Mr. Douglas Forster reports
NEWMARKET GOLD ACHIEVES CONTINUED EXPLORATION SUCCESS AT COSMO AND STAWELL GOLD MINES
Newmarket Gold Inc. has released results from an additional 7,805 metres of drilling, including 39 drill holes at the Cosmo gold mine, Northern Territory, Australia, and 2,070 m of drilling in four drill holes at Stawell gold mines, Victoria, Australia. These results are part of Newmarket's 2015 growth exploration program and include continued intercepts of significant gold mineralization from the Sliver lode and Cosmo Deeps drilling at Cosmo, and at the Aurora B discovery at Stawell.
Highlights and key drill intercepts (outside mineral resources reported December, 2014):
- Development of the Sliver lode at the Cosmo mine with additional high-grade results including 14.79 grams per tonne gold over 11.4 metres (estimated true width (ETW) 11.4 m) in hole
CE67518 and 14.07 g/t Au over six m (ETW 5.83 m) in hole CE67522;
- The Sliver lode drilling is approximately 25 m from current underground
development highlighting the potential additional tonnes to be included
in the near-term mine plan;
- Downplunge drilling in the footwall area of the Cosmo deposit, the
Cosmo Deeps drill program, has identified mineralization approximately
200 m downplunge from the current base of mineral resources at Cosmo.
The Cosmo Deeps drilling program was successful and includes intercepts
such as 5.85 g/t Au over 5.70 m (ETW 4.2 m) in hole CE84099 and 3.09 g/t
Au over 6.4 m (ETW five m) in hole CE840100;
- At Stawell a second phase of drilling in the Aurora B discovery target
returned high-grade gold intercepts containing visible gold of 8.03 g/t
Au over 8.80 m (ETW five m), including 51.80 g/t Au over 0.80 m
(ETW 0.45 m) in hole MD6347.
Douglas Forster, president and chief executive officer, Newmarket Gold, commented: "We are extremely pleased with the drilling results from the Sliver lode and Cosmo Deeps downplunge targets, which have intersected significant gold mineralization in previously undrilled areas close to current infrastructure at Cosmo. With these positive results, we continue to invest in additional drilling to advance the resource potential of these targets. At Stawell, continued drilling of the Aurora B discovery has returned additional high-grade results containing visible gold. These results combined with historical drilling, outline a mineralized surface approximately 140 m along strike and 140 m downdip with the Aurora B discovery remaining open for further expansion.
"To date, Newmarket's ongoing 2015 growth exploration programs totalling $5.0-million (U.S.) have resulted in three exciting and significant gold discoveries, one at each of our operations including: the Eagle fault discovery at Fosterville, the Aurora B discovery at Stawell and the Western lodes discovery at Cosmo. In addition, drilling has also expanded the downplunge potential of the Sliver and Cosmo Deeps targets at Cosmo, and the Lower Phoenix zone at Fosterville. All of Newmarket's growth exploration programs are designed to target significant resource expansion opportunities with the goal of increasing the life of mine reserves at our operations."
Cosmo drilling program
Approximately 16,700 m of exploration drilling has been completed at the Cosmo mine since the start of 2015 with previously reported drill results for the Western lodes and the inner metasediment programs released July, 2015 (see Newmarket press release dated July 22, 2015). Further work has been completed on these areas with results expected to be released in the second half of 2015. In total, approximately $3.0-million (U.S.) has been spent on exploration activities in the Northern Territory during 2015 with the majority of these expenditures targeting gold targets near infrastructure at Cosmo.
In addition to the results released in July, 2015, drilling at Cosmo mine continued to target the Sliver lode, a mineralized lode located in the hangingwall of the F1 fault located only 25 m from current underground mine development. Sliver lode drilling suggests results could form part of the near-term mine plan for the Cosmo mine. Key intercepts from this drilling include 14.79 g/t Au over 11.4 m (ETW 11.4 m) in hole CE67518 and 14.07 g/t Au over six m (ETW 5.83 m) in hole CE67522.
The Sliver zone is a subsidiary fold on the Eastern hangingwall limb of the Cosmo anticline fold and to date has produced a significant number of tonnes of mill feed for the Cosmo mine. Previously the downplunge extension of the Sliver zone was poorly understood and it was believed the mineralization terminated downplunge by the F1 fault. The latest results show that this is not the case and the zone is still open at depth suggesting the potential to extend the current mine plan into the future. With this improved understanding of the Sliver lode, a $530,000 (U.S.) surface drill program is expected to commence to test the extent of mineralization downplunge. Since mineral resources reported in December, 2014, a total of 6,417 m of drilling in 37 NQ diamond holes has been completed on the Sliver lode. A mineral resource and mineral reserve update for the Sliver lode will be undertaken at year-end 2015 incorporating the recent and continuing drilling results.
