Huakan Intersects 2.69m Grading 7.66 g/t Au, 82.58 g/t Ag, 3.44% Pb and 6.30% Zn in Main Zone Drilling at J&L
25 June 2012 - 10:30PM
Marketwired Canada
Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company") announces Main
Zone drill results from holes DDH12-11 through DDH12-23 from the 2012
underground diamond drill program at its J&L precious and polymetallic
(gold-silver-lead-zinc) project, located near Revelstoke, British Columbia. The
drilling program is now completed with 45 holes in 9,725 metres. The aim of the
drill program was to increase the indicated resource category for the Main Zone
deposit. The program was successful in intersecting similar grade and thickness
of mineralization as previous nearby holes. An updated resource will be
completed once all assays have been received and the deposit has been
re-modeled.
Holes reported in this news release were directed into 3 target areas: Target
Areas A, B and C. Hole density or spacing in this campaign averaged 60 metre
centres.
Area A
There were a total of 11 holes completed in Area A during the program, covering
a target area of 150 metres in the down dip direction and 300 metres in strike
length. Intercepts encountered were typical of the Main Zone, ranging between
1.23 metres and 8.48 metres wide, with an average width of about 3.0 metres.
Assays have been received for 4 of the 11 holes completed in Area A and are
shown in the following table. Three of these holes were previously reported (NR
12-07). The length weighted average gold grade of the intercepts in the
following table (excluding the low grade intercept in hole 9) is -6.61 g/t Au.
Table 1: Drilling Highlights from Area A
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From To Length Au Ag Pb Zn
Hole ID (m) (m) (m) (g/t) (g/t) (%) (%)
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DDH12-08(i) 171.75 174.74 2.99 2.88 73.29 3.63 9.35
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DDH12-09(i) 192.38 193.61 1.23 4.13 71.88 3.03 2.68
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and 206.55 208.11 1.56 1.94 20.94 0.21 0.06
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DDH12-10(i) 207.70 216.18 8.48 9.41 101.39 2.17 4.31
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DDH12-11 207.58 211.85 4.27 3.66 86.87 1.96 1.59
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(i) Previously reported
Area B
Eleven holes were completed in Area B during the program, covering a target area
of 120 metres in the down dip direction and 300 metres in strike length. Target
Areas A and B are laterally adjacent to each other or a lateral continuum of the
Main Zone. Results have been received from 7 holes, DDH12-17 through DDH12-23 in
Area B and are tabled below. Visible gold was observed in 2 holes (DDH12-18 and
-21). Main Zone intercepts ranged between 0.61 metres and 2.69 metres. From the
table, the length weighted average gold grade in this area to-date is 6.32g/t
Au.
Table 2: Drilling Highlights from Area B
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From To Length Au Ag Pb Zn
Hole ID (m) (m) (m) (g/t) (g/t) (%) (%)
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DDH12-17 199.04 200.53 1.49 2.12 65.19 3.78 7.19
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DDH12-17 203.91 204.72 0.81 4.24 15.30 0.10 0.82
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DDH12-18 184.83 187.39 2.56 4.74 44.08 1.53 2.14
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DDH12-18 196.15 197.82 1.67 21.39 27.15 0.43 0.36
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DDH12-19 224.50 224.81 0.31 2.69 99.70 4.41 5.94
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DDH12-20 180.22 181.93 1.71 3.28 26.39 0.99 1.85
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DDH12-21 194.48 195.65 1.17 3.26 18.16 0.61 1.29
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DDH12-21 199.01 199.62 0.61 3.63 6.8 0.03 0.03
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DDH12-22 235.74 237.44 1.70 1.21 25.57 1.00 3.14
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DDH12-22 244.95 245.64 0.69 11.30 71.3 1.38 1.13
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DDH12-23 204.20 206.89 2.69 7.66 82.58 3.44 6.30
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Area C
Ten holes were completed in Area C during the program, covering a target area of
250 metres in the down dip direction and 300 metres in strike length. The target
area lies in the far southeast end of the deposit. Results from five holes,
DDH12-12 through DDH12-16 are tabled below. The Main Zone was encountered in
each hole, which displayed much variation in its width and grade. Thicknesses
range from 0.70 metres to 6.47 metres and gold grades range from 1.24 g/t Au to
7.32 g/t Au. The length weighted average gold grade to-date in this area is 4.30
g/t Au. Visible gold was noted in DDH12-16.
