Kerr Mines Drills 6.1 Meters of 15.02 g/t Gold at Copperstone
TORONTO, June 05, 2019 (GLOBE NEWSWIRE) -- Kerr Mines Inc. (TSX: KER, OTC: KERMF, (“Kerr” or the “Company”) is pleased to announce further drilling results from its resource expansion program at the Copperstone Mine located in Arizona, USA. Additional drilling results from this current phase of drilling at Copperstone are pending and will be released as they become available.
2019 Resource Expansion Highlights:
Drill hole 18-21A-05, an exploration step-out hole, returned an interval of 6.1 meters at 15.02 g/t gold, including 3 meters of 22.4 g/t gold further indicating the zone is significantly of higher grade and thickness than initially anticipated with a total effective mining width of 13.1 meters; Drill hole 18-04-01, a conversion hole returned, an interval of 6.1 meters at 15.91 g/t gold, including 4.6 meters of 21.02 g/t gold with a total effective mining width of 3.2 meters; and, Continued to establish continuity between previously drilled mineralized intercepts in the existing Inferred category while extending mineralization along strike and dip.
Drilling is being accomplished entirely from existing underground access and will affect an area of 500 meters of strike length and 200 meters of elevation, representing approximately 30 per cent of the current resource strike length. The program was designed to increase confidence in the mineral resources and reserves, particularly the portion scheduled for the first three years of production in the recently-completed Pre-Feasibility Study.
The objective of the underground resource expansion program of up to 10,000 meters of drilling, of which we have currently completed 5,000 meters which is currently focused on the D and C zones to increase mine life by adding additional Inferred resources and converting new and existing Inferred resources into Measured and Indicated resources. Updating the mine plan with the new resources will be the final step towards extending mine life once all drilling results have been received.
Giulio T. Bonifacio, Chief Executive Officer stated: “We continue to be very encouraged with the positive drill results to date. Building off the success of the previously announced results from holes 18-21-04(16.8 meters of 40.0 g/t gold) and 18-21-06(10.7 meters of 17.5 g/t gold) our current reported drilling results as shown in “Drill Stations Close View Looking West” further confirm that results are upgrading and expanding our currently defined resources beyond the various mineralized domains with both high grades and further continuity. ”
Hole IDFromToInterval LengthGold*True Thickness**Effective Mining Width*** metermetermetergram/tonnemetermeter18-04-0119.822.214.171.1241.33.2includes19.824.44.621.021.02.418-20-0218.321.33.08.510.61.8includes19.821.31.5126.96.36.1998-21-1188.8.131.52.260.71.6includes41.144.23.06.150.30.818-20-1124.427.43.012.820.72.1includes24.425.91.517.10.41.018-21A-0513.719.86.115.025.513.1includes13.716.83.022.42.86.618-36-0333.5184.108.40.206.515.3includes33.536.63.010.652.66.1* Grades herein are reported as uncapped values. ** Estimated distance between the foot wall and hanging wall of the mineralized zone measured perpendicularly to the edges.*** Effective Mining Width is defined as the estimated distance between the foot wall and hanging wall of the mineralized zone measured horizontally and matches the planned mining method. The mining method used to calculate reserves will extract ore by drift mining along strike in a defined ore stope. The Effective Mining Width is the width that miners will be working within.
18-04-01: Azimuth 230, inclination -6, total length 39.6 meters. This drill hole intercepted inferred mineralization at a better-than-expected gold grade and provided continuity between other intercepts of this domain 13.7 meters down-dip and 21.3 meters up-dip. This intercept is near designed stopes and are expected to allow for the expansion of resources in this area.
18-20-02: Azimuth 218, inclination -32, total length 53.4 meters. This drill hole intercepted grades above deposit average within existing inferred mineralization. This intercept demonstrated continuity of mineralization 10.7 meters along strike and 13.7 meters up-dip within this domain and could allow for conversion from Inferred to a higher classification of resources.
18-21-11: Azimuth 297, inclination -13, total length 80.8 meters. This drill hole should serve to convert existing inferred mineralization into a higher classification and demonstrated continuity of the targeted domain 29.3 meters up-dip and 15 meters on strike from other successful conversion drill holes completed in this program.
18-20-11: Azimuth 208, inclination -32, total length 88.4 meters. This drill hole provided an "in-fill" intercept in Measured mineralization in an existing mineralized domain. This intercept is approximately 7.6 meters away from the conversion intercept provided by drill hole 18-20-02 and is higher grade than was expected for this domain.
18-21A-05: Azimuth 332, inclination -89, total length 51.8 meters. This step-out hole provided an "in-fill" intercept in currently defined mineralization in one domain on the way to testing a deeper exploration target. This intercept is of higher grade than anticipated by the current model (6.1m @ 15.02 g/t gold) and could lead to an increase of contained ounces in future resource modeling. The deeper exploration target was sucessfully intercepted (1.5m @ 3.33 g/t gold) and is significant because of the resulting potential to extend this deeper inferred mineralized zone to the north. Further step-out drilling along strike is warranted.
18-36-03: Azimuth 186, inclination +48, total length 42.7 meters. This intercept is in existing inferred mineralization with gold grades significantly higher than was found in the closest existing drill holes. Further step-out drilling into the area southwest of this intercept is warranted.
The Copperstone zone is the underground extension of the same orebody that was historically mined as an open pit. The pit mined nearly 150 vertical meters of the Copperstone zone and produced in excess of 500,000 gold ounces historically. The Copperstone orebody currently has a horizontal strike length of over 1,500 meters and extends 110 meters beneath the historical open pit. Within this area there are Measured and Indicated resources of 276,100 gold ounces and Inferred resources of 145,700 gold ounces.
Future drilling programs, with the objective of further mine life extension, will target areas beyond the current 2019 Phase II affected area of 500 meters of strike length. The ultimate goal would be the addition of resources along all sections encompassing the entire current resource strike length of over 1,500 meters.
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, SME Registered Member (Geology), who is a “Qualified Person” as defined by NI 43-101 for this project.
About Kerr Mines Inc. Kerr Mines is an Emerging American Gold Producer currently advancing the 100% owned, fully permitted past-producing Copperstone Mine project to production. Copperstone is a high-grade gold project located along a detachment fault mineral belt in mining-friendly Arizona. This gold project in Arizona demonstrates tremendous exploration potential targeting multi-million ounce prospects within a 50 Square kilometers (12,259 acre) land package.
For further information please visit the Kerr Mines website (www.kerrmines.com)
KERR MINES INC.
Giulio T. Bonifacio, Chief Executive Officer
Quality Assurance and Quality Control Statement Procedures have been implemented to assure Quality Assurance Quality Control (QAQC) of drill hole assaying being done at ALS Global, which is ISO Accredited. All intervals of drill holes are being assayed and samples are securely stored for shipment to ALS, with chain of custody documentation through delivery. Mineralized commercial reference standards and coarse blank standards are inserted every 30th 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 selected duplicate check assaying on pulps and coarse rejects at a second accredited assay laboratory. All results will be analyzed for consistency.
For further information contact: Giulio Bonifacio Chief Executive Officer firstname.lastname@example.org 604-318-6760
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.
Figures accompanying this announcement are available at https://www.globenewswire.com/NewsRoom/AttachmentNg/70e71b60-e53d-44d0-8c0f-1d3204199732 https://www.globenewswire.com/NewsRoom/AttachmentNg/9b09c063-8b8d-4ac5-87f6-96a12174b996