The Goldenville Gold District in Nova Scotia is considered one of the most prolific gold mining districts in eastern Canada. Over 200,000 ounces of gold averaging nearly 12 g/t Au were produced between 1862 and 1942*. Typical deposits in this district have stratabound quartz veins hosting gold mineralization within folded Ordivician age metasediments.
- Inferred Resource Estimate of 2,800,000 tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped)
- Largest historic gold producer in Nova Scotia with 212,300 ounces of gold production prior to 1942
- 135 km northeast of Halifax, easily accessible by road
- Opportunity to expand resource by lowering cutoff grade; structure also remains open along strike and at depth
- Under-explored target areas permissive for expansion drilling
Link to March 16, 2017 News Release titled: “Osprey Announces Resource Estimate Update and Reports 60% Increase in Inferred Resources at Goldenville Project, Nova Scotia”
- Drilling anticipated to commence in Q3 2017 aimed at growing the current gold resource
- Potential to log and sample previously drilled holes
* Bottrill, T. J., 1987, Report on the 1987 Winter Exploration Program - Assessment Report ME 1989-154
**2017 inferred resource includes a near surface and an underground resource with a cut-off of 0.75 g/t and 2.0 g/t respectively.
Inferred Resource (NI 43-101)
Table 1 - Goldenville Inferred Mineral Resource Estimate, David Thomas, P. Geo. (Effective Date: March 15, 2017)
|Resource Type||Tonnage (t)||Au (g/t)||Au (Oz)|
|Near Surface (0.75 g/t Cut-Off)||1,240,000||3.02||120,000|
|Underground (2.00 g/t Cut-Off)||1,560,000||3.35||168,000|
Table 2 - Goldenville Mineral Resource and Sensitivities, Near Surface
|Cut-Off||Tonnes||Capped Au (g/t)||Capped Au (Oz)||Uncapped Au (g/t)||Uncapped Au (Oz)|
Table 3 - Goldenville Mineral Resource and Sensitivities, Underground
|Cut-Off||Tonnes||Capped Au (g/t)||Capped Au (Oz)||Uncapped Au (g/t)||Uncapped Au (Oz)|
A technical report, which will include this resource estimate, will be posted on the website and filed on www.sedar.com within 45 days from March 15, 2017. Dave Thomas, M.Sc., P.Geo. and Neil Pettigrew, M.Sc. P.Geo, are both a ‘Qualified Person’ for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian securities administrators (“NI 43-101”). They have both approved the disclosure of, and are the ‘Qualified Persons’ responsible for the scientific and technical information in this news release, inclusive of the resource estimate information. They have verified the data disclosed.
The current mineral resource estimate, effective date March 15, 2017, was prepared by David G. Thomas M.Sc., P. Geo. and Neil Pettigrew M.Sc., P. Geo. using Minesight 3D commercial mining software. Resources were estimated from 150 surface core drillholes and 67 underground channel samples in 4 x 2 x 2 meter blocks by ordinary kriging coded by indicator domain. Fladgate created probabilistic indicator models to progressively constrain the mineralization into domains. Indicator models were estimated using inverse-distance weighting to the power of three (IDW3). Grade estimates were based on capped 2.0 meter composited assay data with a top cut of 70 g/t.
Differences with the previous mineral resource estimate primarily result from changes to the method of mineral resource estimation and from a change in the mineral resource classification. Fladgate has applied differing criteria to meet the criteria of reasonable prospects of economic extraction as specified in the CIM Mineral Resource Definition Standards. Fladgate has constrained near surface mineral resources to an L-G optimized pit shell and has constrained underground mineral resources to a grade shell above a grade cut-off incorporating an underground mining cost of $50/t.
Footnotes to mineral resource statement:
- Mineral resources are not mineral reserves and do not have demonstrated economic viability. No mineral reserves have as yet been defined.Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that the inferred mineral resources will be realized.
- Fladgate undertook data verification, and reviewed historical quality assurance and quality control programs on the mineral resources data. Fladgate concluded that the collar, survey, assay, and lithology data were adequate to support mineral resources estimation.
- A dry bulk density value of 2.67 g/cm3 for all material was assigned from similar Meguma-type gold mineralization with similar rock types in Nova Scotia.
- Fladgate assumed a metallurgical recovery of 90% based on a qualitative assessment of the gold mineralogy and grain size.
- Near surface mineral resources are constrained within an open pit shell optimized with an L-G algorithm. A process and G&A cost of $25 and a mining cost of $3.00/tonne have been used.
- Underground resources have been constrained within a grade shell using a 2.0 g/t threshold, assuming a mining cost of $50/tonne in addition to the operating costs. Isolated blocks were removed from the grade shell. The mineral resources have been depleted using solids representing underground development and areas of stoping for post 1920’s historical mining for which technical drawings are available, however no records are available for the abundant, pre 1920’s mining development, which is known to have occurred throughout the property.
- Blocks were classified as inferred in accordance with CIM Definition Standards.
- The contained metal figures shown are in situ. The resource estimation methodology incorporates a significant amount of external and internal dilution due to the use of 2 meter composites, probabilistic domaining and the grade smoothing introduced by ordinary kriging with a variogram which has a short range of influence.
- No assurance can be given that the estimated quantities will be produced. All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements. Summations within the tables may not agree due to rounding.
The Goldenville Property is located in St. Mary’s District, Guysborough County, approximately 135 km northeast of Halifax and 60 km south of Antigonish. Provincial Highway 7 runs through the eastern part of the Goldenville property and the closest town is the village of Sherbrooke, located 3 km to the north.
The project is easily accessible via highway and gravel road. Sherbrooke is a five-minute drive from the project with basic services such as gas / service stations, a grocery store, restaurants, accommodation and a hospital. Power, telephone, and high speed Internet service are available at the project site as well. The Halifax Stanfield International Airport is 185km from Goldenville.
The Property consists of 3 mineral titles totaling approximately 970 ha in northeastern peninsular Nova Scotia. The Property is under option and through the company’s subsidiary Crosby Gold, Crosby has the right to earn a 100% interest in the claims, subject to certain royalties.
Geology & Mineralization
- Structurally controlled slate belt hosted gold
- Vein hosted mineralization controlled by bedding, anticline plunge, and cross cutting structures
- Anticline trends roughly east-west, dips gently west
- Up to 46 sequenced vein packages identified on both limbs of the anticline
- Disseminated mineralization within slates/argillite
- Classic Meguma terrain-style deposit, similar to the Bendigo camp in Australia
- Potential for veining to continue at depth, similar to Australian deposits
Gold is predominantly found in the quartz veins on the property, measuring up to 40cm in thickness. Gold is also found within slate belts associated with the veining. Gold concentrations of interest appear to be controlled by the regional plunge of the Goldenville anticline and the influence of northwest trending structural waves across the anticline.
The Goldenville Gold District has the highest reported gold production of any district in the province. Total reported gold production for the district is as follows:
The Goldenville Property is comparable to other Meguma Group gold deposits. Osprey Gold is focused on the potential for extending mineralized structures laterally and at depth, while also pursuing new discoveries of gold-bearing quartz veins along the length of the Goldenville anticline.
A technical report, which will include this resource estimate, will be posted on the Company’s website at www.ospreygold.com and filed on SEDAR at www.sedar.com within 45 days. Dave Thomas, M.Sc., P.Geo. and Neil Pettigrew, M.Sc. P.Geo, are both a ‘Qualified Person’ for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian securities administrators (“NI 43-101”). They have both approved the disclosure of, and are the ‘Qualified Person’ responsible for the scientific and technical information in the resource estia