 | | | September 17, 2009
Aurelio Announces Geological Resource Estimate for Iron Butte Gold-Silver Project
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| | News Release #09-11
Aurelio Resource Corporation (OTCBB : AULO, Frankfurt : F3RA) is pleased to announce receipt of an independent estimate of the in-place gold and silver mineralized material at the Company's 100%-owned Iron Butte project in Lander County, Nevada, located approximately eight miles south-southeast of the past-producing Cove-McCoy gold mine along the Battle Mountain - Eureka gold trend.
Highlights
- Estimated in-situ geologic resource at 0.01 oz Au/ST cut-off grade totals 21.18 million tons of mineralized material with average grades of 0.015 oz Au/ST and 0.291 oz Ag/ST.
- Modeling identifies very large, low-grade shell of gold and silver mineralization that remains open in all directions, including a significant zone of potential sediment-hosted (Carlin type) gold mineralization extending to the north and east.
- Excellent potential exists to increase the size of the deposit with infill, lateral, and drilling at depth.
Geological Resources
Estimated in-situ geological resources at the Iron Butte deposit at varying cut-off grades are as follows:
Table 1 Iron Butte Geological Resources at Varying Cut-off Grades
Cut-off grade
(oz Au / ST) |
Tons (ST) |
Gold Grade
(oz Au/ST) |
Silver Grade
(oz Ag/ST) |
0.007 |
47,555,638 |
0.012 |
0.219 |
0.010 |
21,180,858 |
0.015 |
0.291 |
0.012 |
12,414,366 |
0.018 |
0.355 |
0.015 |
6,175,529 |
0.022 |
0.476 |
The geologic modeling and interpretations were performed by Mr. Earl Detra, P.G., as a Qualified Person. The resource calculations, summary tables and graphics were prepared for Mr. Detra by an independent mining consulting firm in Lakewood, Colorado.
Geologic Modeling Parameters
The historic exploration database for Iron Butte consists of a total of 225 RVC drill holes (totaling 103,722 feet) completed between 1980 and 2009 by Homestake Mining, Cameco, Newcrest, Newmont Mining and C3 Resources.
Data from the reverse circulation drill holes provided a total of 5,222 twenty-foot composite gold and silver assays. Excluded from the calculations were five drill holes without available gold assays, and 14 drill holes without silver assays.
Investors are advised that the values reported in this new release are not NI 43-101 or JORC-compliant. Rather, the intention of this program was to provide independent confirmation of the tonnages and grades of the in-situ mineralized material at Iron Butte, and a model to guide future drilling.
Interpretations and Conclusions
The Company believes that there is excellent potential to expand the size of the existing resource by testing areas beyond the currently defined mineralization and by completing infill holes where drilling was too widely spaced to be classified as a resource. The primary exploration target with the greatest potential to significantly increase the resource will be to drill deeper into the sedimentary sequence where not only will the deposit be expanded (as many historic drill holes bottomed in attractive-grade material) but where there is excellent potential for a large, sediment-hosted deposit.
The Company will commission an independent scoping study that will employ this in-situ resource estimate. Detailed structural modeling of the deposit is also in progress.
Steve Doppler, President and CEO, stated: "Completion of the independent geologic resource estimate for Iron Butte is a significant achievement for Aurelio. This report validates our geologic interpretation of the deposit and the historical drilling database, confirms C3 Resources' historical in-house estimate, and clearly demonstrates this project has significant upside potential."
On behalf of the Board of Directors,
Stephen B. Doppler
President and CEO
303-795-3030
800-803-1371
About the Company
Aurelio Resource Corporation recently acquired a portfolio exploration and development-stage gold projects in Nevada, most of which are located on or in-between the Carlin and Battle Mountain-Eureka Trends; several of the projects are situated along the Cortez-Carlin Trend, which conceptually links the Carlin and Battle Mtn - Eureka Trends in a similar fashion as does the Getchell Trend to the northwest. The Company also holds a 3% NSR interest in the Hill (Arizona) Copper-Zinc Project, which contains an estimated resource of 167.9 million tons grading 0.52% copper-equivalent. Aurelio has also acquired the rights to explore, and an option to purchase, the Gavilanes gold deposit in Durango, Mexico.
For additional information, please visit our website www.AurelioResource.com
Cautionary Note to Investors
The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this release, such as "measured", "indicated", "inferred" and "geologic resources" that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC, although this terminology is common in other jurisdictions, including Canada.
The potential quantity and grade of the mineralized material referred to in this release is preliminary in nature. There has been insufficient exploration to define a mineral resource and we cannot say with certainty if further exploration will result in the target being delineated as a mineral resource. Furthermore, the preliminary assessments referred to in this release are preliminary in nature, and include inferred mineral resources for which it is too early in the exploration process to have the economic considerations applied to them that would enable them to be categorized as mineral reserves or resources. There is no certainty that the preliminary assessment will be realized, or that the inferred resources will be determined as presently defined.
As referred to in this news release, "Mineralized Material" or "Deposit" is a mineralized body which has been delineated by drilling to establish continuity and support an estimate of tonnage and an average grade of the selected metals. Mineralized material is reported as "in-place" tonnages and grades, and, in the opinion of the Company, has reasonable prospects for economic extraction, and has been delimited using an economically-based cutoff grade to segregate potentially economic material from just mineralization. Under SEC standards, such a deposit does not qualify as a reserve until a comprehensive evaluation, based upon unit costs, metallurgical recoveries and other factors have established economic viability.
Legal Notice Regarding Forward Looking Statements
Statements in this news release that are not historical are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934 as amended. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Such forward-looking statements include, among others, statements concerning North Sleeper hosting extensions of the mine structures, and the property's potential to host high grade vein and bulk mineralization similar to the Midas and Sleeper mines.
It is important to note that the Company's actual outcomes may differ materially from those statements contained in this press release. Factors which may delay or prevent these forward looking statements from being realized include: that we may not be able to reach final agreement on definitive documents required parties; misinterpretation of data; that we may not be able to keep our qualified personnel; that funds expected to be received may not be; that our estimates of mineral resources are inaccurate; uncertainties involved in the interpretation of drilling results and other tests and the estimation of resources; that we may not be able to get equipment or labor as we need it; that we may not be able to raise sufficient funds to complete our intended exploration, purchase, lease or option payments; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that analysis of data cannot be done accurately and at depth; that results which we have found in any particular location are not necessarily indicative of larger areas of our property; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company's most-recent Form 10-K and Form 10-Q Reports filed with the Securities and Exchange Commission. |
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