Kerr Mines Inc. (TSX:KER) (OTC:KERMF) (FRA:7AZ1) (“Kerr” or
the “Company”) is pleased to announce final results of its
Phase I underground drilling program. KER-17U-50 further extends
the Copperstone Zone by returning a 7.3 meter drill hole interval
with 102.7 g/t gold (Au). This conclusion of Phase I of the
underground program confirms significant gold mineralization and
increases the potential in expanding the resource at the Company’s
Copperstone Project in Arizona.
Highlights
• New intervals from underground drilling the Copperstone Zone
include:
- 3.5 meters @ 20.3 g/t Au and 0.38 % Cu (KER-17U-21B)
- 7.3 meters @ 102.7 g/t Au and 0.08 % Cu (KER-17U-50)
- 5.0 meters @ 8.1 g/t Au and 0.74 % Cu (KER-17U-51)
- 3.2 meters @ 7.8 g/t Au and 0.08 % Cu (KER-17U-52)
- 3.4 meters @ 9.5 g/t Au and 4.01 % Cu (KER-17U-53)
- 2.8 meters @ 7.6 g/t Au and 0.15 % Cu (KER-17U-57)
- 3.9 meters @ 7.4 g/t Au and 0.34 % Cu (KER-17U-58)
- 3.5 meters @ 6.2 g/t Au and 0.03 % Cu (KER-17U-68)
• Established continuity between previously mineralized
zones• Open for further expansion along strike and dip with
future drilling.
Martin Kostuik, President, stated, “these
results conclude the very successful Phase I underground program
which was designed to upgrade the resource and will be the
cornerstone to the forthcoming Copperstone Project resource
statement. We are progressing well on all fronts to fully realise
the numerous accretive aspects of the project to complete the
Copperstone Project pre-feasibility study by the end of this
quarter.”
The Copperstone Zone detachment fault system
historically produced over 500,000 ounces of gold from an open pit.
Continuing below the open pit, the down-dip extension of the
Copperstone Zone is being further enhanced by the Phase I drilling
program. The Phase I 8,000 meter surface and underground drilling
program is complete. The Phase I program tested mineralization
along strike and up/down-dip in the D and C portions of the
Copperstone Zone and in the newly announced parallel Footwall Zone
(see press release dated January 17, 2018).
KER-17U-21B was drilled to
test the up-dip mineralized extension potential within the western
portion of the Copperstone Zone. This hole was drilled toward the
northwest at a downward inclination of 70 degrees, in a mineralized
interval associated with limestone containing silicic alteration,
resulted in 3.5 meters @ 20.3 g/t gold (Au) and 0.38% copper (Cu).
Combining gold and gold equivalent copper grades results in a total
of 21.0 g/t Au equivalent (AuEq) for the interval.
KER-17U-26 was designed to
upgrade resources and demonstrate continuity within the
northwestern extension of the Copperstone Zone. KER-17U-26 was
drilled towards the southeast at an upward inclination of 78
degrees. Gold mineralization is associated with limestone and skarn
with silicic alteration and resulted in 1.7 meters @ 5.4 g/t Au and
0.86% Cu for a 6.8 g/t AuEq.
KER-17U-34 was drilled to test
the up-dip continuity within western extents of the Copperstone
Zone. KER-17U-34 was collared in footwall extending upward through
the Copperstone Zone into the hanging wall and at an upward
inclination of 58 degrees. The resulting mineralization is
associated with limestone containing ferric and silicic alteration
and resulted in 2.4 meters @ 4.7 g/t Au and 0.82% Cu for a 6.0 g/t
AuEq.
KER-17U-50 tested the down-dip
continuity in the Copperstone Zone. KER-17U-50 was drilled toward
the footwall at a downward inclination of 19 degrees and is
collared in hanging wall mineralization. Gold mineralization found
within KER-17U-50 is associated with limestone containing ferric
and silicic alteration and resulted in 7.3 meters @ 102.7 g/t Au
and 0.08% Cu for a 102.8 g/t AuEq.
KER-17U-51 tested the down-dip
continuity in the Copperstone Zone. KER-17U-51 was drilled from the
hanging wall toward the southwest at a downward inclination of 32
degrees. Gold mineralization found within KER-17U-51 is associated
with limestone containing ferric and silicic alteration and
resulted in 5.0 meters @ 8.1 g/t Au and 0.74% Cu for a 9.3 g/t
AuEq.
