In addition to the two areas highlighted above, the main Wellgreen deposit appears to be open to expansion over its entire 2.5 kilometre length down dip to the south. Key drill holes are planned to offset higher grade mineralized zones and bring these areas, which are currently within the pit model as unclassified blocks, into the mineral resource. The Central Zone © is one of these areas for testing down dip, where two of the best grade-thickness holes in the deposit (WS-188 and WS-214) have not yet been offset.
The development of new geologic model has enabled the technical team to map out a targeted offset and infill drilling program designed to maximize conversion of existing Inferred resources into the Measured and Indicated category and thereby increase overall confidence in the mineral resource.
To view the 'Wellgreen Target Zones', please visit the following link: http://media3.marketwire.com/docs/pmap0717.pdf
Lastly, a series of high-priority, road accessible targets adjacent to the main Wellgreen deposit are viewed by the Company as having potential for the discovery of new higher grade, near surface mineralization. These targets, which include the Quill and Burwash areas, are outside of the current limits of the current mineral resource model but demonstrate geomagnetic and surface geochemical signatures which are strikingly similar to those found at Wellgreen proper. Initial results indicate the possibility that these sites may be part of the same overall system which exceeds 18 kilometres in length.
The metallurgical program will be conducted by Eggert Engineering, who is being assisted by Mike Ounpuu, Consulting Metallurgist.
Metallurgical test work has commenced at SGS Minerals Services at Lakefield. This program is pursuing optimization opportunities including improved 3E PGM and base metals recovery and recovery of rare PGMs as well as increased concentrate grades. The test work, upon which assumptions in the 2012 PEA were based, was preliminary in nature and attained the initial objective of demonstrating that the disseminated mineralization would report to a conventional sulfide flotation circuit and would also report to separate nickel and copper concentrates.
The 2013 metallurgical program will test optimization of the flotation recovery of the metals by using variation of grind size, flotation methods, magnetic separation methods and other techniques to enhance overall recovery of PGMs and base metals and improve overall concentrate value.
During its production phase in the early 1970s, Wellgreen operated as an underground mine focused on very high-grade horizons and produced a bulk concentrate which was purchased by Sumitomo in Japan containing PGMs, nickel and copper along with rare PGM's including rhodium, osmium and iridium.
Engineering and Mine Plan Optimization
Studies currently underway are examining a staged development approach with a smaller scale start-up operation, including reduced initial CAPEX and improved economic key performance indicators.
The Company has awarded the surface infrastructure engineering contract to JDS Energy & Mining Inc. (JDS). and the tailings pond engineering will be conducted by Knight Piesold. In addition, the Company is currently assessing contractors in relation to the open pit and underground mine engineering work.
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