Rio Silver Announces Close of Oversubscribed Private Placement
Momentum Public Relations
Press Release: November 7, 2019
Rio Silver Inc. (“Rio Silver” or the “Company”) (TSX.V: RYO) is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement (the “Financing”) for gross proceeds of $576,000.
Upon the completion of the Financing, the Company issued 11,520,000 units (the “Units”) at a price of $0.05 per Unit. Each Unit consists of one common share of the Company and one common share purchase warrant. Each warrant is exercisable into one additional common share of the Company at a price of $0.07 per share until May 7, 2021, unless the closing price of the common shares of the Company is $0.15 or higher for fifteen (15) consecutive trading days any time after the date that is four months and a day after issue, in which case the Warrants will expire thirty (30) calendar days after notice to Warrantholders announcing an earlier expiry date (the “Accelerated Expiry”).
The Company paid finders’ fees of $4,000 in cash and issued 80,000 finder warrants, with each such finder warrant entitling the holder thereof to acquire one common share of the Company at a price of $0.07 per share until May 7, 2021, subject to the Accelerated Expiry.
The Financing consisted of participation by pro-group member Shaun Chin of PI Financial, for 500,000 Units, as well as three insiders: Christopher Verrico, CEO and a director of the Company, purchased 1,500,000 Units, Rick Mazur purchased 900,000 Units and Steve Brunelle purchased 880,000 Units.
Proceeds from the Financing will be used to advance the Company’s Niñobamba silver and gold project in Peru by re-gaining social license within the local district, for working capital, and to explore potential precious metal projects in Peru that offer near term revenue potential and other working capital purposes.
The securities issued under the Financing will be subject to a statutory hold until March 7, 2020.
The Company further announces that, pursuant to the Financing, as outlined above, Rick Mazur, a director of the Company, has acquired ownership, control and direction over 900,000 common shares of the Company, representing 1.66% of the issued and outstanding common shares of the Company and an additional 900,000 share purchase warrants. Assuming exercise of these share purchase warrants, he would have acquired ownership, control and direction over 1,800,000 common shares, representing 3.26% of the issued and outstanding common shares under the Financing.
Following the acquisition, Mr. Mazur has ownership, control and direction over 6,022,623 common shares, representing 11.08% of the issued and outstanding common shares of the Company, and 900,000 share purchase warrants. Assuming exercise of all of the share purchase warrants held by Mr. Mazur, he would have ownership, control and direction over 6,922,623 common shares, representing 12.52% of the issued and outstanding common shares.
Mr. Mazur has advised the Company that he has acquired the securities for investment purposes, and may in the future acquire or dispose of shares as circumstances or market conditions warrants. In the future, Mr. Mazur may acquire additional securities of the Company or dispose of such securities through the market or otherwise subject to a number of factors, including general market and economic conditions, other investment and business opportunities available and other circumstances.
This news release is being issued in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues (the “Instrument”) in connection with the filing of early warning report to be filed in connection therewith. The early warning report respecting the transaction will be filed as required by the Instrument on the System for Electronic Document Analysis and Review (“SEDAR”) under the Company’s profile at www.sedar.com or may be obtained by contacting Chris Verrico at (604-762-4448).
The Company also announces that it has accepted the resignation of director and past CEO, Mr. Jeffrey J. Reeder P.Geo. from the Board of Directors. Mr. Reeder will be continuing as a non-executive consultant, to aid the Company with the pursuit of opportunities that are uniquely attractive due to Peru’s mineral deposit rich endowment and advanced mining-friendly culture. The Company thanks Mr. Reeder for his 5 years of service as a board member and looks forward to continuing a prosperous relationship.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not a guarantee of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required by applicable laws.
SOURCE Rio Silver
View original content: http://www.newswire.ca/en/releases/archive/November2019/07/c9822.html
Contact:
Christopher Verrico, President, CEO, Tel: (604) 762-4448, Email: chris.verrico@riosilverinc.com, Website: www.riosilverinc.com
- Published in Mining, News Home, Rio Silver
Bluestone Announces Updated Resource Estimate at Cerro Blanco; Increases Measured & Indicated Resources by 18% to 1.41 Moz at 10.3 g/t Au
Momentum Public Relations
Press Release: November 6, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce a new high-grade mineral resource estimate for the Cerro Blanco Gold project in Guatemala. Over the last nine months Bluestone has completed an infill drill program focused on converting Inferred Resources identified in the Feasibility Study into Measured and Indicated categories. The Cerro Blanco Feasibility Study (see press release January 29th, 2019) highlighted some 357,000 ounces of Inferred Resources (1.4 Mt grading 8.1 g/t Au) that could be potentially converted to Measured and Indicated Resources. The Feasibility Study was based on an initial eight-year mine life, demonstrating robust economics with an average LOM AISC of US$579/oz.
Highlights of the Resource Estimate (3.5 g/t Au cut-off)
- Measured category resources increased by 134%, totalling 607,714 tonnes grading 11.5 g/t Au, containing 225,118 ounces of gold
- Measured and Indicated Resources increased by 18% to 1.41 Moz averaging 10.3 g/t Au
- Majority of the 66 infill holes were drilled in the North Zone of the deposit, a similar program of infill drilling in the South Zone is now underway
Darren Klinck, President & CEO commented, “Cerro Blanco remains one of the highest-grade undeveloped gold projects amongst its peers. Our infill drill program which was primarily focused on converting Inferred Resources was highly successful and exceeded expectations. Overall the program added approximately 208,000 additional ounces of gold into Measured and Indicated Resource categories that will contribute to the reserve base, and potentially extend mine life. Two key outcomes of the resource conversion drill program were: the identification of five new veins in the North Zone, and an increase in Measured Resources to 225,000 gold ounces. We believe this recent infill drill program which was focussed in the North zone and the drilling currently underway in the South Zone have the potential to contribute additional mine life based on previous mine plan conversion rates. Every additional year of mine life has the potential to add approximately US$60 to US$80 million in free cash flow using a gold price of US$1,250 per oz Au.”
Table 1. Cerro Blanco High-Grade Resource Estimate at a 3.5 g/t Au cut-off
Resource Category | Tonnes | Au Grade g/t |
Ag Grade g/t |
Contained Gold (Oz) |
Contained Silver (Oz) |
Measured | 607,714 | 11.5 | 44.2 | 225,118 | 864,281 |
Indicated | 3,661,507 | 10.1 | 35.6 | 1,188,194 | 4,193,343 |
Measured & Indicated | 4,269,221 | 10.3 | 36.8 | 1,413,312 | 5,057,624 |
Inferred | 466,218 | 7.1 | 16.6 | 107,215 | 248,488 |
- Effective date: November 1, 2019. All Mineral Resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required under NI 43-101. Mineral Resource Statement prepared by Garth Kirkham (Kirkham Geosystems Ltd.) in accordance with NI 43-101.
- Measured Resources include 29,726t of stockpiled material grading 5.35 g/t Au and 22.6 g/t Ag.
- Mineral Resources reported demonstrate reasonable prospect of eventual economic extraction, as required under NI 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Mineral Resources may be materially affected by environmental, permitting, legal, marketing, and other relevant issues.
- Underground Mineral Resources are reported at a cut-off grade of 3.5 g/t Au. Cut-off grades are based on a price of US$1,250/oz gold, US$16/oz silver, and a number of operating cost and recovery assumptions, including a reasonable contingency factor.
- Density used was 2.53 t/m3 for mineralized material.
