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Alacer Gold announces a 10% Measured and Indicated Resource increase for Higginsville Gold Operations

^{Published on 2011-08-29 10:06:35 - Market Wire}
 

TORONTO, Aug. 29, 2011 /CNW/ - Alacer Gold Corp ("Alacer" or the "Company") [TSX:ASR, ASX:AQG] announces an updated Mineral Resource estimate for its Higginsville Gold Operations in Australia. The Measured and Indicated Resource has increased by 10% to 1.33 million ounces (inclusive of reserves), as detailed in Table 1 below.

Table 1:  Mineral Resources for the Higginsville Gold Operation as at July 1, 2011.  Rounding differences will occur. Resource methodology and cut-off grades are summarised in the Technical Procedural Section below.

Exploration continues successfully to more than replace the ounces mined with the Higginsville Measured and Indicated Resource now totaling 12.4 million tonnes at 3.3g/t gold, containing 1.33 million ounces. The new Mineral Resource has been estimated after the depletion of 495,000 ounces (3.6 million tonnes at 4.3g/t gold) from mining the Trident, Fairplay and Vine deposits up to the July 2011 resource estimate date.

Following the mining of over 484,000 ounces of gold from the Trident orebody, the Measured and Indicated Resource for Trident now stands at 4.9 million tonnes at 4.9g/t gold for 765,000 ounces. A portion of the recently discovered Helios zone is now included in the Trident resource for the first time.

The majority of the remaining Higginsville Measured and Indicated Resources are from:

• the Chalice deposit that totals 1.3 million tonnes at 4.6g/t gold for 184,000 ounces; and
• the Fairplay Area (which includes the Vine and Two Boys deposits) that totals 2.7 million tonnes at 1.9g/t gold for 169,000 ounces.

The Chalice Mine has recently been dewatered and infill drilling from underground of the current Chalice resource will commence soon.

The previous (July 2010) Higginsville Mineral Resource is provided below in Table 2.

Table 2:  Mineral Resources for the Higginsville Gold Operation as at July 31, 2010.  Rounding differences will occur.
Source:  NI 43-101 Technical Report of the Mining Operations and Exploration Tenements of Avoca Resources Limited, Western Australia, dated Dec 15, 2010.

All resource numbers quoted in this release are reported inclusive of reserves.

A reserve update based on the July 2011 resource is in progress and will be announced in due course.

Edward Dowling, President and CEO of Alacer stated "It is very pleasing that after producing more than 160,000 ounces of gold since July 2010, we have been able to increase the Higginsville Measured and Indicated Resource by 10%. With our systematic exploration approach and substantial on-going drilling program, we remain very confident we can continue to increase Higginsville's resource base so that this treatment hub achieves our targeted gold production rate of approximately 200,000 ounces per annum."

About Alacer

Alacer is a leading intermediate gold company with operations in both Australia and Turkey.

Australia
Alacer has three operating gold mines in Australia, namely the Higginsville and South Kalgoorlie operations; and a 49% interest in the Frog's Leg underground mine. The South Kalgoorlie operations and the Frog's Leg interest were acquired following the successful takeover of Dioro Exploration NL, which was completed in March 2010. The Australian operations are targeting 280,000 ounces of gold in 2011.

Turkey
Alacer is recognized as a leader in exploration and development in Turkey and, with the start-up of Çöpler, will soon be among Turkey's leading gold producers. Çöpler is 95% owned by Alacer and 5% by Lidya Mining (formerly known as Çalık Mining, see Anatolia News Release, August 13, 2009). Initial plans at Çöpler are to produce approximately 1.42 million leachable ounces of gold at costs consistent with the lower end of industry standards. Average annual production is expected to be about 175,000 gold ounces. Additional production expansion from the sulfide gold reserve is expected to add 2.25 million ounces. A detailed feasibility study is underway. In addition, Alacer holds a significant pipeline of prospective gold and base metal projects.

Alacer currently has 278.0 million common shares issued and outstanding, 297.1 million fully diluted.

Technical Procedural Information

The information in this report which relates to Exploration Results and the Mineral Resources is based on information compiled by Chris Newman, a full-time employee of Alacer, who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Newman has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and a qualified person pursuant to National Instrument 43-101 of the Canadian Securities Administrators. Mr Newman consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Exploration drilling and sampling in Australia utilized surface NQ2 diamond core, RC and aircore.  Drill core was sawn half core and submitted for assaying.  Dependent on the ore body geometry, core sample lengths were constrained by geology, alteration or structural boundaries and sample lengths varied between a minimum of 0.5m to a maximum of 1.3m.  Reported results from RC samples were collected on 1 metre riffle split intervals and from 4m composite samples using aircore.  RC and diamond drill samples were assayed with fire assay with an AAS finish on 50g charges via Genalysis Laboratories in Kalgoorlie and Perth or by pulverise and leach (PAL1000B) with an AAS finish on 500 - 750g charges at the Higginsville Intertek laboratory.  Aircore samples were analysed via low level aqua regia digestion at Ultratrace at Kalgoorlie and Perth.  Internationally accepted standards and blanks were utilised to check on laboratory assay quality control.

