Brown’s prospect contains visible gold along two main mineralized trends
TORONTO, Oct. 26, 2021 (GLOBE NEWSWIRE) —(“Mandalay” or the “Company”) ( , OTCQB: MNDJF) is pleased to provide an update on the deep drilling campaign completed at the Brown’s Prospect at its Costerfield Operation (Victoria, Australia).
- 17-hole diamond drill program confirms the presence of a promising gold system at the Brown’s Prospect, 2 km east of the current mining operation at Youle.
- Drilling has identified two main mineralized trends exhibiting high-grade gold intercepts, including:
- 19.5 g/t gold over a true width of 1.01 m in BWN009, including;
- 38.4 g/t gold over a true width of 0.51 m and;
- 19.9 g/t gold over a true width of 1.70 m in BWN023, including;
- 158.4 g/t gold over a true width of 0.09 m and;
- 110.8 g/t gold over a true width of 0.16 m
- 19.5 g/t gold over a true width of 1.01 m in BWN009, including;
Note: Further intercept details can be found in Table 1 in the Appendix to this document.
Dominic Duffy, President and CEO of Mandalay, commented: “We are pleased to report encouraging results from our ongoing drill testing campaign at the Brown’s Prospect situated 2 km to the east of the Shepherd discovery and Youle mine. The most recent results confirm significant gold grades within fault hosted breccias along two mineralized trends, building on previous high-grade results seen and reported in 2020.”
Mr. Duffy continued, “Mineralization across the two trends has been tracked over a 200 m strike and 300 m vertical extent. The Felix trend is associated with the historic shallow Felix Brown mine and associated alluvial workings that played an important role in gold production during the 1890’s. However, the newly discovered Western Trend is not associated to the old workings and was unknown to previous explorers; it is therefore still open up dip to surface.”
Mr. Duffy concluded, “A strong increase in data resolution through this prospect has allowed us to improve our understanding of the structural complexity associated with the mineralized trends. We observe that the structural controls on the Brown’s mineral system could be likened to those that allowed the formation of the nearby million ounces Bendigo and Castlemaine gold deposits. This inference, along with the knowledge that the geological setting of the Central Costerfield line sits below the recent drilling success, provides further confidence that there is a more extensive, high-grade mineralization at depth.”
A video has been prepared by Mr. Chris Davis, Vice President of Operational Geology and Exploration, to further explain the information in this release. The video can be found on Mandalay’s website or by clicking here.”
Drilling Results and Interpretation
Early success was achieved on the initial five-hole drill testing program at Brown’s with BWN001 intercepting 14.5 g/t gold over true width of 1.27 m underneath the historic (approx. 1883-1894) Felix Brown Mine and paving the way for a more detailed testing campaign. Since the release of the initial two holes (June 22, 2020), a further 20 holes have been drilled to identify the nature and extent of gold mineralization at Brown’s Prospect (Figure 1). To date, this drilling has identified multiple high-grade intercepts in a sequence of tightly folded sandstone-dominated turbidites crosscut by three main “panel boundary” thrust faults. Gold mineralization is concentrated in the middle thrust panel within narrow, brecciated and sheared fault zones along two main mineralized trends (Figure 2).
Figure 1: Surface map of the Brown’s prospect, showing collar locations and drillhole traces. Coordinates are in GDA95 Zone 55:
The Felix Trend is a moderately west dipping trend parallel to the axial plane of the main Brown’s anticline, expressing at surface with the historically mined Felix Lode. Mineralized structures associated with this trend are typically steeply dipping quartz-stibnite bearing fault hosted breccias, with associated stockwork veining and wide pyrite halos. These structures have developed preferentially in hinge zones of the main Brown’s anticline, parallel to the axial planar cleavage. Visible gold is present in several intercepts along this trend. Mineralization along the Felix Trend has been identified over a vertical extent of 200 m and a strike extent of ~100 m; however, gold anomalism along this trend has been observed down to the Swallowtail Fault at a depth of approximately 300 m. An increase in gold grade observed between 1000 RL and 1100 RL may be caused by the interaction of the fault-hosted breccias with syn-to-post mineralization, northeast dipping faults. The anticipated potential for upgrade in this zone was demonstrated with an intercept of the highest grade yet seen at Brown’s, comprising an interval with two steep east dipping gold bearing breccias and quartz-stibnite veining grading at 19.9 g/t gold with trace amounts of antimony over a true thickness of 1.70 m in BWN023 (Figures 3 and 4).
