VR Resources Ltd. (TSX.V: VRR, FSE: 5VR; OTCQB: VRRCF), the
"
Company", or “
VR”, announces the
broadest and strongest intersection to date of high grade rare
earth elements (REE’s) and critical metals in Hole 13 from its
Hecla-Kilmer (“H-K”) property located in northern Ontario.
- 243 metres @ 1.01%
TREO, of which 19% are PMREO*, within
290 metres @ 0.91% TREO starting at
surface and continuous from top to bottom in Hole
HK22-013, and including:
- 65 metres at 1.66%
TREO, starting at 155 metres, and including:
- 39 metres @ 2.01%
TREO starting at 155 metres, and;
- 15 metres @ 2.14%
TREO starting at 311 metres.
- The 65 metre interval of 1.66% TREO
is made up of 24% PMREO;
- The 15 metre interval with 2.14%
TREO contains 15.71%
P2O5.
*PMREO: sum of the high value rare earth oxides
Pr2O3 + Nd203 + Tb2O3 + Dy2O3 used in permanent magnets for wind
turbines and electric vehicles. PMREO % is the PMREO sum
divided by TREO (total rare earth oxide), and expressed as a
percent.
Of importance towards the economic potential of this
discovery:
- Depth: Mineralization comes to bedrock
surface at the base of till (44 metres; overburden);
- Continuous mineralization in potassic
alteration over the entire 287 metre vertical hole;
- Open to depth, with no geological limits such
as vertical zonation in alteration or mineralization; similar
mineralization spans more than 500 vertical metres
between the top of Drill Hole 004 and the bottom of Drill Hole 002
(see Figure 1);
- Strike length potential exceeds 1,000 metres
along the east-west structure which controls mineralization (see
magnetic map and 3D inversion isoshells in Figure 1);
- Infrastructure: this drill hole is located 23
km northwest of the active Ontario Northern Railroad, Provincial
Highway 634, and provincial grid power at the Otter Rapids
hydro-electricity facility.
Data are expected imminently for Hole 14, and in the next two
weeks for the remaining five holes.
Table 1. Summary of the broad
intersections of Critical Metals made to date at Hecla-Kilmer.
Figure 1. Plan map with the
location of all 17 drill holes now completed in the first three
drill programs at Hecla-Kilmer, plotted on an RTP magnetic base map
covering the entire complex.
Figure 2. Drill hole locations
and key Critical Metal intersections in the northwestern portion of
H-K, plotted on a 1VD magnetic map derived from the ultra- high
resolution drone survey completed in 2022.
Drill core photos in Figure 3
and Figure 4 show alteration and mineralization
textures in core intervals with assays of greater than 2%
TREO. Protolith alkaline igneous rocks including nepheline
syenite porphyry dykes are completely overprinted by potassic
alteration dominated by hydrothermal biotite, magnetite and
apatite. Critical metal mineralization is most commonly associated
with sulfide-bearing fluorite-carbonate-apatite veins and
carbonatite dykes (phoscorite and sovite), hosted in
magnetite-biotite-amphibole rich fenite. Based on the QEMSCAN
analysis of the mineralization at surface in Drill Hole 004, the
REE’s are contained mainly in monazite, bastnaesite, and
apatite.
