Mineral Resource Parameters
Parameters used in the Resource Estimate are summarized in table 4 below.
Table 4: Parameters used in the San Diego Mineral Resource Estimate
----------------------------------------------------------------------------Parameters Silver Pb Zn Au Cu----------------------------------------------------------------------------Metal Pricing(1) $28.10/oz $1.00/lb $0.96/lb $1,455/oz 3.65/lb----------------------------------------------------------------------------Sulphides - Net Recoveries 64.9% 76.4% 57.5% 0.0% 0.0%----------------------------------------------------------------------------Conversion Factor to AgEQ g/t(2) 1.0 1% =28.7 1% = 20.8 - -----------------------------------------------------------------------------Oxides - Net Recoveries 60.5% 0.0% 0.0% 62.5% 0.0%----------------------------------------------------------------------------Conversion Factor to AgEQ g/t(2) 1.0 - - 53.4% -----------------------------------------------------------------------------Potential Mining Minimum Horizontal Mining Methods Cut-Off Grades Widths (m) ----------------------------------- $/t(3) Ag.EQ (g/t)----------------------------------------------------------------------------Cogs 133 Narrow vein Shrinkage- Oxide $73 133 1.0----------------------------------------------------------------------------Cogs 125 Narrow vein Shrinkage $73 125 1.0----------------------------------------------------------------------------CoG 102 Long Hole Mining $60 102 2.5----------------------------------------------------------------------------CoG 81 Bulk Mining $47.50 81 5.0----------------------------------------------------------------------------CoG 52 Mechanized Bulk /Block Over 5 m Cave $30 52 (Fernandez /Trovador)----------------------------------------------------------------------------
Footnotes:
(1) $US Pricing based on 3-year trailing average(2) g/t Ag.EQ with estimated Mill and Smelter recoveries.(3) Estimated mining cost ($/t) in Mexico
Resource Estimate Methodology
A three dimensional model of level plans and cross-sections was constructed that enabled a better understanding of the interrelationships between the various mineralized structures found on the San Diego Property. Wireframe envelopes were created for the 23 mineralized bodies of which, 10 cross the oxide-sulphide interface. Two of the bodies (Endoskarn and Fringe) have an ovoid shape, whereas the remainder represent thin (typically 1-5m) veins. Fernandez Zone envelopes were filled with isotropic blocks measuring 5m x 5m x 5m whereas the Vein Zones were populated with thin rotated blocks of 0.5m x 5m x 5m to better respect the geometry and thickness of these narrow structures. The blocks were interpolated from equal length composites calculated from the mineralized intervals. Prior to compositing, high grade silver and gold assays were capped respectively to 1,400 Ag g/t and 5 g/t Au. Mineralized intervals having less than 1 m true thickness were diluted with adjacent wall-rock. For the various cut-off grades, minimum horizontal mining widths were set at greater than 5.0 m for cut-off ("CoG") of 52 g/t AgEQ; 5.0 m for CoG 81 g/t AgEQ; 2.5 m for CoG 102 g/t AgEQ; and 1.0 m for CoG 125 g/t AgEq. Block grades were interpolated from the composites in three separate passes using the inverse distance to the square methodology. Blocks were classified automatically requiring a minimum of three drill holes within a 65m distance (40m extrapolation) for Indicated Resources and a minimum of 2 drill holes within a 125 m distance (80 m extrapolation) for Inferred Resources. In addition, a 60 m radius around a single drill hole was also defined as Inferred Resource. Each mineralized body was validated visually to ensure that grade and classification was geologically reasonable. The San Diego drill hole database includes 54 diamond drill holes totalling 31,000 m of HQ, NQ and BQ size core with over 22,000 assayed samples. Density factors were estimated from a linear regression formula based on measurements performed on 777 mineralized intervals of core.
In March 2012, Golden Tag signed a revised option agreement with Golden Minerals whereby it can earn an additional 10% interest in the San Diego property by incurring US$3 million of exploration expenses (News Release: March 28, 2012). To date Golden Tag has incurred approximately US$1.9 million of the required amount. After completion of the additional earn-in, Golden Tag will hold a 60% interest and Golden Minerals 40%.
Qualified persons - Resource:
The Resource Estimate for the San Diego property was undertaken by SGS Canada Inc- SGS Geostat Group under the management and supervision of M. Claude Duplessis, Ing. with the assistance of M. Guy Desharnais Ph.D, P.Geo., both Independent Qualified Person (QP) in accordance with NI 43-101. Ms. Kateri Marchand, P.Geo., San Diego Exploration Manager and QP; assisted SGS in the recognition of mineralized zones and Geology during the Resource study. MM. Duplessis and Desharnais have read and approved the content of this press release as it pertains to the disclosed mineral resource estimate.
Quality Control
Mr. David Rigg, C.E.O. Golden Tag, P.Geo. and Ms. Kateri Marchand, P.Geo, San Diego Project Manager; both Qualified Person's under the definition of NI 43-101, supervised field work and surface diamond drilling programs on the property.
Golden Tag Resources
Golden Tag is focused on exploration for high-grade gold and silver deposits in Canada and Mexico. Exploration projects are being advanced on the San Diego silver project in Mexico; the Aquilon gold project in James Bay, Quebec; and the Verneuil gold project in Quebec. Golden Tag also has a 40% interest in the McCuaig gold project in Red Lake, Ontario. Golden Tag has 53,426,558 issued and outstanding shares and has no outstanding debt.
Cautionary Statement: Statements in the release that are "forward looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. For a discussion of the risk factors that are inherent in the Mining Industry see our public filings at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Marc A. Carrier
President and C.F.O.
(514) 426-8542
(514) 426-8543 (FAX)
pres@goldentag.ca
www.goldentag.ca
