Mr. Douglas Forster reports
NEWMARKET GOLD IDENTIFIES HIGH-GRADE GOLD MINERALIZATION ON THE NEWLY DISCOVERED EAGLE FAULT WITHIN LOWER PHOENIX SYSTEM AT FOSTERVILLE
Newmarket Gold Inc. has released exploration results from 81 drill holes, comprising 17,002.5 metres, completed during the course of a $2.3-million (U.S.) exploration and resource definition program on the Lower Phoenix and Phoenix systems at the Fosterville gold mine. The westerly dipping Lower Phoenix system hosts a number of growth exploration targets including the Lower Phoenix footwall (LPFW), Lower Phoenix extensions, east dipping, Kestrel and the newly identified Eagle fault. Fosterville continues to produce extremely high-grade gold results, often containing visible gold, both in drill core and underground mine faces. The latest results confirm the presence of exceptionally high-grade drill core and continuity of gold mineralization in the Lower Phoenix system, one area that is a major source of ore at Fosterville.
Highlights and key drill intercepts (outside mineral resources reported December, 2014):
- Discovery of the Eagle fault with several holes reporting extremely
high-grade gold drill intercepts. In particular, 386 grams per tonne gold over 9.15
metres (ETW (estimated true width) 3.35 m) in hole UDH1238 (including 5,283 g/t Au over 0.6 m),
268 g/t Au over 7.85 m (ETW 2.77 m) in hole UDH1255 (including 5,276
g/t Au over 0.35 m) and 73.15 g/t Au over 8.7 m (ETW 7.78 m) in
hole UDH1240A. Visible Gold has also been observed in the upper parts of
Eagle zone in underground exposures;
- Lower Phoenix footwall fault returned high-grade intercept of 77.87 g/t
Au over 6.3 m (ETW 4.33 m) in hole UDH1219A;
- An east-dipping fault returned two significant intercepts with 246 g/t
Au over 0.90 m
(ETW 0.81 m) in hole UDH1298 and 34.47 g/t Au over 5.1 m (ETW 4.09 m) in
hole UDH1294;
- Kestrel structure returned 5.37 g/t Au over 9.75 m (ETW 5.12 m) in hole
UDH1274 and 6.16 g/t Au over 11.05 m (ETW 5.12 m) in hole UDH1122.
Douglas Forster, president and chief executive officer, Newmarket Gold, commented: "The new drill results represent a second consecutive quarter of discoveries including the newly identified Eagle fault and high-grade intercepts related to the previously discovered Lower Phoenix, east-dipping faults and Kestrel structures. These results further expand the size and tenor of mineralization in Lower Phoenix and confirm significant gold mineralization at depth outside previously reported indicated mineral resources. These drill results also represent the highest grades ever recorded at Fosterville and are encouraging as they support our view that Fosterville's grade profile will continue its increasing trend. Over the last six months, the performance and advancement of our exploration program has been impressive and has successfully demonstrated the potential of the Lower Phoenix system. We continue to build confidence in geological model extensions that have the potential to expand resources and reserves southwards along strike and laterally, adjacent to the existing mineral reserve base. Looking ahead, we remain focused on executing on near-term drill targets to ensure future sustainable production at Fosterville. We look forward to providing a mineral resource and reserve update in early 2016 based on our drill results to date and those of ongoing drilling programs."
Fosterville drilling program
The $2.3-million (U.S.) exploration program at Fosterville, which commenced late November, 2014, has resulted in the completion of 81 holes comprising 17,002.5 metres to late June, 2015, using four underground diamond drill rigs. The drilling focused on definition and exploration targets on the Phoenix, Lower Phoenix, Lower Phoenix footwall (LPFW), east-dipping, Kestrel and newly identified Eagle faults. Drilling is continuing with four underground diamond drill rigs continuing to focus on the same targets.
All drill assay intercepts are provided in the table.
Lower Phoenix, Lower Phoenix footwall and Eagle faults
The high-grade drill intercepts reported in holes UDH1255 and UDH1238 are associated with the junction of two mineralized faults, namely the west-dipping Lower Phoenix and east-dipping Eagle faults. Adjacent to this junction the moderately west-dipping LPFW structures are also strongly mineralized. All these structures commonly have visible gold in drill core and underground development. The overall mineralized system plunges to the south for at least 450 m and is untested along strike. The Lower Phoenix area will continue to be the focus of step-out exploration and resource development programs.