Figure 2: Brown’s Prospect cross section along 6200N (mine grid) showing main structures, mineralised trends and intercepts between 6300N and 6100N:
Figure 3: Drill core photos of BWN023 high-grade gold intercepts and gold grades for each sample:
Figure 4: Microphotographs of gold grains in the high-grade gold bearing quartz breccia grading at 110.7 g/t gold (0.16 m true width) in BWN023 at 223.77 m depth:
The Western Trend is a broadly subvertical corridor containing several high-grade intercepts that occur in structures that have developed across a secondary antiformal structure on the western limb of the Brown’s anticline. Like the Felix Trend, intercepts are characterized by quartz-stibnite fault-hosted breccias and veins with large pyrite alteration halos and in some cases visible gold. While mineralization along this trend has been identified over a vertical extent of approximately 100 m, the strike extent remains open and poorly constrained at this date. The Western Trend contains high-grade gold intercepts comparable to the Felix Trend, including a quartz-stibnite breccia with intense pyrite alteration grading 19.5 g/t gold and 2.4% antimony over a true thickness of 1.01 m in BWN009 (Figure 5).
Figure 5: Drill core photos of BWN009 high-grade gold intercept and gold grades for each sample:
Panel Boundary Faults
The panel boundary faults that control the mineralized structures at Brown’s Prospect are interpreted to predate mineralization and accommodate movement caused by shortening of the turbidite sequence. Minor fault reactivation during and after mineralization has been observed along these structures and drilling has identified areas of gold anomalism along them. The highest grade to date on a panel boundary fault was observed on the Metalmark Fault in BWN008 up-dip of the western trend, culminating in an intercept of 9.1 g/t gold over a 0.63 m true width. Mineralization has also been observed in the panel bounding Swallowtail Fault, the highest grade seen being 1.3 g/t gold over a true width of 0.67 m in BWN004. Excitingly, visible gold was also observed in the Swallowtail Fault in BWN002, confirming that the panel thrust faults bounding the mineralized middle thrust panel represent important pathways for the mineralized fluids. The Luna Fault, the deeper of the three panel boundary faults, exhibits intense sericitic alteration characteristic of a distal discharge of gold bearing hydrothermal fluids vectoring towards a gold rich fluid source at depth.
The Brown’s Prospect drilling program has demonstrated the presence of a promising mineral system extending at depth at the Brown’s prospect. Increasing levels of fold shortening compared to the central (Costerfield) line of lode has resulted in the formation of a strong fluid trapping environment and consequently, the distribution of the fault-hosted mineralized breccias is strongly controlled by fold geometry and bedding. Current interpretation suggests that this structural architecture may share similarities with the Bendigo and Castlemaine goldfields, which are found in a similar structural environment and exhibit similar controls on mineralization. Extension of the mineralized trends to the south, beyond the currently tested zone is expected based on the continuation of the north-south trending Brown’s anticline, as well as the presence of historically worked gold reef systems along-strike at the Robinson Prospect (press released June 22, 2020). A soil sampling and geochemistry program is currently underway to cover the entire eastern corridor and identify extension of the mineralised system to the south. In addition, surface drilling along the eastern corridor will continue in 2022, targeting depth and strike extensions, including the Robinson prospect.
Encouragingly, mineralized breccias in the middle thrust panel at the Brown’s Prospect may only represent the most surficial expression of a much more extensive mineral system at depth; district-scale structural and litho-stratigraphic modelling suggests that the geological and structural setting of the central corridor may be present at about 600 m depth under the tightly folded sequence of the Wapentake Formation turbidites. The depth continuation of the Brown’s mineral system may therefore be hosted in the same favourable lithostratigraphic environment that hosts classic Costerfield-style mineralization like that of the Youle and Cuffley deposits. Gold anomalism in two subvertical quartz breccias under the Luna fault intercepted in BWN010 provides additional evidence that such a domain may exist beneath the Brown’s prospect.
