(TheNewswire)
19 th August ,2021 – TheNewswire - Toronto, ON. – Otso Gold Corp. (“ Otso ” or the“ Company ”), (TSXV:OTSO) (OTC:FIEIF) is pleased to announce a National Instrument 43-101 (NI43-101) Mineral Resource Update for the Otso Gold Mine. The NI 43-101Technical Report prepared by John T Boyd Company (‘Boyd’) will befiled on SEDAR within 45 days of this release.
The updated technical report is the first deliverablefrom Boyd and will be followed by an NI 43-101 Feasibility Study, toinclude estimation of minable reserves.
Boyd is currently preparing mine designs and aproduction plan which will be used to begin initial mine preparation,waste removal and the restart of production in September 2021.Further, the mine designs and a production plan will form a part ofthe feasibility study.
The following table summarizes the findings to beincluded in the Mineral Resource Technical Report. The mineralresources are split between high grade and low grade to accommodateseparate processing of the high grade and low grade plant feed throughdifferent circuits.
Resource | High Grade (COG = 0.60 g/mt) | Low Grade (COG = 0.323 g/mt) | Total Mineral Resource | |||||||||
Category | Grade | Grade | Grade | |||||||||
Tonnes | (g/mt) | Tr Oz Au | Tonnes | (g/mt) | Tr Oz Au | Tonnes | (g/mt) | Tr Oz Au | ||||
Measured | 1,050,000 | 1.717 | 58,000 | 591,000 | 0.447 | 8,500 | 1,641,000 | 1.260 | 66,500 | |||
Indicated | 8,058,000 | 1.477 | 382,600 | 5,421,000 | 0.448 | 78,100 | 13,479,000 | 1.063 | 460,700 | |||
Total M& I | 9,108,000 | 1.505 | 440,600 | 6,012,000 | 0.448 | 86,600 | 15,120,000 | 1.084 | 527,200 | |||
Inferred | 4,666,000 | 1.583 | 237,500 | 2,667,000 | 0.449 | 38,500 | 7,333,000 | 1.171 | 276,000 |
* Based on parameters setforth below.
Otso Gold Mineral Resource EstimationParameters | ||||
Parameter | Units | Value | ||
Open Pit Waste Mining Cost | US$/Waste Tonne | $1.90 | ||
Open Pit Ore Mining Cost | US$/Ore Tonne | $2.73 | ||
Underground Mining Cost | US$/Ore Tonne | $75.00 | ||
Mill - High Grade Processing Cost | US$/Mill Ore Tonne | $11.78 | ||
Mill - Low Grade Processing Cost | US$/Mill Ore Tonne | $10.22 | ||
G&A Cost | US$/Feed Tonne | $2.20 | ||
Mill Gold Recovery (at cutoff) | % | 92.0% | ||
Mill - Low Grade Gold Recovery (at cutoff) | % | 80.0% | ||
Mill Annual Capacity (Both High & Low Grade) | Tonnes | 1,500,000 | ||
Gold Price | US$/Troy Ounce | $1,600.00 | ||
Selling Cost | US$/Troy Ounce | $2.55 | ||
Royalty | % | 0.15% |
Notes to the Mineral Resource Resource Estimate:
(1) The effective date forthis mineral resource estimate is August 5, 2021 and is reported on a100% ownership basis. This estimate is an update using additionalassays and exploration drilling as well as updated economics. |
(2) Mineral Resources are calculated at a gold priceof US$1,600 per troy ounce. |
(3) The mineral resourcespresented above are global and do not include a detailed pit, only aneconomic pit shell was used to determine the in-pit mineral resources. |
(4) Mineral resources whichare not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected byenvironmental, permitting, legal, title, socio-political, marketing,or other relevant issues. |
(5) The mineral resourcespresented here were estimated using a block model with a block size of9 m by 9 m by 9 m sub-blocked to a minimum block size of 3 m by 3 m by3 m using ID 3 methods for grade estimation. All mineral resources arereported using an open pit gold cut-off of 0.323 g/t Au. Open pitmineral resources above 0.600 g/t are considered high grade materialwhile material between 0.323 g/t and 0.600 g/t are considered lowgrade.. |
(6) The mineral resourcespresented here were estimated using the Canadian Institute of Mining,Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources andReserves, Definitions and Guidelines prepared by the CIM StandingCommittee on Reserve Definitions and adopted by CIM Council May 10,2014. |
(7) Figures are rounded and totals may not addcorrectly. |
Processing of high grade material will be processedthrough the existing plant with some flow sheet modifications intendedto improve overall recovery. High grade processing is expected tocommence in September 2021. Low grade material, which was previouslybelow cut-off grade and was therefore treated as waste, will betreated through a separate circult currently being developed.
The Company is working closely with Boyd to completemetallurgical testing which will inform the recommendations in thefeasibility in relation to the installation of a separate low gradecircuit, however initial tests are encouraging.
Brian Wesson stated: “Otso is pleased with theresults of this resource estimate and optimisation of wastemanagement. The Company looks forward to completion of the ResourceTechnical Report, as well as the Feasibility Study to follow. Theresults of this work represent the culmination of extensive geologicalwork and the infill drilling program the Company has been completingsince February, and represents the final milestone before the restartof production next month”.
Brian Wesson
President and CEO
Otso Gold Corp.
For furtherinformation, please contact:
Clyde Wesson
Vice President
Otso Gold Corp.
1 917 287-0716
info@otsogold.com
www.otsogold.com
The technical disclosure in this news release has beenreviewed and approved by Sam J. Shoemaker, SME Registered Member, aQualified Person as defined by National Instrument 43-101.
Caution
The Company cautions that it has notdefined or delineated any proven or probable reserves for the OtsoMine Project and mineralization estimates may therefore requireadjustment or downward revision based upon further exploration ordevelopment work or actual production experience. Mineral resourcesare not mineral reserves do not have demonstrated economicviability.
The Company also cautions that thedecision by the Company to proceed to develop the Osto Mine Projectand extract mineralization proceeded without the Company firstestablishing reserves supported by a technical report and completing apre-feasibility or feasibility study. Accordingly, there is a higherrisk of technical and economic failure at Osto because developmentproceeded without first establishing reserves supported by a technicalreport and completing a feasibility study. This is particularlyrelevant as the Company has proceeded with development at Osto onindicated and inferred resources without first completing apreliminary economic report.
About the Company
Otso Gold Corp. wholly owns the Otso Gold Mine near thetown of Raahe in Finland. The
Otso Gold Mine is fully built, fully permitted, has allinfrastructure in place, two open pits
and is progressing towards a restart at 2 milliontonnes per annum throughput.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
Copyright (c) 2021 TheNewswire - All rights reserved.