Titan Mining Corporation (TSX:TI) (“
Titan” or the
“
Company”) today provided an update on its
exploration program at the Empire State Mine (“ESM”). In the fourth
quarter of 2018, the program focused on the down-plunge extension
and infill drilling of the #2D zone. This zone is an extension of
the large #2 mine which accounted for approximately half of the
tons mined historically at ESM. The #2D zone and the #1D zone,
which lies stratigraphically below, both contain unmined historic
mineralized material.
Significant mineralized intervals from
the #2D and #1D zones include:
- 52.8 feet assaying 8.6% zinc (#2D)
- including 6.3 feet assaying 25.6% zinc
- 21.1 feet assaying 11.8% zinc (#2D)
- including 9.3 feet assaying 23.3% zinc
- 103.4 feet assaying 6.0% zinc (#2D)
- including 16.2 feet assaying 8.8% zinc
- 35.4 feet assaying 5.6% zinc (#2D)
- including 11.3 feet assaying 12.2% zinc
- 43 feet assaying 7.9% zinc (#2D)
- including 10 feet assaying 15.4% zinc and 7.6 feet
assaying 18.0% zinc
- 9.2 feet assaying 25.7% zinc (#1D)
Exploration drilling continues to expand the #2D
mineralized zone down-plunge to the northeast and laterally. To
date, the #2D zone has been extended by over 1,380 feet down-plunge
from the historic mineralization, including an additional 660 feet
from the previously-announced major expansion of the zone (refer to
news release dated November 14, 2018). The assay results
highlighted in this news release are from both step-out and infill
drill holes which intersected multiple mineralized horizons, and
demonstrate the continuity of mineralization along strike and
laterally in the #2D zone. The location of this zone, approximately
650 feet east of the #4 shaft and at an elevation above the bottom
of the shaft, is expected to provide strong operational
advantages.
The recent drilling also intercepted high-grade
mineralization in the #1D zone, located approximately 275 feet
below the #2D zone, and in the same stratigraphic layer as the
historic #1 mine. This mineralization, believed to be the
down-plunge portion of the #1D zone, is one of several targets that
are located close to the current mine infrastructure and have the
potential to increase the near-mine mineral resource base.
“The recent drilling has more than doubled the
strike length of the historic #2D zone and confirmed the continuity
of mineralization,” said Scott Burkett, Vice President,
Exploration. “Our drill results to date clearly indicate that there
is potential to double or even triple the tonnage of the #2D
historic unmined mineralized material of 931,000 tons at a fully
diluted grade of 6.6% zinc. We are also excited about the 2019
exploration program that will test a number of new district targets
and near-mine zones that could further extend the mine life at
ESM.”
Donald Taylor, Chief Executive Officer of Titan,
commented, “The #2D zone is a low cost development opportunity
which will allow mine production to be expanded at ESM, utilizing
excess capacity in the mill. Now that we have laid the foundation
for near-term growth at ESM, we can focus more fully on our
numerous high priority exploration targets to drive longer-term
growth and mine life extension in this very prospective
district.”
SX18-2456 is a vertical infill hole drilled from
surface. The drill hole intercepted three mineralized zones –
Sylvia Lake, #2D and #1D zones – and links the #2D mineralization
from previously-reported holes SX18-2441 and UX18-001 which are 550
feet apart (refer to news release dated November 14, 2018 for
information on these and other previously-reported drill holes).
The hole confirms the continuity of mineralization down-plunge to
the north-northeast. Notable mineralized intervals were:
- 52.8 feet assaying 8.6% zinc (#2D)
- including 6.3 feet assaying 25.6% zinc
- 21.1 feet assaying 11.8% zinc (#2D)
- including 9.3 feet assaying 23.3% zinc
SX18-2458 is a vertical infill hole drilled from
surface. The drill hole had five intercepts in the #2D zone, 360
feet to the north-northeast of the historic mineralization and 290
feet south-southeast of hole SX18-2456. The hole demonstrates the
continuity of mineralization laterally within the mineralized zone.
