Skarn Magnetite-Copper-Gold-Silver Zones: New Assays, Results Prompt Drill Program Expansion
ARMSTRONG, BC, Dec. 16 /CNW/ - GWR Resources Inc. (the "Company" or "GWR") (TSX Venture: GWQ) is pleased to report assay results from one additional hole testing the Aurizon South Supergold Zone and five holes testing the Spout Lake Skarn Zones, on the large Lac La Hache porphyry-Au-Cu-Ag and Skarn-Cu-Magnetite-Au-Ag Project in central British Columbia. The new results continue to validate the predictability of our geological models, in both settings.
Aurizon South Supergold-Cu-Ag Zone
The Aurizon South SuperGold Zone is a near-vertical, 060-degree trending structure, characterized by potassically altered monzonite cut by hydrothermal breccia containing multigram gold values with copper and silver. The Zone varies in true width from 5 to 25 meters and has been drill-intersected over a 170 meters strike length and to a depth of 600 meters vertically below surface, remaining open in both directions and to depth. (See more images at www.gwrresources.com) Our recently completed Mobile Metal Ion soil geochemical survey shows a strong gold trend over the Zone.
DDH AZS10-26 was drilled to intersect the structure approximately 450 meters below surface, 50 meters southwest of mineralization previously intersected in DDH AZS09-15 (2.47 gpt Au/26 meters, including 4.9 gpt Au/10 meters, including 12.2 gpt Au/2 meters) and approximately 150 meters below DDH AZS08-07 (6.3 gpt Au/14 meters, 15.5 gpt Au/6 meters, 1.6 % Cu/12 meters, 7 gpt Ag/16 meters). DDH 10-26 was collared 70 m NW of DDH AZS10-23 at -70 degree dip, and has successfully intersected the structure, with grades up to 5.25 gpt Au, 1.23 % Cu and 2.9 gpt Ag, as tabulated below.
|Hole||NAD 83 Zone 10||Direction||Dip||EOH||Cu (%)|| Au
Results are encouraging, indicating the structure is predictable and continues to produce multigram gold assays over variable true widths. The very high grades previously intersected (15 gpt to 26 gpt Au) appear to form plunging shoots or zones within the structure, requiring further delineation. The Company believes the high gold grades within the structure may support extraction by underground mining methods, and intends to continue systematic testing.
Spout Lake Magnetite-Copper-Gold-Silver Skarn Zones
As previously reported, this year GWR launched an aggressive exploration program on the Spout Lake Skarn Zones, located in the northwest corner of the Property. Historical drilling had defined a non-43-101 compliant resource for just part of one of several skarn zones in 1993 (North Zone, 595,113 tonnes grading 1.8% Cu, 0.12 gpt Au, 51% magnetite). Subsequent drilling in 2005 extended the zone an additional 100 meters deeper, to approximately 300 meters below surface, and it is still open to depth.
Our recent high-resolution ground magnetometer survey effectively maps the distribution of magnetite in the ground, providing direct exploration guidance. The magnetic patterns indicate the North Zone extends along strike beyond the original estimates, and that several additional magnetite-rich zones are apparent elsewhere. Bedrock sampling (see November 23 News Release, describing grab samples with massive magnetite, disseminated or massive chalcopyrite, strong malachite and azurite, assay values up to 0.53 gpt Au, 3.05 % Cu, 14.8 gpt Ag and 66 % Fe) has confirmed that high copper-magnetite-gold-silver values strongly correlate with the ground magnetic anomalies and that economic grades can be found at the bedrock surface at several locations within both North and South Zones.
Relogging of historical drill holes in the skarn area, combined with our new geophysical/geological data, has shown the subvertical North Zone extends 400 m along strike, 300 m vertically, with variable width up to 25m, remains open to southeast, to depth, and may link with South Zone; the subhorizontal South Zone includes several discrete high-magnetic anomalies within a 250 meter by 350 meter area and has drill-confirmed thickness of up to 30 plus meters, locally.
New Drilling - North and South Skarn Zones
GWR Management has approved an expanded, 9000 meter (90 shallow holes) winter 2010-2011 Drilling Program, designed to test the North and South Skarn Zones to depths of approximately 80 meters, to support determination of 43-101 compliant resource estimates within "open-pitable" depths below surface. The vertical, North Zone will be drilled using angled holes (-45 and -60 dips, towards 040 degrees) at 25-meter collar spacings on fifteen 25-meter sections, to test gaps in the historical drilling and provide systematic sampling of the upper part of the zone. Although historical drilling has clearly demonstrated the North Zone continues to at least 300 meters depth, our intention is to establish economic viability of the near-surface portion at this time. Similarly, the South Zone will be drilled on 20-meter centers using predominantly short, vertical holes to delineate the flat-lying, near surface mineralization, with focus on the three largest magnetic anomalies and intervening areas. (See new drill plan maps with tables at www.gwrresources.com).
Skarn Zone drilling commenced November 23, 2010, using 2 drill rigs (Armstrong Drilling and Paycore Drilling). To date, 28 holes have been completed. All have intersected various widths of massive to semi-massive magnetite with finely disseminated to massive chalcopyrite, bornite, chalcocite and pyrite, occurring as irregular zones within fine to coarse grained, skarned volcanic tuffs and flows, or as late veins/dykes or fracture fillings of massive magnetite-chalcopyrite or chalcopyrite-only. (See more core photos at www.gwrresources.com). In-house Xray Refraction (XRF) analyses on the sulphides confirm that gold and silver occur with the chalcopyrite, but not with pyrite.
