Blind Creek Receives NI 43-101 Resource Estimate Technical Report for the Blende Zinc-Lead-Silver Property, Yukon
VANCOUVER, June 5, 2018 /CNW/ - Blind Creek Resources Ltd. (TSX-V: BCK) – ("Blind Creek" or the "Company") reports the Company has recently received and filed an NI 43-101 Resource Estimate Technical Report, dated May 25, 2018, for the Company's 100% owned Blende Property, Yukon, on www.SEDAR.com. The Technical Report, prepared by Moose Mountain Technical Services (MMTS), an independent mining consulting company, can also be viewed on the Company's website. Furthermore, readers are invited to click here to view an animated 3D virtual tour of the Blende Zn-Pb-Ag Property location, geology and mineral resource, posted on the Company's website. The winter-road accessible Blende Property is situated 64 kilometres northeast of Keno Hill, Yukon, Canada.
Blende Deposit Model
The Proterozoic Blende Deposit is the largest discovered carbonate-hosted Zn-Pb-Ag deposit in Yukon (M. Robinson and C.I. Godwin, Economic Geology 1995), with features of both Irish-type and clastic-dominated Zn–Pb deposits (M. Moroskat et.al., Mineral Deposita 2014).
Blende NI 43-101 Pit Constrained Resource Highlights
Indicated Resource –In situ Total Pit Constrained Metal Content
159 Million lbs. Zinc
157 Million lbs. Lead
4.19 Million oz. Silver
Inferred Resource –In situ Total Pit Constrained Metal Content
1.461 Billion lbs. Zinc
1.364 Billion lbs. Lead
33.98 Million oz. Silver
The Blende Project is a potential bulk tonnage, open pit approach that offers some distinct cost advantages to other advanced lead-zinc projects in Canada, which are typically underground. Blende Resource mineralization outcrops at surface, is confined to 2 pit shapes approximately 2 kilometres apart (view map) and remains open in areas northwest, southeast and below the "reasonable prospects of economic extraction" open pit shapes within the 8 kilometre-long mineralized corridor, including the outer Far West, Far East and Shanghai discoveries. Blind Creek is positioning to conduct a drill program to extend the mineralization along strike and down-dip (fully permitted) to test these potential open pit extensions.
The Base Case Mineral Resource is reported in Table 1.
Table 1. Base Case Mineral Resource (at NSR cutoff grade of $CDN39.35 (ZnEq=2%))
| Category |
Cutoff |
In situ |
In situ Grades |
In situ Metal Content |
|||||||
| ZincEq |
Tonnage |
ZincEq |
Zinc |
Lead |
Silver |
NSR |
OXRAT |
Zinc |
Lead |
Silver |
|
| (%) |
(ktonnes) |
(%) |
(%) |
(%) |
(gpt) |
($CDN/t) |
(Mlbs) |
(Mlbs) |
(koz) |
||
| Indicated |
2.0 |
3,650 |
5.18 |
1.98 |
1.95 |
35.7 |
101.87 |
0.08 |
159 |
157 |
4,192 |
| Inferred |
2.0 |
32,980 |
5.03 |
2.01 |
1.88 |
32.0 |
98.91 |
0.22 |
1,461 |
1,364 |
33,980 |
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources will be converted into mineral reserves.
The Zinc Equivalent (ZnEq) and Net Smelter Return (NSR) metal price assumptions are: $US1.20/lb zinc, $US1.00/lb lead, and $US19.00/oz silver and an exchange rate of US$0.80 = $1CDN. Metal recovery assumptions are: 70% zinc, 85% lead and 90% silver (10% to zinc concentrate and 80% to lead concentrate). Payables based on comparable smelter terms and a 3% Royalty are; 85% zinc, 95% lead and 80% silver.