Significant mineralized intervals were:
- 43 feet assaying 7.9% zinc (#2D)
- including 10.0 feet assaying 15.4% zinc and 7.6 feet
assaying 18% zinc
- 65 feet assaying 2.8% zinc (#2D)
- including 8.0 feet assaying 9.9% zinc
SX18-2449 is a vertical infill hole drilled from
surface. The drill hole had three intercepts in two horizons with
significant mineralization in the #2D zone. The hole was drilled
280 feet to the north-northeast of the historic mineralization and
between previously-reported holes SX18-2441 and SX18-2442. A
notable mineralized interval was:
- 103.4 feet assaying 6.0% zinc (#2D)
- including 16.2 feet assaying 8.8% zinc
SX18-2448 is a vertical step-out hole drilled
from surface. The drill hole had five intercepts in two mineralized
horizons in the #2D zone, extending the historic mineralization 400
feet to the north-northeast. A noteworthy mineralized interval
was:
- 68 feet assaying 4.9% zinc (#2D)
- including 9.4 feet assaying 8.9% zinc
UX18-004 is an inclined infill underground drill
hole. The drill hole had four intercepts in two mineralized
horizons in the #2D zone, linking the historic mineralized zone
from the southwest to the previously-reported step-out drill holes
UX18-001 and UX18-002. A noteworthy mineralized interval was:
- 35.4 feet assaying 5.6% zinc (#2D)
- including 11.3 feet assaying 12.2% zinc
UX18-005 is an inclined step-out underground
drill hole. The drill hole had three intercepts in the #2D zone,
which extend the zone approximately 750 feet down-plunge from the
historic drilling. Notable mineralized intervals were:
- 36.1 feet assaying 3.7% zinc (#2D)
- 12.5 feet assaying 8.8% zinc (#2D)
- including 4.3 feet assaying 21.2% zinc
UX18-006 is an inclined step-out underground
drill hole. The drill hole intercepted two mineralized zones,
extending the #2D mineralization 1,250 feet down-plunge from the
historic drilling. It also intercepted a high-grade zone below the
#2D zone which is believed to be an extension of the #1D historic
mineralization. A significant mineralized interval was:
- 9.2 feet assaying 25.7% zinc (#1D)
For a full list of the #2D, #1D and Sylvia Lake
mineralized intervals from these holes, refer to Table 1.
Figure 1 is a plan view of the #2D zone showing
the location of the drill holes and selected significant
mineralized intervals.
Figure 2 is a schematic long section looking
southwest, showing the #2D zone and other near-mine mineralized
zones at ESM.
2019 Exploration Program
The 2019 exploration budget at ESM is US$9
million. In the first quarter of the year, Titan plans to spend
approximately US$3 million on exploration drilling to test
near-mine and district targets. The district exploration program
targets areas that have the potential to host deposits of at least
five million tons with an economic grade. High priority targets
include Talcville and Cronus where talc deposits have been mined
historically and may be the alteration product of a mineralizing
event. In the area around the historic Edwards mine, untested
targets occur in the favourable marbles that host the mine.
Drilling continues with five exploration drills.
During the first half of 2019, Titan expects to
complete an updated mineral resource estimate and development plan
for the #2D zone.
Establishment of US$18.7 Million Credit
Facility
As previously announced, Titan’s Executive
Chairman committed to financing the Company’s operations into 2019.
In that regard, the Company and a company controlled by Titan’s
Executive Chairman (the “Lender”) entered into a second ranking
secured credit facility of up to US$18.7 million, maturing in
December 2020. US$3.7 million of such facility bears interest at 8%
per annum with the remaining US$15.0 million accruing interest at a
floating rate equal to 7% plus LIBOR per annum. The Bank of Nova
Scotia has consented to this facility provided it is subordinate to
its existing first-ranking credit facility provided to the Company
in the first half of 2018.
In consideration for the facility, the Company
also agreed to issue to the Lender an aggregate of 2,500,000
warrants (the “Warrants”) with each Warrant being exercisable for
one common share of the Company for a period of five years, at an
exercise price of CAD$1.40.