- Ounce (troy) = metric tonnes x grade / 31.10348. All numbers have been rounded to reflect the relative accuracy of the estimate. Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Resources.
David Cass, Vice President Exploration commented, “The successful completion of this infill drilling program has further enhanced our geological understanding of the Cerro Blanco mineralization and our confidence in the resource continues to improve. Throughout the drilling we have continued to be impressed by the continuity and predictability of the veins, most of which require further detailed drilling to define their lateral and depth extensions. Furthermore, our confidence in the model is further enhanced by trial stoping along veins in the Cerro Blanco underground workings which continues to improve orebody knowledge (see press release dated September 4, 2019).”
The updated Mineral Resource estimate is the result of an additional 8,567 meters of drilling (66 drill holes) drilled as part of Bluestone’s infill drill program that commenced in November 2018 and was focused in the North Zone underground workings. The estimate is based on an increasingly better understanding of the geological model, supported by over 3 kilometers of underground infrastructure and 526 underground channel samples. To date, over 138,000 meters in 646 holes have been drilled at the property by Bluestone and previous workers.
Table 2: Cerro Blanco High-Grade Resource Estimate* at Various Gold Cut-off Grades
Resource Category | Cut-off | Tonnes | Grade (Au g/t) |
Grade (Ag g/t) |
Contained Gold (oz.) |
Contained Silver (oz) |
Measured | 2.5 | 654,166 | 10.8 | 41.7 | 227,266 | 876,176 |
3 | 611,140 | 11.4 | 43.7 | 223,467 | 858,015 | |
3.5 | 577,988 | 11.8 | 45.3 | 220,004 | 842,691 | |
4 | 545,381 | 12.3 | 47.1 | 216,073 | 825,733 | |
4.5 | 508,370 | 12.9 | 49.2 | 211,012 | 803,851 | |
Indicated | 2.5 | 4,503,842 | 8.8 | 31.4 | 1,268,927 | 4,552,459 |
3 | 4,061,302 | 9.4 | 33.5 | 1,229,917 | 4,370,821 | |
3.5 | 3,661,507 | 10.1 | 35.6 | 1,188,194 | 4,193,343 | |
4 | 3,293,700 | 10.8 | 37.9 | 1,143,887 | 4,008,172 | |
4.5 | 2,935,960 | 11.6 | 40.2 | 1,094,990 | 3,795,334 | |
Measured & Indicated | 2.5 | 5,158,008 | 9.0 | 32.7 | 1,496,193 | 5,428,635 |
3 | 4,672,442 | 9.7 | 34.8 | 1,453,384 | 5,228,836 | |
3.5 | 4,239,495 | 10.3 | 36.9 | 1,408,199 | 5,036,034 | |
4 | 3,839,082 | 11.0 | 39.2 | 1,359,959 | 4,833,905 | |
4.5 | 3,444,330 | 11.8 | 41.5 | 1,306,002 | 4,599,186 | |
Inferred | 2.5 | 613,434 | 6.1 | 15.4 | 121,161 | 303,819 |
3 | 526,930 | 6.7 | 15.9 | 113,542 | 269,554 | |
3.5 | 466,218 | 7.2 | 16.6 | 107,215 | 248,488 | |
4 | 404,649 | 7.7 | 17.1 | 99,786 | 222,956 | |
4.5 | 349,422 | 8.2 | 17.5 | 92,259 | 196,705 |
- Base Case cut-off grade in Bold.
- Measured Resources exclude Stockpile – 29,726t grading 5.35 g/t Au and 22.6 g/t Ag.
Cerro Blanco is a classic hot springs-related, low sulphidation epithermal gold-silver deposit comprising a system of moderate to steeply dipping quartz-adularia-calcite veins. The above Resource has a footprint of 800 x 400 meters between elevations of 525 meters and 200 meters above sea level. The bulk of the high-grade veins occurs as two upward-flared vein arrays (North and South Zones) that converge at depth into master feeder veins that appear to define a positive flower structure, defining mineralization over a vertical distance of approximately 300 meters. Most of the veins are hosted in a gently dipping sequence of siltstones, limestones, conglomerates, and andesitic tuffs (Mita Unit) that are overlain by approximately 100 meters of silicified conglomerates and sinter beds (Salinas Unit) representing a silica cap that forms the low-lying hill at Cerro Blanco.
Mineral Resource Estimation
The Mineral Resource estimate for Cerro Blanco was prepared to industry standards and best practices using commercial mine modelling and geostatistical software. Garth Kirkham, P.Geo., is the Independent Qualified Person responsible for the Mineral Resource estimates for the purposes of NI 43-101. The geologic models and domains were completed under the supervision of Bluestone’s Vice President of Exploration, David Cass, P.Geo., and Geology Manager, Carlos Chiquin. The deposit was segregated into multiple estimation domains for the vein domains based on geologic and structural models with the Mineral Resources estimated by inverse distance interpolation of capped composites.
Bluestone and its consultants conducted extensive structural studies and analyses to assess the quality of the pre-Bluestone legacy drill hole data in preparation of the Mineral Resource estimates. Confirmatory drilling by Bluestone has shown the data to be of high quality, increasing confidence and understanding of the Cerro Blanco deposit. The improved constraints on mineralization provided by this updated geological model at Cerro Blanco have reduced the variance of resource sensitivities.
The Mineral Resource estimates employed state of the art commercial modelling and mine planning systems (LeapFrog and MineSight R v15.50). The block model has a parent block size of 5 x 5 x 1 meters with a sub-block size of 1 x 1 x 0.1 meters. Assays were composited to 1.5 meters to insure regularized, common sample support. The methodology employed was inverse distance in a single pass using capped gold and silver composites which were limited to selected thresholds based on analysis of cumulative frequency plots and commonalities of veins. Cut grade thresholds ranged from 18 g/t to 110 g/t Au and 100 g/t Ag to 300 g/t Ag. Hard boundaries were used for each vein with a minimum of 2 composites per block and a maximum of 9 per block, 3 maximum composites per drill hole or channel sample.
Mineral Resources are classified under the categories of Measured, Indicated, and Inferred according to CIM guidelines. Mineral Resource classification for gold was based primarily on drill hole spacing and on continuity of mineralization. Measured Resources were defined as blocks within a distance lateral to the ramp and along veins within 15 meters. Indicated Resources were defined as those within a distance to three drill holes of less than 40 meters. Inferred Resources were defined as those with a drill hole spacing of less than ~75 meters and meeting additional requirements. All Resources are constrained by the continuous vein solids. Final Resource classification shells were manually constructed on sections. Mined out ramp material was extracted from the Measured Resources. Silver was not classified separately and is reported based on gold classification.
Qualified Persons
The Mineral Resource Estimate in this release has an effective date of November 1, 2019 and was prepared in accordance with NI 43-101 by Garth Kirkham, P.Geo., a Qualified Person for NI 43-101. Mr. Kirkham is an employee of Kirkham Geosystems Ltd., and is an independent Qualified Person as defined by National Instrument 43-101. The scientific information in this release was reviewed by David Cass, P.Geo., Vice President Exploration for Bluestone. Both Qualified Persons have read and approved the information contained in this press release.
About Bluestone Resources
Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned high-grade Cerro Blanco Gold project located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.
On Behalf of Bluestone Resources Inc.