See results for the Sliver lode drilling in the table.
Further to the drilling completed into the Sliver lode, two drill holes, out of a four-hole program, were completed on Cosmo Deeps and tested mineralization around 200 m downplunge of current base of reported mineral resources at Cosmo. Both diamond holes (CE84099 and CE840100) have returned significant results, such as 5.85 g/t Au over 5.70 m (ETW 4.29 m) in hole CE84099, located within the 300 lode. In addition to these significant results in the 300 lode, a previously unidentified lode has been intersected in these two holes with results of 3.87 g/t Au over 9.3 m (ETW 7.2 m) in hole CE840100 and 2.37 g/t Au over 5.2 m (ETW 3.8 m) in hole CE84099. These intercepts are located approximately 500 m from current workings and are significant. Near-term exploration at Cosmo mine continues to focus on advancing the mineral resource potential of these zones.
The very encouraging Cosmo Deeps and Sliver drill results have identified an opportunity to drill the downplunge potential of these targets from surface. This program is expected to commence in late 2015 and will cover 2,000 m of drilling to allow for future infrastructure planning for the mine. This drilling is planned to intersect the mineralization around 100 m downplunge from recent Sliver lode drilling results as well as around 80 m above the intercept in drill hole CE840100. This program has the potential to add significant mineralization extension to the Cosmo deposit.
Stawell drilling program
Newmarket is also pleased to announce further successful results during the second phase of the Aurora B discovery drill program at Stawell gold mines. This program is following up on drill results reported on July 22, 2015, where drilling focused on the Hampshire lode on the East flank of the Magdala basalt, approximately 400 to 500 m below surface. The first phase of drilling included a high-grade gold intercept of 7.06 g/t Au over 17.80 m (ETW 8.3 m) in MD6339 (reported July 22, 2015). The second phase of drilling, comprising four holes for 2,067 m, returned high-grade gold intercepts containing visible gold of 8.03 g/t Au over 8.80 m (ETW five m), including 51.80 g/t Au over 0.80 m (ETW 0.45 m) and 2.59 g/t Au over 5.50 m (ETW 3.1 m) in hole MD6347. These high-grade results, when considered with historical drill results, demonstrate a mineralized surface of approximately 140 m along strike and 140 m downdip, and the Aurora B discovery remains open for further expansion. Results are pending for the fourth and final hole.
Drilling of the Aurora A target has now commenced from underground and comprises two diamond holes for a total of 2,000 m. The Aurora A target is located vertically below the Aurora B discovery and is separated by the South fault, which has thrust the Aurora B upward and to the southwest. The Aurora A target was previously known as Wonga Gift (see Northgate Minerals press release dated Nov. 1, 2010) and has a significant historic drill intercept of 13.7 g/t Au over 5.45 m (ETW 4.90 m) from surface diamond hole SD649A. The present drill program has an estimated cost of $250,000 (U.S.) and will test an area approximately 700 m along strike to the north from existing Aurora A drilling.
The Aurora targets on the East basalt flank represent near-mine exploration targets in an area with no recorded production. In comparison, the West basalt flank has produced over 2.3 million ounces of gold. Exploration of the East basalt flank has been prioritized based on the more accessible Western flank targets and the location of mine infrastructure, which is also situated on the west flank. Work has commenced on an exploration decline, 220 m in length, to provide suitable drill platforms to support future Aurora B drill programs.
Both the Aurora A and B programs have demonstrated that targeted exploration activities at Stawell gold mines still have the opportunity for success. Through the detailed work by the Stawell Geology team reviewing both historical and current mining and exploration activities, targets such as the Aurora prospect can still be identified in close proximity to a mine that has been active since the mid-1980s. Newmarket will continue to review and support targets, such as Aurora at Stawell, with the plan of attaining organic growth at the company's current mines.
All drill intercept results are shown in the table.
