VANCOUVER, April 1, 2020 /CNW/ - Sun Metals Corp. ("Sun
Metals" or the "Company") (TSXV: SUNM) is pleased to
announce financial results and operating highlights for the year
ended December 31, 2019.
2019 Overview
Sun Metals has realized significant discovery success at the
Stardust Project ("Stardust"). In 2018, our Stardust
technical team discovered the 421 zone by drilling DDH18-SD-421,
which returned 100 metres of 5.05% copper equivalent
(CuEq)1. In 2019, we followed up this
discovery by intersecting the 421 zone with 15 additional drill
holes delineating a significant high‐grade copper‐gold system.
We also consolidated ownership of Stardust and completed a
$6,151,500 bought-deal private
placement. Combined, we have increased our exposure to, and ability
to achieve additional discovery success at Stardust.
2019 Highlights
Created 100% exposure to a quality high-grade asset.
On April 12, 2019, the Company
acquired all of the issued and outstanding common shares of
Lorraine Copper Corp. ("Lorraine") by way of a statutory plan of
arrangement under the Business Corporations Act (British Columbia) (the "Arrangement"). Sun
Metals now owns 100% of Stardust with no royalties.
Funded future growth.
On October 23 and 30, 2019, the
Company closed the first and second tranches of a bought-deal
private placement, pursuant to which the Company issued 8,100,000
common shares of the Company on a flow-through basis (the "Premium
FT Shares") at a price of C$0.315 per
Premium FT Share issued, and 14,400,000 common shares of the
Company on a flow-through basis (the "FT Shares") at a price of
C$0.25 per FT Share for aggregate
gross proceeds of $6,151,500 (the
"Offering"). In connection with the Offering the Company paid
commissions, legal fees and filing fees totaling $0.5 million.
Delivered continued exploration success.
The Company's
2019 exploration drilling at Stardust demonstrates continuity of
mineralization in the 421 zone, intersecting significant copper
gold mineralization in 15 drill holes. Highlights of 2019
drilling include2:
- 142.35 metres grading 1.22% copper, 1.28 grams per tonne
("g/t") gold, 21.8 g/t silver and 0.41% zinc for a 2.40% copper
equivalent (CuEq) from drill hole DDH19-SD-428D;
- 90.05 metres grading 1.08% copper, 1.40 g/t gold, 21.6 g/t
silver and 0.22% zinc for a 2.24% CuEq from drill hole
DDH19-SD-429M;
- 107.00 metres grading 1.64% copper, 1.77 g/t gold, 28.6 g/t
silver and 0.03% zinc for a 3.02% CuEq from drill hole
DDH19-SD-430D;
- 86.40 metres grading 1.65% copper, 1.56 g/t gold, 28.8 g/t
silver and 0.28% zinc for a 3.00% CuEq from drill hole
DDH19-SD-437M;
- 24.85 metres grading 3.13% copper, 4.85 g/t gold, 93.5 g/t
silver and 0.28% zinc for a 7.12% CuEq from drill hole
DDH19-SD-436D; and
- 41.55 metres grading 2.33% copper, 2.73 g/t gold, 44.3 g/t
silver and 0.07% zinc for a 4.47% CuEq from drill hole
DDH19-SD-441M.
In total 16 mineralized intercepts in the 421 zone have
established a plunge-length of 375 metres and the zone remains open
for extension.
___________________________
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1 See
press release dated November 14, 2018 available at
www.sunmetals.ca or the Company's profile on SEDAR at
www.sedar.com for further details.
|
2 See
press releases dated August 13, 2019, August 26, 2019, October 3,
2019, January 20, 2020 and February 21, 2020 available at
www.sunmetals.ca or the Company's profile on SEDAR at www.sedar.com
for further details of exploration results.
|
Outlook
Sun Metals expects to continue exploring Stardust with the
intent to identify additional mineralization and create shareholder
value through discovery and delineation.
Subsequent to year end the COVID-19 outbreak was declared a
pandemic by the World Health Organization on March 11, 2020. The situation is dynamic and the
ultimate duration and magnitude of the impact on the Company's
planned 2020 exploration program, the economy, and capital markets
are not known at this time. Sun Metals is closely monitoring
the situation and, following the COVID-19 safety guidelines
outlined by the Government of Canada, has implemented measures at its
Vancouver office to ensure the
health and safety of staff, including work from home processes and
suspension of any non-essential travel. The Company continues
to plan for the 2020 field program, currently intended to begin in
June 2020, and will adjust plans as
warranted or directed as more information becomes available. The
COVID-19 pandemic may impact the ability of the Company to safely
operate the currently contemplated form of camp at site and the
availability of contractors and staff.
