|By Marketwired .||
|August 12, 2013 09:03 AM EDT||
ST. JOHN'S, NEWFOUNDLAND -- (Marketwired) -- 08/12/13 -- Canada Fluorspar Inc. (TSX VENTURE:CFI)(OTC:CNDFF) ("CFI" or the "Company") is pleased to announce the fourth set of assay results under the Company's Phase 3 diamond drilling program from three drill holes on its Grebes Nest property. One of the drill holes, GS-13-13, is in the same plane as previously reported for drill hole GS-13-14 (press release dated August 6, 2013) and intersected two veins, one vein having an intersection with an average grade of 54.65% CaF2 over 4.21 metres and a second vein having an average grade of 43.88% CaF2 over 24.47 metres, including 2.90 metres of lost core. The other two drill holes, GS-13-17 and GS-13-19, are located 100 metres and 200 metres, respectively, east along strike from previously reported drill hole GS-13-15. The new vein structure is situated approximately 4 km from the former Tarefare Mine and less than 6 km from the former Blue Beach North Mine (see location map below). Both drill holes are located on the western end of the Grebes Nest grid area. Ground geophysical (magnetometer and EM) survey results indicate that the mineralized structure has potential to extend for more than 4,000 metres along strike.
Drill hole GS-13-13 was inclined at -45 degrees and oriented at azimuth 34 degrees. Drill hole GS-13-17 was inclined at -45 degrees and oriented at azimuth 34 degrees and drill hole GS-13-19 was inclined at -45 degrees and oriented at azimuth 34 degrees.
To view the first map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/CFI-Map1.pdf.
Drill hole GS-13-13 tested the down-dip extension of the Grebes Nest Vein on the same plane as the previously reported (press release dated August 6, 2013) drill hole GS-13-14. This hole intersected two vein structures: the first mineralization intersected was a vein having an average grade of 54.65% CaF2 over 4.21 metres; the second vein, located deeper than the first by approximately 22 metres, has an average grade of 43.88% CaF2 over 24.47 metres, including 2.90 metres of lost core. Excluding the lost core, the vein has an average grade of 49.78% CaF2 over 21.57 metres.
Drill hole GS-13-17 intersected a vein structure having an average grade of 27.96% CaF2 over 11.12 metres, with 1.53 metres of lost core. Excluding the lost core, the average grade increases to 33.13% CaF2 over 9.59 metres.
Drill hole GS-13-19 intersected a vein structure having an average grade of 76.13% CaF2 over 4.58 metres, with 0.3 metres of lost core. Excluding the lost core, the average grade increases to 81.46% CaF2 over 4.28 metres.
The fluorite mineralization in the north-south trending veins at the St. Lawrence Project and the Company's 100% owned mineral license occur in the form of massive mineralization and as fault gouge. Historically, core drilling of the massive mineralization has resulted in good core recovery. The areas of faulted mineralization generally contain finely ground fluorite and larger fragments of the harder siliceous material. Drilling through the faulted gouge zones commonly results in poor core recovery as the fine grained fluorite material in the vein is washed out by the drill fluid. The Grebes Nest vein/structure, comprised of fluorite mineralization in a northwest-southeast trending structure, differs from the north-south trending vein structures in that the mineralization is characteristically massive and relatively unaffected by late phase faulting. Intervals noted as lost core encountered during the drilling of test holes are commonly "vugs" or "voids" in the vein and rarely faulted sections in the vein.
To view the second map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/CFI-Map2.pdf.
"As expected, these latest drill results confirming the strike length for the West Grebes Nest vein to be over 925 metres extends our confidence that further drilling in Phase 3 drilling will support a strike length of up to 1.5 km," stated Lindsay Gorrill, President & CEO of the Company. "I am also encouraged by the fact that since the Grebes Nest Vein is hosted essentially by metasediments, rather than granite, the silica content is lower and blastonite, a brecciated fluorite in an admix of microcrystalline quartz and fluorite, is virtually absent. This should result in a coarser mill concentrate with lower silica content than formerly produced in St. Lawrence."
CFI has received assay results for samples collected from drill holes GS-13-13, GS-13-17 and GS-13-19 located along the western part of the Grebes Nest target area. The three drill holes intersected mineralization that has been interpreted to be the Grebes Nest vein which trends northwest-southeast and is steeply dipping.
Drill hole GS-13-13 is located in the same plane as a previously reported hole GS-13-14 (press release dated August 6, 2013) and intersected the main structure approximately 35 metres above drill hole GS-13-14. Drill hole GS-13-13 is located 100 metres west along strike from a previously reported (press release dated August 6, 2013) drill hole GS-13-15. This drill hole also tested a separate vein structures located near surface. Further drilling will be required to determine the extent of this vein structure.
Drill hole GS-13-17 is spaced about 100 metres east along strike from a previously reported (press release dated August 6, 2013) drill hole GS-13-15. It extends the previously reported strike of the Grebes Nest vein from 725 metres to 825 metres. It intersected the vein structure about 80 metres vertically below surface.
