VANCOUVER, June 3, 2020 /CNW/ - Sun Metals Corp. (TSXV:
SUNM) ("Sun Metals" or "we" or the
"Company") is pleased to announce its field program at
Stardust, the Company's 100% owned, high-grade copper-gold project
located in northcentral B.C., is planned to begin mid-June with
drill crews mobilized soon after.
The $3.8 million 2020 exploration
program is fully funded and is planned to include diamond drilling
with up to three drill rigs, as well as borehole electromagnetic
geophysical surveys (BHEM) and continued geological studies, while
fully meeting the Company's COVID-19 protocols. Crews are expected
to mobilize on-site June
15th to prepare camp, with drill personnel
planned to follow the first week of July.
OUR COMMITMENT TO SAFETY
Sun Metals has developed
COVID-19 infection and control protocols to meet or exceed all
government requirements, as well as satisfy the Company's mandate
to protect the workers and communities that we rely on. We have
appointed a COVID-19 Coordinator to oversee our COVID-19 protocol
as required by the BC Provincial Health Officer. We are
establishing "work pods" to minimize interactions between different
groups within camp and at the work site. Measures will also be put
in place to allow social distancing within camp, transport to and
from site, and at the work site, as well as modified schedules to
minimize risk to the health of workers and their families.
Dedicated facilities will be created to allow self-isolation in
camp should a worker exhibit symptoms while on site.
OUR ROADMAP TO DISCOVERY
Our 2020 exploration program
will focus on expanding the high-grade 421 zone at Stardust, and
exploring for similar thick high-grade, massive sulphide zones that
this system is known for. In just two years, Sun Metals' technical
team has developed a proven understanding of this system that has
resulted in significant discovery success.
In 2018, our first full season at Stardust, our technical team
drilled one of that year's strongest discovery holes: DDH18-SD-421,
which intersected 100 metres of 5.05% copper equivalent
(CuEq)1. In 2019, we started to delineate what is now
known as the 421 zone, one of the most significant recent
high-grade copper-gold discoveries in Canada. Seventeen pierce points now define the
421 zone and have established continuity. Average mineralized drill
intercepts in this zone are greater than historic drill intercepts
in the nearby Canyon Creek zone². The 421 zone now comprises a
plunge length of 375 metres and remains open for both extension and
expansion.
Diamond drilling this summer will include:
- Targeting the highly prospective and shallow southern up-plunge
extension of the 421 zone near hole 453;
- Completion of hole 445 (2019), targeting the northern down
plunge extents of the 421 zone;
- Targeting vertically below 421 exploring for a vertical feeder
component to the mineralization;
- Test fold targets in carbonate stratigraphy east of 421 zone
for analogous zones;
- Targeting the footwall of the 101 lens for feeder style
mineralization.
The Company will also conduct downhole geophysical surveying,
metallurgical sampling (underway) and ongoing geological studies
and structural interpretation.
TRUE DISTRICT POTENTIAL
Stardust is a
large mineralized system that features a 2.2-kilometre corridor of
mineralization including four mineralization styles typical of
Carbonate Replacement Deposits. Stardust is one of the few CRD
systems in the world with all CRD components fully intact. Having
the ability to view the overall structure of the system provides us
the opportunity to better predict how to most efficiently and
successfully explore it. Stardust's existing Canyon Creek
copper-gold skarn zone is open for expansion and contains a NI
43-101 resource2.
The Company believes quality projects like Stardust are
extremely rare. Fully funded to carry out the 2020 work program,
our technical team is excited for the opportunity to continue to
grow Stardust's potential.
Technical aspects of this news release have been reviewed,
verified and approved by Ian Neill
P.Geo., Vice President Exploration of Sun Metals, who is a
qualified person as defined by National Instrument 43-101
– Standards of Disclosure for Minerals
Projects.
On Behalf of the Board of Directors of
SUN METALS CORP.
Steve Robertson
Chief Executive Officer
Neither 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.
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1
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See press release
dated November 14, 2018 available at www.sunmetals.ca
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2
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See the technical
report titled "Stardust Project Ni 43-101 Technical Report Omineca
Mining Division, British Columbia" with an effective date of
January 8, 2018 for further information, available
at www.sunmetals.ca or under the Company's SEDAR profile
at www.sedar.com
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About Sun Metals
Sun Metals is advancing its 100%
owned flagship, high-grade Stardust Project located in northcentral
British Columbia, Canada. Stardust
is a high-grade polymetallic Carbonate Replacement Deposit with a
rich history. Sun Metals also owns the Lorraine copper-gold
project (joint-ventured with Teck Resources Limited), and the OK
copper-molybdenum project.
