Barsele Announces an Updated Mineral Resource Estimate, with 1,427,000 Inferred Gold Ounces and 193,000 Indicated Gold Ounces.
February 26, 2018 A Belcarra Group Company
Barsele Announces an Updated Mineral Resource Estimate, with 1,427,000 Inferred
Gold Ounces and 193,000 Indicated Gold Ounces.
• The Mineral Resource Estimate is based on 100 percent underground extraction criteria
• Twelve percent of the ounces are classified as Indicated Resources
• Higher quality underground Mineral Resources at higher gold grades add confidence
Vancouver, BC – Barsele Minerals Corp. – (TSX-V: BME) (“Barsele”) is pleased to report that an independently verified
mineral resource estimate has been completed for the purposes of the Company on t he Barsele Gold Project in
Västerbottens Län, northern Sweden (the “Barsele Project”). The study concludes that drilling to date along the Avan –
Central–Skiråsen gold zones at a 1.75 g/t gold cut-off has outlined an Inferred Resource of 15,279,000 tonnes grading 2.91
g/t gold (1,427,000 ounces of contained gold ) and an Indicated Resource of 2,399,000 tonne s grading 2.50 g/t gold
(193,000 ounces of contained gold).
Inferred Mineral Resource Estimate
(Underground Resources)
Indicated Mineral Resource Estimate
(Underground Resources)
Gold Cut-off
Grade (g/t)
Tonnage
(metric)
Gold Grade
(g/t)
Contained
Ounces
Gold Cut-off
Grade (g/t)
Tonnage
(metric)
Gold Grade
(g/t)
Contained
Ounces
4.00 3,286,000 3.88 410,000 4.00 171,000 4.79 26,000
3.00 4,180,000 4.74 637,000 3.00 420,000 4.09 55,000
2.00 11,396,000 3.26 1,194,000 2.00 1,637,000 2.80 147,000
1.90 12,766,000 3.12 1,280,000 1.90 1,910,000 2.68 164,000
1.80 14,405,000 2.97 1,377,000 1.80 2,220,000 2.56 183,000
1.75 15,279,000 2.91 1,427,000 1.75 2,399,000 2.50 193,000
1.70 16,253,000 2.83 1,481,000 1.70 2,605,000 2.44 204,000
1.60 18,389,000 2.70 1,594,000 1.60 3,097,000 2.31 231,000
1.50 20,647,000 2.57 1,707,000 1.50 3,718,000 2.19 261,000
1.40 23,136,000 2.45 1,823,000 1.40 4,510,000 2.06 298,000
1.30 25,884,000 2.33 1,942,000 1.30 5,356,000 1.95 335,000
1.20 28,862,000 2.22 2,062,000 1.20 6,336,000 1.84 374,000
Base case mineral resources highlighted in bold within sensitivity analysis charts.
Mineral Resource Estimate Footnotes:
1. The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by NI 43‑101, are Pierre -Luc Richard, P.Geo., M.Sc. and Carl
Pelletier, P.Geo., B.Sc, both from InnovExplo Inc., and the effective date of the Estimate is February 15, 2018.
2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability. While the results are presented undiluted and
in situ, the reported mineral resources are considered to have reasonable prospects for economic extraction.
3. The entire resource is presented as Underground Potential. Underground resource estimation is reported at 1.75 g/t Au cut-off. The cut-off calculation
is based on following assumptions: Mining cost = US$45.00; Processing cost = US$15.00; General and Administration= US$8.00; Refining and Selling
Costs = US$10.00; Gold price: US$1,300 ( 3-year trailing average); and Metallurgical Recovery = 92.6%. Cut -off grades will have to be re -evaluated in
light of future prevailing market conditions (metal prices, exchange rate and mining cost, etc.).
4. For sensitivities purposes, the resources were also compiled at cut-off grades of 1.20, 1.30, 1.40, 1.50, 1.60, 1.70, 1.75, 1.80, 1.90, 2.00, 3.00, and 4.00
g/t Au.