Trident Resource Estimation Methodology

Drillhole data used in the Trident resource comprised predominantly underground and surface diamond holes, with some RC and underground sludge holes used. All diamond drillhole collar locations were surveyed by contract mine surveyors. Drillholes were routinely surveyed downhole using techniques ranging from Eastman single shot and Reflex single shot cameras to gyroscopic downhole surveying equipment. Drillhole spacing for the majority of the resource ranged from 10m x 15m to 60m x 60m.

Drill core was logged (lithology, alteration, structure, mineralization, veining) in detail then stored and validated in electronic databases. Following logging, the drill core was sawn half core and submitted for assaying. Dependant on the orebody geometry and size, sample lengths were constrained by geology, alteration or structural boundaries with lengths varying between 0.5m to 1.1m.

Gold analysis of the samples was undertaken using a combination of 1kg LeachWell, 500g Pulverise and Leach (PAL) and 50g Fire Assay. Industry standard reference material and blanks were utilised to check on laboratory assay quality control.
Assays were composited to 1 metre lengths and assessed for appropriate top-cuts. The Athena domains were assigned various top-cuts (Athena 10 & 40 - 250g/t gold; Athena 30 - 350g/t gold and Athena 50 - 90g/t gold); the Artemis domains were assigned a top-cut of 100g/t gold; Apollo, Western Zone, Eos, E-Veins, Poseidon and Eastern Zone domains were assigned a top-cut of 50g/t gold; and Helios domains were assigned a top-cut of 25g/t gold.  All top-cuts were based on composited drillhole data.

A bulk density of 2.89g/cm3 was applied to all domains hosted within gabbro and mafic assemblages and the waste rock, based on a total of 453 samples taken throughout the deposit.  The laminated quartz lodes (Athena 10, 30 and 50) had a 2.7g/cm3 bulk density applied to these domains.

The grade estimation methods included ID2 (Western Zone, Eastern Zone, Eos, E-Veins, Poseidon and Athena 40), ID0 (Athena 10, 30 and 50), assigned grades based on development mapping and sampling (Athena 10, 30 and 50) and Ordinary Kriging (Apollo). Parent block sizes were set at 10m *, 10m (y) and 10m (z), with the minimum sub-cell size dependant on the lode thickness.

A lower cut-off grade of 1.0g/t gold was applied to the thicker orebodies (Western Zone, Apollo, Athena 40, Helios) whereas a 2.0g/t gold lower cut-off grade was applied to the thinner Athena, Eos and E Veins, Eastern Zone, Poseidon and Artemis orebodies to reflect historical stope-mining methodologies.

The resource estimate has been classified based on data density, data quality, confidence in the geological interpretation and confidence in the estimation.

Chalice Resource Estimation Methodology

Drillhole data used in the Chalice Resource comprised predominantly surface and minor underground diamond holes.  All of Alacer's diamond drill-hole collar locations were surveyed by contract mine surveyors using a RTK GPS.  Where identified, historical drillhole collar locations were surveyed using a RTK GPS, with no reliable records available for the collar survey methods for the historical holes.  Alacer drillholes were routinely surveyed downhole using gyroscopic surveying equipment.  No reliable data exist for the downhole surveying technique utilised for the historic drillholes.  Drillhole spacing for the majority of the resource ranges from 20m x 20m to 40m x 40m.

Drill core was logged (lithology, alteration, structure, mineralization, veining) in detail then stored and validated in electronic databases. Following logging, the drill core was sawn half core and submitted for assaying.  The sample lengths were constrained by geology, alteration or structural boundaries with lengths varying from 0.4m to 1.0m.

Gold analysis of the samples was undertaken using a combination of predominantly Fire Assay (20 - 50g charges), Aqua Regia and 1kg LeachWell. Industry standard reference material and blanks were utilised to check on laboratory assay quality control, although no reliable QA/QC data was located for the sampling completed prior to Alacer.

Assays were composited to 1 metre lengths and assessed for appropriate top-cuts. The Atlas domain was assigned a top-cut of 25g/t gold; the Olympus domains were assigned a top-cut of 60g/t Gold; with the Olympus Hangingwall and Footwall domains assigned various top-cuts if there were extreme values present in the dataset.  All top-cuts were based on composited drill-hole data.

A bulk density of 3.03g/cm3 was applied to the Olympus domains; 3.03g/cm3 to the Atlas domain; 3.02g/cm3 to the unmineralized amphibolites; and 2.61g/cm3 to the felsic units, based on 69 samples through the various domains/lithologies at Chalice.

The grade estimation method used was ID2 for all the mineralized domains. Parent block sizes were set at 10m *, 10m (y) and 10m (z), with the minimum sub-cell size set at 1.5m *, 2.5m (y) and 2.5m (z).

A lower cut-off grade of 2.0g/t Gold was applied to the main domains (Atlas and Olympus) whereas a 3.0 g/t gold lower cut-off grade was applied to the thinner hangingwall and footwall domains to reflect likely mining and haulage scenarios.

