TORONTO, Aug. 20, 2018 /CNW/ - Orefinders Resources Inc.
("Orefinders" or the "Company") (TSX.V: ORX) is pleased to announce
that it has closed its McGarry Mine & Larder-Lake project
acquisition as described in the Company's April 3rd, 2018 News Release.
"We were able to acquire the McGarry Mine & Larder-Lake
projects that were previously tied up in litigation and
environmental issues and we have since come to an agreement with
the Province which effectively eliminates the issues impeding
development of the region. With this acquisition, Orefinders has
acquired a very high-grade resource which has substantial
exploration upside. We've also acquired the data from over 100,000
metres of drilling along with substantial geophysics. In the near
term, we will be releasing our new interpretations, geological
model and exploration plan for this asset and others. This is the
type of acquisition that falls directly inline with our philosophy
of finding new deposits on old mines," said Stephen Stewart, Orefinders' Chief Executive
Officer.
About McGarry Mine & Larder-Lake Project
The
McGarry Mine & Larder-Lake project is in Virginiatown, Ontario within the Abitibi
Greenstone Belt and spans 3.0km on one of the world's most prolific
gold structures, the Cadillac Larder-Lake Break. The property
encompasses 681 hectares and is comprised of 46 Patented Mining
Claims and 5 Mining Licenses of Occupation. On site infrastructure
includes a head frame, shaft with compartments, hoist, offices, and
fully functional core shack all refurbished over the last ten
years. McGarry is easily accessible with the Trans-Canada
Highway running directly through the property. Click here to view a
map of the McGarry Mine & Larder-Lake Project.
McGarry Historical Mineral Resources
The McGarry
Property was the subject of a PEA study in 2011 that outlined a
historical mineral resource of 447,000 tonnes grading 7.89 gpt gold
for a total of 112,000 gold ounces in the Indicated Category and an
additional 157,000 tonnes grading 5.83 gpt gold for a total of
29,000 ounces in the Inferred Category as listed in Table 1
below.
|
|
|
|
|
|
Cut to 51.4 gpt
gold
|
Uncut
|
Mineral Resource
Category
|
Tonnes
|
Grade (gpt
gold)
|
Gold
(oz)
|
Grade (gpt
gold)
|
Gold
(oz)
|
Indicated
|
|
|
|
|
|
|
Total Indicated (all
zones)
|
447,000
|
7.89
|
112,000
|
8.57
|
123,000
|
|
|
|
|
|
|
Inferred
|
|
|
|
|
|
|
Total Inferred (all
zones)
|
157,000
|
5.83
|
29,000
|
5.83
|
30,000
|
|
Table 1:
McGarry Historical Mineral Resource Estimate,
Armistice Resources 2011 Technical Report
|
This estimate was based on a 3.43 gpt Au lower cut-off with
assay grades limited to 51.4 gpt gold. A specific gravity of
2.79 grams per cubic metres was used along with a minimum
horizontal mining width of 1.5 metres. The report is
available at www.sedar.ca under Kerr Mines Inc. and its amended
version was published on 30 September 2011. Please note that
these are historical mineral resources and should not be relied
upon since an Orefinders' Qualified Person has not undertaken the
necessary work to establish any Mineral Resources or Mineral
Reserves as defined in NI43-101. Refer to the disclaimer at
the end of this news release for more details.
McGarry Production and Infrastructure
As recently as
2013 the McGarry Mine was in production from significant
underground workings and was undergoing underground exploration.