“Darren Klinck”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Mining, News Home
Colibri Receives TSX Venture Exchange Approval for its Acquisition of Yaque Minerales
Files Updated with NI 43-101 Complaint Property Report on El Mezquite
Momentum Public Relations
Press Release: November 6, 2019
Colibri Resource Corporation (“Colibri” or the “Company”) wishes to announce that the TSX Venture Exchange has accepted for filing its acquisition of Yaque Minerales S.A de C.V. (“Yaque”). The agreement was first announced on October 30th, 2018. Yaque is a private gold exploration company owned by a non-arms length company called OnTop Capital. The $1 million CAD purchase is being made by way of a five-year convertible debenture bearing 2.5% annual interest and carries a $0.20 per share conversion privilege.
There are two projects in Yaque: “El Mezquite” and “Jackie”. Both are located in the prolific High Sierra Madre in Sonora, Mexico and are less than 10km north east of the Nicho deposit held by Minera Alamos (TSX Venture: MAI – market cap of approximately $75 million CDN) in its Santana project. The Nicho is reportedly expected to be advanced to production in 2020 with initial production rates of between 25,000 to 30,000 ounces of gold per year.
A. El Mezquite
Colibri has filed a newly updated NI 43-101 complaint property report on its El Mezquite project, a copy of which can be found on www.sedar.com and on the Company’s website, www.colibriresource.com. An updated report was required in order to complete the acquisition of Yaque Minerales as a previous report had become stale dated during the review process. The updated report includes more recently released samples and observations made by company geologists in 2019 (See Colibri news release dated March 29th, 2019). The report also includes recommended work to be done in order to advance the property.
The first steps of this recommended work program are expected to be completed over the next three months. Should the results of this work satisfy the expectations of Colibri geologists and management a drill permit will be applied for and tenders for drilling contracts will be solicited.
Exploration work on El Mezquite prior to 2018 included the collection of 321 grab samples of which 13% contained anomalous to higher Au grades (0.10 g/t Au to 3.41 g/t Au), mapping of alteration which delineated a zone of Au potential at least 600m by 300m on the northeastern part of the property and a Three-Dimensional Induced Polarization Survey (3D-IP Survey) which resulted in the identification of chargeability and resistivity anomalies underlying the surface area of potential. See news release dated October 30th, 2018.
Surface exploration on the El Mezquite property by Colibri geologists in calendar 2019 has included additional detailed mapping and verification sampling which was aimed at confirming north-easterly grade trends within the currently defined area of potential as well as to a lesser extent mapping and sampling away from the known main target.
The above described 600m by 300m area is contained in a broader alteration zone that extends for approximately 2 km in north/south direction, by 1 km east/west width. Within the broad alteration zone are at least four colourful (after oxidized sulfides) hydrothermally altered contact zones about a silicified feldspar porphyry. The distinct gold and silver values and geophysical anomalies reported in the El Mezquite area are mostly associated with these zones of sulphide alteration.
The property also includes 2 known historical mining workings that have not yet been evaluated by the Company. These workings will be more thoroughly examined in upcoming programs.
Colibri is targeting a deposit(s) of 1 million ounces of gold or greater which would be expected to be near surface and amenable to open pit heap leach production. El Mezquite has never been drilled.
B. Jackie
The Jackie project is 1130 Ha in size and is located approximately 2 km south of the El Mezquite. Very little work has been done in the way of exploration on this property at this point but grass roots prospecting is slated for 2020. The project is 100% owned and is not subject to any royalties.
Jackie directly borders the “Santana” project, which is being advanced and developed by Minera Alamos (TSXV-MAI), to its east. Minera Alamos has successfully completed a pre-commercial bulk sample/heap leach test on the “Nicho” deposit and in October 2018 announced additional exploration drilling results of: 95.7m @ 1.57 g/t AuEq, 80.4m @1.05 g/t Au, and 95.5m @0.65 g/t Au in holes nearby this deposit. A construction decision at Nicho is anticipated to occur in early 2020 and current corporate guidance predicts annualized production of 30,000 to 50,000 ounces of gold per year with a mine life of greater than 6 years.
About Colibri Resource Corporation:
Colibri is a Canadian mineral exploration company listed on the TSX-V(CBI) focused on acquiring and exploring gold properties in Mexico.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections.
SOURCE Colibri Resource Corporation
View original content: http://www.newswire.ca/en/releases/archive/November2019/06/c0661.html
Contact:
Ronald J. Goguen, President, Chairperson and Director, Tel:(506) 383-4274, rongoguen@colibriresource.com
- Published in Colibri Resource Corp, Mining, News Home
Colibri Resource Corp. (CVE: CBI) Robust Gold Projects Portfolio
Colibri is a Canadian exploration and mining company engaged in the acquisition and development of gold mining properties in Mexico. The Company’s exploration and mining portfolio is made up of five properties, encompassing over 9,000 hectares.
The projects are entirely focused on gold and silver in the state of Sonora in northwestern Mexico. The region is host to many historical and currently producing mines and the fact that the region continuously attracts some of the biggest global mining companies underscores its viability when it comes to mining operations.
Management and the Board of Directors of the Company is very strong and have a track record of success in gold exploration. Headed up by Ron Goguen (the founder of both Major Drilling and the Beaverbrook Antimony Mine) the team also highlights the current Chief Geologist for Anglo Gold Ashanti and a past Director of Exploration of Agnico Eagle Mining for Mexico.
Evelyn Project
The Evelyn Project is the Colibri flagship-mining project located in northern Sonora. The project sits on 506 hectares within the Caborca Gold Belt. The belt plays host to many significant gold mines including the Noche Buena Mine, which produced 167,200 ounces of gold in 2018 (9km from Evelyn) and La Herradura which produced 474,000 ounces in 2018 (25km from Evelyn). Colibri owns one of the very few remaining claims in the area not held by a major producer. In fact, La Herradura Mine is Mexico’s single largest producer of gold and is held by Fresnillo plc.
Colibri has already completed a property wide soil sample program, rock chip sampling, and localized geological mapping at the Evelyn project. The property hosts several historical artisanal mines, has never been drilled, and is poised to be a new discovery in well understood gold mining district.
Buoyed by the gold project’s high prospects, the Company recently engaged the services of AuroMetallum Geology Consulting Service. The firm is tasked with the responsibility of completing a full geological mapping of the property, which will provide valuable information which will be used to develop potential drill targets. The final report is expected in early November and the Company plans to commence drill program as soon as December of 2019.
The mapping study comes hot on the heels of the completion of a localized chip sampling survey in which samples returned as high as 4.81g/t AU and 4.19 g/t Au in an area with high levels of iron oxide staining and were taken about 1 kilometer north east of “Main Zone”. A sampling program of the Main Zone has returned samples as high as 43.1 g/t Au and has averaged 10 g/t Au in an exposed quartz vein measuring 180m at surface.
The Company anticipates announcing their maiden drill program at Evelyn in the very near term.
El Mezquite Gold Project
El Mezquite Gold Project is another of Colibri’s flagship gold project which is located within the Sierra Madre volcanic complex in eastern Sonora. The project is 180 hectares in size and considered to be highly prospective as a low-grade large tonnage gold project. It is worth noting that the project borders a mine being brought to production in 2020 by Minera Alamos and is on trend with mines operated by major producers such as Agnico Eagle Mining.
Exploration work on this yet to be drilled property has consisted of extensive chip sampling and a magnetic/3D IP survey which has identified a handful of high potential targets. Assay results taken from 321 chip samples have already shown many values of gold >0.1 ppm to 3.41 ppm and averaged 0.74 ppm of gold and 25.7ppm of Silver.
Colibri is planning to complete a further geological mapping study to identify drill targets for El Mezquite Gold Project. To date the Company has identified at least four key zones of alteration within the concession. The Company expects to complete property mapping and commence a maiden drill program at El Mezquite in the first quarter of 2020.
