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Clean Air Metals Drill Results from the Thunder Bay North Project includes 31.0m averaging 3.9 g/t Pt, 5.1 g/t Pd, 1.7% Cu, 0.63% Ni. 2022 drilling set to restart

Clean Air Metals Inc. (“Clean Air Metals” or the “Company“) (TSXV: AIR) (FRA: CKU) (OTCQB: CLRMF) is pleased to announce new assay results from the 2021 drill campaign from the Escape and Current PGE-Cu-Ni Deposits at the Company’s Thunder Bay North Project near Thunder Bay, Ontario, Canada (the “Project“). Drilling operations are set to resume on January 6, 2022.

New assays from the Escape South High Grade Zone includes (Table 1):

  • Hole ELR21-083A which intersected 46.0m grading 19.6 g/t PtEq1 composed of 3.03g/t Platinum (Pt), 3.94g/t Palladium (Pd), 1.33% Copper (Cu) and 0.51% Nickel (Ni) from 399.0-445.0m downhole including 31.0m grading 25.0 g/t PtEq composed of 3.90 g/t Platinum (Pt), 5.10g/t Palladium (Pd), 1.70% Copper (Cu) and 0.63% Nickel (Ni) from 405.0-436.0m downhole (Figure 1).

The Escape Deposit underwent 37,000m of expansion drilling in 2021, which is expected to add materially to the maiden Indicated resource of 849,481 ounces PtEq (6.16 g/t PtEq in 4.28 million tonnes) reported January 20, 2021. The Current Deposit 2.5km to the east (Figure 2) has a well-defined Indicated mineral resource of 2,233,575 PtEq ounces (5.79 g/t PtEq in 11.99 million tonnes).

Mineral resource endowment and platinum-equivalents are quoted pursuant to the Technical Report and Mineral Resource Estimate for the Thunder Bay North Project, Thunder Bay, Ontario, with an effective date of January 20, 2021 (the “Technical Report“). The Technical Report was posted to SEDAR March 4, 2021 and prepared by Nordmin Engineering Ltd.- QP Glen Kuntz, P.Geo. Ontario. Platinum-equivalent1 calculations in Table 1 are affected by the updated CRU 2-year trailing average metal price assumptions2 utilized for the new Preliminary Economic Assessment reported on December 1, 2021.

______________________

1 Palladium equivalency formula can be viewed in the following Link (Click Here) 

2 CRU 2-year metal price assumptions can be viewed in the following Link (Click Here)

Preliminary Economic Assessment (PEA)

The Company announced a robust mine plan and cashflow model as part of a PEA for the Current and Escape PGE-Cu-Ni Deposits of the Thunder Bay North Project on December 1, 2021. The related Technical Report is expected to be filed on SEDAR by January 14, 2022.

Table 1: New Assay Results Update – Thunder Bay North Project (Figures, 1,2)

Hole ID

From, m

To,       m

Length,      m

Pt+Pd (g/t)

Cu+Ni (%)

Pt     (g/t)

Pd (g/t)

Cu    (%)

Ni    (%)

Pt eq.

ELR21-083A

364

366

2.0

1.11

0.40

0.48

0.63

0.22

0.18

3.8

ELR21-083A

399

445

46.0

6.97

1.84

3.03

3.94

1.33

0.51

19.6

**incl.

405

436

31.0

8.99

2.33

3.90

5.10

1.70

0.63

25.0

ELR21-084

233.75

235

1.3

1.86

0.13

0.89

0.98

0.07

0.06

3.8

ELR21-087A

373

393

20.0

2.89

0.73

1.33

1.56

0.54

0.20

8.1

ELR21-088

240

246

6.0

2.81

0.77

1.30

1.51

0.51

0.26

8.1

CL21-027

126

135

9.0

1.48

0.34

0.76

0.73

0.17

0.17

4.0

CL21-027

183

185

2.0

1.54

0.46

0.76

0.79

0.22

0.24

4.7

CL21-028

223

226.13

3.1

2.90

0.47

1.53

1.37

0.27

0.21

6.8

CL21-029

149

151

2.0

1.19

0.35

0.62

0.58

0.16

0.19

3.6

CL21-029

213

215

2.0

1.30

0.34

0.68

0.62

0.15

0.19

3.7

CL21-029

220

228.49

8.5

2.14

0.45

1.14

1.01

0.25

0.20

5.6

CL21-030

145

147

2.0

2.25

0.48

1.14

1.11

0.30

0.19

5.9

CL21-030

196

198

2.0

1.62

0.35

0.84

0.79

0.15

0.20

4.4

CL21-030

216

220

4.0

2.04

0.51

1.06

0.98

0.26

0.25

5.7

CL21-032

270

282

12.0

1.91

0.76

0.96

0.95

0.47

0.30

6.5

CL21-033

294

295.97

2.0

3.67

0.88

1.90

1.77

0.55

0.33

9.8

CL21-034A

292

294

2.0

2.24

0.43

1.18

1.06

0.20

0.23

5.7

CL21-034A

298

300

2.0

1.08

0.29

0.55

0.53

0.10

0.19

3.3

Note:

1)

All intercepts are estimated to be >95% of true width based on drill hole inclination

2)

Mineralized intervals calculated at 1 ppm Pt+Pd cutoff

Abraham Drost, CEO of Clean Air Metals stated that “step-out drilling on the margins of the Escape South High Grade Zone (HGZ) continues to deliver impressive assay results. Under the results of the recent PEA press release, the Escape South High Grade Zone (HGZ) (>5g/t Pt+Pd) is identified as a high value potential mining area at the base of the Escape Deposit in years 5 and 6 of the PEA mine plan, pursuant to the recently delivered PEA press release (December 1, 2021).

There is a total of 37,000m of previously reported drilling results from the Escape Deposit in 2021 which not yet applied to the mineral resource for the Thunder Bay North Project. Assay results to date, along with the 2000m of core in the lab still awaiting assay, suggest good continuity of mineralization between sections along the 900m trend of mineralization between the Escape South High Grade Zone (HGZ) (>5g/t Pt+Pd) and Steepledge South Zone (Figure 1).

The high-grade Lower Current and Bridge Zones of the upper Current Deposit achieved a 90% conversion rate from Indicated to potentially minable mineral resource for Years 1-4 within the recently disclosed PEA mine plan, as defined by a mining shape optimizer (MSO) algorithm. An additional 10,000m of infill drilling in the lower Current Deposit is planned to improve drill density to support application of the MSO algorithm along trend (Figure 2), in the attempt to add additional mineable material to the PEA.

Up to 16,000m of drilling is also planned to commence in mid-January 2022 on frozen muskeg to follow up on certain discrete geophysical anomalies. These may represent the occurrence of low resistivity, high conductivity massive sulphide material at the base of the Escape and Current deposits within the Escape Lake Fault Zone corridor, consistent with the Norilsk mineral deposit model used by the Company in Thunder Bay North magma conduit system.”

Please see the links below for Figures 1 and 2.

Figure 1: 2021 Drill Hole Intercepts in the Escape Deposit Area – Link (Click Here)

Figure 2: 2021 Drill Hole Intercepts in the Current Deposit Area – Link (Click Here)

COVID Policy

Clean Air Metals continued to apply COVID-19 avoidance and personal protection measures for its geological staff, drilling contractor and service suppliers during the third quarter and has had zero occurrences of COVID-related illness year to date. Personnel are required to maintain physical distance, use Personal Protective Equipment (PPE), self-monitor and self-isolate or elect to work from home. Management had previously eliminated plans for a camp setup to service a planned diamond drill campaign on the Escape deposit. The Company is aware of Thunder Bay Health Unit guidelines that provide for “mandatory” self-isolation for returning overseas.

Mineral Exploration and Development has been deemed an essential service in the Province of Ontario (http://www.netnewsledger.com/2020/03/23/ontario-covid-19-business-allowed-to-remain-open-list-march-23-2020/).

The Company has procured the services of a locally staffed and serviced diamond drilling contractor to complete the diamond drilling programs.

Qualified Person

Dr. Geoff Heggie, Ph.D., P.Geo., a Qualified Person under National Instrument 43-101 and Exploration Manager for the Company, has reviewed and approved all technical information in this press release.

Quality Assurance/Quality Control

Clean Air Metals uses ALS Global (“ALS“), a well-established and recognized mineral assay and geochemical analytical services company. The Thunder Bay laboratory holds ISO-9000 accreditation; the Vancouver facility holds ISO-17025 registration.

All NQ-sized drill core is cut with a diamond-tipped saw blade with half of the core submitted to ALS for sample preparation and analysis.  Core samples from selected intervals are individually bagged and tagged, gathered up in larger sealed poly bags and shipped to the sample prep facility in Thunder Bay, ON under custody of Clean Air Metals’ personnel at all times. Sample preparation is completed at the ALS sample preparation facility located in Thunder Bay, ON and analysis is completed at the primary ALS assay laboratory located in Vancouver, B.C.

Clean Air Metals follows a documented quality control procedure for its core assay sampling program consisting of the insertion of blind blanks, duplicates, and certified Palladium-Platinum and Copper-Nickel standards into the sample stream.  The insertion procedure results in a minimum of 11% to 12% control sample frequency depending on the length of the sampled interval.

Gold, platinum, and palladium are analyzed using fire assay (FA) with an inductively coupled plasma mass spectrometry (ICP-MS) finish.  Samples with grades above the optimal ICP-MS detection limits are analyzed using an optical emission spectroscopy method (ICP-OES).

Also, thirty-three (33) elements of each sample, including copper, nickel, silver, chromium, cobalt, and sulphur, are analyzed by a multi-element analytical method using the atomic emission spectroscopy (ICP-AES) technique following four-acid digestion of the sample. When samples have grades above the optimal detection limits for this analytical method, they are re-analyzed using a high-grade method consisting of either ICP-AES or atomic absorption spectrometry (AAS) techniques.

Social Engagement

Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay North Project is on the traditional territories of the Fort William First Nation, Red Rock First Nation and Biinjitiwabik Zaaging Anishinabek. The parties together are the Cooperating Participants in a Memorandum of Agreement dated January 9, 2021.

The Company appreciates the opportunity to work in these territories and remains committed to the recognition and respect of those who have lived, traveled, and gathered on the lands since time immemorial. Clean Air Metals is committed to stewarding Indigenous heritage and remains committed to building, fostering and encouraging a respectful relationship with First Nations, Métis, and Inuit peoples based upon principles of mutual trust, respect, reciprocity and collaboration in the spirit of reconciliation.

About Clean Air Metals Inc.

Clean Air Metals’ flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Thunder Bay North Project hosts the twin magma conduit bodies which host Current and Escape deposits forming the basis for a positive preliminary economic assessment around a ramp access underground mine reported December 1, 2021. Executive Chairman Jim Gallagher and CEO Abraham Drost lead an experienced team of geologists and engineers who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development studies at Thunder Bay North. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.

ON BEHALF OF THE BOARD OF DIRECTORS

“Abraham Drost”

Abraham Drost, Chief Executive Officer of Clean Air Metals Inc.

Neither the 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.

Cautionary Note

The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation, including statements regarding the potential of the Thunder Bay North Project and the Escape and Current deposits and timing of technical studies (include the preliminary economic assessment) and mineral resource estimates. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company’s expectations or projection.

SOURCE Clean Air Metals Inc.

For further information: please contact: Abraham Drost, Chief Executive Officer of Clean Air Metals Inc., Phone: 807-252-7800, Email: adrost@cleanairmetals.ca, Website: www.cleanairmetals.ca

Related Links

https://www.cleanairmetals.ca/

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Clean Air Metals Files Third Quarter 2021 Interim Financial Statements

Clean Air Metals Inc. (“Clean Air Metals” or the “Company“) (TSXV: AIR) (FRA: CKU) (OTCQB: CLRMF) announces that it has filed its condensed consolidated interim financial statements and management’s discussion and analysis for the nine-month period ended October 31, 2021, available for viewing on www.sedar.com.

Q3 Financial Highlights

  • Total assets as at October 31, 2021 of $36,713,683
  • Total cash as at October 31, 2021 of $4,597,966
  • Working capital as at October 31, 2021 of $1,909,343
  • Shareholder’s equity as at October 31, 2021 of $31,107,210

During the nine-month period ended October 31, 2021 as previously reported, the Company:

  • Continued with a planned 45,000m diamond drill program in 2021 with two drills at the Thunder Bay North project, with a focus on systematic step-outs between resource centers within the Escape Lake Deposit to add to the 505,369 oz palladium equivalent (PdEq) indicated mineral resource at 3.67g/t PdEq in 4,286,220 tonnes, published on January 20, 2021.
  • Conducted additional resource delineation drilling at the adjacent Current Lake deposit, building on the indicated mineral resource of 1,328,789 oz PdEq at an average grade of 3.44 g/t PdEq in 11,999,177 tonnes, defined in the mineral resource update dated January 20, 2020.
  • Continued with metallurgical studies as a precursor to smelter offtake analysis and underground mine modelling as key inputs into a Preliminary Economic Assessment of the Current Lake Deposit scheduled for completion and disclosure in Q4/2021.

Mineral resource estimates for both the Escape and Current deposits are reported pursuant to the January 20, 2021 NI 43-101 Technical Report and Mineral Resource Estimate for the Thunder Bay North Project, Thunder Bay, Ontario, prepared by Nordmin Engineering Ltd. with QP Glen Kuntz, P.Geo, as posted to SEDAR on March 4, 2021.

Financial Summary

For the three months ended

For the nine months ended

October 31,

2021

October 31,

2020

October 31,

2021

October 31,

2020

Operating Expenses

$    1,056,915

$     620,791

$      3,045,788

$      3,144,889

Net Income (Loss) and
Comprehensive Income (Loss)

(43,617)

(608,334)

(885,959)

(898,235)

Earnings (Loss) per share –
Basic and Diluted

$            (0.00)

$            (0.00)

$             (0.01)

$             (0.01)

October 31,

2021

January 31,

2021

Total Assets

$     36,713,683

$     27,146,884

Total Liabilities

5,606,473

3,923,352

Total Shareholders’ Equity

$     31,107,210

$     23,223,532

Full details of the financial reports and operating results for the nine-month period ended October 31, 2021 are described in the Company’s condensed consolidated interim financial statements with accompanying notes and related Management’s Discussion and Analysis, available on SEDAR at www.sedar.com.

COVID Policy
Clean Air Metals continued to apply COVID-19 avoidance and personal protection measures for its geological staff, drilling contractor and service suppliers during the third quarter and has had zero occurrences of COVID-related illness year to date. Personnel are required to maintain physical distance, use Personal Protective Equipment (PPE), self-monitor and self-isolate or elect to work from home. Management had previously eliminated plans for a camp setup to service a planned diamond drill campaign on the Escape Lake Project. The Company is aware of Thunder Bay Health Unit guidelines that provide for “mandatory” self-isolation for returning overseas.

Mineral Exploration and Development has been deemed an essential service in the Province of Ontario (http://www.netnewsledger.com/2020/03/23/ontario-covid-19-business-allowed-to-remain-open-list-march-23-2020/).
The Company has procured the services of a locally staffed and serviced diamond drilling contractor to complete the diamond drilling programs.

Qualified Person
Mr. Geoff Heggie, P.Geo. a Qualified Person under National Instrument 43-101 and Exploration Manager of the Company, has reviewed and approved all technical information in this press release.

Social Engagement
Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay North Project is on the traditional territories of the Fort William First Nation, Red Rock First Nation and Biinjitiwabik Zaaging Anishinabek. The parties together are the Cooperating Participants in a Memorandum of Agreement dated January 9, 2021.

The Company appreciates the opportunity to work in these territories and remains committed to the recognition and respect of those who have lived, traveled, and gathered on the lands since time immemorial. Clean Air Metals is committed to stewarding Indigenous heritage and remains committed to building, fostering and encouraging a respectful relationship with First Nations, Métis, and Inuit peoples based upon principles of mutual trust, respect, reciprocity and collaboration in the spirit of reconciliation.

About Clean Air Metals Inc.
Clean Air Metals’ flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Thunder Bay North Project hosts the twin magma conduit bodies which host Current Lake and Escape Lake deposits forming the basis for a positive preliminary economic assessment around a ramp access underground mine reported December 1, 2021. Executive Chairman Jim Gallagher and CEO Abraham Drost lead an experienced team of geologists and engineers who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development studies at Thunder Bay North. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.

ON BEHALF OF THE BOARD OF DIRECTORS

Abraham Drost

Abraham Drost, Chief Executive Officer of Clean Air Metals Inc.

Neither the 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.

Cautionary Note

The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration

or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses; results of technical studies, benchmark reports, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue

certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company’s expectations or projections.

SOURCE Clean Air Metals Inc.

For further information: Abraham Drost, Chief Executive Officer of Clean Air Metals Inc., Phone: 807-252-7800, Email: adrost@cleanairmetals.ca, Website: www.cleanairmetals.ca

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Renforth is Drilling Victoria West Nickel/Copper/Cobalt/Zinc Stripped Area at Surimeau District Property in NW Quebec

Renforth Resources Inc. (CNSX:RFR.CN) (OTC:RFHRF) (FSE:9RR) (“Renforth” or the “Company”) is pleased to inform shareholders that drilling is underway under visual surface nickel, copper, cobalt and zinc mineralization previously stripped at our Victoria West target, within our 260 km2 property, contiguous to the Canadian Malartic Mine in Malartic, Quebec.

  • 2 of 3 planned drill holes in the eastern end complete at dips of -45 and -60 degrees, extending visual nickel, copper, cobalt and zinc to 100 vertical metres below the stripped area, confirmed with an XRF
  • 3 holes planned in the western end
  • 1 or 2 holes planned in centre under large intrusive mound

“We took the opportunity to immediately follow up on our successful stripping program at Victoria West with a targeted drill program ahead of the holidays in the eastern and the western ends of the stripped area at Victoria West.  We are drilling two areas which gave the strongest visual mineralization and XRF field results in our previously announced, recently completed channeling program. It is always a good day when the drill is turning, in this case on one of our battery metals (nickel and cobalt) and sulphide (copper and zinc) targets on our Surimeau District Property, advancing this project, endowed with critical and strategic minerals, as quickly as we can” states Nicole Brewster, President and CEO of Renforth.

Drilling is taking place in the eastern and the western ends of the ~275m stripped strike of the 2.2km mineralized strike which Renforth has drilled within the known 5km strike of the Victoria West target at Surimeau.  At each set up three drill holes are being drilled to undercut the surface mineralization at -45, -60 and -80 degrees dip in order to test for continuity of mineralization down dip, which, if successful, may extend mineralization as deep as 120 vertical metres. Renforth also plans to test the centre of the stripped area, where a secondary intrusive separated the main shear zone, this will be done with one or two drill holes.

The best visual mineralization has so far been observed within strongly albitized calc-silicate altered zones within the ultramafics where frequent fine to coarse stringers, disseminations, and occasionally semi-massive sulfides, including pyrite, pyrrhotite, pentlandite, sphalerite, and chalcopyrite. Mineralization in the form of fine to coarse stringers and nodules of sulfide has also been observed in drill core in narrow graphitic bands at the ultramafic-sedimentary contacts.

 

Current Surimeau District Activities

 

The following are currently ongoing:

 

1 – Assay results from the beginning of the trenching/channeling at Victoria West have begun to be received, they will be released at once upon receipt of all the results

2 – Renforth has contracted an EM/Mag survey to cover the entire 20km Victoria West/Colonie magnetic feature and to extend ~4km to the north of Victoria West to include the Lalonde mineralized target.

3 – Drill core sample material is being selected for additional assaying to determine what degree of platinum group element mineralization is present. The only testing for platinum and palladium carried out to date was on the initial surface prospecting samples taken from the Colonie, LaLonde and Victoria West areas in June 2020 which gave positive assay results, demonstrating these metals are present at each location.

 

Current Parbec Gold Deposit Activities

 

The following are currently ongoing;

 

1 – Our deposit model on sections is being updated by our geologists with the results from the >15,000m of drilling completed earlier this year.