Kerr/Armistice spent considerable capital upgrading McGarry's
infrastructure including the shaft, hoist and onsite facilities
necessary to extract ore from underground. Additionally, extensive
underground exploration yielded outstanding grades over very long
drift lengths, including:
325 N Zone – 2280 sublevel
- 8.2g/t gold over 98m length and
1.5m width, Stope #1 (E & W)
- 4.6 g/t gold over 26m length and
1.3m width, Stope #1.5 (E &
W)
- 7.6 g/t gold over 79.2m length
and 1.4m width, Stope #2 (E &
W)
325 N Zone – 2330 sublevel
- 11.1 g/t gold over 24m length and
1.7m width, Stope #1 (E)
- 6.1 g/t gold over 7.6m length and
1.2m width, Stope #2 (E)
- 4.3 g/t gold over 7.6m length and
1.8m width, Stope #2 (W)
440 N Zone – 2250 level
- 6.2 g/t gold over 18m length and
1.6m width
The above exploration results and grades include 35% dilution
and are reported from Kerr Mines
news release April 22, 2013 which is
available on Sedar.com.
McGarry Exploration Potential
The McGarry Property is
host to numerous gold mineralized zones and many have only been
drilled to relatively shallow depth. The following is a short
summary of potential targets on the Property that merit
follow-up.
McGarry Mine
Development work by the previous owners has prepared the 325N Zone
for production. This zone is of particular interest because
of its high grades as described above.
Exploration on the McGarry Deposit was quite extensive in and
near the existing mining infrastructure but generally outside the
area of the shaft between the 1,250 and 2,250 ft levels exploration
has been a lot less intensive. Considering the abundant
underground infrastructure, the targets that can be pursued can be
quite small. In particular, between the shaft and the eastern
limit of the Property, there is ample room for discovery and the
proximity of the historic Kerr-Addison mine opens up the
possibility of deep extensions of that deposit on the west side of
the Armistice Fault as suggested by north side down movement along
the Larder Lake Break (see MNDM OFR5831).
Barber-Larder Open Pit
The McGarry Property also hosts the Barber-Larder open pit which
produced 70,000 tonnes of materials, of which approximately 51,000
tonnes were processed at the Kerr Mill which returned a total of
6,700 ounces of gold for an average reconciled grade of 4.1 gpt
gold (see MNDM AFRI file 32D04SE0006). This area of the
property and its historical production are distinct from, although
abutting, the production and resources on the McGarry shaft
zone.
Barber-Larder Extensions
The Barber-Larder deposit was mined as a small open-pit by Golden
Shield Resources between November
1987 and July 1988. Production bottomed out at
approximately 46 metres. However, the deposit continues below
at similar grades (see MNDM, AFRI 32D04SE0006). Moreover,
beyond the top 120 metres vertical the deposit has not been much
explored and there are indications of significant gold
mineralization down to at least 600 metres vertical where a hole
intersected a narrow 30 cm core length interval at 11.7 gpt
gold.
To the west of the Barber-Larder deposit, previous exploration
identified a number of targets that merit follow-up.
Approximately 150 metres grid-west of the shaft a hole intersected
1.8 meters grading 3.4 gpt gold. 30 metres grid-east of this,
another hole intersected 3.9 gpt gold over 3.5 metres.
Approximately 25 metres east of the open pit a hole intersected
a 7.9 metre interval grading 7.5 gpt gold and although there is
only 330 metres between the eastern end of the old workings in the
Barber-Larder mine (120 metres) and the western end of the 2,250
foot level in the McGarry Mine the vertical distance is over 550
metres. Within this envelope there is ample room for
exploration.
Peninsula Zone
The Peninsula Zone is located immediately west of the Barber-Larder
Mine along the same package of deformed and altered rocks. A
hole drilled near the peninsular island returned 3.4 gpt gold over
a core interval of 6.1 metres at a vertical depth of 85 metres (see
MNDM AFRI 32D04SE0006).
Mill Zone and Western Zone
The Mill and Western Zones are located in a northeast striking
ultramafic unit that has been completely altered to
carbonate. The Mill Zone is located at the southern end of
the 750m long ultramafic unit and is
cut off by an east-northeast trending fault. Drilling on this
zone intersected up to 36.7 gpt gold over 2.1 metres.
The Western Zone is located near the northeastern end of the
same altered ultramafic unit. The zone was trenched over 75
metres in length and indicated the presence of a small mineralized
shoot approximately 15 metres long and 1.7 metres wide and assaying
an average of 3.9 gpt gold (see MNDM AFRI 32D04SE0402).
