Canada Fluorspar Inc.'s 2012 Trenching Program Uncovers South Extension of the Director Vein
March 01 2012 - 6:20PM
PR Newswire (Canada)
TSX Venture Exchange Trading
Symbol: CFI TORONTO, March 1, 2012 /CNW/ - Canada Fluorspar Inc.
("CFI" or the "Company") is pleased to announce an update of its
exploration activity on the Director Vein located on the Company's
100% owned development properties at St. Lawrence, Newfoundland.
CFI has undertaken surface trenching of the Director Vein over the
past 45 days and to date has uncovered fluorspar mineralization at
three locations. The trenches are currently located over an area
that extends more than 400 m to the south of the old workings of
the Director Vein, and indicate surface mineralization in width
varying from 3.4 m to 16.5 m. Trenching operations will continue
over the next month and a half, and the Company expects to commence
a drilling program on the Director Vein by June, 2012. Assay work
on the trench samples is currently underway, and results will be
provided as they become available. The Company has approved a
budget of $200,000 for its exploration program, of which it has
spent approximately $60,000, and anticipates a minimum of two more
trenches to be completed on the Director Vein under its ongoing
exploration program. Lindsay Gorrill, President & CEO of Canada
Fluorspar Inc. stated that, "this is a significant development for
CFI and may indicate an extension to the Director Vein. We
look forward to providing further updates on exploration results
when assay results become available." Background Information for
the Director Vein. Canada Fluorspar Inc., through its wholly owned
subsidiary, Canada Fluorspar (NL) Inc. (CFI-NL), holds 100% of the
mineral rights to property in the St Lawrence area of Newfoundland
on which the Director Vein is located. The Director Vein was
previously mined by the Aluminum Company of Canada (Alcan) from
1942 and 1977. The mine shut down in September 1977, after Alcan
decided to curtail operations permanently. Prior to the shutdown,
Alcan estimated that significant mineralized material was left at
the existing Director Mine. The Director Vein was reported by Alcan
to be open along strike and at depth. Both the north and south
extremities of the Director Vein are believed to contain
significant fluorspar mineralization, with the south end of
Director Vein, known as Director South Extension, considered to
have the greatest potential, in part due to the fact that it is
exposed at the surface, and is close to an existing mill, proposed
tailings facility and deep harbour wharf. Historically, the
Director Vein widths exceeded the generally normal widths and the
grades exceeded the grades for a north-south vein in the St.
Lawrence area. CFI designed a program to trace the mineralized
structure of Director Vein to the south along strike through a
series of surface trenches which started in January 2012. Three
trenches have been completed to-date with additional trenching
planned over the following 4 to 6 weeks. See the map attached at
Appendix "A" for the location of the existing area of the trenching
program. Results to-date from Trenches 1 to 3 inclusive are as
follows: Trench #1 The first trench was designed to identify the
Director Vein structure at the southern limit of the past mining
operation (on the south side of the Canal waterway). Trench #1 is
located immediately to the south of the historic Director Mine
operation. Mine records indicated that the vein had pinched (veins
characteristically pinch and swell along strike and at depth) at
this location but the identification of the structure, mineralized
or barren, would provide information to plan subsequent trenches in
a more favorable location. Trenching at this site was unsuccessful
in identifying the structure, confirming the pinch zone reported by
the previous operator in the 1970s, and the site was reclaimed.
Trench #2 The second trench was located 300 m to the south of
Trench #1 and along the projected strike of the Director structure.
The second trench successfully identified a fault/vein structure
3.4 m in width, containing brecciated fluorite, quartz, calcite and
granite. This structure is on strike with the Director Vein to the
north and is assumed to represent either the end of a pinch zone or
the beginning of a zone of swelling. Samples of the vein and
wallrock material were collected for assay and assay work is
currently ongoing, but results are not yet available. Trench #3
Following up on the encouraging results obtained from Trench #2,
the third Trench was located 123 m to the south of Trench #2 and
along the projected strike of the Director structure. This trench
uncovered a much wider mineralized structure of 16.5 m containing
thin veins of purple fluorite (up to 1.8 m wide) in granite on the
western part of the zone and a vein of massive fluorite (9.4 m
wide) on the eastern part of the zone. The structure lies along the
projected strike of the Director Vein and dips steeply to the west.
