/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES OF
AMERICA/
Trading Symbols: TSX-V: ZFR
OTC-ZPHYF
Shares Outstanding: 67,986,985
HALIFAX, NS, July 5, 2021 /CNW/ - Zephyr Minerals
Ltd. ("Zephyr" or the "Company") (TSXV: ZFR)
(OTC: ZPHYF), is pleased to announce that it has submitted the
application for a mining permit for the Dawson gold deposit
("Dawson") with the Colorado Department of Reclamation and Mine
Safety. The application is for a proposed underground mine, mill,
mine support facilities and a dry stack tailings facility.
Success in obtaining a mining permit at Dawson will enable the
implementation of an underground development program which will
include construction of drill stations to undertake infill drilling
on the current resource as well as further drilling at depth. The
underground infrastructure is particularly important at Dawson as
the deposit is blind, with the top approximately 130 meters below
surface and dipping steeply underneath Dawson Mountain which results in inordinately
long and expensive drill holes to explore at depth from surface. An
updated resource estimate is planned for the project subsequent to
completion of an underground drilling program. The scheduling of
the underground program will hinge on obtaining the mining permit
and requisite funding.
A Preliminary Economic Assessment ("PEA") completed on the
Dawson deposit in 2017 demonstrates robust economics at a gold
price of US$1,250/oz. The PEA assumes
409,000 tonnes of mined/milled material with a diluted grade of 9.2
g/t gold, for recovery of 111,000 oz. gold at an all-in sustaining
cost of US$692/oz (see news release
of February 7, 2017). The PEA
includes inferred mineral resources that are too speculative
geologically to have economic considerations applied to them that
would enable categorization as mineral reserves. There has been
insufficient drilling to define the inferred resources as Indicated
or Measured mineral resources; however, it is reasonable to expect
that Inferred mineral resources could be upgraded to Indicated and
Measured resources with continued drilling. There is no guarantee
that any part of the mineral resources discussed herein will be
converted into a mineral reserve in the future.
The PEA is based on a mineral resource estimate prepared in
accordance with the CIM Standards and previously disclosed in
accordance with National Instrument 43-101 ("NI 43-101")*.
Additional surface drilling campaigns have been completed on the
Dawson deposit and the adjacent Windy Gulch deposit at various
intervals between 2013 and 2021 the results of which will be
incorporated in a future resource update.
Loren Komperdo, President &
CEO stated, "Given the proposed mine is entirely on private lands
and with a very small environmental footprint, and the potential
economic benefits to the community, we are optimistic on being
successful with the application. In this event, it will be an
important milestone for Zephyr, enabling the next step in the
development of the Dawson gold deposit."
During the permitting process for Dawson, which is now largely
in the hands of the regulators, management will have the time to
pursue additional projects for the Company. The Company's current
focus is on Zimbabwe where
potential opportunities are being investigated due to recent
favourable changes in mineral claims ownership combined with
underexplored Archean age, gold mineralized greenstone belts.
Additional Information
* Details of the mineral resource as applied in the PEA can be
found in the report titled National Instrument 43-101 Technical
Report for the Dawson Property, Colorado,
USA , dated March 21, 2017,
(the "Report") and was prepared for Zephyr by Golder and Associates
Ltd. The Report is available at sedar.com.
Mr. Michael Cullen, P.Geo., of
Mercator Geological Services Ltd., an independent Qualified Person
as the term is defined under National Instrument 43-101 and a
co-author of the PEA, has reviewed and is responsible for the
scientific and technical information in this news release.
Loren Komperdo, President & CEO,
has reviewed and confirmed content of this news release and
supervised its preparation on behalf of Zephyr.
About Zephyr Minerals Ltd.
Zephyr Minerals Ltd. has applied for a mining permit at its 100%
owned high grade Dawson-Green Mountain property in Colorado, USA. After expanding it's land
package to 1,385 hectares (3,574 acres) the Company now controls a
12.2 km long Dawson-Green Mountain mineralized trend. The Company
has also begun new project evaluation with focus on underexplored
areas with the potential to host world class mineral deposits. In
addition to the Dawson-Green Mountain property, the Company is
assessing opportunities in Zimbabwe.
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. The forward-looking statements contained in this
document are based on certain key expectations and assumptions made
by the Company, including, with respect to the use of funds from
the private placement, expectations and assumptions concerning
timing of receipt of required regulatory approvals and third party
consents and the satisfaction of other conditions to the completion
of the exploration work on the Dawson-Green Mountain Property. The
forward-looking statements contained in this document are made as
of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities
laws.
SOURCE Zephyr Minerals Ltd.
