Kerr Mines Provides Operational and PFS Update
March 02 2018 - 6:30AM
TORONTO, March 02, 2018 (GLOBE NEWSWIRE) --
Kerr Mines Inc. (TSX:KER) (OTC:KERMF) (FRA:7AZ1)
(“Kerr” or the “Company”) is pleased to announce
that, following the successful 2017 Phase I exploration program in
the Copperstone and Footwall zones, the Company is continuing with
a 15,000 meter 2018 Phase II program with the objective to expand
the mineral resource. The 2017 Phase I program confirmed
significant gold mineralization and increased the potential in
expanding the resource at the Company’s Copperstone Project in
Arizona. In addition, Kerr is on-track to announce the results of
its pre-feasibility study including an NI 43-101 resource statement
at the end of March, 2018. The study will enable the Company to
make a well informed production decision shortly
thereafter.
Martin Kostuik, President, stated, “These
results conclude the very successful Phase I program which was
designed to confirm and upgrade the resource. We are excited to
share this and our plans for 2018 during PDAC at our booth # 2947 -
actions for 2018 include the completion of our pre-feasibility
study in Q1, the announcement of our production decision and the
execution of the Phase II exploration program.”
Re-Cap of 2017 Phase I Exploration
Program
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 and the
parallel Footwall Zone have been further enhanced by the Phase I
drilling program. The Phase I 8,159 meter surface and underground
drilling program is complete. The 85 hole Phase I program was a
combination of surface core and reverse circulation and underground
core drilling. 4,854 meters was dedicated to the Footwall Zone
where a new zone of mineralization was established only 150 meters
from the Copperstone Zone. This new Footwall Zone of 375 meters
along strike by 350 meters along dip provides an immense
opportunity to further expand mineralized resources (see press
release dated January 17, 2018). The Phase I program also tested
mineralization along strike and up/down-dip in the D and C portions
of the Copperstone Zone. 3,305 meters of underground core were
dedicated to confirmation, extension and continuity goals.
In total, core was logged for mineralization, alteration,
structure, rock quality and lithology. 5,248 fire assays, 50
metallic screen and 244 ICP analyses were performed. In addition,
665 holes of historic core drill logs totaling 83,265 meters were
re-interpreted for alteration and digitized for inclusion into the
2017 resource estimate program database.
For a full table of results and map for the 2017 Phase I Program–
see http://kerrmines.com/category/news/
2018 Pre-Feasibility
Study
The study is on track for announcement at end of
March, 2018. Operating and capital costs, ore production,
metallurgical recovery and revenue generation for the Project are
being summarized for inclusion in a financial model which includes
operating cash flows and rates of return. Trade-offs in the Study
include owner versus contractor operation of the mine, a comparison
of several mining methods and ore concentrate production and sale
versus production and sale of final doré.
2018 Phase II Exploration
Program
Building on the achievements of the 2017
exploration program, the Company is continuing to advance the
Project with further drilling and assaying in 2018. The objectives
of the 2018 Phase II Exploration Program are to:
- Increase the mineral resource and improve the mineral
classification in the Copperstone Zone.
- Increase the mineral resource and improve the mineral
classification in the parallel Footwall Zone which is located
within 150 meters of the Copperstone Zone.
- Better define mining stopes in the D and C zones of the
Copperstone Zone.
The 2018 Phase II Program plans for up to 15,000
meters of infill and extensional drilling primarily in the
Copperstone Zone. Over 2,900 meters of underground access is in
place, including the additional access along strike added during
the Phase I program. The 2018 program will utilize this access to
target areas of mineralization within which to improve continuity
and extend the mineralized zones into areas never before drilled
from underground.
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 of
selected remaining laboratory rejects. All results will be analyzed
for consistency.
For further information
contact:
Claudio Ciavarella
Chief Executive Officer
cciavarella@kerrmines.com
416-855-9305
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.