The identification of these high-grade mineralized zones represents new and exciting exploration targets and assists with the geological understanding at Fosterville. The upper extents of this zone have been exposed through recent underground development on the 4,340 metres and 4,320 metres levels with detailed mapping aiding the focus of continuing detailed drill programs which are required to adequately define these enriched mineralized zones.
The newly identified high-grade Eagle fault is located in the footwall of the Lower Phoenix zone and differs from the previously mapped east-dipping faults due to its structural relationship with bedding. Although it is most strongly mineralized at the junction with the Lower Phoenix fault, the mineralization is also higher grade downdip for a distance of approximately 60 metres. The dip and strike extent provides a significant opportunity for mineral resource/reserve growth laterally adjacent to existing mineral reserves within the Lower Phoenix zone. The exploration and resource development will focus on this area in the coming months to allow for these higher-grade zones to be included in a mineral resource and reserve update for the Fosterville in early 2016. This drilling has the potential to increase mineral reserves on these high-grade zones and contribute to the near-term production profile due to the proximity to existing development.
East-dipping faults and Kestrel structures
Drilling to date has improved confidence in the mineralization associated with the east-dipping faults and Kestrel structure, which also occur next to the Lower Phoenix mineral reserves. The width and high grades of intercepts in drill holes UDH1298, UDH1294, UDH1274 and UDH1122 highlight the potential for mineral resource growth in these zones.
The east-dipping mineralized zones occur on a number of faults that are mainly parallel to bedding. Underground mapping has identified highly mineralized ladder stockwork veins perpendicular to the bedding orientation. The zones that are typically limited in dip extent, occur in the footwall of the Lower Phoenix zone and have been defined over a one-kilometre strike length. The east-dipping faults contain significant visible gold in proximity to west-dipping fault junctions.
The Kestrel mineralization is associated with a syncline axial plane and its limbs in proximity to the syncline. The strongest mineralization is associated with the axial plane and occurs as a vertical zone of quartz-carbonate stockwork veining and disseminated sulphide mineralization. The mineralization is traceable for approximately one km in strike and has dip lengths of up to 80 m. Preferentially enriched zones will be closely evaluated in upcoming mineral reserve studies.
Phoenix structure
Drilling has continued to test for along strike (downplunge) extensions of the Phoenix mineralization as part of the company's growth project plan. Recently completed drilling targeted the Phoenix mineralization, approximately 25 m south of mineral resources and 125 m south of the central mineral reserves. A drill result of 3.4 grams per tonne gold over 3.4 m (ETW 3.33 m) in UDE113A confirms that the Phoenix structure continues to be mineralized to the 6,325 mN level and requires additional drilling to evaluate mineral resource/reserve growth potential along this structure.
In addition, continued resource definition drilling on the Phoenix structure has also returned positive drill results outside measured and indicated mineral resource extents, with UDH1016 returning 7.49 g/t Au over 5.05 m (ETW 4.59 m).
Qualified person
Mark Edwards, MAusIMM (CP), MAIG, general manager, exploration, Newmarket Gold, is a qualified person as such term is defined in National Instrument 43-101, and has reviewed and approved the technical information and data included in this press release.