Pillar Gold Project
Even as Colibri continues to progress and build value at Evelyn and El Mezquite it has also laid out a strategy for its Pillar gold project in the Suaqui Grande area. The Company recently announced that it has optioned 51% of the project to another Canadian junior mining company in return for property work expenditures, cash, and a large share position in the other junior. This should allow Colibri to appreciate significant upside for its own shareholders from the project while not diluting the stock to pay for the exploration. The other junior has agreed to issue Colibri a total of 5 million shares of its stock, pay cash totalling $400,000, and spend $2.0 million in exploration on the property over a 5-year period
Pitaya Project
Currently for sale, Pitaya Project, is partially owned as part of a joint venture in partnership with Agnico Eagle Mining. Colibri owns 24.5% of the project, with Agnico holding a controlling stake at 75.5%. Located in Sonora Mexico, the prospective gold project sits on 6,564 hectares.
In December of 2017, Colibri confirmed an intercept of 20.96 g/t gold and 57.0 g/t silver across 2.2 meters.
The project has been the subject of exploration activities targeting down-dip projections of high-grade quartz veins that cut volcanic and sedimentary rocks. Geological mapping has indicated that gold must have been concentrated during the Laramide compression.
Colibri has deemed this property a non-core asset and has made an agreement with Agnico Eagle allowing Agnico to sell the property on its behalf.
The Future
With gold prices edging higher in 2019, Colibri could be in for impressive returns on investment by advancing their projects to resource calculation stages and preparing for future potential mining operations at any of their gold projects under development.
Colibri’s strategy of optioning its Pillar and selling Pitaya minimizes the need for potential near-term capital raises and ultimately results in injections of non-dilutive cash that can be used to advance their other 100% owned / highly prospective gold projects. The sale of non-core Pitaya Project, is a testament to management’s ability to advance the Company, capitalize on opportunities, and build value for its shareholders.
The Evelyn Project is set to be a near immediate driver for the company’s success and underlying shareholder value. It is one of the last claims of land in the Caborca area not currently held by a major producer and with financing being generated internally rather than through overly dilutive financings, we see blue sky potential. Steady news is expected from the Company for the foreseeable future as advancements are made and milestones achieved.
https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3ACBI-2815640&symbol=CBI®ion=C
- Published in Colibri Resource Corp, Mining, News Home
Colibri Director Wins Nicholas Denys Award
Momentum Public Relations
Press Release: November 1, 2019
Colibri Resource Corporation (“Colibri” or the “Company”) wishes to congratulate Roger Doucet, a Director of the Company, for being honored with the Nicholas Denys Award at the recent XPLOR Conference held by the Quebec Mineral Exploration Association (AEMQ).
This award is bestowed to highlight the careers of prospectors who, through his/her work over many years, has made a significant contribution to the development of prospecting and mining exploration in Quebec.
From 1975 to 1988, Roger worked for Lac Minerals Ltd. during which time he discovered the Bousquet #1 gold mine and was also involved with discovery of the Doyon Gold Mine. Both deposits are located in the Abitibi area of Quebec. He was granted the “Prospector of the Year” Award in 1978 for his involvement in these discoveries. Mr. Doucet was also in charge of re-evaluating the East-Malartic and Canadian Malartic mines which lead to the discovery of large, low grade gold zones.
“We are happy to see that Roger has been recognized for his contributions in mineral exploration in Quebec. The award is only distributed to one person per year and we certainly feel he is deserving of the honour. He has been a valued member for many exploration and management teams over the years including Colibri’s” says Ron Goguen, CEO.
About Colibri Resource Corporation:
Colibri Resource Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange trading under the symbol CBI and is focused on acquiring and exploring prospective gold properties in Sonora, Mexico.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections.
SOURCE Colibri Resource Corporation
View original content: http://www.newswire.ca/en/releases/archive/November2019/01/c8641.html
- Published in Colibri Resource Corp, Mining, News Home
Silver Spruce Completes Melchett Lake Due Diligence Field Program
Momentum Public Relations
Press Release: October 31, 2019
Silver Spruce Resources Inc. (TSXV:SSE)(Frankfort:S6Q1) (“Silver Spruce” or the “Company”) is pleased to announce the completion of its field due diligence program on the Melchett Lake Zn-Au-Ag volcanogenic massive sulphide (“VMS”) project, an advanced precious and base metal project in the Thunder Bay Mining District, northern Ontario, Canada. Mobilization to the Property by air from Nakina was conducted on October 3rd, 2019 for a seven-day field program focusing on the known targets with drill core and surface exposures.
“We are very pleased to report on management site visits to provide oversight on targeted exploration and data verification on the Melchett Lake VMS-Au Property which will support a pending decision to earn a 100% interest in the project,” stated Karl Boltz, CEO of Silver Spruce.
“We continue to advance our due diligence pending multi-element geochemical results from rock and core samples, while building our Leapfrog GIS database with recently revised drill hole co-ordinates and all available drilling, geophysical and geological information to identify additional VMS sulphide mineral responses and alteration vectors leading to drill target identification,” stated Greg Davison, Director of Silver Spruce. “Ontario Ministry of Energy, Northern Development and Mines work permits currently are in place for our follow-up exploration program including geological sampling, trenching and diamond drilling.”
Letter of Intent
Silver Spruce Resources Inc. signed a binding Letter of Intent (“LOI”) to acquire 100% of the Melchett Lake Zn-Au-Ag volcanogenic massive sulphide (“VMS”) project, Thunder Bay Mining District, northern Ontario, Canada. The LOI was executed on September 9th, 2019. Silver Spruce has a 90-day window after signing the LOI to carry out its due diligence and prepare a Definitive Agreement (“DA”).
Due Diligence and Exploration
The current work was performed to update and verify the multi-kilometre strike length of the known areas of mineralization, broad intervals of mineralization, intense alteration profile similar to well-known polymetallic deposits, and presence of high-grade values of both precious metals and base metals reported from the historical exploration.
Field work for the due diligence program focused on geological sampling and data verification on known occurrences, GPS location surveys of the historical drill collars to update the 2D and 3D Leapfrog model, and preservation and sampling of the diamond drill core stored on the Property.
The team examined the principal showings and trenches, and drill core at the Relf and Nakina targets separated by 5km along the principal mineralized trend. Limited ground truthing of geochemical and geophysical targets was conducted over areas peripheral to the known mineralization.
The Property was accessed via float equipped aircraft from Nakina to fly camps on both Relf Lake and Kapikotongwa Lake, the latter west of Melchett Lake, and by helicopter to camp sites and target areas from Nakina Airport.
The team spent four days at the Relf Lake showings and three days at the Nakina showings. Silver Spruce Director, Greg Davison, who worked the Melchett Lake area for Kerr Addison Mines and Tribute Minerals, respectively, led the management visit to the Property. Consulting Geologist Luc Lepage, MSc, PGeo, was the manager of the on-site activities for the field program. Mr. Lepage has extensive international experience including field work at the nearby Marshall Lake VMS project.
Drill core from the Stratabound Minerals program of two holes in 2007 and 2008 was stacked at the Relf Lake collar sites whereas Kerr Addison core from the 1983-1987 programs were stored in racks near the Kapikotongwa Lake (“Kap”) camp location, two kilometres west of the Nakina showings. The former core was well preserved, and all of the remaining core was laid out and reviewed before cross-stacking, and 10cm whole core samples were collected for metal and alteration geochemistry. The altered and mineralized intervals previously were sampled in select sections using whole core (20% of 1metre intervals per 8metres, additional intervals in well mineralized core) and the abundant gap intervals were marked. The collars for the Relf area holes and the main trench zone were re-located using GPS.
