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Ketza River Manto Zone

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Introduction

Gold mineralization at Ketza River occurs in manto replacement deposits along permissive horizons within Lower Cambrian limestone in the Cache Creek valley. Auriferous massive sulphide deposits of pyrrhotite, pyrite and arsenopyrite have been oxidized and the gold values enriched within structural zones or panels where normal faulting cross cuts the stratigraphy. In general, the mantos have tube - like geometry and consequently close - spaced drilling is required to establish reserves. The important manto deposits occur on the southern flank of the Ketza Uplift (Figure 3).

VG focused on manto exploration during 1994 - 96. Drilling on manto targets has totalled 7,477 metres in 86 holes. This drilling has resulted in the discovery of additional oxide mineralization and also in the reinterpretation of geological controls on the gold mineralization. In addition, the majority of the 476 holes drilled by Canamax between 1984 and 1990, have been relogged as a result of the new geological interpretation. This activity has contributed to a better understanding of the property geology and helped define diamond drill targets. Three limestone beds are now recognized to preferentially host auriferous mantos within the massive Lower Cambrian limestone Unit 1d. Structural deformation has produced repetition of the favourable stratigraphic beds and thickening along fold axes.

The Fork, McGiver, Hinge, Chimney, Hoodoo, and Tarn zones were drill tested with positive results in the 1994 to 1996 programs. Extensions of the Break and Nuzones were also tested and can be correlated with the Fork, McGiver and B-Mag zones. The zones occur as discontinuous bodies within a broad mineralized horizon that hosts the major manto deposits on the property.

Oxide mineralization at the Fork zone has been intersected in 32 drill holes. Oxides are present across widths of 10 to 30 metres and along 170 metres on a northeast - southwest strike trend.

The Chimney zone, discovered in 1994, is a narrow oxide seam containing high grade gold values near surface (2.0 metres grading 36.44 g/t in ddh # 486) which decrease rapidly at depth (2.9 metres grading 7.39 g/t at a depth of 15 metres in ddh #521). The Chimney zone contains a small high grade source of oxide ore which could be partially mined from a surface cut. Other significant oxide intersections in 1995 - 96 include: 7.1 metres grading 15.42 g/t gold (ddh #549) at the McGiver zone; 2.35 metres grading 15.78 g/t (ddh #547) at the B-Mag zone; and 5.3 metres grading 8.43 g/t (ddh #567) at the Hoodoo zone.

An unmined oxide resource block was defined at the Nuzone (Hodgson 1991). This estimate has not been verified.

Sulphide manto deposits occur in a massive discontinuous blanket west of the Peel/Ridge oxide deposits. The sulphide mineralization occurs throughout an area of 400 metres by 400 metres with thicknesses of 10 ­ 25 metres. A 1996 test hole (#561) confirmed the ore grades within the Peel West zone (15.8 g/t over 4.5 metres and 9.3 g/t over 4.75 metres). Drill hole #559 intersected 15.0 metres of massive sulphides grading 7.93 g/t (including 9.0 metres grading 11.3 g/t) in a new zone 200 metres north of the Peel West zone within the same stratigraphic horizon.

Ketza River Diamond Drill Assay Results

2009 and 2010 Ketza River Project Drilling Results - Updated

2010 Ketza River Diamond Drill Assay Data for Bluff Zone

Ketza River Diamond Drill Assay Data for 2008

Ketza River Diamond Drill Hole Assay Data for Assays received before June 30th, 2008.

