Gold & Copper
British Columbia, Yukon Territory, Australia, Nevada & Alaska
Message: NR resource update
Jan 12, 2011
Vancouver, BC - January 12, 2011: Kiska Metals Corporation ("Kiska" or the "Company") reports the results of a revised NI43-101 compliant mineral resource estimate for the Whistler Deposit, It also provides further details on the 2011 drilling plans to follow up on the four other significant porphyry gold-copper discoveries at the Whistler Project, Alaska. This estimate replaces the previous NI43-101 compliant estimate for the Whistler Deposit completed on behalf of Geoinformatics Exploration Inc. in January of 2008. This estimate incorporates the results of 10 previously reported drillholes not included in the 2008 estimate, including five drillholes completed by Kiska in the fall of 2010.
A pit-constrained resource (Table 1), using a $7.50/ton cut-off (approximately 0.3 g/t Au Eq cut-off) yields an indicated resource of 79.2M tonnes at 0.51 g/t gold, 0.17% copper and 1.97 g/t silver (2.3M oz Au Eq) and an inferred resource of 145.7M tonnes at 0.40 g/t gold, 0.15% copper and 1.75 g/t silver (3.5M oz Au Eq).
The new estimate substantially increases the size of the in-pit indicated resource with a 164% increase in tonnes and a 72% increase in contained metal by gold equivalent ounces relative to the 2008 open pit resource estimate and substantially reduces the strip ratio of the resource from 1.93 to 1.32. In the inferred category (open pit), the new estimate reports an 19% increase in tonnes with a 13% decrease in contained gold equivalent ounces due to lower grades.
Table 1.
The new estimate shows an increase in tonnage and corresponding decrease in grade for the pit-delineated resource and the in-situ resource due primarily to two factors. The 2010 model, incorporating the latest reported drilling, utilized two geological domains (the Whistler Diorite Solid separated in east-west domains by the Divide Fault) whereas the 2008 model utilized grade shells to define the extent of mineralized domains. The lowest grade shell in the 2008 model was defined at a 0.30 g/t Au Eq cut-off and thus ignored lower grade material outside of that shell. This has the effect of decreasing the tonnage and increasing the grade of the deposit relative to the geological domains utilized in the 2010 estimate. The second factor affecting the revised resource relates to the drilling completed since the 2008 estimate, which intersected lower grade material than what was predicted by the previous model, particularly on the periphery of the deposit. This drilling also showed there may be a stronger structural control to mineralization than what was previously believed.
Jason Weber, President and CEO of Kiska Metals Corporation stated, "The Whistler Deposit provides a multi-million ounce resource base on a very small portion of our 527 km2, 100%-owned project. We will focus our attention in 2011 to developing a greater understanding of the size and potential of our four additional porphyry discoveries at Island Mountain, Raintree East, Raintree West, and Rainmaker. The close proximity (<3km) of the Raintree and Rainmaker discoveries to Whister will substantially enhance the value of the ounces already identified at Whistler."
2011 Exploration Program
The 2011 Exploration program at Whistler is planned to commence in early March. Preparations are now underway to mobilize equipment to site via an ice road in anticipation of the March startup. The intent of this program is to increase our understanding of the size-potential of the four early stage porphyry discoveries (Island Mountain, Raintree West, Raintree East and Rainmaker) and to test, by drilling, for additional porphyry discoveries at the highest priority of the 20 grassroots targets that exist on the property. The 2011 program will commence at the Raintree West target, where a 2010 drill hole yielded 83.0 metres of 1.2 g/t gold, 11.8 g/t silver, 0.06% copper, 0.53% lead and 1.08% zinc. In addition, grassroots targets within the Whistler Orbit, the area surrounding the Whistler Deposit, will also be investigated in this spring program. When weather conditions permit (expected to be June), two drills will be mobilized to Island Mountain to build on the 15 holes drilled at this target in 2009 and 2010, including hole IM10-13 which intersected 114.9 metres of 1.25 g/t gold, 4.0 g/t silver and 0.23% copper (1.74 g/t gold equivalent). Additional targets in the vicinity of Island Mountain will also be tested during the 2011 program.
Management expects a three-fold increase in drilling focused on new porphyry discoveries (particularly Island Mountain and Raintree West) and new targets, as compared to 2010. A recently-completed exploration camp located in the Whistler Orbit area will extend our exploration season and help reduce exploration costs, as it will allow more cost-effective bulldozer-supported drilling in the Orbit area and half the travel distance to Island Mountain for helicopter-supported exploration.