2 – This process is highlighting additional sampling which needs to be carried out. As we have previously stated it is difficult to visually assess the presence of gold in Parbec drill core, with rare exception. This leads to areas not being sampled, which we now know need to be sampled based on recent results. We will do the additional sampling as soon as possible. If this sampling results in gold results it will positively impact our deposit model.

3 – Renforth has commenced discussions with  a group of consultants who come well recommended, to commence to process of carrying out a structural study at Parbec in order to learn the controls on the magnetic diorite mineralization at Parbec and the diorite splay into the Pontiac.

Historically the East Malartic and Barnat deposits, now part of Canadian Malartic and located ~6.5 km along strike on the Cadillac Break, indicate a close association with magnetic diorite, feldspar porphyries, shear zones and gold trends. Structurally, gold deposits in this environment are controlled by strike slip faults and shear zones which follow varied strikes and dips. Mineralized volumes have been described by various authors as lozenge lenses not always attached to main structures, the gold mineralization is sulfides poor and contained in quartz-carbonate filled fracture systems.1

 

Technical disclosure in this press release has been reviewed and approved by Francis R. Newton P.Geo (OGQ#2129), a “qualified person” pursuant to NI 43-101.

 

1 excerpted from an internal memo “SUMMARY: The Parbec Project, Malartic: Signature and Targeting”, Martin Demers P.Geo (OGQ#770), a “qualified person” pursuant to NI 43-101.

 

For further information please contact:

Renforth Resources Inc.

Nicole Brewster

President and Chief Executive Officer

C:416-818-1393

E: nicole@renforthresources.com

#Unit 1B – 955 Brock Road, Pickering ON L1W 2X9

 

Follow Renforth on Facebook, LinkedIn and Instagram!

 

About Renforth

Renforth wholly owns the ~260 km2 Surimeau District Property, which hosts numerous areas of polymetallic and gold mineralization, each with various levels of exploration, as well as a significant amount of unexplored ground. Victoria West has been drilled over a strike length of 2.2km, within a 5km long mineralized structure, proving nickel, copper, zinc and cobalt mineralization, in the western end of a 20km magnetic anomaly. The Huston target, during initial reconnaissance, resulted in a grab sample grading 1.9% Ni, 1.38% Cu, 1170 ppm Co and 4 g/t Ag. In addition to this the Lalonde, Surimau and Colonie Targets are all polymetallic mineralized occurrences which, along with various gold showings, comprise the areas of potential of this NSR free property.

 

In addition to the Surimeau District battery metals property Renforth wholly owns the Parbec Gold deposit, a surface gold deposit contiguous to the Canadian Malartic Mine property in Malartic, Quebec. In 2020/21 Renforth completed 15,569m of drilling which successfully twinned certain historic holes, filled in gaps in the resource model with newly discovered gold mineralization and extended mineralization deeper. Based upon the success of this significant drill program the Company considers the spring 2020 MRE, with a resource estimate of 104,000 indicated ounces of gold at a grade of 1.78 g/t Au and 177,000 inferred ounces of gold at a grade of 1.78 g/t Au to be out of date. With the new data gained Renforth will undertake to complete the first ever structural study of the mineralization at Parbec, as well as additional total metallic assay work in order to better contextualize the nugget effect on the gold mineralization.

 

Renforth also holds the Malartic West property, the site of a copper/silver discovery, and Nixon-Bartleman, west of Timmins Ontario, with gold present on surface over a strike length of ~500m.

 

No securities regulatory authority has approved or disapproved of the contents of this news release.

 

Forward Looking Statements

 

This news release contains forward-looking statements and information under applicable securities laws.  All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as ‘may’, ‘will’, ‘plan’, ‘expect’, ‘believe’, ‘anticipate’, ‘estimate’, ‘intend’ and similar words referring to future events and results. Such statements and information are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary approvals, licenses and permits and the availability of financing, as described in more detail in the Company’s securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Forward-looking information speaks only as of the date on which it is provided and the Company assumes no obligation to revise or update these forward-looking statements except as required by applicable law.

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Clean Air Metals Announces a PEA of the Current and Escape PGE-Cu-Ni Deposits of the Thunder Bay North Project, with post-tax NPV5 of C$378m, IRR 29.8%

Clean Air Metals Inc. (“Clean Air Metals” or the “Company“) (TSXV: AIR) (FRA: CKU) (OTCQB: CLRMF) is pleased to announce results from an independent Preliminary Economic Assessment (PEA) that was completed for its Thunder Bay North Platinum Group Element (PGE) – Copper (Cu) – Nickel (Ni) Project (“Thunder Bay North” or the “Project”) near Thunder Bay, Ontario, Canada. The PEA was prepared by Nordmin Engineering Ltd. (“Nordmin”) of Thunder Bay, Ontario, and includes a new stand-alone milling complex and waste storage facility (WSF) with mill feed from both the Current deposit and the Escape deposit, part of the Thunder Bay North Project Mineral Resource Estimate as amended, that was completed by Nordmin (see press release dated January 20, 2021). All amounts are in CAD dollars, unless otherwise stated. Summary results of the PEA are shown below in Table 1.

The PEA was independently prepared by Mr. Glen Kuntz, P.Geo., Mr. Kurt Boyko, P.Eng. and Mr. Brian Wissent, P.Eng. of Nordmin, Mr. Lyn Jones, P.Eng. of Blue Coast Research, Mr. Wilson Muir, P.Eng. of Knight Piésold Ltd., Mr. Kris Tuuttila P.Geo. (Limited) of DST Consulting, and Dr. Geoff Heggie, Exploration Manager of Clean Air Metals, who are considered “Qualified Persons” under National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical disclosure in this news release is based upon the information in the PEA prepared by or under the supervision of Mr. Kuntz, Mr. Boyko, Mr. Wissent, Mr. Jones, Mr. Muir, Mr. Tuuttila, and Dr. Heggie.

Project Metrics (Table 1)

  • The Project has a pre-tax net present value (NPV) of $425.0 million, and after-tax NPV of $378.4 million, at a 5% discount rate.
  • The pre-tax internal rate of return (IRR) is 31.1%, and the after-tax IRR is 29.8%.
  • The capital payback is 2.4 years from start of production.
  • Revenue’s average $239.8 million per year from sale of PGE and Copper mineral concentrates.
  • Total mined metal production over a 10-year mine life based on the present resource base is expected to be 629 k oz Platinum, 618 k oz Palladium, 111 M pounds Copper, 57 M pounds Nickel, 38 k oz Gold, 850 k oz Silver, or 2,886 k oz PtEq1.
  • 65.2% of total mineral production occurs in the first 5 years.
  • Operating margin of 59% in the first 5 years and Life-of-Mine Operating margin of 53%.
  • The Project is located in close proximity to key infrastructure near the City of Thunder Bay, Canada.
  • Base case economics were calculated using a 2-yr trailing average price deck (Table 2)

___________

1 

Equivalency formula can be viewed in the following Link (Click Here)

PEA Key Metrics

Table 1: Key Financial and Project Metrics

Project Metric

Units

Value

Pre-tax NPV @ 5%

$M

$425.04

After-tax NPV @ 5%

$M

$378.38

Pre-tax IRR @ 5%

% (real)

31.1

After-tax IRR @ 5%

% (real)

29.8

Payback Period from start of production

Years

2.4

Initial Capital Expenditure (“Capex”)

$M

$367.17

Initial EPCM / Indirects (incl. in Capex)

$M

$41.16

Initial Contingency (incl. in Capex)

$M

$60.20

Maximum Production Rate

Mtpa

1.3

Mine Life

Years

10

Ramp-up Years

Years

1

Long-hole Open Stoping Mill Feed

kt

10,338

Drift and Fill Mill Feed

kt

1,946

Total Mill Feed

kt

12,284

Life of Mine Mill Feed Grade

EqPt (g/t)

7.3

Total Revenue

$M

$2,245

Total Operating Costs

$M

$1,057

Pre-tax Operating Cashflow

$M

$1,188

Total Capital

$M

$536

Net Smelter Return (NSR)

$/tonne mill feed

$178.02

Operating Margin

%

53%

Operating Costs

Underground Mine Operating Costs

$/t mill feed

$47.37

Processing Plant / WSF

$/t mill feed

$25.03

General and Administration (G&A) Costs

$/t mill feed

$6.87

Royalties

$/t mill feed

$2.63

Transportation to Smelter

$/t mill feed

$4.71

Total Unit Operating Costs

$/t mill feed

$86.61

Notes: PtEq Grade = Total Metal Value in 1 Tonne ÷ Pt Price per Oz × 31.10348 g per oz and
includes total 6 metals (Platinum, Palladium, Gold, Silver, Copper and Nickel)

The Company has not made a production decision at the Thunder Bay North Project and there is no guarantee that a production decision will be made or that the production rates at the Thunder Bay North Project will be achieved. There are no Mineral Reserves for the Thunder Bay North Project currently. The information reported in the PEA for the Project is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Inferred Mineral Resources are based on limited geological evidence and sampling. The tonnage and grade of Inferred Mineral Resources have significant uncertainty as to their existence and as to whether they can be mined economically. There is no certainty that results for the PEA for the Project will be finally realized.

Executive Remarks

Executive Chair Jim Gallagher, P.Eng. stated: “The initial PEA for the Thunder Bay North Project brings together two previously independent deposits into one mining plan which is relatively low risk, low capital, quick to production and generates robust financial metrics. Given the significant potential upside with continued exploration drilling along the known conduits and with the already identified massive sulphide targets we believe that this PEA is a minimum base case that Clean Air Metals will continue to attempt to de-risk towards prefeasibility.”

CEO Abraham Drost, P.Geo., stated that “the PEA sets a mine plan that allows the Company to move forward with several de-risking objectives. These include:

      1. converting mine plan-impacted unpatented mining claims to mining leases;
      2. engaging with regulators toward early commencement of the mine permitting process;
      3. continuation of the environmental impact studies (EIS) led by Englobe/DST Engineering;
      4. commencement of prefeasibility technical studies including optimization and tradeoffs around mining, metallurgy and mill design; and
      5. negotiation of Impact and Benefit agreements with affected First Nations and Métis.”

Significant Production Potential

  • The study considers a 1.3 Mtpa (million tonnes per year) 3,600 tpd mill throughput ramp-access underground mining operation with over a 10 year mine (project) life plus 2 years of construction. Early revenue is generated by mining near surface production areas and prioritizing high grade near surface material from the high head grades from the Lower Current and Bridge Zones grading 9.4 g/t PtEq insitu for first 4 years of production.
  • Operating costs average $86.61 per tonne mined with an NSR of $178.02 per tonne over a 10-year life of mine (LOM).

Development Capital

  • Initial capital expenditures (CAPEX) are $367.17 million (includes EPCM of $41 million and contingency of $60 million) and ongoing capex for the life of the project is $169 million.

Table 2: 2-Year Trailing Price Deck

Metal

Unit

2 Year Trailing
(Aug’19 – Jul’21)

Platinum

US$/oz

969

Palladium

US$/oz

2,214

Gold

US$/oz

1,723

Silver

US$/oz

22

Copper

US$/lb

3.09

Nickel

US$/lb

6.86

Note: 2yr price deck provided by CRU as of Aug, 2021.

Clean Air Metals will be hosting a webcast on Thursday, December 2, 2021, at 11:00 am (Eastern Time)Abraham Drost, Chief Executive Officer, and Jim Gallagher, Executive Chair will provide an in-depth review of the Company’s PEA and will be available to answer shareholder questions. Copies of the news release and management’s presentation will be available on the Company’s website at www.cleanairmetals.ca.

Pre-registration will be open Wednesday, December 1, 2021 and the webcast can be accessed by clicking HERE or at the following URL:

https://onlinexperiences.com/Launch/QReg/ShowUUID=6A93091E-B89F-465F-AB82-AFB9FCBF4B19&LangLocaleID=1033&GroupID=Onyx

A Chrome or Firefox browser is recommended. Please test your connection prior to joining the webcast at https://onlinexperiences.com/Launch/StudioTest.htm

Mine Operations

The proposed Thunder Bay North operation involves underground mining at an average rate of 4450 tonnes per day (tpd) (3600 tpd in ore and 850 tpd in waste) with an accompanying process plant with a matching 3,600 tpd capacity. Shown in Figure 1 is the proposed site plan with the mineable Current and Escape deposits.

The Current deposit is accessed via a portal from surface and has a 12-month pre-production development period, which allows for the Current deposit main decline system to connect to the Current main fresh air raise and provide secondary egress for the mine. Contractor decline development is assumed for the 12-month pre-production period as well as the following 2 years.

The Escape deposit is accessed via a separate portal from surface. The main decline development begins 12 months after the Current deposit decline begins and continues for 3 years, until the decline connects with the Escape main fresh air raise. Contractor decline development is assumed for the Escape deposit.

The Current deposit pre-production development period is followed by a production ramp-up period and achieves full production (3,600 tpd) in the first quarter of year 1. The Current deposit production commences in the Current and Bridge mining zones and continues in these areas for the first 3 years. In year 4, the Escape deposit begins production in the High Grade Zone (HGZ) at 1,800 tpd and the Current deposit production rate is reduced to 1,800 tpd. Figures 2 and 3 show long sections of the proposed Current deposit and Escape deposit.

The underground production was scheduled based on 3,600 tpd mill feed and 850 tpd waste, excavated using a fleet of 10-tonne load-haul-dump loaders (LHD), and hauled with 40-tonne trucks, using the Current and Escape declines to haul material to surface.

The underground mining inventory was determined using Deswik’s Mineable Shape Optimizer (MSO) software tool. The MSO uses the geological block model to generate shapes (e.g., stopes) based on economic and geometric parameters as listed in Table 3. The mining underground inventory is a combination of the four mining areas (Current, Bridge, Beaver-Cloud, and 437) within the Current deposit and the two mining areas (HGZ and Boundary) within the Escape deposit. The underground inventory spans along a strike length of 3.3 km and to a depth of 700 m within the Current deposit and spans along a strike length of 1 km and to a depth of 500 m within the Escape deposit. The underground stope inventory is constrained by a crown pillar, extending 30 m below the unconsolidated sediments below Current Lake.

The Current and Escape deposits will be mined via a combination of conventional underground long-hole open stope and drift & fill mining methods, backfilled with a combination of cemented paste back fill (CPB), cemented rock fill (CRF) and unconsolidated rock fill (URF). Stopes are designed to be accessed and excavated via overcut and undercut development cross-cut drifts, which connect to the main declines. The main declines provide ventilation, haulage to surface, and mine access. Table 3 shows the underground design parameters and Table 4 shows the underground MSO cutoff.

Table 3: Underground Design Parameters

Parameter

Value

Long-hole Open Stoping Size

Length (Maximum)

20 m

Height (Maximum)

25 m

Width (Range)

5 m to 15 m

Drift and Fill Stoping Dimensions

Height

5 m

Width

5 m

Development Drift Dimensions

Ramp

5 m (height) x 5 m (width)

Cross-cut

4.5 m (height) x 5 m (width)

Mining Dilution & Recovery

Underground (UG) Mining Dilution

9.6%

UG Mining Recovery

95%

Resources Used for MSO and UG Design

Measured + Indicated + Inferred

Table 4: Underground MSO Cutoff

Parameter

Unit

Current

Bridge

Beaver
– Cloud

Boundary

HGZ

Direct Mining Cost (LHOS)

$/t mill feed

$34.7

$28.5

$30.8

$32.0

$34.5

Direct Mining Cost (DAF)

$/t mill feed

$44.0

$43.8

$46.5

$47.7

$52.9

Milling / WSF Cost

$/t mill feed

$23.0

$23.0

$23.0

$23.0

$23.0

Indirect / G&A Cost

$/t mill feed

$10.0

$10.0

$10.0

$10.0

$10.0

NSR Cutoff (LHOS)

$/t mill feed

$67.7

$61.5

$63.8

$65.0

$67.5

NSR Cutoff (DAF)

$/t mill feed

$77.0

$76.8

$79.5

$80.7

$85.9

Note: NSR calculation includes mining dilution and recovery, milling recoveries, smelter payables and
deductions, royalties and transportation. LHOS – Long Hole Open Stoping DAF – Drift and Fill

Mineralogy

Copper is contained primarily as chalcopyrite and approximately two-thirds of the nickel is in sulphide form, primarily as pentlandite. The remaining nickel is mostly hosted by magnesium-silicate minerals, chiefly serpentine and olivine. The platinum, palladium, and gold mineralization is very fine grained, however they are closely associated with all sulphide minerals, including pyrite and pyrrhotite, and recovery of the sulphides will therefore bring along the majority of the precious metal values. Gangue silicates consist of serpentine, amphibole, chlorite, mica and feldspar. Copper and nickel sulphide material liberation indicate a moderately fine grind is required for good recovery of the sulphides.

Metallurgical Test Work

A flotation development program was completed on one master composite and ten variability composites from the Current deposit and three variability composites from the Escape deposit. Flowsheet options considered include separate copper and nickel concentrates, separate copper and bulk concentrates, and a single bulk concentrate. A flowsheet was developed, consisting of primary grinding to a P80 (80% passing) of 65 microns, sequential flotation of copper bearing minerals, followed by nickel or bulk flotation. Regrinding of the copper rougher concentrate to a P80 of ~25 microns followed by two stages of cleaning achieved concentrate grades of ~25% copper. Nickel concentrate grades up to 11% nickel were achieved with fine regrinding to a P80 < 20 microns, but resulted in low nickel and PGE recoveries to a selective nickel concentrate. Replacing the nickel concentrate with a bulk concentrate eliminates the Ni regrind and improves overall metal recovery. Platinum, palladium and gold recovery is closely linked with sulphur recovery. High recoveries of the precious metals are possible if all the sulphides are floated, however the rejection of any of the sulphide minerals leads to an attendant drop in PGE and gold recovery. Table 5 shows the consolidated concentrate average milling recovery for each payable metal.

Table 5: Consolidated Average Milling Recovery

Payable Metal

Consolidated
Average Milling
Recovery

Platinum

82%

Palladium

86%

Gold

80%

Silver

68%

Copper

95%

Nickel

51%

Mineral Processing

The conceptional process plant has been designed as a conventional milling operation with a capacity of 3,600 tpd.

Run of mine (ROM) mineralized material will be reduced to P80 of 300 mm by a single jaw crusher. Crusher discharge would be transferred to a surface stockpile, from which material would be reclaimed by two active apron feeders. A front-end loader would be utilized on occasion to minimize size segregation and to motivate the pile during the winter period.

A conventional semi-autogenous grinding (SAG) and ball mill grinding circuit is proposed. The conceptual design targets a grind size P80 of 65μm, utilizing a SAG size of 6.7 m diameter by 2.8 m (EGL) long and a ball mill size of 4.5 m by 7m (EGL) long. The SAG mill is closed-in with a pebble circuit where pebbles are crushed prior to being recycled to the SAG feed. The ball mill will be closed-in with hydrocyclones, with cyclone overflow reporting to the copper rougher circuit. Figure 4 shows the conceptual process plant flow diagram.

The flotation circuit will produce two separate marketable concentrates. A copper-PGE concentrate will be the primary float, utilizing a regrind stage of the rougher float product prior to two subsequent stages of cleaning. Cu-PGE concentrate will be thickened and dewatered via a filter press prior to being stored in a covered stockpile prior to shipment.

Copper rougher tails will be pumped to a bulk concentrate flotation circuit which consists of rougher stage, and four subsequent cleaning stages. The bulk concentrate product will be thickened and dewatered via a filter press prior to being stored in a covered stockpile prior to shipment.

Copper-PGE concentrate is anticipated to amount to approximately 53 Tpd (Dmt), with an assumed target moisture content of 8% which amounts to an annual concentrate production of 20,650 Wmt. The remaining bulk concentrate production will be approximately 119 Tpd (Dmt), with an assumed target moisture content of 8% which translates to an annual concentrate production of 46,500 Wmt.

It is anticipated that the two separate concentrate products will be shipped by truck to separate regional smelters suited to handle the separate marketable concentrate products.

Clean Air Metals’ management have received indicative terms from selected smelters and refiners. The source of smelting terms is specifically excluded, as smelting terms are confidential in nature. The net payable for a metal is calculated as the payable content of the contained metal, less a minimum deduction (in g/t for palladium, gold, platinum and silver and a % for copper), if applicable. Table 6 shows the net payable rates and deductions for the copper concentrate and sulphide concentrate.