The Canyon Creek copper-gold skarn zone at Stardust was the
subject of a 2018, NI 43-101 resource estimate published by the
Company titled "Stardust Project NI 43-101 Technical Report Omineca
Mining Division, British Columbia"
with an effective date of January 8,
2018. In that report, GeoSim Services Inc. provided the
following estimate.
Stardust Project - Canyon Creek zone Mineral Resource
Estimate³:
RESOURCE
CATEGORY
|
TONNES
|
COPPER %
|
ZINC %
|
GOLD G/T
|
SILVER G/T
|
% CU
EQ
|
Indicated
|
985,000
|
1.34
|
0.62
|
1.59
|
36.8
|
2.92
|
Inferred
|
1,985,000
|
1.24
|
0.14
|
1.72
|
30.5
|
2.65
|
(3)
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The cut-off grade
used in the resource estimate was 1.5% copper equivalent (Cu Eq).
Metal price assumptions for the Cu Eq calculation in this table
were $3.00/lb Copper, $1.25/lb Zinc, $1,300/oz Gold and $18/oz
Silver. Adjustment factors to account for differences in relative
metallurgical recoveries of the constituents will depend upon
completion of definitive metallurgical testing. The following
equation was used to calculate copper equivalence: Cu Eq = Copper +
(Zinc x 0.4167) + (Gold x 0.6319) + (Silver x 0.0087). A cut-off
grade of 1.5% Cu Eq represents an in-situ metal value of
approximately $100/tonne which is believed to represent a
reasonable break-even cost for underground mining and processing.
These are not mineral reserves and no work has been completed that
demonstrates economic viability at the Project.
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Cautionary Note Regarding Forward-Looking Statements
All statements in this news release, other than statements of
historical fact, are "forward-looking information" with respect to
Sun Metals within the meaning of applicable securities laws,
including, but not limited to statements with respect to those that
address mineralization at the Stardust project; relative size of
mineralization at the 421 zone, geophysical surveys, use of
instrumentation data, and goals and expectations pertaining to
metallurgical results; the 2020 program and the use of flow-through
dollars; the potential quantity and/or grade of minerals; the
growth potential of the Stardust project; planned mining methods
and mineral processing; break-even cost for the Stardust project;
British Columbia as a reliable
jurisdiction for mining; proposed timing of exploration and
development plans; potential conversion of inferred resources to
measured and indicated resources; potential extension and expansion
of mineral resources; negotiations with the Takla First Nation; the
potential impact of the COVID-19 pandemic; and the focus of the
Company in the coming months. Forward-looking information is often,
but not always, identified by the use of words such as "seeks",
"anticipates", "plans", "continues", "expects", "projects",
"predicts", "potential", "targets", "intends", "believes",
"potential", "budgets", "schedules", "estimates", "forecasts" and
similar expressions (including the negative of such expressions),
or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "should",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made including, among
others, assumptions about future prices of gold and other metal
process; currency exchange rates and interest rates; favourable
operating conditions; political stability; obtaining governmental
approvals and financing on time; obtaining renewals of existing
licences and permits and obtaining required licences and permits;
labour stability; stability in market conditions; availability of
equipment; accuracy of mineral resources; successful resolution of
disputes and anticipated costs and expenditures. Management
believes these estimates and assumptions are reasonable. In
addition, many assumptions are based on factors and events that are
not within the control of Sun Metals and there is no assurance they
will prove to be correct.
Such forward-looking information, involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to the
speculative nature of the Company's business; the Company's
formative stage of development; the Company's financial position;
possible variations in mineralization; conclusions of future
economic evaluations; business integration risks; changes in
project parameters as plans continue to be refined; current
economic conditions; future prices of commodities; fluctuations in
the securities market; fluctuations in currency markets; change in
national and local government, legislation, taxation, controls,
regulation and political or economic development; inability to
obtain adequate insurance to cover risks and hazards; possible
variations in grade or recovery rates; the costs and timing of the
development of new deposits; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; the timing and success of exploration activities
generally; delays in permitting; possible claims against the
Company; the timing of future economic studies; labour and employee
disputes and other risks of the mining industry; delays in
obtaining governmental approvals, financing or the completion of
exploration; relationships with and claims by local communities and
First Nations; negotiations with the Takla First Nation;
assumptions about the effect of the Covid-19 pandemic; and title to
properties as well as those factors discussed in the Annual
Information Form of the Company dated April
1, 2020 in the section entitled "Risk Factors", under Sun
Metals' SEDAR profile at www.sedar.com.
Although Sun Metals has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
information, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Sun Metals disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise unless required by law. Accordingly, readers should
not place undue reliance on forward-looking information.
SOURCE Sun Metals