Silver Range Resources Acquires New Zinc-Lead-Silver Projects
June 19 2014 - 11:08AM
Marketwired
Silver Range Resources Acquires New Zinc-Lead-Silver Projects
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 19, 2014) -
Silver Range Resources Ltd. (TSX-VENTURE:SNG) ("Silver Range") is
pleased to announce that it has purchased 100% interests in three
advanced-stage zinc-lead±silver prospects and acquired a
strategically located claim that lies alongside its wholly-owned
Keg Deposit. All of these claim blocks are located in Yukon
Territory and are well-situated relative to infrastructure.
"These acquisitions greatly strengthen Silver Range's mineral
holdings and are a significant milestone as we focus on projects
with strong development and large-scale production potential,"
stated Doug Eaton, CEO of Silver Range. "The Mel Property has a
sizeable, open-ended historical resource with favourable
metallurgy, and there is excellent potential for new discoveries in
multiple zones. We expect to work with local first nations and
other partners to advance this newly acquired project, the Keg
Deposit and Silver Range's other prospects as rapidly as
possible."
Silver Range is well funded with no debt and approximately $3.2
million in unallocated working capital.
The newly purchased claims were acquired through two agreements.
The first agreement was with Kobex Minerals Inc. ('Kobex") and
involved the purchase of 100% interests in the Mel and Barb
properties for a sum of $200,000. A finder's fee of $20,000 is
payable to an arms' length party in regard to this agreement. The
Mel property is subject to an underlying 1% net smelter return
royalty payable to Breakwater Resources Ltd. Both properties are
subject to another 1% net smelter return royalty payable to Kobex,
which can be purchased at any time by Silver Range for
$1,000,000.
The second agreement is between Silver Range and Strategic
Metals Ltd., Silver Range's largest shareholder and a related
party. This agreement involved an exchange of property assets, with
Silver Range receiving 100% interests in the Michelle property and
BP4 claim in return for a 100% interest in the Mint property. The
BP4 claim is subject to a 2% net smelter return royalty payable to
an arms' length individual. There are no royalty interests on
either the Michelle or Mint properties. The property exchange
allows Silver Range to focus on its development objectives and
preserve capital by disposing of a non-core property.
The Mel property is the best quantified of the three new
projects and details concerning it are summarized below. At the
Michelle property, 16 zones of zinc-lead-silver±galleum
mineralization have been discovered within a 16 by 6 km area.
Significant drill intercepts include 22.71% zinc, 17.38% lead and
510.7 g/t silver and 253 ppm gallium over 7.94 m. The Barb property
also hosts high-grade silver-zinc-lead mineralization. Further
descriptions of mineralization at the Michelle and Barb properties
are available on the Silver Range web site
(www.silverrangeresources.com).
The Mel property is located within a belt of important
sedimentary exhalative zinc-lead deposits, which includes the
Howard's Pass deposits of Chihong Canada Mining, the Tom and Jason
deposits of HudBay Minerals, the Cirque deposit of Teck
Resources/Korea Zinc, and the Akie deposit of Canada Zinc Metals.
It is situated 80 km east of Watson Lake and 40 km north of the
Alaska Highway in southeastern Yukon Territory. The property
consists of 257 mineral claims.
At the Mel property, Cambrian to Ordovician marine sediments and
similar age volcanics host zinc-lead-barite mineralization. The
main host units are carbonate and clastic sediments that are
broadly folded in a north-south trending overturned syncline. This
synclinal structure has been cut by a number of north and
northeast-trending faults. Four sediment-hosted, zinc-rich zones
have been identified on the Mel property: the Main Mel, Jeri, Jeri
North and Mel East Zones.
Mineralization at the Main Mel Zone consists of coarse-grained
sphalerite and galena disseminated throughout a mixture of
mudstone, silica-carbonate and coarsely crystalline barite. Minor
amounts of fine-grained, sparsely disseminated pyrite occur
locally. In the late 1980s and 1990s, the Main Mel Zone was the
focus of diamond drill programs that resulted in an indicated
mineral resource of 6.78 million tonnes grading 7.1% zinc, 2.03%
lead and 54.69% barite by International Barytex Resources Ltd. in
1994 using an inverse distance squared technique. The reader is
cautioned that this is a historical resource estimate. Sufficient
work has not yet been completed by Silver Range to categorize this
as a current resource; however, data collected by previous
operators is considered to be reliable and consistent with industry
standards at the time. The Main Mel Zone is open downdip and has
good potential to host a larger zinc-lead resource.
Significant mineralization has also been intersected in several
diamond drill holes and trenches completed by previous owners at
the Jeri and Jerri North Zones, where zinc-bearing hydrothermal
dolomite and silicified dolomite are intermittently exposed along a
syncline fold limb for several kilometres. Trenching on the Jeri
Zone has cut bedrock grading up to 16.5% zinc over 5 m while
drilling has yielded intercepts of up to 13.1% zinc over a core
length of 3.37 m. Diamond drilling at the Jeri North Zone has
returned intercepts up to 15.6% zinc over a core length of 5.1 m.
Areas of mineralization at both the Jeri and Jeri North Zones are
open to extension. Several geophysical targets along the Jeri Zone
and large areas of elevated lead-zinc soil geochemistry and
associated geophysical anomalies at the Mel East Zone have not been
drill tested.
Preliminary metallurgical testing on drill core from the Main
Mel Zone by Lakefield Research indicates that after grinding to 100
mesh, the mineralization responded well to flotation and yielded
concentrates ranging from 60.9 to 64.7% zinc, 78.0 to 79.6% lead
and 90.3 to 94.4% barite with recoveries of 90.3 to 96.2% for zinc,
97.7 to 98.0 for lead and 88 to 90.9% for barite. A later,
larger-scale test was done for barite concentrate market
evaluation. Concentrate grading 95.1% barite with a recovery of
92.6% was produced from feed grading 53.5% barite.
Proposed exploration by Silver Range in 2014 at the Mel property
includes: preparation of orthophotos and topographic maps;
heritage, environmental and geotechnical studies; geological
mapping; and, assay confirmation, all to facilitate preparation of
a NI43-101 report and permitting for future exploration and
development programs.
Technical information in this news release has been approved by
Matthew R. Dumala, P. Eng., a geological engineer with Archer,
Cathro & Associates (1981) Limited and qualified person for the
purposes of NI43-101.
ON BEHALF OF THE BOARD
W. Douglas Eaton, President and Chief Executive Officer
Neither the 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.
Silver Range Resources Ltd. - Corporate InformationW. Douglas
EatonPresident and C.E.O.(604) 688-2568Silver Range Resources Ltd.
- Corporate InformationBruce A. YoungmanChairman(604)
687-2522Silver Range Resources Ltd. - Investor InquiriesRichard
DrechslerVice-President, Communications(604) 687-2522 or NA
Toll-Free: (888)
688-2522rdrechsler@silverrangeresources.comwww.silverrangeresources.com
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