Kerr Mines Provides Operational and PFS Update
March 02 2018 - 5:30AM
Kerr Mines Inc. (TSX:KER) (OTC:KERMF) (FRA:7AZ1)
(“Kerr” or the “Company”) is pleased to announce
that, following the successful 2017 Phase I exploration program in
the Copperstone and Footwall zones, the Company is continuing with
a 15,000 meter 2018 Phase II program with the objective to expand
the mineral resource. The 2017 Phase I program confirmed
significant gold mineralization and increased the potential in
expanding the resource at the Company’s Copperstone Project in
Arizona. In addition, Kerr is on-track to announce the results of
its pre-feasibility study including an NI 43-101 resource statement
at the end of March, 2018. The study will enable the Company to
make a well informed production decision shortly thereafter.
Martin Kostuik, President, stated, “These
results conclude the very successful Phase I program which was
designed to confirm and upgrade the resource. We are excited to
share this and our plans for 2018 during PDAC at our booth # 2947 -
actions for 2018 include the completion of our pre-feasibility
study in Q1, the announcement of our production decision and the
execution of the Phase II exploration program.”
Re-Cap of 2017 Phase I Exploration
ProgramThe 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 and the parallel Footwall Zone have been further
enhanced by the Phase I drilling program. The Phase I 8,159 meter
surface and underground drilling program is complete. The 85 hole
Phase I program was a combination of surface core and reverse
circulation and underground core drilling. 4,854 meters was
dedicated to the Footwall Zone where a new zone of mineralization
was established only 150 meters from the Copperstone Zone. This new
Footwall Zone of 375 meters along strike by 350 meters along dip
provides an immense opportunity to further expand mineralized
resources (see press release dated January 17, 2018). The Phase I
program also tested mineralization along strike and up/down-dip in
the D and C portions of the Copperstone Zone. 3,305 meters of
underground core were dedicated to confirmation, extension and
continuity goals.In total, core was logged for mineralization,
alteration, structure, rock quality and lithology. 5,248 fire
assays, 50 metallic screen and 244 ICP analyses were performed. In
addition, 665 holes of historic core drill logs totaling 83,265
meters were re-interpreted for alteration and digitized for
inclusion into the 2017 resource estimate program database.For a
full table of results and map for the 2017 Phase I Program– see
http://kerrmines.com/category/news/
2018 Pre-Feasibility StudyThe
study is on track for announcement at end of March,
2018. Operating and capital costs, ore production,
metallurgical recovery and revenue generation for the Project are
being summarized for inclusion in a financial model which includes
operating cash flows and rates of return. Trade-offs in the Study
include owner versus contractor operation of the mine, a comparison
of several mining methods and ore concentrate production and sale
versus production and sale of final doré.
2018 Phase II Exploration
ProgramBuilding on the achievements of the 2017
exploration program, the Company is continuing to advance the
Project with further drilling and assaying in 2018. The objectives
of the 2018 Phase II Exploration Program are to:
- Increase the mineral resource and improve the mineral
classification in the Copperstone Zone.
- Increase the mineral resource and improve the mineral
classification in the parallel Footwall Zone which is located
within 150 meters of the Copperstone Zone.
- Better define mining stopes in the D and C zones of the
Copperstone Zone.
The 2018 Phase II Program plans for up to 15,000
meters of infill and extensional drilling primarily in the
Copperstone Zone. Over 2,900 meters of underground access is in
place, including the additional access along strike added during
the Phase I program. The 2018 program will utilize this access to
target areas of mineralization within which to improve continuity
and extend the mineralized zones into areas never before drilled
from underground.
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.
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.