VANCOUVER, BC, Nov. 11, 2020 /CNW/ - Sun Metals Corp. (TSXV:
SUNM) ("Sun Metals" or "we" or the "Company") is pleased to
announce additional positive drill results from the Stardust
project that include high-grade mineralization returned from an
open area within the established 900 metre (m) plunge-length
corridor of high-grade copper-gold mineralization. The 100% owned
Stardust project is located in northcentral British Columbia.
Drill hole DDH20-SD-466 was drilled into an area near historic
drill hole LD2002-09 which was significantly enriched in gold
relative to copper (Figures 2 and 3). The mineralization returned
was more conventional regarding metals ratios with similar value in
copper and gold, but remains a strong high-grade intercept in an
area that is much closer to surface than other recently reported
intercepts. The hole intercepted:
- 3.40% Copper Equivalent (CuEq)1 over 17.45m2 grading 1.37% Copper (Cu),
1.70 grams per tonne (g/t) Gold (Au) and 39.7 g/t Silver (Ag), from
373.35m
- Including 7.56% CuEq over 5.50m
grading 3.02% Cu, 3.83 g/t Au and 87.2 g/t Ag, from 384.35m
"As we explore the detailed nature of the Stardust mineralized
system, the thickness and grade of the intercepts continue to
impress. However, equally impressive is the strength of the
hydrothermal system driving it. For instance, drill hole
DDH20-SD-463 returned 78.15 m of
0.28% CuEq from a 150 m zone of
hydrothermal alteration. The drill hole targeted a significant step
out, below a lens in the Canyon Creek zone and provided some
valuable insight into the larger-scale plumbing system that
contains the higher-grade mineralization. Additional work will be
needed to zero in on the high-grade in this area but we know the
environment is ripe for a massive sulphide with all of the
hydrothermal preparation in the area." states Sun Metals President
& CEO Steve Robertson.
______________________________
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1
Assumptions used in USD for the copper equivalent calculation were
metal prices of $3.00/lb. Copper, $1,900/oz Gold, $23/oz Silver,
$1.10/lb. Zinc and recovery is assumed to be 100% as no
metallurgical test data is available. The following equation was
used to calculate copper equivalence: CuEq = Copper (%) + (Gold
(g/t) x 0.9240) + (Silver (g/t) x 0.0112) + (Zinc (%) x
0.3667).
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2 True
widths of the reported mineralized intervals have not been
determined.
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Other Drill holes
DDH20-SD-461M tested for a southern
extension of the 421 zone. The hole intersected a
170 m interval of hydrothermal
alteration along the mineralized trend. Drilling intercepted
22.10m of lower grade
mineralization in the projected lower extension of two lenses
of the Canyon Creek zone, with one section returning 1.72% CuEq
over 5.05m. The hole
intersected numerous porphyritic quartz diorite intervals at the
projected intersection depth of the 421 zone, suggesting that some
of the mineralization may have been displaced.
DDH20-SD-462 was drilled into a fold target to the east of the
421 zone. The target for this hole was the projected hinge zone of
folded limestone, prospective for hosting additional 421 style
mineralization. The hole intersected limestone at a depth of
610m with hydrothermal alteration and
a small base and precious metal vein containing elevated zinc, lead
and silver. The Sun Metals exploration team was encouraged to see
that the fold was subjected to hydrothermal fluids carrying base
and precious metals, making this area a target for further
exploration.
DDH20-SD-463 was drilled below the Canyon Creek zone where
mineralization remains open at depth. The hole intersected a
150m interval of elevated base and
precious metal values within altered sedimentary and intrusive
rocks that typically form the hanging wall of the zone. The
hole then intersected a deeper interval of mineralization grading
1.04 CuEq over 9.60m (0.58% Cu, 0.36
g/t Au, 11.0 g/t Ag) from 823.80m. This interval does not correlate
well to any known zones and may represent an additional mineralized
pathway (Figures 2 and 4).
Table 1: Significant Drill Results From This News Release
Drill Hole
Name
|
From
(m)
|
To
(m)
|
Length
(m)²
|
Copper
(%)
|
Gold
(g/t)
|
Silver
(g/t)
|
Zinc
(%)
|
Cu Eq
(%)¹
|
DDH20-SD-466
|
373.35
|
390.80
|
17.45
|
1.37
|
1.70
|
39.7
|
0.01
|
3.40
|
Including
|
384.35
|
389.85
|
5.50
|
3.02
|
3.83
|
87.2
|
0.01
|
7.56
|
DDH20-SD-461M
|
493.40
|
498.45
|
5.05
|
0.90
|
0.74
|
11.3
|
0.01
|
1.72
|
- Figure 2 – Plan View:
http://www.sunmetals.ca/_resources/images/NRNov11Fig2.pdf
- Figure 3 – Long Section:
http://www.sunmetals.ca/_resources/images/NRNov11Fig3.pdf
- Figure 4 – Cross Section:
http://www.sunmetals.ca/_resources/images/NRNov11Fig4.pdf
- Figure 5 – Plunge View:
http://www.sunmetals.ca/_resources/images/NRNov11Fig5.pdf
- Drill Results Table:
http://www.sunmetals.ca/_resources/images/NRNov11MasterDrillResults.pdf
Quality Assurance / Quality Control
Drilling completed on the project in 2020 was supervised by on–site
Sun Metals personnel who collected and tracked samples and
implemented a full QA/QC program using blanks, standards and
duplicates to monitor analytical accuracy and precision. The
samples were sealed on site and shipped to Bureau Veritas (BV) in
Vancouver BC for analysis.
BV's quality control system complies with global
certifications for Quality ISO9001:2008. Core samples were
analyzed using a combination of BV's AQ270 process for low level
concentrations (ICP–ES/MS aqua regia) and the MA270 process for
higher level concentrations (ICPES/MS 4 acid digestion). Gold
assaying was completed with FA330, a 30–gram fire assay with ICP–ES
finish. Base metal overlimits were finalized with
titration, with gold overlimits completed with a gravimetric
finish. A silica wash was used between high–grade samples to ensure
no sample carry over.
A total of 11,988m of drilling was
completed in 17 drill holes with 3,147 samples shipped to the lab.
Lab turnaround time has been significantly negatively impacted by
the COVID-19 pandemic and consequently, results from ten drill
holes have been received at the time of this release. Additional
results from the program will be reported when they are received
from the lab.
Prices used to calculate the CuEq values1 in this
project have been updated from previous reporting on the Stardust
project to reflect the change in commodity prices.
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.
An updated interactive corporate presentation is available on
Sun Metals' website
at https://www.sunmetals.ca/investors/presentation/.
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.
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, 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
EQ3
|
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
|
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.
______________________________
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3 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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SOURCE Sun Metals