TORONTO, May 01, 2019 (GLOBE NEWSWIRE) -- Kerr Mines Inc. (TSX: KER, OTC: KERMF, (“Kerr” or the “Company”) is pleased to announce further 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 18-21-06, an exploration step-out hole returned an interval of 16.8 meters at 40.0 g/t gold, including 3 meters of 98.3 g/t gold further indicating the zone is significantly of higher grade and thickness than initially anticipated with a total effective mining width of 17.9 meters;
- Drill hole 18-21-04, an exploration step-out hole returned an interval of 10.7 meters at 17.5 g/t gold, including 6.1 meters of 29.5 g/t gold with a total effective mining width of 12 meters;
- Continued to establish 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;
- 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 zones of the Copperstone mine.
Giulio T. Bonifacio, Chief Executive Officer stated: “We continue to be extremely pleased with the drilling results to date which further expand our current resource while extending mine life at the Copperstone mine. Our exploration step out holes returned significant values and are indicating higher grade and thickness than initially anticipated. We are looking forward to receiving further drill results and currently planning for follow up drilling for step-out holes 18-21-06 and 18-21-04.”
|Hole ID||From||To||Interval Length||Gold*||True Thickness**||Effective Mining Width***|
|* 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.|
18-05E-01: Azimuth 244, inclination -65, total length 39.6 meters. This intercept is in an existing Measured and Indicated resource zone and intercepted thicker-than-expected mineralization on the edge of an existing designed mining stope. It is expected to lead to an expansion of reserves in the immediate area.
18-05-06: Azimuth 215, inclination -15, total length 65.5 meters. This intercept is in an existing Indicated resource zone and confirmed the expected grade but at greater thickness than is currently-modeled. The intercept is approximately 15.2 meters up-dip of designed stopes in the same resource zone and is expected to lead to an expansion of resources in the immediate area.
18-05E-07: Azimuth 244, inclination -45, total length 30.6 meters. This drill hole intercepted mineralization outside of an existing Inferred zone and has the potential to support a new modeled domain. This is supported by a nearby, historic drill hole. Historic hole CS-373 returned 3.0 meters @ 4.21 g/t , 8.0 meters away in the up-dip direction. This potential new domain outlined by these intercepts appears to be open along strike for 30 meters or more and warrants further step-out and definition drilling.
18-08-01: Azimuth 360, inclination -90, total length 30.5 meters. This hole intercepted existing Indicated resource in a currently defined resource zone and in a gap between designed mining stope panels. It is anticipated that this intercept will allow for continuity between the panels.
18-01A-04: Azimuth 247, inclination +72, total length 97.5 meters. This intercept is 30 meters beyond the edge of the existing Inferred resources and is expected to extend the existing resource domain up-dip. This intercept demonstrates the potential to further extend this domain to the west of existing modeled resources.
18-21-04: Azimuth 006, inclination -32, total length 94.5 meters. This hole returned a robust exploration step-out of an Inferred resource zone. Together with drill hole 18-21-06, this potentially extends Inferred mineralization down-dip approximately 76 meters from the edge of the previously-modeled resource zone. This resource zone is potentially open for expansion another 61 meters down-dip. Additional follow-up drilling is currently planned.
18-21-06: Azimuth 350, inclination -27, total length 82.3 meters. Similar to adjacent drill hole 18-21-04 described above (15 meters away) , this hole returned a robust exploration step-out of an Inferred resource zone and may serve to the extend the Inferred mineralized zone 76 meters down-dip from the previously-modeled edge of Inferred resource. This hole intercepted an area of high-grade replacement mineralization in metasedimentary rocks which is thicker and higher in grade than in adjacent holes, showing potential for the discovery of additional high-grade replacement bodies in this area. Additional follow-up drilling is currently planned.
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.
For further information please visit the Kerr Mines website (www.kerrmines.com)
KERR MINES INC.
Giulio T. Bonifacio, Chief Executive Officer & Director
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:
Chief Executive Officer & Director
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.