Table 1: REE and Critical Metal
Intersections, Hecla-Kilmer (Hole 13 are new
data)
Drill hole |
From (m) |
To(m) |
Length(m) |
TREO(1)(%) |
MHREO(2)(%) |
PMREO(3)(%) |
% MagnetREOs |
Nb2O5(%) |
Ta2O5(ppm) |
ThO2(ppm) |
HK22-013 |
43 |
330 |
287 |
0.88 |
0.09 |
0.17 |
18% |
0.11 |
22.0 |
257 |
including |
83 |
326 |
243 |
1.01 |
0.11 |
0.20 |
19% |
0.11 |
21.8 |
292 |
including |
155 |
220 |
65 |
1.66 |
0.18 |
0.32 |
24% |
0.12 |
26.5 |
532 |
including |
155 |
194 |
39 |
2.01 |
0.22 |
0.40 |
19% |
0.07 |
14.2 |
550 |
including |
255.38 |
272.08 |
16.7 |
1.91 |
0.22 |
0.41 |
20% |
0.08 |
13.8 |
370 |
including |
311 |
326 |
15 |
2.14 |
0.25 |
0.41 |
19% |
0.09 |
26.2 |
548 |
HK22-011 |
227 |
315 |
88 |
0.52 |
0.05 |
0.09 |
18% |
0.12 |
23.7 |
165 |
including |
276 |
289 |
13 |
0.97 |
0.08 |
0.17 |
17% |
0.11 |
23.9 |
190 |
HK22-010 |
86 |
217 |
131 |
0.40 |
0.04 |
0.07 |
17% |
0.16 |
36.6 |
253 |
including |
86 |
166.07 |
80.07 |
0.56 |
0.06 |
0.10 |
18% |
0.16 |
19.7 |
359 |
HK21-009 |
88 |
95 |
7 |
0.85 |
0.08 |
0.13 |
15% |
0.11 |
16.9 |
123 |
and |
120 |
272.15 |
152.15 |
0.54 |
0.05 |
0.08 |
16% |
0.09 |
14.2 |
109 |
including |
242 |
262 |
20 |
0.80 |
0.07 |
0.13 |
17% |
0.15 |
27.5 |
148 |
including |
243 |
247 |
4 |
1.75 |
0.15 |
0.30 |
17% |
0.34 |
58.0 |
386 |
HK21-008 |
144 |
179 |
35 |
0.40 |
0.03 |
0.07 |
16% |
0.17 |
13.7 |
108 |
and |
237 |
357 |
120 |
0.57 |
0.04 |
0.10 |
18% |
0.20 |
21.3 |
143 |
including |
305 |
342 |
37 |
0.72 |
0.05 |
0.13 |
18% |
0.32 |
36.2 |
223 |
including |
324 |
335 |
11 |
1.13 |
0.09 |
0.20 |
28% |
0.38 |
39.2 |
289 |
HK21-005 |
52 |
351.53 |
299.53 |
0.47 |
0.04 |
0.08 |
17% |
0.18 |
24.0 |
137 |
including |
80.75 |
318.21 |
237.46 |
0.49 |
0.04 |
0.08 |
17% |
0.20 |
27.3 |
149 |
including |
152 |
180 |
28 |
0.80 |
0.08 |
0.14 |
18% |
0.17 |
26.5 |
252 |
including |
156 |
159 |
3 |
1.70 |
0.18 |
0.32 |
19% |
0.08 |
16.1 |
562 |
including |
183 |
238 |
55 |
0.44 |
0.03 |
0.07 |
17% |
0.23 |
25.4 |
123 |
including |
275 |
306 |
31 |
0.61 |
0.04 |
0.10 |
17% |
0.31 |
33.4 |
215 |
HK20-004 |
40.3 |
98.4 |
58.1 |
0.38 |
0.04 |
0.08 |
21% |
0.15 |
25.4 |
155 |
including |
56 |
83 |
27 |
0.48 |
0.05 |
0.11 |
22% |
0.17 |
31.1 |
231 |
including |
57 |
60.21 |
3.21 |
1.44 |
0.15 |
0.34 |
15% |
0.17 |
25.2 |
439 |
including |
67.23 |
78 |
10.77 |
0.35 |
0.04 |
0.08 |
23% |
0.27 |
50.1 |
260 |
HK20-002 |
159.6 |
183 |
23.4 |
0.63 |
0.06 |
0.10 |
19% |
0.05 |
8.3 |
152 |
and |
553 |
606 |
53 |
0.51 |
0.05 |
0.09 |
17% |
0.12 |
17.1 |
390 |
including |
566.65 |
585 |
18.35 |
0.67 |
0.07 |
0.09 |
17% |
0.14 |
18.8 |
548 |
(1) |
TREO is the summation of Ce2O3 + La2O3 + Pr2O3 + Nd2O3 + Sm2O3 +
Eu2O3 + Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 +
Lu2O3 + Y2O3. |
(2) |
MHREO is the sum of the middle
and heavy rare earth oxides (Sm2O3 + Eu2O3 + Gd2O3 + Tb2O3 + Dy2O3
+ Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3). |
(3) |
PMREO is the sum of high value
rare earth oxides used in permanent magnet motors and turbines used
in electric vehicles and wind turbines (Pr2O3 + Nd203 + Tb2O3 +
Dy2O3). The % Magnet REO column is this PMREO sum divided by TREO,
and expressed as a percent. |
From VR’s CEO, Dr. Michael Gunning, “This new
intersection from top to bottom in Hole 13 confirms the economic
potential of the REE and critical metal discovery made by VR within
the polymetallic, hydrothermal vein and breccia system at
Hecla-Kilmer in 2020.
