Business & Finance
Business and Finance
Business and Finance
Mon, November 8, 2010 Xmet Inc. Files NI 43-101 Gold Mineral Resource on Duquesne-Ottoman
TORONTO, Nov. 8 /CNW Telbec/ - Xmet Inc. (TSX-V: XME) is pleased to report that the National Instrument (NI) 43-101 compliant Mineral Resource estimate for Duquesne-Ottoman Property is now published on SEDAR and can be viewed at [ www.sedar.com ]. Highlights of the new NI 43-101 Duquesne-Ottoman Resource estimate, prepared by Reddick Consulting Inc. (RCI) include:
- Inferred Resources of 2,731,276 tonnes at an average grade of 5.29 g/t Au (6.00 g/t Au uncut) hosting 465,000 ounces Au cut (525,000 ounces Au uncut)
Further details of the resource estimate can be reviewed in Xmet's news release dated September 21st, 2010 on Xmet's website at [ www.xmet.ca ]. The publication of this half million ounce gold resource represents a significant milestone for Xmet shareholders. This high grade resource is ideally located within the mature Rouyn-Noranda Abitibi mining camp and is well established with excellent infrastructure, nearby hydro electric power and milling facilities, and highly competitive drilling rates. The Fraser Institute ranks Quebec as one of the most favourable jurisdictions in the world for new mine development.
A second drill has been added to the property to accelerate expansion of the current high grade resource. RCI has advised that there is excellent potential to expand the current resource along strike and at depth. Recently discovered, high grade gold mineralization identified at the Nip Zone is less than kilometre due east of the current resource (see Xmet NR dated September 24, 2010). Broad zones of high grade gold mineralization (DQ-10-17 returned 17.0m @ 2.95 g/t Au from a depth of 101.0m to 117.0m) in the near surface environment demonstrate the excellent exploration potential for additional gold discoveries on the property. The Nip discovery was not included in the current resource estimate and is considered to be a high priority drill target for the current drill program.
A map showing the location of the Nip Zone relative to the main gold deposits hosting the resource can be found at the end of this news release.
Resource Statement
A total of 17,831 samples in 112 drill holes, representing approximately 55,400 metres of drilling were used for the estimate. All the drilling used for the estimate was done in the period 1994-2006 although older drilling which could not be validated also occurs in the area of the resources. No drilling by Xmet has been incorporated in the current Mineral Resources. Earlier holes were drilled by Santa Fe Canadian Mining Ltd., Kinross Gold Corporation, Queenston Mining Inc. and Diadem Resources Ltd. The Mineral Resource is constrained by limiting intervals to interpreted, multiple zones that demonstrate continuity of mineralization along strike and down-dip between adjacent drill holes. Metal grades were interpolated using polygons with a maximum radius of 60m using a polygonal estimation method. Metal prices of US$850 per troy ounce of gold, based on the three year trailing average, were used to estimate cut-off grade values for the estimate. Individual zones were modelled that reflected the continuous nature of gold mineralisation in a number of different zones.
Mineral Resources were classified as Inferred in each zone if:
a) the composited interval for a zone had a minimum grade of 3.0 gpt Au (cut) and a minimum horizontal width of 2.5 m; and either
b) a polygon meeting the above criteria was also contiguous with another polygon for the same zone that also met the minimum grade and width criteria; or
c) for isolated polygons; if they occurred up or down dip and along the interpreted plunge line of the zones.
Assay grades were composited to a minimum of 2.5m horizontal width based on the interpreted dip of the zones prior to resource estimation. Unsampled intervals were included in the composites at nil grades. A top cut of 30 g/t Au was applied to the assays before calculation of composite grades on the basis of statistical analysis. The gold grade cut-off value, at 3.0 g/t Au, is based on the assumption that the deposit is of a potential size and nature to allow for possible underground mining. The cut-off value of 3.0 g/t Au was derived from recent technical reports filed on SEDAR and in-house technical data from RCI for similar deposit types. Specific Gravity used in these estimates was 2.70. Recoveries are assumed to be 100%.
About Xmet Inc
Xmet Inc., through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne-Ottoman Mines"), carries out gold and resource exploration and development. Pursuant to the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets Ltd., Duquesne-Ottoman Mines can earn an option to purchase 75% of the common shares in the capital of Duparquet Assets Ltd, which legally and beneficially owns 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.
[ http://files.newswire.ca/357/duquesne.doc ]
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. Mr. Bill Yeomans, P.Geo., Xmet's V.P. Exploration, is the designated Qualified Person responsible for this release.
