Gold-Ore boosts Bjorkdal resource (March 24, 2008)

Gold-Ore Resources (GOZ-V, GREXF-O) has more than doubled gold ounces in the measured and indicated category at its Bjorkdal mine in Sweden.

The company is working on extending the underground life to three years and says that so far, the potential for expansion is good.

Indicated resources from the underground are now 467,000 tonnes grading 4.72 grams gold per tonne for 70,900 oz. gold. Inferred resources total 421,000 tonnes grading 5.65 grams gold per tonne for 76,500 oz. gold. The estimate used a cutoff of 1.5 grams gold per tonne.

Measured and indicated resources for the open pit now stand at 8.9 million tonnes grading 1.7 grams gold for 487,400 oz., while inferred resources are 18.1 million tonnes grading 1.53 grams gold for 888,500 oz. gold. A cutoff grade of 0.3 gram gold per tonne was used for the open pit.

In total, measured and indicated resources have increased by 343,300 oz. gold while inferred resources are up about 174,000 oz., although the previous 2005 resource estimate used a cutoff grade of 0.5 gram gold.

By the end of the year, Gold-Ore plans to increase annual production at Bjorkdal to 50,000-75,000 oz. gold. In 2007, production totalled 19,500 oz. gold; since then, Gold- Ore has ramped up to an annual rate of 24,000 oz.

Currently, the company is processing 800 tonnes per day from the underground, 1,300 tonnes per day from the open pit and 1,200 tonnes per day form surface stockpiles.

Gold-Ore would like to boost production from the open pit to 1,700 tonnes per day and underground production to 1,500 tonnes per day.

A feasibility study has begun, which requires the stoping of four veins. So far, one vein is 40% complete and another, 10%.