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Messina's Mineral Reserves and Mineral Resources
INTRODUCTION
Proven and Probable Mineral Reserves and Measured, Indicated and Inferred Mineral Resources are estimated by Messina Minerals in accordance with the definitions of these terms adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) in November 2005 and incorporated in National Instrument 43-101, "Standards of Disclosure for Mineral Projects" (NI 43-101), by Canadian securities regulatory authorities. Mineral Resources are reported separately from and do not include that portion of the Mineral Resources that is classified as Mineral Reserves. That portion of Mineral Resource which is not classified as Mineral Reserve does not have demonstrated economic value.
Historical resource estimates include all estimates of mineralization which pre-date adoption of CIM standards for definitions of mineral resources and mineral reserves. As such historical estimates characterize the approximate tenor and volume of in-ground mineralization only; they are not NI 43-101 conforming resource estimates and should not be relied upon as they do not have demonstrated economic value. Messina has not done the work necessary to verify the several zones of historical resources on the Company's properties; historical resources are reported to characterize the exploration potential of the individual zone.
DEFINITIONS
The CIM Definition standards on Mineral Resources and Mineral Reserves provide as follows:
A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal and industrial minerals in or on the earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
A Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined.
A Probable Mineral Reserve is the economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.
A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.
Table: Summary of Mineral Resources within Messina's central Newfoundland projects
| Property |
Prospect |
Category |
Tonnes |
Zinc
% |
Lead
% |
Copper
% |
Silver
g/t |
Gold
g/t |
Zn %
Cut-off |
Reference |
| Tulks South |
Boomerang |
Indicated |
1,364,600 |
7.1 |
3.0 |
0.5 |
110 |
1.7 |
1.0 |
Snowden 2007 |
| Tulks South |
Boomerang |
Inferred |
689,300 |
6.5 |
2.8 |
0.4 |
95 |
0.9 |
1.0 |
Snowden 2007 |
| Tulks South |
TE B Zone |
Unclassified |
140,000 |
6.3 |
1.0 |
0.5 |
|
|
1.0 |
Snowden 2007 |
| Long Lake |
Main Zone |
Historical |
970,000 |
10.9 |
1.3 |
1.7 |
33 |
0.8 |
0 |
Noranda 1999 |
| Skidder |
Skidder |
Historical |
1,000,000 |
2 |
|
2 |
|
|
0 |
Abitibi, 1980 |
Boomerang Mineral Resources - Tulks South Property
Mineral Resources for Boomerang and adjacent Domino mineralization were estimated by Snowden (August, 2007). Using a 1% zinc cut-off, Boomerang contains indicated mineral resources of 1,364,000 tonnes grading 7.1% zinc, 3.0% lead, 0.5% copper, 110 g/t silver, and 1.7 g/t gold, plus additional inferred mineral resources of 689,300 tonnes grading 6.5% zinc, 2.8% lead, 0.4% copper, 95 g/t silver and 1.0 g/t gold. These resources are compliant with CIM Definitions and NI43-101 Standards for Disclosure.
Hurricane Mineral Resources - Tulks South Property
Inferred mineral resources for Hurricane mineralization (300 meters adjacent to Boomerang) were estimated by Messina Minerals staff (K. Sparkes, P.Geo., G. Squires P.Geo.) following procedures used by Snowden (August, 2007) to estimate mineral resources at Boomerang. Inferred mineral resources at Hurricane are estimated at 55,100 tonnes grading 13.4% zinc, 7.0% lead, 1.2% copper, 159 g/t silver and 0.9 g/t gold using a 2.5% zinc cut-off. The Hurricane inferred mineral resource estimate is consistent with CIM Definitions but does not pass the test of 'independence' required for NI43-101 Standards for Disclosure.
Tulks East B Zone Mineral Resources - Tulks South Property
Inferred mineral resources for the Tulks East B Zone ("TE B Zone") mineralization (located 20 kilometers northeast of Boomerang) were estimated by Snowden (August, 2007) to contain 140,000 tonnes grading 6.3% zinc, 1.0% lead, and 0.5% copper with a 1% zinc cut-off. Following a 22 hole infill drill program, Messina staff (Kerry Sparkes, P.Geo.) updated the TE B Zone Snowden study and estimated an 175,200 tonne inferred mineral resource grading 6.7% zinc, 0.9% lead, and 0.6% copper with a 1% zinc cut-off. The inferred mineral resource estimate is compliant with CIM Definitions and NI43-101 Standards for Disclosure. Lakefield Research have completed mineralogical and metallurgical studies of the TE B Zone mineralization (Lakefield, 2004).
Long Lake Main Zone Mineral Resources - Long Lake Property
Noranda (1999) completed an estimate of inferred mineral resources at the Main Zone. Based on 15 drill holes completed between 1994 and 1997, Noranda estimated a straight volume of 970,000 tonnes grading 10.5% zinc, 1.2% lead, 1.6% copper, 32 g/t silver, and 0.8 g/t gold, without applying minimum width, dilution, or cut-off grade factors. Messina treats this calculation as an historical estimate characterizing in-ground mineralization only which does not meet the standards of 'inferred mineral resource' under CIM definitions. A total of 42 drill holes have now been completed testing the Main Zone (including 27 new holes completed by Messina since 2005). 31 holes have intersected massive sulphide mineralization over a 200 meter strike length (8900E to 9100E) and to a vertical depth of 240 meters; and 8 of an additional 11 holes drilled have extended the massive sulphides 100 meters to the west and east respectively (to 8800E and 9200E) and to a vertical depth of 700 meters.
SRK Canada has been commissioned to produce an estimate mineral resources at the Main Zone; this work is expected to be complete by December 2011.
Skidder Mineralization - Skidder Property
The grade and volume of mineralization was estimated for the Skidder massive sulphide prospect in 1980 by engineering firm Pincock and Allen on behalf of Abitibi-Price. The historic resource estimate is based upon 39 holes completed between 1970 and 1975. Drill density is insufficient and drill hole deviation measurements were not collected or inaccurate so the historic estimate cannot be considered an inferred mineral resource under CIM Definitions and is an estimate of mineralization only, and should not be relied upon. The Skidder mineralization was estimated in 1980 to be contain approximately 2% copper and 2% zinc within approximately 1,000,000 tonnes volume (Abitibi-Price, 1980). Messina Minerals drilled an additional 10 holes in 2007 which confirmed the presence and grade of Skidder copper-zinc mineralization.
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