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ML Gold Corp. (TSX-V: MLG; FSE: X0VN.F) (“ML Gold” or the “Company”) is pleased to announce a maiden National Instrument 43-101 (“NI 43-101”) Inferred Resource Estimate for the 100% owned Palmetto Epithermal Gold Project in Nevada of 10.1 million tonnes grading 0.95 g/t Au, and 7.29 g/t Ag (1.05 g/t AuEq) containing 310,000 ounces of gold, and 2.4 million ounces of silver for a total of 342,000 AuEq ounces in a pit constrained shell. Beneath the pit constrained resource, there is an initial underground inferred resource, completely open to depth and along strike, at 3.6 g/t Au and 10.8 g/t Ag (3.74 g/t AuEq) for an additional 11,753 AuEq ounces, giving a total maiden inferred resource of 353,435 AuEq ounces. The NI 43-101 Technical Report prepared by WSP Canada Inc. (“WSP”) will be filed on SEDAR within 45 days of this release.

Table 1 - Palmetto Constrained Resource Statement with cut-off @ 0.14 g/t AuEq for Pit and 2g/t AuEq for Underground (U/G)

Classification Tonnes
(000s)
Au
g/t
Ag
g/t
AuEq
g/t
Au 
oz
Ag 
oz.
AuEq
oz.
Inferred (Pit) 10,134 0.95 7.29 1.05 310,360 2,374,120 341,720
Inferred (U/G) 98 3.6 10.8 3.74 11,305 33,910 11,755
Total Inferred         321,665 2,408,030 353,475

Figure 1 (below) shows the current extent of drilling and Figure 2 shows a cross section through the eastern end of the resource area. Figure 3 highlights several additional mineralized zones hosting significant grades within close proximity to both the Discovery and Northwest Zones. These zones have yet to be included in the resource estimate due to drilling density. The pit shell was generated by applying certain economic constraints, now required under NI 43-101 disclosure on inferred resource estimates. ML Gold sees these areas having immediate potential to significantly increase the overall resource on the Palmetto Gold Project by increasing the drilling density between mineralized shells (see Figure 3). Evidence suggests that there is significant potential to expand the resource in multiple directions.

The Company is currently permitting a phase two program designed to expand on and discover new areas surrounding the mineralized shells used for the resource (Tables 1 and 2). Outside of the immediate resource area, potential remains to discovery new zones along the northwest trending structural corridor (the “Palmetto Gold Trend”) which extends over 3 kilometres to the northwest from the Discovery Zone and includes the past producing Red Rock Mercury mine, and historic underground workings by Newmont.

 

NR_oct2_fig1.jpg
Figure 1: Palmetto Gold Project Drill Plan Compilation Map

NR_oct2_fig2.jpg
Figure 2: North-South Cross-Section thought Discovery Zone (A – A’)

NR_oct2_fig3.jpg
Figure 3: Northwest Zone Pit area Cross-Section (B-B’) showing potential zone to expand resource

The Palmetto Project NI 43-101 Inferred Resource Estimate was prepared by independent qualified person Todd McCracken, P. Geo. of WSP.  The resource estimate is based on the combination of geological modeling, geostatistics and conventional block modeling using the Ordinary Krig methodology of grade interpolation.  The mineralized zones were defined by wire-framed solids consisting of several discrete domains. The mineral resources were estimated using a block model with parent blocks of 5m X 2.5m X 2.5m.

The WSP Resource Estimate also evaluated the Palmetto resource at a range of cut-off grades between 0.05 g/t AuEq and 0.25 g/t AuEq. The grade tonnage table shows how changes in tonnage and grade affect the resource. The Complete Grade tonnage table can be viewed on the Company’s website. Results are as follows:

Table 2 - Palmetto Resource Grade-Tonnage Table (full version of this table can be viewed on the company’s website)

  • Pit Constrained Resource
AuEq Cut-off
(g/t)
Tonnes
(‘000s)
Au
(g/t)
Ag
(g/t)
AuEq
(g/t)
Au
(oz)
Ag
(oz)
AuEq
(oz)
0.10 11,716 0.84 6.69 0.93 316,430 2,520,930 349,720
0.14 10,134 0.95 7.29 1.05 310,360 2,374,120 341,720
0.17 9,152 1.04 7.70 1.14 305,500  2,266,120 335,430
0.20 8,322 1.12 8.11 1.23 300,580 2,169,780 329,240
  • Underground beneath Pit Constrained Resource
AuEq Cut-off
(g/t)
Tonnes
(‘000s)
Au
(g/t)
Ag
(g/t)
AuEq
(g/t)
Au
(oz)
Ag
(oz)
AuEq
(oz)
1.20 681 1.75 6.41 1.84 38,390 140,365 40,250
2.00 98 3.60 10.80 3.74 11,305 33,910 11,755
2.80 38 7.71 7.93 5.82 7,025 9,745 7,155

Notes to the table of resources:

  1. CIM definition standards were followed for the resource estimate.
  2. The 2017 resource models used Ordinary Krig grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids on several mineral domains.
  3. A base cut-off grade of 0.14 % g/t AuEq was used for reporting resources.
  4. Numbers may not add exactly due to rounding.
  5. Mining Cost $1.35/t mined, Processing Cost $5/t processed (heap leach included G & A and Selling Costs)
  6. Mining Dilution 0% @ 0 grade and Mining Recovery 100%.
  7. Metal Recovery; 80% for Au and 52% for Ag.
  8. Metal prices; $1,350/oz Au and $18.00/oz Ag
  9. Overall slope angles; 45 for rock, 25 for overburden
  10. Gold Equivalent (AuEq) calculated using $1,325/oz Au for gold, $3.00/lb for Copper, and $17.50/oz Ag for silver.
  11. Mineral Resources that are not mineral reserves do not have economic viability
  12. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

Andrew Bowering, Chairman of ML Gold comments “We are extremely pleased with our team’s ability to bring this project to a resource stage within the first year. This initial resource is the result of tying previous work with recent exploration and it highlights the significant potential of the Palmetto Project. Several targets exist along the Palmetto Gold Trend which includes the longest producing mercury mine in Nevada. On this early stage project, with limited drilling to depth, we may be just be poking into the top of the iceberg.”

ML Gold Corp. has an option to acquire a 100% right, title and interest to the Palmetto Gold Project (see news release dated October 18, 2016). The Palmetto Project is located in Esmeralda County, Nevada, within the southern portion of the Walker Lane Gold Trend. 

The Palmetto resource estimate data in this news release was read and approved by Todd McCracken, P.Geo. of WSP, who is independent of ML Gold Corp. and a Qualified Person (“QP”) as defined by Section 1.5 of National Instrument 43-101.

Adrian Smith, P.Geo., is the qualified person for the Company as that term is defined in the National Instrument 43-101, and has supervised the technical information presented within this news release.

ABOUT ML GOLD CORP.

ML Gold Corp. is a Canadian listed Company, focused on creating shareholder value through discoveries and strategic development of mineral properties in Canada and the United States. 

For additional information please visit the Company’s website at www.mlgoldcorp.com.  You may also email This email address is being protected from spambots. You need JavaScript enabled to view it. or call investor relations at (604) 669-2279.

ML GOLD CORP.     

“Andrew Bowering”                               

Andrew Bowering                                 
Chairman      

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws.  When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information.  These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, currency risks including the exchange rate of US$ for CDN$,  changes in exploration costs and government royalties or taxes in Canada, the United States or other jurisdictions and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.

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