Bullfrog Increases Gold Mineral Inventory to 470,000 Ounces
Grand Junction, Colorado, April 11, 2016 – Bullfrog Gold Corp (BFGC:OTCQB) (“Bullfrog” or the “Company”) is pleased to announce that mineral inventories remaining around the Montgomery-Shoshone (“M-S”) and Bullfrog mines have been estimated by the Company at 470,000 ounces of gold, as summarized below.
Mineral Inventory Estimates
Tonnes Gold Gold
Pit Areas Millions G/T Ounces
M-S Shallow 1.1 1.06 38,612
M-S Deeper 0.9 0.93 26,813
Bullfrog North 13.3 0.88 375,051
BF NE Mystery Hill 0.9 0.80 26,813
Total/Average 16.4 0.89 469,961
Based on cross sectional estimation methods using a nominal
gold cut-off grade of 0.3 g/t. Average waste to mineral ratio
was estimated at less than 5 to 1.
These estimates are supported by close-spaced drill holes upon which Barrick Bullfrog Inc. (“Barrick”) produced 2.3 million ounces of gold from proven and probable ore reserves during 1989 to 1999. As a result, it would not require much more drilling or expense to upgrade these inventories to much higher classifications and meet US and Canadian industry standards. For reference, the large electronic data base acquired from Barrick includes 253,900 meters or 157 miles of drilling in 1,298 holes and a paper data base that may weigh 2,000 pounds. In this regard, the Company is the only entity that examined the Project data base after it was re-located to Barrick’s Elko and Salt Lake City offices in 2000 and performed detailed evaluations of mineralization remaining around the M-S and Bullfrog mines. Notwithstanding, Barrick makes no representation concerning the accuracy, completeness or application of their data by the Company. It is further cautioned that the Project contains no reserves or resources and that the mineral inventory estimates and other forward looking statements herein may never become viable, feasible or economic.
Bullfrog’s Market capitalizations per ounce of mineralization is currently US $ 3.40 compared to $45 or more for several companies that also have heap leach projects. The Company’s average mineral and cut-off grades are also higher than most heap leach projects proposed and operating in the USA. Additional mineralization in the M-S and Mystery Hill areas needs more drilling to support deeper mineral expansions with confidence whereas the Bullfrog North estimate already has adequate drilling.
Barrick terminated all mining by 1998 and mill production in early 1999 when gold prices were less than $300 per ounce. However, economic margins for producing remaining mineral around Barrick’s mines at current gold prices are now much better, particularly with the application of low-cost heap leaching methods.
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M-S Pit Area
In addition to mineralization immediately around the M-S pit, there is only one hole located within 150 meters from the NE pit limit and the next hole is 1,000 meters NE. Furthermore, these mineral trends and structures have been projected more than 4 kilometres NE of the M-S pit, but only nine holes were drilled by Barrick in this large area.
Located east of the M-S pit is an area that is 700 meters by 1,300 meters, but it contains only one shallow old hole from which no data is available. Only a portion of this area may be prospective, but additional study and exploration drilling is certainly warranted. The adjacent lands east and north of this area also have limited drilling. For reference, the Company controls all the lands that cover the M-S pit.
Bullfrog Pit and Underground Mine Area
From 1989 through 1994 Barrick recovered more than 1,346,000 ounces by conventional milling Bullfrog ores using a pit cut-off grade of 0.5 g/t. From 1992 through 1998 approximately 690,000 ounces averaging 0.24 opt were recovered from the north extension of the deposit and below much of the Bullfrog pit using underground mining and a cut-off grade of 3 g/t. As a result, significant mineralization grading from 0.3 to 3.0/g/t remains between the pit and underground workings and in isolated high grade intercepts that were too small or distant to develop and mine underground. Since Barrick’s underground operations extracted 95% of their reserve, it is expected that 5% or 34,000 ounces averaging 0.24 opt remain around the underground workings. Half of this high grade may be within pit mining depths. For reference, most of Barrick’s Bullfrog production was from lands now controlled by the Company.
The Mystery Hill structure is adjacent to the main Bullfrog deposit and has shallow mineralization for a known strike length of 300 meters. This area only contains 6 interior drill holes and has not been adequately drilled to estimate deeper potential down-dip and deeper than the estimates herein.
In 1994 Kappes Cassiday of Reno, NV performed simulated heap leach column tests on 250 Kg samples with results as follows:
Size, inch -1.5 -3/8
Calc. Head, gold opt .035 .029
Rec., % 71.4 75.9
Leach time, days 41 41
In 1995 Barrick performed a pilot heap leach test on 844 tons that were crushed to -½ inch and averaged 0.019 gold opt. In only 41 days of leaching, 67% of the gold was recovered while cyanide and lime consumptions were exceptionally low.
In 1986 St Joe column leached a 22-ton composite of minus 12-inch material grading 0.037 gold opt to simulate heap leaching material at a coarse run-of-mine (“ROM”) size and recovered 49% in 59 days of leaching, which they projected to 54% for leaching 90 days.
In summary, Project mineralization has good heap leach gold recoveries for crushing to 1.5 inch or less and at ROM size. The latter is particularly important since much additional low grade under 0.3 g/t that must be excavated from a pit could be ROM heap leached to supplement production.
About Bullfrog Gold Corp.
Bullfrog Gold Corp. is a Delaware corporation that started trading on the over-the-counter bulletin board market on October 17, 2011. More information may be obtained from www.BullfrogGold.com, by emailing info@BullfrogGold.com or calling (970) 628 – 1670.
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Cautionary Note Regarding Forward Looking Statements This press release may contain certain ‘Forward-Looking Statements’ within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein including those with respect to the objectives, plans and strategies of the Company and those preceded by or that include the words ‘believes,’ ‘expects,’ ‘given,’ ‘targets,’ ‘intends,’ ‘anticipates,’ ‘plans,’ ‘projects,’ ‘forecasts’ or similar expressions, are forward-looking statements that involve various risks and uncertainties. The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures and may not result in the discovery of sufficient mineral deposits that can be mined profitably. Furthermore, the Company currently has no resources or reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Additional information regarding important factors that could cause actual results to differ materially from the Company’s expectations is disclosed in the Company’s documents filed from time to time with the United States Securities & Exchange Commission.
Contact Information: David Beling, PE, President, CEO & Director, (970) 628-1670
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