Yahoo Finance Firesteel Announces the Withdrawal of OZ Minerals from the ROK Coyote Option Agreement and Releases 2014 Drill Program Results
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Vancouver, British Columbia / ACCESSWIRE / November 14, 2014 / Firesteel Resources Inc. ("Firesteel" or the "Company") (TSXV:FTR.V - News) today announced that it had received notification from OZ Exploration Pty. Ltd. ("OZ Minerals"), (a wholly owned subsidiary of OZ Minerals Limited [ASX:OZL]), that it is withdrawing from the Option Agreement concluded on February 3rd 2014 (the "Agreement") on the ROK Coyote property (the "Property") in northwestern British Columbia.
OZ Minerals has indicated its reasons for withdrawal, are primarily that initial drill results were below expectations and increased competition for exploration dollars, to be spent on other exploration activities within OZ Minerals' portfolio.
Michael Hepworth, President and CEO of Firesteel commented; "We are obviously disappointed with OZ Minerals' decision to withdraw. As part of the withdrawal process we discussed with OZ Minerals, the work done and what they believed should be done in future on the property. OZ Minerals indicated that in addition to the targets drilled in 2013 and 2014, they identified several interesting targets that they did not advance, but believe still hold promise and should be drilled to determine what is there. Several copper showings were also uncovered in the area of the Ealue Lake Road. These showings had corresponding chargeability highs but were not tested during OZ Minerals' time on the property. In addition there are several structural zones on the property associated with copper and gold mineralization that require follow up testing."
Details of the 2014 Exploration Program
A total of 44.85 line-kilometres of induces polarization was completed on the project, with surveys centred on the Coyote and Klappan prospects. The IP survey at Coyote (38.77 line-kilometres) delineated three chargeability highs with peak magnitudes in excess of 24mv/V (and up to 30mV/V). Two of these trend NW and have strike lengths of >1,500 metres and >1,200 metres. Magnetic data over the same area also exhibit strong NW structural trends.
Two drill holes targeting alkalic porphyry Cu-Au mineralisation were subsequently completed at the Coyote prospect, for a total of 842.15 metres.
Drill hole DD14RK005 was designed to test the south-western portion of a strong chargeability feature to the immediate south west of the strongest magnetic high (Fig 1). The upper portion of this hole intersected weakly hydrothermally altered crystal tuff before passing into a sequence of pyroclastic rocks and intercalated volcanogenic siltstone, from 220 metre downhole depth. The hole was terminated at 359.05 metres. Patchy gold mineralisation was encountered in the upper unit, the best 3 metre intercept returning 0.99g/t Au from 142 metres.
Hole DD14RK006 targeted the interpreted extension of the same chargeability anomaly where it coincides with a discreet, high amplitude, northwest trending magnetic high (Fig 1). From 190.1 metres the hole entered equigranular monzonite and other possible strongly altered intrusive rocks, before encountering a 30 metre wide structural zone at 353 metres. From 383 metres to end of hole at 483.1 metres there is a package of dark coloured, intensely chlorite-altered volcanic rocks intruded by a series of weakly mineralised monzonite dykes. Anomalous copper and gold values in the lower part of the hole correspond with chalcopyrite-pyrite mineralisation which occurs as disseminations associated with chlorite and magnetite, including 109.1 m grading 0.11 g/t Au and 0.05% Cu (see Table 1). Veining in hole DD14RK006 is more prevalent than in 005 and is dominated by siderite. Pyrite is abundant in the top part of DD14RK006 and explains the shallow chargeability anomaly (Fig 2).
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Figure 1: Location of drill holes at Coyote Prospect and Total Magnetic Intensity image.
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Figure 2: Drill section for hole DD14RK006, showing histograms for Cu (RHS) and Au (LHS), and chargeability image.
Drilling results from hole DD14RK006 potentially indicate close proximity to a structurally controlled, alkalic porphyry system, with the bottom part of the hole constituting a "near miss".
Results from the Coyote drilling are summarized in Table 1:
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The scientific and technical information in this news release has been reviewed by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101. The QP has approved the scientific and technical content of the news release.
About the Company
Firesteel is an exploration-stage junior mining company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and stable jurisdictions around the world.
Firesteel currently has two highly prospective properties in British Colombia.
The Sheslay property is currently under option to Prosper Gold. (TSX-V:PGX.V - News). Under the terms of this agreement, Prosper has the right to acquire up to 80% of the property in return for spending $5,000,000 on exploration and payment of $1,000,000 in cash and 1,000,000 Prosper Gold shares to Firesteel.
The ROK Coyote property that was until 10th November 2014, under option to OZ Exploration, a wholly owned subsidiary of OZ Minerals (ASX:OZL.AX - News).
Highlights of the ROK Coyote property include:
- 6,900 Ha of highly prospective large tonnage targets with known Cu-Au results
- Historical drilling highlights - 38.37 m @ 1.32% Cu, 1.54 g/t Au
- Adjacent to Red Chris Mine development with P&P Reserves of 302 Mt at 0.365 Cu and 0.27 g/t Au (a 28 year mine life at 30,000 tpd) Imperial Metals
The Company's management and board of directors have extensive experience in exploration, operations, business and corporate finance.
The Company's objective is to enhance shareholder value as a prospect generator by identifying and securing early-stage exploration opportunities and developing them to more advanced stages with the help of joint venture partners.
For a detailed overview of Firesteel Resources Inc. please visit www.FiresteelResources.com
For further information, please contact:
Michael Hepworth
Firesteel Resources Inc.
President and Chief Executive Officer
(647) 725-3793
mhepworth@firesteelresources.com
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Neither the 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
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", 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". While the Company has based these forward-looking statements on its expectations about future events, as at the date those statements were prepared, the statements are not a guarantee of the Company's future performance. 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.
The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
SOURCE: Firesteel Resources Inc.
