Titan Mining Corporation (TSX:TI) (“
Titan” or the
“
Company”) today provided an update on the
operations and exploration program at its Empire State Mine
(“ESM”). All financial amounts are in U.S. dollars, unless
otherwise stated.
Highlights
- Titan’s executive leadership team was strengthened with the
appointment of Donald Taylor as Chief Executive Officer, Purni
Parikh as President and Kevin Torpy as VP, Operations.
- The Board of Directors was enhanced with the addition of John
Boehner, James Gowans and William Mulrow, bringing further mining
and financial expertise to the Board.
- Drilling has resulted in a major high-grade expansion of the
near-mine #2D zone, formerly referred to as #2 Deep, by over 700
feet down-plunge. The zone remains open at depth and laterally
toward the #4 shaft. Development of this zone will be a focus in
the short term. A definition drilling program is planned for the
fourth quarter of 2018, and preliminary engineering design is
underway.
- An updated mine plan for ESM, incorporating the #2D zone, is
expected in the first half of 2019.
- Production at ESM was impacted in the third quarter of 2018
mainly by low productivity from the mining contractor, however,
payable zinc shipments increased by 6% from the prior quarter.
- The transition from contractor to owner-mining has been
completed and 190 of 200 staff positions at ESM have been filled to
date.
- Titan has received a commitment for the financing of its
operations into 2019.
Donald Taylor, Chief Executive Officer of Titan,
commented: “We faced some set-backs in the ramp up at ESM.
Production rates in the third quarter were impacted by a hoist
incident and overall underperformance by our mining contractor. New
mine management is in place and immediate changes have been
implemented to address this short-term issue. The transition from
contractor to owner-mining was accelerated and completed before the
end of October. I believe the quick decisions today will set us up
for a successful 2019 and beyond as we target near-mine growth
opportunities to maximize production, given our available spare
capacity.”
“The #2D zone, an extension of the large #2 mine
which accounted for about half of the tons mined historically at
ESM, is growing rapidly,” continued Mr. Taylor. “This zone has the
potential to add significant high-grade tonnage to the mine plan,
with low capital costs given its proximity to the existing #4 shaft
and historic infrastructure. We plan to complete an updated mine
plan in the first half of 2019 that is expected to incorporate
these lower-risk tons from the #2D zone and reflect production
levels well beyond the company's previous 1,800 tons-per-day
run-rate target.”
Richard Warke, Executive Chairman of Titan, has
committed to finance the Company’s operations into 2019.
Richard Warke stated, “With our new leadership
in place, I am confident in ESM’s long-term growth prospects. The
mine was purchased with the belief there would be numerous large,
high-grade orebodies found in this prolific zinc district, and I am
very pleased that #2D has been identified and expanded so quickly.
It could be a game changer. The Augusta Group has had great success
over the years by identifying projects that have been overlooked in
the market and adding value through new exploration, studies and
approaches to development. With the addition of Don Taylor as CEO
and the experience he brings, Titan will undoubtably have an
exciting future.”
Operations Review
In the third quarter of 2018, mine ore
production of 57,544 tons was 11% lower than in the prior quarter,
however, milled grade was 9.0% zinc and concentrate grade was 59.7%
zinc, demonstrating effective grade control. Zinc concentrate
production was 8,816 tons, a 7% increase from the prior quarter,
reflecting higher average feed grade and high mill recovery of
96.1%. Payable zinc shipments totaled 9.4 million pounds, an
increase of 6% from the prior quarter.
Production at ESM was impacted by a number of
operational issues in the third quarter. In late July, a hoist
incident occurred following which underground activities were
suspended for six days. The cause of the incident was electrical in
nature, and corrective action was taken. ESM experienced lower
development and production rates than anticipated due to
underperformance of the mining contractor, which impacted the
overall level of productivity. The mine is expected to benefit from
the transition to owner-mining which was completed in October.
Recruiting efforts associated with the transition have been
progressing well. There are 10 positions remaining to be filled in
order to reach the current target staffing level of 200.
Major Expansion of Historic Mineralized
Zone at ESM #2 Mine
Successful exploration drilling has extended the
previously identified mineralization in the #2D zone at ESM (see
News Release dated June 12, 2018). The exploration drill holes
highlighted in this news release are step-out holes from the
unmined historic #2D mineralized zone, confirming the presence of
robust mineralization down-plunge to the north-northeast of the
historic #2 mine. Multiple mineralized horizons (#2D Upper and #2D
Lower) were intercepted, demonstrating the continuity of
mineralization along strike and laterally in the #2D zone. Based on
the drill results, there is potential to expand the historic
unmined mineralized material of 931,000 tons at a diluted grade of
6.6% zinc. The #2D zone is located approximately 650 feet east of
the #4 shaft, at an elevation above the bottom of the shaft.