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 FOR COSMO UNDERGROUND DRILLING PROGRAMS
Downhole Estimated true
Hole ID From To interval width Gold grade
(m) (m) (m) (m) (g/t Au)
CE67501 162.35 173 4.3 10.62 6.50
and 178.35 182.75 4.4 4.39 2.04
and 194.5 205.7 11.2 11.14 4.19
and 249.75 253.5 3.8 3.71 2.69
CE67502 No significant intercept
CE67504 113 118 5.0 4.54 2.97
CE67505 99.3 106.6 7.3 7.01 3.22
and 113.4 119 5.6 5.38 5.03
CE67506 129 133 4.0 3.64 2.33
CE67507 115 119 4.0 3.85 9.71
CE67508 98.2 100.3 2.1 2.02 8.64
and 136.25 138.9 2.7 2.55 2.47
CE67509 107.8 113.5 5.7 4.15 9.90
and 117.8 121 3.2 2.33 4.00
CE67510 115.7 117.8 2.1 1.53 2.14
CE67511 No significant intercept
CE67512 No significant intercept
CE67513 112.95 114.95 2.0 1.46 2.15
CE67514 No significant intercept
CE67515 103.6 105.7 2.1 2.07 8.58
CE67516 119 123.8 4.8 4.74 13.87
and 135.3 139.5 4.2 4.15 5.44
and 163.1 167 3.9 3.85 4.88
CE67517 107.3 111 3.7 3.65 4.09
CE67518 124.2 135.6 11.4 11.40 14.79
CE67519 126.3 130.8 4.5 4.49 3.79
CE67520 No significant intercept
CE67521 137 143.5 6.5 5.63 4.67
CE67522 112 118 6.0 5.83 14.07
CE67523 134.25 136.25 2.0 1.94 2.06
CE67524 No significant intercept
CE67525 No significant intercept
CE67526 No significant intercept
CE67527 No significant intercept
CE67528 No significant intercept
CE67529 126.2 136.45 10.3 10.24 3.56
and 160.2 165 4.8 4.80 4.44
and 169 175 6.0 6.00 4.77
CE67531 120.5 123.5 3.0 2.78 7.06
CE67533 132.9 137 4.1 4.06 8.50
CE67536 137 139 2.0 1.98 2.81
CE67538 No significant intercept
CE67539 101.3 107.3 6.0 4.59 3.01
CE69038 164.4 168 3.6 3.43 4.59
and 179 184 5.0 4.76 2.00
CE69043 151 155 4.0 3.73 4.36
CE69048 186.1 190.4 4.3 4.25 2.15
CE69052 181 185 4.0 4.00 2.66
and 188.8 204.3 15.5 15.50 4.62
and 210.6 218.2 7.6 7.60 5.26
and 236 239.1 3.1 3.10 4.20
Cosmo Deeps drilling results
CE84099 523 528.5 5.5 3.80 2.37
and 565.1 567.6 2.5 1.73 2.22
and 580 585.7 5.7 4.20 5.85
CE840100 294 297 3.0 2.30 3.89
and 336 339 3.0 2.31 2.51
and 352.9 356.6 3.7 2.87 2.05
and 474.5 478.75 4.3 3.29 16.17
and 615.45 624.7 9.3 7.21 3.87
incl. 3.7 2.90 6.21
and 691.75 702 10.3 8.07 2.75
incl. 6.4 5.04 3.09
DRILL ASSAY INTERCEPTS FOR STAWELL UNDERGROUND DRILLING PROGRAMS
Downhole Estimated true
Hole ID From To interval width Gold grade
(m) (m) (m) (m) (g/t Au)
MD6345 233.55 235.65 2.10 1.80 1.00
and 267.10 267.95 0.85 0.70 3.45
and 283.85 284.90 1.05 0.90 5.44
MD6346 214.90 222.80 7.90 5.90 0.70
and 346.30 349.30 3.00 1.60 2.47
and 396.80 398.40 1.60 0.85 1.46
MD6347 430.30 431.40 1.10 0.80 0.78
and 541.50 547.70 6.20 3.50 1.39
and 553.60 562.40 8.80 5.00 8.03
including 559.00 559.80 0.80 0.45 51.80
and 568.80 574.30 5.50 3.10 2.59
and 578.00 578.60 0.60 0.35 7.93
MD6353 Results pendingDrilling 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 (Fosterville and Stawell) or by using a downhole Gyro instrument (Cosmo).
All reported drill intercepts are from NQ2- or NQ-sized diamond drill core that was either whole core sampled or cut longitudinally in half with a diamond saw depending on the requirements to keep core for future reference. 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 0.2 and 1.5 m in length, and were determined from logging of sulphide and visible gold.
Assay results are based on either a 30-gram (Stawell) or 50-gram (Cosmo) charge fire assay. Mean grades are calculated using a variable lower grade cut-off (generally two g/t Au) and maximum contiguous 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 from the Cosmo deposit were assayed at North Australian Laboratories Pty. Ltd., an independent laboratory in Pine Creek, Northern Territory.
Drill samples from the Stawell deposit were assayed at ALS Laboratories Pty. Ltd., an independent laboratory in Orange, New South Wales.
All mine geology and exploration teams conduct site audits and reviews from time to time at the independent laboratories, as well as conduct intralaboratory analysis of results to test the quality of reported results. All reviews of QA/QC data have not identified any significant issues that cannot be resolved prior to results being used for modelling or reporting.
We seek Safe Harbor.
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