MDN updates Tulawaka East zone estimate

Minieres du Nord (MDN-T) has completed a resource estimate of the East zone deposit on the Tulawaka gold project in northern Tanzania. The new estimate employs drill data gathered since December 2000.

A polygonal resource estimate was completed on longitudinal sections, using capped grades and the true thickness of intercepts.

At a cutoff grade of 1 gram gold per tonne, indicated resources are estimated at 1.2 million tonnes grading 18.8 grams, with another 230,000 tonnes of inferred resources running 23 grams.

When the cutoff grade is upped to 5 grams, indicated resources fall to 865,000 tonnes grading 25.7 grams and inferred resources slip to 107,000 tonnes of 45.7 grams.

Resources were also calculated by ordinary kriging, using capped, 1-metre-long gold composites in a three-dimensional block model.

At a 1-gram-gold cutoff, indicated resources are pegged at more than 1.3 million tonnes grading 15.5 grams. More than two thirds of this lies in vein 1, which grades nearly 20 grams per tonne. Inferred resources add about 221,000 tonnes grading 10 grams.

Montreal-based Geostat Systems International audited the two methods and noted that the kriged resource model was correctly constructed and favourably reflected the geological resources of the deposit. The company described the polygonal resource estimate as "adequate."

A previous resource estimate, announced in April of last year, calculated 1.7 million tonnes grading 19 grams gold per tonne in the East zone to a depth of 135 metres. Of that, 1.4 million tonnes grading 18.9 grams fell into the measured and indicated categories.

At the West zone, a smaller, inferred resource was estimated at just over 700,000 tonnes grading 2.9 grams gold down to a depth of 30 metres.

"The current resource calculation incorporates a much higher density of drilling than previous evaluations, rendering the estimate so much more reliable," says MDN’s Carlos Bertoni in a prepared statement.

MDN says the measured resource category is not being used because the deposit is only known from drilling intersections.

Montreal-based MDN-T holds a 30% interest in Tulawaka. Barrick Gold (ABX-T) came by its 70% stake via its takeover of junior Pangea Goldfields in 2000. Barrick also retains a right-of-first-refusal on its partner’s interest.