VANCOUVER, March 16 /CNW/ - Jazz Resources Inc. (JZR: TSX-V) would like to announce that as a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure.
Teddy Glacier Project:
The Company's January 20, 2010 news release disclosed that:
The Company's primary objective is to mill the high grade ore from its 2009 Teddy Glacier bulk sampling program in March, 2010. Positive cash flow from the sale of concentrate will allow the Company to move forward with its exploration strategy.
The Company's MD&A for the quarter ended December 31, 2009 stated:
At the present time the Company faces a funding shortfall as a result of spending approximately $360,000 on the Teddy Glacier property since June 30, 2009. The Company intends to fund this shortfall by milling and selling the bulk sample taken from the Teddy Glacier property in 2009.
The company retracts any positive economic projections and clarifies that it cannot project positive cash flow for the project or a profit from processing the 2009 bulk sample. Any net profits from processing the bulk sample will offset exploration expenses and the funding shortfall.
During the third quarter of 2009 the company mined approximately 2000 tonnes of material from the Big Showing on the Teddy Glacier Property under the direct supervision of J. T. Shearer, M.Sc., P.Geo.
Assay values of seven continuous chip samples across the entire width of the bulk sample stockpile having a length of 50 metres are shown below. These assays accurately reflect the metal content of the bulk sample:
Sample Name Type Wt Au Ag Cu Pb Zn
Kg g/mt ppm % % %
Stockpile No. 1 Rock 7.8 8.84 371.3 0.71 20.36 16.03
Stockpile No. 2 Rock 8.0 14.41 329.3 1.03 16.76 14.44
Stockpile No. 3 Rock 6.7 12.23 218.6 0.97 10.42 6.88
Stockpile No. 4 Rock 7.1 21.27 483.4 2.63 19.70 10.59
Stockpile No. 5 Rock 7.2 13.22 586.7 0.61 32.41 11.04
Stockpile No. 6 Rock 7.9 9.42 319.6 1.62 14.54 13.21
Stockpile No. 7 Rock 7.0 12.86 298.4 1.32 14.49 11.56
RE Stockpile No. 1 Repeat - 8.73 380.3 0.69 20.16 16.07
Blank iPL Blk iPL - than - - - -
OXI67 REF Std iPL - 1.82 - - - -
Average grade of these continuous chip samples of 13g/tonne gold, 372 g/tonne silver, 18.6% lead, 12.5% zinc and 1.2% Cu are generally comparable to previous insitu chip samples of the Big Showing with some variation in galena content which contains all the Pb and Ag. These samples were analyzed at International Plasma Labs Ltd. (Inspectorate) of Richmond, BC in September, 2009. Gold and Silver were assayed by Fire Assay/AAS finish.
This bulk sample has been stockpiled awaiting transport to a local milling facility.
Detailed discussions are underway with two local milling facilities on processing the bulk sample. Approximate processing fees are being negotiated.
Metallurgical work by G. Hawthorn, P.Eng. indicates that due to the general coarse grain size of the material that a two stage concentrate can be expected that recoveries of lead, zinc, gold and silver to be good, additional work needed to be undertaken to improve the separation of the lead and zinc into separate concentrates. Hawthorn performed another flotation test (Hawthorn, 2007b) with a high depressant addition into the Pb roughers and included a zinc cleaning stage. The lead concentrate assayed 75% Pb and the zinc concentrate assayed 56% Zn.
The Company does not have a current mineral resource or reserve on the Teddy Glacier Property. The use of the term "ore" in some of the Company's previous news releases was incorrect and is more accurately referred to as "high-grade mineralization".
The Company is encouraged with the results of the 2009 Bulk Samples Program which was proposed in the Company's prospectus (see sedar.com). A further bulk sample and diamond drill program is proposed for 2010.
The Company has removed a reference to "reserves" at the Spider Mine in the history section of its website, and is presently unable to state historical resources or reserves compliant with sections 2.4 and 3.4 of NI 43-101. The Spider Mine was brought into production in 1952 and continued operations until 1958. Total production to the end of 1958 was 371 kilograms of gold, 53,481 kilograms of silver, 85 tonnes of copper, 10,845 tonnes of lead, 11,519 tonnes of zinc, 60 tonnes of cadmium and 4 tonnes of antimony from 128,063 tonnes of ore with a recovery grade of 0.086 oz Au/ton, 12.2 oz Ag/ton, 8.6% Pb and 9.14% Zn. This vein was developed from surface to a depth of 200 metres. Mineralized material, of grades similar to what was mined previously, was intersected in drilling an additional depth of 70 metres below this level.
A technical report on the Spider mine was prepared by J. T. Shearer, M.Sc., P.Geo. dated April 2009, covering current assays of drillcore compared to previous assay results.
Also a technical report is being finalized by A. J. Beaton, P.Eng. and J. T. Shearer, M.Sc., P.Geo. covering mining methods, a cost estimate on the Spider Mine, and mineral resources. The company will announce any material results from this work when available.
J. T. Shearer, M.Sc., P.Geo. is the Qualified Person as defined by NI 43-101 who supervised the preparation of the technical material of this release.
On behalf of the Board of Directors,
Neither 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.
This press release contains forward-looking statements. All statements, other than statements of historical fact, constitute "forward-looking statements" and include any information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including the Company's strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance.
All such forward-looking information and statements are based on certain assumptions and analyses made by the Company's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: risks related to the exploration and potential development of the Company's projects, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, as well as those factors discussed in the sections relating to risk factors of the Company set out in certain of the Company's disclosure documents filed on SEDAR.
There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.
SOURCE Jazz Resources Inc.
For further information: For further information: JAZZ RESOURCES INC., 2394 W. Broadway, Vancouver, BC, V6K 2E5, Telephone: (604) 733-4830, Fax: (604) 736-8584, Email: email@example.com