Barsele Announces an Updated Mineral Resource Estimate, with 2,086,000 Inferred Gold Ounces and 324,000 Indicated Gold Ounces.
February 21, 2019 A Belcarra Group Company
Barsele Announces an Updated Mineral Resource Estimate, with 2,086,000 Inferred
Gold Ounces and 324,000 Indicated Gold Ounces.
• This Mineral Resource Estimate has been prepared using reasonable cut-off grades for pit
constrained, bulk underground and selective underground extraction mining methods.
• Specific extraction methods are used only to establish reasonable cut-off grades for various
portions of the deposit. No Preliminary Economic Analysis, Pre-Feasibility Study or Feasibility Study
has been completed to support economic viability and technical feasibility of exploiting any portion
of the mineral resource, by any particular mining method.
• Thirteen percent of the ounces are classified as Indicated Resources.
Vancouver, BC – Barsele Minerals Corp. – (TSX-V: BME) (“Barsele”) is pleased to report that an independently verified
Mineral Resource Estimate ha s 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 diamond drilling to date along the
Avan–Central–Skiråsen gold zones at a 0.50 g/t gold cut-off for a pit constrained extraction mining method and a 1.50 g/t
gold cut-off for a bulk underground extraction mining method and a 1.80 g/t cut-off for a selective underground extraction
mining method, has in combination, outlined an Inferred Resource of 25,495,000 tonnes grading 2.54 g/t gold (2,086,000
ounces of contained gold ) and an Indicated Resource of 5,578,000 tonnes grading 1.81 g/t gold ( 324,000 ounces of
contained gold).
Mineral Resource Estimate
Indicated Inferred
CUT-OFF
(g/t)
Tonnage
(t*1000)
Gold
(g/t)
Gold
Ounces
Tonnage
(t*1000)
Gold
(g/t)
Gold
Ounces
Pit
Constrained
0.50
3,452
1.32
147,000
1,819
1.59
93,000
Bulk
Underground
1.50
1,442
2.53
117,000
8,759
2.58
728,000
Selective
Underground
1.80
684
2.75
60,000
14,917
2.64
1,265,000
Total 5,578 1.81 324,000 25,495 2.54 2,086,000
Mineral Resource Estimate Footnotes:
1. The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by NI 43‑101, are Harold Brisson, P.Eng. and Carl Pelletier, P.Geo.,
both from InnovExplo Inc., and the effective date of the Mineral Resource Estimate is February 14, 2019.
2. These mineral resources are not mineral reserves, as they do not have demonstrated economic viability.
3. The mineral resource estimate follows current CIM definitions and guidelines for mineral resources.
4. The results are presented undiluted and are considered to have reasonable prospects for eventual economic extraction.
5. The estimate encompasses 61 gold-bearing zones, each defined by individual wireframes with a minimum true thickness of 2.0 metres and using the
grade of the material when assayed, or a value of zero when not assayed. The resource was estimated using Geovia GEMS 6.8.
6. High-grade capping supported by statistical analysis was carried out on assay data and established on a per domain basis for gold (g/t Au): low-grade
mineralized envelope = 5.0 g/t Au, high-grade gold-bearing zones: Skiråsen = 30.0 g/t Au, Central = 30.0 to 40.0 g/t Au, Avan = 20.0 g/t Au.
7. Grade interpolation was performed by Ordinary Kriging on 2.0 metres composites from drill-hole intersections falling within the mineralized zones in a
block model using a block size of 10.0 metres by 3.0 metres by 5.0 metres.
8. Density values were applied based on lithology. All mineralized zones were assigned 2.73 g/cm3.
9. The Mineral Resource Estimate is categorized as I ndicated and Inferred. The Inferred mineral resource category is only defined with a minimum of 2
drill-holes, within the areas where the drill spacing is less than 100 metres and shows reasonable geological and grade continuity. The Indicated mineral
resource category is only defined with a minimum of 2 drill-holes, within the areas where the drill spacing is less than 25 metres. Clipping boundaries
were used for classification based on those criteria.
10. The Mineral Resource Estimate is reported for three cut-off grades depending on the nature and depth of the mineral resource : 1) a pit constrained
extraction mining method at a cut- off grade of 0.50 g/t Au, 2) a bulk underground extraction mining method at a cut-off grade of 1.50 g/t Au (Bulk
Zones), and 3) a selective underground extraction mining method at a cut- off grade of 1.80 g /t Au ( High Grade Zones). The cut-off grades were
calculated using the following parameters: mining cost = $US 35.00 to $US 45.00; processing cost = $US 15.00; G&A = $US 5.00 to $US 8.00; refining
and selling costs = $US 10.00; gold price = $US 1,300.00; and metallurgical recovery = 92.6 percent. The cut-off grades should be re-evaluated in light
of future prevailing market conditions (metal prices, exchange rates, mining costs etc.).