The resource estimate has been classified based on data density, data quality, confidence in the geological interpretation and confidence in the estimation.

Other Higginsville Resources Estimation Methodology

Drillhole data used in the Vine, Fairplay and Lake Cowan Resources comprised predominantly surface RC and minor surface diamond holes.  All of Alacer's drillhole collar locations were surveyed by contract mine surveyors using either a differential or RTK GPS.  There are no reliable records available for the collar survey methods for the historical holes.  Alacer drillholes were routinely surveyed downhole via an Eastman Single Shot survey camera at 30m intervals.  No reliable data exist for the down-hole surveying technique utilised for the historic drillholes.  Drillhole spacing for the majority of these resources vary between 10m x 10m and 40m x 40m.

For the RC holes, logging of lithology, alteration, mineralization and veining was undertaken on 1 metre composited RC samples.  The diamond drill core was logged in detail for lithology, structure, alteration, mineralization and veining.  All logs have been stored and validated in electronic databases.

RC samples were collected as 1 metre composites via an on-rig cyclone and splitter assembly and then submitted for assaying.  After logging, the drill core was sawn half core and submitted for assaying, with the sample lengths constrained by geology, alteration or structural boundaries with lengths varying from 0.4m to 1.0m.

Gold analysis of the samples was undertaken using a combination of 500g Pulverise and Leach (PAL), Fire Assay (20 - 50g charges), Aqua Regia and 1kg LeachWell. Industry standard reference material and blanks were utilised to check on laboratory assay quality control, although no reliable QA/QC data was located for the sampling completed prior to Alacer.

Assays were composited to 1 metre lengths and assessed for appropriate top-cuts.  For Vine, the 550 domain was assigned a top-cut of 250g/t gold with a top-cut of 20g/t gold assigned to the samples in the 650 domain.  For the Fairplay region, a top-cut of 40g/t gold was assigned to the main Fairplay domains, 25g/t gold for the Fairplay East domains and 60g/t gold for the Fairplay North domains.  For the three deposits at Lake Cowan (Josephine, Napolean and Louis) a top-cut of 15g/t gold was applied.  All top-cuts were based on composited drillhole data.

As a significant proportion of these deposits are situated near the surface, various bulk densities were applied based on the degree of weathering and the host rock type.  For the lodes contained within completely weathered material, a bulk density of 1.6g/cm3 was applied, for the transitional saprock zone a bulk density of 2.2g/cm3 was applied and for fresh rock a bulk density of 2.85g/cm3 was applied.  A bulk density of 2.7g/cm3 was applied to the quartz-rich domains at Vine.  Bulk density testwork at Vine and Fairplay confirmed the validity of these bulk densities for the various zones in the weathering profile as well as the fresh rock.

The grade estimation method varied between the three deposits depending on the drill density and style of mineralization.  At Vine, a rolling average (ID) method was adopted for the nuggetty gold distribution of the 550 lode, with an ID2 method utilised for the remaining Vine mineralized domains.  At Fairplay an ID2 interpolation method was used for all the domains.  The Lake Cowan resource estimate utilised a mixture of ID2 and Ordinary Kriging for the various lodes.  Parent block sizes were set at 10m *, 10m (y) and 10m (z) for all the resources at Fairplay and Lake Cowan, with the minimum sub-cell size set at 1.0m *, 1.0m (y) and 0.5m (z).  For Vine the parent block sizes were set at 5m *, 5m (y) and 5m (z), with the minimum sub-cell size set at 1.0m *, 1.0m (y) and 1,0m (z).

A lower cut-off grade of 0.8g/t gold was applied to the domains at Lake Cowan whereas a 0.5g/t gold lower cut-off grade was applied to the Vine and Fairplay resources to reflect likely mining, haulage and processing scenarios.

The resource estimate has been classified based on data density, data quality, confidence in the geological interpretation and confidence in the estimation.

Resource estimates for the Higginsville Paleaochannels, Pipeline, Two Boys and 'Other' resources in Table 1 remained unchanged.

Cautionary Statements

Certain statements contained in this report constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this report and other matters identified in Alacer's public filings, Alacer's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to proposed exploration, communications with local stakeholders and community relations, status of negotiations of joint ventures, commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, timing of studies and analysis, the timing of construction of the proposed mines and process facilities, capital and operating expenditures, economic conditions, availability of sufficient financing, exploration plans and any and all other timing, exploration, development, operational, financial, economic, legal, social, regulatory and political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other Alacer filings, and include exploration results and the ability to explore, the ultimate determination of mineral reserves, availability and final receipt of required approvals, titles, licenses and permits, sufficient working capital to develop and operate the mines, access to adequate services and supplies, commodity prices, ability to meet production targets, foreign currency exchange rates, interest rates, access to capital markets and associated cost of funds, availability of a qualified work force, ability to negotiate, finalize and execute relevant agreements, lack of social opposition to the mines, lack of legal challenges with respect to the property or the Company and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Alacer filings at [ www.sedar.com ] and other unforeseen events or circumstances. Other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.