Details of Mineral Resource Estimate
Gold mineralization at Goldboro occurs in a tightly folded sequence of Cambro-Ordovician greywacke and slate of the Goldenville Formation. Quartz vein systems associated with the hinge zone of the moderately east-plunging Upper Seal Harbour Anticline are the most important hosts for gold in this district, but gold values are also present in slate units adjacent to vein contacts. Mineral resources reported above occur in three spatially contiguous zones along the Upper Seal Harbour anticline. These comprise the total "Goldboro Deposit" and consist of the Boston Richardson Zone, the East Goldbrook Zone and the West Goldbrook Zone. Each zone is characterized by stacked, gold-bearing quartz-veined stratigraphic intervals that can be correlated both along strike and down dip.
The Mercator mineral resource estimate is tabulated above and defined at a gold cutoff grade of 2.0 g/t. This cutoff provides definition of mineral resources considered to have a reasonable expectation of economic development using underground mining methods. Sensitivity to gold cut-off grade is presented above through comparative tabulations at cut-off values of 1.5 g/t, 2.5 g/t, 3.0 g/t and 3.5 g/t. Distribution of resources between the three zones of the deposit is also shown above in the resource statement.
Mark Billings added, "Orex is also very satisfied with the geological model put together by Mercator, which was mandated by the Company and created independently from previous geological models. This model will form the foundation of future assessments and planning at Goldboro."
"In the opinion of the management of Orex, the resource figures presented above reflect quality gold ounces that have potential for economic development. The Company will take the necessary and prudent steps to advance Goldboro through further detailed assessments required to determine viability of commercial production. One of these next steps will be a bulk sample at Goldboro, which will help the Company assess resource model grades. Potential targets for a bulk sample are currently being discussed with Mercator. In addition, the Company will consider undertaking a Preliminary Economic Assessment ("PEA") for the Goldboro Project, with the current resource estimate forming the foundation of such an analysis. Orex is also identifying other steps that can be taken to facilitate assessment of the project's future production potential."
In addition to further drilling to extend and upgrade existing mineral resources, Mercator has recommended that bulk sampling target studies be completed in the near term so that associated environmental, engineering and permitting activities can be initiated as soon as possible. Mercator has also recommended further assessment of near surface open pit potential using pit optimization methodology and completion of a PEA.
The following table outlines the increase in gold ounces over the previous NI 43-101-compliant mineral resource estimate that was disclosed by the Company in its news release dated August 4, 2009:
2013 Mineral Resource 2009 Mineral Resource1.5 g/t cut-off Estimate Estimate----------------------------------------------------------------------------Category Tonnes Au g/t Au oz Tonnes Au g/t Au oz----------------------------------------------------------------------------Measured 227,000 4.43 32,300 270,000 4.99 43,300----------------------------------------------------------------------------Indicated 3,417,000 4.47 491,100 2,441,000 4.51 353,900---------------------------------------------------------------------------- Subtotal 3,644,000 4.47 523,400 2,711,000 4.56 397,200----------------------------------------------------------------------------Inferred 3,629,000 4.13 481,900 3,438,000 3.67 405,926----------------------------------------------------------------------------