11. The number of metric tonnes were rounded to the nearest thousand, following the recommendations in NI 43-101 and any discrepancies in the totals
are due to rounding effects. The metal contents are presented in troy ounces (tonnes x grade / 31.10348).
12. InnovExplo Inc. 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 continue to be pleased with exploration successes at Barsele,” states President, Gary Cope. “ The updated 2019
Mineral Resource Estimate for the Avan–Central–Skiråsen zones, now incorporates cut-off grades for pit constrained,
bulk underground and selective underground extraction mining methods, depending on the nature and depth of the
mineral resource. The 2018 exploration and resource modeling has resulted in a significant upgrade in gold ounces ,
while maintaining compelling gold grades . The 8.0-kilometer gold -bearing structural corridor remains open in all
directions for future exploration.”
The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by NI 43‑101, are Harold Brisson,
P.Eng. and Carl Pelletier, P.Geo., both from InnovExplo Inc . Both Brisson and Pelletier are qualified persons an d are
independent of both Barsele and Agnico Eagle, based on the requirements outlined in N I 43-101. The reported mineral
resources are not mineral reserves, as they do not have demonstrated economic viability. The effective date of the Mineral
Resource Estimate is February 14, 2019.
The deposit model has been created by Agnico Eagle and that same wireframe model has been accepted as is by
InnovExplo Inc. The mineral resource estimate follows current CIM definitions and guidelines for mineral resources. The
results are presented undiluted and are considered to have reasonable prospects for eventual economic extraction.
The resource estimate encompasses 61 gold-bearing zones, each defined by individual wireframes, with a minimum true
thickness of 2.0 metres and using the grade of the material when assayed , or a value of zero when not assayed. The
resource was estimated using Geovia GEMS 6.8.
High-grade capping supported by statistical analysis was carried out on assay data and established on a per domain basis
for gold (g/t Au): low -grade mineralized envelope = 5.0 g/t Au ; high-grade gold-bearing zones: Skiråsen = 30.0 g/t Au,
Central = 30.0 to 40.0 g/t Au and Avan = 20.0 g/t Au.
Grade interpolation was performed by Ordinary Kriging on 2.0 metre s composites from drill- hole intersections falling
within the mineralized zones in a block model , using a block size of 10.0 metres by 3.0 metres by 5.0 metres. Density
values were applied based on lithology. All mineralized zones were assigned a density of 2.73 g/cm3.
The Mineral Resource Estimate is categorized as Indicated and Inferred. The Inferred mineral resource category is only
defined with a minimum of 2 drill- holes, with in the areas where the drill spacing is less than 100 metres and shows
reasonable geological and grade continuity. The Indicated mineral resource category is only defined with a minimum of 2
drill-holes, within the areas where the drill spacing is less than 25 metres. Clipping boundaries were used for classification
based on those criteria.
The Mineral Resource Estimate is reported for three cut -off grades depending on the nature and depth of the mineral
resource: 1) a pit constrained extraction mining method at a cut-off grade of 0.50 g/t Au, 2) a bulk underground extraction
mining method at a cut-off grade of 1.50 g/t Au (Bulk Zones), and 3) a selective underground extraction mining method at
a cut-off grade of 1.80 g/t Au (High Grade Zones).
The cut-off grades were calculated using the following parameters: mining cost = $US 35.00 to $US 45.00; processing cost
= $US 15.00; G&A = $ US 5.00 to $ US 8.00; refining and selling costs = $ US 10.00; gold price = $ US 1,300.00; and
metallurgical recovery = 92.6 percent. The cut-off grades should be re -evaluated in light of future prevailing market
conditions (metal prices, exchange rates, mining costs etc.).
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.
Technical information in this news release was discussed during a d ue diligence visit to the project site October 29-31,
2018, by Carl Pelletier of InnovExplo and the Barsele Minerals Corp., Qualified Person and Agnico Eagle site management
and technical staff. Subsequently meetings were carried out between Agnico Eagle and InnovExplo Inc. resource personnel
in Val d’Or, Quebec.
Samples referred to in this news release were tested at independent ALS Laboratories in Romania and Ireland, using ultra
trace level met hod (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. The quality control/quality assurance program at the Barsele Project is
described on the Company’s website at http://barseleminerals.com/s/QAQCProcedures-Barsele.asp.
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, that 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.
The Avan–Central–Skiråsen gold deposit 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
encountered over a distance 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 NI 43-101 Technical Report.
ON BEHALF OF THE BOARD OF DIRECTORS
Gary Cope
President
For further information, please contact 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, receipt of property titles, potential mineral recovery processes, 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