Figure 6: Conceptual cross section across Costerfield and Brown’s looking north:
Drilling and Assaying
All diamond drill core was logged and sampled by Costerfield geologists. All samples were sent to On Site Laboratory Services (OSLS) in Bendigo, Victoria, Australia, for sample preparation and analysis by fire assay for gold, and Atomic Absorption Spectroscopy (AAS) for antimony. Samples featuring coarse grained visible gold were assayed using a variant of fire assay known as screen fire assay. This method is routinely used to mitigate potential problems associated with heterogeneity in the distribution of coarse gold within drill samples. The procedure collects all coarse heterogenous coarse gold by screening at 75µm after crushing and pulverisation, and subsequently fire assays the resultant mass to extinction. A mass weighted average of gold grade of the sample is subsequently calculated from the +75µm and -75µm fractions of the sample. Site geological and metallurgical personnel have implemented a QA/QC procedure that includes systematic submission of standard reference materials and blanks within batches of drill and face samples submitted for assay. Costerfield specific reference materials produced from Costerfield ore have been prepared and certified by Geostats Pty Ltd., a specialist laboratory quality control consultancy. See Technical Report entitled “Costerfield Operation, Victoria, Australia NI 43-101 Report” dated March 30, 2020, available on SEDAR (www.sedar.com) for a complete description of drilling, sampling, and assaying procedures.
Chris Davis, Vice President of Operational Geology and Exploration at Mandalay Resources, is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (MAusIMM CP(Geo)), and a Qualified Person as defined by NI 43-101. He has reviewed and approved the technical and scientific information provided in this release.
For Further Information
President and Chief Executive Officer
Manager, Analytics and Investor Relations
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and Sweden, and care and maintenance and development projects in Chile. The Company is focused on growing production at its gold and antimony operation in Australia, and gold production from its operation in Sweden to continue being a significant cash flow generating company.
This news release contains “forward-looking statements” within the meaning of applicable securities laws, including statements regarding the exploration and development potential of the Brown’s Prospect (Costerfield). Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 31, 2021, a copy of which is available under Mandalay’s profile at www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. 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, readers should not place undue reliance on forward-looking statements.
Table 1. Significant intercepts of the Brown’s Testing Drilling Program
|DRILL HOLE ID||FROM
1. The AuEq (gold equivalent) grade is calculated using the following formula:
|AuEq g per t = Au g per t + Sb% x||Sb price per 10kg x Sb processing recovery|
|Au price per g x Au processing recovery|
Prices and recoveries used: Au $/oz = 1,760; Sb $/t = 12,800; Au Recovery = 93% and; Sb Recovery = 95%
2. LLD signifies an undetectable amount of antimony. Detection limit for the analysis used is 0.01%
3. Composites that are not interpreted to be connected to a named vein or trend and are below 1 g/t Au are not considered significant and are not recorded here.
Sabina Gold & Silver Honoured to Receive 2022 PDAC Sustainability Award
VANCOUVER, British Columbia, Dec. 09, 2021 (GLOBE NEWSWIRE) — Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF…
VANCOUVER, British Columbia, Dec. 09, 2021 (GLOBE NEWSWIRE) —(“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF – OTCQX) is pleased to report that it is the recipient of the Prospectors & Developers Association of Canada’s (“PDAC”) Sustainability Award for 2022 in relation to its 100% owned Goose Project (the “Project”) on the Back River Gold District in Nunavut, Canada. The award will be presented during the PDAC Convention held March 7-10, 2022 in Toronto, Canada.
The PDAC Sustainability Award recognizes outstanding initiative and accomplishment in protecting and preserving the natural environment, or establishing good community relations during an exploration program, development or operation of a mine.
Sabina is being recognized for its efforts related to environmental responsibility and Indigenous engagement in Canada’s north. Sabina is committed to developing a world class gold mine at the Project which benefits Nunavut and contributes to the sustainable development of its communities.