5. The Mineral Resources presented herein are categorized as Indicated and Inferred. The Inferred category is only defined withi n the areas where the
drill spacing is less than 100m. The Indicated category is only defined within the areas where the drill spacing is less than 25m. Clipping boundaries
were used to define classification based on those criteria. The quantity and grade of reported Inferred Resources in this Mineral Resource Estimate are
uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured, and it is uncertain if further
exploration will result in upgrading them to these categories.
6. The resource was estimated using Geovia GEMS 6.8 . The estimate is based on 269 surface diamond drill holes (99,343m). With rare local exceptions
having no material impact on the resource, a minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed, or
a value of zero when not assayed. The estimate includes one (1) low -grade gold-bearing mineralized envelope encompassing 47 higher -grade gold-
bearing zones.
7. High grade capping was done on composite data and established on a per corridor basis for gold (Au g/t): Low Grade Mineralized envelope = 8; high-
grade gold bearing zones: Skirasen = 45; Central = 40; Avan = 15). Capping grade selection is supported by statistical analysis.
8. Density values were applied based on lithology. All mineral zones were attributed 2.73g/cm3).
9. Grade model compositing was done on drill hole intersections falling within the mineralized zones (composite = 2.0 m with adjusted length from 1.0m
to 3.0m if needed).
10. Grade model resource estimation was evaluated from drill holes using an OK interpolation method in a block model (block size = 10 x 3 x 5 m).
11. Calculations used metric units (metres, tonnes and g/t). Metal contents are presented in troy ounces (metric ton x grade / 31.10348).
12. The number of metric tons was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects; rounding followed the
recommendations in NI 43‑101.
13. CIM definitions and guidelines for mineral resources have been followed.
14. InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant
issue not reported in the Technical Report, that could materially affect the Mineral Resource Estimate.
The exploration program at Barsele is being operated by joint venture partner Agnico Eagle Mines Limited – (TSX, NYSE:
AEM) (“Agnico Eagle”). Ownership in the Barsele Project is 55% Agnico Eagle and 45% Barsele. Agnico Eagle can earn an
additional 15% in the Barsele Project through the completion of a pre-feasibility study. There is no cash outlay by Barsele
until pre-feasibility is completed.
“We are extremely pleased with the progress to date at Barsele,” states President, Gary Cope. “This gold deposit continues
to evolve, supported by the new updated Mineral Resource Estimate, that only focuses on the underground component of
the Avan–Central–Skiråsen zones. These results indicate a significant step forward for the project, given the higher grades
and contained gold ounces. We continue to look forward to the advancement of the Barsele Project, specifically the recent
discovery at Risberget, located 3.0 kilometers from the ultimate drilling at Skiråsen; where the positive results to date are
not included in the reso urce. The 7.0-kilometer gold-bearing structural system remains open in all directions. Finally, we
would like to thank our joint venture partner Agnico Eagle for their hard work and commitment.”
The mineral resources have been estimated by Pierre-Luc Richard, P. Geo., M.Sc., and Carl Pelletier, P. Geo., B.Sc., both of
InnovExplo Inc., of Val d’Or, Quebec. Both Richard and Pelletier are qualified persons and are independent of both Barsele
and Agnico Eagle, based on the requirements outlined in National Instrument 43-101.
For the Mineral Resource Estimate, the database used by InnovExplo incorporates 672 drill holes. Only 269 drill holes have
been used to produce this Independent Mineral Resource Estimate. The remaining holes were not included for various
reasons (either no confidence in the drill hole collar location, or drill hole orientation, or suspect analytical results, or the
drill holes were outside the coherent resource study area). These 269 drill holes represent a total of 99, 343 metres of
drilling that took place at the Barsele Project from 1989 through October 2017. The deposit model has been created by
Agnico Eagle and that same wireframe model has been accepted as is by InnovExplo Inc.
Various gold-grade capping parameters were applied to the A van–Central–Skiråsen gold zones respectively, with metal
factor reductions as follows (Avan-2.10%), (Central-0.21%), (Skiråsen-2.55%).
A downhole composite length of 2.0 metres was selected. Variography studies were carried out on the gold distribution
within the principal granodiorite gold host as well as within the Avan –Central–Skiråsen gold zones. A three- pass
interpolation approach was used with a minimum of two drill holes being necessary in each case.