KER-17U-52 tested the down-dip
continuity in the Copperstone Zone. KER-17U-52 was drilled from the
hanging wall toward the southwest at a downward inclination of 40
degrees. Gold mineralization found within KER-17U-52 is associated
with limestone containing ferric, silicic and chloritic alteration
and resulted in 3.2 meters @ 7.8 g/t Au and 0.08% Cu for a 7.9 g/t
AuEq.
KER-17U-53 tested the down-dip
continuity in the Copperstone Zone. KER-17U-53 was drilled from the
hanging wall toward the southwest at a downward inclination of 52
degrees. Gold mineralization found within KER-17U-53 is associated
with limestone and skarn with silicic, hematitic and magnetic
alteration. The resulting mineralization is 6.1 meters @ 5.3 g/t Au
and 2.21% Cu for a 9.0 g/t AuEq. Significant gold and copper
mineralization, found within the same interval, contained 3.4
meters @ 9.5 g/t Au and 4.01% Cu for a 16.1 g/t AuEq.
KER-17U-57 tested the down-dip
extension of the Copperstone Zone. KER-17U-57 was drilled from the
hanging wall toward the west at a downward inclination of 17
degrees. Gold mineralization occurs in limestone and skarn with
silicic, hematitic and magnetic alteration and resulted in 2.8
meters @ 7.6 g/t Au and 0.15% Cu for a 7.9 g/t AuEq.
KER-17U-58 tested the down-dip
continuity in the Copperstone Zone. KER-17U-58 was drilled from the
hanging wall toward the west at a downward inclination of 35
degrees. Gold mineralization was found within units of skarn with
magnetitic alteration. The mineralized interval extended into the
footwall phyllite material and resulted in two intervals of 3.9
meters @ 7.4 g/t Au and 0.34% Cu for a 8.0 g/t AuEq and 3.0 meters
@ 6.0 g/t Au and 0.15% Cu for a 6.2 g/t AuEq.
KER-17U-59 tested the down-dip
extension in the Copperstone Zone. KER-17U-59 was drilled from the
hanging wall toward the west at a downward inclination of 12
degrees. Gold mineralization was found in limestone and skarn with
silicic, hematitic and magnetitic alteration. The mineralized
interval extended through the limestone into the footwall phyllite
and resulted in 3.4 meters @ 5.6 g/t Au and 0.97% Cu for a 7.2 g/t
AuEq.
KER-17U-65 tested the down-dip
extension in the Copperstone Zone. KER-17U-65 was drilled from the
hanging wall toward the northwest at a downward inclination of 50
degrees. Gold mineralization was found within quartz latite
porphyry with sericitic and argillitic alteration. The mineralized
interval resulted in 3.6 meters @ 3.8 g/t Au and 2.83% Cu for a 8.5
g/t AuEq.
KER-17U-66 tested the down-dip
extension in the Copperstone Zone. KER-17U-66 was drilled from the
hanging wall toward the west at a downward inclination of 15
degrees. Gold mineralization was found within quartz latite
porphyry containing argillitic alteration. The mineralized interval
resulted in 4.6 meters @ 3.9 g/t Au and 0.30% Cu for a 4.4 g/t
AuEq.
KER-17U-68 tested the down-dip
extension in the Copperstone Zone. KER-17U-68 was drilled from the
hanging wall toward the southwest at a downward inclination of 55
degrees. Gold mineralization was found within the footwall phyllite
containing argillitic and hematitic alteration. The mineralized
interval resulted in 3.5 meters @ 6.2 g/t Au.
KER-17U-74 tested the down-dip
extension in the Copperstone Zone. KER-17U-74 was drilled from the
hanging wall at a downward inclination of 90 degrees. Gold
mineralization was found within shear zone containing hematite
altered limestone. The mineralized interval resulted in 3.0 meters
@ 5.5 g/t Au and 0.63% Cu for a 6.6 g/t AuEq.
