VANCOUVER, Feb. 21, 2020 /CNW/ - Sun Metals Corp. ("Sun Metals" or "we" or the "Company") (TSXV: SUNM) is pleased to announce its 2020 exploration program at Stardust, the Company's 100% owned, high-grade copper-gold project located in northcentral B.C.
Our 2020 exploration program will focus on growing the high-grade 421 zone and exploring for similar thick high-grade, massive sulphide zones within this Carbonate Replacement Deposit (CRD) system. A $3.8 million 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 just two years, Sun Metals has realized significant discovery success at Stardust. In our first full season, in 2018, our technical team intersected one of that year's strongest discovery holes: DDH18-SD-421, which intersected 100 metres of 5.05% copper equivalent (CuEq)1. In 2019, we delineated what is now known as the 421 zone, on its own one of the most significant recent high‐grade copper‐gold discoveries in Canada.
"We know from the strength of mineralization encountered in drilling that Stardust is a robust mineralized system with a high number of pulses of mineralizing fluids. Long-lived and multi-phased systems are synonymous with large, high-grade deposits. We feel we have only scratched the surface of Stardust's potential," said Sun Metals President and CEO Steve Robertson.
Stardust is a large mineralized system with true district potential. It features a 2.2-kilometre corridor of mineralization including four mineralization styles typical of a CRD system: porphyry, skarn, manto and epithermal vein. Stardust is one of the few CRD systems in the world with all CRD components fully intact. Having the ability to view the overall structure of the system provides us the opportunity to better predict how to most efficiently and successfully explore it. Stardust's existing Canyon Creek copper-gold skarn zone is open for expansion and contains a NI 43-101 resource2.
See press release dated November 14, 2018 available at www.sunmetals.ca
See the technical report titled "Stardust Project Ni 43-101 Technical Report Omineca Mining Division, British Columbia" with an effective date of January 8, 2018 for further information, available at www.sunmetals.ca or under the Company's SEDAR profile at www.sedar.com
The 421 zone includes an extensive skarn alteration package, within which lies the high-grade copper-gold mineralization. Seventeen pierce points now define the 421 zone and have established continuity. Average mineralized drill intercepts in this zone (Table 1) are greater than historic drill intercepts in the nearby Canyon Creek zone². The 421 zone now comprises a plunge length of 375 metres and remains open for both extension and expansion.
New copper-gold targets
In addition, we will be drilling other copper-gold targets within the project's existing mineralized corridor. This type of system typically has a series of large mineralized panels that are joined together as part of a continuous system. Similar to other CRDs, our system is not one simple block of mineralization, but likely host to a group of different panels and zones. Work in 2020 will focus on further testing of the carbonate/phyllite contact that is key to the development of the Canyon Creek and 421 zones. Testing will include areas where we believe previous explorers did not test deep enough into the carbonate stratigraphy, and areas where we believe folding creates additional potential for significant alteration and mineralization.
The Company believes quality projects like Stardust are extremely rare. Fully funded to carry out the 2020 work program, our technical team is excited for the opportunity to continue to grow Stardust's potential.
Remaining results from 2019 Exploration Program
The two remaining drill holes for release from our 2019 exploration program include strong grades in the most northerly drill hole (Figure 1).
DDH19-SD-452D returned 3.00 metres grading 3.25% copper 4.32 grams per tonne (g/t) gold and 70.1 g/t silver, or 6.61% CuEq3 (Figure 2).
Drill hole DDH19-SD-452D is located on the most northerly fence of drilling in the 421 zone increasing the known plunge length to 375 metres. The strong copper grade and gold to copper ratio are good indicators of further potential in the area. Massive sulphide strongly enriched in gold has commonly been associated with fluid feeder pathways in this type of mineralizing system, thus emphasizing the remaining potential for deeper targets to the north down plunge, within the system.
DDH19-SD-454D returned no significant values.
For a plan map showing the location drill holes (Figure 1), click here:
For a long section featuring drill results from 2019 program (Figure 2), click here:
For a table of comprehensive drill results from 2018-19 (Table 1), click here:
Assumptions used in USD for the copper equivalent calculation were metal prices of $3.00/lb. Copper, $1,300/oz Gold, $18/oz Silver, $1.25/lb. Zinc and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Gold (g/t) x 0.6319) + (Silver (g/t) x 0.0087) + (Zinc (%) x 0.4167). The following equation was used to calculate gold equivalence: AuEq = (Copper (%) x 1.5824 + Gold (g/t) + (Silver (g/t) x 0.01385) + (Zinc (%) x 0.6593).
Quality Assurance / Quality Control
Drilling completed on the project in 2019 was supervised by on-site Sun Metals personnel who collected and tracked samples and implemented a full QA/QC program using blanks, standards and duplicates to monitor analytical accuracy and precision. The samples were sealed on site and shipped to Bureau Veritas (BV) in Vancouver BC for analysis. BV's quality control system complies with global certifications for Quality ISO9001:2008. Core samples were analyzed using a combination of BV's AQ270 process for low level concentrations (ICP-ES/MS aqua regia) and the MA270 process for higher level concentrations (ICPES/MS 4 acid digestion). Gold assaying was completed with FA330, a 30-gram fire assay with ICP-ES finish. Base metal overlimits were finalized with titration, with gold overlimits completed with a gravimetric finish. A silica wash was used between high-grade samples to ensure no sample carry over.
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.
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 Estimate4:
% CU EQ 4
The cut-off grade used in the resource estimate was 1.5% copper equivalent (Cu Eq). Metal price assumptions for the Cu Eq calculation in this table 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.
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; the 2019 program and winter camp including mineralized drill intervals, 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; 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; and title to properties as well as those factors discussed in the Annual Information Form of the Company dated May 28, 2019 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
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2020/21/c6775.html