TORONTO, Nov. 27, 2019 (GLOBE NEWSWIRE) -- Kerr Mines Inc. (TSX: KER, OTC: KERMF), (“Kerr” or the “Company”), is pleased to announce high-grade results from channel sampling along existing underground workings at its 100% owned Copperstone Mine gold project located in Arizona, USA.
Underground Channel Sampling
Following up on the recently completed first phase of successful drilling and for purposes of planning the next phase of drilling while also enhancing the current gold resource model, Kerr successfully concluded this phase of channel sampling in underground areas proximal to the currently defined resource. Using the extensive underground access totalling over 4,300 meters of development drifts, Kerr has targeted several areas where the current resource is exposed in the workings.
In locations proximal to the existing gold resource and representing several locations where two different mineral domains are exposed, saw-channel samples returned high grade gold values. Units are grams gold per tonne (“g/t Au”) and meters (“m”).
Highlights of average gold grade over total channel sample length are below:
- 13.3 g/t Au over 2.5 m (650, 1-4)
- 24.2 g/t Au over 2.6 m (650, 5-8)
- 4.0 g/t Au over 2.5m (650, 9-13)
- 7.7 g/t Au over 1.2 m (650, 14-16)
- 10.0 g/t Au over 3.3 m (690, 22-27)
- 3.6 g/t Au over 2.9 m (730 NE, 28-34)
- 10.9 g/t Au over 1.8 m (730 NE, 35-38)
Martin Kostuik, President commented, “Sampling results display both higher than average grades and expected continuity. Overall these results continue to support our confidence in the orebody and our ability to deliver strong cash flows when construction-related activities and underground mining commence next year. We look forward to the continuation of positive news regarding project advancement in the coming months.”
This phase of channel sampling targeted areas of underground development where resource domains exhibited exposure in the walls of the openings. Most exposures in Table 1 below do not intersect the domain in a location where the full mineralized zone was fully exposed from Footwall (“FW”) to Hangingwall (“HW”). However, the information provided by the channel sampling exhibits expected gold grade, rock type and alteration and provides further confidence in the resource estimate in general. Figure 1 below is a view of the underground workings and demonstrates the portion of each North West striking domain which is immediately visible in the workings. The figure does not depict the full extent, up or down dip, of the entire domains.
Table 1: Underground Channel Sample Assays
|Model Estimated Grade |
|22||5.1||0.69||690 Decline||CUVND5||FW material||47.0||8.3|
|23||9.6||0.69||690 Decline||CUVND5||mineralized domain|
|24||0.4||0.69||690 Decline||CUVND5||mineralized domain|
|25||0.0||0.54||690 Decline||CUVND5||mineralized domain||1.6|
|26||0.0||0.69||690 Decline||CUVND5||mineralized domain|
|27||39.7||0.77||690 Decline||CUVND5||mineralized domain2|
|28||25.5||0.22||730 NE||CUVND||mineralized domain||9.6||7.6|
|29||5.9||0.40||730 NE||CUVND||mineralized domain|
|31||2.8||0.68||730 NE||CUVND||mineralized domain|
|32||0.2||0.71||730 NE||CUVND||mineralized domain||5.3|
|33||0.2||0.55||730 NE||CUVND||mineralized domain|
|34||0.9||0.34||730 NE||CUVND||HW material|
|35||19.4||0.31||730 NE||CUVND||mineralized domain||9.6||7.6|
|36||12.0||0.46||730 NE||CUVND||mineralized domain|
|37||14.1||0.52||730 NE||CUVND||mineralized domain||5.3|
|38||0.7||0.46||730 NE||CUVND||HW material|
*sample grades are reported as un-capped values
**Source: NI 43-101 Technical Report "Preliminary Feasibility Report Copperstone Project, April 11, 2018"
1 channel 14-16 immediately parallel to channel 9-13
2 sample 27 immediately parallel to sample 24
Figure 1: Plan View of Current Underground Access and Sampling Areas
Kerr has received both the Aquifer Protection and Air Quality permit modifications, as previously announced and is continuing to advance the modifications to the Federal Mine Plan of Operations. This process remains on schedule and is expected to conclude in December 2019.
Seeking modifications of existing state and federal permits was part of the strategic value-enhancing process undertaken by management to restart the Copperstone gold mine under improved operating conditions and is expected to further improve project economics.
Annual General Meeting of Shareholders
The Company has received approval to extend the date by which it is required to hold its Annual General Meeting of Shareholders (“AGM”) to February 6, 2020.
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 located in mining-friendly Arizona.
For further information please visit the Kerr Mines website (www.kerrmines.com)
The technical information in this news release has been reviewed and approved by Michael R. Smith, SME Registered Member (Geology), who is a “Qualified Person” as defined by NI 43-101.
Quality Assurance and Quality Control Statement
Procedures have been implemented to assure Quality Assurance Quality Control (QAQC) of sample assaying being done at American Laboratory Services (“ALS”). All intervals of channels 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 10th sample in sequence and results are graphed to assure acceptable results, resulting in high confidence of the sample assay results. As the channel sampling advances, additional QAQC measures will be implemented including selected duplicate and check assaying on pulps and coarse rejects at a second accredited assay laboratory. All results will be analyzed for consistency.
For further information contact:
Chief Executive Officer
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements, including current expectations on future exploration plans, the timing of the commencement of production and the rate of production, if commenced, receipt of permit approvals, potential changes to the mineral processing method set out in the Copperstone PFS and anticipated changes to project capital costs and overall project economics. 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; reliance on third parties, the degree to which mineral resource and reserve estimates are reflective of actual mineral resources and reserves; 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.
While management believes that the results of its project optimization efforts and proposed changes to the project design are likely to improve the overall economics of the Copperstone Project previously disclosed in the Copperstone PFS, there can be no certainty that the actual effects will be as stated. The Company has not completed a new economic study in accordance with applicable law to evaluate the effect of the proposed changes and, as such, readers should not place undue reliance on these statements as the actual results may be significantly less favourable than expected.
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.