In the high-grade domain, Indicated Resources are based on a drill spacing of up to 25.0 meters and Inferred Resources
are based on a drill spacing of up to 100 meters. In the low-grade domain, there are no Indicated Resources and Inferred
Resources are based on a drill spacing of up to 100 meters.
Toward the Mineral Resource classification, a gold price of $US1,300.00 is used. Assigned metallurgical recovery is 92.6
percent. Total underground mining costs are estimated at $US45.00 per tonne. Total processing costs are estimated at
$US15.00 per tonne. General and Administrative costs are estimated at $US8.00 per tonne.
Specific Gravity (S.G.) varies with lithogeochemical units with the average value from each unit being used. Assigned S.G.
depending on the rock type varies on average be tween 2.73 and 2.87, with default mineral zones assigned a density of
2.73.
The independent qualified persons for the Mineral Resource Estimate are of the opinion that ongoing drilling will have a
positive impact on grade and tonnage distribution, upgrade parts of the Inferred Resources into Indicated Resources and
potentially increase the overall Mineral Resource of the project.
Much of the technical information in this news release was discussed in preliminary terms during a visit to Val d’Or, Quebec
in November 2017 and a visit to the project site in December of 2017, by the Barsele Minerals Corp., Qualified Person. The
data was discussed with Agnico Eagle and InnovExplo Inc. resource personnel in Val d’Or and with the site management
and technical staff in Sweden. The quality control/quality assurance program at the Barsele Project is described on our
website at http://barseleminerals.com/s/QAQCProcedures-Barsele.asp.
All samples referred to in this news release were tested at independent ALS Laboratories in Romania and Ireland, using
ultra trace level method (ME-MS61)-48 element by using four acid digestion together with ICP-AES and ICP-MS analytical
methods. Gold is tested by fire assay, aqua regia digestion and analysed with an atomic absorption spectroscopy (AAS) or
gravimetric finish depending on grade (Au -AA24 and Au-GRA22). Each method has a lower and upper calibration range
for which results are accurately determined.
About the Barsele Gold Project
The Barsele Project is located on the western end of the Proterozoic “Skellefte Trend”, a prolific volcanogenic massive
sulphide deposits belt, where it intersects with the “Gold Line” in Northern Sweden. Both polymetallic deposits and
intrusive hosted orogenic gold deposits are present in this region and on the property. Current and past producers in the
region include Boliden, Kristineberg, Bjorkdal, Svartliden and Storliden.
Drilling has been focused on verif ying, defining and expanding the mineral resources within and along the Avan, Central
and Skiråsen zones and recently the Risberget Zone.
This gold system remains open in all directions. These structurally -linked mineralized zones occur within granodiorite-
volcanic-sedimentary host rocks that vary in width from 10’s of meters to 500 meters and have been traced over a strike
length exceeding 8.0 kilometers. Gold is generally associated with arsenopyrite and low base metal content, but also
occurs as native metal.
Art Freeze, P.Geo. is the Qualified Person as defined in NI 43 -101 and takes responsibility for the technical disclosure
contained within this news release.
About Barsele Minerals Corp.
Barsele is a Canadian -based junior exploration company managed by the Belcarra Group, comprised of highly qualified
mining professionals. Barsele’s main property is the Barsele Gold Project in Västerbottens Län, Sweden, a joint venture
with Agnico Eagle. InnovExplo Inc., is preparing a formal National Instrument 43-101 Technical Report.
ON BEHALF OF THE BOARD OF DIRECTORS
Gary Cope
President
For further information, please contact Alex Tsakumis, Vice President Corporate Development of Barsele Minerals Corp.
at (604) 687-8566 x 228, email [email protected] or visit our website at www.barseleminerals.com
This News Release may contain forward-looking statements including but not limited to comments regarding the
timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes,
assay results, resource estimates and definitions, timing of changes, etc. Forward-looking statements address future
events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from
those currently anticipated in such statements and Barsele undertakes no obligation to update such statements,
except as required by law.
Neither 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