Trading Symbol: RRO - TSX-V
Shares Outstanding: 112,127,490
HALIFAX, Jan. 18 /CNW/ - Royal Roads Corp. (RRO - TSX-V) ("Royal Roads" or the "Company") is pleased to announce preliminary plans for its 2010 exploration programs. The majority of the exploration activity will be split between the Long Range Nickel property, where 2009 exploration returned favorable results with the discovery of two new copper and nickel mineralized zones (news releases dated September 14 and October 28, 2009); and the Company's 100% owned Buchans property. Exploration on the Buchans property is expected to include follow-up diamond drilling on the Buchans North prospect where the Company's recent initial drill program confirmed the potential for this prospect to host high-grade massive sulphides similar to that mined previously in Buchans (news release dated December 15, 2009); and a diamond drill program on the Clementine West prospect which is set to commence January 18. As at November 30, 2009 the Company had over $3 million in cash and cash equivalents. In 2009 the Company applied for, and received approval of grants totaling $200,000 from the government of Newfoundland and Labrador's Junior Exploration Assistance program ("JEA") to aid in funding its exploration programs at Buchans. This funding assistance is gratefully acknowledged and demonstrates the Newfoundland and Labrador Government's commitment to a vibrant mining industry. Royal Roads anticipates submitting additional applications for funding support on its extensive exploration programs planned for 2010.
Buchans - Clementine West
Initially planned for the summer of 2009, this program was delayed until winter freeze-up and has now commenced. Approved for a $100,000 grant from the province's JEA program, the Company is planning a 1,500 to 3,000 metres follow-up drill program to the 2008 program which intersected sulphide stockwork mineralization over core lengths ranging between 29 and 118 metres (Buchans River Ltd., May 26, 2008). The mineralization is very similar to stockwork mineralization beneath the Buchans-Lucky Strike massive sulphide deposit. Historic mining at Lucky Strike by Asarco yielded production totaling 5.6 million tonnes* averaging 18.4% zinc, 8.6% lead, 1.6% copper, 112 g/t silver and 1.7 g/t gold. Management believes the Clementine West area is highly prospective for discovery of high-grade Buchans-style massive sulphides and has identified several untested Induced Polarization geophysical anomalies in the area, as well as high priority target areas located down plunge of drill hole H-08-3390 which intersected 118 metres of stringer stockwork mineralization. Previous drilling of the stockwork zone suggest the mineralization is open and gaining in intensity and size down plunge, where according to the accepted VMS model, proximal accumulations of high-grade massive sulphides may be expected to occur.
Buchans - Buchans North
At Buchans North, the Company is planning to drill between 1,500 and 2,000 metres in follow-up drilling to the recently completed, two hole, 744 metre program. The 2009 program was designed to assess an undeveloped prospect and test for possible extensions into areas where large accumulations of high-grade massive sulphides may be discovered. The first hole, H-09-3415, intersected massive sulphides assaying 15.50% copper, 5.80% zinc, 1.85% lead, 214.8 g/t silver and 2.92 g/t gold over 0.30 metres. The second hole, H-09-3416, located 63 metres north of the first hole, intersected massive sulphides averaging 15.52% zinc, 7.61% lead, 0.92% copper, 148.9 g/t silver, and 1.15 g/t gold over 2.1 metres (news release dated December 15, 2009). Management considers these results to be very positive as they confirm mineralization extends beyond previously interpreted limits and occurs within a discrete mineralized horizon that remains largely untested to the north by historic drilling. This prospect is located approximately 500 metres northwest of the former Oriental Mine, where Asarco, mined 3.3 million tonnes(xx) averaging 14.18% zinc, 7.90% lead, 1.47% copper, 154.0 g/t silver and 1.96 g/t gold between 1935 and 1983.
