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Summary
The Updated Resource Estimate highlights a number of key features of the Borden Gold Zone, including:
- The improved delineation and increasing grade of the higher-grade zone within the deposit, which may positively influence future economic studies; - Increasing Resource size and grade at all cut-offs, with an approximately 26% overall increase in the resource at the 0.5 g/t Au cut-off, at similar average grades to the previous Estimate, and a 32% increase in the overall size of the higher-grade core and a 12% increase in grade at the 1 g/t Au cut-off; - Improved confidence in the deposit through upgrade of the majority (85%) of the Resource into the Indicated category, at a 0.5 g/t cut-off;
This Updated Resource will also be used to complete the project throughput analysis that will support the project financials associated with the PEA, which is expected to be completed by the end of the first quarter (calendar) of 2013. Based on the information available, it has been decided to accelerate the characterization of additional components of the project development in order to prepare for a seamless transition to the Pre-Feasibility study which is planned to follow the release of the PEA.
A Progress Report on metallurgical results has been received and is very encouraging as it has identified an improved metallurgical response when compared to the Initial Scoping work undertaken in 2011, particularly for the lower grade portion of the resource. This should result in an improved cut-off grade determination and an improved conversion of the mineral inventory into resources. The metallurgical work is ongoing and includes additional work to determine the best specific metallurgical approach to improve overall project economics. This will include consideration of many technical factors and the Board has decided that the metallurgical data would be more meaningful if released in the context of the final conclusions on processing that will be part of the PEA release.
Dr. David Palmer, President of Probe, states: "We are extremely pleased with the results of the current Resource Estimate as the Borden Gold Zone continues to not only grow, but is also improving from a potential economic standpoint. Bulk tonnage deposits are grade sensitive, and our ability to target higher average grades distinguishes our deposit and provides a solid base from which to evaluate a potential development project. The recently identified high-grade interval on Section 1200 is a clear example of the project's growing potential, and indicates that there is still much more to come for this property. During 2013, we will be focused on evaluating the new high-grade mineralization and further improving the deposit and advancing the project development."
The updated resource estimate, which meets the guidelines for reporting mineral exploration programs as set out in National Instrument 43-101, was based on 313 diamond drill holes, totaling over 94,000 metres, that tested the gold horizon along approximately 2,100 metres (m) of strike length and to a vertical depth of over 550 metres at spacings of between 50 to 100 metres. The Resource was modeled on 5 m x 5 m x 5 m block size. Mineralization of the Borden Gold Zone is comprised of a volcano-/meta-sedimentary horizon containing a thick, continuous and consistent zone of gold-bearing disseminated sulphide mineralization. The deposit still remains open in all directions.
