VANCOUVER, BC, Sept. 29, 2020 /CNW/ - Sun Metals Corp. (TSXV: SUNM) ("Sun Metals" or "we" or the "Company") is pleased to announce that initial drilling results from the 2020 Stardust exploration program have established continuity between the 421 and Canyon Creek zones along a 900 metre (m) corridor of continuous high-grade copper-gold mineralization. The 100% owned Stardust project is located in northcentral B.C.
Drill hole DDH20-SD-457M establishes continuity from the 421 zone to a lens of the overlying Canyon Creek zone. The 421 zone is now revealed to be a feeder to the overlying Canyon Creek zone mineralization.
Stardust's high-grade copper gold massive sulphide mineralization has now been traced along one of the continuous pathways in the currently known 900m of plunge length from surface.
DDH20-SD-457M results:
2.88% copper equivalent (CuEq)1 over 44.00m2 grading 1.57% copper (Cu), 1.08 grams per tonne gold (g/t Au), and 28.2 g/t silver (Ag), from 505.70m;
Including 5.61% CuEq over 13.90m grading 3.05% Cu, 2.12 g/t Au and 53.6 g/t Ag, from 535.80m.
"The Stardust copper-gold massive sulfide deposit is one of the highest-grade systems discovered in Canada in the past decade. The mining industry is dominated by porphyry copper deposits with grades in the order of 0.3% copper. The high-grade mineralization we are finding at Stardust is consistently an order of magnitude higher than what is commonly being mined today. Being able to track the high-grade massive sulphide interval intersected in DDH20-SD-457M revealed to us a lot about this robust system consisting of multiple pathways of high-grade copper gold mineralization. Like previous drill holes in the 421 zone, this high-grade intercept occurs within a broader 83.40 metre interval of alteration and mineralization grading 1.70% copper equivalent. We have consistently observed a pattern where high-grade copper gold massive sulphide is within a broader envelope of alteration and mineralization" states Sun Metals President & CEO Steve Robertson.
Drill hole DDH20-SD-457M tested an area in the southern portion of the 421 zone (See Figure 1), above the previously interpreted upper limit to the mineralization and has intersected strong, high grade mineralization. The 13.90m interval of 5.61% CuEq pushes the interpreted upper edge of the 421 zone into the lower limits of the Canyon Creek zone, thus establishing continuity between the two zones and advancing our understanding of this high-grade copper gold massive sulphide system (See Figure 2).
The original discovery outcrop of the Canyon Creek zone is the top of a 900m plunging high-grade zone (See Figure 3). The continuous corridor of copper gold mineralization is connected though the Canyon Creek zone, into the 421 zone at DDH20-SD-457M and through to drill hole DDH19-SD-455D at the lower extremity of the system as explored to date.
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1
Assumptions used in USD for the copper equivalent calculation were metal prices of $3.00/lb. Copper, $1,900/oz Gold, $23/oz Silver, $1.10/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 0.9240) + (Silver (g/t) x 0.0112) + (Zinc (%) x 0.3667).
2
True widths of the reported mineralized intervals have not been determined.
DDH20-SD-456M Drill hole DDH20-SD-456M was drilled into the 421 zone south of the Canyon Creek Fault and tested an area near its lower predicted limits. Mineralization included: 2.90m of high-grade copper-gold mineralization grading 4.37% CuEq, within a larger 19.60m zone of continuous alteration and mineralization grading 1.25% CuEq establishing that the area is within the mineralized system.
DDH19-SD-455D Drill hole DDH19-SD-455D was collared in late 2019 but the drill hole was not completed before the end of the exploration season of that year. The final 276m were drilled this season into a target area deep on the north end of the 421 zone. The intercepted 2.00m interval of 2.52% CuEq is slightly lower than the main mineralized corridor and demonstrates the continuity of the mineralization in the deepest test of the 421 zone to date.
Exploration Program Update Our 2020 Stardust exploration program is focused on expanding the high-grade 421 zone and exploring the potential for multiple feeders including in the area between the 421 and Canyon Creek zones. The drill campaign began in early July with three drills and is anticipated to run until early October. A total of 17 drill holes have been completed during the program and as of the date of this release, all drills have completed the drilling for this program. A total of 11,988m of drilling was completed with 3,147 samples shipped to the lab. Lab turnaround time has been significantly negatively impacted by the COVID-19 pandemic and consequently, only results from three drill holes have been received at the time of this release. Geophysical surveys, geotechnical and geologic core logging and sampling are ongoing at the Stardust project site.
In just three years, Sun Metals' technical team has developed an understanding of this system that has resulted in significant discovery success. In 2018, our first full season at Stardust, our technical team made one of our industry's strongest discoveries with the 421 zone3. In 2019, Sun Metals started to delineate the 421 zone, and 20 reported pierce points now define it and have established continuity to surface.
See press release dated November 14, 2018 available at www.sunmetals.ca
Quality Assurance / Quality Control 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 (BV) 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, with gold overlimits completed with a gravimetric finish. A silica wash was used between high–grade samples to ensure no sample carry over.
Prices used to calculate the CuEq values1 in this project have been updated from previous reporting on the Stardust project. In some drill intercepts in the 421 zone, up to half of the value can be from gold, silver and zinc and the increase in price of those commodities relative to copper has motivated the update to prices nearer to current spot price quotations. As a result, the previously reported intervals that are referred to in the figures and table related to this release have been updated and will be different than previously presented.
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 Minerals Projects.
For more 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. An updated interactive corporate presentation is available on Sun Metals' website at https://www.sunmetals.ca/investors/presentation/.
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 published by the Company titled "Stardust Project NI 43-101 Technical Report Omineca Mining Division, British Columbia" with an effective date of January 8, 2018. In that report, GeoSim Services Inc. provided the following estimate.
Stardust Project - Canyon Creek zone Mineral Resource Estimate4:
RESOURCE CATEGORY
TONNES
COPPER %
ZINC %
GOLD G/T
SILVER G/T
% CU EQ4
Indicated
985,000
1.34
0.62
1.59
36.8
2.92
Inferred
1,985,000
1.24
0.14
1.72
30.5
2.65
Cautionary Note Regarding Forward-Looking Statements 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; relative size of mineralization at the 421 zone, geophysical surveys, use of instrumentation data, and goals and expectations pertaining to metallurgical results; the 2020 program and the use of flow-through dollars; the potential quantity and/or grade of minerals; 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; negotiations with the Takla First Nation; the potential impact of the COVID-19 pandemic; 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; negotiations with the Takla First Nation; assumptions about the effect of the Covid-19 pandemic; and title to properties as well as those factors discussed in the Annual Information Form of the Company dated April 1, 2020 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.
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4
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.
SOURCE Sun Metals
Steve Robertson, President and CEO of Sun Metals, at [email protected], (604) 697-4952.
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