Cartier Resources drills 2.5 g/t gold over 13.3 metres at Chimo, Quebec
Cartier Resources Inc. [ECR-TSXV] reported drill hole results from the program that is in progress at the Chimo mine project. The new results are from the West Chimo mine sector, located between the main underground infrastructures of the Chimo mine and up to 550 metres west of them. The Chimo mine property, 100%-owned by Cartier, is located 45 km east of the Val d’Or mining camp, Quebec.
“These drill results in the West Chimo Mine sector clearly reveal the discovery potential of this new exploration sector, adjacent to the underground infrastructures of the Chimo mine. This sector has limited historical exploration and the gold zones known to date must be drilled further to increase their dimensions in order to optimize the full potential for increasing the resources of the Chimo Mine Project,” commented Philippe Cloutier, President and CEO.
West Chimo Mine Sector: Continuity below the 4BW Gold Zone: Drilling intersected 3.7 g/t gold over 6.0 metres including 20.2 g/t gold over 1.0 metre and 1.6 g/t gold over 15.0 metres, including 22.8 g/t gold over 0.5 metres. These new results, located below the 4BW Gold Zone, demonstrate the continuity at depth in order to increase its dimensions and resources.
New gold-bearing intersections within the 5N Structure: Drilling intersected 4.5 g/t gold over 5.0 metres, including 14.7 g/t gold over 1.0 metre and 3.3 g/t gold over 3.0 metres, including 7.4 g/t gold over 1.0 metre. These new results, located 300 m west of the Chimo mine underground infrastructures, add to the historical results of 1.3 g/t gold over 13.7 metres (Drill Hole 175-108) and 1.7 g/t gold over 7.8 metres (Drill Hole 01-84-64) outlining the occurrence of a potential new gold zone.
New gold-bearing intersections within the 6 Structure: Drilling intersected 2.5 g/t gold over 13.3 metres, including 8.9 g/t gold over 0.5 metres. These new results, located 350 metres west of the Chimo mine underground infrastructures, add to the historical results of 1.6 g/t gold over 7.1 metres, including 5.1 g/t gold over 0.5 metres (Drill Hole 07-87-32) in the 6 Gold Structure.
Project highlights: Recent positive Preliminary Economic Assessment with a Post-Tax NPV (5%) of CAD$388M and 20.8% IRR; Long term gold price of US$1,750/oz, Exchange rate of CAD $1.00 = US $0.77; Payback period of 2.9 years and mine life of 9.7 years; Capex of CAD$341M, average all-in sustaining cost of US$755/oz; Cumulative Post-Tax Cash Flow of CAD$688M; Average annual production of 116,900 oz at a milled average of 4.6 g/t gold.
Recent Mineral Resource Estimate: 720,000 ounces of gold in the indicated resource category; 1,633,000 ounces of gold in the inferred resource category.
The Chimo Mine Project, currently being drilled over a length of 3.7 km by 1.6 km depth, now consists of 30 gold-bearing zones that are situated within 19 gold-bearing structures.
Cartier Resources has a strong cash position exceeding $3.5 M and a significant corporate and institutional endorsement, including Agnico Eagle Mines, O3 Mining and Quebec investment funds.