MONTREAL, QUEBEC
-- (MARKET WIRE)
-- 11/28/12
Beaufield Resources Inc. ("Beaufield" or the "Company") (TSX VENTURE:BFD) is pleased to announce that SGS Canada Inc. ("SGS") has estimated that the Tortigny deposit contains:
-- Measured Resources of 726,000 tonnes grading 2.11% Copper (Cu), 4.28%
Zinc (Zn), 57.59 g/t Silver (Ag), 0.41 g/t Gold (Au);
-- Indicated Resources of 119,000 tonnes grading 1.36% Copper, 4.34% Zinc,
41.20 g/t Silver, 0.27 g/t Gold; and
-- Total Measured and Indicated Resources ("the Resource") of 845,000
tonnes grading 2.01% Copper, 4.29% Zinc, 55.29 g/t Silver, 0.39 g/t
Gold, all compliant with National Instrument 43-101 ("NI 43-101").
The Resource was separated into In-Pit Resources and Underground Resources ("U/G") (See Figure 1 at http://media3.marketwire.com/docs/BFD_Figure1.pdf). The In-Pit Resources were confined to an optimised pit shell using a net smelter return (NSR) cut-off grade of $38.50/t and the Underground Resources were estimated based on an NSR cut-off grade of $85/t. See Table 1 for the breakdown of In-Pit and Underground Resources.
Table 1: Base Case Tortigny Resource Estimates
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NSR
cut-off Tonnes (i) Zn Cu Ag Au Zn eq
Zone ($US/t) Category (t) (%) (%) (g/t) (g/t) (%)
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In-Pit Measured 247,000 3.65 1.20 38.89 0.23 6.20
$38.5 Indicated 28,000 2.80 0.56 23.13 0.12 3.63
M + I 275,000 3.56 1.13 37.29 0.22 5.94
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U/G Measured 479,000 4.61 2.58 67.24 0.50 11.11
$85 Indicated 91,000 4.82 1.61 46.76 0.31 8.12
M + I 570,000 4.64 2.43 63.97 0.47 10.63
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Total Measured 726,000 4.28 2.11 57.59 0.41 9.44
Indicated 119,000 4.34 1.36 41.20 0.27 7.06
M + I 845,000 4.29 2.01 55.29 0.39 9.10
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For the resources estimate, the following definitions were used:
NSR Value ($US/t) =
Zn_% x 22.04 x Zn_recov x Zn_payable x Zn_price
+ Cu_% x 22.04 x Cu_recov x Cu_payable x Cu_price
+ Ag_g/t x 0.03215 x Ag_recov x Ag_payable x Ag_price
+ Au_g/t x 0.03215 x Au_recov x Au_payable x Au_price
Zn eq (%) =
Zn_% x Zn_recov x Zn_payable
+ Cu_% x Cu_recov x Cu_payable x (Cu_price/Zn_price)
+ Ag_g/t x Ag_recov x Ag_payable x (0.03215 x Ag_price) / (22.04 x Zn_price)
+ Au_g/t x Au_recov x Au_payable x (0.03215 x Au_price) / (22.04 x Zn_price)
Prices used are $0.85 per pound for Zn, $3.16 per pound for Cu, $29.73 per ounce for Ag and $1,603.50 per ounce for Au. Other assumptions are 73% mill recovery and 75% paid for Zn, 86% mill recovery and 75% paid for Cu, 65% mill recovery and 80% paid for Ag, 50% mill recovery and 95% paid for Au.
All resource estimates are in-situ and undiluted.
The Tortigny deposit is 100% owned by Beaufield. It is situated approximately 150km north of Chibougamau, Quebec and approximately 42 km from the past producing Troilus Mine (see attached location map, figure 2 at http://media3.marketwire.com/docs/BFD_Figure2.pdf). The property is located next to an all-weather year round maintained gravel highway, and only 27 kilometres from an electrical power line capable of providing sufficient power for a large mining operation.
The Tortigny drilling database used to estimate the Resource contains 123 diamond drill holes totalling 31,942 metres of drilling completed by Noranda Mines and Exploration Inc. from 1995 to 2005 (52 holes) and by Beaufield Resources Inc. from 2008 to 2011 (71 holes). The sectional spacing covering the deposit averages approximately 25 metres. In 2010 and 2011, 64 holes were drilled into the Tortigny deposit for a total of 16,819 metres. The best intercept was hole TO-11-42 with 6.87% Copper, 14.90% Zinc, 159.28 g/t Silver and 0.84 g/t Gold over 23 meters.
The Tortigny polymetallic mineralized lens consists of a deformed, high grade, Cu-Zn-Ag-Au massive sulphides orebody hosted by meta-sedimentary rocks (argillite and siltstone) intercalated between two geochemically distinct mafic volcanic (basalt) units.
