TORONTO, Nov. 2, 2017 /CNW/ - Kerr Mines Inc. (TSX:
KER, OTC: KERMF, FRA: 7AZ1) ("Kerr" or the "Company") is
pleased to announce initial results of its Phase I underground
drilling program with 10 of 12 drill holes intersecting significant
gold mineralization and increasing the confidence in expanding the
resource at the Company's Copperstone project in Arizona.
Highlights
- Results extend down-dip and up-dip gold grade and extend
mineralized areas along strike in 2 sections of the Copperstone
Zone
- Historical drilling results confirmed
- New intervals drilled from underground through the D Zone
include:
-
- 32 feet @ 16.2 g/t Au (KER-17U-12)
- 20 feet @ 8.6 g/t Au (KER-17U-06)
- 15 feet @ 5.1 g/t Au (KER-17U-04)
- 10 feet @ 7.9 g/t Au (KER-17U-05)
- 13 feet @ 6.2 g/t Au (KER-17U-11) and
- 9 feet @ 5.4 g/t Au (KER-17U-11)
Martin Kostuik, President,
stated, "with these initial Copperstone Zone results and the
previously announced Footwall Zone results, (see press release
dated 24 October 2017), we remain
confident in delivering on our target of producing an updated
resource estimate under NI 43-101 guidelines and delivering a
Prefeasibility study in Q1 2018."
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 a mineral resource of 313,000 oz Au at 10.35
g/t Au (0.302 ounce per ton) (measured + 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.
730 Access
KER-17U-04 was designed to explore the down-dip extension
of the Copperstone Zone and resulted in an intercept of 15 feet @
5.1 g/t Au. This complements the historic results shown by
DU4-41, CUDH-04-25 and CUDH-04-26 by extending D zone
mineralization down-dip by approximately 75 feet, and confirms
continuity along strike.
KER-17U-05 was designed to test continuity between two
historic holes and resulted in an intercept of 10 feet @ 7.9 g/t
Au. This confirms historic intercepts along strike in D zone
mineralization previously indicated by CUDH-04-25, and
DU4-41, and extends intervals down dip by approximately 35
feet.
KER-17U-06 was designed to both confirm an historic drill
hole interval and test an area between two historic holes.
This resulted in two separate intervals of 20 feet @ 8.6 g/t Au and
21 feet @ 3.1 g/t Au. The first interval confirms continuity
of grades and thickness along strike as it intersects an area
between intervals reported in DU4-41 and CUDH-04-25. The second
interval reported confirms continuity in a lower lens of D zone
mineralization defined by intercepts in CUDH-04-26.
650 Access
KER-17U-08 was designed to test the up-dip extension of
this portion of the D zone and resulted in an intercept of 7.1 feet
@ 4.8 g/t Au. This result is encouraging as it provides new up-dip
potential of this area which has existing access for
mining.
KER-17U-11 was a zone confirmation hole and was intended
to fill an area between historic holes and resulted two intercepts
of 13 feet @ 6.2 g/t Au. and 9 feet @ 5.4 g/t Au. The first
interval is 140 feet from the that reported in DU4-51, extending
continuity of Copperstone mineralization in the D zone along strike
by 30 feet. In addition, the second interval is 60 feet from that
reported in DU5-64, and confirms down-dip continuity of D zone
mineralization in the Copperstone Zone.
KER-17U-12 was designed to confirm previous results and
resulted in 32 feet @ 16.2 g/t Au while increasing the
historic zone. This interval is 15 feet from and confirms the
grade results reported in DU5-64. In addition, it confirms down dip
continuity of D zone mineralization being 115 feet from reported
intervals in DU4-51. Furthermore, it confirms continuity along
strike being 75 feet from reported intervals in DU5-56.
Table 1. Selected Drill Results
Hole
ID
|
From
|
To
|
Interval*
|
Interval*
|
Gold
|
|
ft
|
ft
|
ft
|
m
|
g/tonne
Au
|
KER-17U-04
|
80.0
|
95.0
|
15.0
|
4.6
|
5.1
|
includes
|
84.5
|
95.0
|
10.5
|
3.2
|
5.7
|
KER-17U-05
|
112.0
|
122.0
|
10.0
|
3.0
|
7.9
|
includes
|
114.0
|
122.0
|
8.0
|
2.4
|
9.0
|
KER-17U-06
|
83.0
|
103.5
|
20.5
|
6.2
|
8.6
|
includes
|
83.0
|
95.5
|
12.5
|
3.8
|
12.9
|
and
|
147.5
|
168.5
|
21.0
|
6.4
|
3.1
|
includes
|
154.0
|
168.5
|
14.5
|
4.4
|
3.2
|
KER-17U-08
|
19.0
|
26.1
|
7.1
|
2.2
|
4.8
|
includes
|
19.0
|
23.0
|
4.0
|
1.2
|
8.1
|
KER-17U-11
|
48.0
|
61.0
|
13.0
|
4.0
|
6.2
|
includes
|
48.0
|
58.5
|
10.5
|
3.2
|
7.6
|
and
|
197.5
|
206.5
|
9.0
|
2.7
|
5.4
|
includes
|
200.0
|
206.5
|
6.5
|
2.0
|
7.2
|
KER-17U-12
|
153.0
|
185.0
|
32.0
|
9.8
|
16.2
|
includes
|
163.0
|
185.0
|
22.0
|
6.7
|
22.9
|
* not true
width
|
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.
Quality Assurance and Quality Control
Statement
Procedures have been implemented to assure Quality
Assurance Quality Control (QAQC) of drill hole assaying being done
at American Assay Laboratories (American), which is ISO
Accredited. All portions of drill holes are being assayed and
samples are securely stored for shipment to American, with chain of
custody documentation through delivery. Mineralized
commercial reference standards and coarse blank standards are
inserted every 20th sample in sequence and results are
graphed to assure acceptable results, resulting in high confidence
of the drill hole assay results. When laboratory assays are
received, the QAQC results are immediately evaluated and graphed to
analyze dependability of the drill hole assays. As the
Copperstone Project advances, additional QAQC measures will be
implemented including 1) selected duplicate assaying being done at
a second accredited assay laboratory, 2) duplicate assaying of
selected intervals of core (quarter splits) and reverse circulation
drilling samples, and 3) metallic screen assays of selected
remaining laboratory rejects. All results will be analyzed
for consistency.
*Mineral Resource Tabulation – Model capped at 5.0 oz Au/t with
a 0.15 oz Au/t cutoff grade, 1,038,000 tons (measured +
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.