/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES OF
AMERICA/
Trading Symbols: TSX-V: ZFR
OTC-ZPHYF
Shares Outstanding: 67,986,985
HALIFAX, NS, May 26, 2021 /CNW/ - Zephyr Minerals Ltd.
("Zephyr" or the "Company") (TSXV: ZFR) (OTC: ZPHYF),
is pleased to announce that it has received initial tailings
characterization data required to submit a mine permit application
for the Dawson gold deposit. The Company is on schedule with
respect to completing the mine permit application, with submission
to the Colorado Department of Reclamation and Mine Safety and the
Fremont County Board of
Commissioners expected to occur by June 30,
2021. All of the proposed mining activities at Dawson are on
privately owned lands and as such mine permitting does not require
the involvement of the Federal Bureau of Land Management.
The test results of representative tailings samples from the
Dawson gold deposit demonstrate the gold mineralized rock is
non-potentially acid generating. Sulfur is present as sulfate and
non-extractable sulfur. Process water filtered from the tailings
samples meet the EPA Ore Mining and Dressing Effluent Guidelines
and Standards (40 CFR Part 440 Subpart J). The State of Colorado uses the EPA effluent
standards in its regulations pertaining to mine permitting.
The proposed tailings supporting buttress material tested is
also non-potentially acid generating. Sulfur is predominantly
present as sulfate, with only one sample with detectable sulfide
sulfur. Neutralizing potential is dominated by carbonates. Results
indicate metal leaching will likely be consistent with background
levels typical of unmineralized granitic rocks. .
It is management's view that the highly attractive current and
forecast gold prices combined with the excellent gold grades at
Dawson creates a unique opportunity warranting acceleration of
development plans for the deposit. Moving now to obtain a mining
permit is the best way to enhance shareholder value at this
juncture.
A Preliminary Economic Assessment ("PEA") completed on the
Dawson deposit in 2017 demonstrates robust economics at a gold
price of US$1,250/oz. The PEA assumes
409,000 tonnes of mined/milled material with a diluted grade of 9.2
g/t gold, for recovery of 111,000 oz. gold at an all-in sustaining
cost of US$692/oz (see news release
of February 7, 2017). The PEA is
preliminary in nature and includes inferred mineral resources that
are too speculative geologically to have economic considerations
applied to them that would enable categorization as mineral
reserves. There has been insufficient drilling to define the
inferred resources as indicted or measured mineral resource;
however, it is reasonable to expect the inferred mineral
resources could be upgraded to indicated and possibly measured
resources with continued drilling. There is no guarantee that any
part of the mineral resources discussed herein will be converted
into a mineral reserve in the future.
The PEA was completed utilizing an NI 43-101 compliant resource
estimate* announced on July 23, 2013.
Additional surface drilling campaigns have been completed on the
Dawson deposit and the adjacent Windy Gulch deposit at various
intervals between 2013 and 2021 the results of which will be
incorporated in a future resource update.
Success in obtaining a mining permit at Dawson will, subject to
funding, enable the implementation of an underground development
program which will include construction of drill stations to
undertake infill drilling on the current resource as well as
exploratory drilling at depth. The underground infrastructure is
particularly important at Dawson as the deposit is blind with the
top approximately 130 meters below surface and dipping steeply
underneath Dawson Mountain which
results in inordinately long and expensive drill holes to explore
at depth from surface. It is planned to complete an updated
resource estimate for the project subsequent to completion of an
underground drilling program, the scheduling of which will hinge on
obtaining the mining permit and requisite funding.
The Company is actively seeking to engage a geologist to
complete mapping and sampling programs at Green Mountain and El
Plomo. The current USA/Canada
border restrictions and protocols due to Covid-19 is hampering the
search effort and may result in delays in completing these
programs.
During the permitting process for Dawson, management will have
the time to pursue additional projects for the Company. In this
process, management's preference will be precious metals projects
but will also review base metal projects that show exceptional
potential to grow into significant assets for the
Company.
Loren Komperdo, President and CEO
stated, "We are pleased with the results of the tailings
characterization studies and can now finalize the mining permit
application. The Company is well funded to both complete the
permitting process at Dawson and pursue additional projects, both
of which have the potential to be key drivers of value growth for
the company in the future."
* Details of the inferred resource can be found in the report
titled Resource Estimate Technical Report for the Dawson Property
Fremont County, Colorado, USA,
dated September 6, 2013, (the
"Report") and was prepared for Zephyr by Andrew Hilchey, P.Geo., Mercator Geological
Services Limited, Isobel Wolfson,
M.Sc., P.Geo, and Mark Graves,
P.Geo.. The Report is available at sedar.com.
Ms. Diana Sollner, MASc, MBA,
PEng, CDI.D., of GEM Services and independent of the Company, and a
Qualified Person under National Instrument 43-101, has reviewed and
is responsible for the scientific and technical information
concerning tailings characterization.
Mr. Mark Graves, P.Geo., vice
president of exploration for Zephyr and a Qualified Person under
National Instrument 43-101, has reviewed and is responsible for the
remainder of the scientific and technical information in this news
release.
About Zephyr Minerals Ltd.
Zephyr Minerals Ltd. continues to advance its 100% owned high
grade Dawson-Green Mountain property
in Colorado, USA. After expanding
it's land package to 1,385 hectares (3,574 acres) the Company now
controls a 12.2 km long Dawson-Green
Mountain mineralized trend. The Company believes the
combined Dawson and Green Mountain sections encompassing
approximately 9 km of mineralized trend provide excellent mineral
resource expansion potential.
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. The forward-looking statements contained in this
document are based on certain key expectations and assumptions made
by the Company, including, with respect to the use of funds from
the private placement, expectations and assumptions concerning
timing of receipt of required regulatory approvals and third party
consents and the satisfaction of other conditions to the completion
of the exploration work on the Dawson-Green Mountain Property. The
forward-looking statements contained in this document are made as
of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities
laws.
SOURCE Zephyr Minerals Ltd.