DRILL ASSAY INTERCEPTS
Estimated
Hole ID From To Interval true width Au
(m) (m) (m) (m) (g/t)
UDH1158 0.30 5.80 5.50 0.76 7.09
UDH1169 4.35 14.80 10.45 8.48 12.78
UDH1170 0.05 1.10 1.10 0.27 10.87
UDH1176 68.45 69.00 0.55 0.51 7.72
UDH1177 83.00 88.65 5.65 3.81 15.39
UDH1179 108.00 114.60 6.60 4.90 11.11
UDH1201 83.65 90.40 6.75 5.58 7.35
UDH1207 130.60 132.00 1.40 1.34 13.64
UDH1211 143.00 145.45 2.45 2.20 12.24
UDH1212 241.50 253.60 12.10 2.27 11.44
UDH1216 239.20 259.25 20.05 3.68 42.90
Including 239.55 243.05 3.50 0.64 206
UDH1238 206.60 215.75 9.15 3.35 386
Including 215.15 215.75 0.60 0.22 5,283
UDH1240 273.00 277.00 4.70 0.24 3.09
UDH1240 282.05 289.00 6.95 0.35 12.80
UDH1240A 276.70 279.80 3.10 2.55 2.98
UDH1240A 282.20 288.95 6.75 5.54 9.14
And 295.00 303.70 8.70 7.78 73.15
UDH1241 189.20 193.80 4.60 1.16 7.38
UDH1241 250.40 272.20 21.80 0.86 13.00
UDH1241 269.80 270.50 0.70 0.70 9.13
UDH1244 180.00 182.00 2.00 1.71 6.47
UDH1245 157.80 163.05 5.25 4.52 7.34
UDH1254 130.80 131.75 0.95 0.84 7.29
UDH1255 151.55 159.40 7.85 2.77 268
Including 158.15 158.50 0.35 0.12 5,276
UDH1256 114.30 120.60 6.30 5.67 9.66
UDH1267 160.60 163.20 2.60 2.54 24.50
UDH1272 114.25 115.30 1.05 1.04 8.78
UDH1274 132.35 134.90 2.55 2.39 3.97
UDH1284 210.30 210.60 0.30 0.29 4.38
UDH1285 234.00 235.40 1.40 1.28 6.29
UDH1286 102.00 103.35 1.35 1.28 5.33
UDH1288 100.55 104.20 3.65 3.55 8.92
UDH1290 131.00 135.70 4.70 4.45 17.05
UDH1173 19.65 20.00 0.35 0.30 7.01
UDH1192 245.00 248.00 3.00 2.86 3.79
UDH1202 198.15 201.40 3.25 1.85 8.78
UDH1215 241.50 245.55 4.05 3.65 6.34
UDH1218 260.30 262.50 2.20 1.45 5.70
UDH1219A 244.60 250.90 6.30 4.33 77.87
Including 254.60 255.00 0.40 0.27 332
UDH1240 290.00 302.50 12.50 7.63 7.25
UDH1247 269.60 273.70 4.10 3.40 6.20
UDH1279 293.30 295.30 2.00 1.64 2.97
UDH1285 269.90 272.00 2.10 1.45 10.79
UDE113A 545.50 548.90 3.40 3.33 3.40
UDE114 548.60 550.50 1.90 1.90 0.37
UDH1013 257.80 260.80 3.00 2.93 3.14
UDH1016 272.60 277.65 5.05 4.59 7.49
UDH1016 281.05 283.55 2.50 2.06 13.26
UDH1136 287.60 289.65 2.05 1.86 4.97
UDH1137A 262.95 263.35 0.40 0.39 4.88
UDH1188 85.25 86.95 1.70 0.63 14.12
UDH1208 36.95 38.55 1.60 0.64 4.52
UDH1211 45.35 47.50 2.15 0.99 4.40
UDH1227 115.80 118.10 2.30 1.25 6.98
UDH1244 67.85 68.30 0.45 0.19 4.75
UDH1245 53.60 56.00 2.40 0.98 6.55
UDH1175 109.80 112.20 2.40 2.34 5.87
UDH1191 217.75 226.95 9.20 3.01 9.20
UDH1191 241.20 248.00 6.80 1.77 8.85
UDH1202 159.05 159.70 0.65 0.61 3.86
UDH1212 228.20 231.80 3.60 0.87 10.29
UDH1215 260.50 265.70 5.20 0.30 6.50
UDH1218 262.85 270.80 7.95 7.29 15.51
UDH1219A 251.65 264.35 12.70 1.92 17.30
UDH1236 212.00 224.15 12.15 1.63 11.59
UDH1236 232.10 235.45 3.35 1.02 11.85
UDH1238 217.00 219.80 2.80 0.99 6.80
