Kerr Mines Drills 12.2 Meters of 11.7 g/t Gold at Copperstone
04 April 2019 - 9:30PM
Kerr Mines Inc. (TSX:
KER, OTC: KERMF, FRA: 7AZ1) (“Kerr” or the
“Company”) is pleased to announce initial drilling results
from its resource expansion program at the Copperstone Mine located
in Arizona, USA. Additional drilling results are pending and
will be released as they become available.
2019 Resource Expansion
Highlights:
- Drill hole 18-08A-02 returned an interval of 12.2 meters at
11.7 g/t Au, including 3 meters of 38.3 g/t
Au, indicating the zone is higher grade and thicker than
initially anticipated with an effective mining width of 17.7
meters;
- Additional intervals include 6.1 meters @ 5.8 g/t Au
(18-05A-01); 4.6 meters @ 9.8 g/t Au (18-05A-06) and 4.6 meters @
18.3 g/t Au (18-08A-03);
- Established continuity between previously drilled mineralized
intercepts in the existing Inferred category while extending
mineralization along strike and dip;
- Drilling is being accomplished entirely from existing
underground access and will affect an area of 500 meters of strike
length and 200 meters of elevation, representing approximately 33
per cent of the current resource strike length. The program was
designed to increase confidence in the mineral reserve,
particularly the portion scheduled for the first three years of
production in the recently-completed Pre-Feasibility Study
(PFS).
- The objective of the underground resource expansion program is
to increase mine life by adding new Inferred resources and
converting new and existing Inferred resources into Measured and
Indicated resources. Updating the mine plan with the new
resources will be the final step towards extending mine life once
all drilling results have been received; and,
- Resource Expansion underground drilling program of up to 10,000
meters is currently focused on the D and C areas of the Copperstone
zone.
“We are extremely pleased with the initial
drilling results and performance of the program in its early stages
and look forward to communicating results as they become
available. These results confirm our understanding of the
Copperstone gold deposit and support our confidence in expanding
the resources and further extending mine life at the Copperstone
Mine,” stated Martin Kostuik, President.
|
|
|
|
|
|
|
Hole ID |
From |
To |
Interval Length |
Gold* |
True Thickness** |
Effective Mining Width*** |
|
meter |
meter |
meter |
gram/tonne |
meter |
meter |
18-05A-01 |
16.8 |
24.4 |
7.6 |
5.15 |
4.6 |
8.2 |
includes |
16.8 |
22.9 |
6.1 |
5.77 |
3.7 |
6.1 |
includes |
16.8 |
18.3 |
1.5 |
12.85 |
0.9 |
1.5 |
18-05A-06 |
36.6 |
44.2 |
7.6 |
7.71 |
4.9 |
8.2 |
includes |
39.6 |
44.2 |
4.6 |
9.84 |
2.7 |
4.9 |
18-08A-02 |
12.2 |
24.4 |
12.2 |
11.70 |
10.1 |
17.7 |
includes |
18.3 |
24.4 |
6.1 |
20.67 |
5.2 |
8.8 |
includes |
21.3 |
24.4 |
3.0 |
38.25 |
2.4 |
4.6 |
18-08A-03 |
10.7 |
27.4 |
16.8 |
8.25 |
16.2 |
28.3 |
includes |
22.9 |
27.4 |
4.6 |
18.25 |
4.6 |
7.6 |
* Grades
herein are reported as uncapped values. |
**
Estimated distance between the foot wall and hanging wall of the
mineralized zone measured perpendicularly to the edges. |
***
Effective Mining Width is defined as the distance between the foot
wall and hanging wall of the mineralized zone measured horizontally
and matches the planned mining method. The mining method used
to calculate reserves will extract ore by drift mining along strike
in a defined ore stope. The Effective Mining Width is the
width that miners will be working within. |
|
|
|
|
|
|
|
18-05A-01: Azimuth 245, inclination 0, total
length 64 meters. This hole demonstrates opportunity to
convert Inferred resource in the resource domain to Measured or
Indicated resource. The intercepted thickness of the resource
domain is wider than had been anticipated by the existing model,
having a true thickness of approximately 6 meters. This
intercept is 16 meters up-dip from the edge of the nearest
engineered mining stope and may allow the stopes to be extended
up-dip.
18-05A-06: Azimuth 235, inclination 0, total
length 70 meters. This hole demonstrates opportunity to
convert Inferred resource in the resource domain to Measured or
Indicated resource. The intercept length approximates true
thickness and is approximately what had been previously modelled,
while the grade of this intercept exceeds what had been predicted
in the existing model. Similar to hole 18-05A-01, this
intercept is approximately 16 meters up-dip from the upper edge of
engineered mining stopes in the resource domain and may allow the
stopes to be extended up-dip.
