Gold Reserve’s Brisas resource up by a million

A new resource estimate at Gold Reserve’s (GRZ-T) Brisas gold and copper project in southeastern Venezuela has pegged the resource at 10.97 million ounces and 1.4 billion pounds copper in the measured and indicated categories. The independent estimate increases the resources in these categories by about one million ounces gold from a year ago.

About half of the new gold ounces came from 15,000 metres of infill drilling which bumped up inferred resources to the indicated category, while the other half can be attributed to the use of higher gold and copper prices in the new estimate. The previous estimate was based on US$325 for gold and US$0.85 copper per pound which gives about the same cut-off grade as the new one which is based on US$350 gold and US$0.90 copper.

The resource estimate performed by Pincock Allen and Holt, according to NI 43-101 standards, outlined 502.7 million tonnes grading 0.678 gram gold per tonne and 0.126% copper at a 0.4 gram gold equivalent cutoff grade, in the measured and indicated categories.

There are another 126.5 million tonnes grading 0.649 gram gold and 0.133% copper in the inferred resource category or 2.64 million ounces of gold and 370 million pounds of copper contained.

The results of the recent drilling indicate that the deposit still remains open at depth along strike and to the southwest.

The reserve estimate analysis for the Brisas deposit based on a 70,000 tonne per day plant and using traditional smelter costs is expected to be done by early August by Pincock Allen & Holt.

Kvaerner had been selected to complete the bankable feasibility study for the development, construction and operation of the Brisas gold-copper project last November. The study contemplates a 50,000 tonne per day conventional milling facility utilizing two primary cases.

Brisas is estimated to produce approximately 475,000 ounces of gold and 60 million pounds of copper per year. The company plans to produce gold dor on-site and ship copper concentrates to an off-site smelter.

Gold Reserve expects to complete the bankable feasibility study and make a production decision by the end of the year.

There have been no further developments toward combining operations with the neighbouring Las Crisinas gold project, according to Doug Belanger, President of Gold Reserve.