VANCOUVER, June 14, 2018 /CNW/ - Sun Metals Corp. ("Sun Metals" or the "Company") (TSXV: SUNM) is pleased to announce the launch of the 2018 field program at the Stardust project in northcentral British Columbia. The objective of the 2018 field program is to further explore and expand mineralization identified in a 2.2 kilometre corridor of polymetallic Carbonate Replacement System mineralization. Field work was initiated during the week of June 4 and an airborne VTEM / Magnetics survey is planned to begin within days. The 2018 work program will include:
Airborne VTEM and Magnetics survey (100 m line spacing)
Mapping and prospecting
Selective relogging and resampling of 80,000 metres of existing drill core
15,000 metres of diamond drilling starting in August
Steve Robertson, Sun Metals President and CEO stated: "Sun Metals has a great opportunity to explore the Stardust system with an aggressive and strategic field program. The high-grade nature of mineralization previously intersected in the skarn, manto and vein zones of the system are testament to the strength of the mineralizing system."
Sun Metals started trading on May 8 under the symbol SUNM on the TSX Venture Exchange, concurrent with raising $6,447,100 which will be used to fund the Company's proposed phase 1 exploration program on the Stardust Project, and for general working capital purposes.
Stardust Project Details
Pursuant to an option agreement (the "Option Agreement") between Sun Metals and Lorraine Copper Corp. ("Lorraine Copper"), an Exchange listed issuer, Sun Metals has an option (the "Option") to earn a 100% interest in the Stardust Project (the "Project"), located in central British Columbia.
The Project hosts a polymetallic, carbonate replacement system with a rich exploration history dating back to 1944. The Project lies in north-central British Columbia, approximately 150 km north of Fort St. James. It consists of 20 contiguous claims totaling 9,583 hectares and is owned 100% by Lorraine Copper, subject to the Option.
There are 393 exploration drill holes on the Project that have revealed a 2.2 kilometre corridor hosting a large, coherent Carbonate Replacement System. Four distinct mineralization styles have been identified within the system, ranging from copper-molybdenum porphyry, copper-gold skarn, zinc-lead-silver mantos and silver-gold epithermal veins.
The Canyon Creek copper-gold skarn zone 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.
The maximum search distance was set at 150 m and a dynamic anisotropy was imposed with the direction of maximum continuity along strike and down-dip. Dip and dip directions of trend surfaces for each zone were assigned to blocks using the inverse distance squared method such that each block was assigned a unique search ellipsoid.
Areas of uncertainty that may materially impact the Mineral Resource Estimate include:
Commodity price assumptions;
Assumptions that all required permits will be forthcoming;
Mining and process cost assumptions
There are no other known factors or issues that materially affect the estimate other than normal risks faced by mining projects in the province of British Columbia in terms of environmental, permitting, taxation, socio economic, marketing, and political factors. See technical report entitled "Stardust Project NI 43-101 Technical Report" dated effective January 8, 2018, prepared for Sun Metals and Lorraine Copper in support of the recently completed go-public transaction, for further details about the mineral resource estimate, a copy of which can be found on SEDAR.
The Option Agreement
Pursuant to the terms of the Option, Sun Metals has the right to earn a 100% ownership interest in the Project by making five staged annual instalments of 500,000 Sun Metals common shares, and annual cash payments totalling $375,000. Sun Metals must also spend $6,000,000 on the Project by December 31, 2021. Sun Metals is the operator of the Project during the Option and must spend $500,000 before the end of 2017 (incurred) and $1,000,000 annually thereafter until the earn-in is completed. Upon earn-in, Sun Metals will issue top-up Sun Metals shares, up to a maximum of 51,873,599 Sun Metals shares, in order for Lorraine Copper to own a total 30% interest in Sun Metals. Lorraine Copper will also hold a 2% NSR on precious metals and a 1% NSR on base metals, each of which may be bought down by Sun Metals by one half, with payment of $1,500,000 per royalty.
Sun Metals Launch
On May 16 Sun Metals held a well attended celebration of the Launch of Sun Metals' trading on the TSX Exchange. A video of the British Columbia Deputy Minister of Mines congratulating Sun Metals can be found here: https://vimeo.com/274787813
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.
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.
About Sun Metals
Sun Metals is advancing its flagship Stardust project located in north central British Columbia, Canada. Stardust is a polymetallic Carbonate Replacement Deposit with a rich history. 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.
Please see the corporate presentation available on Sun Metals' website at www.SunMetals.ca.
SOURCE Sun Metals
For further information: please contact Steve Robertson, President and CEO of Sun Metals at (604) 697-4952 or [email protected]