Drill hole GS-13-19 is spaced about 100 metres east along strike from drill hole GS-13-17 and extends the Grebes Nest vein strike length out to about 925 metres. Drilling intersected the vein structure approximately 75 metres vertically below surface.
Preliminary interpretation of the drill results indicates that the western part of the target area of the mineralized Grebes Nest structure maintains a relatively uniform width along strike and within a vertical depth of 100 to 125 metres below the surface. The drill intersections also indicate very competent core and good continuity of mineralized material at depth. CFI notes that most of the mineralized material is hosted by metasedimentary rocks (interbedded siltstones and shales, whereas most of the mineralized material at the major fluorspar veins in the general area - the historic Director, Tarefare, and Blue Beach North Mines - are hosted by the St. Lawrence Granite ("SLG")). The metasedimentary rocks in the St. Lawrence area are older than the SLG and early geological mapping indicates that the Grebes Nest area is underlain by interlayered pink rhyolite sills, similar in composition to the SLG, which intruded the metasedimentary rocks. The structure that has been identified by the drill program is a late phase event that cuts both the metasedimentary rocks and the sills. The parallel veins, such as the veins identified in drill hole GS-13-13 have been known to develop into significant mineable veins in other locations in the St Lawrence area. The significance of the parallel veins remains to be evaluated.
The following table shows the detailed results of the second set of drill holes completed by CFI on the Grebes Nest Vein noted in Phase 3 of the Company's 2013 exploration diamond drill program.
2013 Diamond-Drill Hole Assay Results Grebes Nest - Phase 3 Canada Fluorspar Inc. St. Lawrence Project, NL Hole GS-13-13 Sample No. From (m) To (m) Length (m) % CaF2 Vein #1 96101 6.50 6.93 0.43 71.51 96102 6.93 7.24 0.31 16.58 96103 7.24 8.12 0.88 82.18 96104 8.12 8.71 0.59 5.94 96105 8.71 9.28 0.57 41.08 96106 9.28 10.00 0.72 90.08 96107 10.00 10.71 0.71 42.41 Vein #2 96110 34.03 34.68 0.65 39.45 96111 34.68 35.36 0.68 33.67 96112 35.36 36.36 1.00 91.90 96113 36.36 37.32 0.96 80.31 96114 37.32 37.83 0.51 20.08 96115 37.83 38.78 0.95 90.59 96116 38.78 39.54 0.76 40.36 96117 39.54 40.45 0.91 62.81 96118 40.45 41.06 0.61 66.34 96119 41.06 42.03 0.97 5.84 96120 42.03 43.00 0.97 79.01 96121 43.00 43.62 0.62 30.50 96122 43.62 44.37 0.75 35.81 96123 44.37 45.20 0.83 85.31 96124 45.20 46.00 0.80 51.17 96125 46.00 46.98 0.98 77.45 96126 46.98 47.98 1.00 5.70 96127 47.98 48.98 1.00 15.78 96128 48.98 49.65 0.67 19.82 96129 49.65 50.45 0.80 86.49 96130 50.45 51.20 0.75 96.78 96131 51.20 52.20 1.00 56.67 96132 52.20 53.20 1.00 27.17 96133 53.20 54.20 1.00 15.92 96134 54.20 55.00 0.80 26.67 96135 55.00 55.42 0.42 14.42 96136 55.42 55.60 0.18 68.22 96137 55.60 58.50 2.90 Void Hole GS-13-17 Sample No. From (m) To (m) Length (m) % CaF2 96188 63.58 64.30 0.72 Void 96189 64.30 65.09 0.79 47.58 96190 65.09 65.90 0.81 30.74 96191 65.90 66.70 0.80 41.30 96192 66.70 67.48 0.78 4.55 96193 67.48 68.10 0.62 23.98 96194 68.10 68.21 0.11 Void 96195 68.21 69.20 0.99 84.68 96196 69.20 69.90 0.70 Void 96197 69.90 70.72 0.82 36.83 96198 70.72 71.72 1.00 18.83 96199 71.72 72.72 1.00 16.85 96200 72.72 73.70 0.98 34.12 108401 73.70 74.70 1.00 13.79 Hole GS-13-19 Sample No. From (m) To (m) Length (m) % CaF2 108436 85.22 86.15 0.93 85.91 108437 86.15 87.05 0.90 83.52 108438 87.05 87.35 0.30 Void 108439 87.35 88.00 0.65 78.90 108440 88.00 88.90 0.90 80.89 108441 88.90 89.80 0.90 77.23
Assays on these drill holes were carried out at SGS Lakefield Laboratories ("SGS") of Lakefield, Ontario, using the Ion Selective Electrode method to determine the fluorite content in the low-grade samples and the Dual Calcium method for samples expected to contain high-grade values (i.e., those with significant visible fluorspar in the drill core).
