Black Cat Syndicate: High-Quality JORC Resources Confirmed for Coyote and Paulsens

Confirmation of high quality JORC resources from Coyote & Paulsens

Drilling techniques

Air coring, RAB and vacuum drilling were carried out jointly by Glengarry Resources and Tanami Gold NL. Barrick Gold drilled two deep diamond drill holes between 2000 and 2003. Significant RC and diamond drilling was carried out by Tanami Gold NL after acquisition and control of the entire project.

Only RC and diamond drilling has been used in the resource.

Sampling and subsampling techniques

RC samples were split into 1m intervals, targeting a 3kg sample, via a platform mounted from 12.5% ​​to 87.5% on a three-level splitter. When rare wet samples occurred, they were grabbed and not passed through the separator. These samples were collected directly into calico sample bags. The remaining 87.5% of samples were collected in plastic sample bags. The cyclone and separator were cleaned at the start and end of each hole using an air gun. For wet holes, the cyclone and separator were cleaned every 6 m of rod. The chips were recorded for lithology, moisture content, recovery, mineralization and alteration. Chip trays were photographed and archived.

Duplicate samples were selected at a 1:30 sample rate by the drillhole geologists from the sample retention bags and re-separated. Blank and standard material was inserted at a 1:30 pace.

The diamond core was drilled from surface using HQ3, NQ and NQ2, with triple tubing used where necessary to improve core recovery. Core recovery was poor in some very weathered areas, but good in most fresh rock areas. Most carrots have been cut and ½ carrot sampled. A small number of holes were sampled at ¼ core, with the remaining half used for metallurgical testing. The diamond core has been recorded for lithology, mineralization and alteration. Core was oriented downhole and structural measurements were recorded where possible.

Diamond core was sampled at geologically selective intervals to better target mineralization and geological boundaries. The samples taken were a minimum of 0.2 m and a maximum of 1 m. The diamond holes were sampled in 1m increments approximately 30m either side of the target areas. Commercially certified standards were inserted after 2004 at the rate of 1:30.

The drill samples used in the resource were prepared in a commercial laboratory. Samples were ground and dried before being pulverized to >85% passing 75 microns. A 50 g charge was fired and the residue was dissolved in an aqua regia digest. The assays were completed by atomic absorption spectroscopy with an accuracy of 0.01 ppm. The RAB, Vac and soil samples used different multi-element analysis techniques, but these were not used in the mineral resources.

Criteria used for resource estimation

A review of the resource was performed during the due diligence process to investigate reliance on the reported resource. No fatal errors in the resource estimate have been identified. The classification of the resource originally made by Tanami Gold has been reviewed based on all available information. The resource classifications assigned by Tanami Gold have been deemed acceptable and have been carried forward for this announcement.

Estimation methodology

Mineralization and alteration wireframes were constructed using Micromine software. Models of the geological units were used as guides for the interpretations of the mineralized veins. Ordinary kriging and inverse squared distance estimation methods were used.

Drill hole data was composited downhole to 1m for all mineralized domains and treated as hard limits for the domains.

Estimation domains were pooled for upper cut analysis and extreme outliers were investigated. An overall upper cut of 35 g/t was used to control for the impact of high grade composites on the estimate. Only a very small number of composites (8 in total) of samples were affected by the top cut.

Variograms were modeled in the main zones of mineralization in order to determine the main directions and the distances of continuity. These variograms were then used to create search ellipsoids which were applied to the individual domains. Adjustments to search ellipsoids and orientations based on individual domains have been undertaken. Multi-orientation search ellipsoids were used for each domain and constrained by coordinate filters. Parent block sizes of 20 m (X), 2.5 m (Y) and 10 m (Z) have been used with sub-cells up to 2 m (X), 0.5 m (Y), 1 m (Z) were used to respect mineralization volumes.

Bulk density values ​​were applied according to regolith type and are based on diamond core density measurements.

The resource was validated by comparing input assay data with modeled grades. This was completed by checking the overall averages of each domain, visually checking the spatial distributions of grade, evaluating windrow plots.


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