18-08A-02: Azimuth 245, inclination -20, total
length 40 meters. This hole demonstrates opportunity to
convert Inferred resource in the resource domain to Measured or
Indicated resource. The intercept length approximates the
true thickness of the domain and shows it to be twice the
anticipated thickness at this location and also of higher grade
than anticipated. This intercept is 40 meters up-dip from the
upper edge of engineered mining stopes of the resource domain and
may allow the stopes to be extended up-dip.
18-08A-03: Azimuth 245, inclination -40, total
length 43 meters. This hole demonstrates opportunity to
convert Inferred resource in the resource domain to Measured or
Indicated resource. The intercept approximates the true
thickness of the zone and is of approximately the expected
thickness and is of higher than anticipated gold grade. This
intercept demonstrates opportunity to convert domain resources 30
meters up-dip from the upper edge of engineered mining stopes and
may allow the stopes to be extended up-dip.
The Copperstone zone is the underground
extension of the same orebody that was historically mined as an
open pit. The pit mined nearly 150 vertical meters of the
Copperstone zone and produced in excess of 500,000 gold ounces
historically. The Copperstone orebody currently has a
horizontal strike length of over 1,500 meters and extends 110
meters beneath the historical open pit. Within this area
there are Measured and Indicated resources of 276,100 gold ounces
and Inferred resources of 145,700 gold ounces.
Future drilling programs, with the objective of
further mine life extension, will target areas beyond the current
2019 Phase II affected area of 500 meters of strike length. The
ultimate goal would be the addition of resources along all sections
encompassing the entire current resource strike length of over
1,500 meters.
The technical information in this news release
has been prepared in accordance with the Canadian regulatory
requirements set out in NI 43-101 and reviewed and approved by
Michael R. Smith, SME Registered Member (Geology), who is a
“Qualified Person” as defined by NI 43-101 for this project.
About Kerr Mines Inc. Kerr
Mines is an Emerging American Gold Producer currently advancing the
100% owned, fully permitted past-producing Copperstone Mine project
to production. Copperstone is a high-grade gold project located
along a detachment fault mineral belt in mining-friendly Arizona.
This gold project in Arizona demonstrates tremendous exploration
potential targeting multi-million ounce prospects within a 50
Square kilometers (12,259 acre) land package.
Quality Assurance and Quality Control
Statement Procedures have been implemented to assure
Quality Assurance Quality Control (QAQC) of drill hole assaying
being done at ALS Global, which is ISO Accredited. All
intervals of drill holes are being assayed and samples are securely
stored for shipment to ALS, with chain of custody documentation
through delivery. Mineralized commercial reference standards
and coarse blank standards are inserted every 30th sample in
sequence and results are graphed to assure acceptable results,
resulting in high confidence of the drill hole assay results.
When laboratory assays are received, the QAQC results are
immediately evaluated and graphed to analyze dependability of the
drill hole assays. As the Copperstone Project advances,
additional QAQC measures will be implemented including selected
duplicate check assaying on pulps and coarse rejects at a second
accredited assay laboratory. All results will be analyzed for
consistency.
For further information
contact:Claudio Ciavarella Chief Executive
Officercciavarella@kerrmines.com 416-855-9305
Cautionary Note Regarding Forward
Looking Statements This news release contains
forward-looking statements, including current expectations on the
timing of the commencement of production and the rate of
production, if commenced. These forward-looking statements entail
various risks and uncertainties that could cause actual results to
differ materially from those reflected in these forward-looking
statements. Such statements are based on current expectations, are
subject to a number of uncertainties and risks, and actual results
may differ materially from those contained in such statements.
These uncertainties and risks include, but are not limited to, the
strength of the Canadian economy; the price of gold; operational,
funding, and liquidity risks; the degree to which mineral
resource estimates are reflective of actual mineral resources; and
the degree to which factors which would make a mineral deposit
commercially viable are present; the risks and hazards associated
with underground operations. Risks and uncertainties about Kerr
Mines’ business are more fully discussed in the Company's
disclosure materials, including its annual information form and
MD&A, filed with the securities regulatory authorities in
Canada and available at www.sedar.com and readers are urged to read
these materials. Kerr Mines assumes no obligation to update any
forward-looking statement or to update the reasons why actual
results could differ from such statements unless required by
law. Neither TSX nor its Regulation Services Provider (as
that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this release and no
stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.