UDH1238 260.35 263.25 2.90 1.21 4.02
UDH1241 196.70 199.20 2.50 1.18 6.23
UDH1244 197.40 207.65 10.25 8.01 5.68
UDH1247 276.60 284.00 7.40 0.64 7.12
UDH1254 121.00 125.15 4.15 3.85 7.36
UDH1267 241.90 244.10 2.20 2.06 6.70
UDH1284 214.75 217.30 2.55 2.40 4.47
UDH1284 267.05 269.20 2.15 2.13 3.30
UDH1285 266.60 275.50 8.90 7.43 8.70
UDH1286 190.00 193.55 3.55 3.27 10.34
UDH1294 75.40 80.50 5.10 4.09 34.47
Including 76.85 77.80 0.95 0.76 158
UDH1295 47.75 48.55 0.80 0.69 10.17
UDH1295 56.35 58.75 2.40 2.24 8.96
UDH1296 82.95 85.90 2.95 2.15 9.45
UDH1298 66.00 66.90 0.90 0.81 246
UDH1299 62.80 67.50 4.70 4.02 17.15
UDH1306 53.60 54.00 0.40 0.40 4.49
UDH0629 109.35 110.70 1.35 0.74 2.42
UDH1071 181.20 182.90 1.70 1.47 4.85
UDH1115 179.00 179.45 0.45 0.37 2.70
UDH1117 182.80 185.60 2.80 2.46 4.79
UDH1121 76.90 77.60 0.70 0.66 1.73
UDH1121 112.30 112.85 0.55 0.45 0.74
UDH1122 131.80 142.85 11.05 5.12 6.16
UDH1124 72.80 73.20 0.40 0.38 0.54
UDH1124 99.30 100.30 1.00 0.72 2.78
UDH1125 142.40 149.00 6.60 3.04 4.53
UDH1126 72.90 73.25 0.35 0.35 0.60
UDH1126 102.80 103.10 0.30 0.24 9.91
UDH1127 79.00 82.70 3.70 3.01 3.69
UDH1127 93.00 95.90 2.90 2.55 3.75
UDH1127 122.50 123.30 0.80 0.63 1.34
UDH1128 83.00 84.00 1.00 0.99 2.22
UDH1128 121.60 121.90 0.30 0.24 5.35
UDH1130 146.00 151.70 5.70 1.73 4.10
UDH1130 154.85 157.70 2.85 2.02 4.72
UDH1132 141.30 149.00 7.70 3.33 4.52
UDH1133 127.30 130.00 2.70 1.56 2.99
UDH1133 136.50 138.00 1.50 1.25 2.92
UDH1134 88.90 90.10 1.20 1.07 1.01
UDH1134 111.85 120.05 8.20 3.59 4.80
UDH1134 141.60 142.75 1.15 1.01 4.47
UDH1135 96.20 96.60 0.40 0.35 15.30
UDH1135 135.40 138.20 2.80 1.42 5.42
UDH1135 149.60 151.05 1.45 1.03 2.78
UDH1156 104.40 108.50 4.10 3.39 4.63
UDH1156 166.85 168.20 1.35 1.00 3.48
UDH1157 159.85 166.75 6.90 0.62 3.48
UDH1157 180.30 185.20 4.90 3.51 2.86
UDH1174 25.80 26.90 1.10 1.10 10.33
UDH1175 28.50 30.80 2.30 1.89 6.82
UDH1175 53.00 54.35 1.35 1.29 1.27
UDH1176 26.80 28.05 1.25 1.19 2.77
UDH1177 29.20 31.40 2.20 1.88 8.03
UDH1177 59.70 61.25 1.55 1.38 9.70
UDH1178 36.05 36.75 0.70 0.58 8.47
UDH1178 64.15 64.95 0.80 0.65 6.40
UDH1179 36.00 36.50 0.50 0.38 2.45
UDH1179 72.15 72.90 0.75 0.52 3.32
UDH1186 49.05 51.45 2.40 2.34 3.99
UDH1188 66.90 67.95 1.05 0.83 17.00
UDH1188 91.45 93.20 1.75 1.05 2.91
UDH1201 32.30 33.50 1.20 0.97 3.29
UDH1201 68.90 72.90 4.00 2.55 4.87
UDH1202 25.90 28.45 2.55 2.50 3.31
UDH1203 24.80 25.15 0.35 0.34 3.60
UDH1206 53.20 53.80 0.60 0.57 3.38
UDH1206 82.75 84.60 1.85 1.61 0.77
UDH1207 50.20 51.65 1.45 1.33 2.72
UDH1207 70.30 71.00 0.70 0.48 0.99
UDH1211 66.45 68.30 1.85 1.61 8.05
UDH1231 174.30 176.10 1.80 1.70 3.92
UDH1244 83.00 84.25 1.25 0.82 1.63
UDH1245 73.15 74.00 0.85 0.58 8.60
