A revised resource figure for the Beaver Dam gold project in central Nova Scotia has nearly doubled the size of the known deposit.
Owner Acadian Gold (ADA-V) says the estimate, prepared by outside consulting firm Mercator Geological Services, puts the measured and indicated resource at 2.9 million tonnes grading 2.97 grams gold per tonne, or 2.27 grams per tonne if block grades are cut back to 12.75 grams per tonne. An inferred resource of 2.9 million tonnes grades 3.36 grams per tonne, or 2.63 grams after assays are cut to 12.75 grams.
The estimate used a cutoff grade of 0.3 grams per tonne above 200 metres vertical depth, and 1 gram per tonne at deeper levels. About 93% of the contained gold is in the Main Zone at levels above 200 metres.
An October 2004 estimate put the measured and indicated resource at 1.3 million tonnes grading 2.35 grams per tonne, or 2.22 grams per tonne after cutting. An inferred resource of 3.8 million tonnes graded 2.73 grams per tonne uncut or 2.09 grams cut; much of the new increase brings inferred resources into better-confirmed categories.
The new calculation was based on historical drilling and on an 18-hole program done by Acadian last year. Another 26 holes have been drilled and Acadian is awaiting assay results for them.
Acadian also completed an offering for 1 million units at 25 per unit, each consisting of a share with an attached warrant, exercisable at 35 for 18 months. The company has bought the 1,500-tonne-per-day Scotia mill at Gays River, about 50 km west of Beaver Dam, from HudBay Minerals (HBM-T), which has previously been used for test milling of mineralized material from Beaver Dam, with gold recovery around 88%.
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