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Press release from Marketwire

CFI Announces Assay Results From Three Diamond Drill Holes, One Hole Extends AGS Vein to Over 1.4 km Along Strike With One Vein Intersection Having an Average Grade of 43.52% CaF2 Over 14.84 m

Monday, October 21, 2013

CFI Announces Assay Results From Three Diamond Drill Holes, One Hole Extends AGS Vein to Over 1.4 km Along Strike With One Vein Intersection Having an Average Grade of 43.52% CaF2 Over 14.84 m

08:14 EDT Monday, October 21, 2013

ST. JOHN'S, NEWFOUNDLAND--(Marketwired - Oct. 21, 2013) - Canada Fluorspar Inc. (TSX VENTURE:CFI)(OTC:CNDFF) ("CFI" or the "Company") is pleased to announce the ninth set of assay results under the Company's Phase 3 diamond drilling program from three drill holes on its AGS Vein property. One of the drill holes, GS-13-34, located 100 metres southeast of previously reported drill holes GS-13-21, GS-13-22 and GS-13-23 (press releases dated August 20, 2013, September 18, 2013 and October 8, 2013, respectively) intersected the AGS Vein structure (formerly known as the Grebes Nest Vein structure) having an average grade of 43.52% CaF2 over 14.84 metres. Two additional drill holes, GS-13-32, located on the same plane as previously reported drill hole GS-13-08 (press release dated July 11, 2013) and about 33 metres southeast of the old AGS shaft and 1367 metres northwest of drill hole GS-13-34, and drill hole GS-13-27, located on the same plane as previously reported drill holes GS-13-03 and GS-13-04 (press releases dated July 11, 2013 and August 20, 2013, respectively) and about 1,100 metres northwest along strike from drill hole GS-13-34. The AGS Vein 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). The three drill holes are located in the vicinity of Grebes Nest Pond within the AGS property 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.

Drill hole GS-13-34 was inclined at -45° and oriented at azimuth 34°, drill hole GS-13-32 was inclined at -45° and oriented at azimuth 34° and drill hole GS-13-27 was inclined at -62° and oriented at azimuth 34°.

To view the first map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/CFI1021a.pdf

Assay Results

Drill hole GS-13-34 tested the strike extension of the AGS Vein to the southeast and intersected the vein structure having an average grade of 43.52% CaF2 over 14.84 metres.

Drill hole GS-13-32 was designed to test the AGS Vein at about 30-40 metres vertically from surface and was located on the same plane as drill hole GS-13-08, intersecting the AGS Vein structure at an average grade of 26.02% CaF2 over 9.38 metres.

Drill hole GS-13-27 tested the down-dip extension of the AGS Vein on the same plane as previously released drill holes GS-13-03 and GS-13-04 (press releases dated July 11, 2013 and August 20, 2013, respectively). The drill holes intersected two shadow vein structures; one vein structure having an average grade of 48.19% CaF2 over 2.90 metres and the second vein structure having an average grade of 57.34% CaF2 over 7.63 metres.

To view the second map associated with this press release, please visit the following link: http://file.marketwire.com/release/CFI1021b.pdf

"It is encouraging that the main AGS vein structure continues to be extended to the southeast with similar grades and widths found in the deposit further to the northwest," stated Lindsay Gorrill, President and CEO of the Company. "With a possible south parallel structure looming and the main AGS vein structure holding strong as it advances to the east, the potential to further extend the AGS Vein strike and discover additional parallel veins with more drilling is promising."

Geological Interpretation

CFI has received assay results for samples collected from drill holes GS-13-34, GS-13-32 and GS-13-27 located along the western part of the AGS property target area. The three drill holes intersected mineralization that has been interpreted to be the AGS Vein plus a second vein south of the AGS Vein. Both vein structures appear to trend northwest-southeast and are steeply dipping.

Drill hole GS-13-34 identified the AGS Vein 100 metres further to the southeast along strike than any previously known location, thus increasing the strike of the vein to a total of 1,400 metres. The vein intersection occurred at a vertical depth of about 60 metres below surface.

Drill hole GS-13-32, located on the same plane as drill hole GS-13-08, intersected the AGS Vein structure about 40 metres vertically from surface and about 60 metres above the vein intersection identified in drill hole GS-13-08.