The geological setting of Beaufield's Troilus property and the presence of high-grade volcanogenic massive sulphide (VMS) deposits like Tortigny makes it an excellent location for further exploration. Four different cycles of volcanic rocks, constituted of basalt, andesite, pyroclastics and felsic tuff, in contact with sedimentary sequences are present on the Troilus property creating a fertile environment for the discovery of polymetallic and gold mineralization.
In May 2012, Beaufield contracted Fugro Airborne Surveys to fly a 550 line-km HeliTEM survey in the area surrounding the Tortigny deposit and several electro-magnetic anomalies were identified. These anomalies will be investigated by Beaufield's geological team as it is believed that these anomalies may be associated with the Tortigny deposit given their relative close proximity to the deposit.
The Tortigny deposit and the past producing Troilus Mine (49 Million tonnes at 1.38 g/t Au, 1.23 g/t Ag and 0.12% Cu) are indicative of the area's high potential. VMS mining districts usually contain a cluster of VMS deposits (example Noranda Camp). Various VMS deposits and historical showings have been discovered within a radius of 30km around Tortigny. The De Maures deposit with historical inferred resources (not NI 43-101 compliant: see Note 3) of 350,000 tonnes at 7.84% Zn, 1.35% Cu and 22.31g/t Ag (Geologie Quebec, PRO 99-02), the Lessard deposit with 740,000 tonnes of Inferred Resources at 3.50% Zn, 1.88% Cu, 38.62 g/t Ag and 0.84 g/t Au (2008, NI 43-101 compliant, Source: www.landore.com/lessard.htm) are examples of other deposits in the area.
The mineral resource estimate has been subjected to different NSR cut-off variations to test the sensitivity of the cut-off. The In-Pit results are listed in Table 2 and Underground results are listed in Table 3.
Table 2: NSR cut-off Sensitivity: Tortigny In-Pit portion of the deposit ($38.5/t NSR Cut-off).
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NSR
cut-off Tonnes (i) Zn Cu Ag Au Zn eq
Zone ($US/t) Category (t) (%) (%) (g/t) (g/t) (%)
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In-Pit $ 20 Measured 297,000 3.21 1.04 34.23 0.20 5.41
$ 30 269,000 3.44 1.13 36.74 0.21 5.83
$ 38.5 247,000 3.65 1.20 38.89 0.23 6.20
$ 50 219,000 3.91 1.31 41.72 0.24 6.68
$ 60 191,000 4.18 1.43 44.87 0.26 7.23
$ 85 135,000 4.87 1.75 52.93 0.30 8.64
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$ 20 Indicated 33,000 2.57 0.51 21.44 0.11 3.34
$ 30 30,000 2.67 0.54 22.33 0.11 3.48
$ 38.5 28,000 2.80 0.56 23.13 0.12 3.63
$ 50 23,000 2.99 0.59 24.53 0.13 3.87
$ 60 16,000 3.27 0.66 26.93 0.15 4.27
$ 85 5,000 3.69 0.85 31.40 0.17 5.11
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Total $ 20 Measured 330,000 3.15 0.99 32.95 0.19 5.20
$ 30 & 299,000 3.36 1.07 35.29 0.20 5.59
$ 38.5 Indicated 275,000 3.56 1.13 37.29 0.22 5.94
$ 50 270,000 3.59 1.15 37.67 0.22 6.00
$ 60 235,000 3.87 1.27 40.71 0.23 6.52
$ 85 140,000 4.83 1.72 52.16 0.30 8.51
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Table 3: NSR cut-off Sensitivity: Tortigny Underground portion of the deposit ($85/t NSR Cut-off).
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NSR
cut-off Tonnes (i) Zn Cu Ag Au Zn eq
Zone ($US/t) Category (t) (%) (%) (g/t) (g/t) (%)
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U/G $ 65 Measured 545,000 4.29 2.37 62.34 0.46 10.26
$ 75 514,000 4.44 2.47 64.60 0.48 10.65
$ 85 479,000 4.61 2.58 67.24 0.50 11.11
$ 95 442,000 4.81 2.71 70.38 0.52 11.65
$ 105 409,000 4.99 2.83 73.26 0.55 12.15
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$ 65 Indicated 137,000 4.21 1.26 39.83 0.27 6.73
$ 75 111,000 4.55 1.43 43.13 0.29 7.43
$ 85 91,000 4.82 1.61 46.76 0.31 8.12
$ 95 79,000 5.02 1.74 49.59 0.33 8.65
$ 105 68,000 5.21 1.86 52.47 0.35 9.14
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Total $ 65 Measured 682,000 4.27 2.15 57.82 0.42 9.55
$ 75 & 625,000 4.46 2.29 60.79 0.45 10.08
$ 85 Indicated 570,000 4.64 2.43 63.97 0.47 10.63
$ 95 521,000 4.84 2.56 67.23 0.49 11.20
$ 105 477,000 5.02 2.69 70.30 0.52 11.72
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Conversion g to troy oz : 0.03215
Conversion t to lb : 2204
Relative density used : variable
Capping : none
Undiluted, in-situ
(i) Rounded to nearest 1K
Effective date November 8, 2012
CIM definitions for mineral resources were followed
SGS performed a thorough review of the drill hole data and assay data as part of their estimation of the Tortigny Resource. This included reviewing all Quality Assurance and Quality Control work performed both in the field and in the assay lab. During the course of their work it was noted that there was a slight bias in the assays of Copper and Silver as reported by Beaufield in the Press Release dated July 31, 2012. As a result of the review all assayed copper grades were reduced by 3% of their assayed value and silver assays were reduced by 3.5% of their assayed value.
