Announcement • Jul 22
Talamore Mining Corporation Reports High Grade Assays From Supremo Extension Infill Drilling At Coffee Gold Project
Talamore Mining Corporation reported results from 55 holes of an ongoing 40,000-metre infill and exploration drilling program at its wholly-owned Coffee Gold project in Canada's Yukon Territory. Drilling is currently targeting the higher-grade Supremo Extension zone, which currently hosts an Indicated Resource of 2,437 kt at a grade of 1.18 grams per tonne (g/t) gold for a contained 92,000 ounces of gold, and an Inferred Resource of 6,059 kt at a grade of 1.72 g/t gold for a contained 335,000 ounces of gold. The Inferred grade at Supremo Extension is significantly higher than the 1.15 g/t Au grade of the overall Coffee Gold project resource estimate and thus provides a compelling target for converting high-grade ounces to the Indicated category for inclusion in the Feasibility Study currently underway. Assay results from 55 reverse circulation holes totalling 7,447 metres of a planned 25,000 metres of infill drilling at Supremo Extension were included. A total of 157 drill holes for approximately 22,348 metres have been completed through June of this year. Highlights of the holes reported from the Supremo Extension structural system include: 5.37 g/t Au over 8.4 m estimated true width (ETW) in hole 26-SPX-RC084, 6.60 g/t Au over 6.6 m (ETW) in hole 26-SPX-RC033, 5.77 g/t Au over 6.1 m ETW in hole 26-SPX-RC022, 4.14 g/t Au over 8.8 m ETW in hole 26-SPX-RC112, 1.50 g/t Au over 42.4 m ETW in hole 26-SPX-RC100, 2.29 g/t Au over 14.2 m ETW in hole 26-SPX-RC068. The Coffee Gold project consists of multiple mineralized structural zones forming the equivalent of a large vein swarm with individual structural zones from one to over thirty metres in width and extending up to four-kilometres in strike length. The Supremo Extension portion of the Coffee deposit is at the intersection of a steep dipping northeasterly trending high grade structure and a shallow dipping easterly trending structural zone. The shallow dipping structure is unique relative to the other structural zones in the Coffee deposit because of the much thicker mineralization, lower trace metals and increase in silver. The intersection of these two structural trends creates wide zones of much higher-than-average grade that become ideal for open pit mining. Holes 26-SPX-RC022 and 26-SPX-RC033 encountered better than expected grades near the bottom of the current resource pit. These new holes also added mineralization within the current resource pit, and outside it, with mineralization remaining open at depth. These holes are drilled on a cross section between existing completed cross sections. The mineralization cut in this cross section indicates the potential for expanding the pit especially the flat bottom area of the pit. These results will also increase the grade at depth and should lower the stripping ratio. Hole 26-SPX-RC068 extended good grade and width to within 25 metres of the surface, with grade increasing with depth. This drill hole adds confidence in good grade near the surface and continuity of similar or better grade at depth. This hole also adds mineralization within the current resource pit. The holes drilled on this cross section are between existing completed cross sections. Assays are pending on two drill holes in this cross section which would define whether the pit can be expanded at depth to include a historical high-grade intercept below the current pit. Hole 26-SPX-RC084 helps to confirm the current resource model interpretation and shows grade and width increasing with depth. This hole intercepted mineralization within the current resource pit and adds confidence to the continuity of good grade. The holes drilled on this cross section are between existing completed cross sections. Only one new hole was needed to complete this cross section. This hole will upgrade the blocks in the steeper structure which could provide the justification for expanding the pit at depth to include part of a wider good grade intercept extending below the current pit. Hole 26-SPX-RC100 helps to confirm the current resource model and shows increasing width and grade at depth. This hole also adds mineralization within the current resource pit and the zone remains open at depth. These holes are drilled on a cross section between existing completed cross sections. These drill results in the low angle structure are exceptionally wide and good grade which will increase the block grades and reduce the stripping ratio. The drilling also confirms high grade at the base of the pit which should upgrade the blocks in this area. There are pending assays on three other drill holes on this cross section. Hole 26-SPX-RC112 shows increased grade and confirms the model. These holes are drilled on a cross section between existing completed cross sections. This drilling upgrades blocks in the shallow dipping structure on this cross section and also adds continuity to the steeply dipping structure. One drill hole on this cross section has pending assays to give more support to the steeper dipping structure. These 55 drill holes continue the campaign to infill between existing completed cross sections on the Supremo Extension target, to increase drill density and upgrade resources from Inferred to Indicated for inclusion in the Feasibility Study currently underway. Infill and/or expansion drilling has also started on the Supremo and Latte zones. Once the infill drilling is completed the drills will move to several of the regional targets that will be tested this summer. The goal of targeting the higher-grade infill portion within the main Supremo Extension is to increase both the size and the grade of the resource for inclusion in the current Feasibility Study work. The current open-pit mineral resource estimate comprises: Measured 1,200 kt at 1.80 g/t for 69,000 ounces, Indicated 78,846 kt at 1.14 g/t for 2,888,000 ounces, Measured + Indicated 80,046 kt at 1.15 g/t for 2,957,000 ounces, Inferred 21,200 kt at 1.17 g/t for 800,000 ounces. Economic parameters used in the resource are a gold price of USD 2,500/oz; heap leach average recoveries for the individual metallurgical domains of 86.3% for Oxide, 76.0% for Upper Transition, 54.5% for Middle Transition and 31.4% for Lower Transition; a mining cost of CAD 3.27-CAD 3.50/t, processing costs of CAD 6.64/t, and general and administrative costs of CAD 6.0/t. A CAD:USD exchange rate of 1.35 was also assumed.
