Perth, Feb 19, 2008 AEST (ABN Newswire) - Emerging gold producer Adamus Resources (ASX: ADU)(TSX-V: ADU) has delivered a substantial increase in resources at its Southern Ashanti Gold Project (SAGP) in Ghana.
The resource upgrade features a 40% increase in measured and indicated gold resources, and takes Adamus' SAGP resource profile to:
28.4Mt @ 1.78 g/t for 1,630,000 oz gold (Measured and Indicated)
and
6.43Mt @ 1.64 g/t for 340,000 oz gold (Inferred)
The SAGP resource was recalculated independently to incorporate information from the 2007 program of RC and diamond drilling.
Adamus CEO Mark Bojanjac said successful infill drilling had significantly increased resource confidence for the project, and provided a further boost for the SAGP.
"These results represent another significant increase in level of drill-proven confidence in the SAGP mineral resources, and reflect improved project economics driven by a substantial increase in the prevailing gold price," Mr Bojanjac said.
"With further scope to expand our resource base we are now increasing our future ounce targets."
Mr Bojanjac said an independent Ore Reserve calculation was currently underway, to reflect prevailing revenue and cost parameters.
"The gold price has risen over US$250 per oz since the announcement of our initial Feasibility Study results only eight months ago. Adamus is expecting this to significantly enhance the already strong project economics," he said.
"Measured and Indicated mineral resource categories currently comprise almost 85% of the total calculated mineral resource base, with more than 1.1 million ounces being in the Measured Resource category".
"Successful in-fill drilling converted much of the existing inferred material into the higher confidence Measured and Indicated status".
"The extremely high level of conversion demonstrates the robust nature of the orebody and should increase the Ore Reserve estimate as these resource categories ultimately lead to Proven and Probable Reserves," Mr Bojanjac said.
Table 1: Summary of Southern Ashanti Gold Project Resource Estimate @0.8g/t Au COG
Deposit Category Tonnage Grade Contained (Mt) Au(g/t) Ounces Au----------------------------------------------------------------------Combined Salman & Anwia Measured 18.6 1.84 1,100,000Combined Salman & Anwia Indicated 9.84 1.67 530,000Total Southern Ashanti Measured &Gold Project Indicated 28.4 1.78 1,630,000Combined Salman & Anwia Inferred 6.43 1.64 340,000
Continuing Exploration
Adamus believes there is considerable scope to add accretively to the SAGP mineral resources at both the Salman and Anwia projects, and from a number of identified high-potential additional deposits.
The majority of current mineral resources lie within 80 metres of the surface, and are predominantly open with depth, which supports the significant potential to increase resources with deeper drilling.
Adamus' ongoing exploration efforts will include a focus on deeper targets at Salman, and closer spaced drilling at Akanko at the northern end of Salman. The Anwia deposit in particular is scheduled for a detailed specialist review of structural geology.
The Company is also continuing its exploration and planned upgrade of recently discovered and extended deposits at Bokrobo, Aliva, and Avrebo. Drilling at these deposits is designed to add additional mineral resources, and with further in-fill drilling, more Ore Reserve ounces in the near term.
To target these high priority deposits, a new program of RC and diamond core drilling commenced the first week of February as part of the 2008 exploration campaign.
Upgraded Reserve Calculation
Following the mineral resource upgrade, Adamus expects to deliver an upgrade in the Ore Reserve estimate for the SAGP during this current quarter.
The Company has conducted a detailed review of the capital and operating costs used in the Company's positive feasibility study, which was released last June.
The updated costing, together with the new resource and a gold price more reflective of the current market, will be used to independently calculate an upgraded Ore Reserve.
The previous Reserve calculated at US$575 per oz yielded a very favourable result. Since that time there has been a large upgrade of previously excluded inferred mineralisation into the resource base, and combined with the significantly improved gold price, this is expected to auger well for the new Ore Reserve upgrade and overall project economics.
An updated feasibility study with the new Ore Reserve is well-underway with release scheduled this quarter.
"The initial ore reserve estimate was estimated using a US$575/oz gold price which yielded a positive feasibility study result. With gold now over US$900/oz we anticipate compelling development economics," Mr Bojanjac said.
Contact
Mark Bojanjac
Managing Director/CEO
TEl: +61-8-9322-5943
email: mark@adamusresources.com.au
Mark Connelly -
Executive Director/COO
tel: +61-8-9322-5943
email: mark.connelly@adamusresources.com.au
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