Table 6: Smelter Payable % and Deductions

Payable
Metal

Payable %

Deductions

Payable %

Deductions

(Copper Concentrate)

(Bulk Concentrate)

Platinum

90%

1.5 g/t

90%

1.5 g/t

Palladium

90%

2.0 g/t

90%

2.0 g/t

Gold

98%

1.0 g/t

98%

1.0 g/t

Silver

98%

30 g/t

92%

30 g/t

Copper

96.65%

1%

40%

1%

Nickel

65%

The treatment charges (TC) and refining charges (RC) are charges deducted from the payable value of the concentrates to account for the costs of smelting and refining. The TC and RC are influenced by global supply and demand and governed by mine and smelter economics based on copper prices and operating costs. The TC and RC applicable to each concentrate may be based on variable annual negotiations, fixed rates and/or market benchmarks. Table 7 shows the TC and RC charges for the copper concentrate and bulk concentrate. The TC and RC shown in Table 7 was calculated from a 2-year trailing benchmark from CRU (Aug’19 – Jul’21).

Table 7: Smelter TC/RC

Payable
Metal

TC

RC

TC

RC

(Copper Concentrate)

(Bulk Concentrate)

Platinum

US$15/oz

US$15/oz

Palladium

US$15/oz

US$15/oz

Gold

US$4.5/oz

US$4.5/oz

Silver

US$0.45/oz

US$0.45/oz

Copper

US$67.33/wmt

US$0.067/lb

Nickel

US$150/wmt

CRU Consulting (a division of CRU International Ltd), provided the two-year trailing average metal prices used in the revenue projections for the PEA. Nordmin applied these 2-year trailing averages to the minable mineral resource and economic model within the PEA (Table 2). Currently there are no metal streaming or hedging agreements in place.

Onsite Project Infrastructure

Waste Storage Facility

The conceptional WSF will be located to the north of the Plant Site with sufficient offsets from local waterbodies and contain a maximum of 6.0 million tonnes of potentially acid generating (PAG) filtered tailings and 1.3 million tonnes of PAG waste rock. The WSF will be constructed in two stages, with the initial WSF designed to contain 1.3 million tonnes of filtered tailings and 0.4 million tonnes of waste rock to support the first two years of mining. The WSF footprint will be expanded during Year 2 of operations and then the entire WSF footprint will be used to place the waste and raise the facility using the upstream construction method to establish a paddock.

The foundation materials in the area typically consist of a veneer of silty sand with varying gravel content overlying competent bedrock. The overburden will be removed from the WSF footprint to expose the bedrock and drains will be strategically installed to route any collected seepage to perimeter water collection ponds. A starter perimeter berm consisting of non-PAG waste rock from underground mine development, locally quarried rockfill, and locally processed filter zone material will be placed to allow for initial waste placement. The filtered tailings will be transported to the WSF using conveyors and the material will be placed and compacted with a dozer and compactor. The PAG waste rock will be hauled to the WSF and strategically co-disposed with the tailings. Waste and the perimeter berm materials will be placed in generally level lifts across the entire WSF footprint to raise the facility. This approach will prevent ponding of water on the WSF surface and allow any runoff to shed from the WSF. During the winter months, snow will be removed from the interim surfaces as the material is placed.

The WSF will be progressively reclaimed during operations by placing the overburden removed from the foundation excavation on the perimeter embankment slopes and establishing vegetation. A soil cover will be placed on the final WSF surface and vegetation will be established on the cover at closure.

Water Management

Water management for the WSF will include a series of water collection ditches and ponds along the toe of the WSF. The collected water will be pumped to a central water management pond (WMP), which will also be used to collect contact water from the plant site and other site infrastructure. The WMP will provide temporary storage of contact water during normal operations. A floating pump and pipeline will be installed at the WMP to convey the contact water to the mill for re-use in the process or to a water treatment facility. It is expected that the site will operate under a hydrological surplus and contact water will need to be treated, as required, and discharged over a portion of each year. The WMP will also temporarily store runoff from the environmental design flood (EDF) and safely pass runoff resulting from the inflow design flood (IDF) via a spillway.

Offsite Project Infrastructure

Power

Power is assumed to be supplied via a new 230 kV E-W tie line running to the south-east of the project site (expected completion date of 2022) that is accessed by construction of approximately 6 km of new 230 kV power lines. The estimated cost of an electrical substation and power to site is at an estimate costed of $9.36 million.

Access

Access to the mine site is in discussion with a major forestry company via a combination of upgrades to existing logging roads and construction of new roads, totaling 10.5 km, connecting to Highway 527 to the West, at an estimated cost of $1.82 million.

Capital Costs Summary

The initial project capital cost is estimated at $367.2 million, including a contingency allowance of 20% to 25% for major items. The duration of the detailed design and construction phase of the project is estimated at 24 months. The capital cost estimates are detailed in Table 8.

Table 8: Total Capital Cost Estimates

Units

Initial

Ongoing
&
Closure

Total

Category

Underground Capital Development

$M

$15

$62

$77

Underground Major Infrastructure

$M

$2

$12

$14

Underground Mobile Fleet

$M

$27

$22

$49

Processing Plant / Concentrate Loadout

$M

$154

$0

$154

Waste Storage Facility

$M

$12

$10

$22

Other Surface Site Infrastructure

$M

$36

$7

$43

Offsite Infrastructure

$M

$9

$1

$9

Pre-Production G&A

$M

$11

$0

$11

Sustaining Capital

$M

$0

$46

$46

Mine Closure

$M

$0

$30

$30

Salvage

$M

$0

($30)

($30)

EPCM

$M

$41

$0

$41

Contingency

$M

$60

$10

$70

Total

$M

$367

$169

$536

Operating Costs Summary

The operating cost estimates are detailed in Table 9.

Table 9: Total Operating Cost Estimates

Category

Life of Mine

$M

LOM Average

$/t (Total Mill Feed)

Underground Mine Operating Costs

$577

$47.37

Processing Plant & WSF

$305

$25.03

G&A Costs

$84

$6.87

Royalties

$33

$2.63

Transportation to Smelter

$58

$4.71

Total

$1,057

$86.61

Financial Analysis and Sensitivity

The expected project cashflows were modelled using a simple discounted cashflow model, using a discount rate of 5%. The project cashflow is scheduled annually and uses an exchange rate of 1.3 CAD to USD. All values are in CAD, unless stated otherwise.

A simple tax model was constructed using a depletion model for depreciation estimates. No opening balance of tax credits or eligible prior expenditure was used. Table 10 summarizes the estimated total LOM cashflows. The column at the right is the NPV (cost) of those cashflows. Table 11 summarizes the post-tax revenue and cost NPV sensitivity, Table 12 summarizes the post-Tax discount rate NPV sensitivity, Figures 5 and 6 summarize the post-tax revenue NPV sensitivity and post-tax cost NPV sensitivity, respectively.

Table 10: Key Financials

Cashflow

Units

LOM

Total Revenue

$M

$2,245

Total Operating Costs

$M

$1,057

Pre-tax Operating Cashflow

$M

$1,188

Total Capital

$M

$536

Pre-Tax Accumulated Cashflow

$M

$652

Pre-Tax NPV @ 5% Discount

$M

$425

Pre-Tax IRR

%

31.1%

Taxes

$M

$70

Post-Tax Accumulated Cashflow

$M

$582

Post-Tax NPV @ 5% Discount

$M

$378

Post-Tax IRR

%

29.8%

Table 11: Post-Tax Revenue and Cost NPV Sensitivity

Post-Tax NPV Sensitivity (CA$million)

Sensitivity Item

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Revenue Pt

315

331

347

363

378

394

410

426

441

Revenue Pd

231

268

305

342

378

415

452

488

524

Revenue Au

375

376

377

378

378

379

380

381

382

Revenue Ag

378

378

378

378

378

379

379

379

379

Revenue Cu

340

350

359

369

378

388

398

407

417

Revenue Ni

361

366

370

374

378

383

387

391

396

Initial Capital

433

419

406

392

378

365

351

338

324

Ongoing Capital

404

398

391

385

378

372

366

359

353

Underground Operating
Costs

442

427

411

395

378

362

346

330

314

Processing Plant / WSF
Operating Costs

412

404

395

387

378

370

362

353

345

Other Operating (G&A,
Royalties, Transport)

398

393

388

383

378

373

369

364

359

Table 12: Post-Tax Discount Rate NPV Sensitivity

Discount Rate

Post-Tax NPV

(%)

(CA$million)

0%

582

3%

450

5%

378

7%

317

12%

199

Updated Mineral Resource

Nordmin examined and modelled the mineralization within the Current and Escape deposits for the purpose of grade concentration and isolation of composites, while including lithological, geochemical, and structural correlations between rock types that are influencing the mineralization at each respective deposit. Wireframes were initially created on 10 m to 20 m plan sections and adjusted on vertical section views to edit and smooth each wireframe where required. When not cut off by drilling, the wireframes terminate at the contact of the conduit or due to lack of drilling, whichever was most appropriate. No wireframe overlapping exists within a given domain, but all domains are independent of each other.

Domain wireframes were modelled for seven grade elements, including combined Platinum (“Pt”) and Palladium (“Pd”), Gold (“Au”), Silver (“Ag”), Copper (“Cu”), Nickel (“Ni”), Cobalt (“Co”), and Rhodium (“Rh”). Each domain was built using geology, mineralization, and grade bin for a combination of Background grade (“BG”), Low Grade (“LG”), Medium Grade (“MG”), and High Grade (“HG”). Background grades were isolated through applying the overall conduit wireframe.

The Mineral Resource Estimate (MRE) is predominately based on an unchanged geological model and methodologies utilized to calculate the 2021 MRE. The differences in the Current deposit relate to the incorporation of approximately 7,200 m of infill drilling within the Lower Bridge/Upper Beaver area and the corresponding reinterpretation of the infill drilling and incorporating updated metal prices (Table 2), metallurgical and smelter recoveries (Table 5 and Table 6).

The Thunder Bay North Project 2021 PEA, while based largely on MSO analysis in continuous mineralized material within the indicated mineral resource category, is preliminary in nature and includes an economic analysis that is based in part on Inferred Mineral Resources. Inferred mineral resources are considered too speculative geologically for the application of economic considerations that would enable them to be categorized as Mineral Reserves and there is no certainty that the results will be realized. Mineral Resources do not have demonstrated economic viability and are not Mineral Reserves. Table 13 shows the MRE grades and Table 14 shows the MRE contained metals.

Table 13: Thunder Bay North Resource Estimate (Effective Date November 1, 2021)

Category

Area

Tonnes

Pd

Pt

Au

Ag

Cu

Ni

Co

Rh

PtEq

(g/t)

(g/t)

(g/t)

(g/t)

(%)

(%)

(g/t)

(g/t)

(g/t)

Indicated –
Current deposit

Upper Current

1,123,518

1.54

1.67

0.10

2.29

0.41

0.21

155.30

0.07

8.19

Lower Current

1,574,152

2.38

2.56

0.13

2.99

0.52

0.23

159.05

0.05

11.49

Bridge

3,261,258

1.90

2.14

0.11

2.77

0.47

0.20

148.33

0.05

9.37

Beaver

3,592,490

1.39

1.54

0.06

1.61

0.27

0.22

147.57

0.03

6.90

Cloud

837,545

0.83

0.88

0.05

1.28

0.21

0.15

147.87

0.04

4.58

Indicated –
Escape deposit

Steepledge North

124,611

0.84

0.73

0.06

1.30

0.29

0.18

157.85

0.01

4.63

Steepledge South

42,812

1.05

0.89

0.05

1.15

0.28

0.17

142.66

0.00

5.02

Escape South

3,996,938

1.22

0.95

0.13

2.52

0.53

0.29

211.89

0.06

7.73

Comprised of:

Escape South Perimeter

1,672,990

0.62

0.51

0.08

1.47

0.37

0.21

176.82

0.04

4.69

Escape South HGZ

2,323,948

1.67

1.28

0.16

3.31

0.66

0.34

238.05

0.08

9.99

TOTAL
INDICATED
RESOURCE

14,553,324

1.54

1.58

0.10

2.30

0.42

0.23

167.33

0.05

8.12

Inferred –
Current deposit

Beaver

505,794

0.84

0.88

0.06

1.66

0.27

0.20

151.67

0.02

4.72

437-SE

4,769,004

0.60

0.63

0.07

0.98

0.33

0.13

114.94

0.01

3.74

Inferred –
Escape deposit

Steepledge North

97,464

0.59

0.50

0.05

0.58

0.27

0.21

149.59

0.00

3.74

Steepledge South

1,990,612

0.90

0.78

0.07

1.18

0.33

0.17

177.16

0.00

4.74

Escape South

714,722

0.61

0.49

0.08

0.97

0.36

0.19

177.20

0.00

4.03

Comprised of:

Escape South Perimeter

649,938

0.62

0.50

0.08

0.92

0.35

0.19

176.30

0.00

4.03

Escape South HGZ

64,784

0.53

0.40

0.09

1.43

0.36

0.20

186.07

0.01

4.01

TOTAL
INFERRED
RESOURCE

8,077,595

0.69

0.67

0.07

1.07

0.33

0.15

138.50

0.01

4.07

Table 14: Thunder Bay North Resource Estimate Contained Metal

Category

Area

Tonnes

Pd

Pt

Au

Ag

Cu

Ni

Co

Rh

PtEq

(oz)

(oz)

(oz)

(oz)

(t)

(t)

(t)

(oz)

(oz)

Indicated –
Current
deposit

Upper Current

1,123,518

55,607

60,222

3,568

82,691

4,628

2,309

174

2,420

295,814

Lower Current

1,574,152

120,255

129,778

6,507

151,304

8,107

3,627

250

2,715

581,322

Bridge

3,261,258

199,559

224,187

11,958

290,047

15,358

6,412

484

4,880

982,764

Beaver

3,592,490

160,524

177,526

7,401

185,975

9,574

7,834

530

4,033

797,121

Cloud

837,545

22,344

23,618

1,426

34,385

1,718

1,223

124

1,200

123,229

Indicated –
Escape
deposit

Steepledge North

124,611

3,379

2,931

250

5,200

359

218

20

45

18,560

Steepledge South

42,812

1,448

1,223

75

1,581

119

72

6

0

6,913

Escape South

3,996,938

156,402

121,942

16,136

324,200

21,263

11,435

847

8,219

992,858

Comprised of:

Escape South Perimeter

1,672,990

31,966

26,451

4,382

76,875

6,027

3,425

294

2,129

246,577

Escape South HGZ

2,323,948

124,437

95,491

11,754

247,325

15,236

8,010

553

6,090

746,281

TOTAL
INDICATED
RESOURCE

14,553,324

719,518

741,426

47,322

1,075,381

61,126

33,131

2,435

23,511

3,798,581

Inferred –
Current
deposit

Beaver

505,794

13,618

14,268

995

27,012

1,369

1,035

77

329

76,677

437-SE

4,769,004

92,264

96,427

10,111

150,294

15,545

6,089

548

1,324

573,599

Inferred –
Escape
deposit

Steepledge North

97,464

1,846

1,578

169

1,805

260

204

15

0

11,730

Steepledge South

1,990,612

57,381

50,208

4,410

75,364

6,613

3,308

353

0

303,144

Escape South

714,722

14,020

11,348

1,824

22,227

2,541

1,373

127

70

92,496

Comprised of:

Escape South Perimeter

649,938

12,913

10,507

1,647

19,252

2,306

1,242

115

41

84,146

Escape South HGZ

64,784

1,108

841

177

2,975

235

131

12

29

8,350

TOTAL
INFERRED
RESOURCE

8,077,595

179,130

173,829

17,508

276,702

26,329

12,009

1,119

1,724

1,057,646

Mineral Resource Estimate Notes

1.

Underground Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

2.

Underground Mineral Resources are based on a 2-year trailing price deck (table 2 above) as of September 30, 2021.

3.

Resource excludes all material immediately below Current Lake, above a minimum crown pillar thickness of 20 m which is assumed to be not recoverable by underground methods.

4.

Minor variations may occur during the addition of rounded numbers.

5.

Calculations used metric units (metres (m), tonnes (t) and grams/tonne (g/t)).

6.

Assays were variably capped on a domain by domain basis.

7.

Specific gravity was applied using Ordinary Kriging (OK) estimation.

8.

Mineral Resource effective date November 1, 2021.

9.

All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.

10.

Reported from within a mineralization envelope accounting for mineral continuity.

Input Parameters for Resource Calculation Mining Cutoff Grade

The cutoff value used for the mineral resource for Current deposit is US$93/tonne (CA$121/tonne) insitu contained value and the Escape deposit is US$100/tonne (CA$130/tonne) insitu contained value. The cutoff value is calculated based on estimations as follows: direct mining operating cost, onsite milling operating cost, tailings management facility operating cost, indirect operating cost, G&A cost, onsite milling metal recoveries, offsite smelting metal recoveries, and smelter metal payable percentages.

Estimated operating costs, onsite estimated mill metal recoveries, offsite estimated smelting metal recoveries and estimated smelter payable percentages used for mineral resource cutoff grade calculations are summarized in Table 15. For resource cutoff calculation purposes, a mining recovery of 100.0% and 0.0% mining dilution were applied.

Table 15: Mineral Resource Estimate Cutoff Grade Calculation

Parameter

Unit

Value
Current
deposit

Value
Escape
deposit

Currency used for Evaluation

$

CAD

CAD

Mill Daily Throughput / Mining Rate

Tonnes per day

3600

3600

Long Hole Open Stoping Component

%

75%

75%

Drift and Fill Component

%

25%

25%

Direct Mining Cost

$/t mill feed

$30

$31

Milling / WSF Cost

$/t mill feed

$21

$21

Indirect / G&A Cost

$/t mill feed

$10

$10

Transportation to Refinery Charges

$/t mill feed

$4.9

$4.5

Royalties

%

1.3%

1.5%

Milling Recovery

%

77%

77%

Smelter Recovery & Payables

%

73%

68%

Insitu Contained Value Cutoff ($CAD)

$/t mill feed

$121

$130

Insitu Contained Value Cutoff ($USD)

$/t mill feed

$93

$100

Clean Air Metals expects to complete a mineral resource update in 2022 on the greater than 35,000 m of step-out and delineation drilling that has been completed on the Escape deposit since the January 20, 2021 resource statement. Much of the inferred material in the present PEA mine plan has been a focus of infill drilling activity as previously disclosed and is expected to convert to indicated mineral inventory. Continuity of mineralization has been also demonstrated geophysically (using the Magnetometric Resistivity (MMR) technique). The additional drilling is expected to support the use of the MSO algorithm in a prefeasibility study.

Mineral Resource Estimate Methodology

The Current deposit drill hole database is comprised of 171,465 m from 767 diamond drill holes completed between 2006 and 2021. The Escape deposit drill hole database is comprised of 49,383 m from 137 drill holes completed between 2008 and 2020.

The 3D geological modelling integrates assay and geological data collected from diamond core drilling; surface geologic mapping; airborne magnetic; and radiometric geophysical surveys.

The Current and Escape deposit block models were estimated using nearest neighbours (NN), inverse distance squared (ID2), inverse distance cubed (ID3), and ordinary kriging (OK) interpolation methods for global comparisons and validation purposes. The OK method was used for the MRE; it was selected over ID2, ID3, and NN as the OK method was the most representative approach to controlling the smoothing of grades.

Zonal controls were used to constrain the grade estimates to within each low grade and high grade wireframes. These controls prevented the assays from individual domain wireframes from influencing the block grades of one another, acting as a “hard boundary” between the zones.

Search orientations were used for estimation of the block model and were based on the shape of the modelled mineral domains. A total of three nested searches were performed on all zones. The search distances were based upon the variography ranges.

Search ellipsoids defined by metal modelled variograms, which range from 130 to 140 m in the major axis, 100 m in the minor axis, and 9 to 18 m in the vertical axis. The MRE was estimated with 3 m composites utilizing ordinary kriging and local varying anisotropy. The search radius of the first search was based upon the first structure of the variogram, the second search is approximately two times the first search pass and the third search pass is 1.5 times the initial search. Search strategies for each domain used an elliptical search with a minimum and maximum number of composites. Unestimated blocks were left as absent and not reported in the MRE.

