(TheNewswire)
Toronto, ON / TheNewswire / February 28, 2019 — Chilean Metals Inc. (“Chilean Metals,” “CMX” or the “Company”)(TSX.V:CMX, SSE:CMX, MILA:CMX, FRA: IVV1, BER : IVV1). Chilean Metals Inc is pleased to provide an update on its plans in advance of the PDAC.
Chilean Metals intends to solicit directly and through outside financial agents a financing of up to $1.5 million dollars. This financing will be done by way of private placement and will be structured as a unit offering. Each unit will comprise of a common share and a full share purchase warrant. Where each warrant and $.10 entitles holder to acquire an additional common share up to 24 months after the closing date for the transaction. The Company has been in discussion with existing shareholders and expect many to participate in the offering. Closing of the offering will be subject to the Company’s filing requirements with the TSX Venture Exchange. If insiders participate in the offering, it will constitute a related party transaction under MI 61-101; however will be exempt from valuation requirements and minority shareholder approval by virtue of the Company’s shares trading on the TSX Venture Exchange and the size of the offering and any shareholder participation. Shareholders wishing further information can contact Chilean CEO Terry Lynch at terry@chileanmetals.com.
“The capital is required to enable Chilean to do follow up drilling on our Trident Cobalt/Iron project in Nova Scotia. The figure below identifies a recent IP survey which we believe is a very positive development in our Exploration program at Trident.” Commented Chilean CEO Terry Lynch.
Click Image To View Full Size
Figure 2 presents a plan view of the IP model at approximately 50m depth. The location of the shallow, historic drilling is indicated. This area comprises only a very small proportion of the overall large anomaly area.
Click Image To View Full Size
As previously announced, core from two historic holes drilled in 1987 at the Trident prospect was located at the Department of Natural Resources core library at Stellarton. The holes were drilled to test a subcropping magnetite occurrence and were very shallow, being 39.9m and 36.6m deep respectively and angled at 45o.
Results from the assays were :
-
- BR-87-1
-
- 25m @ 547ppm Co and 20.9% Fe from 5m depth
-
-
- BR-87-2
-
- 29m @ 662ppm Co and 21.9% Fe from 3m depth
-
Including
-
-
- 15m @ 812ppm Co and 26.9% Fe from 15m depth
-
Cobalt mineralisation commences immediately below the base of overburden in both holes. The holes intersected a mafic quartzite which has been flooded with magnetite and disseminated pyrite. It is this pyrite that hosts the cobalt mineralisation.
Since disseminated pyrite is very amenable to detection by the IP method, IP is considered a very useful tool for directly mapping potential mineralisation size, location and geometry.
Mick Sharry, President and COO of Chilean Metals commented as follows: “We are very pleased and encouraged by the strength and very large scale of the IP anomaly at Trident. The IP highlights the area of historic drilling which has returned strong cobalt assays but indicates that this is only a small part of a much larger anomaly which starts very near surface and has excellent depth extent.
Just for reference, a body with dimensions 800m x 200m x 200m would represent a mass of approximately 86Mt which could be globally significant.
We could not really have hoped for a more positive result from the IP survey.
The next step is drilling and we look forward to thoroughly and aggressively testing this exciting target.”
The widths of mineralisation intersected are interpreted based on all available data to be close to true widths. Chilean follows systematic and rigorous sampling and analytical protocols which meet and exceed industry standards. All drill holes are diamond core holes with NQ core diameters. Drill core was stored at the DNR facility at Stellarton since the holes were drilled in 1987. The core is then cut in half with a diamond saw blade with half the sample retained in the core box for future reference and the other half placed into a pre-labelled plastic bag, sealed with a plastic zip tie, and identified with a unique sample number. The core is typically sampled over a 1 to 2 meter sample interval unless the geologist determines the presence of an important geological contact. The bagged samples are then stored in a secure area and are then sent by batch to the Actlabs laboratories in Ancaster for assay. Chilean independently inserts certified control standards, coarse field blanks, and duplicates into the sample stream where appropriate to monitor data quality. These standards are inserted “blindly” to the laboratory in the sample sequence prior to shipping. Laboratory duplicates are also analyzed. At the laboratory samples are dried, crushed, and pulverized and then analyzed using INAA.