This site represents a swelling of the vein structure from Trench
#2 site to the north and it is uncertain whether this represents a
maximum width. Samples were collected across the zone for assay and
assay work is currently ongoing, but results are not yet available.
The Company continues to do trenching to the south of Trench #3 and
will provide updates as trenching is completed. The next trench is
Trench #4 and is planned to be 100 m to the south of Trench #3 and
along strike. About the Company The Company is a specialty mineral
resource company engaged in the development of fluorspar deposits
located in St. Lawrence, Newfoundland, Canada, and is reactivating
the existing Blue Beach and Terefare underground fluorspar mines,
expanding the existing mill, constructing a new,
environmentally-sound Tailings Management Facility through its
50/50 joint venture with Arkema Inc., called Newspar. The Company
is also building a new deep-water marine terminal in the outer St.
Lawrence Harbour for the export of fluorspar concentrate product.
Previous fluorspar operators, Alcan and Minworth, who operated on
Blue Beach North and Tarefare veins, produced in excess of 4.6
million tonnes of fluorite (CaF(2)) in a 47 year history of
production ending in 1991. At a cut-off grade of 20% CaF(2) and a
minimum horizontal thickness of two metres, the Mineral Resources
of Blue Beach North and Tarefare veins total approximately 9.1
million tonnes of Indicated Rineral resources at an average grade
of 42.0% CaF(2), and 950,000 tonnes of Inferred Mineral Resources
at an average grade of 31.1% CaF(2), in each case, estimated by the
Roscoe Postle Associates Inc. 43-101 technical report dated April
29 2011 (the "43-101 Report"). At a cut-off grade of 30% CaF2 and a
minimum horizontal thickness of two metres, the Probable Mineral
Reserves of the Blue Beach North and Tarefare veins total
approximately 5.4 million tonnes at an average grade of
approximately 39.8% CaF(2). The Mineral Reserves are part of the
Mineral Resources. The key assumptions, parameters and methods used
to estimate the Mineral Resources and Mineral Reserves, as well as
other relevant information, including data verification, with
respect to the Blue Beach North and Terefare veins can be found in
the 43-101 Report which has been filed under the Company's profile
on Sedar (www.sedar.com). The Blue Beach North and Tarefare veins
have overall average widths of 5 m and 3.5 m respectively. Jim
Reeves, Senior Geologist with CFI, who is Qualified Person as
defined in National Instrument 43-101 - Standards of Disclosure for
Mineral Properties, reviewed and approved the technical content of
this release. The historic production information provided has not
been verified by the Company and is provided for reference only.
Jim Reeves was on site during the trenching at the Director Vein
and verified the data collected. The trenched area of the Director
Vein was washed down to remove as much till material as possible to
expose the bedrock and to permit geological mapping and sampling.
Each of the trenches were mapped in detail, including the
lithologic units and the structures. Continuous chip samples across
each of the designated mineralized intervals were collected,
bagged, labelled and sealed. Chip samples of the wall rock, one
meter on each side of the mineralized zones, were also collected,
bagged, labelled and sealed. For more information please see:
www.canadafluorspar.com Neither 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. SOURCE Canada Fluorspar
Inc. PDF with caption: "Appendix A Schematic - Director Trench
Locations". PDF available at:
http://stream1.newswire.ca/media/2012/03/01/20120301_C9102_DOC_EN_10682.pdf
Canada Fluorspar Inc. CONTACT: Lindsay GorrillPresident and
CEOCanada Fluorspar Inc.Tel:
1-800-823-8095lgorrill@canadafluorspar.com
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