Feb. 8, 2011 (Filing Services Canada) -- Upper Canada Gold Corporation (UCC - TSX Venture), retained Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) to complete an update of the NI-43-101 mineral resources of the Company's 100% owned Dingman Property.
The mineral resource estimate is reported in Table 1 at a cut-off grade of 0.40 g/t Au. The effective date of this resource estimate is December 21, 2010. Indicated mineral resources are 11.6 million tonnes averaging 0.97 g/t for 361,000 oz contained Au. Inferred mineral resources are 1.7 million tonnes averaging 0.73 g/t for 40,000 oz contained Au. A Technical Report by Scott Wilson RPA will be filed on SEDAR.
TABLE 1 MINERAL RESOURCE ESTIMATE
DECEMBER 21, 2010
Upper Canada Gold Corporation - Dingman Project
-------------------------------------------------------------------
Classification Cut-off Grade Tonnes Grade Contained Au
g/t Au Millions g/t Au (000s oz)
-------------------------------------------------------------------
Indicated 0.40 11.6 0.97 361
Inferred 0.40 1.7 0.73 40
-------------------------------------------------------------------
Notes:
1. CIM Definition Standards were followed for Mineral Resources.
2. Mineral Resources are estimated at a pit discard cut-off grade of 0.4 g/t Au.
3. Mineral Resources are estimated using a gold price of US$1,200 per ounce
4. High assays are cut to 30 g/t Au.
5. Bulk density of 2.71 t/m3 was used.
6. Numbers may not add due to rounding.
In order to comply with the CIM Definition Standards requirement that a mineral resource has reasonable prospects for economic extraction, Scott Wilson RPA used a preliminary Whittle pit shell to constrain the resource estimate. Gold mineralization at similar grades exists lateral to and below the preliminary pit shell but is not considered to meet the Mineral Resource requirement of "reasonable prospects for economic extraction" at a gold price of US$1,200 and other assumed pit parameters. Previous mineral resource estimates were not constrained by a preliminary pit shell.
The Indicated Resource has increased approximately 31% as a result of the 2010 Upper Canada drilling to 11.6 million tonnes at 0.97 g/t Au (361,000 ounces) from 8.8 million tonnes at 0.97 g/t Au (275,000 ounces) in the Shaft & Tunnel estimate (Laakso 2009). Some of the previous Inferred Resource has been converted to Indicated Resource by the Upper Canada drilling and the remainder is outside of the preliminary Whittle pit shell that Scott Wilson RPA used to constrain the mineral resource. A significant portion of the 2009 Shaft & Tunnel Inferred Resource is greater than 400 m below surface. In the opinion of Scott Wilson RPA, this deeper mineralization does not qualify as resource because drill holes are too widely spaced and the grades are low.
In addition to the Mineral Resources, Scott Wilson RPA estimates an exploration target beyond the mineral resources on the Dingman Property of 8 million to 14 million tonnes at an average grade of 0.8 g/t to 1.0 g/t Au with potential for 200,000 to 450,000 contained ounces of gold. The estimated tonnage and grade ranges of the exploration target are conceptual in nature, there has been insufficient exploration to define mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Upper Canada drilled 24 core holes totaling 6,556 m in 2010. The updated estimate used the 2010 Upper Canada drill holes as well as some 88 core holes drilled by previous property holders and results of previous channel sampling. The drill core is stored on a secure Ontario Ministry of Northern Development, Mines and Forestry site near Tweed, Ontario.
Scott Wilson RPA composited the drill hole and channel sampling assays into 2 m composites and examined basic statistics. A capping level of 30 g/t Au was selected which is in keeping with the capping level used in the previous two estimates. Scott Wilson RPA used ordinary kriging to interpolate gold grades into 10 m by 5 m by 10 m blocks with the long axes aligned vertically and along the east-northeast trend of the host granitic body.
Scott Wilson RPA recommends that a preliminary assessment be carried out to assess the potential economics of mining the Dingman gold deposit by open pit. The potential for by-product production of aggregate from waste rock from the potential open pit gold mining operation should be examined during the preliminary assessment.
Tom Sills, COO, commented: "We are pleased that the mineral resource estimate has been defined utilizing reasonable economic assumptions in developing the preliminary Whittle pit shell. This updated resource estimate represents a significant increase in the Indicated Resources on the Dingman Property."
Michael Churchill, President & CEO, noted: "The end result of our most recent drilling, which is confirmed in our updated NI-43-101 Report, is the Dingman Property has been developed to the extent that it now represents the largest gold occurrence in southern Ontario."
As input to the preliminary assessment, Upper Canada management will be pursuing options for base line studies, permitting and transportation of concentrates to determine the optimum time frame and costs associated with a potential production decision. The benefit of drilling to incorporate additional resources into a preliminary pit shell will also be assessed.
The mineral resource estimate for the Dingman Property has been prepared by William E. Roscoe, P.Eng., of Scott Wilson RPA, an independent qualified person who has also reviewed and approved the contents of this release.
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.
FOR FURTHER INFORMATION CONTACT:
Michael Churchill - President
Tel: 647-977-9267, ext. 101
Thomas (Tom) Sills ? COO
Tel: 647-977-9267, ext. 102
Website: www.uppercanadagold.com
Cautionary Note Regarding Forward Looking Statements:
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization, resources and expansion of resources, recoveries, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with mine permitting, metallurgy, development, construction and mining operations, the uncertainty of the determination of mineable ounces of gold and copper in pounds or other minerals in pounds, or the future profitability of the Company's projects.
Source: Upper Canada Gold Corporation (TSX-V: UCC) http://www.uppercanadagold.com
Maximum News Dissemination by Filing Services Canada Inc. *
www.usetdas.com