Timing on Trident drilling would be Q2 2019 subject to closing the necessary amount of financing. In addition to our exploration on the Trident program we are also targeting in this round to have sufficient capital to commence an initial drill program on our Copper Gold project Tierra De Oro (TDO) near Copiapo in Chile. This program will test a very large untested IP that is well supported geologically.
“Tierra de Oro …land of gold is a very large prospect. It is one of those that as explorers gets us excited. It is in a prolific area with a number of producing mines like Lundin Mining’s Candelaria and many others. We have spent over $5,000,000 exploring TDO and this particular prospect has never been tested. We expect to drill this in Q2 before Trident or in Q3 after Trident subject to rig availability.” said Terry Lynch Chilean CEO.
Click Image To View Full Size
“Also in 2019 we look forward to seeing what impact Teck Resources proposed sale of 30% of the Que Brada Blanca project for a contribution of $1.2 billion USD by the Sumitomo Group has on the potential for the Copaquire deposit being put into a production schedule. This sale closes in April and we see it as very positive development for Copaquire. Copaquire had two 43-101 deposits when it was sold to Teck for $3 million dollars (USD) and a 3% NSR. Teck maintains the right to acquire 1% of the 3% royalty for payment of $3 million dollars.”
“This sale and the acknowledgement that Collahuasi, Teck’s high Andean neighbor and one of the World’s largest Copper Mines, is talking to Teck about sharing resources in the area to maximize economic efficiencies is definitely bullish for our royalty being realized. At this point it is looking more and more like a when our royalty will commence not an if it will ever produce. With the World predicted to be in a Copper deficit market in a couple of years it is highly likely that we will hear some good news on this what could turn out to be a multimillion dollar annual cash flow stream for Chilean” said Terry Lynch.
It has been a devastating time to be a
shareholder in junior mining these last several years but a look at
charts like the one below which compares the commodities to stock
ratio suggests that perhaps the tide is about to turn. With a market
cap of $2 million dollars the potential upside at CMX is significant.
CMX believes this is going to be the start of a commodity bull and
intends to do everything in its power to insure CMX shareholders get a
chance to participate. 
Click Image To View Full Size
On an administrative note CMX has changed CFOs. Marelli Support Services remains our contract provider with Rob Suttie replacing Dan Crandall as CFO. Chilean Metals wishes to Thank Dan for his contributions over the years and wish him best of luck in his new job. In addition Chilean is pleased to announce that Peter Kent long time CMX director has agreed to become Chairman of Chilean Metals replacing former Chairman and Current CEO Terry Lynch.
About Chilean Metals,
Chilean Metals Inc. is a Canadian
Junior Exploration Company focusing on high potential Copper Gold
prospects in Chile & Canada.
Chilean Metals Inc is 100% owner of five properties comprising over 50,000 acres strategically located in the prolific IOCG (“Iron oxide-copper-gold”) belt of northern Chile. It also owns a 3% NSR royalty interest on any future production from the Copaquire Cu-Mo deposit, recently sold to a subsidiary of Teck Resources Inc. (“Teck”). Under the terms of the sale agreement, Teck has the right to acquire one third of the 3% NSR for $3 million dollars at any time. The Copaquire property borders Teck’s producing Quebrada Blanca copper mine in Chile’s First Region.
Chilean Metals Inc is the 100% owner of five Copper Gold Cobalt exploration properties in Nova Scotia on the western flank of the Cobequid-Chedabucto Fault Zone (CCFZ); Fox River, Parrsboro, Lynn, Economy and Bass River North respectively. It has also optioned two additional projects Trident at Bass River and Economy East. Chilean Metals is exploring, analyzing and drilling these properties in the spring of 2019.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Chilean Metals Inc.
“Terry Lynch”
Terry Lynch, CEO
Contact: terry@chileanmetals.com
The Qualified Person for Chilean Metals Inc., as defined by National Instrument 43-101, is Mick Sharry, M.Sc. Consultant
Forward-looking Statements: This news release may contain certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that CMX expects to occur, are forward looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding current and future exploration programs, activities and results. Although CMX believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.
Neither the 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.
Click Image To View Full Size
Copyright (c) 2019 TheNewswire - All rights reserved.
