Trading Symbol: FTR- TSX: V
VANCOUVER, Jan. 20 /CNW/ - Firesteel Resources Inc. (TSXV:FTR)
("Firesteel" or the "Company") is pleased to announce the results of
the exploration program carried out on its ROK - Coyote mineral
property (the "Property") during 2009 (the "Exploration Program"). The
technical assessment report for this Exploration Program has only
recently been released to the Company as part of the settlement of a
law suit which has now been dismissed by mutual consent of both parties
(News release of October 25, 2010). Firesteel recently granted an
option to Lions Gate Metals Inc. (news release of January 12, 2011) to
earn an interest in the Property and thereafter intends to form a joint
venture to further explore it.
The 6,891 hectare Property is located approximately 195 kilometres north
of Stewart and 75 kilometres south of Dease Lake, immediately east of
Hwy. 37 and northwest of Imperial Metals Corp., Red Chris copper-gold
porphyry deposit. The Property hosts copper-gold ± molybdenum porphyry
style mineralization within a hydrothermal sulphide system measuring at
least 18 square kilometers, covering the top, south and eastern slopes
of Ehahcezetle Mountain in the Stikine Arch region of north-western
British Columbia. Previous exploration work has been concentrated in
the northern part of the Property (the "Main Zone") which has returned
36 meters grading 0.53% copper ("Cu") and 0.62 grams per tonne gold
("g/t Au") in Trench 2a and 38.4 meters grading 1.32% Cu and 1.54 g/t
Au in diamond drill hole 90-3
The Exploration Program was designed to carry out initial ground testing
including induced polarization ("lP") and ground magnetic geophysical
surveying along with soil and rock sampling over previously cut grid
lines covering a relatively unexplored, airborne magnetic high - Th/k
low anomaly located in the south eastern quadrant of the Property
called the Coyote showing (the "Coyote Grid or "Coyote Showing").The
Coyote Grid is located about 6,000 meters southwest of the Main Zone.
In October 2009, 23.5 line kilometers (on eight grid lines) of IP and
ground magnetic surveys were completed over the Coyote Grid. The
geophysical survey was conducted along lines orientated at 30°, roughly
perpendicular to an airborne magnetic anomaly identified in 2005. The
ground survey confirmed a strong, northwest-southeast trending magnetic
high in the lower half of the Coyote Grid area that remains open along
strike to the west and east. In the northeast portion of the Coyote
Grid a significant magnetic low strikes to the east.
The IP survey was carried out using a pole dipole array with "a"
(dipole) spacing of 50 meters and "n" separations of 1 to 6. Two
strong, northwest-southeast trending chargeability anomalies with
coincident resistivity highs were identified within the Coyote Grid.
They remain open along strike and to depth. The southern chargeability
anomaly correlates well with a magnetic high while the more northern
chargeability anomaly corresponds to the transition between the
magnetic low in the northeast and moderate magnetic values flanking the
high to the south.
Soil and Rock Sampling and Geochemistry
A total of 378 soil samples were collected from eight cut grid lines and
3500 meters of existing roads in and around the Coyote Grid including a
portion of the access road to the Red Chris project.
The sampling identified a coincident gold and molybdenum soil anomaly
over a significant portion of the northern half of the Coyote Grid,
over and around the Coyote Showing and along most of the Red Chris
access road. Copper values within the same area are elevated but more
erratic, although they show a strong correlation with elevated gold
values along the Red Chris road. Within the Coyote Grid the
gold-molybdenum soil anomaly is underlain by a strong chargeability -
resistivity high coincident with a moderate magnetic response. The
geophysical anomalies remain open to the east and south of the Coyote
Showing. In the southwest corner of the Coyote Grid, elevated but only
weakly coincident gold and molybdenum values correlate with
chargeability, resistivity and ground magnetic highs.
A total of 136 rock samples were taken from iron-oxide stained outcrops
along the Ealue Lake and Red Chris camp access road. Aside from a
single grab, all were chip samples varying from 2 to 10 meters in
length. Individual sample results range up to 1585 ppb gold, 2024 ppm
copper and 812.6 ppm molybdenum.
