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RNS Number:3898J
Galahad Gold Plc
07 March 2005
7 March 2005
GALAHAD GOLD PLC ("Galahad")
NORTHERN DYNASTY MINERALS LIMITED - INDEPENDENT RESOURCE ESTIMATE
CONFIRMS SUBSTANTIAL UPGRADE AND EXPANSION OF
PEBBLE GOLD-COPPER-MOLYBDENUM DEPOSIT
Galahad confirms that Northern Dynasty Minerals Limited ("Northern Dynasty")
(TSX Venture: NDM; AMEX: NAK), in which Galahad holds 31.7% on an undiluted
basis and 29.5% fully diluted (in both cases assuming completion of the recent
NDM financing announced by Galahad on 22 February) has reported the results of a
new independent mineral resource estimate for the Pebble deposit. The estimate,
prepared by Roscoe Postle Associates Inc., industry leading geological and
mining consultants, has confirmed that the Pebble deposit contains:
* Measured and Indicated Resources of 3.0 billion tonnes containing 31.3
million ounces of gold, 18.8 billion pounds of copper and 993 million pounds
of molybdenum, with an additional Inferred Resource of 1.1 billion tonnes
containing 10.8 million ounces of gold, 5.8 billion pounds of copper and 361
million pounds of molybdenum using a 0.30% copper-equivalent cut-off grade.
* Higher grade Measured and Indicated Resources of 569 million tonnes
grading 0.50 grams gold per tonne, 0.46% copper and 0.021% molybdenum, or
0.88% copper equivalent, with an additional Inferred Resource of 143 million
tonnes grading 0.56 grams gold per tonne, 0.40% copper and 0.020%
molybdenum, or 0.85% copper-equivalent above a cut-off grade of 0.70%
copper-equivalent.
Commenting on this announcement, Ian Watson, Chairman of Galahad Gold PLC said:
"Galahad is pleased that this new independent estimate has confirmed a
substantial upgrade of Pebble's resources to Measured and Indicated status.
The deposit has been expanded from 26.5m to 42.1m ounces of gold; 16.5 billion
to 24.6 billion pounds of copper; and 900 million to 1.35 billion pounds of
molybdenum. Importantly this is accompanied by an increase in both the size
and grade of the higher-grade resources."
- 2 -
The attached announcement was released by Northern Dynasty Minerals Limited ("NDM").
Galahad Gold PLC has not sought to verify any of its contents.
Enquiries to:
GALAHAD GOLD PLC
Ian Watson/Angelos Damaskos Tel: 020 7408 2002
PARKGREEN COMMUNICATIONS
Simon Robinson/Justine Howarth Tel: 020 7493 3713
DRESDNER KLEINWORT WASSERSTEIN
Chris Treneman Tel: 020 7623 8000
Northern Dynasty Minerals Ltd.
1020 * 800 W Pender St.
Vancouver BC
Canada V6C 2V6
Tel 604 684-6365
Fax 604 684-8092
Toll Free 1 800 667-2114
http://www.northerndynasty.com
INDEPENDENT RESOURCE ESTIMATE CONFIRMS SUBSTANTIAL UPGRADE AND
EXPANSION OF PEBBLE GOLD-COPPER-MOLYBDENUM DEPOSIT
March 4, 2005, Vancouver, BC - Ronald W. Thiessen, President and CEO of Northern
Dynasty Minerals Ltd. (AMEX: NAK; TSX Venture: NDM) is pleased to report the
results of a new independent mineral resource estimate for the Pebble porphyry
gold-copper-molybdenum deposit in southwestern Alaska. The estimate was
prepared by Roscoe Postle Associates Inc., industry leading geological and
mining consultants, which have estimated that the Pebble deposit contains:
* Measured and Indicated Resources of 3.0 billion tonnes containing 31.3
million ounces of gold, 18.8 billion pounds of copper and 993 million pounds
of molybdenum, with an additional Inferred Resource of 1.1 billion tonnes
containing 10.8 million ounces of gold, 5.8 billion pounds of copper and 361
million pounds of molybdenum using a 0.30% copper-equivalent cut-off grade.