UDH1254 37.00 38.00 1.00 0.94 1.14
UDH1254 69.30 70.00 0.70 0.62 3.73
UDH1255 38.60 39.20 0.60 0.54 1.11
UDH1255 67.10 70.05 2.95 2.82 2.92
UDH1256 34.90 35.40 0.50 0.49 3.71
UDH1256 36.80 40.30 3.50 3.38 5.70
UDH1256 66.00 67.00 1.00 0.95 0.81
UDH1256 102.50 103.40 0.90 0.64 3.59
UDH1265 66.10 67.25 1.15 0.80 2.27
UDH1265 99.15 100.15 1.00 0.97 7.77
UDH1267 62.00 65.00 3.00 2.75 5.88
UDH1267 69.80 74.50 4.70 4.07 4.15
UDH1267 96.70 97.30 0.60 0.57 1.30
UDH1271 52.80 53.95 1.15 0.72 5.90
UDH1271 79.25 80.80 1.55 1.27 3.01
UDH1272 31.60 34.70 3.10 2.91 2.66
UDH1272 35.70 40.20 4.50 3.14 3.21
UDH1272 67.85 70.25 2.40 2.00 2.51
UDH1274 35.00 44.75 9.75 5.12 5.37
UDH1274 76.00 77.00 1.00 0.77 1.88
UDH1274 125.00 126.40 1.40 1.03 4.16
UDH1275 29.25 31.15 1.90 1.83 4.61
UDH1275 33.65 38.70 5.05 4.84 3.71
UDH1275 64.30 64.80 0.50 0.47 0.47
UDH1284 96.00 97.30 1.30 1.21 5.22
UDH1284 121.75 122.30 0.55 0.55 1.73
UDH1285 98.80 99.65 0.85 0.80 3.63
UDH1285 132.00 133.40 1.40 1.37 13.84
UDH1286 30.35 32.00 1.65 1.58 11.26
UDH1286 33.00 35.40 2.40 2.20 3.53
UDH1286 61.20 62.30 1.10 1.03 9.25
UDH1286 90.00 93.20 3.20 1.77 4.92
UDH1288 27.95 30.00 2.05 1.96 3.37
UDH1288 33.80 37.05 3.25 3.03 3.17
UDH1288 61.10 61.45 0.35 0.34 2.34
UDH1288 88.65 92.60 3.95 2.07 5.71
UDH1290 37.00 38.80 1.80 1.66 5.29
UDH1290 65.70 71.00 5.30 4.97 4.56
Drilling and assay quality assurance/quality control
Newmarket Gold has in place quality control systems to ensure best practice in drilling, sampling and analysis
of drill core. All diamond drill hole collars are accurately surveyed using a Leica Total Stations
instrument and downhole deviations are measured by electronic multishot cameras.
All reported drill intercepts are from NQ-sized diamond drill core that was either whole core sampled or cut
longitudinally in half with a diamond saw. In the cases of sawn drill core, one-half of the drill-core was sent for
assay and the other half retained for reference. Drill core sample intervals vary between 0.3 and 1.2 m in length
and were determined from logging of sulphide and visible gold.
Assay results are based on 25-gram charge fire assays. Mean grades are calculated using a variable lower-grade
cut-off (generally two g/t Au) and maximum two m internal dilution. No upper gold grade cut has been applied to
the data. However, during future resource work the requirement for assay top cutting will be assessed.
Drill samples were assayed at On Site Laboratories, an independent laboratory in Bendigo, Victoria. The facility
is registered ISO9001:2008 (CERT-C33510). A lesser number of samples was also assayed at Gekko Systems in
Ballarat, Victoria.
We seek Safe Harbor.
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