Quality Assurance and Quality Control ("QA/QC")
Check assay work by CFI includes insertion of duplicate samples and blanks with regular batches of mineralized samples of drill core. QA/QC work is also done at SGS, and results are reviewed and verified by CFI personnel. An independent geological consultant (Qualified Person) has submitted additional samples collected from the drill core for analyses.
Phase 1 of the 2013 exploration program was designed to assess the northern extension of the Director Vein structure. The six drill holes with assay results to date have shown that the fluorspar mineralization at the Director Vein extends further along strike and at depth from the old Aluminum Company of Canada ("Alcan") workings.
Phase 2 of the 2013 exploration program was designed to evaluate the southern extension of the Director Vein. A trenching program and a geophysical survey conducted in the area during 2012 identified the structure over a strike length of 1,000 metres. The current drill program was planned to evaluate the mineral potential, at depth, of the southern extension of Director Structure and to test the north extension of the adjacent Hares Ears Vein to the west.
Phase 3 of the 2013 exploration program was designed to evaluate the Grebes Nest mineral property, namely the Grebes Nest vein which was identified in the 1940s. The vein was exposed on the east side of Little Lawn Harbour where the structure is approximately 1 metre wide and dips to the north at -70 degrees. Prospecting in the late 1940s traced the structure, through a series of trenches, to the southeast for a reported distance of 3.2 kilometers. In the late 1940s, a 20 metre deep exploration shaft was sunk on the vein about 500 metres east of the coast. A drift was driven along the vein for 60 metres and a number of short cross-cuts were developed. In 1949, five short drill holes were completed approximately 1 km southeast of the shaft and to the south of the projected strike of the structure. These drill holes identified a number of narrow veins in the metasediments. Due to the remote location of the showing and the adequate reserves at the operating mines owned by Alcan, no additional work was undertaken.
Initial exploration information regarding the 2013 exploration program at Director Vein was included in the Company's press releases dated January 16, 2013 and March 12, 2013.
To date, six Phase 1 drill holes have been completed together with 26 additional drill holes in Phase 2 (19 holes in south extension Director Vein and seven holes at Hares Ears Vein) and 26 drill holes in Phase 3 (Grebes Nest area) of the 2013 exploration program. Assay results for remaining completed drill holes in Phase 2 and Phase 3 are pending.
Historic exploration data indicates that there are more than 40 mineralized veins within the CFI property. The three prominent vein structures, however, are the Director Vein, Blue Beach North Vein, and the Tarefare Vein. Probable Reserves of the Blue Beach North and Tarefare veins total approximately 5.4 million tonnes at an average grade of 39.8% CaF2. These Mineral Reserves have been outlined to a vertical depth of 300 metres below the surface, but fluorspar mineralization extends further at depth. The key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, as well as other relevant information, including data verification, with respect to the Blue Beach North and Tarefare veins can be found in a NI 43-101 Technical Report prepared by the Roscoe Postle Associates Inc. dated March 6, 2013, which has been filed by the Company on SEDAR (www.sedar.com).
About the Company
The Company is a specialty mineral resource company engaged in the development of fluorspar deposits located in St. Lawrence, Newfoundland, Canada, and is proposing, through Newspar, its 50/50 joint venture with Arkema, to reactivate the existing Blue Beach North and Tarefare underground fluorspar mines, by expanding the existing mill and constructing a new, environmentally--sound Tailings Management Facility.
Mr. James H. Reeves, Senior Geologist with CFI, who is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Properties, reviewed and approved the technical content of this news release. The information regarding historic production has not been verified by the Company and is provided for reference only.
Material results of the Company's 2012 and 2013 exploration program have been disclosed in the Company's press releases dated March 1, 13 and 30, 2012, April 16 and 24, 2012 and January 16, 2013, March 12, 2013, April 24, 2013, May 8, 2013, June 5, 2013, July 2, 2013, and July 11, 2013 including assay results from eighteen (21) previous drill holes under the Company's diamond drilling program which were disclosed in the Company's press releases dated March 12, 2013, April 24, 2013, May 8, 2013, June 5, 2013, July 2, 2013, July 11, 2013, July 18, 2013, and August 6, 2013.
For more information please see: www.canadafluorspar.com.
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.
Cautionary Note and Forward-Looking Statements
This press release contains forward-looking statements which include, but are not limited to: resource estimates, proposed mining techniques required to construct and produce at expected levels, anticipated timing for completion of metallurgical testing, the commencement of the drilling program, current development and operating objectives and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development including: loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities, the estimated timeline for the development of the project at St. Lawrence, the supply and demand for, and the level and volatility of the price of fluorspar, the assumptions on which resource estimates are based, the receipt of necessary permit, market competition, ongoing relations with employees and impacted communities, and general business and economic conditions. Should one or more of the risks or uncertainties involved in forward-looking statements materialize, or should the assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements are qualified entirely by this cautionary statement and are given only as at the date of this press release. The Company disclaims any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.