* Higher-grade Measured and Indicated Resources of 569 million tonnes
grading 0.50 grams gold per tonne, 0.46% copper, and 0.021% molybdenum, or
0.88% copper-equivalent, with an additional Inferred Resource of 143 million
tonnes grading 0.56 grams gold per tonne, 0.40% copper, and 0.020%
molybdenum, or 0.85% copper-equivalent above a cut-off grade of 0.70%
copper-equivalent.
Roscoe Postle's resource estimate is based upon drill core assay results from
70,719 metres of drilling in 265 holes which were completed by Northern Dynasty
during 2003 and 2004, and 19,245 metres in 118 holes completed by Teck Cominco
American Incorporated up to 1997. The resource estimate was completed under the
direction of David W. Rennie, P. Eng. of Roscoe Postle Associates Inc., and R.
Mohan Srivastava, M.Sc., of FSS International Inc., independent Qualified
Persons as defined by Canadian regulatory policy NI 43-101. A technical report
detailing the resource estimate will be filed on www.sedar.com within 30 days.
A summary of mineral resources for the Pebble deposit at various cut-off grades
is tabulated below, with further details provided in the attached tables.
PEBBLE DEPOSIT MINERAL RESOURCES
Measured Plus Indicated Resources:
Cut-Off Size Grade Contained Metal
CuEQ Million Copper Gold Molybdenum CuEQ Copper Gold Molybdenum
% Tonnes % g/t % % B lbs M ozs M lbs
0.30 3,030 0.28 0.32 0.015 0.56 18.8 31.3 993
0.50 1,630 0.35 0.39 0.018 0.69 12.7 20.5 629
0.70 569 0.46 0.50 0.021 0.88 5.8 9.1 265
Inferred Resources:
Cut-Off Size Grade Contained Metal
CuEQ Million Copper Gold Molybdenum CuEQ Copper Gold Molybdenum
% Tonnes % g/t % % B lbs M ozs M lbs
0.30 1,130 0.24 0.30 0.014 0.50 5.9 10.8 361
0.50 417 0.31 0.42 0.018 0.67 2.9 5.6 168
0.70 143 0.40 0.56 0.020 0.85 1.3 2.6 62
Note 1 By prescribed definition, "Mineral Resources" do not have demonstrated
economic viability.
Note 2 Copper equivalent calculations use metal prices of US$1.00/lb for
copper, US$400/oz for gold, and US$6.00/lb for molybdenum. Copper equivalent
has not been adjusted for metallurgical recoveries. Adjustment factors to
account for differences in relative metallurgical recoveries for gold, copper
and molybdenum will depend upon the completion of definitive metallurgical
testing. CuEQ = Cu % + (Au g/t x 12.86/22.06) + (Mo% x 132.28/22.06).
Note 3 An Inferred Mineral Resource is that part of a mineral resource for
which quantity and grade can be estimated on the basis of geological evidence
and limited sampling and reasonably assumed, but not verified, geological and
grade continuity.
- 2-
Robert A. Dickinson, Northern Dynasty's Chairman commented, "We are delighted
with the success of our 2004 drilling program, which not only upgraded a
substantial portion of the Pebble deposit's mineral resources to measured and
indicated classifications, but significantly expanded the overall size of the
deposit, its contained metal, and perhaps most importantly, its higher-grade
resources. We have now commenced our 2005 program which is budgeted at US$36
million. The program will include delineation drilling of the exciting new East
Zone discovery located on the eastern flank of the deposit, where substantial
open-ended volumes of higher-grade gold-copper-molybdenum mineralization have
been encountered." He went on to say, "Comprehensive engineering,
environmental, and socioeconomic programs, designed for the completion of a
feasibility study and permit applications for a large scale, long life mining
operation, have been ongoing for the past year and will continue in parallel
with the drill program."
