VANCOUVER, Aug. 24 /PRNewswire-FirstCall/ - Opawica
Explorations Inc. (TSX.V: OPW / OTC: OPWEF / Frankfurt: OE5A)
("Opawica" / the "Company") announces that it has completed and
filed on SEDAR a Preliminary Scoping Study (the "Study") regarding
the Company's Atikwa Lake gold and copper project located near
Kenora, Ontario.
The Study has been limited to a model of 1000 tpd projected to
be mined from a 2,974,200 tonne surface and higher grade portion of
the current NI 43-101 compliant 7,366,000 tonne Indicated resource
of the Maybrun open pit Main Zone of 0.64 g/t Au and 0.41% Cu. The
head grade for the above 2,974,200 tonnes of open pit material is
0.911 g/t Au and 0.574% Cu for a gold equivalent of 1.896 g/t Au.
An open pit stripping ratio of 1.5 to 1 has been used to a depth of
40m that would commence from an existing open pit bench cut of the
Maybrun Main Zone.
The preliminary economic analysis from the Study indicates
positive preliminary economic considerations for an initial 1000
tpd operation consisting of Capital Costs of $9,850,000, sustaining capital of $6,000,000, overall pre-tax cash flow of
$26,592,000, all over a minimum of an
eight year period. A preliminary Internal Rate of Return (IRR) of
30% is evident over the initial eight year period put forth in the
Study.
The Study has utilized a contract mining scenario that would
include using existing tailings ponds, new surface infrastructure
and some refurbished mill components used in past production (1973)
on site. A flow sheet consistent with past milling consisting of
two ball mills, floatation circuit and concentrator has been
proposed. Overall recoveries of 92.6% has been used for gold and an
85% recovery in concentrate has been used for copper.
The Preliminary Scoping Study and economic analysis has been
purposefully limited to 1000 tpd. The objective is to determine if
the past footprint and related infrastructure of the former
producing Maybrun Mine can be used, at least in part, to re-instate
production on the property on a shorter timeline and at
significantly lower capital costs than may be otherwise possible
under a larger scale mining operation that would include all
resources presently outlined on the property. If positive cash flow
can be attained from the initially proposed 1000 tpd operation, it
may be possible to expend some cash flow on the entire Atikwa Lake
property for further exploration and development.
The resources at the Atikwa Lake property as outlined in the
August 31, 2009 NI 43-101 report,
filed on SEDAR, are as follows:
August, 2009 Mineral Resource Estimate (NI 43-101 Compliant) Atikwa Lake
Property
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Classifi- Cut-off
cation Grade
Au Eq Mineral Au Cu Au Eq Au Cu
(g/t) Zone Tonnes (g/t) (%) (g/t) (oz) (lb)
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Indicated 0.40 Maybrun 7,366,000 0.64 0.41 1.34 151,000 66,466,000
Main
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0.40 Maybrun 1,738,000 1.15 0.30 1.66 64,000 11,622,000
Main
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Inferred 0.40 Maybrun 5,400,000 0.94 0.18 1.25 163,000 21,696,000
Footwall
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0.40 Maybrun 3,454,000 0.67 0.25 1.10 74,000 18,921,000
North
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AuEq (Au Equivalent) calculated using US $800 per oz for Au and $2.00 per
lb for Cu.
The above resources, as to tonnes, pounds and ounces are rounded
to the nearest 1,000. The AuEq calculations in this release
represent head grades and does not include metallurgical recoveries
or net smelter returns for gold and copper. Mineral resources that
are not mineral reserves do not have demonstrated economic
viability.
Based on the results of the Preliminary Scoping Study a
Feasibility Study and further drilling has been recommended on the
Atikwa Lake property.
Current drilling on the Atikwa Lake property is ongoing. A deep
hole (AT-10-05) of about 650m has been completed into the Footwall
Zone with assays pending. One further deep hole of 650m, on Section
844N, will be drilled into the Footwall Zone approximately 300m
below the above open pit resources detailed in the August 31, 2009 NI 43-101 report and about 200m
down dip from hole AT-10-01 which returned the following assay
results announced on April 23,
2010:
From To Width Au AuEQ
Hole # Section Zone (m) (m) (m) g/t Cu % g/t
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AT-10-01 844 N May-
brun
Main 74.80 125.00 50.20 0.30 0.300 0.81
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Including 77.00 92.00 15.00 0.64 0.421 1.36
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Including 77.00 78.00 1.00 3.07 0.308 3.60
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And 84.00 92.00 8.00 0.78 0.644 1.88
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May-
brun
FW 158.00 172.00 14.00 0.07 0.057 0.17
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185.60 214.60 29.00 0.20 0.157 0.47
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Including 207.00 214.60 7.60 0.41 0.251 0.84
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235.00 271.00 36.00 0.74 0.113 0.93
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Including 256.00 271.00 15.00 1.41 0.165 1.69
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Including 268.00 271.00 3.00 3.04 0.246 3.46
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Also 256.00 260.00 4.00 2.60 0.236 3.00
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Including 256.00 258.00 2.00 3.79 0.096 3.95
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339.00 341.00 2.00 5.21 0.162 5.49
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Including 339.00 340.00 1.00 8.94 0.212 9.30
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Note: Intervals are approximate true widths.
In addition, 6 shallow infill drill holes of up to 90m each have
been drilled within the open pit Maybrun Main Zone. Assay results
are pending. A further 6 shallow holes of up to 90m each are
scheduled to be drilled in the open pit Maybrun Main Zone under the
current drill program.
The Preliminary Scoping Study was completed by Independent
Qualified Persons, Robert Laakso,
P.Eng. and Michael O'Flaherty,
P.Eng. and they have reviewed the contents of this release.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. The forgoing information may contain
forward-looking statements relating to the future performance of
the Company. Forward looking statements, specifically those
concerning future performance, are subject to certain risks and
uncertainties, and actual results may differ materially. These
risks and uncertainties are detailed from time to time in the
Company's filings with the appropriate regulatory authorities. We
seek safe harbour.
SOURCE Opawica Explorations Inc.
Copyright . 24 PR Newswire