No.24-1 BMM: TSX-V
In a report dated
1997 Classification | Cutoff Gold | Tons | Gold Grade | Gold Ounces |
"Indicated" | 0.015 | 7,445,000 | 0.045 | 335,000 |
"Inferred" | 0.015 | 935,000 | 0.045 | 42,000 |
Total "Indicated and | 0.015 | 8,380,000 | 0.045 | 377,000 |
Black Mammoth is not treating the historical estimates as current mineral resources, and a qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. Although the historical resources were classified using the terms Indicated and Inferred, it is not known if the 1997 classifications varied from, or were the same as the categories set out in sections 1.2 and 1.3 of NI 43-101. A qualified person has not yet determined what work needs to be done to upgrade or verify the historical estimates as current mineral resources or mineral reserves. The 1997 estimated gold resources are relevant for historical completeness, but should not be relied on.
The MDA historical resources were estimated using mineral zone boundaries interpreted from a detailed lithological and structural model on 10-foot bench plans and digitized in Surpac software. Gold assays from 320 drill holes were composited to 10ft intervals and extracted as 10-foot bench composites within the mineral zones. Ordinary kriging was done after variogram analysis for low-grade and high-grade domains controlled by the geologic mineral zone boundaries. A minimum of two samples were used to estimate gold grades for individual blocks. No drilling has been conducted on the Property since prior to the completion of the 1997 historical resource estimate. Black Mammoth has possession of the laboratory assay certificates from the assays used for the 1997 estimation and sample pulps from the historical drilling for use in future data verification. MDA estimated potential open pit "Reserves" in the same
Material Type | Gold |
"Oxidized low-grade" | 75 |
"Oxidized mid-grade" | 80 |
"Oxidized high-grade" | 85 |
"Unoxidized low-grade" | 55 |
"Unoxidized mid-grade" | 60 |
"Unoxidized high-grade" | 70 |
Total "Reserves" of 2,953,800 tons with an average grade of 0.060oz Au/Ton and 177,100 contained ounces of gold were estimated with a stripping ratio of 8.5 tons of waste to 1.0 tons of mineralized material to be processed as summarized in Table Z:
1997 MDA Base | Tons | Gold Grade | Gold Ounces |
Oxide | 1,963,200 | 0.061 | 119,800 |
Sulfide | 990,600 | 0.058 | 57,300 |
Total | 2,953,800 | 0.060 | 177,100 |
Strip Ratio | 8.5 : 1 |
Black Mammoth is not treating the historical estimates as current mineral reserves, and a qualified person has not done sufficient work to classify the historical estimates as current mineral reserves. The historical Reserves were classified using categories other than the ones set out in sections 1.2 and 1.3 of NI 43-101, based on modeled oxidation characteristics, but other differences are not known to Black Mammoth. A qualified person has not yet determined what work needs to be done to upgrade or verify the historical Reserves as current mineral reserves. The 1997 estimated gold Reserves are relevant for historical completeness, but should not be relied on.
The estimate of the historical gold mineral "Reserve" is located under and around the 2 small past production pits ("East & West pits"). Other past work include: detailed geologic mapping, geologic cross sections, bench maps, geophysics, geochemistry, metallurgy, multiple Environmental Assessments and a draft Environmental Impact Assessment.
Additional mineralized zones may exist both up-dip and down-dip from identified mineralization, along strike from known mineralization in both directions. High-grade zones may exist down-dip along the
Pursuant to the terms of the Agreement, Black Mammoth has agreed to purchase all of the issued and outstanding common shares of IDA Mining, a non-arm's length
Under the terms of the Option Agreement, IDA Mining may purchase a 100% interest in the
Payment Date | Cash Payment | Status |
Five days from effective | Paid | |
Forty-five days from | Paid | |
- | ||
- | ||
TOTAL: |
In addition to the above, IDA Mining must also cover the Property's annual fees of approximately
There are no royalties, work commitment amounts, finder's fees or share compensation in connection with either the Option Agreement or the Transaction.
The Transaction is subject to the prior approval of the
Land:
The Property consists of 4 patented claims, 31 unpatented
Environmental Topics:
The Property lies within an uninhabited area of the Mojave Desert with sparse vegetation and the East & West pit areas are not visible from
Geology:
Mineralization at the
A late Jurassic porphyritic dacite has intruded the low-angle fault and appears to be spatially and genetically associated with mineralization. Tertiary dacite sills and dikes post-date mineralization and have displaced gold mineralization in several locations. Several northwest-trending faults displace the mineralized zone 50-100 ft. The mineralized zones are elongated in a northeast direction and occur where high-angle northwest-trending step faults cross the primary low-angle shear. These step faults create a thickening of brecciated zones and mineralization.
Unoxidized mineralization consists of quartz, sericite, and pyrite. The highest-grade gold zones are associated with 1% to 5% base metal sulfide minerals such as galena, sphalerite, and chalcopyrite. Oxidized mineralization contains quartz and sericite alteration, and is accompanied by hematite, goethite, jarosite, plumbojarosite, and minor manganese oxide.
Related Party Disclosure:
Black Mammoth has 15,876,871 shares issued and outstanding, 21,666,871 shares fully diluted.
Aside from the proposed acquisition of IDA Mining, the Company has completed a ground gravity survey that is now modeled and interpreted in conjunction with the recent UAV magnetic survey at its 100% owned, 1213 hectare (2997 acre)
An approximate 4 square kilometre area is identified as a hydrothermally altered area. Structural modelling suggests the density of the alteration and its' density contrast relative to the host rock is typical to that of alteration zones present at other
Black Mammoth also has a 100% interest, subject to underlying royalties, in the
Black Mammoth cautions investors to note the potential quantity and grade of the geological target are conceptual in nature. A qualified person has not completed sufficient work to classify the geological target as mineral resources as defined by NI 43-101, and it is uncertain if future exploration will result in the target being delineated as mineral resources.
On behalf of the board,
"Dustin Henderson"
President & CEO
This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the Company's completion of the Transaction and related transactions are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include that the requisite corporate and TSXV for the Transaction may not be obtained; that the Company or IDA Mining, as applicable, may be unable to satisfy any or all closing conditions necessary for the completion of the Transaction; and other risks that are customary to transactions of this nature. Trading in the securities of the Company should be considered highly speculative. All of the Company's public disclosure filings may be accessed via www.sedarplus.ca and readers are urged to review these materials, including the latest technical reports filed with respect to the Company's mineral properties.
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