What are the value metrics for a 291 metre
intersection of rare earth elements. Figure 5 is
provided for context. Firstly, the ratio of up to 24% PMREO at
Hecla-Kilmer is high. That is important. The light and heavy REE’s
Neodymium, Dysprosium, Terbium and Praseodymium are the most
valuable because they are essential in the manufacturing of
permanent magnets necessary for the electric vehicle and wind
energy turbine industries. That demand-based value is amplified by
scarcity; that is, PMREO’s are absent in most REE deposits
globally. As such, and based solely on the presence of
these four heavy rare earth elements, the 290 metre REE
intersection in Hole 13 at Hecla-Kilmer has a value of $172/kg
using exchange and index prices of today, which on face value is
comparable to 9.2% copper, also at the current index price of
today.
Second. What about the niobium? The value
analogue above for the 290 metre REE intersection in Hole 13 does
not include the 0.11% grade in niobium (Table 1). Further, drill
holes 5 and 8 located to the west in the core of the gravity
anomaly produced twice that grade over 299 and 120 metre
intersections, respectively (see Figure 2). The
niobium price has risen four-fold in the past decade, to the $45/kg
level, reflecting in part a demand related to its role as a
super-conductor to improve the performance of the afore-mentioned
permanent magnets essential to the EV and wind turbine sectors. We
will comment on the potential value-add of niobium to the REE
discovery at H-K when we have data in hand for Hole 17.
Finally, how does Hole 13 compare with the grade
metrics for REE deposits globally? Firstly, all ten of the top ten
REE deposits in the world are IOCG breccia systems and/or evolved
hydrothermal breccia systems in carbonatite, akin to the
IOA-affinity hydrothermal breccia system and host multiphase
carbonatite complex at Hecla-Kilmer. In that sense, the
intersection in Hole 13 is in the same geological ballpark as most
world-class REE mineral systems. Second, the 0.91 – 2.14% range in
TREO content in the various intervals within the 290 metre
intersection in Hole 13 is comparable to the range of 0.4 – 1.73%
TREO reported for the average resource grades of eight of the top
ten REE deposits globally. Further, the 1.01% average TREO grade in
Hole 13 is maintained over 243 vertical metres and is open to
depth, with no constraints to further depth extent such as vertical
zonation in alteration or changes in mineralization.
VR has now confirmed REE and critical metal
intersections in 8 of the 12 drill holes for which geochemical data
have been received. Drilling is still at a very early stage at H-K,
yet the 17 holes completed to date demonstrate the lateral and
vertical breadth of the hydrothermal breccia and alteration system
with critical metals. The economic potential of this discovery lies
in the polymetallic nature of the intersections, the occurrence of
the mineralization at surface, and its proximity to
infrastructure.
This discovery contributes to the rapidly
evolving critical metal strategies of governments across North
America aimed at growing domestic EV and wind turbine sectors in
order to sustain the growth of the green economy. This relevance
underscores the potential value of H-K to our shareholders, and we
look forward to providing further updates as we receive final data
and commence exploration planning.”
Background
Hecla-Kilmer (“H-K”) is a large and multiphase
alkaline intrusive complex with carbonatite. It is 4 – 6 km in
size, Proterozoic in age, and was emplaced along the western margin
of the crustal-scale Kapuskasing structural zone which bisects the
Archean Superior Craton in northern Ontario.