The Pebble deposit is located in an area of gentle terrain and moderate climate,
only 95 km from tidewater in Cook Inlet. Deposit mineralization occurs in a
near-surface configuration with almost no internal waste over a broad area
measuring at least 3 kilometres east-west and 2 kilometres north-south. A
recent Preliminary Assessment indicates that the Pebble project could generate
very attractive rates of return at production rates of 100,000 to 200,000 tonnes
per day over a 30 to 60 year mine life. The State of Alaska's Southwestern
Transportation Plan includes the development of a port and a 113 kilometre road
from Cook Inlet to the town of Iliamna, located some 25 km to the southeast of
the Pebble deposit. The Alaskan Department of Transportation Public Facilities
has commissioned engineering studies for the selected road corridor and port
site. Homer Electric Utility and Northern Dynasty are jointly funding a
feasibility study of a power development plan to connect the deposit site to the
State of Alaska's Railbelt electrical grid.
Mark Rebagliati, P.Eng and Dr. Morris Beattie, P.Eng, are the Qualified Persons
for the Pebble Project and are supervising the quality control and assurance
program. Logging and sampling is completed in Northern Dynasty's secure
facility at Iliamna, Alaska. The NQ-size core is split and samples are
transported to the ALS Chemex laboratory in Fairbanks for drying, weighing and
crushing. Samples are shipped by airfreight to the main ALS Chemex laboratory,
North Vancouver, Canada (an ISO 9002 certified laboratory) for final preparation
and analysis. Gold is determined by 30 g Fire Assay (FA) fusion with an Atomic
Absorption Spectroscopy (AAS) finish. Copper and molybdenum assays are by four
acid digestion with an Inductively Coupled Plasma-Emission Spectroscopy (ICP-ES)
finish. All samples are also analyzed for 23 additional elements by four acid
digestion ICP-ES. Northern Dynasty includes standards, duplicates and blanks in
addition to the laboratory's internal quality control work. Duplicate samples
are analyzed by Acme Analytical Laboratories of Vancouver, Canada.
Northern Dynasty has acquired an 80% interest in the entire Pebble property from
Teck Cominco American Inc., and has the right to acquire the remaining 20%
interest, held by a related party, for share consideration equal to its
independently appraised value. Valuations of the 20% interest are currently
being conducted by industry experts and will be submitted to an independent
committee of the board which will make a purchase recommendation. Northern
Dynasty expects to make a decision on the purchase by March 14, 2005.
For further details on Northern Dynasty Minerals Ltd. and its Pebble Project
please visit Northern Dynasty's website at www.northerndynasty.com or contact
Investor Services at 604-684-6365 or within North America at 1-800-667-2114.
ON BEHALF OF THE BOARD OF DIRECTORS
Ronald W. Thiessen
President and CEO
-3-
TABLE 1
PEBBLE DEPOSIT - MEASURED MINERAL RESOURCES
Cut-Off Size Grade Contained Metal
CuEQ Million Copper Gold Molybdenum CuEQ Copper Gold Molybdenum
% Tonnes % g/t % % B lbs M ozs M lbs
0.30 711 0.33 0.36 0.016 0.63 5.1 8.1 256
0.40 655 0.34 0.37 0.017 0.66 4.9 7.8 244
0.50 525 0.37 0.40 0.018 0.70 4.3 6.7 207
0.60 356 0.41 0.43 0.019 0.78 3.2 4.9 150
0.70 214 0.47 0.47 0.021 0.87 2.2 3.3 97
TABLE 2
PEBBLE DEPOSIT - INDICATED MINERAL RESOURCES
Cut-Off Size Grade Contained Metal
CuEQ Million Copper Gold Molybdenum CuEQ Copper Gold Molybdenum
% Tonnes % g/t % % B lbs M ozs M lbs
0.30 2,320 0.27 0.31 0.014 0.54 13.7 23.2 736
0.40 1,760 0.30 0.34 0.016 0.59 11.6 19.2 611
0.50 1,100 0.35 0.39 0.017 0.68 8.4 13.9 423
