TORONTO, March 16, 2017 /CNW/ - Orefinders Resources Inc.
("Orefinders" or the "Company") (TSX.V: ORX) is pleased to present
its 12-month plan for advancing the Mirado Gold Project near
Kirkland Lake, Ontario.
"Part and parcel of the Company's extremely low valuation of the
last few years has been both the lack of, and cost of,
capital. We are proud to say that Orefinders is now in the
strongest financial position it has been since the early days of
its inception, and we intend to prudently invest our capital to
develop the Mirado Project and deliver share appreciation to our
investors. We feel that 2017 will be an exciting year for
Orefinders and we are eager to present our strategy below to our
shareholders," said Stephen Stewart,
Orefinders CEO.
PEA & Updated Resource Calculation
Orefinders has initiated an updated NI 43-101 Mineral Resource
Estimation and Preliminary Economic Assessment ('PEA') on the South
Zone. The independent PEA report, which will be based in part on
the updated resource estimate, will contemplate a high-grade
near-surface gold resource which could potentially be put into
production. The PEA will consider toll milling scenarios which
utilize existing milling capacity in regional mills, many of which
have excess capacity. A toll milling scenario reduces Orefinders
CAPEX requirements, eliminates the need for a tailings facility and
its lengthy permitting period, and provides the opportunity to
continue to generate cash flow for the Company.
Amax Drill Holes
The Company would also like to announce that it rediscovered the
historic drill holes which were cored by AMAX Minerals in the early
1980s. The core from the drill holes is stored at the Ontario
Ministry of Northern Development & Mines drill core library in
Matachewan, Ontario. With this
drill core now located, Orefinders and its independent consultants
plan to maximize the impact of these holes on the geological
modelling project, updated mineral resource estimate and PEA
study.
Resampling & Assaying 2013 Drill North Zone Drill holes
for Zinc and other Base Metals
In 2013, Orefinders drilled 4 diamond holes for 1,580 metres at
the North Zone of Mirado. Each of these holes were sampled and
assayed for gold, but not for zinc and other base metals. The North
Zone hosts multiple near surface historic zinc intersections, which
were drilled in the early 1980s by AMAX Minerals Corp. (See table
below. Note that all AMAX drill results are considered to be
historic and not NI 43-101 compliant.) Orefinders did
identify multiple gold rich and polymetallic lenses at the North
Zone with obvious zinc and copper mineralization, which have been
traced in drilling for at least 400 metres laterally and 300 metres
deep. The most abundant sulphide observed is pyrite with smaller
amounts of sphalerite (Zinc) and chalcopyrite (Copper). Orefinders
considers the North Zone to be a VMS (Volcanogenic Massive Sulfide)
style deposit with excellent base and precious metal potential.
AMAX Historical
North Zone DDH Intersections
|
|
|
|
|
|
|
DDH
|
Assay (Au
g/t)
|
Zn
(%)
|
Width
(metres)
|
From
|
To
|
1050-17
|
|
1.88
|
5.5
|
6.9
|
12.4
|
|
2.44
|
|
3.6
|
8.8
|
12.4
|
|
3.05
|
|
0.8
|
54.6
|
55.4
|
1050-15
|
|
1.10
|
1.2
|
31.1
|
32.3
|
|
|
|
|
|
|
1050-16
|
12.14
|
|
0.9
|
25.6
|
26.5
|
|
|
|
|
|
|
1050-18
|
3.60
|
|
1.2
|
13.7
|
14.9
|
|
|
1.22
|
0.8
|
32.0
|
32.8
|
|
2.89
|
|
2.9
|
53.3
|
56.2
|
|
|
1.30
|
1.7
|
54.7
|
56.2
|
|
|
1.26
|
0.6
|
70.4
|
71.0
|
|
|
|
|
|
|
Based on the AMAX data, Orefinders plans a re-assaying program
with industry standard QA/QC protocols as a low-cost opportunity to
further assess the zinc and other base metal potential on the North
Zone. Specifically, the Company will re-assay samples from
the 4 holes that Orefinders drilled on the North Zone in 2013, to
evaluate its base metal potential.
Drill Programs
The company is planning to complete at least two independent
drill programs:
1.
|
South Zone Open Pit:
This drill program is designed to extend the known mineralization
below the historic open pit westward to incorporate the MZ Zone.