A shallow, six-hole diamond drill program was
completed in 1970 as part of a regional base metal exploration
program by Ashland Oil and Elgin Petroleum. One hole was abandoned,
and a scant 854 metres were completed in total in the other five
holes, all on magnetic highs in the outer concentric zones of the
complex. There is no record of drill core sampling or geochemical
data. Selco Exploration Company completed two drill holes in 1981
on peripheral magnetic highs as part of a regional diamond
exploration program; they intersected altered ultra-basic rocks and
black breccia in the outer, concentric zones of the multiphase
complex at H-K. After this historical drilling, a regional-scale
airborne magnetic survey was completed in 1993 for diamond
exploration; it provided high-resolution data covering the H-K
complex.
The opportunity for VR is to be the first
company to apply modern IOCG and carbonatite mineral deposit models
to explore the multiphase H-K complex and hydrothermal breccia
system as a whole, and to use new exploration technologies not
previously available when the historic drilling was done.
VR completed the first airborne EM survey over
H-K in June, 2020, using the state-of-the-art VTEM+ system of
Geotech Ltd. Flown at 100 m line spacing over a 6 x 7 km survey
block for a total of 450 line-km, the data provide a high
resolution of detail. The Company also completed an independent,
3-D inversion of both magnetic and EM data, for improved modeling
of the complex in three dimensions. A detailed, ground-based
gravity survey covering an area of 1.5 x 3.5 km was completed in
the winter season of 2021, with high-resolution data generated from
597 stations on an equant grid spacing of 100 m.
VR completed four drill holes for a total of
1,971 metres in October, 2020, targeting the northern MVI (magnetic
inversion) anomaly at H-K. The Company followed up that drilling in
October, 2021, with the completion of five additional holes for a
total of 2,604 metres, targeting the high contrast, 3.5 mGal
gravity anomaly that is co-spatial with, but slightly offset from
the MVI anomaly.
From the second drill hole onwards, VR
discovered a hydrothermal vein and breccia system extending from
bedrock surface to 500 m depth and containing broad intersections
from 50 to 299 metres long of critical metal mineralization
throughout (REE + Nb), and elevated copper and gold locally. The
intersections of fluorite-carbonate veins and hydrothermal breccia
are pervaded by carbonatite dykes of sovite and phoscorite
composition. The mineralization occurs within high temperature,
sulfide-bearing, calc-potassic and potassic alteration dominated by
assemblages of magnetite, biotite, amphibole and apatite which
completely replace original alkaline host rocks such as ijolite and
nepheline syenite, and a myriad of porphyry dyke phases.
A state-of-the-art, ultra-high resolution drone
magnetic survey was completed in the fall of 2021, and expanded in
March of 2022, in order to: 1. cover the entire complex at H-K,
and; 2. identify vectors for how best to follow up on the
hydrothermal breccia intersections with critical metals and gold in
the first two drill programs. The final survey is 3.4 x 4.5 km in
size, comprising 121 lines at both 25 and 50 m line-spacing for a
total of 410 line-km. The survey produces a very high resolution of
data because of the tight line spacing, the low “tree-top” flight
altitude of just 30 metres above ground, and a computerized flight
control paired with a new, very high sensitivity potassium-vapour
magnetometer.
A third diamond drill program of eight
additional holes totalling 2,751 m was completed in the spring of
2022. Broad intersections of critical metal mineralization are now
confirmed in 11 of 17 holes completed to date, with data from five
holes still pending. Alteration and mineralization extend from
surface to more than 500 metres of vertical extent, related to a
vertical hydrothermal vein and breccia system that is anchored to
well-defined structures in the northwestern part of the multiphase
complex at H-K.
Technical Information
Summary technical and geological information for
the Company’s various exploration properties is available at the
Company’s website at www.vrr.ca.