Sabina’s Vice President of Environment & Sustainability, Matthew Pickard, said, “after ten years of consultation with Nunavummiut of the Kitikmeot Region we have been able to advance a Project that enjoys widespread community support and will result in meaningful contributions to northerners. I am proud of the work we have been able to accomplish with our community partners and look forward to developing a successful mine together.”
“We are extremely pleased to receive this prestigious international award recognizing our accomplishments in sustainability,” said Bruce McLeod, President & CEO. “Considerable stakeholder engagement and consultation has resulted in the creation of what we believe are new standards for environmental protection in the North. We couldn’t have achieved this recognition without the hard work and contributions of the Kitikmeot Inuit Association and all the communities of the Kitikmeot Region.”
SABINA GOLD & SILVER CORP
is an emerging gold mining that 100% owns the district scale, advanced, high grade Back River Gold District in Nunavut, Canada.
Sabina recently filed an Updated Feasibility Study (the “UFS”) on its first mine in the district, the Goose Mine, which presents a project that will produce ~223,000 ounces of gold a year (first five years average of 287,000 ounces a year with peak production of 312,000 ounces in year three) for ~15 years with a rapid payback of 2.3 years, and a post-tax IRR of ~28% and NPV5% of C$1.1B. See “National Instrument (NI) 43-101 Technical Report – 2021 Updated Feasibility Study for the Goose Project at the Back River Gold District, Nunavut, Canada” dated March 3, 2021.
The Project received its final major authorization on June 25, 2020 and is now in receipt of all major permits and authorizations for construction and operations.
The Company is also very committed to its Inuit stakeholders, with Inuit employment and opportunities a focus. The Company has signed a 20-year renewable land use agreement with the Kitikmeot Inuit Association and has committed to various sustainability initiatives under the agreement.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
The Company recently announced that it has received indicative terms sheet for project debt and a streaming agreement and is currently advancing definitive documentation in connection with both the project finance facility and the streaming transaction. Final definitive documentation is expected to be concluded in January 2022, which would enable construction to commence in the new year.
For further information please contact:
Nicole Hoeller, Vice-President, Communications: 1 888 648-4218
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws (the “forward-looking statements”), including, but not limited to, statements related to the expected execution of definitive documents, the date for commencement of construction and the projections and assumptions of the results of the UFS. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the uncertainty of production, development plans and costs estimates for the Back River Gold Project; discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs; the interpretation of drill, metallurgical testing and other exploration results; the ability of the Company to retain its key management employees and skilled and experienced personnel; exploration, development and mining risks and the inherently dangerous nature of the mining industry, and the risk of inadequate insurance or inability to obtain insurance to cover these risks and other risks and uncertainties; property and mineral title risks including defective title to mineral claims or property; the effects of general economic conditions, commodity prices, changing foreign exchange rates and actions by government and regulatory authorities; and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with exploration and project development; the need for additional financing; the calculation of mineral resources and reserves; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; government regulation; obtaining and renewing necessary licenses and permits; environmental liability and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers or directors; the absence of dividends; currency fluctuations; labour disputes; competition; dilution; the volatility of the our common share price and volume; future sales of shares by existing shareholders; and other risks and uncertainties, including those relating to the Back River Project and general risks associated with the mineral exploration and development industry described in our Annual Information Form, financial statements and MD&A for the fiscal period ended December 31, 2020 filed with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. 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, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
Bruce McLeod, President & CEO
1800-555 Burrard Street, Two Bentall Centre
Vancouver, BC V7X 1M9
Tel 604 998-4175 Fax 604 998-1051
INITIAL DRILLING AT SANTO TOMAS CONFIRMS GRADESHELL MODEL
Vancouver, Canada, Dec. 09, 2021 (GLOBE NEWSWIRE) — Oroco Resource Corp. (TSX-V: OCO, OTC: ORRCF) (“Oroco” or “the Company”) is pleased to announce…
Vancouver, Canada, Dec. 09, 2021 (GLOBE NEWSWIRE) —( , OTC: ORRCF) (“Oroco” or “the Company”) is pleased to announce the receipt of the assay results from its initial drilling campaign at its Santo Tomas property (the “Property”) in northwestern Mexico. Eight drill holes have been completed to date, all in the North Zone (see Figure 1, attached). An additional two drill holes in the North Zone are completed, pending surveying. A further two drill holes are in progress in the North Zone, and another in the Brasiles Zone. Assays reported herein are for the first three holes (N001 to N003) comprising 2,350m of HQ3 and NQ3 diameter diamond drilling which produced 1,492 assay samples.
