Kimber Resources Inc. (TSX:KBR)
VANCOUVER, Sept. 6 /CNW/ - Kimber is pleased to report the latest
resource estimate on its Carmen deposit, Estimate "L", prepared under the
supervision of External Qualified Person, Mr. A.A. Burgoyne, P.Eng of Burgoyne
Geological Inc.
The table below shows the Measured & Indicated resource categories in the
Carmen deposit to now approach one million gold-equivalent ounces, a
significant increase in these all-important categories. Drilling on the Carmen
deposit continues to be directed at locating additional resources and
converting those in the Inferred category (also listed below) to Measured &
Indicated.
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Carmen Deposit Estimate "L"
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Tonnes Gold Silver Gold Gold, Silver, Gold
(g/t) (g/t) Eq.(x) ounces ounces Eq.(x)
(g/t) ounces
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Measured &
Indicated 19,529,000 0.87 57 1.54 545,000 35,921,000 967,600
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Inferred 7,421,000 1.00 39 1.46 238,000 9,366,000 348,200
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Veta Minitas resource estimate of November 2004
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Measured &
Indicated 900,000 0.71 91 1.78 20,000 2,600,000 50,200
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Inferred 400,000 0.37 99 1.53 4,500 840,000 14,400
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(x) Gold-equivalent assumes equivalence of 85 units of silver to one unit
of gold.
Veta Minitas
The resource estimate on the partially-drilled Veta Minitas structure is
unchanged but is included to show all estimates on the Monterde property to
date.
Nature of Estimate
This is a polygonal estimate using all (273) reverse circulation holes
for which results were available by August 18, 2005. Boundaries to the
mineralized body, incorporating the revised understanding of controls to
mineralization, were drawn by hand on each of 25 vertical sections 25 metres
apart. Polygons were then drawn to outline cut-off grades at 0.3 g/t gold and
35 g/t silver.
Increase in Measured & Indicated
Since Estimate "K" in September 2004, a further 211,500 gold-equivalent
ounces in the Measured & Indicated categories have been added, an increase of
63%, some of it from upgrading of Inferred resources, some of it from new
zones. The percentage of the total gold-equivalent resource (Measured +
Indicated + Inferred) belonging to the first two categories increased from 62%
to 74%, (a 9% increase for gold and a 15% increase for silver).
Grades
Gold grades are 7% lower than in Estimate "K", principally because a
lower gold cut-off was used (0.3 g/t instead of 0.5 g/t), together with 35 g/t
silver. The lower gold cut-off is thought to be more realistic, given present
prices and expected recoveries. Silver grades are lower by 31%, because much
of the recent drilling has been beyond the silver-rich portion of the deposit.
Bulk Density
The reverse circulation holes drilled since Estimate "K" were accompanied
by core holes drilled for geotechnical, metallurgical, and bulk-density
measurements. The results of 90 bulk density measurements average 2.30 tonnes
per cubic metre ("t/m(3)"), in contrast to the 2.65 t/m(3) assumed for
previous estimates. Estimate "L" incorporates the tonnage reduction which
follows from the lower bulk density. If Estimates "K" and "L" are compared on
a constant bulk density basis, the Measured & Indicated categories have been
increased by 401,300 gold-equivalent ounces (a 71% increase). Total resources
(all categories, including Inferred) have been increased by 44%.
Gold per Share
While the number of shares issued increased from 28,878,382 in September
2004 to 33,732,825 in August 2005 (the time of the last drilling used for the
estimate, but before the recently-announced financing), the amount of gold per
issued share increased by 6% from 1.199 grams to 1.273 grams.
Cost of Resource Ounces
The current cost of resource ounces (using all property-related costs,
including purchase payments applied to all resource categories, including
Inferred) is less than US$7.50 per gold-equivalent ounce.
Potential of the Monterde Property (28,000 hectares)
Although a substantial increase in the value of the Carmen deposit is
likely to follow from further enlargement and from upgrading resources to
reserves (expected from the prefeasibility study), the greatest potential for
the Monterde property lies in the exploration targets, two of which (the
Carotare and El Orito Norte) have already been identified.
Next Estimate
The next estimate will apply block model methods to the same geologic
interpretation and the same boundaries. Drilling will continue on the Carmen
deposit to explore its limits to the east and south and to convert more of the
Inferred resources to Measured and Indicated.
Robert Longe, P.Eng.
President & CEO
Mr. Alan Hitchborn, B.Sc., Vice President Development, manages the field
program of drilling and trenching on the Monterde project. Mr. J.B. Richards,
P.Eng., Vice President Engineering, and designated Qualified Person (Q.P.) for
the project is responsible for quality control and has verified the data
disclosed. He has determined that the laboratory reports matched the drill
sample logs and that the quality control assays fall within reasonable limits.
QA./QC procedures incorporate blanks and duplicates inserted at the drill site
and standards inserted after sample preparation. Drilling is by reverse
circulation. A one eighth split of each two-metre section of the drill hole,
weighing approximately 6 kg is processed by ALS Chemex at its preparation
laboratory in Hermosillo, Mexico. Pulps are analysed by ALS Chemex at its
laboratory in North Vancouver, British Columbia, using 50 gram subsamples,
fire assay with an AA finish for gold and four-acid digestion and ICP finish
for silver from a 0.4 gram subsample. Highgrade gold or silver intervals are
re-assayed by fire assay with gravimetric finish.
Statements in this release may be viewed as forward-looking statements.
Such statements involve risks and uncertainties that could cause actual
results to differ materially from those projected. There are no assurances the
Company can fulfill such forward-looking statements and the Company undertakes
no obligation to update such statements. Such forward-looking statements are
only predictions; actual events or results may differ materially as a result
of risks facing the Company, some of which are beyond the Company's control.
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