The core at Kap-Nakina included Kerr Addison holes from both the Nakina and Relf targets. The core racks were in very poor condition and only a small proportion of the core was readily accessible for sampling as labels and core integrity were limited. Samples for geochemistry were selected only where hole identification was verified. The collars for the Nakina area holes, which exhibited significant variance from the assessment literature, and the trench zones, were re-located using GPS.
Rock sampling was carried out at both the Nakina and Relf targets at known trench locations. The Nakina targets are characterized by high silica-pyrite and a well foliated micaceous fabric. The Relf trenches are intensely altered and well oxidized on surface with extensive gossans with very friable to siliceous quartz-sericite schists, pervasive discoloration by iron and massive to spongy ferroan “blackjack” sphalerite in thin stringers to sphalerite-pyrite lenses of several centimetres, over an exposure of more than forty by twenty metres. The schists exhibited finely disseminated pyrite within granular quartz-sericite with pinch swell textures and steep dips along an east-west fabric. Lineations, from limited measurements, in the area are steeply dipping and appear orthogonal to the principal oblate alignment of the mineralization.
A total of seventy-two (72) rock and core samples were collected, sixty of which were submitted for multi-element geochemical analysis and the results are pending.
Maps and site photographs of the core and trench areas are available on the Silver Spruce website at Melchett Maps and Melchett Photos, and the geological and GIS compilations will be reported and posted on the Company website in due course.
An update to the NI 43-101 technical reporting initiated by an independent Qualified Person (“QP”) is planned during Q1 2020 upon acquisition of the detailed airborne and downhole geophysical survey data, structural geology analysis, receipt of the due diligence assays, interpretation of the geochemical vectors and development of the 2020 program proposals.
Project Background
The Property, located within Melchett Lake greenstone belt of the English River Sub-province of the Archean-age Superior Province, is underlain by a bimodal mafic-felsic sequence of pyroclastics, tuffs and flows with cherts and Fe-lean to Fe-rich iron formation. Several occurrences of polymetallic Zn-Pb-Cu-Ag-Au VMS style mineralization are similar in character to ore deposits exploited at Mattabi, Winston Lake, Geco, Brunswick, Rouyn-Noranda and Uchi Lake. There are locally high-grade lenses of Zn & Ag with variable Cu, Au and Pb, and historical gold grades to 28.8g/t Au, silver grades to 560g/t Ag and zinc grades to 19.1%.
Highlights of the prospective geology, alteration and mineralization include multiple folded or stacked horizons of coincident alteration and metal mineralization, high Zn/Cu, Zn/Pb and Ag/Au ratios, extensive remobilization of major and trace elements with defined enrichment (Fe, Mg, Co, Cr, Cd) and depletion (Na, Sr, Ca) zones, and continuity, increased alteration and anomalous metal values over large intervals (up to 245 metres in DDH SB-07-01 from 345-590metres) with a strong electromagnetic (BHTEM) 20 channel off-hole response.
Selected grab samples taken from the Relf Zone by Shawmin averaged 13.0% zinc (Zn), 1.2% lead (Pb), 0.26% copper (Cu) and 325g/t silver (Ag); best results received were 19.1% Zn, 2.2% Pb, 0.40% Cu, 565g/t Ag and 1.72g/t gold (Au). A selection of Relf Zone samples collected in 1984 by Kerr Addison geologist and current Silver Spruce director G. Davison is shown below.
Sample No. |
Zinc % |
Lead % |
Copper % |
Silver g/t |
1061 |
12.90 |
1.920 |
0.288 |
552 |
1064 |
11.60 |
0.866 |
0.507 |
278 |
1065 |
16.80 |
2.400 |
0.075 |
655 |
1066 |
8.26 |
0.330 |
0.972 |
170 |
1067 |
11.10 |
1.300 |
0.142 |
394 |
At the Nakina l Zone, Nakina Mines reported, in separate samples, 14.85% Zn and 28.8g/t Au from a pyritized felsic volcanic unit. Rock sampling of a pyritized felsic volcanic unit in the Nakina 2 Zone by Kerr Addison returned a value of 15.08g/t Au.
Gold mineralization in the Iron Lake area, which was not examined during the current due diligence program, is traced for at least 600metres within a sheared, sericite-silica altered felsic metavolcanic and contains 3-8% pyrite, with lesser chalcopyrite and sphalerite. Grab samples reported 7.7g/t Au, 13.05g/t Au and 13.48g/t Au.
All of the above metal values were reported by past operators in the Melchett Lake area, from grab samples which may not be representative of the metal grades, and are historical in nature.
Exploration History
Base metals were first reported in 1959 by Kerr-Lund and Little Long Lac Gold Mines in the Kerr-Lund (Relf) Zone. Between 1964 and 1997, the area was held by Shawmin, Nakina Mines, Chimo Gold Mines, Falconbridge, Cominco, Kerr Addison Mines, Minnova, Inmet and Redbird. Tribute staked a large claim group in 1999 and during 2002 completed a 217 line-kilometre DIGHEMv airborne magnetic and electromagnetic geophysical survey using a 100metre separation. Stratabound Minerals, during 2007 and 2008, completed two drill holes and downhole geophysics with Maxwell modelling. The property was staked by the current Vendors in 2017.
In addition, Fugro carried out a regional airborne magnetic gradiometer survey for the Ontario Geological Survey from 2009-2010 which comprised over 75,000 line-kilometres of data acquisition, flown in a north-to-south direction with 200 metre flight line spacing and with full coverage over the Property and the Melchett Lake greenstone belt.
Geochemical Analysis, Quality Assurance and Quality Control
Samples were collected by the Company’s QPs, packaged in plastic bags with Tyvek tags and shipped by contract air services to Nakina and, using the QPs’ private vehicles, delivered directly to the ALS Global sample preparation facilities in Thunder Bay, Ontario.
Photographs of the individual rock and core samples were collected from each sample prior to shipment. Several select rock samples from the Nakina and Relf trenches were split as required, with a representative portion bagged and sealed in packages by the QPs for analysis. These rock samples selected for display and investor meetings were photographed at the offices of the QP, and all images will be made available on the Company web site in due course.
Samples were weighed on receipt (WEI-21) and logged into the global tracking system (LOG-22). The samples were crushed to 70% passing 2mm (PREP-31) and a split of up to 250 grams was pulverized to 85% passing 75 micrometres (-200 mesh).
The sample pulps were transferred internally to ALS Global’s North Vancouver analytical facility for analysis. ALS Global in North Vancouver, British Columbia, Canada, is a facility certified as ISO 9001:2008 and accredited to ISO/IEC 17025:2005 from the Standards Council of Canada.
Twenty-four pulps (25gram split) were then submitted for analysis by Aqua Regia Digestion followed by Inductively Coupled Plasma Mass Spectrometry (ICP-MS) multi-element analyses (ALS Code AuME-TL43, 51 elements).
Thirty-six pulps were submitted for whole rock oxide, metals and multi-element analysis by lithium borate fusion and acid digestion followed by Inductively-Coupled Plasma-Atomic Emission Spectrometry (ICP-AES) (ALS Code ME-ICP06, 13 elements), Loss on Ignition (LOI) at 1000C by furnace or TGA, Inductively Coupled Plasma Mass Spectrometry (ICP-MS) on the same fused bead after acid digestion (ALS Code ME-MS81d, 30 elements), and measured by Inductively-Coupled Plasma-Atomic Emission Spectrometry (ICP-AES) after a near-total digestion in a mixture of HCl, HNO3, HClO4, and HF (ALS Code ME-4ACD81, 12 elements).