0.60 615 0.40 0.45 0.020 0.79 5.5 8.9 270
0.70 356 0.46 0.51 0.021 0.89 3.6 5.9 167
TABLE 3
PEBBLE DEPOSIT - MEASURED PLUS INDICATED MINERAL RESOURCES
Cut-Off Size Grade Contained Metal
CuEQ Million Copper Gold Molybdenum CuEQ Copper Gold Molybdenum
% Tonnes % g/t % % B lbs M ozs M lbs
0.30 3,026 0.28 0.32 0.015 0.56 18.8 31.3 993
0.40 2,413 0.31 0.35 0.016 0.61 16.5 27.0 855
0.50 1,628 0.35 0.39 0.018 0.69 12.7 20.5 629
0.60 970 0.41 0.45 0.020 0.78 8.7 13.8 420
0.70 569 0.46 0.50 0.021 0.88 5.8 9.1 265
TABLE 4
PEBBLE DEPOSIT - INFERRED MINERAL RESOURCES
Cut-Off Size Grade Contained Metal
CuEQ Million Copper Gold Molybdenum CuEQ Copper Gold Molybdenum
% Tonnes % g/t % % B lbs M ozs M lbs
0.30 1,130 0.24 0.30 0.014 0.50 5.9 10.8 361
0.40 756 0.27 0.34 0.017 0.57 4.5 8.2 278
0.50 417 0.31 0.42 0.018 0.67 2.9 5.6 168
0.60 226 0.36 0.49 0.020 0.77 1.8 3.6 101
0.70 143 0.40 0.56 0.020 0.85 1.3 2.6 62
Note 1 By prescribed definition, "Mineral Resources" do not have demonstrated
economic viability.
Note 2 Copper equivalent calculations use metal prices of US$1.00/lb for
copper, US$400/oz for gold, and US$6.00/lb for molybdenum. Copper equivalent
has not been adjusted for metallurgical recoveries. Adjustment factors to
account for differences in relative metallurgical recoveries for gold, copper
and molybdenum will depend upon the completion of definitive metallurgical
testing. CuEQ = Cu % + (Au g/t x 12.86/22.06) + (Mo% x 132.28/22.06).
Note 3 An Inferred Mineral Resource is that part of a mineral resource for
which quantity and grade can be estimated on the basis of geological evidence
and limited sampling and reasonably assumed, but not verified, geological and
grade continuity.
Forward Looking and other Cautionary Information
No stock exchange or regulatory authority have approved or disapproved the
information contained in this release.
This release includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements of historical
facts, that address estimated resource quantities, grades and contained metals,
possible future mining, exploration and development activities, are
forward-looking statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements should not be in any way construed as guarantees of
future performance and actual results or developments may differ materially from
those in the forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements include market
prices for metals, the conclusions of detailed feasibility and technical
analyses, lower than expected grades and quantities of resources, mining rates
and recovery rates and the lack of availability of necessary capital, which may
not be available to the Company on terms acceptable to it or at all. The Company
is subject to the specific risks inherent in the mining business as well as
general economic and business conditions. For more information on the Company,
Investors should review the Company's annual Form 20-F filing with the United
States Securities Commission and its home jurisdiction filings that are
available at www.sedar.com.
Information for US Persons Concerning Estimates of Measured, Indicated and
Inferred Resources
This news release also uses the terms "measured resources", 'indicated
resources' and 'inferred resources'. Northern Dynasty Minerals Ltd. advises
investors that although these terms are recognized and required by Canadian
regulations (under National Instrument 43-101 Standards of Disclosure for
Mineral Projects), the U.S. Securities and Exchange Commission does not
recognize them. Investors are cautioned not to assume that any part or all of
the mineral deposits in these categories will ever be converted into reserves.