Tables 16 and 17 below illustrate the sensitivity of the MRE to different cutoff grades for a potential underground operation scenario with reasonable outlook for economic extraction. The reader is cautioned that the figures provided in these tables should not be interpreted as a statement of Mineral Resources. Quantities and estimated grades for different cutoff grades are presented for the sole purpose of demonstrating the sensitivity of the resource model to the choice of a specific cutoff grade.

Mineral Resource Estimate

  • The Mineral Resources were classified using the 2014 CIM Definition standards and the 2019 CIM Best Practice Guidelines and has an effective date of November 1, 2021. The updated MRE comprises a 14.6 million tonne Indicated Mineral Resource, averaging 8.12 g/t PtEq and an 8.1 million tonne Inferred Mineral Resource, averaging 4.07 g/t PtEq., reported at a cutoff insitu contained value of US$93/tonne for Current deposit and a cutoff insitu contained value of US$100/tonne for Escape deposit (Table 16). Figure 7 shows the PtEq (g/t) Grade-Tonne Curve.
  • The current resource represents a 4.5% increase in the indicated material on a contained PtEq metal ounce basis in comparison to the prior January 20, 2021 MRE due to the estimation of 2021 7,500 m infill drilling within the Bridge/Beaver portion of the Current deposit. The infill drilling improved the continuity of medium and higher grade portions of the deposit.

Note: PtEq Grade = Total Metal Value in 1 Tonne ÷ Pt Price per Oz × 31.10348 g per Oz. For the MRE, total metal value includes 8 metals (Platinum, Palladium, Gold, Silver, Rhodium, Cobalt, Copper and Nickel)

Optimization Opportunities and Next Steps

Clean Air Metals has identified additional tradeoff opportunities at a prefeasibility level to enhance sustainability and overall project economics, including:

  • Optimization of mineral processing, metals recovery, to potentially make rhodium and cobalt payable metals and to improve total playability of nickel.
  • Negotiating competitive rather than Indicative smelter payable terms as project is de-risked and timeline to production reduced.
  • Review of direct shipping and toll-milling options to local processor reducing capital intensity of mill concentrator and WSF construction.
  • Reduction of PEA-level 20% contingency allowance.
  • Sourcing refurbished rather than brand new OEM milling equipment.
  • Exploration targeting yielded 1) detailed delineation of braided magma streams in the Beaver zone down plunge in the Current deposit, and 2) discovery of high grade massive sulphide deposits consistent with the Talnakh mineral deposit model, in structures beneath and in the feeder zone areas at the base of the Current and Escape magma conduit intrusions and along the conjoining Escape Lake Fault.

Table 16: Mineral Resource Sensitivity to Reporting Cutoff (Indicated)

Category

Cutoff

Insitu
($/t)

Tonnes

Pt

(g/t)

Pd

(g/t)

Au

(g/t)

Ag

(g/t)

Rh

(g/t)

Co

(g/t)

Cu

(%)

Ni

(%)

PtEq

(g/t)

PdEq

(g/t)

Indicated

77

15,191,639

1.55

1.41

0.08

1.95

0.04

146

0.33

0.19

7.19

3.15

86

13,143,362

1.73

1.57

0.09

2.11

0.05

148

0.36

0.20

7.91

3.46

Current

93

11,879,626

1.87

1.70

0.09

2.22

0.05

150

0.38

0.20

8.44

3.69

Deposit

100

10,880,057

2.00

1.81

0.10

2.33

0.05

151

0.40

0.21

8.93

3.91

110

9,755,864

2.16

1.96

0.10

2.46

0.05

153

0.42

0.22

9.58

4.19

120

8,878,497

2.32

2.12

0.11

2.65

0.05

155

0.41

0.22

9.91

4.48

Indicated

77

5,932,329

0.72

0.92

0.07

1.51

0.02

188

0.33

0.20

5.05

2.21

86

5,116,115

0.81

1.03

0.11

2.21

0.06

201

0.47

0.26

6.75

2.95

Escape

93

4,639,233

0.87

1.11

0.12

2.33

0.06

205

0.50

0.27

7.14

3.13

Deposit

100

4,164,360

0.94

1.20

0.12

2.47

0.06

210

0.52

0.28

7.61

3.33

110

3,515,820

1.07

1.37

0.13

2.66

0.07

216

0.56

0.30

8.39

3.67

120

2,995,727

1.21

1.55

0.14

2.86

0.07

222

0.59

0.31

9.21

4.03

Table 17: Mineral Resource Sensitivity to Reporting Cutoff (Inferred)

Category

Cutoff

Insitu ($/t)

Tonnes

Pt

(g/t)

Pd

(g/t)

Au

(g/t)

Ag

(g/t)

Rh

(g/t)

Co

(g/t)

Cu

(%)

Ni

(%)

PtEq

(g/t)

PdEq

(g/t)

Inferred

77

8,301,417

0.56

0.53

0.06

0.94

0.01

120

0.27

0.13

3.41

1.49

86

6,097,335

0.60

0.63

0.06

1.02

0.01

119

0.30

0.13

3.70

1.62

Current

93

5,274,818

0.65

0.62

0.07

1.05

0.01

118

0.32

0.14

3.83

1.68

Deposit

100

4,840,267

0.67

0.64

0.07

1.05

0.01

120

0.32

0.14

3.90

1.71

110

3,256,414

0.72

0.69

0.07

1.09

0.01

123

0.33

0.14

4.11

1.80

120

1,188,886

0.94

0.90

0.07

1.24

0.02

138

0.31

0.16

5.02

2.20

Inferred

77

5,347,493

0.54

0.62

0.06

1.03

0.00

162

0.28

0.17

3.71

1.62

86

4,227,441

0.60

0.69

0.06

1.07

0.00

167

0.30

0.17

4.00

1.75

Escape

93

3,405,362

0.65

0.75

0.07

1.11

0.00

172

0.32

0.17

4.27

1.87

Deposit

100

2,802,798

0.70

0.81

0.07

1.10

0.00

176

0.34

0.17

4.52

1.98

110

2,220,097

0.77

0.90

0.07

1.11

0.00

181

0.35

0.18

4.83

2.11

120

1,706,029

0.84

0.99

0.08

1.15

0.00

187

0.36

0.18

5.17

2.26

About the Thunder Bay North Project Property

Thunder Bay North Project is located in the Tartan and Greenwich Lake Areas approximately 50 km north of the City of Thunder Bay, Ontario, Canada. The site is paved highway accessible from Thunder Bay on Trans-Canada Highway 11-17 and then north on Highway 527 to the Escape Lake Road network. The proximity of the mine site plan to power (235 kV East-West Tie Line) and transportation infrastructure (paved Highway 527) within the Company’s mining claims is felt to offer a competitive advantage.

Proximity to mining supply and services and a skilled workforce within one hour from the City of Thunder Bay is expected to facilitate a future construction decision. Partnerships with affected First Nations (the “Participating Communities”) who bring joint-venture capacity and a willing workforce for supply and services to a future mining operation at Thunder Bay North.

Environmental and Social

Clean Air Metals acknowledges that the project is within the Robinson-Superior Treaty territory and that the land on which the project lies is the traditional territory of the Fort William First Nation, Red Rock Indian Band and Biinjitiwaabik Zaaging Anishinaabek. Clean Air Metals has signed a Memorandum of Agreement (January 9, 2020) with each of the three proximate First Nation communities (the Participating Communities).

Clean Air Metals, as well as previous owners, have engaged environmental consulting firms to complete a variety of environmental baseline studies across the project, resulting in a robust historical data set. Baseline data collection is continuing to be collected on physical environment studies (hydrology, surface water, sediment, hydrogeology, metals leaching and acid rock drainage, meteorology and noise), biological environment studies (fish and fish habitat, mammals, birds, species at risk, vegetation and wetlands) and archaeological studies. The data will be used to advance an anticipated Provincial Environmental Assessment and future permitting. Based on the current mine plans, the project is not anticipated to be subject to the federal Impact Assessment Act.

Exploration Upside

A total of 37,100 m of core drilling in 2021 has been completed on the Escape deposit since the Mineral Resource update reported January 20, 2021. Although the Escape South HGZ Area (shown in Figure 8 below) of the PEA mine plan is fully Indicated, a further 10,705 m of drilling in 2022 is required to bring the Steepledge South Area portion of the PEA mine plan into the Indicated Mineral Resource category. A further 19,895 m of drilling in 2022 will also be required in the Lower Beaver Lake Zone and Upper 437 Zone of the Current deposit to bring the PEA mine plan fully into Indicated Mineral Resource (shown in Figure 9 below).

In terms of exploration upside, a total of 16,700 m of drilling is planned at the base of the Escape and Current deposits where six (6) ultra-low resistivity magnetotelluric (MT) anomalies termed Anomalies A, B, C, D, E, F have been identified (shown in Figure 10) along the Escape Lake Fault zone. The feeder system and Escape Lake Fault are important from a massive sulphide exploration perspective. High grade massive sulphide intercepts in core have been discovered within the Current deposit including hole BL10-197 which intersected 52.7 g/t Pt, 41.5 g/t Pd, 3.6 g/t Au, 60.5 g/t Ag and 11.5% Cu over 2.6 m between 187.4- 190.0 m downhole and hole ELR20-041 in the Escape deposit which intersected 7.93 g/t Palladium (Pd), 6.41 g/t Platinum (Pt), 4.76% Copper (Cu), 2.5% Nickel (Ni), 0.151% Cobalt (Co) over 0.5 m from 337.0 m–337.5 m downhole attest to the deposits capacity to host massive sulphide. Given the demonstrated similarity of the Thunder Bay North magmatic system with the Talnakh complex at Norilsk, it is felt that larger deposits should be in the system. The Escape Lake Fault system is erosionally recessive and wet. The exploration team is waiting for a hard freeze to complete additional geophysics (deep seeking pulse EM) and set up the drill.

Please see the link below for Figures 1 to 10.

Figure 1: Site Plan with Mineable Current and Escape Deposits – Link (Click Here)

Figure 2: Current Deposit Long Section (Facing South-West) – Link (Click Here)

Figure 3: Escape Deposit Long Section (Facing South-West) – Link (Click Here)

Figure 4: Conceptual Process Plant Flow Diagram – Link (Click Here)

Figure 5: Post-Tax Revenue NPV Sensitivity – Link (Click Here)

Figure 6: Post-Tax Cost NPV Sensitivity – Link (Click Here)

Figure 7: PtEq (g/t) Grade-Tonne Curve – Link (Click Here)

Figure 8: Escape Deposit Indicated and Inferred Mineable Inventory – Link (Click Here)

Figure 9: Current Deposit Indicated and Inferred Mineable Inventory – Link (Click Here)

Figure 10: Massive Sulphide Targets A-F; Low-resistivity magnetotelluric (MT) anomalies- Link (Click Here)

Technical Information & Qualified Person

The PEA was independently prepared by Mr. Glen Kuntz, P.Geo., Mr. Kurt Boyko, P.Eng. and Mr. Brian Wissent, P.Eng. of Nordmin, Mr. Lyn Jones, P.Eng. of Blue Coast Research, Mr. Wilson Muir, P.Eng. of Knight Piésold Ltd., Mr. Kris Tuuttila P.Geo. (Limited) of DST Consulting, and Dr. Geoff Heggie, Exploration Manager of Clean Air Metals, who are considered “Qualified Persons” under National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical disclosure in this news release is based upon the information in the PEA prepared by or under the supervision of Mr. Kuntz, Mr. Boyko, Mr. Wissent, Mr. Jones, Mr. Muir, Mr. Tuuttila, and Dr. Heggie.

The technical information in this release has been reviewed and verified by Mr. Glen Kuntz, P.Geo. and Dr. Geoff Heggie who are a “Qualified Persons” for the purpose of National Instrument 43-101.

After-tax results were calculated by Clean Air Metals’ management team and verified by the Company Auditor and are not considered independent.

The Company will file a technical report prepared in accordance with National Instrument 43-101 on www.sedar.com within 45 days of this news release.

Carbon Neutrality – Opportunities and Risks

The Thunder Bay Project principal payable commodity suite will be a significant contributor to carbon neutrality. Platinum is critical to the emerging hydrogen economy. Palladium continues to be a regulated and required component for pollution control in catalytic converters in internal combustion engines. Copper is the conductor of choice for electric vehicles (EV) and electrical grid infrastructure. Nickel is a proven EV battery metal.

Future underground mine production at Thunder Bay North would feature a small footprint and be powered by an electrical power grid that is 100% renewable with majority hydroelectric, plus wind and solar. In terms of mine design, the Company will maximize use of electric-powered equipment. The Company is coordinating with a major forestry company operator around co-funding of tree replanting efforts in legacy areas including old gravel pits and decommissioned forestry access roads. The Company will investigate carbon sequestration within ultramafic mine tailing material.

From an Environmental, Social and Governance (ESG) perspective, the Company will help develop capacity in affected aboriginal communities and Métis Nations towards building capacity, training and development of meaningful business opportunities around supply and services, construction and operations at a potential future mine site development. The Company has a diverse Board of Directors and is committed to publishing a full baseline report around ESG factors.

Social Engagement


Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay North Project is on the traditional territories of the Fort William First Nation, Red Rock First Nation and Biinjitiwabik Zaaging Anishinabek. The parties together are the Cooperating Participants in a Memorandum of Agreement dated January 9, 2021.

The Company appreciates the opportunity to work in these territories and remains committed to the recognition and respect of those who have lived, travelled, and gathered on the lands since time immemorial. Clean Air Metals is committed to stewarding Indigenous heritage and remains committed to building, fostering and encouraging a respectful relationship with First Nations, Métis, and Inuit peoples based upon principles of mutual trust, respect, reciprocity and collaboration in the spirit of reconciliation.

About Clean Air Metals Inc.

Clean Air Metals’ flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Clean Air Metals project hosts the Current deposit and magma conduit and the Company is actively exploring the Escape deposit, a twin structure to the Current deposit. Executive Chair Jim Gallagher and CEO Abraham Drost lead an experienced team of geologists and engineers who are using the Noril’sk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development studies. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.

ON BEHALF OF THE BOARD OF DIRECTORS

“Abraham Drost”

Abraham Drost, Chief Executive Officer of Clean Air Metals Inc.

Website: www.cleanairmetals.ca

Neither the 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.

Cautionary Notes

The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation, including statements regarding the potential of the Thunder Bay North Project and the Escape Lake and Current Lake deposits and timing of technical studies (include the preliminary economic assessment) and mineral resource estimates. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record.

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company’s expectations or projection.

SOURCE Clean Air Metals Inc.

For further information: Abraham Drost, Chief Executive Officer of Clean Air Metals Inc., Phone: 807-252-7800, Email: adrost@cleanairmetals.ca

Related Links

https://www.cleanairmetals.ca/

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GCM Mining Announces Updated Mineral Resource Estimate and Positive Preliminary Economic Assessment for Its Toroparu Project in Guyana

GCM Mining Corp. (the “Company”) (TSX: GCM, OTCQX: TPRFF) announced today that it has completed an updated Mineral Resource estimate for its Toroparu Project in Guyana with an effective date of November 1, 2021 and in accordance with the Canadian Institute of Mining Metallurgy and Petroleum (“CIM”) Definition Standards incorporated by reference in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). GCM Mining also announced today that Nordmin Engineering Ltd. (“Nordmin”) and SRK Consulting (U.S.), Inc. (“SRK”) have completed preliminary results of a Preliminary Economic Assessment (“PEA”) for the Toroparu Project effective November 26, 2021 and is currently finalizing the technical report to be prepared in accordance with NI 43-101 and filed on SEDAR and the Company’s website in mid-January 2022.

Highlights of the PEA for the Toroparu Project

  • The PEA affirms the economic viability of the open pit and underground mining operations at the Toroparu Project.
  • Total life-of-mine (“LoM”) gold production of 5.4 million ounces (“Mozs”) representing 88.4% of the 6.2 Mozs of gold fed to the milling circuit at an average grade of 1.78 g/t Au over the 24-year mine life.
  • Open pit mine operations will deliver 93 Mt of potential mill feed (“PMF”) over the LoM and underground mining operations, which commence in year 10, will deliver an additional 14 Mt of PMF.
  • Average annual gold production of 225,000 ounces over the 24-year mine life. During the first two-year payback period, gold production averages 254,000 ounces per year and over the first 9 years of surface-only mining, gold production averages 202,000 ounces per year. With the commencement of underground mining in year 10, annual gold production from open pit and underground increases to an average of 239,000 ounces over the remaining 15 years of the LoM.
  • Initial capital cost, to be incurred from 2021 through 2023, totals US$355 million, of which US$138 million will be funded by deposits under a Precious Metals Purchase Agreement (“PMPA”) with Wheaton Precious Metals International Ltd. (“WPMI”) and the balance by the net proceeds of the Senior Notes financing closed in August of this year.
  • Processing capacity will be built in two phases with an initial Phase I nominal capacity of 7,000 tpd (2.55 Mtpa) in a gold leach plant based on gravity and carbon-in-leach circuits (“CIL”) and increasing in year 6 to 14,000 tpd (5.1 Mtpa) in Phase II with the construction of a copper concentrator based on gravity and copper flotation circuits. The copper concentrator will facilitate the recovery of 141.3 million pounds (“Mlbs”) of copper over its 19 years of operation.
  • The PEA delivers solid financial results with LoM total revenue of US$8.0 billion, US$3.5 billion of operating margin and US$1.7 billion of after-tax Free Cash Flow. The LoM PEA financial results are based on long-term prices of US$1,500/oz gold, US$20.22/oz silver and US$3.13/lb copper.
  • Gold and copper account for approximately 94% and 5.5%, respectively, of total revenue over the LoM.
  • LoM cash cost of US$742/oz and LoM all-in sustaining cost (“AISC”) of US$916/oz.
  • The PEA estimates a US$794 million after-tax NPV 5% (net present value at a 5% discount rate), a 46% IRR (after-tax Internal Rate of Return) and a two-year after-tax payback of the initial capital cost of the Project.

Lombardo Paredes, Chief Executive Officer of GCM Mining, commented “The PEA was initiated as a result of a significantly expanded Mineral Resource developed from the discovery of the structural control of high-grade gold mineralization at Toroparu as reported in our July 6, 2021 press release. Compared with Gold X Mining’s previous Mineral Resource estimate (September 2018), total Measured and Indicated Gold Resources have increased by approximately 15% to 8.4 million ounces of gold and reflect an increase in the average head grade from 0.91 g/t to 1.42 g/t in the latest update. The updated mineral resource estimate reported herein, which represents a potential step change to the economic value of Toroparu, underlies the scoping of a long mine life project within the PEA recovering 280,000 ounces of gold in the first year of operation in 2024 and an estimated 225,000 ounces of gold per year from both surface and underground mining operations over 24 years. A total of 5.4 million ounces of gold is expected to be produced over the LoM in the PEA, an approximately 20% increase from the previous PEA prepared by Gold X Mining in July 2019. We have already commenced pre-construction activities at the Toroparu Project site. We have hired Haukes Construction (Guyana) Ltd., a division of Haukes NV of Suriname, for construction of the preliminary earthworks at Toroparu, with development of the permanent man-camp, airstrip and rock quarries currently underway. Preparations are also being made for the rehabilitation of the historical access road commencing early next year. Based on the technical and financial merits demonstrated by the PEA and funded by the US$300 million Senior Notes financing we closed in August and the Wheaton stream, we are proceeding with construction of the Toroparu Project, which is initially focused on the surface mining of higher-grade gold processed through a 7,000 tonnes per day (“tpd”) gold leach mill. The PEA envisions an expansion of milling capacity to 14,000 tpd with the addition of a copper concentrator in year 6 and the addition of underground mining operations in year 10 of the mine life. Importantly, the Toroparu Deposit is open both along strike and at depth with the additional mineralization potential below the 450 m level amenable to underground mining methods. We believe the Toroparu Project has the potential to be a multi-generational gold mine which can create significant value for our shareholders, solidifying its position along with our Segovia Operations as a cornerstone asset in GCM Mining.”

