Gemini Explorations Inc
Monday, October 1st, 2007
Gemini Explorations, Inc is pleased to release an updated overview of its wholly owned La Planada Gold Project as prepared by Carlos Alberto Vera, Chief Geologist of Minera Primecap Geological Services. The detailed update below supports that over 3,150,000 troy ounces of gold or a gross deposit value of approximately $2,310,000,000 with gold presently trading at $735 per ounce are possible from the La Planada Project.
The La Planada property is located in the municipality of Sotomayor, department of the NariÃ±o, in south western Colombia. Access to the property is approximately 80 km from Pasto the capital city of the NariÃ±o department by open road. The project has an exploitation (mining) license (#17486) for a period of 10 years and is renewable for an additional 10 years.
La Planada property is composed of Dagua Group Upper Cretaceous quartzites and siliceous siltstones intruded by a granodiorite plug. Surface exposure is excellent and there were numerous workings at various elevations that can be roughly traced from one elevation to another. The width of the zone (i.e. within the property boundaries) appears much greater than other surrounding properties. There are at least 3 different crosscutting vein sets. The principal vein ranges between 0.4 m and 2.0 m in width. Other veins range between 3 and 20 cm (or more) in width. All carry some sulphides, and free gold was seen in both quartz and with the sulphides. Disseminated sulphides were seen in the host rock sediments, and these will probably contain low-grade gold values, although these have yet to be lab verified. Samples should be taken from two newly reported workings, and of mixed vein and host rock material and it is anticipated that there will be good values gotten from the vein and sulphide material. Panned concentrates from both vein material and tailings showed fine to medium gold.
Assuming the average grade across host rock and vein material on La Planada produces a grade similar to that of surrounding properties there is every reason to think that the deposit could be processed by bulk mining of the entire zone. The ore would be processed using the same method, and probably the same plant, as that proposed for surrounding properties.
The entire La Planada property has excellent rock exposure. The surface could be stripped and then, samples could be taken in vertical channels across both vein and host rock. A series of small drill pads would have to be prepared on the surface of the deposit. They would be collared at 50 m intervals along that line. As drilling progressed more of that face would have to be cleared of vegetation and levelled and a parallel series of pads would have to be built 50 m on either side of the original line of holes. This work will require some blasting of rock to produce those pads. Vertical reverse circulation holes would be drilled from these pads, with holes ranging up to 200 m in depth (if capable) at highest elevation and 100 m in depth at lowest elevation, for a total depth of this first phase of drilling of roughly 1000 m. Dependent on recovery of material, samples would be taken every 2 to 5 m down each hole. Samples would be analyzed for gold by Fire Assay, with A.A. or gravimetric finish. This work will allow an estimate of grade and tonnage for La Planada Project.
Most of the gold is fine. Upon completion of at least an initial round of drilling and assuming favourable results for grade of material, a bench test would be required to determine fineness of the gold, amount of sulphides and what metals are present, and from that what type of processing plant would give the best gold recovery. If there is sufficient coarse gold a coarse gold circuit (e.g. a vibrating table) would probably be set up. If there is significant gold carried on the surface of sulphides then a sulphide floatation circuit would also be required. However, the bulk of the gold is fine and low grade (1.5 to 4 g/tonne) and is expected to be recovered with a large heap leach pad. Assuming the average grade of 1.5 to 4g/tonne and that sampling to date confirms continuity of mineralization to a depth of 200m, then the entire block could be mined and processed. A block 200m deep X 300m wide X 400 m long, with an average density of 2.45g/cc would produce 59 millions tonnes of ore with a cut-off grade of 1.5g/tonne gold. That translates to over 3,150,000 troy ounces of gold or a gross deposit value of approximately $2,310,000,000 with gold presently trading at $735 per ounce.