Table 1 – Recent Exploration Drill
Results from ESM
|
|
|
|
|
Drill hole |
From (feet) |
To (feet) |
Interval (feet) |
From (meters) |
To (meters) |
Interval (meters) |
Zn% |
Zone |
|
UX18-004 |
1827.5 |
1862.9 |
35.4 |
557.2 |
568.0 |
10.8 |
5.6 |
#2D Upper |
|
Including |
1836.0 |
1847.3 |
11.3 |
559.8 |
563.2 |
3.4 |
12.2 |
#2D Lower |
|
UX18-004 |
1897.6 |
1905 |
7.4 |
578.5 |
580.8 |
2.3 |
3.1 |
#2D Lower |
|
UX18-004 |
1919 |
1931 |
12 |
585.1 |
588.7 |
3.7 |
2.0 |
#2D Lower |
|
UX18-004 |
1942.9 |
1946.4 |
3.5 |
592.3 |
593.4 |
1.1 |
8.2 |
#2D Lower |
|
|
|
UX18-005 |
1146.7 |
1182.8 |
36.1 |
349.6 |
360.6 |
11.0 |
3.7 |
#2D Upper |
|
UX18-005 |
1236.4 |
1242.5 |
6.1 |
377.0 |
378.8 |
1.9 |
3.0 |
#2D Lower |
|
UX18-005 |
1274.0 |
1286.5 |
12.5 |
388.4 |
392.2 |
3.8 |
8.8 |
#2D Lower |
|
Including |
1282.2 |
1286.5 |
4.3 |
390.9 |
392.2 |
1.3 |
21.2 |
#2D Lower |
|
|
|
UX18-006 |
1027.6 |
1039.3 |
11.7 |
313.3 |
316.9 |
3.6 |
1.9 |
#2D Upper |
|
UX18-006 |
1271.6 |
1280.8 |
9.2 |
387.7 |
390.5 |
2.8 |
25.7 |
#1D |
|
|
|
SX18-2448 |
1750 |
1753.8 |
3.8 |
533.5 |
534.7 |
1.2 |
4.1 |
Sylvia Lake |
|
SX18-2448 |
2321 |
2326 |
5 |
707.6 |
709.1 |
1.5 |
1.5 |
#2D Upper |
|
SX18-2448 |
2346 |
2366 |
20 |
715.2 |
721.3 |
6.1 |
1.2 |
#2D Upper |
|
SX18-2448 |
2376 |
2386 |
10 |
724.4 |
727.4 |
3.0 |
3.0 |
#2D Upper |
|
SX18-2448 |
2401 |
2426 |
25 |
732.0 |
739.6 |
7.6 |
1.1 |
#2D Upper |
|
SX18-2448 |
2481.0 |
2549.0 |
68.0 |
756.4 |
777.1 |
20.7 |
4.9 |
#2D Lower |
|
Including |
2519.7 |
2529.1 |
9.4 |
768.2 |
771.1 |
2.9 |
8.9 |
#2D Lower |
|
|
|
SX18-2449 |
1753.2 |
1756.4 |
3.2 |
534.5 |
535.5 |
1.0 |
13.5 |
Sylvia Lake |
|
SX18-2449 |
2410.6 |
2514.0 |
103.4 |
734.9 |
766.5 |
31.5 |
6.0 |
#2D Upper |
|
Including |
2480.2 |
2496.4 |
16.2 |
756.2 |
761.1 |
4.9 |
8.8 |
#2D Upper |
|
SX18-2449 |
2551.5 |
2556.1 |
4.6 |
777.9 |
779.3 |
1.4 |
19.3 |
#2D Lower |
|
SX18-2449 |
2574.0 |
2586.2 |
12.2 |
784.8 |
788.5 |
3.7 |
8.8 |
#2D Lower |
|
|
|
SX18-2456 |
1730.75 |
1732.25 |
1.5 |
527.7 |
528.1 |
0.5 |
27.8 |
Sylvia Lake |
|
SX18-2456 |
2536.4 |
2589.2 |
52.8 |
773.3 |
789.4 |
16.1 |
8.6 |
#2D Upper |
|
Including |
2575.5 |
2581.8 |
6.3 |
785.2 |
787.1 |
1.9 |
25.6 |
#2D Upper |
|
SX18-2456 |
2623.1 |
2644.2 |
21.1 |
799.7 |
806.2 |
6.4 |
11.8 |
#2D Lower |
|
Including |
2629.4 |
2638.7 |
9.3 |
801.6 |
804.5 |
2.8 |
23.3 |
#2D Lower |
|
SX18-2456 |
2926.5 |
2943.25 |
16.75 |
892.2 |
897.3 |
5.1 |
1.6 |
#1D |
|
|
|
SX18-2458 |
1765 |
1772 |
7 |
538.1 |
540.2 |
2.1 |
2.5 |
Sylvia Lake |
|
SX18-2458 |
2090 |
2096 |
6 |
637.2 |
639.0 |
1.8 |
1.0 |
#2D Upper |
|
SX18-2458 |
2316 |
2320 |
4 |
706.1 |
707.3 |
1.2 |
4.8 |
#2D Upper |
|
SX18-2458 |
2371.0 |
2414.0 |
43.0 |
722.9 |
736.0 |
13.1 |
7.9 |
#2D Upper |
|
Including |
2377.0 |
2387.0 |
10.0 |
724.7 |
727.7 |
3.0 |
15.4 |
#2D Upper |
|
Including |
2395.0 |
2402.6 |
7.6 |
730.2 |
732.5 |
2.3 |
18.0 |
#2D Upper |
|
SX18-2458 |
2428.0 |
2493.0 |
65.0 |
740.2 |
760.1 |
19.8 |
2.8 |
#2D Lower |
|
Including |
2436.0 |
2444.0 |
8.0 |
742.7 |
745.1 |
2.4 |
9.9 |
#2D Lower |
Note: It is not possible to determine the true width of the
zone(s) based on the drill density and no representation is made
here regarding true width of the zone(s).
