Crew ups resource at Nalunaq (September 02, 2005)

Exploration drilling at the Nalunaq gold mine in southern Greenland has allowed owner Crew Gold (CRU-T) to block out a significantly larger inferred resource.

The new resource, reviewed by consulting firm Snowden Mining Industry Consultants, amounts to 1.3 million tonnes grading 18 grams gold per tonne. The tonnage and grade are both uncertain, thanks to a strong nugget effect and the narrow mineralized structures, and the resource can only be classified as inferred.

Crew plans exploration drifting and bulk sampling to confirm the grades.

The tonnage itself is an arbitrary “payable” quantity, taken to be 40% of the rock volume outlined in drilling. In all, about 3 million tonnes is indicated by drill intersections, but widths are variable enough that only 40% is being taken into the resource. In early production since May 2004, about 60-80% of the drilled rock volume was reliably mined.

The resource is in four mineralized zones, of which the south block, with 1.6 million tonnes (520,000 payable) is the largest.

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