Descriptive logging, sampling, cutting and analyses of mineralized intersections by Ecotech Labs, Kamloops, are all ongoing as drilling continues. Core samples for another 4 holes have been sent for assay, and results will be reported when received. GWR is encouraged by the lateral continuity, thickness and grades within the South and North Zones to date. In addition to adding the second drill rig, the Company has doubled the initial drilling budget from 4500 meters as previously announced, to 9000 meters. Both drill rigs will shut down over the Christmas break from December 18 to January 10, when drilling will recommence.
South Skarn Zone
Fourteen vertical holes have been completed on one of the South Zone magnetic anomalies, referred to as the 'Peanut" anomaly, measuring roughly 90 x 100 meters. Assay results have been received for only two holes to date. DDH SL10-01 was drilled in the middle of the anomaly and cut mineralization from the bedrock surface to approx. 32 meters. Grades of up to 3.9 % Cu, 0.90 gpt Au, 11.5 gpt Ag and 25.8 % Fe were encountered (combined copper equivalent = 4.9 %; see Assay Table below). The hole continued below this zone to 352.5 meters to test for possible deeper skarn mineralization and intersected two separate, narrow but high-copper zones, as indicated. Subsequent drilling on the Peanut anomaly will be to relatively shallow depths. DDH SL10-05 was drilled on the southeastern edge of the anomaly and intersected three lower grade zones, confirming the geophysical patterns. DDHs SL10-06, SL10-07, SL10-08 and SL10-09 have all intersected massive mineralization, visually comparable or better than that observed in DDH SL10-01. Assays will be released when received. Approximately 10 holes remain to be drilled on the Peanut anomaly.
North Skarn Zone
Fourteen inclined holes have been completed on the northwestern end of the North Zone, systematically progressing from NW to SE along the magnetic trend, guided by results from the historical drilling. Assays have been received for three of the new holes. DDHs SL10-11, SL10-12 and SL10-13 were drilled at the end of the magnetic anomaly, intersecting mineralization over 10-14 meters with grades up to 4.4 % Cu, 0.77 gpt Au, 14.9 gpt Ag and 48.9 % Fe (combined Cu equivalent = 5.9 %) over one 2-meter interval. Again, additional holes have been completed, have intersected the zone, been sampled, and assays are pending.
|Hole||NAD 83 Zone 10||Azimuth||Dip||EOH (m)||Cu (%)||Au (gpt)||Ag (gpt)||Fe (%)||Approx. * Magnetite Equiv. of Fe%||Cu Equiv. ** (Cu+Au+Ag+Mgt Equiv.)||Length (m)||From (m)||To (m)|
|In center of South Zone "Peanut" high-magnetic anomaly||incl.||2.00||0.48||6.6||30.0||36||2.9||6||14||20|
|SE edge South Zone "Peanut" anomaly, where mag response is weaker||incl.||0.38||0.05||1.7||13.5||18||0.7||6||19||25|
|Off the NW end of North Zone magnetic anomaly||incl.||2.62||0.36||8.3||38.8||47||3.7||6||69.5||75.5|
|Off the NW end of North Zone magnetic anomaly||incl.||0.56||0.10||2.3||21.6||28||1.1||4||99||103|
|25 m inside NW end of North Zone, across high magnetic portion of zone.||incl.||0.71||0.26||3.9||39.6||53||1.8||2||106||108|
|"Full intersection" averages (excludes higher grade intervals within each hole)=||0.60||0.13||2.4||23.7||31||1.2||14.4|
|* Fe minus 2 x Cu (some Fe is in Chalcopyrite + Pyrite, and other minerals) expressed as Magnetite equivalent: Fe% - (2* %Cu) x 1.39|
|** Four metal value, as copper equivalent, assuming retail values (Dec, 2010): Au $1400/oz; Cu $4/lb; Ag $28/oz; Magnetite $150/tonne|
The company plans to demonstrate the positive economic potential of the Skarn Zones, based on several factors:
- Economic grades of copper-magnetite occur, associated with recoverable gold and silver values
- Predictable magnetite distribution (magnetic survey anomalies support accurate drill targeting)
- Several magnetic anomalies occur, define multiple zones, in addition to the two currently being drilled
- Mineralization lies at or near-surface, within topographic high-ground, offering ``quick-return``
- positive metallurgical tests, no deleterious elements
- excellent infrastructure, proximity to potential off-site milling, nearby power, roads, town site
- currently high metal prices, increased magnetite demand, positive forecasts
Management believes the Skarn Zones offer realistic, potential revenue which represents enhanced share value and can be used to further explore several other prospects on the property, including the Aurizon South SuperGold Zone.
GWR maintains a quality assurance/quality control program that conforms to the requirements of National Instrument 43-101. Rob Shives, P. Geo., is the Qualified Person (as defined by NI43-101) who accepts responsibility for the technical content of this news release.
GWR is an active mineral exploration company currently exploring for gold and base metals on two properties within Canada. The Lac La Hache copper-gold porphyry project hosts multiple zones containing commercial grades of gold, copper, silver and magnetite. The project is located in British Columbia's prolific Quesnel Trough between producing mines at Imperial Metals' Mt. Polley Copper-Gold Mine and New Gold Inc.'s New Afton Copper-Gold project (Teck-Cominco's legendary Afton mine). The Lac La Hache project is well-served by rail, road and power infrastructure. The Sainte Sabine gold (+Ag, Zn, Cu) property is located within the Bellechasse Mineral Belt in southeastern Quebec, adjacent to known zones on Golden Hope Mines' Bellechasse Project.
This news release may contain "forward-looking statements". Readers are cautioned that any such statements are not guarantees of future performance and that actual development or results may vary materially from those in these "forward looking statements".
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Responsible Officer: Irvin Eisler, President
Company Telephone Number: (250) 546-8048