Each one in plain English, with the numbers worked through for a shareholder.
11 Mar 2016resource reserve update● NeutralMajor
Final annual resource and reserve update before the takeover. Timmins West indicated resources rose to 903,400 ounces (5,775,000 t at 4.9 g/t) from 694,600 a year earlier on the 144 Gap addition, while its probable reserves fell to 391,800 ounces from 509,700 as mining outpaced conversion; Bell Creek held 679,900 ounces measured and indicated with reserves up to 309,300 ounces from 263,600. Across both mines: 1,583,300 ounces measured and indicated, 1,013,300 inferred.
First resource for the 144 Gap deposit: 301,700 ounces indicated (1,734,000 t at 5.41 g/t) and 319,200 ounces inferred (1,914,000 t at 5.19 g/t), sixteen months after the October 2014 discovery hole. Intercepts inside the resource but not yet counted in it included 49.92 g/t over 22.7 m and 31.27 g/t over 18.5 m.
The first 13 holes (1,600 m) of a 30,000 m programme at the Whitney project - the first drilling there since the Temex acquisition closed in September 2015 - confirmed and expanded the shallow 110 Zone south of the Hallnor shaft, with 29.42 g/t over 12.0 m, 8.45 g/t over 9.5 m and 6.45 g/t over 9.2 m, all within 100 m of surface.
Sixty holes and 11 wedge cuts (39,050 m) across the 144 trend: the first underground hole into the western part of the 144 Gap cut 6.85 g/t over 59.2 m, delineation holes returned 79.52 g/t over 8.3 m and 6.98 g/t over 36.1 m, and surface drilling discovered new gold at 144 South 450 m below and northeast of previous holes.
The first ten underground holes (4,771 m) from the new exploration drift into the 144 Gap returned 7.81 g/t over 10.4 m, 6.29 g/t over 36.8 m, 7.83 g/t over 18.8 m and 10.97 g/t over 14.4 m, with the drift over 90% complete and a first resource still targeted for early 2016.
Expanded the 144 Gap drill programme, opened new exploration along the 144 trend to the southwest and added an underground programme at Bell Creek. Management framed it as the turn from stabilising and deleveraging to spending on growth, after debt repayment and cost targets had been met.
Twenty-two holes and five wedges (29,089 m) took the 144 Gap to 400 m along strike and 400 m of vertical height, with the high-grade core now at least 300 m tall. Intercepts included 11.79 g/t over 21.1 m within a broader 5.74 g/t over 55.0 m, 8.81 g/t over 8.2 m and 8.14 g/t over 15.1 m.
Filed an updated Bell Creek reserve at 31 December 2014 of 1,792,295 t grading 4.6 g/t for 263,608 ounces mined to surface, of which 172,228 t at 4.5 g/t is proven, using a US$1,100 gold price and a 0.90 exchange rate.
Ten holes and a wedge (11,092 m) defined a thick, high-grade core inside the 144 Gap over 250 m of vertical height, 75-100 m wide and 50-75 m along strike, with 5.36 g/t over 47.0 m (including 9.70 g/t over 18.4 m), 4.09 g/t over 56.9 m and, near the northeast limit, 78.44 g/t over 1.9 m.
Tripled the 144 Gap's minimum strike length, taking the zone to 350 m along strike and 350 m down dip, and pushed mineralisation 200 m northeast to within 500 m of Thunder Creek (3.68 g/t over 18.0 m, 6.56 g/t over 12.4 m, and 100.00 g/t over 0.40 m). Six surface rigs were on site with 90,000 m planned for 2015.
Four more holes (4,898 m) at the 144 Gap returned 7.18 g/t over 24.0 m including 12.61 g/t over 11.5 m, 5.09 g/t over 24.8 m and 5.92 g/t over 20.7 m, confirming minimum dimensions of 100 m along strike by 250 m down dip. The programme was expanded from 10,000 to 15,000 m with a fourth rig.
Forty-eight holes (13,916 m) at Timmins West confirmed and extended the second fold-nose structure at the Timmins deposit (12.32 g/t over 9.3 m including 27.70 g/t over 3.3 m, and 11.72 g/t over 9.7 m) and found new gold below the resource in the footwall and ultramafic zones, including 38.56 g/t over 3.1 m.
The first hole of a new 10,000 m surface programme at the 144 property cut 5.37 g/t over 46.0 m, including 21.87 g/t over 6.0 m and 12.54 g/t over 4.4 m, confirming as a real discovery the mineralisation first glimpsed 770 m from Thunder Creek in the 2012 drilling. Being 500 m from an operating mine, it could be reached from existing infrastructure.
Updated Timmins West reserve of 3,332,164 t at 4.6 g/t for 492,246 ounces - Timmins deposit 227,707 ounces, Thunder Creek 264,539 ounces - with a life-of-mine plan averaging about 2,800 tonnes a day through 2016 and ending in the third quarter of 2017. That is down from the 823,848 ounces first booked in April 2012 after two years of mining, and leaves roughly three and a half years of reserve life ahead of the mine.
Sixteen holes (3,718 m) from the 610 Level at Bell Creek's Labine deposit returned 14.12 g/t over 10.2 m in BC610-865, 8.41 g/t over 12.0 m in BC610-911 and 7.01 g/t over 10.7 m in BC610-863A, and defined two new hanging-wall structures 100 m east of current mining. The revised model pointed to higher grades in narrower structures below the 685 Level.