"In the short period since Kiska's commencement of exploration at Whistler in August of 2009 and the completion of the Kennecott trigger program in late 2010, we have accomplished a great deal and I am proud of what our exploration team has achieved, notably at Island Mountain where we made the initial discovery and now, only 15 holes later, have started to delineate a gold-copper deposit," stated Jason Weber. "We have made new discoveries in the Whistler Orbit area and have identified numerous targets that have yet to be drill-tested. In 2011, we will be in the unique position of delineating these new discoveries while also drilling new high-potential targets that could lead to additional discoveries in the Whistler area."
Resource Update Details
The updated resource was completed by Moose Mountain Technical Services. A NI43-101 Technical Report will be filed on SEDAR within 45 days. The resource has been modeled with a 20x20x10 metre block model restricted within two 3-D geological domains (Domain 1 and Domain 2: eastern and western portions of the Whistler Diorite Solid, respectively, separated by the Divide Fault). Compositing of gold, silver and copper grades has been done as 5 metre fixed length composites. Small intervals less than 2 metres are merged with the up-hole composite if the composite length is less than 5 metre. The gold and copper grades are defined with a single spherical variogram model, with the silver defined by two nested spherical structures. Interpolation of gold, copper and silver values is done by ordinary kriging in two passes based on the variogram parameters. Interpolation was restricted by the Diorite Solid, with composites also restricted within each domain. Indicated and inferred resources are used for pit optimization and the pit slope angle is considered constant at 45 degrees for all cases.
A pit-constrained resource (Table 1), using a $7.50/ton cut-off (approximately 0.3 g/t Au Eq cut-off) yields an indicated resource of 79.2M tonnes at 0.51 g/t gold, 0.17% copper and 1.97 g/t silver (2.3M oz Au Eq) and an inferred resource of 145.7M tonnes at 0.40 g/t gold, 0.15% copper and 1.75 g/t silver (3.5M oz Au Eq).
The new estimate substantially increases the size of the in-pit indicated resource with a 164% increase in tonnes and a 72% increase in contained metal by gold equivalent ounces relative to the 2008 open pit resource estimate and substantially reduces the strip ratio of the resource from 1.93 to 1.32. In the inferred category (open pit), the new estimate reports an 19% increase in tonnes with a 13% decrease in contained gold equivalent ounces due to lower grades.
Table 1.
|
2011 Whistler Deposit Resource Estimate
|
|||||||||
|
|
Tonnes and Grade
|
Total Contained Metal
|
|||||||
|
Resource Category
|
Tonnes
(Mt) |
Gold
(g/t) |
Silver
(g/t) |
Copper
(%) |
Gold
Eq2 g/t |
Gold
(Moz) |
Silver
(Moz) |
Copper
(Mlbs) |
Gold Eq6
(Moz) |
| Open Pit Resource | |||||||||
| Indicated1 |
79.2
|
0.51
|
1.97
|
0.17
|
0.88
|
1.28
|
5.03
|
302
|
2.25
|
| Inferred1 |
145.8
|
0.40
|
1.75
|
0.15
|
0.73
|
1.85
|
8.21
|
467
|
3.35
|
| 2008 Whistler Deposit Resource Estimate | |||||||||
| Tonnes and Grade | Total Contained Metal | ||||||||
|
Resource Category
|
Tonnes
(Mt) |
Gold
(g/t) |
Silver (g/t)
|
Copper
(%) |
Gold Eq
3 (g/t) |
Gold
(Moz) |
Silver
(Moz) |
Copper
(Mlbs) |
Gold Eq
6 (Moz) |
| Open Pit & Underground Resource | |||||||||
| Indicated (open-pit3) |
30
|
0.87
|
2.46
|
0.24
|
1.35
|
0.84
|
2.37
|
159
|
1.31
|
| Total Indicated |
30
|
0.87
|
2.46
|
0.24
|
1.35
|
0.84
|
2.37
|
159
|
1.31
|
| Inferred (open-pit3) |
123
|
0.59
|
2.07
|
0.19
|
0.98
|
2.33
|
8.19
|
515
|
3.86
|
| Inferred (under-ground4) |
11
|
1.16
|
3.55
|
0.24
|
1.66
|
0.41
|
1.26
|
58
|
0.59
|
| Total Inferred 4 |
134
|
0.64
|
2.18
|
0.20
|
1.05
|
2.74
|
9.44
|
573
|
4.44
|
- Reported within a conceptual pit shell (45 degree pit slope angle) and based on a cut-off grade of $7.5/t adjusted for metallurgical recovery and offsite costs.
- Gold equivalent grade calculation was based on 75 percent recovery for gold and silver; 85 percent recovery for copper ; US$990 per ounce gold, US$15.40 per ounce silver and US$2.91 per pound of copper.
- Reported within a conceptual pit shell (35 degree pit slope angle) and based on a cut-off grade of 0.3 g/t gold equivalent adjusted for metallurgical recovery.
