Exploration & Development
Dufferin Gold Mine, Nova Scotia - Near Production
Message: Ressources Appalaches Completes the Purchase of the Dufferin Mine
| April 15, 2009 |
| Ressources Appalaches Completes the Purchase of the Dufferin Mine |
| RIMOUSKI, QUEBEC--(Marketwire - April 15, 2009) - With the acquisition of 100% of Dufferin Resources Inc., Ressources Appalaches (TSX VENTURE:APP) has become, as of April 9th, 2009, the sole owner of the Dufferin Mine, located in Nova Scotia. The transaction comprised the acquisition of the ramp-access Dufferin Mine, along with its processing plant (mill), mining lease, environmental permits and all infrastructure required for production. Ressources Appalaches proceeded with the verification of: the gold-bearing structure extensions, the state of the mill and the rate of gold recovery in addition to the usual corporate searches. The Company completed the purchase and will reactivate the equipment and resume of production. Verification of the gold-bearing structure extensions The drilling campaign performed in 2008 confirmed the extent, the continuity and the grade of the deposit's gold-bearing structures. Among the best drilling results, sampling of a quartz vein and its wall rocks in drill hole F08-07 gave 31.64 g/t Au over 4 meters including 125.5 g/t Au over one meter. The sampling of several quartz veins of drill hole F08-11 yielded a grade of 8.34 g/t Au over a length of 9 meters (press release dated 5/02/09). The drilling campaign confirmed the extent of the gold-bearing quartz veins towards the east and at depth, as well as their regular arrangement, as predicted by the "Saddle Reef Vein" model. Presently, 15 Saddle-type veins have been identified on the deposit. The mineralized zone extends over a length of 900 meters and to a depth of nearly 400 meters including previous work. State of the Processing Plant Laboratoire LTM in Val D'Or confirms that the equipment in the ore-processing plant at the Dufferin Mine is in excellent condition and recommends doubling the mill's throughput from 300 to 600 tonnes a day (press release dated 25/03/09). Recovery Rate A first metallurgical test using cyanidation showed high gold recovery rates. Assays performed on a composite sample give gold values of 5.6 to 18.74 g/t with an average of 10.14 g/t corresponding to recoveries of 98.6 to 99.6% (press release dated 8/04/09). Details of the Agreement The cost of the transaction established at $4,000,000 is payable in four installments spread over three years. The first installment of $500,000 was made on April 9th, 2009; the second installment of $500,000 will take place 6 months following this first payment; the third installment of $1,500,000 will take place 12 months following the second payment and the final installment of $1,500,000 will take place 12 months thereafter. Once the final payment has been made, the acquisition will be free of all royalties. In the meantime, Appalaches must pay a royalty of 2% to Jemma Resources. Pictures of the Dufferin Mine and its mining facilities are available on the Company's website at www.ressourcesappalaches.com. |
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