Kerr Mines increases down dip extension of Copperstone D Zone with 60.5 feet @ 27.0 g/t Au
TORONTO, Dec. 5, 2017 /CNW/ - Kerr Mines Inc. (TSX: KER, OTC: KERMF, FRA: 7AZ1) ("Kerr" or the "Company") is pleased to announce further results of its Phase I drilling program. KER-17U-12 interval of 32.0 feet @ 16.0 g/t Au has been extended by 28.5 feet @ 39.1 g/t Au for a final total interval length of 60.5 feet @ 27.0 g/t Au (see press release dated November 2, 2017). Phase I of the program continues to confirm significant gold mineralization and increases the confidence in expanding the resource at the Company's Copperstone project in Arizona.
Highlights
- New intervals drilled from underground through the Coppertone Zone include:
- 28.5 feet @ 39.1 g/t Au (KER-17U-12)
- 10.5 feet @ 8.8 g/t Au (KER-17U-13)
- 28.8 feet @ 38.6 g/t Au (KER-17U-14)
- 14.5 feet @10.9 g/t Au (KER-17U-16)
- 12 feet @ 6.7 g/t Au (KER-17S-01)
- Results continue to extend down-dip and up-dip gold grade and extend mineralized areas along strike in the Copperstone Zone
- Drill hole spacing designed to upgrade resources from inferred to measured and indicated
Martin Kostuik, President, stated, "these continuing achievements support the confidence we have in developing this resource to its fullest potential. Attributes of high grade and continuity are regularly displayed in the drilling results"
The Copperstone Zone detachment fault system historically produced over 500,000 ounces of gold from an open pit. Continuing below the open pit, the down-dip extension of the Copperstone Zone has an undiluted mineral resource of 313,000 oz Au at 10.35 g/t Au (0.302 ounce per ton)-(311,000 measured + 2000indicated), estimated in 2010* which is being further enhanced by the Phase 1 drilling program. The Phase I 15,000 feet underground program is currently using three drills to test along strike and up/down-dip in the D and C portions of the Copperstone Zone. The program is confirming mineralized detachment fault breccia continuity from existing underground workings at depths from 100 to 400 feet below the open pit bottom.
KER-17U-12 was drilled in the northwestern portion of the Copperstone Zone, starting from below and drilling towards the northeast into the Copperstone Zone. This hole was designed to confirm previous results and had total updated results of 71 feet @ 23.1 g/t Au. Important silicic and hematitic alterations including magnetite replacement were encountered. These strong results will potentially increase the size and grade of the historic mineralized zone.
KER-17U-13 was drilled from below and towards the Copperstone Zone. KER-17U-13 is a confirmation hole ending 140 feet to the south of KER-17U-12. The results of this hole confirm historical results and also improve continuity in a sparsely explored area with the best intercept of 10.5 feet @ 8.8 g/t Au and 0.41% copper (Cu). The beginning of the mineralized portion of this hole is only 45 feet from existing workings.
KER-17U-14 was drilled from below towards the northeast and tests the down dip extension of the Copperstone Zone. KER-17U14 is designed to upgrade resources and demonstrate continuity. It also increases the dimensions of the mineralized lens in this area with high grade intercepts in two locations. This hole is 70 feet from each of KER-17U-12 and KER-17U-13 and displays an over-all interval of 88 feet @ 13.9 g/t Au. Limestone, skarn, sandstone and siltstone were encountered-with limestone becoming important to the understanding of mineral deposition. This interval has intercepts as high as 28.8 feet @ 38.6 g/t Au.
KER-17U-16 was drilled from below the Copperstone Zone but upward towards the northwest to test and confirm the up dip potential of the Copperstone Zone. KER-17U-16 tests the up dip potential of the Copperstone Zone by confirming historic results and extending the mineralized lens along dip. The overall interval of 105 feet @ 4 g/t Au included several high grade intercepts ranging from 7.7 g/t Au to 10.9 g/t Au and as high as 0.99% Cu to help define this zone. Important units of limestone and alteration including silica and hematite were encountered. The overall average grade of Cu for this 105 foot interval is 0.29%.