All precious and base metal analyses that reach the over-limits of AuME-TL43, ME-MS81d or ME-4ACD81 will be re-analyzed with an Ore Grade method. Over-limit Cu (>1%), Pb (>1%), Zn (>1%) and Ag (>100ppm) samples are analyzed by Ore Grade 4 Acid Digestion followed by Ore Grade Inductively Coupled Plasma Atomic Emission Spectrometry (ICP-AES) for Pb (ALS Code Pb-OG62) and Ag (ALS Code Ag-OG62), and by Atomic Absorption Spectroscopy (AAS) for Cu (ALS Code Cu-AA62) and Zn (ALS Code Zn-AA62). Gold will be analyzed using 30gram fire assay with Atomic Absorption Spectroscopy (ALS Code Au-AA23). Over-limit Au (>10ppm) will be conducted by 30gram fire assay with Gravimetric finish (ALS Code Au-GRA21).
No independent or in-house quality control samples (blanks, standards, duplicates) were inserted into the sample sets. ALS Global conducts its own internal QA/QC program of blanks, standards and duplicates, and the results are provided with the Company sample certificates. The results of the ALS control samples will be reviewed by the Company’s QP and evaluated for acceptable tolerances. All sample and pulp rejects will be stored at ALS Global pending full review of the analytical data, and future selection of pulps for independent third-party check analyses, as requisite.
Qualified Person
Greg Davison, MSc, PGeo and Silver Spruce Director, is the Company’s internal Qualified Person (QP) for the Melchett Lake Project and is responsible for the technical content of this press release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), under TSX guidelines. Mr. Davison worked the Melchett Lake area as Project manager and VP Exploration for Kerr Addison Mines (1983 and 1984) and Tribute Minerals (1999 to 2002), respectively. Consulting geologist Luc LePage, MSc, PGeo was the manager of the on-site activities for the field program and is a QP within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), under TSX guidelines.
About Silver Spruce Resources Inc.
Silver Spruce Resources Inc. is a Canadian junior exploration company pursuing development of the Pino De Plata project in western Chihuahua State, Mexico. The Company has signed a binding Letter of Intent to acquire 100% of the Melchett Lake Zn-Au-Ag project in northern Ontario, Canada and a binding Letter of Agreement to acquire 100% of the advanced Cocula gold project in Jalisco State, Mexico. Silver Spruce Resources Inc. continues to investigate opportunities that Management has identified or that have been presented to the Company for consideration.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.
Contact:
Silver Spruce Resources Inc.
Karl Boltz, President/CEO/Director
(866) 641-3397
info@silverspruceresources.com
www.silverspruceresources.com
- Published in Mining, News Home, Silver Spruce Resources
Silver Spruce Announces MOU with China University of Mining and Technology for Joint Geological Research
Momentum Public Relations
Press Release: October 29, 2019
Silver Spruce Resources Inc. (TSXV:SSE)(Frankfort:S6Q1) (“Silver Spruce” or the “Company”) is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with China University of Mining and Technology (“CUMT”) to engage in joint geological research, field work, and educational studies on Silver Spruces properties.
CUMT was founded in 1909 and is one of China’s premier mining universities, with over 30,000 students enrolled. Execution of the MOU followed a seminar at CUMT’s main campus in Xuzhou, China on October 18, 2019, when Director, Kevin R. O’Connor introduced Silver Spruce’s three current projects, and when CEO, Karl Boltz participated by live video.
“We are honored to have introduced our projects to professors and Ph.D. students at CUMT,” stated Karl Boltz, CEO of Silver Spruce. “We look forward to them visiting our properties to engage in joint research. We are hopeful the perspective that they bring to our projects and their collective network of mining contacts in China will be of benefit to Silver Spruce over the long-term.”
Under the terms of the non-binding MOU, the parties will look for mutually convenient times when professors and graduate students of CUMT can visit Silver Spruce properties to engage in joint geological research, field work, and educational exchanges.
“I was fortunate to have been introduced to CUMT by the Chairman of one of China’s largest construction equipment companies,” stated Kevin R. O’Connor, Director of Silver Spruce. “During my eleven years working in China as an attorney for multinational companies, I was involved in numerous construction and mining equipment projects. My intent is to explore additional cooperation opportunities involving China for Silver Spruce. The appetite for precious and industrial metals in China appears immense.”
About Silver Spruce Resources Inc.
Silver Spruce Resources Inc. is a Canadian junior exploration company pursuing development of the Pino De Plata project, located in the prolific Sierra Madre Occidental region of western Chihuahua State in Mexico. The Company has signed a binding Letter of Agreement to acquire 100% of the advanced Cocula gold project in Jalisco State, Mexico, and a Letter of Intent to acquire 100% of the Melchett Lake Zn-Au-Ag project in northern Ontario, Canada. Silver Spruce Resources Inc. continues to investigate opportunities that Management has identified or that have been presented to the Company for consideration.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.
Contact:
Silver Spruce Resources Inc.
Karl Boltz, President/CEO/Director
(866) 641-3397
info@silverspruceresources.com
www.silverspruceresources.com
- Published in Mining, News Home, Silver Spruce Resources
Canada Cobalt drills into visible cobalt, nickel and silver at Castle
Momentum Public Relations
Press Release: October 25, 2019
Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the “Company” or “Canada Cobalt”) is pleased to provide the following corporate update.
Underground Drilling
Multi-directional diamond drilling on the first level of the Castle Silver-Cobalt mine is expanding the footprint of massive cobalt, nickel and silver mineralization near the adit entrance where drilling last year returned high grades (refer to Nov. 2, 2018 news release).
A total of 13 drill holes have already been completed in the adit entrance area with visible mineralization noted in a majority of them. Niton XRF (X-ray fluorescence) analysis of these new holes is consistent with values reported Nov. 2, 2018, in sections over a broad area as drilling fans out to fully test the continuity of the main vein. This near vertical vein extends for a minimum of 80 meters from the adit entrance and also features sub parallel veins.
Multiple prospective areas of the first level, which extends for hundreds of meters east-west and north-south, will be tested during this second phase of underground drilling including the newly-discovered “Jackpot” zone near Shaft No. 3 that was inaccessible last year.
Cobalt grades intersected in the Castle mine (refer to Feb. 19, 2019 news release), previously only exploited for its native silver, are considered very high in a global context. From the same Castle waste material, Canada Cobalt has poured initial silver dore bars (refer to Oct. 16, 2019 news release) while its proprietary and environmentally friendly Re-2OX Process has demonstrated the ability to remove 99% of the arsenic to produce a battery grade cobalt sulphate (refer to Aug. 15, 2018 news release).
Canada Cobalt is now permitted to carry out underground blasting at Castle which will greatly assist the company’s exploration efforts during this new phase of drilling.
Castle East Update
Compelling new geological interpretations are emerging regarding deposit potential east and northeast of Castle and the Gowganda Camp’s two other past producing high-grade silver mines, Capitol and Siscoe, all located within a radius of less than two kilometers. These mines were at the narrow, shallow edge of the Nipissing diabase, and the Archean rocks to the east and the deeper parts of the Nipissing diabase (both recently shown to be very fertile) were never systematically explored.