Table 1. Selected Drill Results
Hole ID |
Zone |
From |
To |
Interval* |
Interval* |
Au |
Cu |
AuEq |
|
|
m |
m |
m |
ft |
g/tonne |
% |
g/tonne |
KER-17U-21B |
D |
12.8 |
16.3 |
3.5 |
11.5 |
20.3 |
0.38 |
21.0 |
KER-17U-26 |
D |
34.4 |
36.1 |
1.7 |
5.6 |
5.4 |
0.86 |
6.8 |
KER-17U-34 |
C |
46.0 |
48.5 |
2.4 |
8.0 |
4.7 |
0.82 |
6.0 |
KER-17U-50 |
D |
21.0 |
28.3 |
7.3 |
24.0 |
102.7 |
0.08 |
102.8 |
includes |
|
25.6 |
28.3 |
2.7 |
9.0 |
6.6 |
1.06 |
8.4 |
KER-17U-51 |
D |
17.1 |
24.4 |
7.3 |
23.9 |
5.7 |
1.05 |
7.5 |
includes |
|
17.1 |
22.1 |
5.0 |
16.5 |
8.1 |
0.74 |
9.3 |
KER-17U-52 |
D |
16.5 |
21.3 |
4.9 |
16.0 |
5.2 |
0.21 |
5.5 |
includes |
|
16.5 |
19.7 |
3.2 |
10.5 |
7.8 |
0.08 |
7.9 |
KER-17U-53 |
D |
15.8 |
21.9 |
6.1 |
20.0 |
5.3 |
2.21 |
9.0 |
and |
|
18.6 |
21.9 |
3.4 |
11.0 |
9.5 |
4.01 |
16.1 |
includes |
|
20.7 |
21.3 |
0.6 |
2.0 |
37.1 |
6.32 |
47.5 |
KER-17U-57 |
D |
28.4 |
39.0 |
10.6 |
34.7 |
4.7 |
0.51 |
5.5 |
includes |
|
31.1 |
33.8 |
2.8 |
9.1 |
7.6 |
0.15 |
7.9 |
KER-17U-58 |
D |
15.5 |
22.1 |
6.5 |
21.4 |
4.5 |
0.25 |
4.9 |
includes |
|
17.4 |
21.2 |
3.9 |
12.7 |
7.4 |
0.34 |
8.0 |
and |
|
35.4 |
38.4 |
3.0 |
10.0 |
6.0 |
0.15 |
6.2 |
KER-17U-59 |
D |
27.6 |
34.0 |
6.4 |
21.0 |
3.1 |
0.59 |
4.0 |
includes |
|
27.6 |
31.0 |
3.4 |
11.2 |
5.6 |
0.97 |
7.2 |
KER-17U-65 |
D |
12.3 |
16.7 |
4.4 |
14.3 |
3.1 |
2.36 |
7.0 |
includes |
|
13.1 |
16.7 |
3.6 |
11.8 |
3.8 |
2.83 |
8.5 |
KER-17U-66 |
D |
18.0 |
22.6 |
4.6 |
15.0 |
3.9 |
0.30 |
4.4 |
KER-17U-68 |
D |
21.5 |
25.0 |
3.5 |
11.5 |
6.2 |
0.03 |
6.2 |
KER-17U-74 |
D |
34.1 |
37.2 |
3.0 |
10.0 |
5.5 |
0.63 |
6.6 |
includes |
|
34.1 |
36.4 |
2.3 |
7.5 |
7.3 |
0.70 |
8.5 |
* not
true width |
|
|
|
|
|
|
|
|
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, Registered Geologist., who is a “Qualified
Person” as defined by NI 43-101 for this project.
About Kerr Mines Inc. Kerr
Mines is a North American gold development and exploration company
currently advancing the 100% owned, fully permitted past-producing
Copperstone Mine project. Copperstone is a high-grade gold project
located along a detachment fault mineral belt in mining-friendly
Arizona. The project demonstrates significant upside exploration
potential within a 4,775 hectare (11,800 acres) land package that
includes a production history of over 500,000 ounces of gold. The
Company’s current focus is on maximizing Copperstone’s potential by
defining and expanding current resources and strengthening the
mine’s economics leading to a production decision.
Quality Assurance and Quality Control
StatementProcedures have been implemented to assure
Quality Assurance Quality Control (QAQC) of drill hole assaying
being done at American Assay Laboratories (American), which is ISO
Accredited. All portions of drill holes are being assayed and
samples are securely stored for shipment to American, with chain of
custody documentation through delivery. Mineralized commercial
reference standards and coarse blank standards are inserted every
20th 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 1)
selected duplicate assaying being done at a second accredited assay
laboratory, 2) duplicate assaying of selected intervals of core
(quarter splits) and reverse circulation drilling samples of
selected remaining laboratory rejects. All results will be analyzed
for consistency.
Metallurgical test work continues by Resource
Development Incorporated of Denver to enhance previously
established recoveries for gold and copper.
Gold equivalent values for contained metal were
calculated using $US 1,250/ oz Au and $3.00 /lb Cu.
For further information
contact:Claudio Ciavarella Chief Executive
Officercciavarella@kerrmines.com 416-855-9305
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.