In addition, 'inferred resources' have a great amount of uncertainty as to their
existence, and economic and legal feasibility. It cannot be assumed that all or
any part of an Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral Resources may not
form the basis of feasibility or pre-feasibility studies, or economic studies
except for Preliminary Assessment as defined under 43-101. Investors are
cautioned not to assume that part or all of an inferred resource exists, or is
economically or legally mineable
Other Cautionary and Risk Factors
The information relating to the possible construction of a port, road, power
generating facilities and power transmission facilities also constitutes such
"forward looking statements." The referred to Preliminary Assessment was
prepared to broadly quantify the Pebble project's capital and operating cost
parameters and to provide guidance on the type and scale of future project
engineering and development work that will be needed to ultimately define the
project's likelihood of feasibility and optimal production rate. It was not
prepared to be used as a valuation of the Pebble project nor should it be
considered to be a pre-feasibility study. The capital and operating cost
estimates which were used have been developed only to an approximate order of
magnitude based on generally understood capital cost to production level
relationships and they are not based on any systematic engineering studies, so
the ultimate costs may vary widely from the amounts set out in the Preliminary
Assessment. This could materially adversely impact the projected economics of
the Pebble project. As is normal at this stage of a project, data in some areas
of the Preliminary Assessment was incomplete and estimates were developed based
solely on the expertise of the individuals involved as well as the assessments
of other persons who were involved with previous operators of the project. At
this level of engineering, the criteria, methods and estimates are very
preliminary and result in a high level of subjective judgment being employed.
The Preliminary Assessment used only inferred mineral resources, which are
considered too speculative geologically to have economic considerations applied
to them that would enable them to be categorized as mineral reserves. There can
be no assurance that the potential results contained in the Preliminary
Assessment will be realized.
The following are the principal risk factors and uncertainties which, in
management's opinion, are likely to most directly affect the ultimate
feasibility of the Pebble project. The mineralized material at the Pebble
project is currently classified as measured, indicated and inferred resources
which are not a reserve. Considerable additional work, including additional
process tests and other engineering and geologic work will be required to
determine if any part of the mineralized material is an economically exploitable
reserve. There can be no assurance that this mineralized material can become a
reserve or the amount that may be converted to a reserve or the grade thereof.
Feasibility work has not been done to confirm the pit design, mining methods and
processing methods. Final feasibility could determine that the assumed pit
design, mining methods and processing methods are not correct. Construction and
operation of the mine and processing facilities depends on securing
environmental and other permits on a timely basis. No permits have been applied
for and there can be no assurance that required permits can be secured or
secured on a timely basis. Costs, including design, procurement, construction
and on-going operating costs and metal recoveries could be materially different
from those currently believed to be reasonable. There can be no assurance that
mining can be conducted at the rates and grades assumed in the Preliminary
Assessment. The project requires the development of port facilities, roads and
electrical transmission facilities. Although the Company believes that the
State of Alaska favors the development of these facilities there can be no
assurance that these infrastructure facilities can be developed on a timely and
cost-effective basis. There can be no assurance that the State of Alaska will
implement its Southwest Transportation plan or that the power feasibility study
being conducted in conjunction with Homer Electric Utility will result in a
connection to the Alaska transmission grid at acceptable costs or terms. Energy
risks include the potential for significant increases in the cost of fuel and
electricity. The Preliminary Assessment assumes specified, long-term prices
levels for gold, copper, silver and molybdenum. Prices for these commodities
are historically volatile, and the Company has no control of or influence on
those prices, all of which are determined in international markets. There can
be no assurance that the prices of these commodities will continue at current
levels or that they will not decline below the prices assumed in the Preliminary
Assessment. Prices for gold, copper, silver, and molybdenum have been below the
price ranges assumed in Preliminary Assessment at times during the past ten
years, and for extended periods of time. The project will require major
financing, probably a combination of debt and equity financing. Interest rates
are at historically low levels. There can be no assurance that debt and/or
equity financing will be available on acceptable terms. A significant increase
in costs of capital could materially adversely affect the value and feasibility
of constructing the project. Other general risks include those ordinary to very
large construction projects including the general uncertainties inherent in
engineering and construction cost, the need to comply with generally increasing
environmental obligations, and accommodation of local and community concerns.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEANDXEEESEEE
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