The mineral resources were modeled and estimated using SGS proprietary SectCad software. The geological model was interpreted on 12.5m N-S vertical sections, then on 10m horizontal sections in order to generate a mineralized solid mesh. Assay intervals within the mineralized envelope were composited according to 1m intervals before they were used in the interpolation. There was no capping applied to the original sample assays. Spatial continuity of the grade of composites in the mineralized solid was assessed with a correlogram. Interpolation of the average grade of blocks within the mineralized solid from nearby mineralized composites was accomplished by ordinary kriging. All estimates are based on a parent cell dimension of 2.5 metres E, 2.5 metres N and 5 metres height with search ellipsoid and estimation parameters determined for the mineralized zone geometry.
The specific gravity data distribution showed clearly two populations distinguishing the massive sulfides from the disseminated and/or vein-like sulfides. Based on logs descriptions, each assayed sample was categorized as massive sulfides, semi-massive sulfides and others (including banded, disseminated, stringers, stockwerk and veins). Density measurements were available along with the assay information. Missing density data were assigned a value of 3.80 g/cm3 for the massive sulfides and 2.90 g/cm3 for the others as there were no differences between the other facies. Density was interpolated in the resource model by ordinary kriging using the same parameters as the ones used for the grade interpolation.
SGS estimated an in-pit resource within a Whittle-optimized pit shell using metal prices, mill recoveries and percentages paid used for resource estimates. The in-pit estimate is based on a processing cost of $US 25 /t, G&A cost of $US 5 /t, transport cost of $US 5 /t, mining recovery of 100% and a mining dilution of 10 %.
A cost of $US 42.25 /t for mining was added for U/G estimate.
Kevin Weston, President and CEO of Beaufield states "We are extremely pleased with the results of the SGS Resource estimate of the Tortigny Resource. The mineralisation is high value and proves that the drilling program was well executed and focused on expanding on our knowledge of the known resource. The area continues to have significant upside potential for increasing the tonnage given its geologic setting. Since all Resources were classified as either Measured or Indicated we are confident that the deposit could be a future producer. Beaufield is in an excellent position with its main properties all having great exploration potential and a solid balance sheet."
Cautionary Notes Concerning Estimates of Mineral Resources
1. The mineral resources in this press release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Standards
on Mineral Resources and Reserves, Definitions and Guidelines prepared
by the CIM Standing Committee on Reserve Definitions and adopted by CIM
Council including the changes required to maintain compatibility with
the new version of NI 43-101. December 13, 2005.
2. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues.
3. Non NI 43-101 resources and reserves estimates should not be relied upon
since a qualified person has not done sufficient work to classify the
historical estimate.
An updated NI 43-101 Technical Report on the Tortigny deposit outlining the procedures for estimation of the mineral resource estimates presented herein will be filed on SEDAR within 45 days of the date of this press release.
This news release has been prepared by David Rivard, P.Geo., Vice-President Exploration of Beaufield, Qualified Person under section 43-101, reviewed and approved by Francois Thibert M.Sc., P.Geo. and Yann Camus, Eng., both Qualified Persons at SGS Canada Inc.
About Beaufield:
Beaufield is a mineral exploration company with its exploration activity focused on Quebec. With approximately $8 million in working capital, including $2 million in flow-through financing to be dedicated for exploration by the end of 2013, Beaufield is well positioned to advance its excellent portfolio of properties and identify other potential opportunities in the mineral exploration or development stage that we can add value to on behalf of our shareholders.
The information set forth in this press release includes certain forward-looking statements. Such statements are based on assumptions exposed to major risks and uncertainties. Although Beaufield deems the expectations reflected in these forward-looking statements to be reasonable, the Company cannot provide any guarantee as to the materialization of the expectations reflected in these forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.
Contacts:
Kevin Weston
President
514.842.3443
514.842.3306 (FAX)
kevinw@beaufield.com
www.beaufield.com
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