Trillion Initiates Major Expansion At Ndarama.KANATA, Ontario--(BUSINESS WIRE)--May 13, 1998--Trillion Resources Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TLNOF)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TLQ TLQ Temporary Living Quarters TLQ Tags, Limits and Quality ) has completed a pre-feasibility study for its 100% owned Ndarama Mine project at Kwekwe Kwekwe, formerly Que Que (both: kwā`kwā`), city (1992 pop. 75,425), central Zimbabwe, founded 1900. It is a gold-mining center and the focal point of Zimbabwe's iron and steel industry. , in central Zimbabwe Zimbabwe, ruined city, Zimbabwe Zimbabwe (zĭmbäb`wā) [Bantu,=stone houses], ruined city, SE Zimbabwe, near Fort Victoria. It was discovered by European explorers c. . The study, which was prepared by members of the Trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. Board of Directors, with the Company's geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. , engineering and mine production staff, details a 10-year mine expansion plan to be undertaken in two phases. The expansion program is based on an updated "gold reserve-resource" estimate for the Ndarama property, as outlined in the following table. The resource estimate has been calculated from the results of 50,000 metres of drilling over the last 18 months. A gold price of $300 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. is being used for planning purposes. -0-
NDARAMA PROPERTY GOLD RESERVE / RESOURCE ESTIMATE
Mine Reserves Resource
Proven/Probable Indicated/Inferred
Tonnes g/T Ounces(1) Tonnes g/T Ounces(1)
===================================================================
Ford Pit 4,600,000 2.0 298,740 3,990,000 1.6 206,650
Ndarama-Futi 430,000 8.0 109,920 2,330,000 7.0 524,560
Broomstock 690,000 4.3 95,160 430,000 4.4 61,470
Taba-Mali 45,000 5.8 8,400 495,000 6.1 97,000
TOTAL 5,765,000 2.8 512,220 7,245,000 3.8 889,680
Total
Mine Tonnes g/T Ounces(1)
Ford Pit 8,590,000 1.8 505,400
Ndarama-Futi 2,760,000 7.2 634,470
Broomstock 1,120,000 4.4 156,640
Taba-Mali 540,000 6.1 105,390
TOTAL 13,010,000 3.4 1,401,900
(1) 1 Troy ounce Au = 31.104 grams
g/T = grams per tonne
Phase I, which is already under way and due for completion in
October 1998, will double mine production to 30,000 ounces per year.
Capital costs are $4.5 million and cash operating costs are
projected to be $210 per ounce, resulting in a payback period of 2
years. The key components of Phase I are:
- Doubling underground production to 200 tonnes per day from the
Ndarama -- Futi Vein System and commensurate upgrade of the
Ndarama Mill.
- Increasing production at the Ford Open Pit from 700 tonnes to 850
tonnes per day, along with the installation of a large jaw
crusher and conveyor system to increase capacity at the
Broomstock Mill.
Phase II will increase total gold production to over 80,000
ounces per year and will take 2 years to complete once development
commences. Capital costs are forecast to be $26.5 million. Operating
costs for the entire Ndarama production will decrease to under $200
per ounce, and the payback period will be less than 3 years at a
$300 per ounce gold price. The major elements of this phase are:
- Conversion of the Broomstock Mill to a 1000 tpd refractory
sulphide plant by installation of a flotation circuit and an 80
tonnes per day bio-leach plant to treat the refractory
concentrate. Ore from Ndarama, Futi and Taba-Mali reefs, plus the
Broomstock banded iron formation sulphide deposit, will feed this
plant.
- Construction of a new conventional 1500 tpd crushing, grinding
and leaching plant to process ore from the Ford Pit.
The 10-year mine development plan for Ndarama conservatively
projects recovery of about 800,000 ounces of gold to be produced from
4 main areas as outlined below.
Project Tonnes Grade (grams/Tonne) Au Ounces(1)
===========================================================================
Ford Open Pit 4,600,000 2.00 298,750
Ndarama -- Futi 4,580,000 7.30 284,450
Broomstock 980,000 4.10 128,650
Taba -- Mali 510,000 6.10 99,600
============================================================================
821,450
(1) 1 Troy Ounce = 31.104 grams
-0- Based on the known reserve/resource estimate of 1.4 million ounces, as well as the considerable exploration potential remaining at Ndarama, management is confident of extending mining well beyond the year 2007 used in this 10 year development plan. Development at Ndarama is proceeding according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the schedule that Trillion established at the time of its 20% acquisition in September September: see month. 1996. The completion of Phase 1 will mark a major milestone for Trillion as the establishment of a solid production base and positive cash flow at Ndarama will complete the transformation of the corporation from an exploration to a production company. For more information, please visit our web page at www.trillion-resources.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 concerning the company's planned development program for the Ndarama Mine. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, such important factors as risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the interpretation of drill results, the geology geology, science of the earth's history, composition, and structure, and the associated processes. It draws upon chemistry, biology, physics, astronomy, and mathematics (notably statistics) for support of its formulations. , grade and continuity of mineral deposits, recovery, accidents, equipment delivery schedules, breakdowns, labour disputes or other unanticipated difficulties with, or interruptions, in production, unexpected costs and expenses and other risks and uncertainties, including those described in the company's Annual Report on Form 20-F for the fiscal year ended June 30, 1997. CONTACT: Trillion Resources Ltd. Michael Halvorson, 403/414-0809 David Chaplin, 613/591-8555 |
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