Mineral Resource Estimate (“MRE”) Update Effective November 1, 2021

The MRE, which is summarized in Tables 1 and 2 below, was prepared by Nordmin following a two-phase diamond drill program carried out by Gold X Mining in 2020-2021 which comprised a total of 20,750 meters in 114 drill holes. The updated MRE includes an open pit and a maiden underground resource estimate within the Toroparu Main & NW and SE deposits that are defined by multiple discreet northwest and east-west oriented high grade mineralized structures that intersect in a repeatable pattern over an estimated four kilometers of strike, 400-450 m in width, and 450-500 m in depth. The satellite deposits consist of the Southeast zone (SE) and the Sona Hill satellite gold deposits.

Table 1: Mineral Resource Statement for the Toroparu Gold Project

DepositAreaTypeResource
Category
TonnesAu
(g/t)
Au (oz)Cu
(%)
Cu (lb)Ag
(g/t)
Ag (oz)
ToroparuMain & NWOpen PitMeasured98,070,2911.213,809,1780.110238,111,6111.193,742,659
ToroparuMain & NWOpen PitIndicated62,531,3871.563,132,5090.100137,556,9470.911,828,430
ToroparuSoutheastOpen PitMeasured5,121,4481.16190,2850.0434,825,694
ToroparuSoutheastOpen PitIndicated2,403,0131.1488,3910.0522,762,872
Sona HillSona HillOpen PitMeasured6,958,1561.85413,2240.0081,241,3771.07238,790
Sona HillSona HillOpen PitIndicated4,179,9891.66223,0620.008699,7840.85114,530
ToroparuMain & NW & SEUndergroundMeasured727,4972.8466,4760.0721,150,9340.4711,100
ToroparuMain & NW & SEUndergroundIndicated4,977,6043.21513,9140.0919,937,2520.4166,013
Subtotal: Measured 110,877,3921.264,479,1630.100245,329,6161.123,992,550
Subtotal: Indicated 74,091,9931.663,957,8750.092150,956,8540.842,008,972
Subtotal: Measured & Indicated 184,969,3851.428,437,0390.097396,286,4701.016,001,522
ToroparuMain & NWOpen PitInferred4,018,4831.58203,6930.0807,117,5070.6684,986
ToroparuSoutheastOpen PitInferred9,4111.675050.0408,348
Sona HillSona HillOpen PitInferred1,365,0191.2856,2750.006178,8610.5423,789
ToroparuMain & NW & SEUndergroundInferred8,402,6113.53952,8450.09116,884,4240.2568,259
Subtotal: Inferred 13,795,5242.741,213,3170.08024,189,1390.40177,035
Total 198,764,9091.519,650,3560.00627,972,6100.976,178,557

Table 2: Mineral Resource Estimate Summary

TonnesAu (g/t)Au (oz)Cu (%)Cu (lb)Ag (g/t)Ag (oz)
Open Pit
Measured and Indicated179,264,2841.367,856,6490.097385,198,2831.035,924,409
Inferred5,392,9131.50260,4730.0617,304,7150.63108,776
Underground
Measured and Indicated5,705,1013.16580,3900.08811,088,1860.4277,113
Inferred8,402,6113.53952,8450.09116,884,4240.2568,259
Total
Measured and Indicated184,969,3851.428,437,0390.097396,286,4701.016,001,522
Inferred13,795,5242.741,213,3170.08024,189,1390.40177,035

Combined Open Pit and Underground Mineral Resources; the Open Pit Mineral Resource is based on a 0.40 g/t gold cut-off grade, and the Underground Mineral Resource is based on 1.80 g/t gold cut-off grade.

Mineral Resource Estimate Notes

  1. Combined Open Pit and Underground Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
  2. Underground and Open Pit Mineral Resources are based on a gold price of US$1,630/oz. This gold price is the three-year trailing average as of September 30, 2021.
  3. Open Pit Mineral Resources comprise the material contained within various Lerchs-Grossmann pit shells at various revenue factors. These revenue factors are as follows: Main/Southeast/NW Zone @ 0.75 revenue factor and Sona Hill @ 1.00 revenue factor. The gold cut-off applied to Open Pit Mineral Resources within the selected pit shells was 0.40 g/t.
  4. Underground Mineral Resources comprise all material found within Mineable Shape Optimizer (“MSO”) wireframes generated at a cut-off of 1.80 g/t gold including material below cut-off.
  5. Ag values are not reported for the Southeast Open Pit Ag contained metal values reported will not equal A tonnes X grade conversion calculation.
  6. Assays were variably capped on a wireframe-by-wireframe basis.
  7. Specific gravity was applied using weighted averages to each individual litho type.
  8. Mineral Resource effective date November 1, 2021.
  9. All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
  10. Excludes unclassified mineralization located within mined out areas.
  11. Reported from within a mineralization envelope accounting for mineral continuity.

The Mineral Resource Statement presented in Tables 1 and 2, was prepared by Independent Qualified Person (“QP”), Glen Kuntz, P. Geo. of Nordmin with the head office located in Thunder Bay, Ontario. The MRE is based on validated results of 528 surface drill holes totaling 178,491 m of diamond drilling for the Toroparu Deposit, representing a 19.7% increase over the previous MRE conducted in 2018, and 181 surface drill holes totaling 20,850 m for the Sona Hill Deposit that was completed between January 2006 and the effective date of November 1, 2021. The Mineral Resource Statement includes 72 surface drill holes totaling 10,166 m of diamond drilling conducted by Gold X Mining in the fourth quarter of 2020 together with an additional 73,439 gold (“Au”) assays, 70,628 copper (“Cu”) assays, and 35,054 silver (“Ag”) assays that were not included in the previous Mineral Resource update completed in 2018.

The MRE, which is effective from November 1, 2021, supersedes all previous MREs and Technical Reports filed by Gold X Mining Ltd. and Sandspring Resources Ltd. The MRE was optimized from previous estimates which defined resources contained in a lower grade bulk tonnage geologic model. The updated understanding of the geologic structural control over gold mineralization defines a lower volume, higher-grade core resource that can be mined using both open pit and underground mining methods. Further, the Phase 2 drill results indicate the scale of the mineralization that remains open to the northwest and at depth below 450-500 metres.

Toroparu PEA and LoM Plan

A mining study and schedule was prepared by the technical professionals at SRK and Nordmin to create a LoM production schedule for the Toroparu Project that will initially comprise open pit mine operations and ultimately expand in year 10 to include underground mine operations. Sustaining capital expenditures related to the development of the underground mining areas will commence in year 9 (2032).

The PEA also envisions a two-phase investment in processing facilities with an initial 7,000 tpd (2.55 Mtpa) Phase I nominal capacity in a gold leach plant based on gravity and CIL. Construction of a copper concentrator in years 4 and 5 (2027-2028) at a capital cost of approximately US$103 million (included in sustaining capital expenditures and AISC data) will increase Phase II nominal capacity to 14,000 tpd (5.1 Mtpa) by Year 6 (2029) of the LoM. The copper concentrator will be based on gravity and copper flotation circuits and will facilitate the recovery of 141.3 Mlbs of copper over its 19 years of operation.

The PEA LoM production schedule foresees a total of 107.3 million tonnes of mineralized material being processed over a 24-year mine life resulting in a total of 5.4 million ounces of gold produced at an average LoM total cash cost of US$742 per ounce and an average LoM AISC of US$916 per ounce. The initial capital cost, to be incurred between 2021 and 2023, is estimated to total US$355 million. At an expected long-term gold price of US$1,500 per ounce, total LoM undiscounted after-tax project cash flow from mining operations amounts to US$1.7 billion. At a 5% discount rate, the net present value of the total LoM after-tax project cash flow amounts to US$794 million. Before financing, the project has a 46% after-tax internal rate of return and payback of approximately two years.

A summary of the key estimated LoM production data in the PEA is summarized as follows:

Life of Mine24 years
Processing Rate – Phase I7,000 tpd / 2.6 Mtpa
Processing Rate – Phase II (starting in yr 6)14,000 tpd / 5.1 Mtpa
Recovered Gold5.4 Mozs
Recovered Silver2.5 Mozs
Recovered copper141.3 Mlbs
Average Gold Recovery88.4%
Pre-production Mined Tonnage17.1 Mt
Total Mined Tonnage (including pre-production) from Open Pit665 Mt
Total Milled Tonnage from Open Pit93.1 Mt
Open Pit Strip Ratio (waste: ore)6:1
Total Mined & Milled Tonnage from Underground14.2 Mt
Total Milled Tonnage107.3 Mt
Average Annual Gold Production225 Kozs
Average Mill Feed Grade – Gold1.78 g/t

A summary of the key operating and financial metrics over the 24-year mine life in the PEA is as follows;

PeriodGold
Prod.
Revenue
(3) 
OpexRoyalties
and
Freight
Insurance
Income
Taxes
Working
Capital
Operating
Cash
Flow
Sustaining
Capital
Free
Cash
Flow
Initial
Capex,
Net of
Up-Front
PMPA
Deposits
(4) 
Project
Cash
Flow
Cash
Cost
(5) 
AISC
(6) 
kozsUS$ MillionsUS$/oz
2021 (2)0000(3)(3)
20220000(78)(78)
20230000(135)(135)
2024280390(92)(32)(38)(18)210(12)198198439480
2025228318(96)(28)(34)(1)159(33)126126540686
2026204285(95)(26)(24)0141(24)116116584704
2027207289(99)(26)(18)(1)145(94)52525981,049
2028189263(100)(24)0(0)140(188)(48)(48)6491,642
2029171265(131)(22)(12)(5)95(14)8181735816
2030165262(141)(21)(10)(2)88(11)7777785849
2031160249(148)(21)(4)(2)74(26)48488931,058
2032213325(150)(27)(25)(0)123(82)41416921,076
2033203315(152)(26)(28)(0)109(84)25257141,126
2034198309(192)(25)(12)(8)72(53)19199231,190
2035225337(210)(26)(11)(4)86(71)15159401,254
2036290441(210)(33)(40)0158(34)124124709827
2037248367(213)(29)(23)(1)102(7)9595885913
2038245355(209)(28)(24)193(15)7878911973
2039214319(206)(25)(17)172(30)43439781,115
2040232345(209)(27)(25)(0)84(44)40409191,107
2041340491(204)(39)(68)1181(5)176176659673
2042352513(204)(40)(71)0198(67)131131625817
2043275407(200)(32)(44)1133(6)127127750772
2044300442(201)(34)(54)(0)152(14)138138704751
2045203312(178)(23)(27)588(7)8181846882
2046173254(128)(20)(26)1090(2)8888773783
204792133(73)(11)(12)1148(22)26268491,092
20480014141414
Total5,4077,988(3,843)(641)(650)2,855(944)1,911(217)1,694742916
(1)All figures are rounded to reflect the relative accuracy of the estimate. Totals may not sum due to rounding.
(2)Commencing November 2021.
(3)Revenue is based on long-term gold and silver prices of US$1,500 and US$20.22 per ounce, respectively, and US$3.13 per lb for copper. Revenues reflect the terms of the PMPA with WPMI. Under the terms of the PMPA, WPMI will purchase 10% of the gold and 50% of the silver production in exchange for up-front cash deposits totaling $153.5 million, of which US$15.5 million has already been received and the remaining US$138.0 million will be received during construction of the Project. In addition, WPMI will make ongoing payments to the Company once Toroparu is in operation at the lesser of the market price and US$400 per payable ounce of gold delivered over the life of the Project (subject to a 1% annual increase starting after the third year of production) and at the lesser of the market price and US$3.90 per payable ounce of silver delivered over the life of the Project (subject to a 1% annual increase starting after the fourth year of production).
(4)Initial capex represents the upfront capital costs for the development and construction of the Project totaling US$352.8 million, net of US$138.0 million of up-front cash deposits to be received from WPMI under the PMPA.
(5)Cash cost per ounce is a non-IFRS measure and is calculated on a by-product credit basis by deducting revenues from silver and copper production from the sum of opex, royalties and freight insurance and dividing the sum by the number of gold ounces produced. Opex includes mining, processing, site administration costs, freight, treatment and refining charges.
(6)AISC per ounce is a non-IFRS measure which adds sustaining capital per ounce produced to cash cost per ounce.

A conventional truck-shovel method was considered for the open pit portion of the Toroparu Deposit. The open pit analysis results in several distinct open pits coalescing into the NW and Main Toroparu Pits over time. The Sona Hill and Southeast Zone (SE) will be developed in a similar fashion beginning in year 3 and 6 respectively. The final dimensions of the NW Pit are approximately 990 m long x 690 m wide x 360 m deep. The dimensions of the Main Pit are approximately 1,300 m long x 750 m wide x 470 m deep. The open pit LoM plan proposes to mine approximately 93 Mt at a cut-off grade of 0.5 g/t Au and 558 Mt of waste rock material. The average stripping ratio for the open pit operations is 6:1 over the LoM. Each pit is currently planned to be developed with 29 phases each. Compacted saprolitic waste material will be used to construct haul roads, facility pads and flood control berms, levies and other structures.

Figures 1 & 2 accompanying this announcement are available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d7b3f570-60c4-4636-9b7d-e3fbb1b9b299

Underground development will commence at the beginning of the ninth year of open pit operation and targets 3,500 tpd, ramping up to full production over an approximately two-year period. The ramp-up allows for the main ramp system development at the 250 m elevation down from the surface portal in the NW Pit and to connect to both fresh air and return air raises, providing ventilation and secondary egress for the mine. Underground production is scheduled based on approximately 3,500 tpd mill feed and 750 tpd average waste, excavated using a fleet of 15 and 10 tonne load-haul-dump loaders, hauled with 45 tonne trucks using the ramps to portals entrances and rehandled using the surface fleet. Production is expected to commence in the central area between the Main and NW Pits from 360 Level (approximately 360 m elevation below surface) and continues for the first 2 years in a bottom-up sequence. It is anticipated that mining next transitions to production from lower mining areas below and around Main and NW Pits for approximately the final 10 years of the LoM.

Figure 3 accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/64873fb2-268a-4c3c-b5e7-99e91393a8ff

Next Steps Toward the Development of the Toroparu Project

The results of the PEA for Toroparu affirm the Project’s technical and financial merits using base case and sensitivity metal price assumptions and the inputs in some areas from advanced historical studies completed by Gold X Mining that were at Pre-Feasibility Study (“PFS”) or Feasibility Study (“FS”) levels. The Company plans to execute the mine plan outlined in the PEA in phases, commencing initially with construction of the Phase I surface mine and the 7,000 tpd gold leach process mill. A PFS focused on the initial 10 years of surface mining is anticipated to be completed in the first quarter of 2022.

The Government had previously accepted the previous PEA prepared by Gold X Mining in July 2019 as satisfying the requirement in the Company’s Mineral Agreement for delivery of a technical study demonstrating the feasibility of the Project. Since this new PEA reflects a major, and much improved, change in the operating plan for the Project, it is expected that the Government will review this PEA prior to issuing the Mining License in 2022.

The Company has hired Haukes Construction (Guyana) Ltd., a division of Haukes NV of Suriname, for construction of the preliminary earthworks at Toroparu, with development of the permanent man-camp, airstrip and rock quarries currently underway. Rehabilitation of the historical access road constructed in 2004 that links Toroparu to tidewater at Itaballi Station, at the confluence of the Mazaruni, Cuyuni and Essequibo Rivers, is expected to commence in the first quarter of 2022.

Technical Report and Qualified Persons

A Technical Report prepared in accordance with NI 43-101 for the Toroparu Gold Project PEA will be filed on SEDAR (www.sedar.com) on or before January 14, 2022. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Resource. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

Disclosure of a scientific or technical nature in this news release has been approved by Glen Kuntz, P. Geo. (Ontario) of Nordmin Engineering Ltd., a “Qualified Person”. Mr. Kuntz has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information it contains.

The Qualified Person responsible for the preparation of the Toroparu Gold Project Updated Mineral Resource Estimate is Glen Kuntz, P. Geo. (Ontario) of Nordmin Engineering Ltd. The Qualified Person responsible for the preparation of the Open Pit Mine Design and Costing, Combined Underground and Open Pit Production schedule, and Economic analysis is Fernando Rodrigues, P. Eng. of SRK Consulting (USA) Ltd. The Qualified Person responsible for the preparation of the Underground Mine Design Costing, and Sequencing is Brian Wissent, P. Eng. (Ontario) of Nordmin Engineering Ltd. The Qualified Persons responsible for the preparation of the Pit Slope and Underground Geotechnical Designs and specifications are Daniel Yang, P. Eng. and Ben Peacock, P. Eng. of Knight Piesold. Kurt Boyko, P.Eng., of Nordmin Engineering Ltd. is the Qualified Person responsible for processing, metallurgy, and Surface Infrastructure. Gonzalo Nureno, P. Eng. of Klohn Crippen Berger is the Qualified Person responsible for design of the TSF, its water management infrastructure, site water balance and surface water management, and Closure. Each of Messrs. Kuntz, Rodrigues, Wissent, Yang, Peacock, Boyko, and Nureno are considered to be an “Independent Qualified Person” under NI 43-101.

About GCM Mining Corp.

GCM Mining Corp. is a mid-tier gold producer with a proven track record of mine building and operating in Latin America. In Colombia, the Company is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia Operations. In Guyana, the Company is advancing the Toroparu Project, one of the largest undeveloped gold/copper projects in the Americas. The Company also owns an approximately 44% equity interest in Aris Gold Corporation (TSX: ARIS) (Colombia – Marmato), an approximately 27% equity interest in Denarius Silver Corp. (TSX-V: DSLV) (Spain – Lomero-Poyatos; Colombia – Guia Antigua and Zancudo) and an approximately 26% equity interest in Western Atlas Resources Inc. (TSX-V: WA) (Nunavut – Meadowbank).

Additional information on GCM Mining can be found on its website at www.gcm-mining.com and by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Statement on Forward-Looking Information:

This news release contains “forward-looking information”, which may include, but is not limited to, statements with respect to Mineral Resource estimates, future production, the development and construction of mining and processing operations, capital expenditures and projected financial results, and the timing of any of the foregoing, in addition to its anticipated business plans or strategies. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which 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. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include but are not limited to development or mining results not being consistent with the Company’s expectations, risks associated with the estimation of Mineral Resources and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined or metal recoveries varying from Mineral Resource estimates, mine plans and LoM estimates, including all of the factors considered in developing the LoM plan and all key operating and financial metrics used in calculating the LoM in the PEA; the anticipated timing at which various phases of mining will commence; the timing of the completion of the PFS focusing on the first ten years of surface mining; the commencement date of the rehabilitation of the Southern Access Road; and those risks described under the caption “Risk Factors” in the Company’s Annual Information Form dated as of March 31, 2021 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Reliance on PEA and Mineral Resource Estimates

A PEA is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a preferred mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, is established and an effective method of mineral processing is determined. It includes a financial analysis based on reasonable assumptions on any modifying factors and the evaluation of any other relevant factors which are sufficient for a Qualified Person, acting reasonably, to determine if all or part of the Mineral Resource may be converted to a Mineral Reserve at the time of reporting. A PEA is at a lower confidence level than a PFS or FS.

The Mineral Resources in this press release were estimated using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council and incorporated by reference in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. There is no certainty that Inferred Mineral Resources will be converted to the Measured and Indicated Resource categories through further drilling, or into Mineral Reserves, once economic considerations are applied. Therefore, readers are cautioned not to assume that part or all of an Inferred Mineral Resource exists or is economically or legally mineable.

For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com

(1)

Figures 1 & 2Figure 3
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Renforth Completes Trenching Program at Victoria West, Exposing Continuous Nickel, Cobalt, Copper and Zinc Over the Entire 275m Stripped

Renforth Resources Inc. (CNSX:RFR.CN) (OTC:RFHRF) (FSE:9RR) (“Renforth” or the “Company”) is pleased to share the success of our stripping program on our Victoria West Battery Metals system where we exposed nickel, cobalt, copper and zinc over the entire ~275m which was trenched, located between mineralized drill holes from our recently announced 2.2km drilled strike length, with each of those holes intersecting battery metals.