The Company is very pleased that the initial drilling results confirms the following:
- Copper grades in holes N001 to N003 are comparable to the historical drilling reported on each of the cross-sections drilled to date.
- Drilling results in N001 to N003 conform closely to, and confirm the geological conclusions and the 2009 Gradeshell model of Cu > 0.3% (the “2009 Gradeshell Model”) contained in the current Technical Report (‘the “Technical Report”) (Bridge, 2019: See SEDAR, or the Company’s website www.orocoresourcecorp.com/projects/technical-reports/). (see Figures 2, 3 and 4, attached).
- Geological logging indicates copper is present as chalcopyrite and bornite dissemination and vein fillings. Pyrite is relatively sparse in the main drill intersections.
- Molybdenum, gold and silver are elevated across the width of the North Zone and provide about a 15 to 20% contribution to the copper equivalent grade, without factoring for metallurgical recoveries.
- Fracturing, Laramide intrusive dikes, mylonite zones, veining and sulphide mineralization are controlled by faulting co-eval with the formation of the North Zone deposit. The deposit is confirmed in drilling with a strike of N20°E and a dip of 50-55°W, as reported in the Technical Report.
- Sulphide mineralization in the main intersections on the North Zone are hosted in strongly potassic-altered volcanic and intrusive rocks with an overprint of phyllic alteration.
- The footwall of the North Zone is propylitic-altered andesite volcanic rock with disseminated and vein filling pyrite, explaining the extreme Chargeability High response in the 3D IP survey.
The Santo Tomas Cu-Mo-Au porphyry deposit is an example of the geologic style of Laramide-age porphyry copper deposits in the southwestern United States and northwestern Mexico. Historical Pre-Feasibility Studies, recent 3D modelling of historical drilling, and several new programs of geophysical surveying have defined drill targets, both for confirmation of historical mineral resource estimates and for exploration for additional resources.
The 2021 drill program commenced on the central North Zone mineral deposit to confirm historical drill results and the Company’s geological modelling, and has now spanned 500 m of strike length on the North Zone. Historical drilling spanning 1968 to 1994 was primarily vertical and unsuited to defining the full width and depth of the North Zone. The 2021 program is based on angled drill holes oriented perpendicular to the re-modelled strike and dip of the deposit and is the first program that features drill holes that pass from the hanging wall of the North Zone deposit into the footwall and which also features a full suite of assay information that includes copper, molybdenum, gold and silver.
Table 1 contains the most significant intervals in drill holes N001 to N003. Core intervals in this disclosure are within 10% of the estimated true thickness. The Copper Equivalent (%) grade is presented for geological comparisons only within this program and was calculated based on the three-year average of commodity prices with no factoring for metallurgical recoveries, which are not yet known. Silver is noted in Table 1 but not included in the copper equivalent grade calculation. The attached cross-sections depict all core intervals in N001 to N003 exceeding 10m core length of Cu > 0.10%.
Table 1: Significant Assay Intervals in the Santo Tomas 2021 Program, DDH N001 to N003.
|Drill Hole No.|| From
|Cu %||Mo %||Au g/t||Ag g/t||CuEq %|
Cu Equivalent (CuEq) % = Cu % + (Mo %*3.75) + (Au ppm*0.752) The commodity prices (3-year Average) used are in $US: Cu $3.20 /lb, Mo $12.00 /lb, and Au $1, 650.00 /troy oz. Ag was not used.
Initial drilling results confirm the 3D IP modelling of the deep penetrating Dias Geophysical Induced Polarization Survey completed in early 2021. A broad Chargeability High (> 15.8 mV/V) anomaly coincides with the North Zone mineral deposit and its flanks. Drilling of holes N001 to N003 confirms that the dip of the 2009 Gradeshell Model and the edge of the Chargeability High in the 3D IP are closely co-incident and reliable guides for the drilling program. The anomaly passes the 600m depth limit of the 3D IP survey, indicating a broad zone of drilling targets at depth below the limit of the Gradeshell Model.