Canada Cobalt’s surface drilling in the summer and fall of 2018 outlined a robust near-surface hydrothermal system with multi-gram gold-bearing quartz veins and a halo of disseminated nickel and copper mineralization in Archean volcanics in between the Siscoe mine, several hundred meters to the west, and a 2011 drill hole that has yet to be followed up on. This drill hole pushed through the Archean volcanics and entered the Nipissing diabase (gabbro), cutting a remarkable 40,944 grams per tonne silver (1,194 ounces per ton) as well as 0.91% cobalt over 0.45 meters within a broader core length of 3.1 meters grading 6,476 g/t silver (189 ounces per ton) and 0.14% cobalt (refer to Aug. 25, 2011 news release, Granada Gold) at a vertical depth of approximately 420 meters.
(The 2011 drilling and drill core sampling, including the quality assurance/quality control, were supervised by Mr. Doug Robinson, P.Eng. and project geologist. Core was sent to Accurassay Laboratory in Timmins, Ontario, for sample preparation and to their Thunder Bay laboratory for analysis. Silver was assayed by fire assay with AA check with additional pulp and metallics done on samples where significant silver was identified. Analytical accuracy and precision were monitored by the analysis of reagent blanks and reference materials at the lab. Quality control was further assured by the insertion of blind certified standard reference material and blanks into the sample stream at regular intervals by Mr. Robinson in order to independently assess analytical accuracy.)
Plans are underway for fresh drilling at Castle East to follow up on the high-grade discovery potential of this area. A comprehensive regional update, including a summary of last year’s results, will be provided in early November followed by planned new drilling.
Voluntary Environmental Rehab at Castle And Beaver
As an environmental leader in the Northern Ontario Silver-Cobalt Camp, Canada Cobalt is proceeding with voluntary rehabilitation at both the Castle and Beaver mines. These efforts are focused on areas where historic high-grade mining (stamp mills) left behind material believed to be metal and arsenic rich. Canada Cobalt views this opportunity for shareholders to be significant.
PolyMet Facility Acquisition
Canada Cobalt’s 90-day due diligence for the proposed acquisition of privately-held PolyMet Resources Inc. (see Oct. 10, 2019 news release) is proceeding positively and ahead of schedule. As contemplated through the binding LOI, completed at a strategic time in the precious metal cycle, the PolyMet Lab and mineral processing facility in the town of Cobalt vertically integrates Canada Cobalt and allows for multiple potential near-term revenue streams (bullion pouring, bulk sampling, commercial assaying and e-waste). This facility would be the new headquarters for Canada Cobalt and its Re-2OX Process.
Private Placement
Further to the company’s October 1, news release, Canada Cobalt is in the process of successfully completing its $1 million private placement at 35 cents per unit, and first closing is anticipated in the coming days.
Qualified Person
The technical information in this news release was prepared under the supervision of Frank J. Basa, P.Eng., Canada Cobalt’s President and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with strong exploration upside in the prolific past producing Gowganda high-grade Silver Camp of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.
“Frank J. Basa”
Frank J. Basa, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Canada Cobalt Works Inc.
View original content: http://www.newswire.ca/en/releases/archive/October2019/25/c4708.html
- Published in Canada Cobalt Works, Mining, News Home
Crystal Lake Announces Initial Diamond Drill Assay Results from Burgundy Ridge
Results Include 91.26m of 0.38% Cu, 0.30 g/t Au, 4.12 g/t Ag Near Surface on 180m Step Out
Momentum Public Relations
Press Release: October 25, 2019
Crystal Lake Mining Corporation (TSXV: CLM OTC: SIOCF FSE: SOG-FF) (“Crystal Lake” or the “Company“) is pleased to announce the results from the first two of ten drill holes in its maiden diamond drill program at Burgundy Ridge (will now be referred to as the “Ridge Zone”).
Diamond Drill Hole BRDDH19-002 (“Hole #2”) at the Ridge Zone intercepted 91.26 metres of 0.38% Cu, 0.30 g/t Au, and 4.12 g/t Ag starting at a depth of 36.7 metres. (Table 1).
Furthermore, a higher-grade core of mineralization within the 91.26 metre interval assayed 25.78 metres of 0.73% Cu, 0.63 g/t Au, 9.36 g/t Ag, and 0.11% Zn starting at 82.22 metres depth.
The first Diamond Drill Hole BRDDH19 001 (“Hole #1”) drilled on the Ridge Zone also intercepted high-grade Cu-Au-Ag mineralization with an interval of 4.66 metres at 1.35% Cu, 0.72 g/t Au, 9.04 g/t Ag, and 0.17% Zn within a broader mineralized intercept of 59.00 metres of 0.28% Cu, 0.16 g/t Au, and 2.44 g/t Ag starting at a depth of 21.00 metres downhole (Table 1).
Highlights
- BRDDH19 002 (Hole #2 on the Ridge Zone): 91.26 metres of 0.38% Cu, 0.30 g/t Au, 4.12 g/t Ag starting at 36.67 metres (Table 1).
- Including 25.76 metres of 0.73% Cu, 0.63 g/t Au, 9.36 g/t Ag, and 0.11% Zn starting at 82.22 metres.
- Both Hole #1 & Hole #2 (BRDDH19 001 and BRDDH19 002) intersected copper, gold, silver, and zinc rich mineralization on a 180-metre step out from 2018’s Reverse Circulation (“RC”) drilling, and a ~40 to 85 metres down dip separation.
- A total of 7 samples (both within and outside of highlighted intervals) returned assays of >1% Cu (Table 2).
- Assays remain pending on 8 of 10 diamond drill holes completed at the Ridge Zone in 2019.
- The system remains open in all directions and at depth.
TABLE 1
BRDDH19-001 |
From (m) |
To (m) |
Interval |
Cu (%) |
Au (g/t) |
Ag (g/t) |
Zn (%) |
Intercept |
21.00 |
80.00 |
59.00 |
0.28 |
0.16 |
2.44 |
0.04 |
Including |
75.3 |
79.96 |
4.66 |
1.35 |
0.72 |
9.04 |
0.17 |
Intercept |
125.52 |
144.30 |
18.78 |
0.31 |
0.18 |
6.00 |
0.35 |
BRDDH19-002 |
From (m) |
To (m) |
Interval |
Cu (%) |
Au (g/t) |
Ag (g/t) |
Zn (%) |
Intercept |
36.67 |
127.93 |
91.26 |
0.38 |
0.30 |
4.12 |
0.06 |
Including |
69.00 |
108.00 |
39.00 |
0.62 |
0.52 |
7.22 |
0.09 |
Including |
82.22 |
108.00 |
25.78 |
0.73 |
0.63 |
9.36 |
0.11 |
Discussion
The second diamond drill hole BRDDH19-002 at the Ridge Zone, did not make it to its final target and collapsed at a depth of 147 metres due to bad ground conditions, 203 metres short of its target depth of 350 metres for the first-pass drilling.
The Ridge Zone is part of the larger Burgundy Trend, an area that received its first ever drilling on October 2018 via RC drilling (see March 7th, 2018 release). The drill pad (“Pad A1”), from which Diamond Drill Hole BRDDH19-001 (“Hole #1”) and Drill Hole BRDDH19-002 (Hole #2) were completed, is a 180-metre step out from the 2018 RC drilling location.