“We are quite happy with the visual and XRF results from the field, Victoria West is proving to be a very interesting site, currently stretching over ~5kms, containing nickel and cobalt needed for energy storage, copper required to build EVs and zinc, a new addition to the US critical minerals list. The big question is what happens to the mineralization as we go east, along the remaining ~15kms of the magnetic anomaly associated with the nickel and cobalt, before we reach the Colonie site, at the very eastern end. 2022 will tell us whether, or how big, Victoria West grows” states Nicole Brewster, President and CEO of Renforth.

Program Summary

 

Trenching at Surimeau was completed in early November. The main part of the trench is approximately 275 meters in length and oriented roughly east-west. East and West crosscuts were excavated at both ends of the main trench and are oriented roughly North-South. The western crosscut follows a drill trail from the 2021 Winter-Spring drilling program and is about 200 meters in length. The eastern crosscut is about 150 meters in length. A total of 53 channels were cut through all of the trenching, varying in length from 2 to 42 meters. A grand total of 704 samples were taken, 25 grab samples and 24 blanks. The mineralized main shear zone is present and exposed along the entire length of the main trench, trending west-south-west. Notable mineralization is also present within an alteration package along the north side of the main shear along the entire exposed length of it in the trench.

 

The Huston discovery, ~18km NW of Victoria West and within the Surimeau District Property, where Renforth previously announced a discovery grab sample with an assay of 1.9% Ni, 1.38% Cu, 1170ppm Co and 4 g/t Ag, within a strongly foliated diorite with patchy oxidation on the weathered surface was revisited. Management considers this grab sample a new discovery; however, a grab sample is selected by the geologist and may not be representative of the property as a whole. In order to learn more about this discovery the exposed diorite was revisited, and the outcrop was exposed manually to create an approximate 25m2 area. A total of 6 channels were cut and 19 additional samples were taken.

Samples taken from both areas have been delivered to the lab for assay, results will be released when available.

 

Current Surimeau District Activities

 

The following are currently ongoing:

 

1 – Assay results from the beginning of the trenching/channeling at Victoria West have begun to be received, they will be released at once upon receipt of all the results

2 – The latest drone video shot during the program has been uploaded the Renforth’s YouTube channel

3 – Detailed drone photography is being stitched together and will aid in digitizing mapping done of the stripped area

4 – Planning has begun for an EM/Mag survey at Victoria West over a portion, or the entire, ~20km magnetic anomaly. This survey will “see” the sulphides, which are commonly connected in ribbons and stringers, giving us greater detail on the structure.

5 – Drill core sample material is being selected for additional assaying to determine what degree of platinum group element mineralization is present. The only testing for platinum and palladium carried out to date was on the initial surface prospecting samples taken from the Colonie, LaLonde and Victoria West areas in June 2020 which gave positive assay results, demonstrating these metals are present at each location.

 

Current Parbec Gold Deposit Activities

 

The following are currently ongoing;

 

1 – Our deposit model on sections is being updated by our geologists with the results from the >15,000m of drilling completed earlier this year.

2 – This process is highlighting additional sampling which needs to be carried out. As we have previously stated it is difficult to visually assess the presence of gold in Parbec drill core, with rare exception. This leads to areas not being sampled, which we now know need to be sampled based on recent results. We will do the additional sampling as soon as possible. If this sampling results in gold results it will positively impact our deposit model.

3 – Renforth is pursuing a structural study on Parbec, this sort of work has not been done to date.  Given the obvious similarities with the structural setting of Parbec and Canadian Malartic (though Malartic is larger), the exploration team feels that shareholders will be best served at this time by efforts to identify the controls on gold mineralization, especially the higher grade “magnetic diorite” mineralization.

Historically the East Malartic and Barnat deposits, now part of Canadian Malartic and located ~6.5 km along strike on the Cadillac Break, indicate a close association with magnetic diorite, feldspar porphyries, shear zones and gold trends. Structurally, gold deposits in this environment are controlled by strike slip faults and shear zones which follow varied strikes and dips. Mineralized volumes have been described by various authors as lozenge lenses not always attached to main structures, the gold mineralization is sulfides poor and contained in quartz-carbonate filled fracture systems.1

 

Technical disclosure in this press release has been reviewed and approved by Francis R. Newton P.Geo (OGQ#2129), a “qualified person” pursuant to NI 43-101.

 

1 excerpted from an internal memo “SUMMARY: The Parbec Project, Malartic: Signature and Targeting”, Martin Demers P.Geo (OGQ#770), a “qualified person” pursuant to NI 43-101.

 

For further information please contact:

Renforth Resources Inc.

Nicole Brewster

President and Chief Executive Officer

C:416-818-1393

E: nicole@renforthresources.com

#Unit 1B – 955 Brock Road, Pickering ON L1W 2X9

 

Follow Renforth on Facebook, LinkedIn and Instagram!

 

About Renforth

Renforth wholly owns the ~260 km2 Surimeau District Property, which hosts numerous areas of polymetallic and gold mineralization, each with various levels of exploration, as well as a significant amount of unexplored ground. Victoria West has been drilled over a strike length of 2.2km, within a 5km long mineralized structure, proving nickel, copper, zinc and cobalt mineralization, in the western end of a 20km magnetic anomaly. The Huston target, during initial reconnaissance, resulted in a grab sample grading 1.9% Ni, 1.38% Cu, 1170 ppm Co and 4 g/t Ag. In addition to this the Lalonde, Surimau and Colonie Targets are all polymetallic mineralized occurrences which, along with various gold showings, comprise the areas of potential of this NSR free property.

 

In addition to the Surimeau District battery metals property Renforth wholly owns the Parbec Gold deposit, a surface gold deposit contiguous to the Canadian Malartic Mine property in Malartic, Quebec. In 2020/21 Renforth completed 15,569m of drilling which successfully twinned certain historic holes, filled in gaps in the resource model with newly discovered gold mineralization and extended mineralization deeper. Based upon the success of this significant drill program the Company considers the spring 2020 MRE, with a resource estimate of 104,000 indicated ounces of gold at a grade of 1.78 g/t Au and 177,000 inferred ounces of gold at a grade of 1.78 g/t Au to be out of date. With the new data gained Renforth will undertake to complete the first ever structural study of the mineralization at Parbec, as well as additional total metallic assay work in order to better contextualize the nugget effect on the gold mineralization.

 

Renforth also holds the Malartic West property, the site of a copper/silver discovery, and Nixon-Bartleman, west of Timmins Ontario, with gold present on surface over a strike length of ~500m.

 

No securities regulatory authority has approved or disapproved of the contents of this news release.

 

Forward Looking Statements

 

This news release contains forward-looking statements and information under applicable securities laws.  All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as ‘may’, ‘will’, ‘plan’, ‘expect’, ‘believe’, ‘anticipate’, ‘estimate’, ‘intend’ and similar words referring to future events and results. Such statements and information are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary approvals, licenses and permits and the availability of financing, as described in more detail in the Company’s securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Forward-looking information speaks only as of the date on which it is provided and the Company assumes no obligation to revise or update these forward-looking statements except as required by applicable law.

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Channel Sampling at Porco Adit returns 103m Strike Length Grading 521 Ag eq/t (including 117 g Ag/t, 1.44 g Au/t, 0.54% Cu and 0.66%Sn) at Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to provide an update on its Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. To date, the Company has completed 35,738 metres (m) in 68 drill holes including three (3) in progress to test major target areas at Iska Iska. This press release reports drilling results from one (1) additional hole which tested the Porco Breccia Pipe (“PBP”) (Hole DPC-01) and new underground channel sampling from the Porco adit located approximately 200m south of the PBP. Currently three drill rigs are in operation at Iska Iska. Two surface drill rigs are continuing to drill at the Santa Barbara Resource Definition Target Zone (Figure 1) to outline an initial National Instrument 43-101 (“NI-43-101”) compliant resource. A third drill, an underground rig, situated in the west end of the Santa Barbara Adit, is testing the eastern part of Santa Barbara Breccia Pipe (“SBBP’) and its mineralized envelope. Figure 1 is a geological plan map showing locations of drill holes completed, in progress and planned to complete resource definition drilling along with an updated geological interpretation. Figure 2 is a plan map of channel sampling at the Porco adit. Table 1 provides significant drilling results with definitions of chemical symbols, Table 2 details channel sample results from the Porco adit and Table 3 lists holes completed with assays pending, as well as holes in progress in the three major target areas. Highlights include:

Porco Adit

  • Channel sampling in the Porco adit returned 521.33 g Ag eq/t (including 117.10 g Ag/t, 1.44 g Au/t, 0.54% Cu and 0.66% Sn) over a 103m strike length with an average channel width of 1.8m as shown in Figure 2 and Table 2. Mineralization in the Porco adit is hosted in a series of veins, veinlets, stockworks and disseminations in Ordovician quartz sandstone. The veins are parallel to and crosscutting the drift. In the western part of the drift veins are primarily sulphide-bearing whereas those in the eastern half are primarily oxide. Eloro believes mineralization at the Porco adit is sourced from a large underlying porphyry system as evidenced by recently acquired magnetic susceptibility data.

Porco Breccia Pipe

  • Hole DCP-01 drilled due west at -65 degrees from the Porco radial platform intersected sixteen (16) separate zones of quartz-tourmaline veins in granodioritic intrusive breccia with best results of 110.30 g Ag eq/t over 3.0m, 67.08 g Ag eq/t over 6.0m including 168.25 g Ag eq/t (25.0 g Ag/t, 1.31% Zn, 0.32% Pb and 0.25% Sn) over 1.54m, 131.16 g Ag eq/t (18 g Ag/t, 0.54% Cu and 0.31% Bi) and 80.66 g Ag eq/t over 3.0m (0.23% Sn).

Figure 3 is a longitudinal section (A-A’ in Figure 1) showing the inverse model of magnetic susceptibility which highlights major targets and geological features. Figure 4 is a 3D view of the inversion model showing that Hole DPC-01 just clipped the edge of a very strong and extensive magnetic susceptibility anomaly below and to the northwest of the PBP. The strongest part of the anomaly, as shown in Figure 5, a cross section along drill hole DPC-01 (B-B’ in Figure 1), is located just to the northwest of this hole in the very prospective gap area between the Central Breccia Pipe and the PBP (see Figure 1). Further drilling is planned to test this target once definition drilling at the Santa Barbara Resource Definition Target Zone is completed.

Definition Drilling Santa Barbara Target Area

Definition drilling is continuing in the Santa Barbara Resource Definition Target Zone as shown in Figure 1. Currently a series of SW-NE sections at approximately 100m intervals are being completed with holes drilled on each section at -40 degrees and –65 degrees to provide coverage over the full target strike length of 1,400m. Underground drilling is continuing in the Santa Barbara adit to evaluate the resource potential in the mineralized envelope east of the SBBP. It is anticipated that the definition drilling program will be completed by early December.   Drilling will then refocus on exploration of the major magnetic targets in the Central-Porco target area as outlined above.

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “The magnetic data have proven invaluable in outlining the overall extent of the massive porphyry-epithermal system at Iska Iska. The higher-grade mineralized zones at Iska Iska tend to be magnetic hence the areas with high magnetic response are very prospective targets. Our geophysical team is also currently processing the downhole IP data from the Santa Barbara Resource Definition Target Zone which should help to better define the overall extent of mineralization especially zones with higher sulphide content which are generally higher grade.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro`s Bolivian subsidiary, Minera Tupiza S.R.L. (“Minera Tupiza”), said: “The mineralization in the Porco adit is interpreted to be the lower part of the high sulphidation epithermal system which is likely connected to a major tin porphyry at depth as suggested by the extensive magnetic susceptibility anomaly. The intersections in Hole DPC-01 which are most abundant where this hole clipped the magnetic susceptibility anomaly are tin-rich supporting this conclusion. Our work continues to expand the remarkable mineralized system at Iska Iska which has now been shown to be at a district-scale.”

Dr. Quinton Hennigh, P.Geo., Eloro’s Senior Technical Advisor, commented: “The return of impressive polymetallic grades from the Porco adit confirm that the Iska Iska mineral system extends a remarkable 2.5 km from north to south. Metal endowments display notable zonation along this corridor from Ag-Zn-Pb-rich in the north to Ag-Sn-rich in the middle to Ag-Sn-Cu-Au-rich in the south. This is likely a reflection of proximity to the underlying source porphyry believed to be situated along the southern margin of the caldera complex as evidenced by recently collected magnetic data. The southern part of the Iska Iska system shows great potential for further discovery. It will be exciting to see drilling resume in this area.”

Table 1: Significant Diamond Drilling Results, Iska Iska, as at November 17, 2021: https://www.globenewswire.com/NewsRoom/AttachmentNg/09ba03c4-1872-4fcc-b36f-183db890eeb9

Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites. It is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling. Percentage metal contents are shown for each element.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows:

ElementPrice (per kg)Ratio to Ag
Ag$875.001.00000
Sn$28.000.03200
Zn$2.800.00320
Pb$2.100.00240
Au$57,40065.6000
Cu$8.800.01006
Bi$12.760.01458
In$305.000.34857
Cd$5.500.00629

In calculating the intersections reported in this press release a sample cutoff of 30 g Ag eq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section unless more dilution is justified geologically.

The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Preliminary metallurgical tests are in progress to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.

Table 2: Channel Sampling Results, Porco Adit. Note that the samples are continuous channel samples across the vein structures as shown in Figure 2 below. The “From” and “To” distances are the area of influence for each sample used in the weighted average grade calculation: https://www.globenewswire.com/NewsRoom/AttachmentNg/ffa132a4-09de-4092-979e-00adafdc0f7c

Table 3: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from November 17, 2021 press release.

Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole Length m
Surface Drilling Northwest Extension Santa Barbara
DSB-12S205072.77656867.54165.0225-40806.2
DSB-13S205072.77656867.54165.0225-60696.5
DSB-14S205283.07656587.24175.0225-65968.5
DSB-15S204973.17657053.84165.0225-40731.2
DSB-16S204973.17657053.84165.0225-65862.0
DSB-17S7656765.4205131.34173.0225-40841.0
DSB-18S7656676.3205207.14175.0225-40890.4
DSB-19S7656676.3205207.14175.0225-65803.3
DSB-20S7656765.4205131.34173.0225-65896.5
Subtotal7,495.6
DSB-21S7657138.0204870.04135.0225°-40In progress
DSB-22S7657208.4204799.44145.0225°-40In progress
Underground Drilling Santa Barbara Adit
DSBU-1UG205285.27656074.84165.090-10260.5
DSBU-2UG205285.27656074.84165.0270-20563.6
DSBU-3UG205285.27656074.84165.0270-20443.5
DSBU-4UG205285.27656074.84165.0180-20570.0
Subtotal1,837.6
DSBU-5UG7656074.8205285.24165.0-40In Progress
Central Breccia Pipe – Surface Radial Drill Program – North Setup
DCN-06S204902.07655860.04420.0180-80626.4
DCN-07S204902.07655860.04420.0270-60680.4
Subtotal1,306.8
Central Breccia Pipe – Surface Radial Drill Program – South Setup
DCS-04S204852.17655612.34429.7180-60644.4
Subtotal644.4
Porco Central – Surface Radial Drill Program
DPC-02S205457.27655110.94175.0225-60908.2
DPC-03S205457.27655110.94175.0135-60524.5
DPC-04S205457.27655110.94175.00-60371.4
DPC-05S205457.27655110.94175.090-60407.5
DPC-06S205457.27655110.94175.0243-60716.4
Subtotal2,928.0
TOTAL14,212.4

S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 13, 2020, is 35,738 m in 68 holes including 3 holes in progress (23 underground holes and 45 surface holes).

Figure 1: Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed, in progress and planned. Drill holes for which assays are reported in this release and the location of the Porco adit are highlighted. Locations of Sections in Figure 3 (A-A’) and Figure 5 (B-B’) are also shown: https://www.globenewswire.com/NewsRoom/AttachmentNg/153d2784-8eef-45ad-abca-d05860e6cb2a

Figure 2. Plan Map of Channel Sampling, Porco Adit: https://www.globenewswire.com/NewsRoom/AttachmentNg/1f3d819b-bad5-45f4-a0bf-171621ea6632

Figure 3. Longitudinal Section Showing the Inverse Model of Magnetic Susceptibility. Susceptibility Highlights Major Targets and Geological Features. The location of this Section A-A’ is shown in Figure 1: https://www.globenewswire.com/NewsRoom/AttachmentNg/4eb5b907-2b81-4785-8f51-6dd3f8c676ac

Figure 4: 3D Magnetic Inversion Model Showing Location of Drill Hole DPC-01. Note how Hole DPC-01 just clips the 3D inversion model shown where the drill hole trace is red: https://www.globenewswire.com/NewsRoom/AttachmentNg/e7ed3ee0-17d6-479d-b080-6cecb3edca1a

Figure 5. Cross Section Looking North of Magnetic Inversion Model Showing Location of Drill Hole DPC-01. The Magnetic High to the Northwest of the Hole is a Priority Target for Drill Testing. The location of this section B-B’ is shown in Figure 1: https://www.globenewswire.com/NewsRoom/AttachmentNg/2aca4daf-333a-44b4-b158-d285dd976b82

Qualified Person

Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza, and a Qualified Person in the context of NI 43-101, has reviewed and approved the technical content of this news release.   Dr. Bill Pearson, P.Geo., Executive Vice President Exploration Eloro, and who has more than 45 years of worldwide mining exploration experience including extensive work in South America, manages the overall technical program working closely with Dr. Arce. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited are regularly consulted on technical aspects of the project.

Drill samples are prepared in ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia with pulps sent to the main ALS Global laboratory in Lima for analysis. As announced in the February 26, 2021 press release, Eloro has changed the assay protocol to utilize X-ray fluorescence (XRF) to more accurately analyze higher tin. Tin in the CBP is suspected to occur as cassiterite which is insoluble in acid digestion, and therefore not suited for wet chemical techniques.   In addition, other assay protocols have been changed to provide for a more accurate measurement of the wide-ranging suite of polymetallic metals at Iska Iska. Eloro employs an industry standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.

Recently, AHK Laboratories, who manage a global network of laboratories have setup operations in Bolivia with the establishment of a preparation laboratory in Oruro. AHK has a strong base of accredited laboratories in South America including Peru, Chile, Brazil and Argentina. Eloro has contracted AHK to provide additional analytical services in order to help reduce the sample backlog. A series of check samples are currently being analyzed by AHK as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols. The use of both accredited laboratories is reducing the backlog of samples to be analysed and improving turnaround.

The magnetic survey was carried out by MES Geophysics using a GEM Systems GSM-19W Overhauser magnetometer. Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration provided the survey design, preparation of the maps and interpretation from data processed and quality reviewed by Rob McKeown, P. Geo. of MES Geophysics. Messrs. Hale, Gilliatt and McKeown are Qualified Persons as defined under NI 43-101.   The 3D magnetic inversion model was prepared by Mr. Joe Mihelcic, P.Eng., P.Geo. of Clearview Geophysics in consultation with Messrs. Hale and Gilliatt. Mr. Mihelcic is a QP under NI 43-101.

About Iska Iska

Iska Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6km by 1.8km in dimension with a vertical extent of at least 1km. Mineralization age is similar to Cerro Rico de Potosí and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi located in the same geological trend.

Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on September 13, 2020. On November 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On November 24, 2020, Eloro announced the discovery of the SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.