Additionally, drilling confirms that the North Zone is comprised of intensely fractured, potassic- and phyllic-altered andesite volcanics and Laramide-age porphyritic intrusive dikes. Elevated Mo, Au and Ag accompany copper assays along the central axis of the North Zone. Pyrite is relatively low in the core of the North Zone, explaining the IP response that is in the mid-range of the Chargeability High responses on the Property. In contrast, drilling into the footwall of the North Zone in N001 to N003 consistently intersected propylitic-altered andesite. The footwall contains abundantly disseminated and vein pyrite, explaining the pronounced Chargeability High and a corresponding Resistivity Low in the 3D IP modelling.
Minor footwall copper intersections in historical and recent drill holes are documented. Diamond drill hole N003 intersected the best footwall grades to date and indicates that the footwall propylitic zone is prospective for widening the North Zone at depth and northward along strike towards the Brasiles Zone.
TECHNICAL INFORMATION AND QUALITY CONTROL & QUALITY ASSURANCE
The historical drilling data employed in this current exploration program was the subject of Data Verification procedures cited in the current Technical Report. Additional drill collar verifications were performed in the current program and collar locations fit closely to the 2021 survey control. Appropriate QA/QC protocols governed geological logging, core sampling, sample preparation, analyses, and security during the current program, including quality controls with duplicates, standards, and blanks. Samples were submitted to the Mexican division of ALS Limited in Hermosillo, Mexico, for sample preparation to pulps. Sample pulps are sent to ALS Canada Ltd. in Vancouver, Canada, for analysis. Total copper and molybdenum contents are determined by four-acid digestion with AAS finish. Gold was determined by fire assay of a 50-gram charge, or alternately, for a 30-gram charge (1 Assay ton).
Mr. Paul McGuigan, P. Geo., of Cambria Geosciences Inc., a “Qualified Person” (as defined in NI 43-101 -Standards for Disclosure for Mineral Projects) and a senior consulting geoscientist to the Company, has reviewed and approved the technical disclosures in this news release.
The Company holds a net 73.2% interest in the collective 1,172.9 ha Core Concessions of the Santo Tomas Project in NW Mexico. The Company also holds a 77.5% interest in 7,807.9 ha of mineral concessions surrounding and adjacent to the Core Concessions (for a total project area of 22,192 acres). The Project is situated within the Santo Tomas District, which extends from Santo Tomas up to the Jinchuan Group’s Bahuerachi project, approximately 14 km to the north-east. Santo Tomas hosts a significant copper porphyry deposit defined by prior exploration spanning the period from 1968 to 1994. During that time, the property was tested by over 100 diamond and reverse circulation drill holes, totaling approximately 30,000 meters. Based on data generated by these drill programs, a historical Prefeasibility Study was completed by Bateman Engineering Inc. in 1994.
The Santo Tomas Project is located within 160km of the Pacific deep-water port at Topolobampo and is serviced via highway and proximal rail (and parallel corridors of trunk grid power lines and natural gas) through the city of Los Mochis to the northern city of Choix. The property is reached by a 32 km access road originally built to service Goldcorp’s El Sauzal Mine in Chihuahua State.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Information
This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact included herein, including without limitation, statements relating to future events or achievements of the Company, are forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated or implied in such statements. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these matters. Oroco does not assume any obligation to update the forward-looking statements should they change, except as required by law.
CONTACT: Craig Dalziel [email protected](604) 688-6200
Star Royalties Highlights Increased Mineral Resources at Gold Mountain’s Elk Gold Mine
December 9, 2021 – TheNewswire – Toronto, ON – Star Royalties Ltd. (the “Company” or “Star Royalties”) (TSXV:STRR) (OTC:STRFF), is pleased to highlight…
December 9, 2021 – TheNewswire – Toronto, ON – (the “Company” or “Star Royalties”) () (OTC:STRFF), is pleased to highlight an announcement by (“Gold Mountain”) (TSX: GMTN, OTCQB: GMTNF, FRA: 5XFA), dated December 7, 2021, regarding updated mineral resources at its Elk Gold Mine (“Elk Gold”) in British Columbia, Canada.
