New Nadina Announces Receipt of 43-101 Report
The following is a short summary of the report which can be viewed on SEDAR under the Company file and on the Company’s website.
“JDS Energy and Mining Inc. (JDS) was hired by New Nadina Explorations Limited (New Nadina) to provide an independent review of the Silver Queen property, located in Central British Columbia, Canada. The purpose of this report is to establish a historic basis from which to guide the future exploration and development activities at the Silver Queen property from a geologic and economic standpoint.
Any resource information for the Silver Queen property must be considered historic in nature and does not comply with any of the resource categories set out in NI 43-101 and the “CIM Definition of Standards on Mineral Resources and Ore Reserves” dated November 14th, 2004. However, the historic resource is considered relevant because it is indicative of the location, size and grade of the mineralized structures.
Data from historic production and exploration programs has shown to be valuable in locating highly prospective exploration targets. In order to guide the project development, economic considerations were applied by using historic resource data derived from the latest and most complete compilation of exploration and production data and metallurgical test work. There are a relatively small amount of historic resources currently delineated. In addition, there is a high degree of variability related to metallurgical performance between and within veins which will require additional metallurgical testing on the samples from the ultimate resources to be mined. Furthermore, reestablishment of mining parameters will be required.
Ranges of project economics based on metal prices and concentrate marketing success push the exploration focus into two areas for vein development. At historic head grades and metallurgical performance indicated, breakeven economic scenarios would require a mining rate of approximately 500tpd and a total mining reserve of 1.5 million tones at historic grades. Therefore, the majority of ore in this scenario must be newly delineated. Down drip and along strike extensions of No. 3 Vein show the best opportunity for success. Modeling of historic data show that grades trend higher towards that area of the vein and structure has been identified that has enough volume to host the volumes required. Other vein structures within the claim block should be explored simultaneously as they would provide concurrent production and allow higher production rates and therefore lower operating costs. Thicker structures should be targeted for their ability to support higher productivity and lower cost mining.
Significantly higher ore value may result by applying current metal prices and marketing a pyrite concentrate from which precious metal values could be realized. In this case, the required mining reserve to create a breakeven economic scenario would drop to as low as approximately 300,000 tonnes which approaches the size of the historic resource. This economic scenario directs effort to verification and incremental expansion of the historic resource even as new resources are identified. Historically, metallurgy has been shown to be complex for this deposit. However since the bulk of the resource is yet to be defined, and mineralogy in the deposit has been shown to vary between and within the veins themselves, metallurgical testing and marketing analysis should be delayed until resources are identified and can be tested directly.
Maximizing the value of recovered precious metals should be the focus in future design phases. From a marketing perspective, it may be possible to find a current producer that will use the pyrite concentrate as fuel in an autoclave, and pay for the gold and silver A rigorous program of data verification will have to be completed to get the value from the sizeable historic data base, for the purpose of resource estimation. More importantly, as modern NI 43-101 compliant procedures are established and implemented on site, the usefulness of the historic resource will be superseded by current, compliant data and results. As a result of historic information compilation and analysis, as well as application of economic constraints, and results of 2010 drilling, two distinct exploration programs have emerged.
The vein development program, as previously described, targets verification of the historic resource and expansion in areas below the No. 3 Vein South and NG3. Delineation of this resource will require dewatering of the 2590 Decline and drifting approximately 2,000 ft on the No. 3 vein. A second decline may be considered to access the NG3 vein and connect with the above drifting No. 3 Vein South. (ref holes U-89-1, 3, 4, 5, 7, 8).
A Porphyry program is planned based on four holes that intercepted wide sections of quartz-pyrite which has led geologists to speculate that a Cu-Au porphyry system may be present. In order to confirm vein continuity and to identify possible targets at depth, a Titan 24 CDIP survey is recommended, along with alteration mapping and soil geochem.
PROPOSED BUDGET FOR 2011 EXPLORATION
IP Titan 24 geophysics and line cutting and consultant $360,000, 3D GIS model (Geosoft or Vulcan) and data compilation $60,000, Soil sampling – geochem $50,000 Prospecting and alteration mapping (south and east) $50,000, diamond drilling, geologist, sampling (5,000M) $1million for a 2011 Exploration Budget of $1,520,000.
The 2010 exploration program was guided by recommendations from previous reports and historical data. Previously untested areas peripheral to the presently known mineralization were targeted. Compiled historical data along with preliminary economic analysis is being used to identify the most prospective drill targets, and the size and quality of potential resources that may lead to an economically viable project.”
ON BEHALF OF THE BOARD
President and Chief Executive Officer
For further information please visit the website at www.nadina.com or contact Ellen Clements: 1 (800) 856-3966, 1 250 444 1005
“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.”