"The health and safety of our employees, contractors and
community members continues to be the top priority for Sun Metals
and we will remain vigilant and innovative to maintain this core
value. The timing and form of the 2020 field program may be altered
to accommodate the COVID-19 pandemic and government recommendations
while keeping a focus on our objective of advancing the Stardust
Project." said Steve Robertson,
President and CEO.
The Company's principal objective in 2020 is to continue to
advance exploration at Stardust in order to determine if the
project hosts mineralization with the potential to be exploited
economically. The Company plans to continue focusing its efforts on
additional diamond drilling to follow up on the discovery and
delineation of the 421 zone in 2018 and 2019.
During 2020, the Company is planning to carry out an exploration
program focused on growing the high-grade 421 zone and exploring
for similar thick high-grade, massive sulphide zones within the
Stardust Carbonate Replacement Deposit (CRD) system. A $3.8-million fully funded program is planned,
which will include approximately 12,000 metres of diamond drilling
expected to begin in late spring with up to three drill rigs on
site, as well as borehole electromagnetic geophysical surveys
(BHEM) and continued geological studies.
In July 2018, discussions with
Takla First Nation resulted in the successful negotiation and
execution of an Exploration Agreement to facilitate the exploration
activities to be undertaken at Stardust, which is located within
the claimed traditional territory of Takla First Nation. The
Exploration Agreement expired at the end of December 2019, and the Company has commenced
discussions with Takla First Nation regarding a new agreement.
Selected Financial Data
The following selected financial data is derived from
our Consolidated Financial Statements and related notes
thereto for the periods indicated, as prepared in accordance with
International Financial Reporting Standards. Details of these
results are described in the Consolidated Financial Statements and
Management's Discussion and Analysis for the year ended
December 31, 2019. These documents
can be found on the Company's website (www.sunmetals.ca) or on
SEDAR at www.sedar.com. All dollar figures are expressed
in Canadian $.
|
For the year
ended
December 31, 2019
|
For the year
ended
December 31, 2018
|
For the period
June
23, 2017 to
December 31, 2017
|
Total
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
Exploration and
evaluation expenditures
|
$
|
7,500,744
|
$
|
3,323,555
|
$
|
621,951
|
Net loss for the
period attributable to shareholders
|
$
|
6,948,331
|
$
|
7,892,443
|
$
|
953,583
|
Total comprehensive
loss for the period
|
$
|
6,948,331
|
$
|
7,892,443
|
$
|
953,583
|
Basic and Diluted
Loss per Share
|
|
(0.06)
|
|
(0.12)
|
|
(0.03)
|
|
|
|
|
As at December
31,
2019
|
As at December
31,
2018
|
Total
assets
|
$
|
28,306,283
|
$
|
7,814,202
|
Current
liabilities
|
$
|
2,465,928
|
$
|
2,687,417
|
Non-current
liabilities
|
$
|
131,937
|
$
|
131,678
|
Cash dividends
declared
|
$
|
-
|
$
|
-
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This press release should be read in conjunction with
Sun Metals' Consolidated Financial Statements and Management's
Discussion and Analysis for the year ended December 31, 2019. These documents can be found
on the Company's website (www.sunmetals.ca) or under the Company's
profile on SEDAR at www.sedar.com. Shareholders may receive a
printed copy of the audited consolidated financial
statements, free of charge, upon request.
Qualified Persons and 43-101 Disclosure
Technical
aspects of this news release have been reviewed, verified and
approved by Ian Neill P.Geo., Vice
President Exploration of Sun Metals, who is a qualified person as
defined by National Instrument 43-101 – Standards of Disclosure for
Minerals Projects.
On Behalf of the Board of Directors of
SUN METALS CORP.
Steve Robertson
Chief Executive Officer
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.
About Sun Metals
Sun Metals is advancing its 100%
owned flagship, high-grade Stardust Project located in northcentral
British Columbia, Canada. Stardust
is a high-grade polymetallic Carbonate Replacement Deposit with a
rich history. Sun Metals also owns the Lorraine copper-gold project
(joint-ventured with Teck Resources Limited), and the OK
copper-molybdenum project.
The Canyon Creek copper-gold skarn zone at Stardust was the
subject of a 2018, NI 43-101 resource estimate published by the
Company titled "Stardust Project NI 43-101 Technical Report Omineca
Mining Division, British Columbia"
with an effective date of January 8,
2018. In that report, GeoSim Services Inc. provided the
following estimate.