Dyke Zone
The Dyke Zone is located in the southeastern corner of the McGarry
Property and is hosted by an altered diorite or gabbro. The
NE trending dike is fractured in places and contains quartz and
calcite stringers with pyrite. The zone extends for over 300
metres and was sampled over about 100
m giving an average of 7.25 gpt gold over about 1.0 metres
in width (see MNDM AFRI 32D04SE0402).
Lamprophyre Zone
The Lamprophyre Zone is located on the southeastern corner of the
Property and is hosted by mafic volcanics of the Temiskaming
Assemblage. The mineralized zone consists of a NE trending shear at
the contact of a lamprophyre dike. Values up to 3.9 gpt gold
are reported over 0.9 metres (MNDM, ARV050).
Arjon Zone
The Arjon Shear Zone is located in the northeast corner of the
McGarry Property and extends to the northeast onto the adjacent
Kerr Property. There are a few drill holes marked on a 1941
map (MNDM ARV50, MDC03) and mapping indicates the presence sheared
ultramafics rocks transformed to green carbonate. The map
also shows some NE trending quartz veins several tens of metres
long but no assays. None of these drill holes were compiled
by later explorers and are of uncertain origin. The Arjon
Shear is oriented NE and cuts the Blake River mafic volcanics, some
altered Ultramafic Units, and the syenite porphyry. Only low
grade gold values (up to 2.8 gpt Au) were found on the occurrence
as there was generally no interest in the past for bulk-minable
targets; little work was done after the 1930's. On the
adjacent Kerr property there is a description of a "Northern"
crosscut that was driven on the 2,500 foot level across the
Temiskaming sediments into some mafic volcanics which are
presumably the Blake River Assemblage. This reference
describes a 400 foot (122 metres) section of drifting in altered
and sheared volcanics that assayed a minimum of 200 ppb over the
whole interval with some higher grade sections within.
This target needs to be followed-up for its potential for
intrusion-hosted bulk-minable gold mineralization.
Orefinders Payment to Kerr
Mines
Orefinders has delivered the purchase
consideration to Kerr Mines Inc.("Kerr") being 8 million of its
common shares. Additionally, Kerr will receive 440,248 shares in
PowerOre Inc. as the Kerr/Orefinders transaction was agreed to
prior to Orefinders Plan of Arrangement with PowerOre. The 8
Million Orefinders shares are subject to a lock up agreement with
Kerr and are scheduled to be free trading over a two-year
period.
About Orefinders Resources Inc.
Orefinders is a Gold
exploration and development company focused exclusively within the
Abitibi Greenstone Belt. The Company owns all of its assets 100%
and is listed on the Toronto Venture Exchange under the symbol
ORX.
Cautionary Statement
The McGarry Project contains a
historic mineral resource estimate. Python Mining Consultants Inc.
was commissioned by Armistice Resources Corp (now Kerr Mines) to prepare a mineral resource
estimate as reported in a technical report titled "Technical Report
and Mineral Resource Estimate McGarry Project, McGarry Township
(Virginiatown), Ontario". This report was published on
8 April 2009 and was amended on
30 September 2011. Orefinders
considers the historical estimate to be relevant and reliable given
that it was prepared under NI 43-101 standards. However, Orefinders
considers this resource estimate to be historical as it has not
independently verified it, and therefore it cannot be relied upon
as a current mineral resource for Orefinders. A qualified person of
Orefinders has not done sufficient work to classify the historical
estimate as current mineral resources or mineral reserves and as
such, Orefinders is not treating the historical estimate as current
mineral resource.
QP Statement
The technical information contained in
this news release has been reviewed and approved by Charles Beaudry, P.Geo, Director and Vice
President Exploration for Orefinders, who is a Qualified Person as
defined in "National Instrument 43-101, Standards of Disclosure for
Mineral Projects."
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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.
SOURCE Orefinders Resources Inc.