Since the discovery hole on the SBBP, Eloro has released a number of significant drill results on this target, including:

  • 122.66 grams g Ag eq/t (35.05 g Ag/t, 0.72% Zn, 0.61% Pb, 0.11% Sn and 0.06 g Au/t) over 123.61m including 205.74 g Ag eq/t (92.30 g Ag/t, 0.57% Zn, 0.85% Pb, 0.18% Sn and 0.07 g Au/t) over 32.32m (DSB-07),
  • 105.41 g Ag eq/t (8.55 g Ag/t, 1.01% Zn, 0.48% Pb, 0.06% Sn and 0.38 g Au/t) over 173.58m including 199.77 g Ag eq/t (21.90 g Ag/t, 1.18% Zn, 0.93% Pb 0.12% Sn and 0.94 g Au/t) over 39.08m (DSB-07)
  • 69.89 g Ag eq/t over 252.89m from 355.12 to 608.02m including several higher-grade sections of 196.60 g Ag eq/t including 131.13 g Ag/t over 14.52m, 134.62 g Ag eq/t including 93.25 g Ag/t over 21.08m and 145.35 g Ag eq/t including 2.38% Zn over 10.11m (DSB-08).
  • 114.96 Ag eq/t including 0.325% Sn over 56.2m including a higher-grade section of 187.98 g Ag eq/t including 0.535% Sn over 28.86m; 80.71 g Ag eq/t including 0.213% Sn over 74.39m and 118.69 g Ag eq/t over 10.77m (DSB-10).
  • 129.65 g Ag eq/t (18.38 g Ag/t, 2.14% Zn, 0.67%Pb, and 0.047% Sn) over 300.75m from 65.14m to 365.91m, including higher grade intervals of 215.54 g Ag eq/t over 72.76m, 163.35 g Ag eq/t over 31.83m and 224.48 g Ag eq/t over 19.39m. 82% of this 446.5m long hole contained reportable intervals (DHK-18).
  • 234.19 g Ag eq/t (70.58 g Ag/t, 2.31% Zn, 2.74% Pb and 0.042% Sn) over 53.2m including a higher-grade portion of 931.73 g Ag eq/t (367.29 g Ag/t, 5.64% Zn, 13.67% Pb and 0.10% Sn) over 9.26m (DHK-20).
  • 108.24 g Ag eq/t (3.14g Ag/t, 0.24 g Au/t, 2.03% Zn and 0.58% Pb) over 48.2m including a higher-grade interval grading 180.76 g Ag eq/t (4.46 g Ag/t, 0.35 g Au/t, 3.57% Zn and 1.05% Pb) over 15.02m (DHK-19). 160.22 g Ag eq/t (36.53 g Ag/t, 1.63% Zn, 1.20% Pb and 0.10% Sn) over 194.14m (DHK-21) including higher grade portions of:
    • 250.50 g Ag eq/t (51.31 g Ag/t, 3.35% Zn, 1.78% Pb and 0.10% Sn) over 18.24m.
    • 257.40 g Ag eq/t (75.83 g Ag/t, 2.29% Zn, 2.40% Pb and 0.12% Sn) over 16.33m.
    • 350.91 g Ag eq/t (112.57 g Ag/t, 1.41% Zn, 3.08% Pb and 0.33% Sn) over 30.06m.
    • 64% of this 512.9m long hole contains reportable intersections
  • 94.68 g Ag eq/t (3.87 g Ag/t, 0.067 g Au/t, 1.63% Zn, 0.43% Pb and 0.05% Sn) over 169.93m including a higher-grade zone that graded 158.64 g Ag eq/t (9.35g Ag/t, 0.016 g Au/t, 3.43% Zn, 0.71% Pb and 0.03%Sn) over 29.84m (DHK-22).
  • 100g Ag eq/t (including 38.71 g Ag/t, 0.88%Zn and 0.51%Pb) over 188.5 m from 58.67m to 247.13m including a higher-grade portion of 154 g Ag eq/t (including 75.51 g Ag/t, 0.96% Zn, 0.65% Pb and 0.16%Cu) over 65.8m (DHK-23)

On May 4, 2021, Eloro released results from the first drill hole on the CBP. Hole DCN-01 intersected multiple mineralized intercepts including 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m and containing 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m.

Hole DCN-04 drilled at -80 degrees to the north from the northern radial platform of the CBP, intersected seventeen (17) mineralized intersections, principally Sn-Ag-bearing, over its 851.4m length. Best results include: 71.54 g Ag eq/t (32.58 g Ag/t and 0.10% Sn) over 97.10m from 134.40 to 231.5m; 101.52 g Ag eq/t (28.74 g Ag/t and 0.19% Sn) over 62.01m; 70.42 g Ag eq/t (28.74 g Ag/t and 0.16% Sn) over 22.59m; and 236.96 g Ag eq/t (92.21 g Ag/t and 0.25% Sn) over 17.45m. Hole DCS-02 was drilled southeast at -60 degrees from the south radial platform of the CBP. This hole, which was drilled to 800.5m, intersected nine (9) reportable Ag-Zn-Pb-Sn mineralized intervals. Best results include 79.53 g Ag eq/t (including 0.21% Sn) over 19.42m, 101.01 g Ag eq/t (32.76 g Ag/t, 0.76% Zn, 0.75% Pb) over 10.47 and 130.95g Ag eq/t (34.14 g Ag/t, 0.10 g Au/t, 1.35% Zn and 0.56 % Pb over 7.40m.

A detailed ground magnetic survey of the Iska Iska property, reported on June 6, 2021, confirmed the extent of the Iska Iska Caldera as determined from geological mapping and satellite interpretation, including Aster data. The SBBP and CBP, both of which have been confirmed by drill-testing, are marked by prominent low anomalies reflecting strong alteration. The magnetic data suggests that the Central and Porco Breccia Pipes likely merge at depth. In addition, there is a prominent area of low intensity magnetics northwest of the SBBP which was reported on in this press release.

Geological mapping and satellite interpretation identified a third major breccia pipe target, Porco (South), that is approximately 600m in diameter (South) located southeast of the CBP in the southern part of the Iska Iska caldera complex. The Porco (South) Breccia Pipe target has a similar magnetic signature to the Santa Barbara and Central Breccia Pipes, further confirming the likelihood of it being a major breccia pipe. Six (6) drill holes have been completed on Porco; assay results are pending. Previous channel sampling in the Porco adit located adjacent the target area 200m to the southeast returned 50m grading 519.35 g Ag eq/t including 236.13 g Ag/t, 1.89 g Au/t, 0.87% Cu, 0.22% Bi and >0.05% Sn over an average sample width of 2.49m.

Currently three diamond drill rigs are active at Iska Iska, two surface rigs and one underground drill. Planned drilling for 2021 is 51,000m with the aim of outlining an initial inferred NI 43-101 compliant mineral resource by Q1 2022. The target zone at the SBBP and the surrounding mineralized envelope is 1400m along strike, 500m wide and extends to a depth of 600m. This zone is open along strike to the northwest and southeast. A downhole induced polarization/resistivity (IP/Res) survey is in progress to further define drill targets and aid resource definition drilling. Preliminary metallurgical tests are also in progress. An updated NI 43-101 Technical Report is being prepared by independent consultant Micon International Ltd.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Table 1Table 2Figure 1Figure 2Figure 3Figure 4Figure 5
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Renforth’s Polymetallic Victoria West Delivers a Suite of Battery Metals Near Surface with 2.2kms mineralized strike drilled within 5km structure, in a 20km magnetic anomaly

Renforth Resources Inc. (CSE:RFR) (CNSX:RFR.CN) (OTC:RFHRF) (FSE:9RR) (“Renforth” or the “Company”) is pleased to deliver to shareholders the results from our 21 holes drilled over a strike length of 2.2 kms at Victoria West, with each hole delivering mineralization and the four deeper holes demonstrating an increase in grade. The results reported on include the two 2021 drill programs and the results from resampling of the 2.5 holes drilled in 2020 in the intervals presented below. Surimeau is a wholly owned 260 km2 property in the Pontiac, south of the Cadillac Break and contiguous to the Canadian Malartic Mine. There are 5 areas of known polymetallic mineralization on the property, including the Huston target, 18kms NW of Victoria West, where Renforth recently reported a grab sample assaying 1.9% Ni, 1.38% Cu, 1170ppm Co and 4 g/t Ag and several gold showings.

 

Our Surimeau District Property hosts our first exploration for nickel, copper, cobalt – 3 of the primary metals required for batteries and, in particular, Electric Vehicles. While still at a very early stage, the extent of the findings outlined in this press release and the magnitude of additional potential within the 260 km2 property, its known targets and unexplored prospective ground warranting further exploration, Surimeau presents an exciting new path for Renforth Resources in metals that are forecast to be in high demand as the EV and energy storage market grows.

“This press release, summarizing our successful initial exploration at Victoria West, is quite long and detailed, I sincerely appreciate shareholders reading this in its entirety. Surimeau is very important to Renforth, with significant potential, our future focus will be on establishing our battery metals assets, backed by our gold deposit” states Nicole Brewster, President and CEO of Renforth.

Victoria West Drill Results

Victoria West, the first target to be drilled by Renforth, has a current mineralized strike length, comprised of Renforth’s drilling and surface sampling, along with prior drilling and surface sampling by Lac Minerals and other historic operators, of ~5km, co-incident with a mag high anomaly clearly visible on government geophysics, which continues to the east for ~15kms, where it ends on the Surimeau property at the Colonie target, which hosts polymetallic mineralization. It is the opinion of management and consulting geoscientists that Renforth’s results are sufficient to support historic results, confirming the strike length of Victoria West.  To the east, within the ~20km magnetic trend, the ground seems to be, upon brief field inspection, of low relief with little outcrop and unexplored, with no historic documentation available. The results of this drill program, including the measurement of magnetic susceptibility while logging core, demonstrate that the government survey is registering the magnetic signature of the nickel and cobalt bearing ultramafic body at Victoria West.  Renforth’s future plans include investigation of the ~14km of magnetic anomaly between Victoria West and Colonie in order to determine whether the mineralized ultramafic mineralization occurring with the magnetic anomaly over a 5 km portion of the anomaly continues the length of the anomaly.

Drilling has taken place at Victoria West in 3 different phases;

  • – October 2020 – a total of 2.5 holes were drilled in 194m using a track mounted drill which broke down 32m down the 3rd hole, ending the program. Each hole returned visible sulphides.

    – March/April 2021 – a total of 15 holes were drilled in 3456m over a strike length of 2.2km, these holes were drilled south in pairs, designed to cross the north-south “width” of the east-west striking magnetic ultramafic body, targeted with the government aeromagnetic survey.

    – June 2021 – a total of 4 holes were drilled in 773.2m, using the pads cleared for the prior drill program. These holes were each drilled north, at a steeper angle than the prior drilling, designed to undercut visually interesting results from the March/April drill program.

 

Victoria West Assay Highlights

 

Presented below is a highlight table for the 4,423.2m drilled at Victoria West. The intervals given are as measured in the core box, true width is not known at this time. Intervals in blue denote long measured lengths, intervals in red denote higher grade results, provided to aid in a quick review.

 

The mineralized body at Victoria West is currently interpreted to be an ultramafic intrusive body, carrying consistent nickel and cobalt mineralization, within which there are areas of higher grade. In the drilling the shoulders of the ultramafic, or the hanging and footwalls, demonstrate copper and zinc mineralization, including occasional zones of “mixing”.

 

The interpreted structure is currently considered consistent along the drilled strike, with variation in the width of the shoulder zones. Interestingly, the recently concluded stripping at Victoria West encountered much more copper and zinc on surface than was seen in the drilling, currently this is considered to be due to the variable presence of the ultramafic nickel/cobalt body and the magmatic copper/zinc body, consistent with our “Outokumpu style” model that suggests two different mineralized bodies juxtaposed in one location due to the circumstances of the mineralizing event.

 

Hole IDFromToLength (m)Cu %Ni %Co ppmZn %
SUR-20-010.7565.250.110.94
includes0.754.784.030.131.16
SUR-20-0114.1227.90.15127.94
includes1516.21.20.100.16 210 1.2
includes14.116.22.10.080.140.94
SUR-20-01212320.100.21
SUR-20-02314110.13
including91450.150.090.45
SUR-20-02919100.43
SUR-20-0235.656.120.50.13
including373810.170.290.43
including3742.755.750.35
SUR-20-0242.7556.113.350.14
SUR-20-0258.761.52.80.14
SUR-20-03232300.14113.50
incl2310.48365.00
or29.57.50.19143.50
SUR-21-0428.531.530.13
SUR-21-0440.3454.70.49
SUR-21-044850.32.30.12
SUR-21-0451.5608.50.35
SUR-21-0469.574.14.60.41
SUR-21-047981.32.30.27
SUR-21-0481.3121.440.10.1290.93
or81.3201119.70.1390.49
SUR-21-04126.4520174.550.1495.43
including182.7193.210.50.520.0979.660.44
including192.65193.20.550.950.17217.00
SUR-21-04193.22017.80.28165.65
SUR-21-059.111.32.20.51
SUR-21-0511.38472.70.1397.27
SUR-21-0585.396.711.40.120.81
SUR-21-0596.711417.30.1387.00
SUR-21-0668.169.81.70.26
SUR-21-0677.7595.217.450.62
includes77.7587.59.750.110.78
includes798120.151.46
SUR-21-0699.399.650.351.83
SUR-21-06100.45128.728.250.14105.90
includes100.451043.550.19140.60
includes125128.73.70.17143.60
SUR-21-06132.05133.151.11.20
SUR-21-06133.1520470.850.13112.47
includes133.15144.511.350.19165.20
SUR-21-074.580.6576.150.13105.92
includes63.568.655.150.40
includes68.6580.65120.21187.41
SUR-21-078387.954.950.190.15
SUR-21-07113.70114.651.000.391.44
SUR-21-07125.5133.17.60.54
SUR-21-07142.151441.850.21176.00
SUR-21-07146155.49.40.37
SUR-21-0852.554.31.80.56
SUR-21-0864.565.250.751.18
sur-21-0865.25170104.750.1193.75
SUR-21-08175.519317.50.1192.04
SUR-21-08194201.17.10.77
includes199.22011.90.161.34
SUR-21-08201.122220.90.14109.26
includes201.1205.54.40.18164.25
SUR-21-096.559.3552.850.1392.59
SUR-21-0967.368.310.291.48
SUR-21-0982.512138.50.1294.40
SUR-21-104.880.575.70.1292.36
or61590.1397.93
or36.2425.80.16135.97
or64.5694.50.1498.33
SUR-21-1089.6512030.350.1395.16
or11112090.14100.50
SUR-21-10125142.3120.18136.00
SUR-21-10144.81505.20.070.59
SUR-21-11421170.15103.27
includes182130.19128.50
SUR-21-11212320.64
SUR-21-1143.57935.50.1290.17
includes5155.54.50.1494.30
and757830.1488.27
SUR-21-123.91511.10.12113.47
SUR-21-1216.53013.50.070.32
includes222750.100.52
SUR-21-12313211.08
SUR-21-12343840.48
SUR-21-1255.668.813.20.1495.37
includes66.768.82.10.20118.04
SUR-21-1358.3560.62.250.60
SUR-21-1364.714479.30.12
includes64.765.60.90.100.12169.001.21
includes65.6693.40.18120.91
SUR-21-13169.519525.50.1295.62
SUR-21-1438.4539.51.051.68
SUR-21-1444153.3109.30.1288.38
includes50.556.560.1492.88
includes64.5705.50.1491.84
includes91.5964.50.1487.90
includes110.751165.250.18109.71
includes110.75111.70.950.32179.00
SUR-21-14166182.216.20.1395.27
SUR-21-14184.71927.30.1392.87
SUR-21-1552.6177.65125.050.1392.37
includes52.655.52.90.21152.83
includes8591.56.50.1493.93
includes120.1121.31.20.24194.00
includes125.5145.319.80.1589.05
or125.5129.64.10.1688.60
includes176.11770.90.22163.00
SUR-21-15186.1187.110.14126.30
SUR-21-15193.952017.050.13103.16
SUR-21-1625.511488.50.1397.31
includes6670.54.50.24106.66
SUR-21-16126.15130.854.70.15107.62
SUR-21-16130.85133.452.60.93
SUR-21-16138153.4515.450.1289.70
SUR-21-1758.776.417.70.1185.53
SUR-21-17100.35109.69.250.17131.76
includes106.25109.63.350.24200.04
includes108.35109.61.250.100.27247.000.26
SUR-21-1830.1551.221.050.060.51
includes394010.110.85
SUR-21-1856.48124.60.13110.37
includes56.4592.60.19143.34
includes76.1577.51.350.22200.00
SUR-21-1885.9588.52.550.110.52
SUR-21-1890.25151.461.150.14104.91
includes90.2590.90.650.130.20262.002.05
includes929860.22167.57
SUR-21-18157.85187.229.350.1197.49
SUR-21-18191212210.1187.98
SUR-21-18225.5283.6558.150.1292.22
includes271282.511.50.14103.38
SUR-21-191.55755.50.1396.89
includes5455.51.50.27228.00
SUR-21-19697230.18158.00
SUR-21-1975123480.1497.75
including99121.522.50.1598.69
SUR-21-19130.5237.7107.20.15112.64
includes160.5163.530.21156.00
includes169.618414.40.22196.40
SUR-21-201854360.14100.40
includes495450.21163.00
SUR-21-2057168.05111.050.17139.58
includes72.5112.5400.22168.98
includes122.5128.35.80.080.13128.671.22
SUR-21-20167.1180.3513.250.110.09144.001.59
SUR-21-20180.3519514.650.15148.08
includes185.41882.60.23247.04
SUR-21-2110.522.5120.1286.71
SUR-21-214557120.1388.78
SUR-21-2164.57813.50.1290.53
SUR-21-21118.5181.5630.1489.96

*lengths given in this table are as measured in core, true width is not known

 

“We, as a team, are very pleased to present Victoria West to shareholders as an interesting new battery metals discovery, this is very early stage with much more work to do as we are still open on strike, within a 20km structure, and at depth, with our best intersection in this program occurring between only approximately 50 and 80m vertical depth. Well located with road access and hydro-electric power Surimeau, with several known areas of polymetallic mineralization, is at the very beginning of its exploration and development cycle. It is quite exciting to work on an old occurrence, thought to be small scale and, as it was not gold, not of much interest in the 1980’s which, now that we are beginning to unlock the true size of the occurrence and identify the metals it contains, grows in importance each day” states Nicole Brewster, President and CEO of Renforth.

 

Victoria West Drilling and Stripping Plan


Click Image To View Full Size

 

Above is a plan view of the drill collar locations, as well as the location of the recently stripped area.  Access for drilling was obtained via the municipal road “Rapide Sept” shown at the right-hand edge of the map, then a lumber road which runs over the magnetic anomaly, with chipped trails off the lumber road. This allows vehicle access directly to the collar locations. Also visible is one of the hydroelectric power lines from the dam to the south which runs on the property, it is the vertical line over the cleared power line just inside the right-hand side of the image.

 

Indicated in yellow is the area of Oct/Nov. 2021 stripping at Surimeau where approximately 300m in east-west strike of mineralization has been uncovered and washed. This program revealed more copper on surface than we expected, based on the amount of copper observed in drill core. Channel samples have been taken and submitted for assay.

 

Initial Metallurgical Test Work (Previously Reported Feb. 18, 2021)

 

Renforth has only undertaken initial metallurgical work at Victoria West with grab samples from the summer of 2020. The work done is very limited and not reflective of all the lithologies and types of mineralization now seen at Victoria West. Planning for additional metallurgical work has begun, this may utilize the newly stripped ground which exposes several mineralization types on surface.

 

The previous press release stated that 16 grab samples from Victoria West which assayed over 0.1% Ni using four acid digestion were re-assayed using Aqua Regia, a comparison of the results leads to a simplistic conclusion regarding the percentage of silicate vs. sulphide content of each sample. Each sample was tested twice with the duplicates giving similar values using the Aqua Regia analysis method. The results, summarized, are one sample was less than 10% Ni in sulphide, one sample was in the 42% Ni in sulphide range, 3 samples in the 52% range, four samples in the 60% range, 3 samples in the 70% range, 3 in the 80% range and one in the 90% range. The mathematical average of the results for samples taken on Victoria West is 65.27% Ni in sulphide. Full results are available in the original press release.

 

Rock Value Calculators

 

Shareholders may find it helpful to calculate the total metal value of the polymetallic results in this release.

 

Calculators do the math of giving a USD/t value, however, users should be aware that this is a gross value, with no consideration for mining or smelting costs, transport etc.

 

https://www.juniorminingnetwork.com/drill-hole-calculator.html

https://www.kitco.com/pop_windows/kitcorockcalc.html

 

Drill samples reported on in this press release were all selected in the field from logged drill core, bagged, tagged, and sealed and delivered to initially AGAT Laboratories in Val D’Or where they were processed for Sodium Peroxide Fusion – ICP-OES/ICP-MS Finish Multi Element Analysis.

