TriStar Gold Presents Exploration Target Range at Castelo de Sonhos
January 28, 2016
TriStar Gold Inc. (the Company or TriStar) is pleased to present the results of its quantitative risk assessment of the Exploration Target at its Castelo de Sonhos Gold Project in Pará State, Brazil ranging from 2.1 million ounces (Moz) of gold, contained in 50 million tonnes (Mt) at 1.3 g/t, to 4.3 Moz of gold, contained in 84 Mt at 1.6 g/t.
The exploration target presented in this press release is conceptual in nature since the CDS project requires further drilling and surface sampling. There is no certainty that future resource estimates for the project will achieve the exploration target reported in Table 1.
The assessment of the exploration target for Castelo de Sonhos (CDS) uses a quantitative approach that integrates the available drill hole and geological information to produce a family of equally likely scenarios that establish distributions for tonnage, grade and metal content. Following the conventional use of such distributions, the 10th percentile (P10) defines a pessimistic case and the 90th percentile (P90) defines an optimistic case.
The P10-P90 range for the exploration target at Castelo de Sonhos, rounded to reflect the inherent uncertainties, is:
Table 1. Exploration target range at Castelo de Sonhos.
|Gold Grade:||1.3||–||1.6 g/t|
|Metal Content:||2.1||–||4.3 Moz|
These ranges are conceptual in nature since the CDS project requires further drilling and surface sampling to validate the geological and statistical assumptions used. Although all of the technical assumptions are supported by the spatially limited current drilling and available geological data, further drilling may challenge these assumptions. There is therefore no certainty that future resource estimates for the project will achieve the exploration target reported in Table 1.
TriStar management believes that, subject to the availability of funds, the Exploration Target is sufficient to warrant undertaking additional exploration activities in order to confirm the assumptions used in the Exploration Target and advance CDS towards a preliminary economic assessment, which would be based on the then available mineral resources using CIM definitions (not on the exploration target range).
The gold mineralization at CDS lies in a bed of conglomerates that has 16 km of continuous outcrop. The current drilling, and the current resource estimate (See press release dated August 18, 2014), is limited to approximately 3.5 km of the outcrop and is constrained by an ultimate pit shell with a depth of only 70m.
The quantitative risk assessment of the Exploration Target assumes that gold mineralization can occur throughout the conglomerate band. This assumption is supported by a continuous gold anomaly in soil samples that coincides with the entire 16 km of outcrop, by several kilometers of continuous workings from small pits and trenches where informal mining took place in the 1990s and 2000s, and by the geology of similar paleo-placer deposits. In the down-dip direction, the quantitative risk assessment makes the pessimistic assumption that the mineralized intervals in the conglomerate break up down-dip (to the southwest), becoming thinner and lower in grade at depth.
Quantitative risk assessment methodology
The assessment of the exploration target uses conditional simulation to create a family of equally likely models. Each of these honors all drill hole data, but differs from the other models in the family in the details of the grade predictions between and beyond drill holes. The trend models and variograms that guide interpolation and extrapolation of grades are based on the available drill hole data and on the geological understanding of how gold grains are transported in river and delta systems, and how they are eventually trapped in bottom sediments.
Surface mapping was used along with drill hole data to unfault and unfold the deposit to its original depositional configuration. Conditional simulation was carried out using these “paleo-coordinates” which are better suited than current UTM coordinates for analyzing and interpreting the directions of continuity and the spatial trends. Models of the principal sedimentary lithologes of the conglomerate band were created since the current interpretation supports the view that gold grade depends on the geology, sorting, packing and pebble size of the conglomerates.
100 conditional simulations of gold grade were created in the paleo-coordinate system, then folded and faulted to restore them to their modern-day configuration on the plateau at Castelo de Sonhos. For each of the 100 simulations, an ultimate pit shell was developed; the 100 tonnages, grades and metal contents were then sorted from smallest to largest so that percentiles could be calculated. The results presented in Table 1 are from the P10 and P90 scenarios, rounded to two significant figures.
A new NI 43-101 Technical Report with all of the supporting technical information for this quantitative risk assessment of the Exploration Target will be filed on SEDAR by mid- March.
R. Mohan Srivastava (P.Geo.), Vice President of TriStar, has prepared, supervised the preparation or approved the scientific and technical disclosure in the news release, and is the Qualified Person for this disclosure.
Issues Shares for Advisory Services
The Company is also pleased to announce that further to its press release of January 19, the provision of advisory services in the amount of Cad$30,975 for consulting services provided in 2015. The securities issued are subject to a four-month hold period expiring on May 28, 2016.
TriStar Gold is an exploration and development company focused on previous metals properties in the Americas that have potential to become significant producing mines. The Company’s current flagship property is Castelo de Sonhos in Pará State, Brazil. The Company’s shares are listed on the TSX Venture Exchange under the symbol TSG-V. Further information is available at www.tristargold.com.
For further information, please contact:
TriStar Gold Inc.
President and CEO
Neither the 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects” or “it is expected”, or variations of such words and phrases or statements that certain actions, events or results “will” occur. Such forward-looking statements are based upon the Company's reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include changes in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments in Brazil; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of the Company’s projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward- looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company 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 securities laws.