Ketza Manto Property

Resources Summary

Table 1. KETZA RIVER MEASURED & INDICATED RESOURCES January 25, 2010 (June 28, 2011 NI 43-101 Report)
Area Measured Indicated Measured and Indicated
K tonnes g/t Au K oz K tonnes g/t/Au K oz K tonnes g/t Au K oz
Open Pit Resources (oxide ore cutoff grade is 0.78 g/t, and sulfide ore cutoff is 1.00 g/t)
Peel 85.2 5.76 15.8 1,053.4 6.22 210.6 1,138.6 6.19 226.4
Penguin 14.0 1.88 0.8 233.6 2.89 21.7 247.6 2.84 22.6
Lab-Hoodoo 9.4 6.92 2.1 243.2 5.20 40.6 252.6 5.26 42.7
Tarn 11.4 4.73 1.7 79.3 3.88 9.9 90.7 3.99 11.6
Gully 7.0 5.60 1.3 45.1 3.57 5.2 52.1 3.85 6.4
QB 23.4 4.55 3.4 298.0 3.21 30.8 321.4 3.31 34.2
Knoll 11.1 6.66 2.4 2.9 4.54 0.4 14.0 6.22 2.8
Subtotal 161.5 5.30 27.5 1,955.4 5.08 319.3 2,116.9 5.09 346.8
 
Underground Resources (oxide ore cutoff grade is 3.44 g/t; sulfide ore cutoff is 4.43 g/t)
Peel 3.7 8.41 1.0 204.6 8.83 58.1 208.3 8.82 59.1
Penguin 0.0 0.00 0.0 0.0 0.00 0.00 0.0 0.00 0.0
Lab-Hoodoo 0.0 0.00 0.0 22.1 6.90 4.9 22.1 6.90 4.9
Tarn 0.0 0.00 0.0 0.0 0.00 0.0 0.0 0.00 0.0
Gully 2.1 7.41 0.5 14.7 8.04 3.8 16.9 7.91 4.3
QB 0.4 3.81 0.0 15.5 5.22 2.6 15.9 5.09 2.6
Knoll 0.0 0.00 0.0 0.0 0.00 0.0 0.0 0.00 0.0
Subtotal 6.3 7.39 1.5 256.9 8.40 69.4 263.2 8.38 70.9
 
Combined Open pit and Underground (Variable cutoff grades)
Peel 88.9 5.87 16.8 1,258.0 6.64 268.7 1,346.9 6.59 285.5
Penguin 14.0 1.88 0.8 233.6 2.89 21.7 247.6 2.84 22.6
Lab-Hoodoo 9.4 6.92 2.1 265.3 5.34 45.5 274.7 5.39 47.6
Tarn 11.4 4.73 1.7 79.3 3.88 9.9 90.7 3.99 11.6
Gully 9.1 6.01 1.8 59.8 4.67 9.0 69.0 4.84 10.7
QB 23.8 4.47 3.4 313.5 3.31 33.4 337.3 3.39 36.8
Knoll 11.1 6.66 2.4 2.9 4.54 0.4 14.0 6.22 2.8
Total All
Sources
167.8 5.38 29.0 2,212.3 5.46 388.7 2,380.1 5.46 417.7
Notes:
  1. The measured and indicated resources include all REDOX types including oxide, sulfide, and mixed oxide+sulfide; separate resource tables that list only the oxide resource is included in the June 28, 2011 Technical Report;
  2. The cutoff grade for oxide and sulfide ore material inside the optimized open pit is 0.78 g/t and 1.00 g/t, respectively; and for material that is potentially mineable by underground methods outside of the optimized open pits are 3.44 g/t and 4.43 g/t, respectively.
  3. Au price used for this resource is US$1,150/troy oz; Assumed 1,500 ore tonnes ore/day mill feed;
  4. A Lerchs-Grossman pit optimization has been used to differentiate potential open pit resources from potential underground resources using mining costs, Au cutoff grades, and other parameters listed below;
  5. Mining cost/tonne = $3.00 open pit and $80.00 underground; processing cost/tonne ore = $26.00; specific gravity is variable as modeled per block; 18.4:1 (waste:ore) average strip ratio for all resources;
  6. All areas have been updated using new models; and
  7. Resources calculated using: additional drill holes completed in 2008, and historic mining depletions (underground as builts from Canamax mining data).
Table 2. KETZA RIVER INFERRED RESOURCES January 25, 2010 (June 28, 2011 NI 43-101 Report)
Area Inferred
K tonnes g/t Au K oz
       
