Underworld Resources Inc. Jan. 19 reported initial resource estimates for the Golden Saddle and Arc deposits at the White Gold Property south of Dawson City, Yukon Territory.
At Golden Saddle, Underworld estimated 1,004,570 ounces at a grade of 3.2 grams per metric ton gold in indicated resources and 407,413 ounces at an average grade of 2.5 g/t gold in inferred resources.
At the Arc zone, the initial resource estimate includes 170,470 ounces at an average grade of 1.2 g/t gold in the inferred category.
Golden Saddle remains open to expansion along strike to the northeast, and downdip to the northwest. Strength of alteration and mineralization increases in intensity to the northeast. The most northeasterly and deepest holes completed to date include holes WD09-101, which intersected 4.86 g/t gold over 23.38 meters and WD09-103 which intersected 5.07 g/t gold over 25.38 meters.
At Arc, a total of 15 holes at about 100 meters by 100 meters collar spacing and a single wireframe were used to establish the resource. Gold mineralization is preferentially hosted within metamorphosed sedimentary rocks in a broad zone ranging from 10-30 meters in thickness and dipping to the north-northeast. Mineralization is associated with pyrite and arsenopyrite within silicified breccia and shear zones. The zone extends from the surface, has a strike length of 600 meters extending 230 meters down dip, and is still open along strike and downdip.
Underworld is currently planning an aggressive drill program for 2010 to further expand the Golden Saddle and Arc deposits, and to drill test several new regional targets at the company’s extensive land position in the White Gold District.
The resource estimates were undertaken by SRK Consulting (Canada) Inc. and are based on data in 13,260 samples from 96 drill holes in the Golden Saddle and Arc areas. Indicated and inferred resources were categorized as open pit or underground utilizing 10-meter-by 10 meter-by-10-meter blocks at 0.5 g/t gold and 2.0 g/t gold cut off grades, respectively, and utilizing a Whittle shell model.
The resources were estimated from a total mineral inventory of nearly 1.5 million ounces averaging 2.71 g/t gold at the Golden Saddle Deposit, and 170,470 ounces averaging 1.21 g/t gold at the Arc Deposit.