Filed the Bell Creek technical report carrying the updated resource and the mine's first reserve estimate, both announced on 18 March 2013. The release itself restates no figures.
The 2012 programme of 35 holes and two extensions (27,411 m) found new mineralisation 850 m south of Thunder Creek in the 144 Gap (13.54 g/t over 2.0 m, 6.07 g/t over 3.0 m), doubled the 144 North plunge length to 800 m depth and hit shallow gold at 144 South (14.76 g/t over 3.0 m). The company later dated the 144 Gap discovery to this 2012 drilling.
Seven holes (1,440 m) extended the Gold River Trend high-grade core 125 m deeper and 120 m west (18.48 g/t over 4.0 m, 4.59 g/t over 2.1 m) and found mineralisation 420 m east of the resource (18.55 g/t over 1.0 m). The core already held 310,900 ounces at 9.81 g/t between 400 and 800 m depth.
Filed the Timmins West prefeasibility and reserve technical report carrying the 823,848-ounce probable reserve first announced on 2 April 2012. Paperwork behind an already-announced number.
Twenty-six holes (15,846 m) at Fenn-Gib returned 1.93 g/t over 241.2 m, 1.26 g/t over 324.0 m, 0.89 g/t over 260.5 m and 0.73 g/t over 284.0 m, extended mineralisation up to 200 m below the resource and pushed the Main Zone at least 200 m east. Silver assays averaged 1 to 2 g/t and were not in the resource at all.
Two announcements in one filing. First-quarter 2012 output of 16,680 ounces from 160,500 t at 3.40 g/t and 95.1% recovery beat the 15,000-ounce target, with 18,400 ounces sold at US$1,690; full-year guidance of 85,000 to 100,000 ounces was held. The Gold River Trend technical report was also filed, carrying 117,400 ounces indicated at 5.29 g/t and 1,027,800 ounces inferred at 6.06 g/t.
Two announcements in one filing. Bell Creek measured and indicated resources rose more than 150% to 646,431 ounces (4,249,451 t at 4.73 g/t) with 953,845 ounces inferred (6,088,506 t at 4.87 g/t), reflecting roughly 425,000 ounces converted from inferred and 185,000 ounces newly added. And Timmins West got its first reserve: 823,848 ounces probable (4,922,180 t at 5.21 g/t), a 73% conversion of indicated resources and enough for five years of production.
Updated the Timmins West resource to 1,914,000 ounces in total - 1,122,500 ounces indicated (5,826,000 t at 5.99 g/t) and 791,500 ounces inferred at 5.76 g/t - across the Timmins and Thunder Creek deposits, with the Timmins deposit alone at 882,400 ounces. A preliminary economic assessment and first reserve were promised for the quarter.
Filed the Fenn-Gib technical report, formalising 1.30 million ounces indicated at 0.99 g/t and 0.75 million ounces inferred at 0.95 g/t. Paperwork behind an already-announced number.
Filed the Thunder Creek technical report on SEDAR, formalising the November resource of 521,600 ounces indicated at 5.64 g/t and 510,000 ounces inferred at 5.89 g/t. Paperwork behind an already-announced number.
One filing carrying two maiden resources: Thunder Creek at 2,877,000 t grading 5.64 g/t for 521,600 ounces indicated plus 2,693,000 t at 5.89 g/t for 510,000 ounces inferred, and Fenn-Gib at 40.8 Mt grading 0.99 g/t for 1.30 million ounces indicated plus 24.5 Mt at 0.95 g/t for 0.75 million ounces inferred. Fenn-Gib met the 2-million-ounce target set when Barrick sold it three months earlier.
Fenn-Gib hole FG-11-04 cut 1.31 g/t gold over 414.0 m, including 1.54 g/t over 264.0 m, and ended in mineralisation 470 m below surface; shallow mineralisation was extended 200 m north. Three twin holes matched or beat the historic results and check sampling of about 200 core halves averaged 1.12 g/t against 0.91 g/t originally, so the inherited data was if anything understated.
Gold River Trend drilling extended mineralisation up to 450 m below the existing resource (4.22 g/t over 16.0 m, 72.84 g/t over 1.6 m including 116.50 g/t over 1.0 m) and 300 m beyond its eastern limit, with the company seeing scope to follow the structure a further 1.8 km east.
Nine holes and 30 wedge holes (22,479 m) at Bell Creek extended gold 400 m below the existing resource - 5.62 g/t over 28.5 m including 10.85 g/t over 11.4 m, and 7.71 g/t over 8.1 m including 12.58 g/t over 4.6 m - and infill drilling continued upgrading inferred material to indicated.
Underground and surface drilling at Thunder Creek confirmed and extended the deposit above and below the 730 Level, with 7.57 g/t gold over 108.8 m, 7.01 g/t over 112.7 m, 4.70 g/t over 145.7 m and 10.19 g/t over 55.0 m (including 18.95 g/t over 20.5 m). Surface holes also picked up a possible new zone 500 m southwest along the TC-144 trend - the corridor the company would drill out from 2012 as the 144 Gap.