Open Pit Resources
Peel 195.2 5.30 33.2
Penguin 44.0 2.49 3.5
Lab-Hoodoo 37.5 4.38 5.3
Tarn 3.2 3.50 0.4
Gully 15.9 3.46 1.8
QB 113.5 3.80 13.9
Knoll 0.0 0.00 0.0
Subtotal 409.4 4.41 58.0
 
Underground Resources
Peel 24.2 6.55 5.1
Penguin 0.0 0.00 0.0
Lab-Hoodoo 10.1 5.54 1.8
Tarn 0.0 0.00 0.0
Gully 5.6 8.89 1.6
QB 4.4 5.66 0.8
Knoll 0.0 0.00 0.0
Subtotal 44.3 6.56 9.3
 
Combined Open Pit and Underground Resources
Peel 219.4 5.43 38.3
Penguin 44.0 2.49 3.5
Lab-Hoodoo 47.6 4.62 7.1
Tarn 3.2 3.50 0.4
Gully 21.5 4.87 3.4
QB 117.9 3.87 14.7
Knoll 0.0 0.00 0.0
Total All
Sources
453.7 4.62 67.3
Notes:
  1. All notes included in Table 1, including the same cutoff gold grades for oxide and sulfide ores, are also applicable to Table 2; and
  2. The inferred resources shown above include oxide, sulfide, and "mixed" oxide+sulfide ores.
The map showing the resource locations can be accessed on the Company's web site here:
www.yukon-nevadagold.com/i/pdf/KetzaResourceMap2011.pdf

The January 25, 2010 Ketza River resources were calculated by Mark Odell, a consulting Professional Engineer (P.E.), and Karl Swanson (MAusIMM, SME), Mining Engineer Consultant, under the supervision of Todd Johnson (P.E.), Vice President of Exploration for YNG. These individuals are qualified persons as defined by National Instrument (NI) 43-101.

The mineral resources have been estimated in accordance with the standards adopted by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Council in August 2000, as amended, and prescribed by the Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects. The resources were classified according to: geological confidence, number of drill holes, number of drill hole samples and a specific search distance.

Yukon-Nevada Gold Corp. has filed on www.sedar.com a National Instrument 43-101, a compliant technical report entitled "Ketza River Project, Yukon-Nevada Gold Corp., NI 43-101 Technical Report, Yukon Territory, Canada," dated June 28, 2011, encompassing the mineral resource discussed herein. That report can be found here:
Ketza River Project, Yukon-Nevada Gold Corp., NI 43-101 Technical Report, Yukon Territory, Canada

Exploration drill hole samples collected from the Ketza River property are delivered to and analyzed by ALS Laboratory Group in North Vancouver, BC using standard fire assay techniques. The Company's 2010 Sampling Methods, and Sample Preparation and Analyses, and Quality Assurance and Quality Control protocols are described in Sections 10 and 11 of the June 28, 2011 Ketza River Project NI 43-101 Technical Report.

Mr. Todd Johnson, P.E., is YNG's Qualified Person as defined in National Instrument 43-101 for the Ketza River January 25, 2010 resources. He and has the ability and authority to verify the authenticity of, and validity of, these data.

Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources

This document uses the terms "measured and indicated resources". The Company advises U.S. investors that while these terms are recognized and required by Canadian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves.

This document also uses the term "inferred resources". The Company advises U.S. investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility or other economic study. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

Mineral Reserve Terminology: Canadian and U.S. Differences

The Company is organized under the laws of British Columbia, Canada. The mineral reserves and resources described here are estimates and have been prepared in compliance with National Instrument 43-101 of the Canadian Securities Administrators. The definitions of proven and probable reserves used in National Instrument 43-101 differ from the definitions in the United States Securities and Exchange Commission ("SEC") Industry Guide 7.

 
Veris Gold Corp.
900-688 West Hastings Street
Vancouver BC V6B 1P1
Canada

Tel: 1 (604) 688-9427
NA Toll Free: 1 (855) 688-9427
Fax: 1 (604) 688-9426
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