Royal Roads updates mineral resource at Daniels Pond
in response to
by
posted on
Mar 13, 2008 09:45AM
Royal Roads Corp. is a Halifax, Nova Scotia, Canada based exploration and development company focused on its gold and base metal properties in central Newfoundland, particularly, the famous Buchans Mining Camp.
Trading Symbol: RRO - TSX-V
Shares Outstanding: 73,681,909
HALIFAX, March 13 /CNW/ - Royal Roads Corp. (RRO-TSX-V) ("Royal Roads" or "Company") reports that Mercator Geological Services Limited ("Mercator") of Dartmouth, Nova Scotia has completed an independent mineral resource estimate for the Company's 100% owned Daniels Pond deposit in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Standards and National Instrument 43-101 (NI-43-101). The mineral resource estimate was calculated using data from 133 drill holes comprising 27,603 metres, of which 71 holes comprising 13,338 metres were drilled byRoyal Roads in 2007 and early 2008.
The new estimate has successfully upgraded a large portion of the deposit to the Indicated category and has allowed the Company to more accurately define the dimensions and characteristics of the mineralization. The most salient feature of the new Daniels Pond resource is the fact that the majority of mineralization extends from surface to no more than 150 metres below surface and thus provides the basis for further investigating the possibility of mining the resource by open pit methods. Future activities at Daniels Pond will include continued exploration at depth and along strike for additional resources, more refined metallurgical testing of the recovery characteristics of the metals within the resource and investigating the possibility of developing Daniels Pond in partnership with other resources in the region. It must also be noted that beyond Daniels Pond itself, the Company has now completed a full digital compilation of all historical work completed on the entire 16,075 hectare Tulks North property (within which Daniels Pond is located) and is currently planning further exploration programs that will expand outwards from Daniels Pond and look for new discoveries in this expansive and highly prospective holding.
The Daniels Pond resource as calculated by Mercator is identified in Table 1 below and an updated long-section depicting resource outlines is now available on the Company's website located athttp://www.royalroadscorp.ca.
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Table 1: Daniels Pond Deposit Mineral Resource Estimate by Zn% Cut-off -
Effective March 11, 2008
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Combined
Cut-off Zn%+Pb%+ Ag Au
Category (Zn %) Tonnes Cu% Zn % Pb % Cu % g/t g/t
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Indicated 1.5 1,162,000 6.88 4.44 2.12 0.31 87.79 0.60
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2.0 929,000 7.98 5.13 2.50 0.34 101.40 0.63
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2.5 787,000 8.79 5.65 2.77 0.37 111.03 0.68
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Inferred 1.5 445,000 5.89 3.88 1.74 0.27 81.63 0.52
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2.0 332,000 7.04 4.61 2.13 0.30 85.86 0.53
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2.5 236,000 8.70 5.59 2.79 0.32 112.31 0.55
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Previously, on November 7, 2006, Royal Roads announced a NI-43-101 compliant Inferred resource for the Daniels Pond deposit comprising 1.69 million tonnes grading 8.37% zinc, 4.4% lead, 0.57% copper, 196.9 g/t silver and 0.68 g/t gold at a cut off grade of 2% zinc over a true width of 2 metres. This resource was prepared by Taiga Consultants Ltd. ofCalgary , Alberta using results of drilling completed up to 2006. As the new Mercator resource estimate is based on significantly more complete and comprehensive information, the Taiga Resource is no longer considered valid and should not be relied upon.
Management's Comment
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Warren MacLeod, President of Royal Roads stated, "Our efforts over the past year have successfully defined the Daniels Pond resource and have identified that the majority of the mineralization extends from surface to no more than 150 metres below surface. Now that we have successfully upgraded most of the resource to the Indicated category, we can focus our future efforts on investigating the potential to develop and mine the resource by open pit methods in partnership with other resources in the region. We will also continue to explore for additional resources at depth and along strike, and continue to refine our metallurgical program to better identify recovery characteristics of the mineralization."
