Press release from Marketwire
CFI Announces Second Set of Encouraging Assay Results for Its New Vein Discovery at Its Grebes Nest Property; Including a Vein Intersection With Assay Value of 89.58% CaF2 Over 6.95 Metres
Thursday, July 18, 2013
CFI Announces Second Set of Encouraging Assay Results for Its New Vein Discovery at Its Grebes Nest Property; Including a Vein Intersection With Assay Value of 89.58% CaF2 Over 6.95 Metres10:43 EDT Thursday, July 18, 2013
ST. JOHN'S, NEWFOUNDLAND--(Marketwired - July 18, 2013) - Canada Fluorspar Inc. (TSX VENTURE:CFI) ("CFI" or the "Company") is pleased to announce second set of assay results under the Company's Phase 3 diamond drilling program at its Grebes Nest property from two holes drilled. One of the drill holes, GS-13-09, is in the same plane as the previously reported drill hole GS-13-07 and the other, GS-13-11, is located 100 metres east along strike from previously reported drill holes in this area. This new mineralized structure is situated approximately 4 kilometers from the former Tarefare mine and less than 6 kilometers from the former Blue Beach North mine (see location map below). Both drill holes are located on the western part of the Grebes Nest grid area. Ground geophysical (magnetometer and EM) survey results indicate that the mineralized structure has potential to extend for more than 4,000 metres along strike. The drill holes completed are identified as GS-13-09 and GS-13-11, with one hole (GS-13-09) intersecting 89.58% CaF2 over 6.95 m.
Drill hole GS-13-09 was inclined at -59º and oriented at Azimuth 214º. Drill hole GS-13-11 was inclined at -59º and oriented at Azimuth 034º.
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Drill hole GS-13-09, drilled from north to south, tested the down-dip extension of the Grebes Nest Vein on the same plane as the previously reported (Press Release dated July 11, 2013) drill hole GS-13-07. Drill hole GS-13-09 intersected three vein structures: the first vein structure intersection had an average grade of 89.58% CaF2 over 6.78 m, the second vein structure intersection had an average grade of 45.83% CaF2 over 2.65 m, and the third vein structure intersection had an average grade of 47.03% CaF2 over 1.98 m.
Drill hole GS-13-011 intersected the Grebes Nest Vein structure with an average grade of 48.13% CaF2 over 2.33 m.
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"These latest drill results only increase my excitement about the potential of Grebes Nest and show grades as high as we have seen on our St. Lawrence site," stated Lindsay Gorrill, President & CEO of Canada Fluorspar Inc., "We have now received assays on 5 of the 21 drill holes results that continue to provide indication of a 1.5 kilometer strike on the portion of Grebes Nest vein we call West Grebes."
CFI has received assay results for samples collected from drill holes GS-13-09 and GS-13-11 located along the western part of the Grebes Nest target area. These holes are spaced approximately 100 metres apart and extends the previously reported strike length of 425 metres out to a strike length of approximately 525 metres of the total approximately 4,000-metre-long Grebes Nest structure. These holes intersected the Grebes Nest Vein at depths ranging from 110 metres to 115 metres vertically below the surface. In addition, recent surface trenching has revealed massive mineralized vein material in two trenches interpreted to be the surface exposure of the Grebes Nest Vein intersected in drill holes GS-13-09 and GS-13-11.
The two drill holes intersected what is interpreted to be the Grebes Nest main vein which trends northwest and is steeply dipping. Drill hole GS-13-09 intersected the Grebes Nest vein structure at approximately 110 metres vertically below the surface and tested the mineralization found in trenches excavated on surface. Drill hole GS-13-09 also tested to two separate vein structures located 165 m and 175 metres vertically below surface.
Drill hole GS-13-11, located approximately 100 metres east of drill hole GS-13-09 and 525 metres east of drill hole GS-13-08 (previously reported in a Press Release dated July 11, 2013) intersected the Grebes Nest Vein structure approximately 115 metres vertically below the surface.
Drill hole GS-13-10, located in the same plane as holes GS-13-07 and GS-13-09, intersected the Grebes Nest Vein approximately 50 metres below the surface and midway between surface and the drill hole GS-13-09 intersection. Assays for drill hole GS-13-10 are pending.
Preliminary interpretation of the drill results indicates that the western part of the target area of the mineralized Grebes Nest structure maintains a relatively uniform strike and width within a depth of 100 to 115 metres vertically below the surface. The drill intersections also indicate very competent core and good continuity of mineralized material at depth. CFI notes that most of the mineralized material is hosted by metasedimentary rocks (interbedded siltstones and shales, whereas most of the mineralized material at the major fluorspar veins in the general area - the historic Director, Tarefare, and Blue Beach North Mines - are hosted by the St. Lawrence Granite ("SLG"). The metasedimentary rocks in the St. Lawrence area are older than the SLG and early geological mapping indicates that the Grebes Nest area is underlain by interlayered pink rhyolite sills, similar in composition to the SLG, which intruded the metasedimentary rocks. The structure that has been identified by the drill program is a late phase event that cuts both the metasedimentary rocks and the sills. The parallel veins, such as the vein identified in drill holes GS-13-03 and GS-13-09 have been known to develop into significant mineable veins in other locations in the St Lawrence area. The significance of parallel veins remains to be evaluated.