Stardust Project - Canyon Creek zone Mineral Resource
Estimate(3):
Resource
Category
|
Tonnes
|
Copper %
|
Zinc %
|
Gold g/t
|
Silver g/t
|
% Cu Eq
|
Indicated
|
985,000
|
1.34
|
0.62
|
1.59
|
36.8
|
2.92
|
Inferred
|
1,985,000
|
1.24
|
0.14
|
1.72
|
30.5
|
2.65
|
(3)The cut-off grade
used in the resource estimate was 1.5% copper equivalent (Cu Eq).
Metal price assumptions for the Cu Eq calculation were $3.00/lb
Copper, $1.25/lb Zinc, $1,300/oz Gold and $18/oz Silver. Adjustment
factors to account for differences in relative metallurgical
recoveries of the constituents will depend upon completion of
definitive metallurgical testing. The following equation was used
to calculate copper equivalence: Cu Eq = Copper + (Zinc x 0.4167) +
(Gold x 0.6319) + (Silver x 0.0087). A cut-off grade of 1.5% Cu Eq
represents an in-situ metal value of approximately $100/tonne which
is believed to represent a reasonable break-even cost for
underground mining and processing. These are not mineral reserves
and no work has been completed that demonstrates economic viability
at the Project.
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A corporate presentation is available on Sun Metals' website at
www.Sunmetals.ca.
Cautionary Note Regarding Forward-Looking
Statements
All statements in this news release, other
than statements of historical fact, are "forward-looking
information" with respect to Sun Metals within the meaning of
applicable securities laws, including, but not limited to
statements with respect to those that address mineralization at the
Stardust project; relative size of mineralization at the 421 zone,
geophysical surveys, use of instrumentation data, and goals and
expectations pertaining to metallurgical results; the 2020 program
and the use of flow-through dollars; the potential quantity and/or
grade of minerals; the growth potential of the Stardust project;
planned mining methods and mineral processing; break-even cost for
the Stardust project; British
Columbia as a reliable jurisdiction for mining; proposed
timing of exploration and development plans; potential conversion
of inferred resources to measured and indicated resources;
potential extension and expansion of mineral resources;
negotiations with the Takla First Nation; the potential impact of
the COVID-19 pandemic; and the focus of the Company in the coming
months. Forward-looking information is often, but not always,
identified by the use of words such as "seeks", "anticipates",
"plans", "continues", "expects", "projects", "predicts",
"potential", "targets", "intends", "believes", "potential",
"budgets", "schedules", "estimates", "forecasts" and similar
expressions (including the negative of such expressions), or
describes a "goal", or variation of such words and phrases or state
that certain actions, events or results "may", "should", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made including, among
others, assumptions about future prices of gold and other metal
process; currency exchange rates and interest rates; favourable
operating conditions; political stability; obtaining governmental
approvals and financing on time; obtaining renewals of existing
licences and permits and obtaining required licences and permits;
labour stability; stability in market conditions; availability of
equipment; accuracy of mineral resources; successful resolution of
disputes and anticipated costs and expenditures. Management
believes these estimates and assumptions are reasonable. In
addition, many assumptions are based on factors and events that are
not within the control of Sun Metals and there is no assurance they
will prove to be correct.
Such forward-looking information, involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to the
speculative nature of the Company's business; the Company's
formative stage of development; the Company's financial position;
possible variations in mineralization; conclusions of future
economic evaluations; business integration risks; changes in
project parameters as plans continue to be refined; current
economic conditions; future prices of commodities; fluctuations in
the securities market; fluctuations in currency markets; change in
national and local government, legislation, taxation, controls,
regulation and political or economic development; inability to
obtain adequate insurance to cover risks and hazards; possible
variations in grade or recovery rates; the costs and timing of the
development of new deposits; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; the timing and success of exploration activities
generally; delays in permitting; possible claims against the
Company; the timing of future economic studies; labour and employee
disputes and other risks of the mining industry; delays in
obtaining governmental approvals, financing or the completion of
exploration; relationships with and claims by local communities and
First Nations; negotiations with the Takla First Nation;
assumptions about the effect of the Covid-19 pandemic; and title to
properties as well as those factors discussed in the Annual
Information Form of the Company dated April
1, 2020 in the section entitled "Risk Factors", under Sun
Metals' SEDAR profile at www.sedar.com.
Although Sun Metals has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
information, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Sun Metals disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise unless required by law. Accordingly, readers should
not place undue reliance on forward-looking information.
SOURCE Sun Metals