second Fernandez-style zone;
-- Significant potential to expand resources in down-dip and up-dip
extensions to the historically important Trovador Vein;
-- Ten new vein and mantos zones: including Lorenzo, EWFZ, Rata-Sub, MS,
Panda and the South Skarn zones;
-- ... Excellent potential in all 23 zones for further growth in resources.
This potential exists within the modeled geological solids and as
lateral and depth extensions."
Qualified persons - Resource:
David Rigg, P.Geo and CEO of Golden Tag, Qualified Person (QP) in accordance with NI 43-101 has prepared this press release.
Cautionary Statement: Statements in the release that are "forward looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. For a discussion of the risk factors that are inherent in the Mining Industry see our public filings at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Golden Tag Resources
Marc A. Carrier, President and C.F.O.
(514) 426-8542
(514) 426-8543 (FAX)
pres@goldentag.ca
www.goldentag.ca
