HIGHLIGHTS
- Expansion of first phase drilling program at Unkur by up to
two-thirds to 5,000m
- Additional ground magnetic survey and trenching
- Plan to increase potential size of maiden NI 43-101 Resource
(due Q1 2017)
- Gain extra data to expedite preliminary economic assessment
work
- $0.8-1.0M Private Placement to
fund expanded exploration activities
TSX-V: AZR
VANCOUVER, Sept. 21, 2016 /CNW/ - AZARGA METALS
CORP. ("Azarga Metals" or the "Company")
(TSX-V:AZR) announces its intention to expand its first
phase drilling program at its Unkur Silver-Copper Project from
3,000 meters to up to 5,000 meters and plans to raise $0.8 million to $1.0 million through a
non-brokered private placement of Units (the "Private
Placement") to fund the expanded program.
Azarga Metals' president and CEO Dorian
L. (Dusty) Nicol commented, "Early results show we could
have a globally significant silver and copper deposit in Unkur.
Based on the thickness of mineralization and high silver and copper
grades we are seeing so far, I'm pleased we're able to accelerate
our work on the project at this time and look forward to further
results."
EXPANDED FIRST PHASE EXPLORATION PROGRAM
Azarga Metals is just over halfway through its first phase 3,000
meter diamond drilling program at Unkur, which commenced at the
start of August. Eight drill-holes have been completed of what are
expected to be between 15 and 17 holes and the Company has received
and published assays for four of those holes (see news releases of
1 September 2016 and 19 September 2016).
Results from assays received to date are extremely encouraging.
They confirm the presence of significant silver and copper grades,
and support the contention that historic drilling may have
understated the thickness and grade of the Unkur
mineralization.
Azarga Metals now proposes to substantially expand the current
physical exploration program, by adding the following key
elements:
- Another five to 10 diamond core holes to expand the first phase
drilling program by up to two thirds to approximately 5,000
cumulative linear meters.
- Three surface trenches across about 300 linear meters to expose
anticipated subcropping mineralization.
- A 200 linear kilometer ground magnetic survey over an area to
the north and northwest of the current first phase planned drilling
area.
Expanding the exploration program at this time is anticipated
to: (i) increase the potential size of the maiden NI 43-101
Resource to be completed in Q1 2017; (ii) gain a broader geological
data-set to expedite the process to complete a preliminary economic
assessment later in 2017; and (iii) collect more information to
guide drill-hole placement decisions for a future second phase
drilling program.
Azarga Metals believes it is appropriate to take the initiative
now to expand the exploration program based on data being received
and whilst the exploration team (including two drill rigs) remains
at Unkur and in a position to extend operations beyond the
previously planned program.
PRIVATE PLACEMENT
The original first phase drilling program remains fully funded
together with planned corporate overheads to the end of 2017.
However, the Company intends to raise between $800,000 and $1,000,000 through the issuance of
between 2,500,000 and 3,125,000 units (each, a "Unit") at a
price of C$0.32 per Unit through the
Private Placement.
Azarga Metals intends the use of proceeds of the Private
Placement to fund the cost of the expansion of the first phase
exploration program together with incremental third-party
consulting with respect to preparation of a Resource model for the
Unkur Silver-Copper Project.
Each Unit consists of one common share of the Company (each, a
"Share") and one-half of one Share purchase warrant (each
whole warrant, a "Warrant"). One Warrant entitles the holder
thereof to purchase one Share of the Company at a price of
$0.40 per Share for a period of
12-months from the closing of the Private Placement. The Shares
issued in connection with the Private Placement will be subject to
a four-month hold period.
The Private Placement is subject to compliance with applicable
securities laws and to receipt of regulatory approval. The Company
reserves the right to modify the type, nature and/or price of the
Private Placement for any reason, subject to TSX Venture Exchange
acceptance.
The Company may pay finder's fees within the allowable limits of
the policies of the TSX Venture Exchange.
UNKUR SILVER-COPPER PROJECT
Azarga Metals owns 60% of the Unkur Silver-Copper Project along
with the right to acquire the remaining 40% in the future.
Sediment-hosted copper and silver mineralization has been
identified across the 5,390 hectare project license area, in
outcrops, trenches and by historical diamond drilling. The prior
exploration outlined a large area of high-grade shallow stratiform
sediment hosted copper and silver 20 to 50 meters thick over an
area four to six kilometers long.
Further details concerning Unkur Silver-Copper Project are
contained in a technical report filed by the Company as per its
news release of 5 April 2016.
Qualified Person
The Company's President and Chief Executive Officer,
Dorian L. (Dusty) Nicol, B.Sc. Geo,
MA Geo, a Qualified Person as defined by NI 43-101, has reviewed
and approved the exploration information disclosures contained in
this Press Release.
About Azarga Metals Corp.
Azarga Metals is a mineral exploration and development company
that owns 60% of the Unkur Silver-Copper Project in the Zabaikalsky
administrative region in eastern Russia.
AZARGA METALS CORP.
"Dusty Nicol"
Dorian L.
(Dusty) Nicol, President and CEO
Neither the 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.
Cautionary Statement:
This news release contains forward-looking statements that are
based on the Corporation's current expectations and estimates.
Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current planned exploration activities;
conclusions of economic evaluations; changes in project parameters
as plans to continue to be refined; possible variations in ore
grade or recovery rates; accidents, labour disputes and other risks
of the mining industry; delays in obtaining governmental approvals
or financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Corporation
disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or
results or otherwise. Forward-looking statements are not guarantees
of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
SOURCE Azarga Metals Corp.