Sydney, Feb 2, 2009 AEST (ABN Newswire) - Citadel Resource Group Limited (ASX:CGG) is pleased to announce that it has completed an updated estimate of the mineral resources at Jabal Sayid. Jabal Sayid (50%) is the flagship project in Citadel's portfolio of Saudi Arabian gold and base metal projects.
The updated Indicated and Inferred Mineral Resource estimate for copper totals 99 million tonnes and includes 77 Mt at 1.3% Cu, 0.2% Zn (Cu Stockwork), 21 Mt at 0.9% Cu & 1.8% Zn (Cu/Zn Massive Sulphide) and 0.5Mt at 1.6% Cu (oxide Cu). In addition the gossan on Lode 1 contains 1.4Mt at 1.3g/t Au, 15.8g/t Ag, 0.1% Cu (Oxide gold cap).
The copper stockwork mineralisation contained in Lode 2 and Lode 4 at Jabal Sayid is the subject of a feasibility study for a 3.4 Mtpa underground mine. Upgrading the mineral resources at Jabal Sayid has been a focus of drilling activity throughout 2008. Drilling during this period has been carried out primarily to upgrade the confidence in material previously classified in the Inferred Resource category so that it can be classed as Indicated Resource in preparation for conversion to a mining Reserve. This has been achieved with the Indicated resource now comprising 480,000 tonnes of contained copper with only 7,000m of drilling left to complete the DFS.
Total copper resources using a 1% Cu cut-off now comprise 40 million tonnes at 2.3% Cu, for 926,000t contained copper. This is a 29% increase on the previously reported Lode 2 and Lode 4 high grade material defined in the previous resource statement (31Mt @ 2.3%). This was achieved by extending the zones in Lode 2 and Lode 4 and the inclusion of Lode 1 high grade copper resources following exploration success in 2008.
Citadel will be completing a further mineral resource estimate at the conclusion of the infill drilling needed for the DFS. This further resource will also include updates from the exploration success reported after the resource cut-off date of November 2008 and gold and silver credits for Lodes 2 and 4. The resource remains open at depth and along strike at Lodes 1 and 2 and at depth in Lode 4.
Commenting on the Mineral Resource, Inés Scotland CEO of Citadel said:
"I am extremely pleased with this result, especially given drilling was primarily focused on infill drilling for the DFS rather than resource extension. Twelve months after releasing our first Mineral Resource update we have again upgraded total contained copper by over 20% and the higher grade copper core by almost 30%. This is the second of many anticipated upgrades, as Jabal Sayid remains open in most directions.
The DFS continues to progress to schedule and we are nearing the completion of the revised Feasibility Study by the integrated Citadel/SNC Lavalin team. As flagged in our last project update the team continues to achieve material reductions in capex for Jabal Sayid and I look forward to presenting shareholders with the results of the completed study.
MINERAL RESOURCE
Jabal Sayid is a large Volcanic Hosted Massive Sulphide (VHMS) system, extending over 1.5km of strike. The Mineral Resource is contained within three lodes, Lode 1, Lode 2 and Lode 4. It comprises two types of primary mineralisation which are adjacent to each other:
Stockwork mineralisation (copper dominant)
Massive Sulphide (MS) mineralisation (copper-zinc dominant).
Secondary mineralisation includes an Oxide Gold Cap (gold-rich gossan over Lode 1) and Oxide Copper mineralisation over Lode 1 (copper mineralisation in the weathered zone above the sulphide mineralisation in Lode 1).
Citadel is aggressively moving the Jabal Sayid project forward:
- Finalising a feasibility study on the Jabal Sayid copper sulphide deposit.
- Scoping study into early open pit mining of Oxide Gold zones.
- 3 diamond drill rigs are working, 2 on surface, and 1 underground and a second underground rig is currently being commissioned.
- The 3.9km production size decline is fully operational with power, water, ventilation and full road and drilling access.
- Citadel is well funded, with ~$18M on hand following a successful fundraising early this year.
Contact
Citadel Resource Group Limited
Ines Scotland (CEO)
TEL: +61-400-039-664
ines.scotland@citadelrg.com.au
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