TORONTO, Nov. 16, 2017
/CNW/ - Kerr Mines Inc. (TSX: KER, OTC: KERMF, FRA: 7AZ1)
("Kerr" or the "Company") is pleased to announce positive
initial metallurgical results including an evaluation into the
accretive recovery of copper from gold bearing zones for the
upcoming Prefeasibility Study.
Highlights
- Gold recoveries up to 91%
- Copper present throughout the strike length of the Copperstone
Zone
- Monetization of both sulphide and oxide copper content being
examined
- Sulphide copper recovery up to 97%
- Oxide copper metal extractable from flotation underflow through
a simple acidulation process
Gold
The initial results of the gold testing to date
achieves recovery of up to 91%. The testing methods used are based
on the existing processing circuit at the Copperstone
project.
The samples being tested can be categorized as low, medium and
high grade gold samples across the entire strike length of the
Copperstone Zone. Processing alternatives are being evaluated to
further enhance recovery of gold including whole ore leaching,
flotation and a combination of flotation and gravity. Flotation
test results to date have excellent gold recoveries and also
confirm historical results.
Copper
For the first time, work is underway to
determine and report a copper resource for the Copperstone
Project. Of historic and new drill hole intervals which
contain a gold grade of 3 g/t Au or higher and that were assayed
for copper, the weighted average copper grade is 0.54% Cu. Copper
assay values are distributed along the entire strike length of the
Copperstone Zone. In that volume, over 90% of the time that
gold is present, copper is present as well.
Current studies show that both sulphide and oxide copper exists
in the Copperstone Project. Feed grades up to 0.68% Cu were
represented in the group of samples. When sulphide copper is
present, a copper recovery up to 97% to the gold rougher flotation
concentrate is achievable. Oxide copper reports to the underflow of
the flotation circuit, as such, there exists an opportunity to
create a feed of copper to a simple acid processing circuit.
It is in this new circuit that the oxide copper would be extracted
and recovered as a metal. The economic viability of both potential
copper revenue streams requires further testing and is
underway.
Martin Kostuik, President,
stated, "with these initial Copperstone metallurgical results and
the new understanding of the two potential streams of copper within
the processing circuit, we are very encouraged to investigate the
potential for copper to enhance the economics of this project. The
recovery of copper from the flotation underflow would be relatively
low cost because the other aspects of the copper recovery process
are paid for in the gold recovery circuit."
The 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 has an undiluted mineral resource of 313,000
oz Au at 10.35 g/t Au (0.302 ounce per ton) (311,000 measured +
2,000 indicated), estimated in 2010* is being further enhanced by
the Phase 1 underground drilling program. The Phase I 15,000 feet
underground program is currently using two drills to test along
strike and up/down-dip in the D and C zones of the Copperstone
Zone. The program is confirming altered detachment fault breccia
continuity from existing underground workings at depths from 100 to
400 feet below the open pit bottom.
The Company also wishes to announce that it filed on
November 10th, 2017 its
Financial Statements and Management Discussion and Analysis for the
first quarter ended September 30,
2017. These documents are available at the Company's website
http://kerrmines.com/investors/ or under Kerr Mine's profile on
SEDAR at www.sedar.com.
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.
*Mineral Resource Tabulation – Model capped at 5.0 oz Au/t with
a 0.15 oz Au/t cutoff grade, 1,038,000 tons (1,029,000
measured + 9,000 indicated) - NI 43-101 Technical Feasibility
Report, Copperstone Project, February
11, 2010. Limited mining of this resource occurred in
the period between Q4 2012 and Q3 2013 and updated tons will be
tabulated when a new resource is estimated in early 2018.
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.
SOURCE Kerr Mines Inc.