- Reported based on an underground bulk mining method using a cut-off grade of 1.1 g/t gold equivalent adjusted for metallurgical recovery.
- Gold equivalent grade calculation was based on 75 percent recovery for gold and silver; 85 percent recovery for copper; US$550 per ounce gold, US$8 per ounce silver and US$1.50 per pound of copper.
- Totals may vary due to rounding.
The new estimate shows an increase in tonnage and corresponding decrease in grade for the pit-delineated resource and the in-situ resource due primarily to two factors. The 2010 model, incorporating the latest reported drilling, utilized two geological domains (the Whistler Diorite Solid separated in east-west domains by the Divide Fault) whereas the 2008 model utilized grade shells to define the extent of mineralized domains. The lowest grade shell in the 2008 model was defined at a 0.30 g/t Au Eq cut-off and thus ignored lower grade material outside of that shell. This has the effect of decreasing the tonnage and increasing the grade of the deposit relative to the geological domains utilized in the 2010 estimate. The second factor affecting the revised resource relates to the drilling completed since the 2008 estimate, which intersected lower grade material than what was predicted by the previous model, particularly on the periphery of the deposit. This drilling also showed there may be a stronger structural control to mineralization than what was previously believed.
Jason Weber, President and CEO of Kiska Metals Corporation stated, "The Whistler Deposit provides a multi-million ounce resource base on a very small portion of our 527 km2, 100%-owned project. We will focus our attention in 2011 to developing a greater understanding of the size and potential of our four additional porphyry discoveries at Island Mountain, Raintree East, Raintree West, and Rainmaker. The close proximity (<3km) of the Raintree and Rainmaker discoveries to Whister will substantially enhance the value of the ounces already identified at Whistler."
2011 Exploration Program
The 2011 Exploration program at Whistler is planned to commence in early March. Preparations are now underway to mobilize equipment to site via an ice road in anticipation of the March startup. The intent of this program is to increase our understanding of the size-potential of the four early stage porphyry discoveries (Island Mountain, Raintree West, Raintree East and Rainmaker) and to test, by drilling, for additional porphyry discoveries at the highest priority of the 20 grassroots targets that exist on the property. The 2011 program will commence at the Raintree West target, where a 2010 drill hole yielded 83.0 metres of 1.2 g/t gold, 11.8 g/t silver, 0.06% copper, 0.53% lead and 1.08% zinc. In addition, grassroots targets within the Whistler Orbit, the area surrounding the Whistler Deposit, will also be investigated in this spring program. When weather conditions permit (expected to be June), two drills will be mobilized to Island Mountain to build on the 15 holes drilled at this target in 2009 and 2010, including hole IM10-13 which intersected 114.9 metres of 1.25 g/t gold, 4.0 g/t silver and 0.23% copper (1.74 g/t gold equivalent). Additional targets in the vicinity of Island Mountain will also be tested during the 2011 program.
Management expects a three-fold increase in drilling focused on new porphyry discoveries (particularly Island Mountain and Raintree West) and new targets, as compared to 2010. A recently-completed exploration camp located in the Whistler Orbit area will extend our exploration season and help reduce exploration costs, as it will allow more cost-effective bulldozer-supported drilling in the Orbit area and half the travel distance to Island Mountain for helicopter-supported exploration.
"In the short period since Kiska's commencement of exploration at Whistler in August of 2009 and the completion of the Kennecott trigger program in late 2010, we have accomplished a great deal and I am proud of what our exploration team has achieved, notably at Island Mountain where we made the initial discovery and now, only 15 holes later, have started to delineate a gold-copper deposit," stated Jason Weber. "We have made new discoveries in the Whistler Orbit area and have identified numerous targets that have yet to be drill-tested. In 2011, we will be in the unique position of delineating these new discoveries while also drilling new high-potential targets that could lead to additional discoveries in the Whistler area."
Resource Update Details
The updated resource was completed by Moose Mountain Technical Services. A NI43-101 Technical Report will be filed on SEDAR within 45 days. The resource has been modeled with a 20x20x10 metre block model restricted within two 3-D geological domains (Domain 1 and Domain 2: eastern and western portions of the Whistler Diorite Solid, respectively, separated by the Divide Fault). Compositing of gold, silver and copper grades has been done as 5 metre fixed length composites. Small intervals less than 2 metres are merged with the up-hole composite if the composite length is less than 5 metre. The gold and copper grades are defined with a single spherical variogram model, with the silver defined by two nested spherical structures. Interpolation of gold, copper and silver values is done by ordinary kriging in two passes based on the variogram parameters. Interpolation was restricted by the Diorite Solid, with composites also restricted within each domain. Indicated and inferred resources are used for pit optimization and the pit slope angle is considered constant at 45 degrees for all cases.
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