Table 3: Drilling Highlights from Area C
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From To Length Au Ag Pb Zn
Hole ID (m) (m) (m) (g/t) (g/t) (%) (%)
---------------------------------------------------------------------------
DDH12-12 107.27 108.72 1.45 7.32 21.88 0.51 0.48
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DDH12-13 102.07 102.77 0.70 3.58 11.00 0.24 0.05
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DDH12-15 102.65 109.12 6.47 3.78 12.73 0.28 0.46
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DDH12-16 136.10 137.40 1.30 3.86 10.52 0.41 0.67
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DDH12-16 141.93 142.95 1.02 4.34 13.44 0.11 0.05
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The 2012 diamond drill program was under the supervision of Paul Cowley, P.Geo.,
the Company's Qualified Person and VP Exploration. BQTW-sized core samples have
been cut in half and sent to ALS Laboratory Group in Kamloops, BC. Samples are
assayed for gold by fire assay (50 gram charge) as well as assayed for silver,
lead and zinc. The Company inserted standards, blanks and duplicate samples
throughout the sample sequence as quality control checks.
Paul Cowley, P.Geo., and VP Exploration, states, "We continue to be pleased with
the Main Zone continuity and deposit expansion demonstrated by the current drill
campaign. The Main Zone deposit remains open down dip and along strike, with
excellent potential to expand the current resource."
Results from the remaining holes DDH12-24 through 45 will be released upon receipt.
About Huakan International Mining Inc.
Huakan's flagship property is the J&L, which it owns 100% with no underlying
royalties. The property has a current resource at a $110/tonne in-situ NSR
cut-off value of:
Main Zone
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Au Au Ag Ag Pb Zn
Classification Tonnes (g/t) (ozs) (g/t) (ozs) (%) (%)
---------------------------------------------------------------------------
Measured 1,202,000 6.71 259,200 69.0 2,664,600 2.40 4.46
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Indicated 1,165,700 6.92 259,200 64.9 2,432,100 2.01 3.86
---------------------------------------------------------------------------
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Measured & 2,367,700 6.81 518,400 66.95 5,096,700 2.21 4.16
Indicated
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---------------------------------------------------------------------------
Inferred 4,538,100 5.19 757,500 67.8 9,887,800 2.16 2.99
---------------------------------------------------------------------------
Footwall Zone
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Au Au Ag Ag Pb Zn
Classification Tonnes (g/t) (ozs) (g/t) (ozs) (%) (%)
---------------------------------------------------------------------------
Inferred 292,800 4.54 42,700 49 461,900 0.91 0.73
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1. Mineral resources which 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.
2. Confidence in the estimate of Inferred Mineral Resources is insufficient
to allow the meaningful application of technical and economic
parameters. There is no guarantee that all or any part of a mineral
resource can or will be converted into a mineral reserve.
3. The mineral resources in this estimate were calculated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and
adopted by CIM Council.
4. The following parameters were used to derive the NSR block model values:
-April 30/11 US$ two year trailing av'g. metal prices of Au $1,183/oz,
Ag $21/oz, Pb $0.99/lb, Zn $0.95/lb; Exchange rate of US$0.95US =
$1.00CDN -Process recoveries of Au 92%, Ag 88%, Pb 80%, Zn 72%; Smelter
payables of Au 96%, Ag 91%, Pb 95%, Zn 85% -Refining charges of Au
US$15/oz, Ag US$0.50/oz; Concentrate freight charges of C$65/t and
Smelter treatment charge of US185/t -Mass pull of 5% and 8% concentrate
moisture content.
5. The NSR cut-off of CDN$110 per tonne was derived from $75/t mining,
$25/t processing and $10/t G&A.
Paul Cowley, P.Geo., Vice President Exploration for the Company, is the
Qualified Person as defined in National Instrument 43-101, who has reviewed and
approved the technical content of this news release.
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION
Certain of the statements made and information contained herein may contain
forward-looking statements or forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or forward-looking
information include, but are not limited to statements concerning the J&L
underground drill program. Forward-looking statements or information include
statements regarding the expectations and beliefs of management. Often, but not
always, forward-looking statements and forward-looking information can be
identified by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or the negatives thereof or variations of such words and phrases or
statements that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Forward-looking statements or
information include, but are not limited to, statements or information with
respect to known or unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements or information.
Forward-looking statements or information 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 or information, including, without
limitation, risks and uncertainties relating to: completion of announced
transactions, history of losses; requirements for additional capital; dilution;
loss of its material properties; interest rates increase; global economy;
limited history of production; speculative nature of exploration activities;
periodic interruptions to exploration, development and mining activities;
environmental hazards and liability; industrial accidents; failure of processing
and mining equipment; labour disputes; supply problems; commodity price
fluctuations; uncertainty of production and cost estimates; the interpretation
of drill results and the estimation of mineral resources and reserves; legal and
regulatory proceedings and community actions; title matters; regulatory
restrictions; permitting and licensing; volatility of the market price of common
shares; insurance; competition; hedging activities; currency fluctuations; and
loss of key employees. 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 or
information. Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information. The Company disclaims any intent or
obligation to update forward-looking statements or information except as
required by law, and you are referred to the full discussion of the Company's
business contained in the Company's reports filed with the securities regulatory
authorities in Canada.
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