More detailed rock chip sampling near the Coyote Showing, where
underlying chargeability, resistivity and magnetic response are all
low, returned weighted sample average grades up to 317 ppb gold and
254.6 ppm molybdenum over 12 meters and 469 ppm copper over 9 meters
(shown in the following Table 1).
Table 1: Weighted Average Au, Cu and Mo Grades From Rock Chip
Sampling of Outcrops on and Near the Coyote Grid
Weighted Average Grade
Interpretation and Conclusions
The 2009 ground geophysical surveys carried out over the Coyote Grid
located and more accurately defined the eastern portion of the magnetic
anomaly first identified in the 2005 airborne survey. They also
demonstrated the airborne, Th/K low - magnetic high is coincident with
an open-ended, similar orientated chargeability and resistivity high
and gold-molybdenum soil anomaly. The coincident association of
magnetic, chargeability and resistivity highs is typical of many
copper-gold porphyry prospects occurring in intrusive rocks throughout
BC and is reminiscent of the Main Zone located in the northern part of
the Property, 6,000 meters northeast of the Coyote Grid.
In order to establish the size of the newly identified Coyote Showing
target and determine if it is a separate zone or a continuation of the
Main Zone, significant expansion of the Coyote Grid and soil and
geophysical surveys is recommended. Follow-up drill testing of
favourable coincident anomalies within the expanded grid should follow.
Diamond drill holes should test at least 150 meters below surface.
In announcing these results Walter Wakula, Chairman of Firesteel stated:
"This program demonstrates the discovery of a new zone with anomalies
that are similar to what one finds below porphyry copper-gold deposits
and similar to what is known elsewhere on the Property at the Main
Zone. We are encouraged that there are now at least two separate areas
on the Property separated by 6,000 meters that are target areas to
explore for copper-gold mineralization and that the Coyote Grid and the
Main Zone may connect into one very large target area."
David T. Mehner, MSc., P. Geo. is a Qualified Person under National
Instrument 43-101, was the author of the technical assessment report
for the exploration program described in this news release and has
reviewed and approved the technical content in this news release. He is
a consulting geologist for and is independent of Firesteel and
currently holds rights to a portion of a net smelter returns royalty
over a portion of the Property.
Firesteel is a junior minerals exploration company which explores for
and develops quality precious and base metal prospects in the resource
rich Stikine Arch area of British Columbia, and in the NWT and Mexico.
The Company has been exploring its Copper Creek and ROK - Coyote
discovery properties in northern British Columbia with strong showings
of copper and gold mineralization. Firesteel maintains its interests in
the oil and gas business through its 15 percent shareholding in
Blacksteel Energy Inc. (TSXV:BEY).
ON BEHALF OF THE BOARD OF DIRECTORS OF
FIRESTEEL RESOURCES INC.
Walter Wakula, MBA
Chairman of the Board
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.
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements which include, but
are not limited to: statements regarding the Company's expectations for
exploration prospects, follow-up drill testing of favourable coincident
anomalies, that the Coyote Grid and the Main Zone may connect into one
very large target area, as well as operations plans, outlook,
expectations, opinions, forecasts, projections, guidance or other
statements that are not statements of fact. Although Firesteel
believes that the expectations reflected in such forward-looking
statements are reasonable, it cannot give any assurance that such
expectations will prove to be correct. Results of the Company may be
affected by a variety of variables and risks associated with mineral
exploration such as imprecision of resource and reserve estimates,
environmental risks, competition, ability to access sufficient debt and
equity capital from internal and external sources and ability to
generate sufficient cash flow from operations to meet its current and
future obligations; as a consequence, actual results could differ
materially from those anticipated or implied in the forward-looking
The Company's forward-looking statements are expressly qualified in
their entirety by this cautionary statement and are made as of the date
of this news release. Unless otherwise required by applicable
securities laws, the Company does not intend nor does it undertake any
obligation to update or review any forward-looking statements to
reflect subsequent information, event, results or circumstances or
For further information:
|For additional information, please contact us at ||1-604-669-5768|