KER-17S-01 was drilled from the surface and vertically down into the Copperstone A Zone. KER-17S-01 tests the down dip potential of the Copperstone A Zone. An overall interval of 17 feet @ 4.8 g/t Au included a high grade interval of 7.6 feet @ 10.5 g/t Au. Important silicic and hematitic alteration was encountered in the Copperstone breccia. The results in KER-17S-01 are approximately 200 feet down dip and east of historic drill results and extend the known Copperstone A Zone mineralization by approximately 85 feet down dip while also serving to extend mineralization along strike.
Table 1. Selected Drill Results
| Hole ID |
Zone |
From |
To |
Interval* |
Interval* |
Gold |
| ft |
ft |
ft |
m |
g/tonne |
||
| KER-17U-12 |
D |
153.0 |
224.0 |
71.0 |
21.6 |
23.1 |
| includes |
153.0 |
213.5 |
60.5 |
18.4 |
27.0 |
|
| also |
163.0 |
210.8 |
47.8 |
14.6 |
33.8 |
|
| also |
178.0 |
191.0 |
13.0 |
4.0 |
89.9 |
|
| also |
185.0 |
213.5 |
28.5 |
8.7 |
39.1 |
|
| KER-17U-13 |
D |
46.5 |
57.0 |
10.5 |
3.2 |
8.8 |
| KER-17U-14 |
155.0 |
243.0 |
88.0 |
26.8 |
13.9 |
|
| includes |
178.0 |
206.8 |
28.8 |
8.8 |
38.6 |
|
| also |
217.0 |
226.0 |
9.0 |
2.7 |
5.6 |
|
| KER-17U-16 |
D |
48.0 |
153.0 |
105.0 |
32.0 |
4.0 |
| includes |
48.0 |
58.0 |
10.0 |
3.2 |
7.7 |
|
| also |
104.9 |
113.0 |
8.1 |
2.5 |
10.6 |
|
| also |
138.5 |
153.0 |
14.5 |
4.4 |
10.9 |
|
| KER-17S-01 |
A |
381.0 |
393.0 |
12.0 |
3.7 |
6.7 |
| * not true width |
||||||
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Michael R. Smith, Registered Geologist., who is a "Qualified Person" as defined by NI 43-101 for this project.
The Company is pleased to announce that Carmelo Marrelli (CPA) has been appointed Chief Financial Officer and Andrew Newbury Corporate Secretary. The Company has accepted the resignation of Christopher Hopkins from these roles.
About Kerr Mines Inc.
Kerr Mines is a North American gold development and exploration company currently advancing the 100% owned, fully permitted past-producing Copperstone Mine project. Copperstone is a high-grade gold project located along a detachment fault mineral belt in mining-friendly Arizona. The project demonstrates significant upside exploration potential within a 4,775 hectare (11,800 acres) land package that includes a production history of over 500,000 ounces of gold. The Company's current focus is on maximizing Copperstone's potential by defining and expanding current resources and strengthening the mine's economics leading to a production decision.
Quality Assurance and Quality Control Statement
Procedures have been implemented to assure Quality Assurance Quality Control (QAQC) of drill hole assaying being done at American Assay Laboratories (American), which is ISO Accredited. All portions of drill holes are being assayed and samples are securely stored for shipment to American, with chain of custody documentation through delivery. Mineralized commercial reference standards and coarse blank standards are inserted every 20th sample in sequence and results are graphed to assure acceptable results, resulting in high confidence of the drill hole assay results. When laboratory assays are received, the QAQC results are immediately evaluated and graphed to analyze dependability of the drill hole assays. As the Copperstone Project advances, additional QAQC measures will be implemented including 1) selected duplicate assaying being done at a second accredited assay laboratory, 2) duplicate assaying of selected intervals of core (quarter splits) and reverse circulation drilling samples, and 3) metallic screen assays of selected remaining laboratory rejects. All results will be analyzed for consistency.
*Mineral Resource Tabulation – Model capped at 5.0 oz Au/t with a 0.15 oz Au/t cutoff grade, 1,038,000 tons (1,029,000 measured + 9,000 indicated) - NI 43-101 Technical Feasibility Report, Copperstone Project, February 11, 2010. Limited mining of this resource occurred in the period between Q4 2012 and Q3 2013 and updated tons will be tabulated when a new resource is estimated in early 2018.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Kerr Mines' business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Kerr Mines assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release and no stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Kerr Mines Inc.
Claudio Ciavarella, Chief Executive Officer, [email protected], 416-855-9305
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