NEW DRILL INTERCEPT HIGHLIGHTS INCLUDE 24.85 METRES GRADING 3.13% COPPER, 4.8 G/T GOLD AND 93.45 G/T SILVER OR 7.12% COPPER EQUIVALENT
VANCOUVER, Oct. 3, 2019 /CNW/ - Sun Metals Corp. ("Sun Metals" or the "Company") (TSXV: SUNM) reports multiple intercepts from drilling in the 421 zone at its 100% owned Stardust project in northcentral British Columbia. New drill results from these six holes extend the known plunge length of the 421 zone to over 160 metres and indicates the zone continues to be open in both directions. High-grade copper-gold mineralization has been intercepted in several holes as highlighted below. Drilling continues at Stardust and preparatory work for the winter program is well underway.
Step-out drilling along the projected strike and plunge of the 421 zone continues to show the lateral continuity of the 421 zone mineralized system, which the Company believes was generated from a buried multiphase porphyry copper style intrusive to the north. A pervasive skarn alteration envelope surrounds the copper-gold mineralization, indicating that current drilling is on the correct trajectory to find the more proximal part of the system. New drill result highlights include:
Hole DDH19-SD-436D intersected 45.55 metres(1) grading 1.44% copper, 1.18 grams per tonne (g/t) gold and 27.0 g/t silver for 2.44% copper equivalent (CuEq)(2)
Hole DDH19-SD-436D intersected 24.85 metres(1) grading 3.13% copper, 4.85 g/t gold and 93.5 g/t silver for 7.12% CuEq(2)
Hole DDH19-SD-440M intersected 15.90 metres(1) grading 2.38% copper, 2.68 g/t gold and 66.6 g/t silver for 4.71% CuEq(2)
Ian Neill, Sun Metals Vice President Exploration said, "The alteration encountered in 2019 drilling to date confirms our belief that we are still distant from the heart of the system, which indicates to us there is significant, highly prospective exploration ground to the north with the opportunity to discover more of the high-grade copper-gold mineralization that we are seeing in the 421 zone. We also expect to see increased consistency in grades from hole to hole as we track the mineralizing fluids to their source."
The 421 zone is an extensive skarn alteration package, within which lies the high-grade copper-gold mineralization. Steve Robertson, President & CEO states, "Our ongoing exploration program continues to define the shape of the 421 zone as an ovoid cylinder plunging to the north northwest. It is currently observed to extend more than 160 metres along plunge and is open to both the north and south. One of the most promising things about working toward the mineralization source is that we expect the sulphide replacement of the skarn alteration to be more complete closer to the high energy heat source, theoretically resulting in even higher grade material. This is what drives us to continue our focus on the trend to the north. We are excited that our team will continue exploration over the coming winter months as we learn more about this impressive high-grade system."
Table 1: New Significant Intervals
Drill Hole Name
Equivalent (g/t) (2)
(1) True widths of the reported mineralized intervals have not been determined
(2) Assumptions used in USD for the copper equivalent calculation were metal prices of $3.00/lb. Copper, $1,300/oz Gold, $18/oz Silver, $1.25/lb. Zinc and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Gold (g/t) x 0.6319) + (Silver (g/t) x 0.0087) + (Zinc (%) x 0.4167). The following equation was used to calculate gold equivalence: AuEq = (Copper (%) x 1.5824 + Gold (g/t) + (Silver (g/t) x 0.01385) + (Zinc (%) x 0.6593).
Diamond drilling at Stardust was initiated with two drills in late May. To date in 2019, the company has completed 8,860 metres in 19 drill holes. Drill holes DDH19-SD-448 and DDH19-SD-449 are in progress. The primary focus of the program continues to be exploration and exposing the extent of the mineralized zone identified in discovery drill hole DDH18-SD-421 (see press release dated November 14, 2018 at https://sunmetals.ca/news/2018/) which returned a 100.00 metre interval of 2.51% copper, 3.03 g/t gold, and 52.5 g/t silver for a 5.05% CuEq or a 8.00 g/t AuEq(1,2).
The Company announced in September plans to add a third drill to the program and an all-season camp to facilitate continuation of the exploration program through the winter months. With current drill holes expected to have a final depth of over 900 metres, some of the drill holes can take up to three weeks to complete. The addition of a third drill this month will allow the Company to accelerate exploration drilling, including testing the continuation of the 421 zone up plunge to the south.
Directional diamond drilling has been used in all the 2019 drill holes at Stardust which has increased the accuracy of drilling step-outs. The directional drilling incorporates the use of pilot holes which has resulted in a 34% reduction in metres drilled to this point in the program. Drill core is also retrieved using an oriented core system which aids in gathering of structural information critical to the interpretation of the genesis of the 421 zone.