Scott Burkett, Vice President, Exploration,
said, “These exploration results are extremely exciting as they
clearly indicate the potential for a significant mineral resource
at the #2D zone. As this zone is close to current mine
infrastructure, it could increase our daily production profile
relatively quickly and extend our overall mine life. Additionally,
the historic #2 zone is just one of several zones which were mined
in the past at ESM and remain open as exploration targets. We will
continue to drill these near-mine zones, and also pursue
high-priority district exploration targets identified on the
extensive ESM land package.”
SX18-2441 is a vertical step-out hole drilled
from surface. There were four mineralized intercepts, extending the
historic mineralization 250 feet to the north-northeast. A
noteworthy mineralized interval was:
- 9.6 feet assaying 16.2% zinc (#2D)
SX18-2442 is a vertical step-out hole drilled
from surface. The drill hole intercepted two mineralized zones
(Sylvia Lake and #2D) with significant mineralization. The hole was
drilled 300 feet to the east-southeast of SX18-2441, linking the
mineralized zone from east to west. Notable mineralized intervals
were:
- 10.6 feet assaying 11.1% zinc, 2.1% lead and 27.5 ppm
silver (Sylvia Lake)
- including 2.2 feet assaying 41.6% zinc, 9.8% lead and
120 ppm silver
- 25.1 feet assaying 12.0% zinc (#2D)
- including 5.7 feet assaying 27.6% zinc
SX18-2445 is a vertical infill hole drilled from
surface. There were four mineralized intercepts linking the
historic mineralization to SX18-2442, approximately 200 feet
down-plunge to the north. A significant mineralized interval
was:
- 29.8 feet assaying 5.9% zinc (#2D)
- including 13.2 feet assaying 10.3% zinc
UX18-001 is an inclined step-out underground
drill hole. The drill hole intercepted two mineralized horizons
which extend the #2D zone approximately 720 feet down-plunge from
the historic drilling. A noteworthy mineralized interval was:
- 40.5 feet assaying 9.3% zinc (#2D)
- including 23.8 feet assaying 13.1% zinc
UX18-002 is an inclined step-out underground
drill hole that was drilled 50 feet to the east of UX18-001 and had
four mineralized intercepts. This confirms that the #2D zone
extends 720 feet north from the historic drilling and has lateral
continuity. The drill hole had a notable mineralized interval:
- 19.8 feet assaying 7.3% zinc (#2D)
For a full list of the #2D and Sylvia Lake
mineralized intervals from these holes, refer to Table 1.
Table 1 – Recent Exploration Drill
Results from ESM
|
Drill hole |
From (feet) |
To (feet) |
Interval (feet) |
From (meters) |
To (meters) |
Interval (meters) |
Zn% |
Pb% |
Ag ppm |
Zone |
|
SX18-2441 |
1669.0 |
1672.3 |
3.3 |
508.8 |
509.8 |
1.0 |
7.2 |
1.3 |
12.4 |
Sylvia Lake |
|
SX18-2441 |
2514.8 |
2524.4 |
9.6 |
766.7 |
769.6 |
2.9 |
16.2 |
- |
3.5 |
#2D Upper |
|
SX18-2441 |
2591.4 |
2598.7 |
7.3 |
790.1 |
792.3 |
2.2 |
4.5 |
0.1 |
4.8 |
#2D Lower |
|
SX18-2441 |
2630.7 |
2633.7 |
3.0 |
802.0 |
803.0 |
0.9 |
7.5 |
0.8 |
8.5 |
#2D Lower |
|
SX18-2441 |
2678.8 |
2681.0 |
2.2 |
816.7 |
817.4 |
0.7 |
4.7 |
- |
0.8 |
#2D Lower |
|
|
|
SX18-2442 |
1741.4 |
1751.9 |
10.6 |
530.9 |
534.1 |
3.2 |
11.1 |
