JERUSALEM PROJECT (for project updates see recent press releases)
Key Highlights:
- Measured and Indicated Gold resource of 585,100 oz at an average grade of 12.4 g/t (measured) and 12.4 g/t (indicated)
- Inferred Gold resource of 710,130 oz at an average grade of 11.5 g/t
- The property covers approximately 2.2 km2 in an active mining area
- Previous exploration included 10,825 metres of diamond drilling and 6,375 metres of tunneling
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The Jerusalem Gold Project comprises one, 100% owned, concession, located in the Zamora Chinchipe Province of south eastern Ecuador, about 40 km east of Zamora. The concession covers 2.25 km2 at altitudes ranging from 1400m to 1900m. Dense rain forest and steep terrain characterize the area.
A preliminary assessment report (scoping study) on the Jerusalem project was recently published and concluded that there is potential for the development of a profitable mining operation. The report will be used to further the project's development and as a base document for discussions with potential development partners. The report includes a two-stage mining plan and projected cash flows, and recommends a final feasibility on the project (see preliminary assessment report).
The Jerusalem Report makes the following estimates and conclusions:
- Estimated mine life over two stages
- Total Mineable Resources
- Total Metals Recovered
- Metal prices
- Total Direct Capital Costs
- Cash Operating Cost per Gold Equivalent Ounce
- Cumulative operating surplus before taxes and royalties
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8.5 years (1)
2,121,358 tonnes
834,251 oz. Au and 7,277,610 oz. Ag
Gold $500/oz: Silver $7.50/oz
US$25,000,000
US$185
US$297,000,000
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(1)
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The Company has estimated that the initial life of the mine could be extended from four years by an additional 4.5 years if it can successfully convert 60% of the project's inferred resources into mineable resources after additional exploration work is completed.
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As required by NI 43-101, it should be noted that the foregoing estimates are based, in part, upon estimates of resources that include 427,619 oz gold and 3,755,610 oz silver classified as "inferred resources". Inferred resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. As such, there is no certainty that the estimates contained in the Holly Jerusalem Report will be realized.
The Company's plan for 2007 is to continue exploration guided by the preliminary assessment report and future work is expected to include surface drilling along strike and underground drilling from declines developed to mine the existing resource.
Estimated Mineral Resources at Jerusalem
Category |
Tonnes |
Au
g/t |
Au
Ounces |
Ag
g/t |
Ag
Ounces |
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| Measured |
303,400 |
10.9 |
106,300 |
80.0 |
780,400 |
| |
298,900 |
13.9 |
133,430 |
102.0 |
980,000 |
| Total |
602,300 |
|
239,730 |
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1,760,400 |
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| Indicated |
141,900 |
10.7 |
48,800 |
79.0 |
360,000 |
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722,500 |
12.8 |
296,570 |
98.0 |
2,267,700 |
| Total |
864,400 |
|
345,370 |
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2,627,700 |
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| Inferred |
142,400 |
10.6 |
48,500 |
92.0 |
421,000 |
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1,785,200 |
11.6 |
661,630 |
103.0 |
5,855,470 |
| Total |
1,927,600 |
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710,130 |
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6,276,470 |
 Project Location
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 Geological Map
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 Underground exposure of
current resource
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 Teniente Vein
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 Vein Resources
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 High Grade Vein Resources
(Average 12g/t)
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A technical report complying with the requirements of NI 43-101 in respect of the Preliminary Assessment will be filed and available for inspection at www.sedar.com.
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Overview
Jerusalem
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