Updated Mineral Resources Highlights
Measured and Indicated Resources at Elk Gold increased by 24% to 806,000 gold equivalent (AuEq”) ounces in 4,359,000 tonnes at 5.8 g/t AuEq, and Inferred Resources increased by 65% to 262,000 AuEq ounces in 1,497,000 tonnes at 5.4 g/t AuEq, for a total 32% increase in AuEq ounces across all mineral resource categories.
Vein models in the Siwash North Zone were incrementally expanded along strike and down dip by 37 new diamond drill holes. This drilling has connected the Siwash North Zone with the Gold Creek Zone which was historically viewed as a satellite deposit.
Elk Gold’s multiple zone potential was further demonstrated by 10 diamond drill holes into the Lake and South Zones, which led to a maiden Mineral Resource estimate in these satellite deposits.
Alex Pernin, Chief Executive Officer of Star Royalties, commented: “Only two months have passed since Star Royalties acquired a 2% net smelter return royalty on the Elk Gold Mine. Our expectation of continued and significant drilling success has been quickly realized. The updated mineral resource demonstrates the exceptional wealth creation potential of our business model. Indeed, this increase in resources grows Star Royalties’ attributable ounces in the Elk Gold Mine by 32% since our acquisition of the royalty. We look forward to the results of Gold Mountain’s Phase 3 drill program in 2022.”
Elk Gold: Updated Mineral Resource Estimate
Source: Gold Mountain disclosures.
CIM definitions were followed for classification of Mineral Resources.
Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
Results are presented in-situ and undiluted.
Mineral resources are reported at a cut-off grade of 0.3 g/t AuEq for pit-constrained resources and 3.0 g/t AuEq for underground resources.
The number of tonnes and metal ounces are rounded to the nearest thousand.
The Resource Estimate includes both gold and silver assays. The formula used to combine the metals is: AuEq = ((Au_Cap*53.20*0.96) + (Ag_Cap*0.67*0.86))/(53.20*0.96).
The Resource Estimate is effective as of October 21, 2021.
Retains Investor Relations Consultant
Star Royalties is also pleased to announce that it has retained Galt Advisory Services Inc. (“Galt Advisory”), an investor relations and strategy consultancy based in Toronto, Canada. Galt Advisory will provide investor relations services for the Company with the aim of increasing Star Royalties’ visibility in the investment community and will engage with analysts and investors and communicate key events to shareholders.
The fees incurred by the Company, in consideration for the services provided by Galt Advisory, consist of cash consideration of $8,333 per month, effective December 1, 2021, and each month thereafter during the six month contract period. The Company and Galt Advisory act at arm’s length, and Galt Advisory has no present direct interest in the Company or its securities. Certain employees of Galt Advisory, hold in aggregate, less than 0.05% interest in the Company or its securities. The fee paid by the Company to Galt Advisory are for services only. The engagement of Galt Advisory by Star Royalties is subject to approval of the TSX Venture Exchange.
For more information, please visit our website at starroyalties.com or contact:
Alex Pernin, P.Geo. Dmitry Kushnir, CFA
Chief Executive Officer and Director Head of Investor Relations
is a precious metals and green royalty and streaming investment company. The Company created the world’s first carbon negative gold royalty platform and offers investors gold exposure with an increasingly negative carbon footprint. The Company’s objective is to provide wealth creation through accretive transaction structuring and asset life extension with superior alignment to both counterparties and shareholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute “forward-looking statements”, including those regarding the strategies and business plans of the Company. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends” “should”, “could”, “may” and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Star Royalties to be materially different from future results, performances or achievements expressed or implied by such statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results, performances or achievements to differ materially from such forward-looking statements, including, without limitation, changes in business plans and strategies, market conditions, share price, best use of available cash, risks inherent to royalty and streaming companies, title and permitting matters, metal and mineral commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operation and development risks relating to the parties which produce the metals and minerals Star Royalties will purchase or from which it will receive royalty or streaming payments, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global social and economic climate, natural disasters and global pandemics, including COVID-19, dilution, and competition. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.
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