Orefinders considers the MZ Zone to be a possible extension of the
Mirado South Zone Open Pit. The Company completed an extensive
trenching program on the MZ in 2014 that delivered the results
tabulated below. Orefinders has not yet had the opportunity
complete any follow-up drilling in these promising surface trench
results for the MZ Zone as listed below:
|
|
|
|
MZ Zone Trenching
Results
|
|
|
|
|
|
Trench-ID
|
Channel-ID
|
Length
(m)
|
Au
(g/t)
|
Comments
|
MZTR14-07W
|
1 -
12
|
Combined Length
of
|
1.8
|
Weighted
Average
|
|
(All
Channels)
|
59 Samples
(49.50m)
|
|
of Entire
Trench
|
MZTR14-07W
|
6.00
|
3.65
|
12.9
|
Pyritized
Volcanics
|
MZTR14-07W
|
Including
|
1.50
|
30.1
|
Pyritized
Volcanics
|
MZTR14-07W
|
8.00
|
4.45
|
2.2
|
Pyritized
Volcanics
|
MZTR14-07W
|
10.00
|
GRAB
|
18.0
|
Pyritized
Volcanics
|
MZTR14-02S
|
4.00
|
3.35
|
3.7
|
Pyritized
Volcanics
|
MZTR14-03N
|
6.00
|
1.15
|
9.8
|
Pyritized
Volcanics
|
MZTR14-03N
|
8.00
|
0.70
|
20.5
|
Pyritized
Volcanics
|
|
|
|
|
|
The geology of the MZ Zone appears to be similar to historic
Open Pit. Orefinders objective for this program is to join
the two Zones together via infill drilling. Orefinders now owns
100% of the MZ Zone and is funded to complete a drill
program.
2.
|
North Zone: In
addition to the resampling and re-assaying the 2013 North Zone
drill holes, Orefinders plans on completing new drilling in this
highly perspective Zone. The North Zone was a former underground
mine which was in production 1940s, prior to the open pit
mine. The Orefinders 2013 drill program on the North Zone
yielded the high-grade intersections listed below, which warrant
follow-up drilling.
|
|
|
|
Orefinders North
Zone 2013 Drill Intersections
|
|
|
|
|
|
Hole
|
Interval
(m)
|
Grade (Au
g/t)
|
From
(m)
|
To
(m)
|
MD13-08
|
17.5
|
2.4
|
73.90
|
91.40
|
incl.
|
3.1
|
6.7
|
79.30
|
82.40
|
MD13-10
|
3.7
|
6.7
|
12.50
|
16.20
|
MD13-10
|
5.5
|
4.1
|
114.80
|
120.30
|
MD13-10
|
19.5
|
3.7
|
265.20
|
284.70
|
incl.
|
4.5
|
6.5
|
265.20
|
269.70
|
and incl.
|
6.0
|
6.3
|
278.70
|
284.70
|
MD13-25
|
6.0
|
6.3
|
48.00
|
54.00
|
MD13-26
|
5.7
|
4.3
|
291.50
|
297.20
|
|
|
|
|
|
Investor Relations
Orefinders communication with existing shareholders and
prospective shareholders is an important part of our business.
Orefinders' management feels that since it took over the day-to-day
operations of the company in the summer of 2015, it has
successfully re-positioned the company, strengthened its balance
sheet and put forth a strong and financed plan for the next 12
months that has the potential to create significant value for our
shareholders.
Management believes that the Company's improved financial
position along with its 12-month plan will resonate with investors
interested in the precious metals space. Accordingly, a budget has
been allocated for management to engage in innovative and low-cost
methods which will leverage social media and video outlets to
directly communicate with shareholders.
Asset Acquisitions
Management is constantly evaluating assets to acquire that will
be accretive to shareholders and fit within Orefinders' focus on
precious metals exploration and development assets in top-tier
jurisdictions. No acquisitions are imminent, although management
believes there will be opportunities to grow the Company's asset
base over the next 12 months.
QUALIFIED PERSON The scientific and technical
content of this news release has been reviewed by Dr. Bill Stone, P.Geo. and a Company Director, who
is a Qualified Person as defined by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101").
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. Certain information in this press release
may contain forward-looking statements. This information is based
on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Orefinders' assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Orefinders. Additional information identifying risks
and uncertainties is contained in filings by Orefinders with
Canadian securities regulators, which filings are available under
Orefinders' profile at www.sedar.com.
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SOURCE Orefinders Resources Inc.