To date no testing has been done for platinum group elements.

 

Grab samples referred to in this press release (from Feb. 18, 2021 release) were obtained in the field, bagged, tagged and sealed and delivered to ALS in Val d’Or. Samples were split after crushing, with one split subjected to four-acid digestion. Subsequent to this the reject split was digested with aqua regia. Both splits were assayed by ICP-MS analysis.

 

Technical disclosure in this press release has been reviewed and approved by Francis R. Newton P.Geo (OGQ#2129), a “qualified person” pursuant to NI 43-101.

 

For further information please contact:

Renforth Resources Inc.

Nicole Brewster

President and Chief Executive Officer

C:416-818-1393

E: nicole@renforthresources.com

#269 – 1099 Kingston Road, Pickering ON L1V 1B5

 

About Renforth

Renforth wholly owns the ~260 km2 Surimeau District Property, which hosts numerous areas of polymetallic and gold mineralization, each with various levels of exploration, as well as a significant amount of unexplored ground. Victoria West has been drilled over a strike length of 2.2km, within a 5km long mineralized structure, proving nickel, copper, zinc and cobalt mineralization, in the western end of a 20km magnetic anomaly. The Huston target, during initial reconnaissance, resulted in a grab sample grading 1.9% Ni, 1.38% Cu, 1170 ppm Co and 4 g/t Ag. In addition to this the Lalonde, Surimau and Colonie Targets are all polymetallic mineralized occurrences which, along with various gold showings, comprise the areas of potential of this NSR free property.

In addition to the Surimeau District battery metals property Renforth wholly owns the Parbec Gold deposit, a surface gold deposit contiguous to the Canadian Malartic Mine property in Malartic, Quebec. In 2020/21 Renforth completed 15,569m of drilling which successfully twinned certain historic holes, filled in gaps in the resource model with newly discovered gold mineralization and extended mineralization deeper. Based upon the success of this significant drill program the Company considers the spring 2020 MRE, with a resource estimate of 104,000 indicated ounces of gold at a grade of 1.78 g/t Au and 177,000 inferred ounces of gold at a grade of 1.78 g/t Au to be out of date. With the new data gained Renforth will undertake to complete the first ever structural study of the mineralization at Parbec, as well as additional total metallic assay work in order to better contextualize the nugget effect on the gold mineralization.

 

Renforth also holds the Malartic West property, the site of a copper/silver discovery, and Nixon-Bartleman, west of Timmins Ontario, with gold present on surface over a strike length of ~500m.

 

No securities regulatory authority has approved or disapproved of the contents of this news release.

 

Forward Looking Statements

 

This news release contains forward-looking statements and information under applicable securities laws.  All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as ‘may’, ‘will’, ‘plan’, ‘expect’, ‘believe’, ‘anticipate’, ‘estimate’, ‘intend’ and similar words referring to future events and results. Such statements and information are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary approvals, licenses and permits and the availability of financing, as described in more detail in the Company’s securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Forward-looking information speaks only as of the date on which it is provided and the Company assumes no obligation to revise or update these forward-looking statements except as required by applicable law.

 

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Eloro Intersects 100 Ag eq/t (including 38.71 g Ag/t, 0.88%Zn and 0.51%Pb) over 188.5 m in the Santa Barbara Breccia Pipe at Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to provide an update on its Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. To date, the Company has completed 34,409 metres (m) in 64 drill holes including three (3) in progress to test major target areas at Iska Iska. This press release reports drilling results from one (1) additional hole which tested the Santa Barbara Breccia Pipe (“SBBP”) (Hole DHK-23) and two holes (DCN-05 and DCS-03) which tested the Central Breccia Pipe target (“CBP”). To date, every drill hole that has been assayed has returned multiple reportable mineralized intercepts. Currently three drill rigs are in operation at Iska Iska. Two surface drill rigs are continuing to drill at SBBP to outline an initial National Instrument 43-101 (“NI-43-101”) compliant resource. A third drill, an underground rig, situated in the west end of the Santa Barbara Adit, is testing the eastern part of SBBP and its mineralized envelope. Figure 1 is a geological plan map showing locations of drill holes and an updated geological interpretation. Table 1 provides significant drilling results with definitions of chemical symbols and Table 2 lists holes completed with assays pending, as well as holes in progress in the three major target areas. Highlights are as follows:

Highlights:

Santa Barbara Breccia Pipe

  • 100g Ag eq/t (including 38.71 g Ag/t, 0.88%Zn and 0.51%Pb) over 188.5 m from 58.67m to 247.13m in hole DHK-23, drilled from the west end of the Huayra Kasa underground workings at -70 degrees due west. This intersection includes a higher-grade portion of 154 g Ag eq/t (including 75.51 g Ag/t, 0.96% Zn, 0.65% Pb and 0.16%Cu) over 65.8m

Central Breccia Pipe

  • Hole DCS-03 drilled southwest at -60 degrees from the south radial platform of the CBP intersected twelve (12) separate zones of quartz-tourmaline veins in granodioritic intrusive breccia with best results of 224.92 g Ag eq/t (including 25.36 g Ag/t, 0.12 g Au/t and 0.55% Sn) over 7.42m and 113.67 g Ag eq/t (including 17.85 g Ag/t, 0.085 g Au/t, 0.21% Cu and 0.18% Sn) over 12.03m
  • Hole DCN-05 drilled due east at -60 degrees from the north radial platform of the CBP intersected ten (10) separate zones of quartz-tourmaline veins in granodioritic intrusive breccia with a best result of 104.72 g Ag eq/t (including 74.41 g Ag/t and 0.22% Cu) over 4.59m

Mr. Tom Larsen, CEO of Eloro, commented: “We are now starting to see a reduction in the backlog of assay samples with two laboratories operating at near capacity. These latest drill results, especially from DHK-23, are again demonstrating the accumulating amount of potential commercial bulk tonnage material, especially within the Santa Barbara complex, a subset of the overall Iska Iska volcanic edifice.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “Mineral resource definition drilling is continuing in the Santa Barbara Target area, which is 1,400m along strike, 500m wide and extends to a depth of 600m. This target is open along strike to the northwest and southeast. Data from the downhole Induced Polarization survey is being processed and the resulting 3D inversion models should aid in refining our geological model, especially determining the likely geometry of the higher-grade zones that typically have greater sulphide content.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro`s Bolivian subsidiary, Minera Tupiza S.R.L. (“Minera Tupiza”), said: “As we move to the northwest in the SBBP, silver and gold values are increasing suggesting that there is a zonation at Iska Iska, from a more tin-rich polymetallic mineralization in the southeastern part of the SBBP to more of a silver-rich polymetallic mineralization in the northwestern part. In addition, significant enriched tin-silver mineralization occurs in the northern part of the CBP.”

Table 1: Significant Diamond Drilling Results, Iska Iska, as at November 2, 2021:
https://www.globenewswire.com/NewsRoom/AttachmentNg/4f8beb2c-64d6-4e65-a54a-2c660a17b9ae

Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites. It is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling. Percentage metal contents are shown for each element.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows:

ElementPrice (per
kg)
Ratio to
Ag
Ag$875.001.00000
Sn$28.000.03200
Zn$2.800.00320
Pb$2.100.00240
Au$57,40065.6000
Cu$8.800.01006
Bi$12.760.01458
In$305.000.34857
Cd$5.500.00629

In calculating the intersections reported in this press release a sample cutoff of 30 g Ag eq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section unless more dilution is justified geologically.

The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Preliminary metallurgical tests are in progress to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.

Table 2: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from press release of November 2, 2021.

Hole No.TypeCollar
Easting
Collar
Northing
ElevAzimuthAngleHole Length
m
Surface Drilling Northwest Extension Santa Barbara
DSB-12S205072.77656867.54165.0225-40806.2
DSB-13S205072.77656867.54165.0225-60696.5
DSB-14S205283.07656587.24175.0225-65968.5
DSB-15S204973.17657053.84165.0225-40731.2
DSB-16S204973.17657053.84165.0225-65862.0
DSB-17S7656765.4205131.34173.0225-40841.0
DSB-18S7656676.3205207.14175.0225-40890.4
Subtotal5,795.8
DSB-19S7656676.3205207.14175.0225-65In progress
DSB-20S7656765.4205131.34173.0225-65In progress
Underground Drilling Santa Barbara Adit
DSBU-1UG205285.27656074.84165.090-10260.5
DSBU-2UG205285.27656074.84165.0270-20563.6
DSBU-3UG205285.27656074.84165.0270-20443.5
Subtotal1,267.6
DSBU-4UG205285.27656074.84165.0180-20In progress
Central Breccia Pipe – Surface Radial Drill Program – North Setup
DCN-06S204902.07655860.04420.0180-80626.4
DCN-07S204902.07655860.04420.0270-60680.4
Subtotal1,306.8
Central Breccia Pipe – Surface Radial Drill Program – South Setup
DCS-04S204852.17655612.34429.7180-60644.4
Subtotal644.4
Porco Central – Surface Radial Drill Program
DPC-01S205457.27655110.94175.0270-60767.5
DPC-02S205457.27655110.94175.0225-60908.2
DPC-03S205457.27655110.94175.0135-60524.5
DPC-04S205457.27655110.94175.00-60371.4
DPC-05S205457.27655110.94175.090-60407.5
DPC-06S205457.27655110.94175.0243-60716.4
Subtotal3,695.5
TOTAL12,710.1

S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees
Total drilling completed since the start of the program on September 13, 2020, is 34,409m in 64 holes including 3 holes in progress (20 underground holes and 44 surface holes).

Figure 1: Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and in progress. Drill holes for which assays are reported in this release are highlighted:
https://www.globenewswire.com/NewsRoom/AttachmentNg/cce5620d-1deb-4db4-8f54-903bee989c21

Qualified Person

Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza, and a Qualified Person in the context of NI 43-101, has reviewed and approved the technical content of this news release. Dr. Bill Pearson, P.Geo., Executive Vice President Exploration Eloro, and who has more than 45 years of worldwide mining exploration experience including extensive work in South America, manages the overall technical program working closely with Dr. Arce. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited are regularly consulted on technical aspects of the project.

Drill samples are prepared in ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia with pulps sent to the main ALS Global laboratory in Lima for analysis. As announced in the February 26, 2021 press release, Eloro has changed the assay protocol to utilize X-ray fluorescence (XRF) to more accurately analyze higher tin. Tin in the CBP is suspected to occur as cassiterite which is insoluble in acid digestion, and therefore not suited for wet chemical techniques. In addition, other assay protocols have been changed to provide for a more accurate measurement of the wide-ranging suite of polymetallic metals at Iska Iska. Eloro employs an industry standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.

Recently, AHK Laboratories, who manage a global network of laboratories have setup operations in Bolivia with the establishment of a preparation laboratory in Oruro. AHK has a strong base of accredited laboratories in South America including Peru, Chile, Brazil and Argentina. Eloro has contracted AHK to provide additional analytical services in order to help reduce the sample backlog. A series of check samples are currently being analyzed by AHK as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols. The used of both accredited laboratories is reducing the backlog of samples to be analysed and improving turnaround.

About Iska Iska

Iska Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly-controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6km by 1.8km in dimension with a vertical extent of at least 1km. Mineralization age is similar to Cerro Rico de Potosí and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi located in the same geological trend.

Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on September 13, 2020. On November 18, 2020 Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On November 24, 2020, Eloro announced the discovery of the SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.

Since the discovery hole on the SBBP, Eloro has released a number of significant drill results on this target, including:

  • 122.66 grams g Ag eq/t (35.05 g Ag/t, 0.72% Zn, 0.61% Pb, 0.11% Sn and 0.06 g Au/t) over 123.61m including 205.74 g Ag eq/t (92.30 g Ag/t, 0.57% Zn, 0.85% Pb, 0.18% Sn and 0.07 g Au/t) over 32.32m (DSB-07),
  • 105.41 g Ag eq/t (8.55 g Ag/t, 1.01% Zn, 0.48% Pb, 0.06% Sn and 0.38 g Au/t) over 173.58m including 199.77 g Ag eq/t (21.90 g Ag/t, 1.18% Zn, 0.93% Pb 0.12% Sn and 0.94 g Au/t) over 39.08m (DSB-07)
  • 69.89 g Ag eq/t over 252.89m from 355.12 to 608.02m including several higher-grade sections of 196.60 g Ag eq/t including 131.13 g Ag/t over 14.52m, 134.62 g Ag eq/t including 93.25 g Ag/t over 21.08m and 145.35 g Ag eq/t including 2.38% Zn over 10.11m (DSB-08).
  • 114.96 Ag eq/t including 0.325% Sn over 56.2m including a higher-grade section of 187.98 g Ag eq/t including 0.535% Sn over 28.86m; 80.71 g Ag eq/t including 0.213% Sn over 74.39m and 118.69 g Ag eq/t over 10.77m (DSB-10).
  • 129.65 g Ag eq/t (18.38 g Ag/t, 2.14% Zn, 0.67%Pb, and 0.047% Sn) over 300.75m from 65.14m to 365.91m, including higher grade intervals of 215.54 g Ag eq/t over 72.76m, 163.35 g Ag eq/t over 31.83m and 224.48 g Ag eq/t over 19.39m. 82% of this 446.5m long hole contained reportable intervals (DHK-18).
  • 234.19 g Ag eq/t (70.58 g Ag/t, 2.31% Zn, 2.74% Pb and 0.042% Sn) over 53.2m including a higher-grade portion of 931.73 g Ag eq/t (367.29 g Ag/t, 5.64% Zn, 13.67% Pb and 0.10% Sn) over 9.26m (DHK-20).
  • 108.24 g Ag eq/t (3.14g Ag/t, 0.24 g Au/t, 2.03% Zn and 0.58% Pb) over 48.2m including a higher-grade interval grading 180.76 g Ag eq/t (4.46 g Ag/t, 0.35 g Au/t, 3.57% Zn and 1.05% Pb) over 15.02m (DHK-19). 160.22 g Ag eq/t (36.53 g Ag/t, 1.63% Zn, 1.20% Pb and 0.10% Sn) over 194.14m (DHK-21) including higher grade portions of:
    • 250.50 g Ag eq/t (51.31 g Ag/t, 3.35% Zn, 1.78% Pb and 0.10% Sn) over 18.24m.
    • 257.40 g Ag eq/t (75.83 g Ag/t, 2.29% Zn, 2.40% Pb and 0.12% Sn) over 16.33m.
    • 350.91 g Ag eq/t (112.57 g Ag/t, 1.41% Zn, 3.08% Pb and 0.33% Sn) over 30.06m.
    • 64% of this 512.9m long hole contains reportable intersections
  • 94.68 g Ag eq/t (3.87 g Ag/t, 0.067 g Au/t, 1.63% Zn, 0.43% Pb and 0.05% Sn) over 169.93m including a higher-grade zone that graded 158.64 g Ag eq/t (9.35g Ag/t, 0.016 g Au/t, 3.43% Zn, 0.71% Pb and 0.03%Sn) over 29.84m (DHK-22).

On May 4, 2021, Eloro released results from the first drill hole on the CBP. Hole DCN-01 intersected multiple mineralized intercepts including 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m and containing 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m.

Hole DCN-04 drilled at -80 degrees to the north from the northern radial platform of the CBP, intersected seventeen (17) mineralized intersections, principally Sn-Ag-bearing, over its 851.4m length. Best results include: 71.54 g Ag eq/t (32.58 g Ag/t and 0.10% Sn) over 97.10m from 134.40 to 231.5m; 101.52 g Ag eq/t (28.74 g Ag/t and 0.19% Sn) over 62.01m; 70.42 g Ag eq/t (28.74 g Ag/t and 0.16% Sn) over 22.59m; and 236.96 g Ag eq/t (92.21 g Ag/t and 0.25% Sn) over 17.45m. Hole DCS-02 was drilled southeast at -60 degrees from the south radial platform of the CBP. This hole, which was drilled to 800.5m, intersected nine (9) reportable Ag-Zn-Pb-Sn mineralized intervals. Best results include 79.53 g Ag eq/t (including 0.21% Sn) over 19.42m, 101.01 g Ag eq/t (32.76 g Ag/t, 0.76% Zn, 0.75% Pb) over 10.47 and 130.95g Ag eq/t (34.14 g Ag/t, 0.10 g Au/t, 1.35% Zn and 0.56 % Pb over 7.40m.

A detailed ground magnetic survey of the Iska Iska property, reported on June 6, 2021, confirmed the extent of the Iska Iska Caldera as determined from geological mapping and satellite interpretation, including Aster data. The SBBP and CBP, both of which have been confirmed by drill-testing, are marked by prominent low anomalies reflecting strong alteration. The magnetic data suggests that the Central and Porco Breccia Pipes likely merge at depth. In addition, there is a prominent area of low intensity magnetics northwest of the SBBP which was reported on in this press release.

Geological mapping and satellite interpretation identified a third major breccia pipe target, Porco (South), that is approximately 600m in diameter (South) located southeast of the CBP in the southern part of the Iska Iska caldera complex. The Porco (South) Breccia Pipe target has a similar magnetic signature to the Santa Barbara and Central Breccia Pipes, further confirming the likelihood of it being a major breccia pipe. Six (6) drill holes have been completed on Porco; assay results are pending. Previous channel sampling in the Porco adit located adjacent the target area 200m to the southeast returned 50m grading 519.35 g Ag eq/t including 236.13 g Ag/t, 1.89 g Au/t, 0.87% Cu, 0.22% Bi and >0.05% Sn over an average sample width of 2.49m.

Currently three diamond drill rigs are active at Iska Iska, two surface rigs and one underground drill. Planned drilling for 2021 is 51,000m with the aim of outlining an initial inferred NI 43-101 compliant mineral resource by Q1 2022. The target zone at the SBBP and the surrounding mineralized envelope is 1400m along strike, 500m wide and extends to a depth of 600m. This zone is open along strike to the northwest and southeast. A downhole induced polarization/resistivity (IP/Res) survey is in progress to further define drill targets and aid resource definition drilling. Preliminary metallurgical tests are also in progress. An updated NI 43-101 Technical Report is being prepared by independent consultant Micon International Ltd.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Table 1Figure 1
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Grid Announces Appointment of New CFO

Grid Metals Corp. (the “Company“) (TSXV:GRDM)(OTCQB:MSMGF) is pleased to announced that Douglas Harris has joined Grid as Chief Financial Officer replacing Rodger Roden who is stepping down to concentrate on other endeavours after over 10 years as Grid CFO.

Douglas Harris is a Chartered Accountant and a Chartered Business Valuator with over 20 years of experience in the financial services sector, including accounting, corporate finance, private equity and mergers and acquisitions, participating in over $2 billion of transactions. Mr. Harris holds an MBA (Accg) from the Rotman School of Management at the University of Toronto and a BSc. from the University of Guelph. In addition to his serving as Chief Financial Officer of Grid Metals, Mr. Harris also serves as the Chief Financial Officer of several public and private companies operating in the technology and natural resources sectors.

Company President and CEO Robin Dunbar commented. ” We are pleased to have Doug join our team at an exciting time for the Company. All of us at Grid would like to acknowledge Rodger for the highly professional approach to his responsibilities and excellent work he did for Grid over the past ten years. We all certainly wish Rodger the best in his future endeavours and are pleased that he will remain as a consultant to the Company on part time basis.

The Board of Directors has approved the issuance of 250,000 incentive options exercisable at $0.12 subject to a vesting schedule to Mr Harris and 50,000 DSUs to the independent directors of the Company.

About Grid Metals Corp.

Grid Metals Corp. is an exploration and development Company with projects focused on N-Cu-PGM and lithium in Manitoba and Ontario.

To find out more about Grid Metals Corp., please visit www.gridmetalscorp.com.

On Behalf of the Board of Grid Metals Corp.
Robin Dunbar – President, CEO & Director Telephone: 416-955-4773 Email: rd@gridmetalscorp.com
David Black – Investor Relations Email: info@gridmetalscorp.com

We seek safe harbour.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, “forward-looking statements”). Such forward-looking statements may include the Company’s plans for its properties, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward- looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company’s Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

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