VR submitted all drill core samples for
geochemical assay to the ALS Global Ltd. (“ALS”) laboratory
facilities in Timmins, Ontario, with final geochemical analytical
work done at the ALS laboratory located in North Vancouver, BC.,
including lithium borate fusion, ICP-MS and ICP-AES analyses for
base metals, trace elements and full-suite REE analysis, and gold
determination by atomic absorption on fire assay. Analytical
results are subject to industry-standard and NI 43-101 compliant
QAQC sample procedures externally by the Company and internally at
the laboratory as described by ALS.
Technical information for this news release has
been prepared in accordance with the Canadian regulatory
requirements set out in National Instrument 43-101. Justin Daley,
P.Geo., Exploration Manager and Chief Geologist at VR and a
non-independent Qualified Person oversees and/or participates in
all aspects of the Company’s mineral exploration projects, and the
content of this news release has been reviewed on behalf of the
Company by the CEO, Dr. Michael Gunning, P.Geo., a non-independent
Qualified Person.
About the Hecla-Kilmer Property
The Hecla-Kilmer complex is located 23 km
northwest of the Ontario hydro-electric facility at Otter Rapids,
the Ontario Northland Railway, and the northern terminus of Highway
634 which links the region to the towns of Cochrane and Kapuskasing
to the south, located on the northern Trans-Canada Highway.
The H-K property is large. It
consists of 224 mineral claims in one contiguous block
approximately 6 x 7 km in size and covering 4,617 hectares. The
property is owned 100% by VR. There are no underlying annual lease
payments on the property, nor are there any joint venture or
back-in interests. There is an industry-standard royalty attached
to the property, including a buy-back provision in favour of
VR.
Like the Ranoke property, H-K is located on
provincial crown land, with mineral rights administered by the
Ontario Ministry of Northern Development, Mines, Natural Resources
and Forestry (“MNDM”). There are no annual payments, but the MNDM
requires certain annual exploration expenditures and reporting. The
property falls within the traditional territories of the Moose Cree
and Taykwa Tagamou First Nations.
About VR Resources
VR is an established junior exploration company
focused on greenfields opportunities in copper, gold and critical
metals (TSX.V: VRR; Frankfurt: 5VR; OTCQB: VRRCF). VR is the
continuance of 4 years of active exploration in Nevada by a
Vancouver-based private company. The diverse experience and proven
track record of its Board in early-stage exploration, discovery and
M&A is the foundation of VR. The Company focuses on
underexplored, large-footprint mineral systems in the western
United States and Canada. VR owns its properties outright and
evaluates new opportunities on an ongoing basis, whether by staking
or acquisition.
The Company continues its normal course of
business in 2022 within the framework of modified exploration
programs in response to the COVID-19 pandemic, with the goal of
ensuring the health and safety of staff and project personnel.
ON BEHALF OF THE BOARD OF DIRECTORS:
“Michael H.
Gunning”____________________________
Dr. Michael H. Gunning, PhD, PGeoPresident & CEO
For general information please use the following:
Website: www.vrr.caEmail:
info@vrr.caPhone:
604-262-1104
Forward Looking Statements
This press release contains forward-looking
statements. Forward-looking statements are typically identified by
words such as: believe, expect, anticipate, intend, estimate,
postulate and similar expressions or those which, by their nature,
refer to future events. Forward looking statements in this release
include those related to the companies upcoming plans, such as “The
potential of this discovery lies in the polymetallic nature of the
intersections made to date, and the sheer lateral and vertical
scale of the hydrothermal breccia system”, and “VR evaluates new
opportunities on an ongoing basis, whether by staking or
acquisition.”
This news release contains statements and/or
information with respect to mineral properties and/or deposits
which are adjacent to, and/or potentially similar to the Company’s
mineral properties, but which the Company has no interest in nor
rights to explore. Readers are cautioned that mineral deposits on
similar properties are not necessarily indicative of mineral
deposits on the Company’s properties.
Although the Company believes that the use of
such statements is reasonable, there can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. The Company cautions investors that any forward-looking
statements by the Company are not guarantees of future performance,
and that actual results may differ materially from those in
forward-looking statements. Trading in the securities of the
Company should be considered highly speculative. All of the
Company’s public disclosure filings may be accessed via
www.sedar.com and readers are urged to review these materials.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in Policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
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