Daniels Pond Description
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The Daniels Pond deposit is a lower Paleozoic volcanogenic massive sulphide ("VMS") body characterized by in situ massive to semi-massive sulphide zones enriched in zinc, lead, copper, silver, and gold. The bulk of the deposit occurs within 150 metres of surface in two lobes of mineralization, the weaker mineralized Northeast Lobe and the stronger mineralized Southwest Lobe which contains the majority of Indicated category resource reported above. These lobes dip steeply to the northeast and have a combined strike length of 1,100 metres. This style of mineralization is common within the Tulks Belt volcanic terrain of central Newfoundland.
Methodology
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The resource estimate reflects a three-dimensional deposit block model developed by Mercator using Surpac(C) Version 6.0.1 deposit modeling software. Analytical results for 133 diamond drill holes were used in this model, of which 71 drill holes are from recent Company drilling. The model utilized 1 metre down-hole assay composites individually calculated for Zn%, Pb%, Cu%, Ag g/t, and Au g/t assay values. Model blocks measure 2.5 m x 2.5 m x 2.5 m with sub-blocking at 1.25 m x 1.25 m x 1.25 m. The model was constrained by multiple wireframed solids, based on geological sections, that reflect a minimum included grade of 0.75% Zn over a 1.0 metre down-hole length. No high grade capping factors were applied. The resource solids occur between the bedrock-overburden interface and a maximum depth of approximately 300 metres below surface.
Metal grades were assigned to the block model using inverse distance squared interpolation methodology with blocks being peripherally constrained by wireframe solids. A grade interpolation search ellipse with major and semi-major axis ranges of 60 metres, and minor axis range of 30 metres was used. Two calculation domains were defined, these corresponding to the Northeast and the Southwest lobes of the deposit, and search ellipse major axes were oriented, respectively, at azimuths 050 degrees and 025 degrees with vertical inclinations. Major and minor axis parameters were selected based on continuity and distribution of metal grade and reflect geological characteristics of the mineralized zones.
Indicated category resources were defined by blocks occurring within resource solids containing three or more drill holes and have a maximum distance to reporting composites of 28 metres and a minimum of 6 reporting composites. All other blocks within the resource solids that met grade criteria were placed in the Inferred resource category.
Results of 364 separate laboratory determinations of specific gravity ("SG") were used in the block model. An average value of 4.03 g/cm3 was assigned to blocks occurring within the lower grade massive pyrite lithological unit and grade based SG factors ranging from 2.95 g/cm3 to 4.32 g/cm3, were otherwise assigned.
Qualified Person & Sampling Procedure
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Peter C. Webster, P. Geo., of Mercator Geological Services Limited has supervised the Company's drilling program, and has reviewed related technical information presented in this news release.Mr. Webster is an independent third party geologist, President of Mercator Geological Services Limited, and is the Qualified Person as defined under NI 43-101 responsible for the resource estimate presented in this news release. Historical information used in this resource has been validated, and all information obtained from drilling by the Company has followed logging, sampling and assaying procedures as per the Company's QA/QC protocol described fully inRoyal Roads news release No.06-07, dated February 27, 2007.
About Royal Roads
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Royal Roads is a resource company based in Halifax, Nova Scotia, Canada and is focused on exploring and developing base metal properties in central Newfoundland, Canada. Royal Roads and its 26.39% owned affiliated company, Buchans River Ltd., together control a total of 33,700 hectares within central Newfoundland and Labrador'sVictoria Lake and Buchans mining camps, including the historic Buchans mine (owned by Buchans River) and the Daniels Pond deposit (owned by Royal Roads). Royal Roads is 44.40% controlled by Acadian Mining Corporation, a Halifax based resource company developing gold and base metal properties, including the Scotia Mine (lead and zinc) in Nova Scotia.
Forward Looking Statements
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Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00008176E
For further information: Warren G. MacLeod, President & CEO; David Felderhof, Vice-President, (902) 444-3637, Halifax, Nova Scotia