SAN DIEGO, April 3 /PRNewswire-FirstCall/ -- Eastern Goldfields, Inc. ("EGI") is pleased to announce:
Mineral Reserves
With the finalization of the last of three phases of diamond drilling at the Group's Lily Mine, EGI is pleased to announce a 76% increase in the Group's Mineral Reserves to 366,100 oz since March 31, 2006. Over the same period, the Mineral Resources (defined in terms of the SAMREC code of reporting) at the Lily Mine were increased by 46% to 1,027,000 oz.
The following table summarises the Group's Mineral Reserves and Mineral Resources as at December 31, 2006:
Category Tons Grade Content
(000) g/t Kg Oz
Resources
Measured 5,853 2.80 16,410 527,500
Indicated 2,185 3.20 6,990 225,000
Inferred 4,651 3.93 18,260 587,100
Total 12,689 3.28 41,660 1,339,600
Reserves
Proved 93 2.58 240 7,700
Probable 2,089 5.34 11,150 358,400
Total 2,182 5.22 11,390 366,100
The Lily Mine's Mineral Reserves and Mineral Resources as at December 31, 2006 were as follows:
Lily Mine Tons Grade Content
(000) g/t Kg Oz
Resources
Measured 5,244 2.85 14,950 480,500
Indicated 1,640 2.95 4,840 155,800
Inferred 3,711 3.27 12,150 390,700
Total 10,595 3.01 31,940 1,027,000
Reserves
Proved 93 2.58 240 7,700
Probable 2,089 5.34 11,150 358,400
Total 2,182 5.22 11,390 366,100
The success, to date, of the drilling programs in the Lily Project area is further reflected in the discovery of additional zones of gold mineralization over some 2 km of strike (horizontal continuation) of the Lily ore body. This has lead to the establishment of the new Lily East open pit and the identification of the economic potential of a more laterally extensive area for shallow underground mining than originally thought when the underground pre-feasibility study was completed a year ago.
Worcester Mine
The results of Phase 1 (WD boreholes) as well as previous diamond drilling (WCR boreholes) at the Group's dormant Worcester mine are as follows:
Worcester Reef
Hole Intersection H/W Reef Zone F/W Reef Zone
Hole ID Depth Depth Grade Width Grade Width
(m) (m) (g/t) (cm) (g/t) (cm)
WD 1 200.22 190.00 1.88 233
WD 1D 42.73 190.00 1.76 310
WD 2 310.73 287.00 0.84 45
WD 2D 25.17 287.00 1.22 150
WD 3 340.17 T
WD 3D 16.17 T
WD 4 342.87 T
WD 4D 12.00 T
WD 5 449.21 396.00 6.65 800 3.65 990
WD 5D 17.11 369.00 6.51 970
WD 6 241.52 184.00 1.56 51
WD 6D 40.00 184.00 1.02 102
WD 7 370.50 T
WD 7D 30.27 T
WD 8 370.00 331.00 1.18 69
WD 8D 42.00 331.00 1.54 260
WD 9 260.50 245.00 0.52 80
WD 9D 14.27 245.00 0.41 65
Subtotal 3125.44
WCR1 309.66 285.00 3.53 210
WCR2 271.80 267.00 5.12 110
WCR3 381.45 372.00 2.19 250
WCR4 101.12 56.00 0.86 150
WCR5 94.27 65.00 1.71 210
WCR6 99.18 79.00 0.56 80
WCR8 476.08 410.00 15.20 320 2.94 490
WCR8D 43.68 410.00 3.19 860 4.24 760
WCR9 136.00 111.00 6.94 98
WCR10 143.13 134.00 1.48 210
WCR11 331.39 293.00 10.40 760 3.39 680
WCR13 414.85 297.00 2.10 50
WCR14 408.98 368.00 2.93 80 2.31 180
WCR14D1 41.60 368.00 23.51 380 2.20 90
WCR14D2 26.85 368.00 2.60 80
WCR15 450.60 440.00 3.55 335
Subtotal 3730.64
Total 6856.08 WD1 = Hole ID. WD1D = Hole ID + Wedge.
T = trace.
Phase 1, comprising 3,125 m of core, brings the total number of exploration diamond drill holes at the Worcester Mine to 22. The latest phase of drilling was planned to probe the immediate strike and depth extension of the known, previously mined ore body with the objective of gathering geological information on the complex structure and gold distribution trends in the Worcester Reef.
The results of the Phase 1 drilling have confirmed that the Worcester Reef continues in depth, and that the well mineralized portions have been dislocated by faulting and shearing. The next phase of drilling will be designed to delineate the main zones of mineralization.
Dr Willo Stear, EGI's Technical Director, said, "The relatively limited amount of exploration drilling completed over the past year has not only added to our Mineral Reserve and Mineral Resource inventory, at a low cost of discovery, but it has also provided us with enhanced information on the geological controls and continuity of gold mineralization in the areas where we have concentrated our activities thus far. Our independent Competent Person, Prof. Dick Minnitt, has reviewed our mine geological models and audited our Mineral Reserve and Mineral Resource statement."
About EGI:
EGI is a growing company engaged in the mining, exploration and acquisition of gold properties in some of Southern Africa's most prospective regions. The company holds mineral rights over 34,600 acres (14,000 ha), currently has Mineral Resources in excess of 1.3 million ounces and Mineral Reserves in excess of 366,000 oz.
This press release contains 'forward-looking statements.' These are statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. In some cases forward-looking statements can be identified by the use of forward-looking words such as 'believes,' 'expects,' 'may,' 'will,' 'should,' or 'anticipates,' or the negative of these words or other variations of these words or comparable words, or by discussions of plans or strategy that involve risks and uncertainties. Management wishes to caution the reader that these forward-looking statements, including, but not limited to, statements regarding the company's plans, projected growth in our sales volume, goals and, the business strategy of the company and other matters that are not historical facts are only predictions. No assurances can be given that such predictions will prove correct or that the anticipated future results will be achieved. Actual events or results may differ materially either because one or more predictions prove to be erroneous or as a result of other risks facing the company. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, the intense competition the company faces from others, and technological changes. Any one or more of these or other risks could cause actual results to differ materially from the future results indicated, expressed, or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement to reflect events, circumstances, or new information after the date of this press release or to reflect the occurrence of unanticipated or other subsequent events.