Figure 1 – Plan View of #2D Zone Showing Drill Hole
Locations
http://www.globenewswire.com/NewsRoom/AttachmentNg/1b394245-ec35-400f-943b-3bc053dad528
Figure 2 – Schematic Long Section
Showing #2D and Other Near-Mine Mineralized Zones at
ESM
http://www.globenewswire.com/NewsRoom/AttachmentNg/ce4ab9fc-f582-4aef-9ce1-4480f5341af8
Qualified Person
The results of the Titan drilling have been
reviewed, verified and compiled by Donald R. Taylor, MSc., PG,
Chief Executive Officer of Titan, a qualified person as defined by
National Instrument 43-101 (NI 43-101). Mr. Taylor has 30 years of
mineral exploration and mining experience, and is a Registered
Professional Geologist through the SME (registered member
#4029597).
Assays and Quality Assurance/Quality
Control
To ensure reliable sample results, the Company
has a rigorous QA/QC program in place that monitors the
chain-of-custody of samples and includes the insertion of blanks
and certified reference standards at statistically derived
intervals within each batch of samples. Core is photographed and
split in half with one-half retained in a secured facility for
verification purposes.
Sample preparation (crushing and pulverizing)
has been performed at ALS Geochemistry, an ISO/IEC accredited lab
located in Sudbury, Ontario, Canada. ALS Minerals Laboratories
prepares a pulp of all samples and sends the pulps to their
analytical laboratory in Vancouver, B.C., Canada, for analysis. ALS
analyzes the pulp sample by an aqua regia digestion (ME-ICP41 for
35 elements) with an ICP – AES finish including Cu (copper), Pb
(lead), and Zn (zinc). All samples in which Cu (copper), Pb (lead),
or Zn (zinc) are greater than 10,000 ppm are re-run using aqua
regia digestion (Cu-OG46; Pb-OG46; and Zn-OG46) with the elements
reported in percentage (%). Silver values are determined by an aqua
regia digestion with an ICP-AES finish (ME-ICP41) with all samples
with silver values greater than 100 ppm repeated using an aqua
regia digestion overlimit method (Ag-OG46) calibrated for higher
levels of silver contained. Gold values are determined by a 30 g
fire assay with an ICP-AES finish (Au-ICP21).
About Titan Mining
Corporation
Titan is an Augusta Group company which produces
zinc concentrate at its 100%-owned Empire State Mine (“ESM”)
located in New York State. ESM is a group of zinc mines which
started production in the early 1900s. Titan is built for growth,
focused on value and committed to excellence. The company’s shares
are listed under the symbol "TI" on the Toronto Stock Exchange. For
more information on the Company, please visit our website at
www.titanminingcorp.com.
Contact
For further information, please contact:
Jerrold Annett – Senior Vice President, Corporate
DevelopmentTelephone: 416-366-5678 Ext. 207 | Email:
jannett@titanminingcorp.com
Jacqueline Allison – Vice President, Investor Relations
and Strategic Analysis Telephone: 416-366-5678 Ext. 205 |
Email: jallison@titanminingcorp.com
Cautionary Note Regarding
Forward-Looking Information
This news release contains certain
forward-looking statements. Words such as “expects”, “anticipates”
and “intends” or similar expressions are intended to identify
forward-looking statements. Forward-looking information is
necessarily based on a number of opinions, assumptions and
estimates that, while considered reasonable by the Company as of
the date of this press release, are subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, use of proceeds or timing of events to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to the
factors described in greater detail in the “Risks and
Uncertainties” section and other sections of the Company’s
Management’s Discussion and Analysis for the year ended December
31, 2017, available at www.sedar.com. No securities regulatory
authority has expressed an opinion about the securities described
herein and it is an offence to claim otherwise. Titan undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required by law.
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