ZnEQ = Zn% +(Pb%*1.0*0.85*0.95)/(1.2*0.70*0.85)+(Aggpt/31.1034*19*0.90*0.80)/(1.2*0.70*0.85*22.0462)
Mining costs used for the "reasonable prospects of economic extraction" pit shapes are CDN$1.88/tonne for all material within the potential open pits. Processing, G&A, Surface Services and Tailings costs used have a total of CDN $37.50/tonne material milled. Costs are based on comparable Zn-Pb-Ag projects in North America. Open pit slopes are 45 degrees.
Geologic domains are modelled based on faulting, lithology and grade distribution. Four domains have been modelled, with assays composted to 3m intervals honoring domain boundaries and capped by domain based on cumulative probability plots. Zinc, lead and silver grades have been interpolated using Ordinary Kriging (OK).
Indicated Resources must contain at least two drill holes within 30m of the block. Inferred Resources have at least 2 drill holes within 120% of the Variogram Range, with extrapolation of the data limited. Density values are based on a correlation of (Zn+Pb) grades and re-assayed intervals from a sampling program undertaken in the summer of 2017.
The supporting NI 43-101 Technical Report titled "NI 43-101 Resource Estimate for the Blende Property, Yukon Territory, May 25, 2018 has been filed on SEDAR (www.SEDAR.com) and on the Blind Creek website (www.blindcreekresources.com).
NI 43-101 Report Recommendations
MMTS has recommended additional geological investigation should include a program to laterally extend known mineralization and test the down dip extension of this mineralization. Also, a program of infill drilling is recommended to increasingly test continuity of mineralization between existing drill sections. This will aid in upgrading the confidence level of the Blende Mineral Resource.
A proposed work program includes:
- Major infill drilling at the Far West Zone, West Zone-area and East-area zones to increase confidence in the resource estimation. Program should also concentrate on obtaining a meaningful database of SG measurements.
- Exploration drilling in the Far East Zone to properly identify and delineate zones of mineralization.
- Continual metallurgical studies to better determine appropriate process procedures and optimal recoveries.
- Although the Central Zone has seen limited drilling, it requires further geologic mapping, and needs to be put in the newly understood structural context, prior to any serious drill program.
- Additional geological mapping and reconnaissance contour soil sampling on the northwest, southeast and northern extensions of the claim group.
An Estimated Budget is shown below in Table 2.
Table 2. Blende Project Estimated Budget
| Field Related Items Only |
Approx. Totals |
| Drilling |
$1,200,000 |
| Metallurgical Studies |
$250,000 |
| Geochemistry |
$100,000 |
| Geological |
$150,000 |
| Miscellaneous |
$250,000 |
| TOTAL |
$1,950,000 |
Qualified Person
Ms. Sue Bird, P.Eng., Principal at MMTS is independent of Blind Creek Ltd. and a 'Qualified Person' (Q.P.) as defined under Canadian National Instrument NI 43-101. Ms. Bird is responsible for the Mineral Resource Estimate and directly related information in this news release. Technical aspects of this news release have been reviewed and approved by Ms. Bird.
About Blind Creek Resources Ltd.
Blind Creek is a Vancouver-based junior resource company focused on lead-zinc-silver project acquisition, exploration and development. The Company's flagship property is the Blende Deposit in north-central Yukon. More recently the Company has signed an agreement to acquire a 100% interest in the AB Property, a mid-stage Mississippi Valley (MV-Type) Zinc-Lead exploration property in Northwest Territories.
For additional information please visit the company website www.blindcreekresources.com.
On behalf of the Board of Directors,
Mr. Brian P. Fowler, P.Geo.
President and Director
[email protected]
Nelson Da Silva – Manager Corporate Communications
(604) 722-0041
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.
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Blind Creek Resources Ltd. which may cause actual results, performance or achievements of Blind Creek Resources Ltd to be materially different from the results, performance or expectation implied by these forward looking statements. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Neither the 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 Blind Creek Resources Ltd.
MarketSmart Communications Inc., (877) 261 4466, www.marketsmart.ca
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