Drill hole GS-13-27, located in the same plane as previously reported drill holes GS-13-03 and GS-13-04, intersected the south AGS Vein structure with two separate veins: one vein located about 45 metres vertically from surface and the second vein at about 60 metres from surface. A weakly mineralized structure, considered to be the AGS main vein structure, was intersected from 223.84 to 248.71 meters in this hole. Additional drilling will be required to evaluate the extent of this possible pinch zone.

Preliminary interpretation of the drill results indicates that the western part of the target area of the mineralized AGS Vein structure maintains a relatively uniform width along strike and pinches slightly down depth to a vertical distance of between 150 and 200 metres below surface. The drill intersections indicate very competent core and good continuity of mineralized material along strike and down 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 AGS property area, where the AGS Vein is located, is underlain by a series of stacked pink rhyolite sills and dykes, similar in composition to the SLG, which intruded the metasedimentary rocks. The structure, which has been identified by the drill program, is a late phase event that cuts both the metasedimentary rocks and the sills.

The following table shows the detailed results of the ninth set of drill holes completed by CFI on the AGS Vein noted in Phase 3 of the Company's 2013 exploration diamond drilling program.

2013 Diamond-Drill Hole Assay Results
AGS Vein Property - Phase 3
Canada Fluorspar Inc.
St. Lawrence Project, NL
Hole GS-13-34
Sample No. From
(m)
To
(m)
Length
(m)
% CaF 2
108699 73.70 75.54 1.84 64.18
108700 75.54 76.54 1.00 21.21
108701 76.54 77.54 1.00 69.89
108702 77.54 78.54 1.00 35.51
108703 78.54 79.28 0.74 12.24
108704 79.28 80.28 1.00 32.58
108706 80.28 81.28 1.00 21.98
108707 81.28 82.28 1.00 16.04
108708 82.28 82.93 0.65 47.58
108710 82.93 83.80 0.87 25.04
108711 83.80 84.80 1.00 61.42
108712 84.80 85.80 1.00 40.07
108713 85.80 86.54 0.74 27.00
108715 86.54 87.54 1.00 76.65
108716 87.54 88.54 1.00 70.60
Hole-GS-13-32
Sample No. From
(m)
To
(m)
Length
(m)
% CaF 2
108667 42.77 43.77 1.00 24.78
108668 43.77 44.77 1.00 55.29
108669 44.77 45.69 0.92 40.32
108670 45.69 46.69 1.00 30.11
108671 46.69 47.69 1.00 21.83
108672 47.69 48.69 1.00 20.75
108673 48.69 49.50 0.81 10.60
108674 49.50 50.15 0.65 23.94
108675 50.15 51.15 1.00 7.71
108676 51.15 52.15 1.00 22.37
Hole-GS-13-27
Sample No. From
(m)
To
(m)
Length
(m)
% CaF 2
Vein No. 1
108634 41.00 42.00 1.00 83.97
108635 42.00 43.00 1.00 3.98
108636 43.00 43.90 0.90 57.56
Vein No. 2
108644 49.37 50.37 1.00 50.72
108645 50.37 51.37 1.00 71.57
108646 51.37 52.37 1.00 31.49
108647 52.37 53.22 0.85 20.37
108648 53.22 54.22 1.00 74.50
108649 54.22 55.22 1.00 78.10
108650 55.22 56.00 0.78 65.69
108651 56.00 57.00 1.00 62.54

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 Aluminum Company of Canada ("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 AGS Vein property (previously the Grebes Nest mineral property); namely, the AGS 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 metre wide and dips to the north at -70 degrees. Prospecting in the late 1940s traced the structure, through a series of trenches, to the southeast for a reported distance of 3.2 kilometers. In the late 1940s, 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 1 kilometre 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 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 drill holes in south extension Director Vein and 7 drill holes at Hares Ears Vein) and 48 drill holes in Phase 3 (AGS Vein area) of the 2013 exploration program. Assay results for remaining completed drill holes in Phase 3 are pending.

Historic exploration data indicates that there are more than 40 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 thirty-nine (39) previous drill holes and two (2) surface trenches 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, July 11, 2013, July 18, 2013, August 6, 2013, August 12, 2013, August 20, 2013, August 29, 2013, September 18, 2013 and October 8, 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, guidance 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:

Contact Information:
Canada Fluorspar Inc.
Lindsay Gorrill
President and CEO
1-800-823-8095
lgorrill@canadafluorspar.com
www.canadafluorspar.com

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