VANCOUVER, July 30, 2018 /CNW/ - Sun Metals Corp. ("Sun Metals" or the "Company") (TSXV: SUNM) is pleased to announce that, pursuant to the previously announced Exploration Agreement between the Company and Takla First Nation ("Takla") (see news release dated July 3, 2018), it has issued 500,000 units of the Company (the "Units") to Takla, in connection with the cooperative agreement to conduct exploration work at the Stardust project located within the traditional lands of Takla in northcentral British Columbia.
The Units are comprised of one common share in the capital of the Company (each, a "Share") and one common, non-transferable share purchase warrant (each, a "Warrant"). The Warrants are exercisable at $0.35 for a period of 18 months from issuance. All securities issued are subject to a hold period expiring November 25, 2018.
Steve Robertson, president and CEO stated "the Exploration Agreement has been structured in a way that aligns the interests of the Takla First Nation with Sun Metals. By becoming shareholders in the Company, Takla are positioned to directly benefit from future exploration success. This concept reflects Sun Metals' mission to grow opportunities, grow value and grow communities.
Technical aspects of this news release have been reviewed and approved by Ian Neill P.Geo., Vice President Exploration of Sun Metals, who is a qualified person as defined by National Instrument 43-101.
On Behalf of the Board of Directors of
SUN METALS CORP.
Steve Robertson Chief Executive Officer
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.
About Sun Metals
Sun Metals is advancing its flagship, high-grade Stardust project located in northcentral British Columbia, Canada. Stardust is a high grade polymetallic Carbonate Replacement Deposit with a rich history.
The Canyon Creek copper-gold skarn zone at Stardust was the subject of a 2018, 43-101 compliant resource estimate published by the Company in January 2018. GeoSim Services Inc. provided the following estimate.
Stardust Project - Canyon Creek zone Mineral Resource Estimate(1):
% Cu Eq
(1)The cut-off grade used in the resource estimate was 1.5% copper equivalent. Metal price assumptions for the copper equivalent calculation were $3.00/lb Cu, $1.25/lb Zn, $1,300/oz Au and $18/oz Ag. Adjustment factors to account for differences in relative metallurgical recoveries of the constituents will depend upon completion of definitive metallurgical testing. The following equation was used to calculate copper equivalence: Cu Eq = Cu + (Zn x 0.4167) + (Au x 0.6319) + (Ag x 0.0087). A cut-off grade of 1.5% Cu Equivalent represents an in-situ metal value of approximately $100/tonne which is believed to represent a reasonable break-even cost for underground mining and processing. These are not mineral reserves and no work has been completed that demonstrates economic viability at the Project.
Sun Metals believes B.C. is a reliable jurisdiction with excellent exposure to capital markets, a deep pool of exploration professionals, a wealth of supporting services, and exceptional infrastructure with direct access to Pacific markets.
A corporate presentation is available on Sun Metals' website at www.SunMetals.ca.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements". Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.
SOURCE Sun Metals
For further information: please contact Steve Robertson, President and CEO of Sun Metals at (604) 697-4952 or [email protected]