The following table shows the detailed results of the second set of drill holes completed by CFI on the Grebes Nest Vein noted in Phase 3 of the Company's 2013 exploration diamond drill program.
|2013 Diamond-Drill Hole Assay Results|
|Canada Fluorspar Inc.|
|St. Lawrence Project, NL|
|Drill hole GS-13-09|
|Sample No.||From (m)||To (m)||Length (m)||% CaF 2|
|Drill hole GS-13-11|
|Sample No.||From (m)||To (m)||Length (m)||% CaF 2|
Assays on these drill holes were carried out at SGS Lakefield Laboratories ("SGS") of Lakefield, Ontario, using the Ion Selective Electrode method to determine the fluorite content in the low-grade samples and the Dual Calcium method for samples expected to contain high-grade values (i.e., those with significant visible fluorspar in the drill core).
Quality Assurance and Quality Control ("QA/QC")
Check assay work by CFI includes insertion of duplicate samples and blanks with regular batches of mineralized samples of drill core. QA/QC work is also done at SGS, and results are reviewed and verified by CFI personnel. An independent geological consultant (Qualified Person) has submitted additional samples collected from the drill core for analyses.
Phase 1 of the 2013 exploration program was designed to assess the northern extension of the Director Vein structure. The six drill holes with assay results to date have shown that the fluorspar mineralization at the Director Vein extends further along strike and at depth from the old Alcan workings.
Phase 2 of the 2013 exploration program was designed to evaluate the southern extension of the Director Vein. A trenching program and a geophysical survey conducted in the area during 2012 identified the structure over a strike length of 1,000 metres. The current drill program was planned to evaluate the mineral potential, at depth, of the southern extension of Director Structure and to test the north extension of the adjacent Hares Ears Vein to the west.
Phase 3 of the 2013 exploration program was designed to evaluate the Grebes Nest mineral property, namely the Grebes Nest vein which was identified in the 1940s, The vein was exposed on the east side of Little Lawn Harbour where the structure is approximately 1.0 metre wide and dips to the north at -70 degrees. Prospecting in the late 1940's traced the structure, through a series of trenches, to the southeast for a reported distance of 3.2 kilometers. In the late 1940's, a 20 metre deep exploration shaft was sunk on the vein about 500 metres east of the coast. A drift was driven along the vein for 60 metres and a number of short cross-cuts were developed. In 1949, five short drill holes were completed approximately one kilometer southeast of the shaft and to the south of the projected strike of the structure. These drill holes identified a number of narrow veins in the metasediments. Due to the remote location of the showing and the adequate reserves at the operating mines owned by the Aluminum Company of Canada ("Alcan") no additional work was undertaken.
Initial exploration information regarding the 2013 exploration program at Director Vein was included in the Company's press releases dated January 16, 2013 and March 12, 2013.
To date, six Phase 1 drill holes have been completed together with 26 additional drill holes in Phase 2 (19 holes in south extension Director Vein and 7 holes at Hares Ears Vein) and 21 drill holes in Phase 3 (Grebes Nest area) of the 2013 exploration program. Assay results for remaining completed drill holes in Phase 2 and Phase 3 are pending.
Historic exploration data indicates that there are more than forty mineralized veins within the CFI property. The three prominent vein structures, however, are the Director Vein, Blue Beach North Vein, and the Tarefare Vein. Probable Reserves of the Blue Beach North and Tarefare veins total approximately 5.4 million tonnes at an average grade of 39.8% CaF2. These Mineral Reserves have been outlined to a vertical depth of 300 metres below the surface, but fluorspar mineralization extends further at depth. The key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, as well as other relevant information, including data verification, with respect to the Blue Beach North and Tarefare veins can be found in a NI 43-101 Technical Report prepared by the Roscoe Postle Associates Inc. dated March 6, 2013, which has been filed by the Company on SEDAR (www.sedar.com).
About the Company
The Company is a specialty mineral resource company engaged in the development of fluorspar deposits located in St. Lawrence, Newfoundland, Canada, and is proposing, through Newspar, its 50/50 joint venture with Arkema, to reactivate the existing Blue Beach North and Tarefare underground fluorspar mines, by expanding the existing mill and constructing a new, environmentally-sound Tailings Management Facility.
Mr. James H. Reeves, Senior Geologist with CFI, who is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Properties, reviewed and approved the technical content of this news release. The information regarding historic production has not been verified by the Company and is provided for reference only.
Material results of the Company's 2012 and 2013 exploration program have been disclosed in the Company's press releases dated March 1, 13 and 30, 2012, April 16 and 24, 2012 and January 16, 2013, March 12, 2013, April 24, 2013, May 8, 2013, June 5, 2013, July 2, 2013 and July 11, 2013 including assay results from eighteen (18) previous drill holes under the Company's diamond drilling program which were disclosed in the Company's press releases dated March 12, 2013, April 24, 2013, May 8, 2013, June 5, 2013, July 2, 2013 and July 11, 2013.
For more information please see: www.canadafluorspar.com
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 and Forward-Looking Statements
This press release contains forward-looking statements which include, but are not limited to: resource estimates, proposed mining techniques required to construct and produce at expected levels, anticipated timing for completion of metallurgical testing, the commencement of the drilling program, current development and operating objectives and outlook, expectations, opinions, forecasts, projections, g uidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development including: loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities, the estimated timeline for the development of the project at St. Lawrence, the supply and demand for, and the level and volatility of the price of fluorspar, the assumptions on which resource estimates are based, the receipt of necessary permit, market competition, ongoing relations with employees and impacted communities, and general business and economic conditions. Should one or more of the risks or uncertainties involved in forward-looking statements materialize, or should the assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forward‐looking statements.
Forward-looking statements are qualified entirely by this cautionary statement and are given only as at the date of this press release. The Company disclaims any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canada Fluorspar Inc.
President and CEO