VANCOUVER, May 30, 2019 /CNW/ - Sun Metals Corp. ("Sun Metals" or the "Company") (TSXV: SUNM) announces commencement of the 2019 exploration campaign at its 100% owned Stardust project in northcentral British Columbia. Crews were mobilized to site on May 11th to prepare camp and road access. The 2019 program will consist of diamond drilling, along with surface and downhole borehole electromagnetic geophysics (BHEM) and continued geological studies to improve knowledge of the Stardust mineralized system. The budget for the 2019 program is $5.4 million.
The primary focus of the diamond drill program is to explore around the mineralization identified in drill hole DDH18-SD-421, (see press release at https://sunmetals.ca/news/2018/) which returned a 100.00 metre interval of 2.51% copper, 3.03 grams per ton (g/t) gold, and 52.5 g/t silver for a 4.99% Copper Equivalent (Cu Eq)(1).
"We are excited to be back in the field again," stated Steve Robertson, President and CEO of Sun Metals, "There is no historic drilling around last season's drill hole 421 intersection, and we believe it is open for expansion in all directions. We are eager to start chasing this high-grade mineralization back to the source of the system."
Grant of Incentive Stock Options
The Company has granted incentive stock options to purchase up to 75,000 common shares in the capital of the Company until May 27, 2024 at an exercise price of $0.55 per common share to Robert Carriere, a consultant who will be providing investor relations activities to the Company. The incentive stock options were granted in accordance with the Company's Stock Option Plan.
Technical aspects of this news release have been reviewed 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.
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, 43-101 compliant resource estimate published by the Company in January 2018. GeoSim Services Inc. provided the following estimate.
Stardust Project - Canyon Creek zone Mineral Resource Estimate(1):
% Cu Eq
(1)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
Sun Metals believes B.C. is a reliable jurisdiction with excellent exposure to capital markets, a deep pool of exploration professionals, a wealth of supporting services, and exceptional infrastructure with direct access to Pacific markets.
For further information please visit Sun Metals' website at www.Sunmetals.ca.
Cautionary Note Regarding Forward-Looking Statements
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements". Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.
SOURCE Sun Metals
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