2.1 |
27.5 |
Sylvia Lake |
|
Including |
1741.4 |
1743.6 |
2.2 |
530.9 |
531.6 |
0.7 |
41.6 |
9.8 |
120.0 |
Sylvia Lake |
|
SX18-2442 |
2362.0 |
2387.1 |
25.1 |
720.1 |
727.8 |
7.7 |
12.0 |
- |
4.3 |
#2D Upper |
|
Including |
2367.9 |
2373.5 |
5.7 |
721.9 |
723.6 |
1.7 |
27.6 |
- |
1.6 |
#2D Upper |
|
SX18-2442 |
2397.3 |
2402.4 |
5.0 |
730.9 |
732.4 |
1.5 |
8.0 |
0.1 |
6.9 |
#2D Upper |
|
SX18-2442 |
2447.6 |
2454.3 |
6.7 |
746.2 |
748.2 |
2.0 |
1.9 |
- |
0.7 |
#2D Lower |
|
SX18-2442 |
2461.3 |
2470.2 |
8.9 |
750.4 |
753.1 |
2.7 |
2.6 |
0.1 |
2.2 |
#2D Lower |
|
|
|
SX18-2445 |
1718.8 |
1721.0 |
2.2 |
524.0 |
524.7 |
0.7 |
13.6 |
0.3 |
29.2 |
Sylvia Lake |
|
SX18-2445 |
2376.0 |
2405.8 |
29.8 |
724.4 |
733.5 |
9.1 |
5.9 |
- |
9.1 |
#2D Upper |
|
Including |
2380.5 |
2393.7 |
13.2 |
725.8 |
729.8 |
4.0 |
10.3 |
- |
9.7 |
#2D Upper |
|
SX18-2445 |
2418.6 |
2428.3 |
9.7 |
737.4 |
740.3 |
3.0 |
7.7 |
0.1 |
3.5 |
#2D Upper |
|
SX18-2445 |
2476.7 |
2483.3 |
6.6 |
755.1 |
757.1 |
2.0 |
8.2 |
1.2 |
10.8 |
#2D Lower |
|
|
|
UX18-001 |
1357.0 |
1397.5 |
40.5 |
413.7 |
426.1 |
12.3 |
9.3 |
- |
4.0 |
#2D Upper |
|
Including |
1357.0 |
1380.8 |
23.8 |
413.7 |
421.0 |
7.3 |
13.1 |
- |
3.7 |
#2D Upper |
|
UX18-001 |
1445.0 |
1459.6 |
14.6 |
440.5 |
445.0 |
4.5 |
1.6 |
- |
3.7 |
#2D Lower |
|
|
|
UX18-002 |
1341.9 |
1361.0 |
19.1 |
409.1 |
414.9 |
5.8 |
2.1 |
- |
3.2 |
#2D Upper |
|
UX18-002 |
1375.2 |
1395.0 |
19.8 |
419.3 |
425.3 |
6.0 |
7.3 |
- |
5.1 |
#2D Upper |
|
UX18-002 |
1410.8 |
1426.6 |
15.8 |
430.1 |
434.9 |
4.8 |
3.9 |
- |
8.3 |
#2D Lower |
|
UX18-002 |
1444.2 |
1490.0 |
45.8 |
440.3 |
454.3 |
14.0 |
1.5 |
- |
5.5 |
#2D Lower |
Note: It is not possible to determine the true
width of the zone based on the drill density and no representation
is made here regarding true width of the zone.
In Figure 1, grade-thickness contours, based on
the cumulative thickness of layered mineralized horizons at #2D,
show an area of thicker, high-grade mineralization which extends
down-plunge and may be associated with a fold hinge.
Figure 2 is a schematic long section looking
southwest, showing the #2D zone and other near-mine mineralized
zones at ESM.
Figure 3 shows part of a two-foot interval of
drill core from Hole SX18-2441, containing high-grade,
coarse-grained sphalerite, and assaying 33% zinc.
Figures 4 and 5 show a locomotive and rail cars
on a heavy duty track on the 2500 level at the #2D zone, part of
the existing infrastructure that connects this zone to the nearby
#4 shaft.
Figure 6 is a schematic long section of the #2D
zone, looking northeast.
In the fourth quarter of 2018, Titan plans to
spend $1.5 million on exploration drilling in the #2D zone.
Drilling is underway with five exploration drills (two underground
and three surface) and the Company expects to expand the zone
further, and define it with 200-foot drill spacing over at least
1,000 feet of strike length from the historic mineralization.
Figure 1 – Plan View of #2D Zone with Zinc
Grade-Thickness Contour
http://www.globenewswire.com/NewsRoom/AttachmentNg/2bf11161-2cab-4f59-ad63-d5c765c29d74
Note: Grade-thickness reflects cumulative thickness of #2D Upper
and #2D Lower horizons of mineralization.