Graphics & Table
Updated graphics including a plan map of the 2019 drill program (Figure 1), cross sections 2075N, 2100N, 2125N, 2150N, 2200N and a 421 zone vertical section (Figures 2-7), and a full table of reported results to date from the 2019 drill program (Drill Results Table) are available on the Company website:
Drilling completed on the project in 2019 was supervised by on-site Sun Metals personnel who collected and tracked samples and implemented a full QA/QC program using blanks, standards and duplicates to monitor analytical accuracy and precision. The samples were sealed on site and shipped to Bureau Veritas in Vancouver BC for analysis. BV's quality control system complies with global certifications for Quality ISO9001:2008. Core samples were analyzed using a combination of BV's AQ270 process for low level concentrations (ICP-ES/MS aqua regia) and the MA270 process for higher level concentrations (ICPES/MS 4 acid digestion). Gold assaying was completed with FA330, a 30-gram fire assay with ICP-ES finish. Base metal overlimits were finalized with titration and a silica wash was used between high grade samples to ensure no sample carry over.
Technical aspects of this news release have been reviewed, verified 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– Standards of Disclosure for Mineral Projects.
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 100% owned flagship, high-grade Stardust Project located in northcentral British Columbia, Canada. Stardust is a high-grade polymetallic Carbonate Replacement Deposit with a rich history. Sun Metals also owns the Lorraine copper-gold project (joint-ventured with Teck Resources Limited), and the OK copper-molybdenum project.
The Canyon Creek copper-gold skarn zone at Stardust was the subject of a 2018, NI 43-101 resource estimate included in a technical report titled "Stardust Project, NI 43-101 Technical Report" dated January 8, 2018. In that report, GeoSim Services Inc. provided the following estimate.
Stardust Project - Canyon Creek zone Mineral Resource Estimate (3):
% Cu Eq (3)
(3) The cut-off grade used in the resource estimate was 1.5% copper equivalent (Cu Eq). Metal price assumptions for the Cu Eq calculation in this table were $3.00/lb Copper, $1.25/lb Zinc, $1,300/oz Gold and $18/oz Silver. 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 = Copper + (Zinc x 0.4167) + (Gold x 0.6319) + (Silver x 0.0087). A cut-off grade of 1.5% Cu Eq 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.
All statements in this news release, other than statements of historical fact, are "forward-looking information" with respect to Sun Metals within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address mineralization at the Stardust project; the 2019 drill program and winter camp; the potential quantity and/or grade of minerals; anticipated exploration results; the growth potential of the Stardust project; planned mining methods and mineral processing; break-even cost for the Stardust project; British Columbia as a reliable jurisdiction for mining; proposed timing of exploration and development plans; potential conversion of inferred resources to measured and indicated resources; potential extension and expansion of mineral resources; and the focus of the Company in the coming months. Forward-looking information is often, but not always, identified by the use of words such as "seeks", "anticipates", "plans", "continues", "expects", "projects", "predicts", "potential", "targets", "intends", "believes", "potential", "budgets", "schedules", "estimates", "forecasts" and similar expressions (including the negative of such expressions), or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal process; currency exchange rates and interest rates; favourable operating conditions; political stability; obtaining governmental approvals and financing on time; obtaining renewals of existing licences and permits and obtaining required licences and permits; labour stability; stability in market conditions; availability of equipment; accuracy of mineral resources; successful resolution of disputes and anticipated costs and expenditures. Management believes these estimates and assumptions are reasonable. In addition, many assumptions are based on factors and events that are not within the control of Sun Metals and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the speculative nature of the Company's business; the Company's formative stage of development; the Company's financial position; possible variations in mineralization; conclusions of future economic evaluations; business integration risks; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; fluctuations in the securities market; fluctuations in currency markets; change in national and local government, legislation, taxation, controls, regulation and political or economic development; inability to obtain adequate insurance to cover risks and hazards; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour and employee disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or the completion of exploration; relationships with and claims by local communities and First Nations; and title to properties as well as those factors discussed in the Annual Information Form of the Company dated May 28, 2019 in the section entitled "Risk Factors", under Sun Metals' SEDAR profile at www.sedar.com.
Although Sun Metals has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Sun Metals disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law. Accordingly, readers should not place undue reliance on forward-looking information.
SOURCE Sun Metals
For further information: please contact Susie Bell, Investor Relations for Sun Metals at [email protected], 604-697-4953, or Steve Robertson, President and CEO of Sun Metals, at [email protected], (604) 697-4952.