Coyote Gold Project Resources

Click images to enlarge...

Coyote 3D Underground Model - Reserves/ Resources

Coyote 3D Underground Model - Reserves

A review of the Coyote Gold Project's underground resources/reserves and planned mining method was carried out by mining consultants AMC Consultants Pty Ltd (AMC).  Following this review the Company has decided to alter the underground mining method for the Stage 1 mine plan from a long hole stoping method to cut and fill.  This method is considered to be a lower risk option as it will provide improved control over mining dilution and greater flexibility to recover the multiple narrow high grade veins included in the existing mine plan.  Importantly, the more flexible amended mining method will enable recovery of additional identified high grade veins that are considered likely to be converted to reserves by underground drilling.  There remain significant underground resources which are not included in the Stage 1 mine plan which will be subject to underground drilling aimed at converting existing resources to reserves and delineating new resources/reserves.

Although AMC are satisfied with the classification of the majority of the Gonzales and Buggsy lodes as indicated underground resources, they have recommended that a number of diamond drill holes be drilled into the Muttley lode of the underground resource to achieve a higher level of confidence in the tonnes and grade of that lode.  Drilling commenced in April 2007.  A revised ore reserve statement will be compiled after this drilling has been completed and the resources and reserves have been re-estimated.

As a result of the review, Stage 1 will now cover the next three years of the Project with a base case production level of approximately 50,000 ounces per annum with the possibility of increasing the production level as more resources are converted and additional resources/reserves are delineated.