CBR Gold Corp. Jul 27, 2009 09:00 ET CBR Gold Provides Update on Australian Assets Focus Minerals, Toro Drilling, and Jaurdi Hills
EDMONTON, ALBERTA--(Marketwire - July 27, 2009) - CBR Gold Corp. (TSX VENTURE:CBG) ("CBG" or the "Company"), is pleased to provide an update on its portfolio of Australian assets, which includes interests in Focus Minerals Ltd., Toro Drilling Services, and the Jaurdi Hills project.
Key Highlight Points:
- Shareholdings of gold producer Focus Minerals Ltd. (ASX:FML) currently valued at approximately CAD 3.0 million(2)
- Wholly owned Toro Drilling Services recommences drilling at Coolgardie
- Jaurdi Hills drilling will follow up intercept of 7.81g/t over 4 metres, including 13.2g/t over 2 metres
- East Perth Office is pursuing new opportunities in Australasia and Africa
Focus Minerals Ramps Up Gold Production at Coolgardie(1)
CBR Gold Corp. is the fourth largest shareholder of Focus Minerals Ltd. (ASX:FML), holding 140,000,000 shares currently valued at approximately CAD 3.1 million(2). These shares were received as partial consideration for CBG's 50% interest in the Coolgardie Project in Western Australia. FML has reached some major milestones in the past 12 months including:
- Raised approximately AUD 28 million in capital markets to re-furbish the Three Mill Hill Treatment Facility
- Mill refurbishments are on schedule and re-commissioning is expected by December 2009
- Total gold production for 2009 fiscal year was 41,401 ounces at an average direct cash cost of AUD 603 per ounce and an average price received of AUD 1,047 with 70,000 tonnes of ore currently stockpiled
- Toll treatment produced 19,226 oz. of gold during the latest milling campaign with recoveries exceeding 95%
- Only 9,378 ounces of gold remain to deliver into forward contracts at an average price of AUD 984 per ounce
- Next milling campaign is scheduled for September 2009, which is expected to close out their hedge book
- Gold production is targeted to exceed 80,000 oz. per annum by 2010 and 100,000 oz from 2011 onwards
- A Principal Mining Engineer and Mill Manager have been recruited to expand the exploration program and recommission the treatment facility.
- A 5,000 metre exploration drilling campaign has commenced to achieve production targets with the first phase at the Countess Deposit delivering excellent gold intersections including 7.26 metres @ 5.23g/t.
Focus Minerals expects to use approximately AUD 18 million for refurbishing their treatment facility and AUD 8.4 million for resource development, advanced exploration and definition work. The plant refurbishments are on schedule to take 8-10 months, resulting in a substantial increase to annual milling capacity to 1.68 million tonnes per annum with the expectation that milling costs will be reduced by AUD 10 to 15 per tonne.
As of April 30, 2009, CBG's holdings of FML shares have been released from voluntary escrow and can now be sold at management's discretion. FML has also confirmed that they will retire the remaining AUD 1.25 million note payable to CBG, as well as all senior bank debt and hedging, by December 2009.
(1) CBG has not independently verified any of the summary information on FML, all of which was obtained from FML's public announcements which are viewable on their website: www.focusminerals.com.au.
(2) Based on the July 24, 2009 closing share price for FML of AUD 0.024 and exchange rate of approximately 1 AUD equals 0.90 CAD.
Australian Drilling Company Generating Revenue
Toro Drilling Services Pty. Ltd. is a wholly owned subsidiary of CBG with operations based in Coolgardie, Western Australia. Toro has an exclusive contract to perform the exploration drilling for Focus Minerals Ltd. on the Coolgardie Gold Project, formerly the subject of CBG's Redemption Joint Venture. The estimated value of Toro's operating assets is approximately AUD 2 million, including surface, underground, and hand-held diamond drills, as well as a reverse circulation (RC) rig, support vehicles and related inventory.
Since the formation of Toro in February 2008, it has generated more than AUD 2 million in drilling revenue on approximately 25,000 meters of drilling. This is expected to improve with the resurgence of the mineral exploration sector in Australasia and the recovery of the global economy overall.
This month, Toro's underground diamond drill rig was mobilized to recommence exploration at Focus Minerals' Coolgardie Gold Project, initially targeting extension to the Perseverance, Countess, Empress and Tindals deposits that are currently in production. This 5,000 metre campaign is intended to deliver additional resources and reserves to underpin increased production capacity once Focus Minerals completes the refurbishment of their mill.
It is anticipated that the exclusive contract with Focus will fully engage Toro's fleet of drilling assets in due course. However, Toro continues to pursue other assets, contracts and business opportunities in Western Australia and other markets. In addition, Toro will conduct any drilling that is required by CBG's Australian projects, such as Jaurdi Hills.
CBG's Jaurdi Hills tenements cover approximately 81,000 hectares (200,155 acres) and are located 40 kilometres northwest of the town of Coolgardie, within the Kunanaling District of the Coolgardie Mineral Field, in close proximity to the Coolgardie Gold Project and toll treating facilities.
In late 2008, the Company initiated a 2,000 metre Reverse Circulation drill program, targeting three trend areas (See CBG press release dated September 10, 2008). Thus far, three holes have been completed on the Wealth of Nations historic underground gold mine target, which tested the southerly extension of old workings. Two holes intersected quartz lodes returning the following assay results; Hole 08WNP001 intersected 4 metres at 7.81g/t Au including 2 metres at 13.2g/t Au and hole 08WNP002 hit 5 metres at 1.91g/t Au. Hole 08WNP001 was drilled approximately 100 metres south of the Main Shaft and south of the historic workings, its results possibly indicate a southerly plunge to the main gold bearing quartz lode or the presence of a new zone.
CBG is encouraged by the results from these two holes and is planning to further drill these targets subject to the availability of CBG's wholly owned Toro Drilling Services. President and CEO, John Williamson commented, "Exploration to date on the Jaurdi Hills property indicates that there is potential for a high-grade, near-surface deposit. Given its proximity to toll treatment facilities and the established mining infrastructure of the Coolgardie region, we are excited about the economic potential for this project."
CBG's Perth Office Generating New Opportunities
Since November 2007, CBG has maintained offices in East Perth and Coolgardie to support its Australian interests and corporate development initiatives, including management of operations in Western Australia and seeking new ventures in Australasia and Africa. CBG's presence there has expanded networks and increased exposure to project opportunities, enabling CBG to build on its successful track record in Western Australia. The project evaluation and management team based in the East Perth office provides insight and leverage for foreign markets that CBG will capitalize upon to deliver shareholder value.
CBR Gold Corp. maintains an extensive quality control program in the preparation, shipping and checking of all samples from its projects. The program is supervised by Peter Kleespies, M.Sc., P.Geol. who is the Qualified Person as defined by NI 43-101. A detailed description of Committee Bay's QA/QC program is provided on the Company's website at www.cbrgoldcorp.com.
On behalf of the Board
CBR Gold Corp.
John Williamson, P.Geol., President, CEO & Director
CBR Gold Corp. is a member of the Discovery Group of companies. For more information on the group please visit www.discoveryexp.com.
"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."
FML Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
(20min delay)