Figure 2 – Schematic Long Section
Showing #2D and Other Near-Mine Mineralized Zones at
ESM
http://www.globenewswire.com/NewsRoom/AttachmentNg/0a6c5144-4486-44e8-8484-ddaeb591a7b6
Figure 3 – Drill Core from Hole SX18-2441 Showing
High-Grade, Coarse-Grained Sphalerite (Section of Two-Foot Interval
Assaying 33% Zinc)
http://www.globenewswire.com/NewsRoom/AttachmentNg/14211fe8-ac02-402e-92f1-d2141ee231ce
Figure 4 – Existing Locomotive and 8-Ton
Rail Cars which Hauled 2,400 Tons per Day from the Historic #2
Mine
http://www.globenewswire.com/NewsRoom/AttachmentNg/cc18caac-35c7-4d6a-a91c-e7ae374e819a
Figure 5 – 1,500-Foot Tramway in Good
Shape on 2500 Level at #2 Mine; Connects #2D Zone to an Existing
Ore Pass to the Underground Crusher at the Bottom of #4
Shaft
http://www.globenewswire.com/NewsRoom/AttachmentNg/fb83139e-5151-47d6-a0ee-78ae0eaf3639
Figure 6 – Schematic Long Section of #2D Zone Looking
Northeast
http://www.globenewswire.com/NewsRoom/AttachmentNg/ded5c1f0-a050-4865-ae09-95c2fcc13389
Qualified Person
The results of the Titan drilling have been
reviewed, verified and compiled by Donald Taylor, MSc., PG, Chief
Executive Officer of Titan, a qualified person as defined by
National Instrument 43-101 (NI 43-101). Mr. Taylor has 30 years of
mineral exploration and mining experience, and is a Registered
Professional Geologist through the SME (registered member
#4029597).
Assays and Quality Assurance/Quality
Control
To ensure reliable sample results, the Company
has a rigorous QA/QC program in place that monitors the
chain-of-custody of samples and includes the insertion of blanks
and certified reference standards at statistically derived
intervals within each batch of samples. Core is photographed and
split in half with one-half retained in a secured facility for
verification purposes.
Sample preparation (crushing and pulverizing)
has been performed at ALS Geochemistry, an ISO/IEC accredited lab
located in Sudbury, Ontario, Canada. ALS Minerals Laboratories
prepares a pulp of all samples and sends the pulps to their
analytical laboratory in Vancouver, B.C., Canada, for analysis. ALS
analyzes the pulp sample by an aqua regia digestion (ME-ICP41 for
35 elements) with an ICP – AES finish including Cu (copper), Pb
(lead), and Zn (zinc). All samples in which Cu (copper), Pb (lead),
or Zn (zinc) are greater than 10,000 ppm are re-run using aqua
regia digestion (Cu-OG46; Pb-OG46; and Zn-OG46) with the elements
reported in percentage (%). Silver values are determined by an aqua
regia digestion with an ICP-AES finish (ME-ICP41) with all samples
with silver values greater than 100 ppm repeated using an aqua
regia digestion overlimit method (Ag-OG46) calibrated for higher
levels of silver contained. Gold values are determined by a 30 g
fire assay with an ICP-AES finish (Au-ICP21).
About Titan Mining
Corporation
Titan is an Augusta Group company which produces
zinc concentrate at its 100%-owned Empire State Mine (“ESM”)
located in New York State. ESM is a group of zinc mines which
started production in the early 1900s. Titan is built for growth,
focused on value and committed to excellence. The company’s shares
are listed under the symbol "TI" on the Toronto Stock Exchange. For
more information on the Company, please visit our website at
www.titanminingcorp.com.
Contact
For further information, please contact:
Jerrold Annett – Senior Vice President, Corporate
DevelopmentTelephone: 416-366-5678 Ext. 207 | Email:
jannett@titanminingcorp.com
Jacqueline Allison – Vice President, Investor Relations
and Strategic Analysis Telephone: 416-366-5678 Ext. 205 |
Email: jallison@titanminingcorp.com
Cautionary Note Regarding
Forward-Looking Information
This press release contains certain
forward-looking statements. Words such as “expects”, “anticipates”
and “intends” or similar expressions are intended to identify
forward-looking statements. Forward-looking information is
necessarily based on a number of opinions, assumptions and
estimates that, while considered reasonable by the Company as of
the date of this press release, are subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, use of proceeds or timing of events to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to the
factors described in greater detail in the “Risks and
Uncertainties” section and other sections of the Company’s
Management’s Discussion and Analysis for the year ended December
31, 2017, available at www.sedar.com. No securities regulatory
authority has expressed an opinion about the securities described
herein and it is an offence to claim otherwise. Titan undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required by law.
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