Caprock Mining posts substantial updated Mineral Resource Estimate for Destiny Gold Project, Quebec
Caprock Mining Corp. [CSE: CAPR] reported a substantial open pit-constrained mineral resource estimate (MRE) for its newly optioned Destiny gold property located near Val D’Or, Quebec, summarized as follows: Indicated Resources stand at 6,752,000 tonnes grading 0.91 g/t gold for 196,549 ounces at a 0.30 g/t gold cut-off. Inferred Resources are 28,560,000 tonnes of 0.87 g/t gold for 794,886 ounces at a 0.30 g/t gold cut-off.
Mineral resources are constrained within pit shells (OP). An exchange rate of 1.35 is utilized in calculations ($CAD/$USD). Open pit cut-off of 0.30 g/t Au milled is based on the cost/ton ($CAD/t) milled for incremental mining, processing, and G&A based on the following:
Long term metal prices of US$2,100/oz concentrate; Metallurgical recoveries are based on metallurgical testing recovery of 94%; Average Bulk density (specific gravity) was determined for each lithology and/or mineralized domain within the deposit.
Total Ore-based cost of CAD$22.50/t; Processing costs of CAD$18.00/t and G&A costs of CAD$4.50/t milled; Dilution of 10%; and Pit Slope angle of 45 degrees.
The resource estimate was prepared by Todd McCracken, P.Geo, of BBA E&C Inc. in accordance with NI 43-101 standards.
Caprock’s President & CEO, Vishal Gupta, stated, “Today’s substantial, high quality MRE establishes Destiny as one of the best developing gold projects in Quebec during a period of unprecedented high gold prices. We view this MRE as the first step in Caprock’s quest to unlock the vast mineral potential of the Project. The MRE covers less than 2 km of the total 6 km of strike over which the Despinassy shear zone is interpreted to extend at Destiny.
“Additionally, previous exploratory drilling has returned high-grade gold mineralized intercepts at depths greater than 500 metres below the surface, demonstrating potential for underground mineable resources on the Property. Caprock plans to conduct a targeted drill program this year with the aim of expanding the resource inventory at Destiny, both along strike and at depth.”
Since the drilling at the DAC deposit is much higher resolution than anywhere else on the Property, the vast majority of the MRE is comprised of mineralization at the DAC deposit alone. The adjoining Gap and Darla zones have experienced much lower resolution and shallower drilling to-date.
Following the completion of the updated MRE, management’s next step in expanding the MRE at Destiny will involve the completion of a targeted resource definition drilling program.
The resource estimate is based on results from 57,465 metres of drilling in 179 drill holes. 13 separate mineralized domains were established within a detailed three-dimensional geological model with an average specific gravity of 2.82 for the mineralized material. Parent blocks measuring 5 metres x 5 metres x 5 metres were generated to populate the block model. Gold assay data were reviewed statistically and visually to determine appropriate grade capping levels by domain. Gold grades were interpolated using ordinary kriging.
Caprock Mining has an option to earn a 100% interest in the Destiny gold property that comprises 127 mineral claims and encompasses an area of 5,013 hectares located less than two hours’ drive from Val D’Or, Quebec. Destiny lies along a major deformation corridor in the Abitibi greenstone belt that includes the prolific Cadillac-Larder Lake, Destor-Porcupine and Casa Berardi fault zones which host numerous producing and development-stage gold deposits.
The project overlies a 6.0 km long segment of the poorly explored Despinassy shear zone which is a splay off the regional Chicobi Fault. One of the several gold deposits discovered on Destiny is the DAC Deposit, which has a near-surface, NI 43-101 compliant mineral resource estimate.