VANCOUVER, Sept. 9, 2019
VANCOUVER, Sept. 9, 2019 /CNW/ - Sun Metals Corp. ("Sun Metals" or the "Company") (TSXV: SUNM) announces plans for the addition of a third diamond drill rig, and for a winter program at its 100% owned Stardust project in northcentral British Columbia. The positive results from the 2019 exploration campaign confirm the 421 zone copper–gold skarn mineralization is open to the north and south. The Company is accelerating the exploration campaign which is designed to follow up and expand on the mineralization intersected in discovery drill hole DDH18-SD-421 (see press release at https://sunmetals.ca/news/2018/).
The Stardust project is:
A large, high-grade polymetallic copper-gold system
Located in northcentral British Columbia, a favorable jurisdiction with advantages in infrastructure, communities, workforce and climate
Backed by Oxygen Capital, a multi-disciplinary team with a successful track record in converting modest capital investments into exceptional shareholder returns.
Highlights at the Stardust project include:
2018 drilling discovery of the 421 zone, located near the previously defined Canyon Creek resource (see Resource Estimate table below)
2019 successful drilling at the 421 zone on step-outs to the north and south indicates continuation of broad intervals of high-grade copper-gold mineralization. Important intersections in the 421 zone include:
Table 1: Selected Significant Intervals in 421 Zone(1)
Drill Hole Name
(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).
The 2019 drilling continues to intersect broad zones of skarn alteration within which are strong intervals of high-grade copper-gold mineralization as evidenced in the highlights above. These intersections show a continuous correlation of high grades from section to section
Mobilization of a third drill and winter camp will allow for all-season accelerated exploration.
Diamond drill contractor Matrix Diamond Drilling Ltd., based in Kamloops, BC, is working with the Company to mobilize a third hydraulic diamond drill to Stardust to hasten the pace of drilling. The contractor began the 2019 exploration campaign in May with two diamond drills which have been working steadily in the 421 zone since that time. The drills are employing the use of pilot holes and directional diamond drilling to accurately test targets in the zone. The efficiency of the directional drilling tool is maximized with three drill rigs, so the addition of a third drill will allow for quicker advancement of the exploration program.
Plans are underway for installation of an all-season winterized camp and additional roads to facilitate an extended exploration campaign. The camp is expected to support a workforce of up to 40 workers, which will be more than adequate to support a three drill rig year round exploration campaign.
Donald McInnes, Chairman of Sun Metals stated, "The continued discovery of very impressive size and grade intervals in the 421 zone in the 2019 campaign are exceeding our expectations. Timely advancement of the exploration team's understanding of the Stardust mineralizing system is critical to the execution of our corporate vision. By adding a third drill and installing an all-season camp we will be able to accelerate further discovery of the 421 zone."
Graphics & Table
Updated graphics consisting of a plan map of the 2019 drill program (Figure 1), and a 421 zone vertical section with cross sections of 2075N, 2125N, 2150N and (Figures 2-5), and a full table of reported results to date from the 2019 drill program (Drill Results Table) are available on the Company website(1):
Drill Results Table: https://sunmetals.ca/site/assets/files/3739/master_drill_results_table.pdf
Quality Assurance / Quality Control
Drill core samples have been shipped to the Bureau Veritas ("BV") laboratory in Vancouver, BC. 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 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 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 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.
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, 43-101 resource estimate published by the Company in January 2018. 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.
For further information please visit Sun Metals' website at www.Sunmetals.ca.
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; the 2019 drill program and winter camp; 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; 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
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please contact Susie Bell, Investor Relations for Sun Metals at firstname.lastname@example.org, 604-697-4953, or Steve Robertson, President and CEO of Sun Metals, at email@example.com, (604) 697-4952.Copyright CNW Group 2019