Blind Creek Resources Signs Agreement to Purchase the AB Zinc Property, N.W.T.

TSX Venture Exchange
Trading Symbol: "BCK"

VANCOUVER, July 27, 2017 /CNW/ - Blind Creek Resources Ltd. ("Blind Creek" or the "Company") (TSX-V: "BCK") and Eagle Plains Resources Ltd. ("Eagle Plains") (TSX-V: "EPL") have executed a formal agreement whereby Blind Creek has the exclusive right to purchase a 100% undivided interest in the 3000 ha AB Zinc Property (the "Property") located 263 kilometres west of Norman Wells, N.W.T. Highly prospective for Mississippi Valley-Type ("MVT") Lead-Zinc deposition, previous exploration at the AB Property has located coincident geological, geochemical and geophysical features that may represent large buried mineralized systems. 

Under the terms of the agreement Blind Creek can acquire a 100% interest in the Property, subject only to the Eagle Plains NSR, by issuing to Eagle Plains 1,000,000 shares on TSX Venture Exchange acceptance of this Purchase and Sale Agreement, and a further 1,000,000 shares (for a total of 2,000,000 shares) on or before 30 months after Exchange acceptance. In the event that the Property is placed into Commercial Production, Eagle Plains shall be entitled to a royalty of 2% of net smelter returns, with a 1% buyback to 1% upon payment of $CDN1,000,000 to Eagle Plains, and a second option to purchase the remaining 1% NSR upon payment of $CDN 7,000,000.

The AB Property acquisition fully compliments Blind Creek's focus on developing a quality portfolio of 100%-owned properties with geological characteristics and signatures supportive for the potential discovery and development of large tonnage, high-grade Lead-Zinc-Silver deposits.  The Company is currently formulating plans to advance the AB property and drill-test existing I.P. geophysical anomalies for MVT Lead-Zinc mineralization. 

Mississippi Valley-Type Pb-Zn Mineralization Confirmed at AB Property

Historic work by Welcome North Mines first identified carbonate hosted Zinc-Lead mineralization on the AB Property in 1974. Eagle Plains Resources work between 2005-2008 was driven by the carbonate-hosted Mississippi Valley-Type ("MVT") Zinc-Lead deposit model, with notable northern Canada MVT deposit-type examples that include the Pine Point, Nanisivik and Polaris mines. Eagle Plains successfully improved the geological and geochemical understanding of the AB Property, adding to the number of known mineralization occurrences and locating highly prospective geophysical IP anomalies that could potentially represent large buried mineralization systems.

Welcome North Exploration Work (1974-1977)

Carbonate-hosted Lead-Zinc mineralization at the AB Property was first identified in 1974 by Welcome North Mines as part of the Arctic Red Joint Venture. Welcome North undertook ground based geological exploration between 1974-1977, including soil geochemistry, rock sampling, geological mapping, trenching and a total of 9 short diamond drill holes. Two separate high grade stratabound mineralized horizons were identified at the AB-C area. Blast trenching of the AB-C mineralization in 1976 indicated that the lower horizon was continuous for 225 feet (69m) between trenches. Assay results from grab and trench samples returned values from trace to 30.9% Zinc. Grab samples from the trenches ranged from 5.8% Zinc to 30.9% Zinc. Chip samples collected from the trenches returned values including: 




TRENCH

Chip Distance (metres)

Zinc (%)

1

Upper 1.5m vertical

5.76

3

1.1m vertical

11.60

4

Upper 1.8m vertical

5.88

7

Lower 1.5m vertical

14.40

8

2.7m horizontal

12.96

9

1.5m horizontal

12.56

9

1.2m horizontal

10.52

10

Upper 1.5m vertical

11.88

10

Mid 0.9m vertical

10.64

10

Lower 1.5m vertical

5.80

Diamond drilling results in the area of the AB-C trenches indicated that all facies of the Sekwi dolomites intersected were mineralized. (Arctic Red Joint Venture Progress Report 76-3 - Oct.1976)

Neither Eagle Plains nor Blind Creek has been able to independently verify the methodology and results from historical work programs within the property boundaries. However, management of both Companies believe that the historical work programs were conducted in a professional manner and the quality of data and information produced from them are relevant.

Eagle Plains Exploration Programs (2005-2008)

Eagle Plains initiated tenure acquisition in the AB area in 2005, following a reconnaissance field program which verified the potential for a Mississippi Valley Type (MVT) target.

The most recent work on the property was completed by Eagle Plains in 2008. Mapping, prospecting, geochemical surveys and ground-based geophysics were conducted resulting in the discovery of 14 new mineralized occurrences, most notably the Link and Twist.  Grid soil geochemistry located several multi-element (Pb-Zn-Fe) anomalous zones, some of which remain open. 

An Induced Polarization geophysical survey located two extensive anomalies at the AB-C, with one appearing to be stratigraphically controlled over a 500 m strike length. The other is a 1 km long structurally controlled zone between the AB-C Zone and the Link Showing. The AB-C Zone is interpreted to be an ideal IP target as it is clearly associated with an upper marcasite "cap" consisting of a barite + marcasite +/- sphalerite stockwork hosted in the ooid member of the Sekwi Formation.

AB Property Geology

The dominant regional lithologies are thick-bedded limestone and dolomite beds belonging to the Cambrian Franklin Mountain and Sekwi Formations which overlie similar lithologies in the Proterozoic to Cambrian Backbone Ranges Formation. The Sekwi Formation contains skeletal, oolitic, recrystallized and silty dolomite members. All four members of the Sekwi Formation are mineralized, but the ooid layer appears from geochemical and geophysical analysis to be preferentially mineralized. The Franklin Mountain Formation also contains recrystallized, oolitic and silty dolostone members and mineralization is confined to the oolitic and skeletal members.

Two large E-W trending faults, 2 km apart, occur on the property. The more northern fault located near the center of the property appears to be an important conduit for mineralizing fluids.  Many of the mineral showings are located near or on smaller faults splaying off and bounded by the two.

Technical aspects of this news release have been reviewed by Mr. C.C. (Chuck) Downie, P.Geo., Vice President Exploration for Eagle Plains Resources Ltd. and a Qualified Person (Q.P.) as defined by National Instrument 43-101. 

About Blind Creek Resources Ltd.

Blind Creek is a Vancouver-based junior resource company focused on zinc-lead-silver, and more recently gold and silver exploration and development in British Columbia, Yukon and the Northwest Territories.  The Company's flagship property is the Blende Project in north-central Yukon, one of the largest undeveloped zinc-lead-silver deposits in Western Canada.  More recently the company has acquired a 100% interest in the historic and fully-permitted Engineer Gold Mine, situated 32 km southwest of Atlin, B.C.  

For additional information please visit the company website www.blindcreekresources.com.

On behalf of the Board of Directors,                       

Mr. Brian P. Fowler, P.Geo.
President
(604) 617-8191
bpfowler01@gmail.com

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Blind Creek Resources Ltd. which may cause actual results, performance or achievements of Blind Creek Resources Ltd to be materially different from the results, performance or expectation implied by these forward looking statements. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. 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.

SOURCE Blind Creek Resources Ltd.

For further information: Mr. Brook Bellian, (778) 883-7869; Mr. Nelson Da Silva, (604) 722-0041, Corporate Communications

RELATED LINKS
www.BlindCreekResources.com

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