At the Ridge Zone mineralization vectored into a zinc-rich zone of the system SE of the collar location in Hole #1 (BRDDH19-001) with 18.78 metres of 0.31% Cu, 0.18 g/t Au, 6.00 g/t Ag, and 0.35% Zn starting at 125.52 metres. Higher grade zinc intercepts up to 1.32% Zn, 0.50% Cu over 2.00 metres and 0.72% Zn, 0.27% Cu over 1.55 metres sit within a broader 74.5 metre zinc-enriched horizon.
A seventh high-grade copper intercept was encountered below the zinc horizon in Hole #1 (BRDDH19-001) with 1.85 metres of 1.04% Cu, 0.17 g/t Au, 4.78 g/t Ag, and 0.24% Zn (Table 2). This is synonymous with high-grade copper mineralization intersected in 2018 RC drilling more than 200 metres away down plunge.
TABLE 2: Summary of high-grade copper intercepts
BRDDH19-001 |
BRDDH19-002 |
1.82 metres of 1.04% Cu @ 67.05 m |
1.00 metres of 1.07% Cu @ 82.22 m |
2.27 metres of 1.53% Cu @ 75.30 m |
2.80 metres of 1.04% Cu @ 90.20 m |
2.39 metres of 1.17% Cu @ 77.57 m |
2.00 metres of 1.16% Cu @ 104.00 m |
1.85 metres of 1.04% Cu @ 196.00 m |
Maurizio Napoli, President / CEO of Crystal Lake commented: “We are happy with the results from the first two diamond drill holes drilled by any company at Burgundy Ridge (Ridge Zone). The grade and length of these intercepts is considerable given the two drill holes are shallow test holes in an area not previously tested by diamond drilling. The fact that mineralization is near surface unlike many deposits in the area is also a critical factor. Given our significant drilling step outs and stronger visual sulphide mineralization in holes that still have pending assay results on another >250-metre step out, we are pleased with the size of the system that we are starting to delineate on the Burgundy Trend.”
This new drilling data in conjunction with dense hyperspectral, alteration, lithology, structural and surface data indicates that much of the widespread copper, gold, silver, and zinc mineralization at surface and open to a minimum depth of 147 metres is likely a “skarn” mineralization zone that is part of a multi-kilometre copper, gold, and silver-rich alkalic porphyry system in the greater Burgundy Trend.
Cole Evans, President / CEO of HEG commented: “Many of the world-class porphyry deposits throughout the Pacific Ring of Fire have skarn components similar to our early observations at the Ridge Zone of the Burgundy Trend. There are many “pimple skarns” in the Golden Triangle, but what makes Burgundy Ridge exciting are the initial indications of substantial size. We have made ~200 metre step outs and have intersected similar copper, gold, silver, and zinc mineralization across the Ridge Zone. It takes a large, hot, and hydrous intrusion to drive the kind of fluids needed for these conditions. Most of the world’s copper and gold comes from porphyry deposits.”
The Burgundy Trend is Close to Major Infrastructure
The Burgundy Trend is located less than 20kms from the 303-megawatt AltaGas hydroelectric power facility completed in 2015. Manulife Financial and Axium Infrastructure purchased 90% of the project for net proceeds of $1.37 billion USD in 2018. The 72-megawatt Mclymont Creek Hydroelectric Plant and access road sit on the southern boundary of the Newmont Lake Project. The road which was constructed for access to these hydroelectric facilities skirts the southern boundary of Crystal Lake’s Newmont Lake property. Additionally, the Galore Creek access road runs through the northern portion of the Newmont Lake Property.
Newmont Lake ‘Project Phase 1 Exploration Programs’ Highlights – Three New Surface Discoveries Expand and Infill the Greater Burgundy Trend
Rapidly receding glaciers at Burgundy continue to expose new mineral showings on surface. Three new surface showings of significance were discovered in 2019 that were previously covered by ice and snow. These showings range from potassic altered, chalcopyrite mineralized megacrystic syenites, to hydrothermal chalcopyrite and sphalerite cement breccias with potassic altered, chalcopyrite mineralized clasts observed discontinuously over a 1,100-metre strike length.
On the southeastern end of Burgundy Ridge, a continuous 37 metre surface channel sample was taken crosscutting a sulphide-rich cemented hydrothermal breccia and 10 to 30-centimetre chalcopyrite veins at the newly exposed Green Rock showing across the general mineralization trend. The channel sample ended in strong sulphide mineralization at 37.00 metres due to snow cover. Assay results from this channel sample are pending.
Resignation of Richard Savage from Board of Directors
Mr. Richard Savage has tendered his letter of resignation from the Board of Directors of Crystal Lake Mining Corporation as of October 24th, 2019 to pursue new interests. Maurizio Napoli, CEO and President will replace him on the Board of Directors.
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Maurizio Napoli, P. Geo., CEO/President for Crystal Lake Mining, a Qualified Person responsible for the scientific and technical information contained herein under National Instrument 43-101 standards.
About Crystal Lake Mining
Crystal Lake Mining is a Canadian-based junior exploration company focused on building shareholder value through high-grade discovery opportunities in British Columbia and Ontario. The Company has an option to earn a 100% interest in the Newmont Lake Project, one of the largest land packages among juniors in the broader Eskay region in the heart of Northwest B.C.’s Golden Triangle.
On Behalf of the Board of Directors,
CRYSTAL LAKE MINING CORP.
“Maurizio Napoli”
President & CEO
Email: info@crystallakemining.com
Cautionary Statement of Photo Gallery:
Please note the visualizations are selected images highlighting strong visual mineralization from a variety of new showings and recent diamond drill core. Mineral identification has been determined visually by geologists and cross-referenced via mobile X-ray Fluorescence elemental geochemical techniques (ThermoScientific Niton XL5 pXRF). Portable XRF data is not provided as it is not an indicator of representative geochemistry of the entire rock mass. The reader should also note that while relative spatial information is provided, mineralization is not necessary representative of space between any given location and it should not be assumed that lateral continuity exists. The reader is encouraged to exercise caution, due their due diligence, and determine their own conclusions with the information provided.
QAQC/ Analytical Procedures
Rock samples from the Newmont Lake Project were sent to MSA LABS’ preparation facility in Terrace, B.C., where samples were prepared using method PRP-910. Samples were dried, crushed to 2mm, split 250g and pulverized to 85% passing 75 microns. Prepped samples were sent to MSA LABS’ analytical facility in Langley, B.C, where 50g pulps were analyzed for gold using method FAS-121 (fire assay-AAS finish). Gold assays greater than 100 g/t Au were automatically analyzed using FAS-425 (fire assay with a gravimetric finish). Rock samples were analyzed for 53 elements using method IMS-230, multi-element ICP-MS 4-acid digestion, ultra-trace level. Silver assay results greater than 100 g/t Ag and cobalt, copper, nickel, lead and zinc greater than 10,000ppm were automatically analyzed by ore grade method ICF-6.
Crystal Lake Mining conducts its own QA/QC program where three standard reference material pulps, two blank reference material samples are inserted for every 100 samples when analyzing rock samples.
Soil samples from the Newmont Lake Project were sent to MSA LABS’ preparation facility in Terrace, B.C., where samples were prepared using method PRP-757. Soil samples were dried and screened to 80 mesh, discard plus fraction. Prepped samples were sent to MSA LABS’ analytical facility in Langley, B.C, where they were analyzed for 51 elements using IMS-131 for samples with 20g or greater and IMS-130 for samples between 0.5g and 20g.
Crystal Lake Mining conducts its own QA/QC program where three standard reference material pulps, two blank reference material pulps are inserted for every 100 samples when analyzing soil samples.
Forward-Looking Statement
This news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Crystal Lake Mining Corporation
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