After a successful 2009 exploration program, Royal Roads, and their 50% Joint Venture partner, Benton Resources Corp., are planning comprehensive exploration programs for 2010. Line cutting and deep-seeking, electromagnetic geophysical surveys over the Portage Nickel prospect originally anticipated to commence in December, are now scheduled for January 2010. The Companies are also planning additional diamond drilling on the Portage Nickel prospect and adjacent conductive anomalies to explore for accumulations of magmatic nickel-rich massive sulphides similar to the Voisey Bay deposit. The gabbro body that hosts the Portage Nickel prospect is previously unexplored and measures approximately 20 km by 5 km.
Follow-up drilling is planned in 2010 to further test the Joint Venture's Range Zone discovery, located approximately 4,000 metres east of the Portage prospect, where the Companies recently intersected semi-massive to massive sulphides assaying 0.39% copper and 0.032% cobalt over 29.11 m (estimated true width). The Companies anticipate undertaking airborne geophysical surveys in early 2010 to explore five newly staked properties comprising over 180 km2 covering other nearby prospective gabbro bodies.
Will Felderhof, President, stated "We are pleased to begin 2010 with a strong treasury, and a number of highly prospective exploration targets. Clementine West is a very exciting prospect as previous drilling leads us to believe we may be closing in on accumulations of massive sulphides. Should drilling be successful and based on Buchans camp history, we would expect grades similar to the historically mined deposits at Buchans. We also look forward to implementing an aggressive 2010 exploration program on our Long Range Joint Venture after a successful 2009 program which resulted in the discovery of two new mineralized zones. Our new Portage Nickel prospect is of particular significance as the style of mineralization discovered thus far indicates potential for discovery of a Voisey's Bay type deposit. We believe we've only scratched the surface of this large previously unexplored area. 2010 should prove to be an eventful year for Royal Roads."
Royal Roads is exploring its 100% owned Buchans project for high-grade sulphide deposits similar to those mined by former mine operator ASARCO between 1928 and 1984. Buchans represents one of the highest grade base metal mining camps in Canadian history having produced 16.2 million tonnes(xxx) of ore from five orebodies averaging 14.51% zinc, 1.33% copper, 7.56% lead, 126 g/t silver and 1.37g/t gold.
* Past production figures for the Lucky Strike mine were obtained
from an article written by Thurlow, J.G., and Swanson, E.A., 1981:
Geology and Ore Deposits of the Buchans area, central Newfoundland.
In: Swanson, E.A., Strong, D.F., and Thurlow, J.G., (editors), "The
Buchans Orebodies: Fifty Years of Geology and Mining". Geological
Association of Canada. Special Paper 22. Pages 113 to 142. The
Company cannot verify this information.
(xx) Past production figures for the Oriental Mines were obtained from
an article written by Thurlow, G.J., and Swanson, E.A., 1981:
Geology and ore deposits of the Buchans area, central Newfoundland.
In: Swanson, E.A., Strong, D.F., and Thurlow, J.G., editors), The
Buchans Orebodies: Fifty Years of Geology and Mining. Geological
Association of Canada Special Paper 22. page 123.
(xxx) Past production figures for the Buchans Mines were obtained from an
article written by Kirkham, R.V., 1987: Introduction. In "Buchans
Geology, Newfoundland", Geological Survey of Canada Paper 86-24,
pages 1 to 6. The Company can not verify this information.
Paul Moore, M.Sc., P.Geo., (NL), Royal Roads' Vice President of Exploration, is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release and has reviewed the contents for accuracy.
Forward Looking Statements
Certain information contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Royal Roads believes that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. Royal Roads cautions that actual performance will be affected by a number of factors, many of which are beyond its control, and that future events and results may vary substantially from what it currently foresees. Royal Roads' forward-looking statements are expressly qualified in their entirety by this cautionary statement.
"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".
SOURCE ROYAL ROADS CORP.
For further information: For further information: Will Felderhof, President & CEO; David Felderhof, Vice-President, Royal Roads Corp., (902) 444-3637, Halifax, Nova Scotia, www.royalroadscorp.ca