Pacific Minerals increases gold resource at 217 project

Vancouver — Pacific Minerals (PMZ-V) has tabled a new, independent resource estimate of its in-pit gold resource at the 217 project, Inner Mongolia, China.

The estimate was prepared by Westervelt Engineering of Vancouver, B.C., and indicates that the Southwest zone, which lies 1,800 metres south of the Northwest zone, the project’s main deposit, hosts an inferred resource of 14.79 million tonnes averaging 1.25 grams gold per tonne, or 595,000 contained ounces. These resources were estimated using a 2:1 strip ratio.

“The new estimation has significantly enhanced the size, grade and scope of the 217 project,” commented Daniel Kunz, president of Pacific Minerals. “Of particular economic significance, the gold grade of the inferred resources in the Southwest zone is 28% higher than the grade of the in-pit resources delineated to date in the Northwest zone. Since this deposit outcrops along its strike length, it lends itself to efficient open-pit mining.”

The new resource estimate will be incorporated into an independent scoping study that is scheduled to be released later this year. The study will outline various development scenarios to take advantage of low Chinese development and mining costs. In addition to examining the economic viability of the 217 project, the scoping study will provide a development strategy to achieve early production from planned near-surface open pits in the Northeast and Southwest zones.

The measured and indicated in-pit resource at the Northeast zone is pegged at 29.17 million tonnes averaging 0.95 gram gold, or 889,899 contained ounces. Inferred resources stand at 6.7 million tonnes averaging 0.98 gram gold, or 213,407 contained ounces.

Mineralization at the 217 property extends over a strike length of 4.5 km. The Southwest zone represents an area where a number of small-scale mining activities have occurred. Pacific Minerals believes that this zone offers important potential for expansion of the open-pit resources.

The 36 sq. km project area is situated about 650 km northwest of Beijing and 120 km south of Ivanhoe Mines’ (IVN-T) copper and gold discovery at Turquoise Hill (Oyu Tolgoi), in southern Mongolia. Pacific Minerals, through its subsidiary, holds the right to earn a 96.5% interest in the property. The project is being developed under a 50-50 joint venture agreement with Ivanhoe Mines.