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Kerr Mines Announces High-Grade Gold Channel Sampling Results

TORONTO, Oct. 29, 2019 (GLOBE NEWSWIRE) -- Kerr Mines Inc. (TSX: KER, OTC: KERMF), (“Kerr” or the “Company”), is pleased to provide an update of recent project developments including high-grade chip channel sampling results from its 100% owned Copperstone Mine gold project located in Arizona, USA.

Underground Chip-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 has commenced a chip-channel rock sampling program in underground areas proximal to the currently defined resource. Using the extensive underground access totalling over 4,300 meters of development drifts, Kerr geologists have targeted several areas where the current resource is exposed in the workings. As the sampling program continues, further results will be announced as they become available.

In locations proximal to the existing gold resource, chip-channel samples returned high grade gold values. Results are as follows and as seen in Figure 1:

650 elevation 690 elevation*
9.14 grams gold/tonne (“g/t”) over 0.61 meters (“m”) 4.18 g/t over 0.91 m
3.49 g/t over 0.91 m 16.26 g/t over 1.22 m
23.21 g/t over 0.76 m  6.30 g/t over 0.91 m
7.87 g/t over 1.22 m 20.91 g/t over 1.22 m
46.27 g/t over 0.76 m  
15.06 g/t over 0.76 m 730 elevation
56.41 g/t over 0.61 m 7.43 g/t over 0.76 m
16.94 g/t over 1.52 m 8.21 g/t over 1.22 m
14.17 g/t over 0.91 m 6.47 g/t over 0.91 m
24.06 g/t over 0.61 m 19.61 g/t over 1.22 m
53.53 g/t over 0.91 m  
48.40 g/t over 0.46 m  

*Including one sample located 3.44 meters away from the existing resource which returned 1.22 m at 4.31 g/t. This sample warrants further investigation by way of sampling and drilling to determine if it represents a potential expansion of the existing resource either by an expansion of the nearby domain or the beginnings of a new domain in the Copperstone Zone.

Giulio T. Bonifacio, Chief Executive Officer stated: “We are very pleased with our initial results which have returned values well above the deposit average of 7.33 g/t. We look forward to the next phase of the program which will utilize a rock saw enabling a greater volume of sample material. Upon completion of this next phase of our sampling program results will be incorporated into the final planning of Phase 2 of our resource expansion drilling program and also the detailed Mine Plan as we move to production.”

Figure 1 is available at

Permitting Update

On February 5, 2019 the Company announced the Arizona Department of Environmental Quality (“ADEQ”) has issued approval for the modification of the existing Air Permit (“Air Permit”) governing air quality. On September 19, 2019 the Company announced the ADEQ has issued approval for the modification of the existing Aquifer Protection Permit (“Water Permit”). The Water Permit is effective for the life of mine and the Air Permit is valid for five years. The final step in the permitting process was contingent on receipt of both the modified air and water permits and requires modification to the Federal Bureau of Land Management (“BLM”) Mine Plan of Operations (“MPO”). 

The MPO modifications have been accepted by the BLM and the associated Environmental Assessment for the project is currently under review by the Federal agencies. The formal intra-agency notification of approval process is now underway with issuance of the amended MPO expected in Q4-2019.

Once the MPO modification is approved the positive project implications are as follows:

  • Increase of gold ore production from the current allowable limit of 450 tons per day to 600 tons per day;
  • Use of cyanide for recovery of gold from ore using captive steel tanks located in the ore processing facility;
  • Storage of stabilized tailings produced from the ore processing facility; and,
  • Construction and use of a water evaporation and infiltration basin to be used to recirculate back into the underground mine.

All other permits required for mine operations and gold production are in hand and do not require further modification.

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. 

Health, Safety and Environmental Excellence

For the second consecutive year, Kerr has been awarded the Certificate of Achievement in Safety Award by the United States Department of Labor, Mine Safety and Health Administration. This recent award is for the year 2018 and is given to recognize the achievement of having no lost-time injuries for the year at the Copperstone Mine located in Arizona, USA.

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 (

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 Florin Analytical Services (“FAS”) of Reno, Nevada. All intervals of channels are being assayed and samples are securely stored for shipment to FAS, 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 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:
Giulio Bonifacio
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 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.