Bullfrog Gold Receives Technical Report On Newsboy Project

GRAND JUNCTION, Colo., Feb. 11, 2014 (GLOBE NEWSWIRE) -- Bullfrog Gold Corp. (OTCQB:BFGC) (Bullfrog or the Company) is pleased to announce results from a Technical Report on resources at the Newsboy Gold Project (Project or Newsboy) located 45 miles NW of Phoenix, Arizona. The final report was completed on February 4, 2014 by SRK Consulting (SRK) of Denver, Colorado and is compliant with the current Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Table 1 is SRK's statement of mineral resources contained within a pit optimization shell in the Main deposit above a cutoff grade of 0.5 parts per million (ppm) gold. SRK generated 86 pit shells using Whittle pit-optimization software and the inputs and assumptions shown in Table 2, which are based on SRK's experience with other projects and may not be supported by potential scoping studies. The effective date of the SRK report was November 1, 2013.

Table 1

Pit-Constrained Mineral Resource Statement in the Main Deposit

 
           
Resource Gold Silver Tonnes Gold Oz Silver Oz
Category ppm ppm 000's 000's 000's
Measured 1.06 22.02 2,331 79 1,498
Indicated 0.92 13.69 1,588 47 634
Meas. + Ind. 1.00 18.65 3,920 127 2,132
           
Inferred 0.84 9.87 803 22 231
  • Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.  
  • Open pit resources stated as contained within a potentially economically minable pit shell, and a calculated internal cut-off grade of 0.5 ppm gold was used based on the following parameters: US$2.82/t mining cost, US$15.41/t processing cost, 88% gold and 18% silver recovery, G&A cost of US$2.67/t, 2% NSR and a US$1,500/oz value for gold and US$30/oz value for silver.  
  • Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.  
  • Troy ounces have been calculated using the following method: tonnes (metric) x grade (ppm) / 31.1034. Tons or s. tons refer to US standard short tons.

Table 2

Economic & Technical Assumptions for Pit Optimization
Category Pararameter Value
Mining Overall Pit Slope 45°
  Model Block Size 20' x 20' x 20'
  Waste Mining Cost $1.75/s. ton
  Mineral Mining Cost $2.00/s. ton
  Sustaining Cost $0.82/s. ton
  Recovery & Dilution Not Applied
Process Operating Cost $15.41/s. ton
  Silver Recovery 19%
  Gold Recovery 88%
  Throughput Limit 900,000 tpa
General & Admin.   $2.67/s. ton
Revenue and Selling Gold Royalties and Refining Costs $47.64/oz
  Silver Royalties and Refining Costs $0.95/oz
  Base Gold Price, 3-year Average $1,500/oz
  Base Silver Price, 3-year Average $30/oz
Optimization (86 Pit Shells) Range of Gold Prices at $30 Increments $450 to $3,000
Estimated Initial Capital   US$50,000,000
Operational Scenario Discount Rate 5%

Table 3 is a summary of measured, indicated and inferred resources within pit optimization shells using the 0.5 ppm gold cutoff and four additional cutoff grades: