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Volcan Gold Project Resource Update
2008

Volcan
Resource Summary 2008For previous resource estimates,
click here.
Resource Disclosure
Under the guidelines of National Instrument 43-101 (“NI 43-101”) of
the Canadian Securities Administrators, the qualified person for the
Volcan Gold Project is Ralph Gonzalez, a resident of Burnaby, British
Columbia, Canada. Mr. Gonzalez is a professional engineer registered
with the Association of Professional Engineers of the Province of
Manitoba since 1977 and a Professional Geologist registered with the
Association of Professional Engineers and Geoscientists in the Province
of British Columbia since 1992. The October 2007 resource estimate was
prepared by NCL Ingenieria y Construccion S.A., Santiago, Chile in
conjunction with Eduardo Magri, Ph.D. in mining engineering
(Witwatersrand) and a Fellow of the SAIMM with over 30 years of industry
experience. Mr. Gonzalez is an independent qualified person as defined
by NI 43-101 and has reviewed the contents of this press release. A
NI43-101 compliant technical report is being prepared by Mr. Gonzalez
and will be filed on the SEDAR system (www.sedar.com) within forty five
days of this release.
The resource was estimated using the ordinary kriging geostatistical
analysis with 33,216 samples. Separate block models, each with unique
parameters, were constructed for each of the Dorado West Zone, Dorado
Central Zone and Dorado East Zone deposits. Geologically constrained
wire frame envelopes were constructed to confine each block model.
Kriging search parameters, reduced to 85% of the variogram established
figures, were calculated for each of the deposits. A density value,
based upon 367 measurements, of 2.47 tonnes/m3 was used to estimate the
tonnages. The parent cell dimension for all deposits is 10 metres in all
three axis directions.
A ‘measured mineral resource’ and an ‘indicated mineral resource’ is
that part of a mineral resource for which quantity, grade or quality,
densities, shape and physical characteristics, can be estimated with a
level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The ‘measured
mineral resource’ requires a higher level of confidence in, and
understanding of, the geology and controls of the mineral deposit as
compared to an ‘indicated mineral resource’. An ‘inferred mineral
resource’ is that part of a mineral resource for which quantity and
grade or quality can be estimated on the basis of geological evidence
and limited sampling and reasonably assumed, but not verified,
geological and grade continuity.
It can not be assumed that the inferred mineral resources will be
upgraded to an indicated mineral resource as a result of continued
exploration. Furthermore, it can not be assured that measured and
indicated or inferred mineral resources will be converted to a “reserve”
category at such time as feasibility studies are initiated. |
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