ST. JOHN'S, NEWFOUNDLAND -- (Marketwired) -- 04/24/13 -- Canada Fluorspar Inc. (TSX VENTURE: CFI) ("CFI" or the "Company") is pleased to announce the second set of assay results from three holes on its Phase 1 diamond drilling program along the northern section of the Director Vein beneath the Aluminum Company of Canada's ("Alcan") old mine workings. The assay results from the first two drill holes of the Company's Phase 1 diamond drilling program were disclosed by press release on March 12, 2013.
One of the three drill holes, DS-13-102, is located approximately 150 metres north from the old Alcan mine workings of the Director Vein. This drill hole was collared with an azimuth of 053.4 degrees (GN) and an inclination of -60 degrees, and intersected the Director Vein structure and returned an assay value of 0.78% CaF2 over 4 metres with one metre of core recovered over four metres. Drill holes DS-13-103 and DS-13-104 are located approximately 854 metres and 232 metres, respectively, south of drill hole DS-13-102. Both drill holes were collared with azimuths of 053.4 degrees (GN) and inclinations of -60 degrees, intersected the Director Vein structure and returned assay values of 49.32% CaF2 over 10.03 metres in hole DS-13-103 and 0.23% CaF2 over 3 metres with 1.5 metres of core recovered over 3 metres in hole DS-13-104.
Lindsay E. Gorrill, CEO of Canada Fluorspar Inc., stated, "We are encouraged by the results to date from our drilling program at Director. It is significant to note that the low grade intersections are actually 1,460 metres apart and we lost 75-90% of the core which could be the cause of the low grade. We are currently waiting for assays on one more drill hole to complete this northern section and have 16 holes drilled in the south extension, as identified on the enclosed map, awaiting assay results."
The fluorite mineralization in the north-south trending veins at the St. Lawrence Project and the Company's 100% owned mineral license occur in the form of massive mineralization and as fault gouge. Historically, core drilling of the massive mineralization has resulted in good core recovery. The areas of faulted mineralization generally contain finely ground fluorite and larger fragments of the harder siliceous material. Drilling through the faulted zones commonly results in poor core recovery as the fine grained fluorite material in the vein is washed out by the drill fluid. Both drill holes, DS-13-102 and DS-13-104, successfully intersected the Director Vein structure, however, due to the fine nature of the vein material, core recoveries in the structure ranged from 25-30% and 3-10% in DS-13-102 and DS-13-104, respectively. Past underground mine operations document the high grade, fine, sandy fluorite mineralization in the vein structure. It is not known whether the vein opens up again down depth because there are no drill holes below DS-13-102.
To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/canada_fluorspar_fig01_apr24.pdf
CFI has received assay results for samples collected from drill hole DS-13-102 located along the northern extension of the Director Vein and drill holes DS-13-103 and DS-13-104 along the southern section of the Director Vein. Drill hole DS-13-102 was drilled from west to east and 163 metres south of a previous drill hole, DS-13-101, which was reported in a press release dated March 12, 2013. Drill holes DS-13-103 and DS-13-104 are 124 metres apart and, including drill hole DS-13-102, all three drill holes were drilled from west to east intersecting the Director Vein structure, which trends north-northwest and dips steeply from east to west. Drill hole DS-13-102 intersected the Director Vein at 468 metres (408 metres vertically from surface) and 94 metres below the nearest old Alcan workings (290m Level). The vein structure was weakly mineralized as demonstrated in the table below. The drill hole is believed to have intersected a pinched zone. Drill hole DS-13-103 intersected the Director Vein structure approximately 244 metres down the drill hole (213 metres vertically from surface) and 115 metres below the nearest old Alcan workings (120m Level). It was a strongly mineralized structure, as demonstrated by the 10.03 metre long intersection carrying a grade of 49.32% CaF2. Drill hole DS-13-104 intersected the Director Vein structure approximately 261 metres down the drill hole (232 metres vertically from surface) and 135 metres below the nearest old Alcan workings (120m Level); however, the vein contained minimal fluorite mineralization and is believed to have penetrated a pinched zone in the ore body. The drill hole results confirm that the Director Vein extends well below the old Alcan workings and extends to their north and south.
The following table details the results of the second set of drill holes completed by CFI on the Director Vein to the north and below the old Alcan workings and two drill holes on the Director Vein to the south and below the old Alcan workings.
2013 Diamond-Drill Hole Assay Results Canada Fluorspar Inc. - St. Lawrence Project, NL Drill hole DS-13-102 Sample No. From (m) To (m) Length (m) % CaF2 65122 469.00 469.98 0.98 0.45 65123 469.98 471.00 1.02 0.54 65124 471.00 472.00 1.00 0.17 65125 472.00 473.00 1.00 1.98 65126 473.00 473.84 0.84 0.50 Drill hole DS-13-103 Sample No. From (m) To (m) Length (m) % CaF2 65106 243.97 244.97 1.00 64.92 65107 244.97 245.97 1.00 25.58 65108 245.97 247.00 1.03 74.47 65109 247.00 248.00 1.00 67.06 65110 248.00 249.00 1.00 09.12 65111 249.00 250.00 1.00 62.71 65112 250.00 250.60 0.60 71.34 65113 250.60 251.45 0.85 65.03 65114 251.45 252.30 0.85 55.98 65115 252.30 253.00 0.70 15.05 65116 253.00 254.00 1.00 32.36 Drill hole DS-13-104 Sample No. From (m) To (m) Length (m) % CaF2 65129 264.00 265.00 1.00 0.13 65130 265.00 266.00 1.00 0.23 65132 266.00 268.00 2.00 0.51 65133 268.00 269.00 1.00 0.80 65134 269.00 271.00 2.00 0.11 65135 271.00 274.00 3.00 0.13
Assays on these drill holes were carried out at SGS Lakefield Laboratories ("SGS") of Lakefield, Ontario, using the Ion Selective Electrode method to determine the fluorite content in the low-grade samples and the Dual Calcium method for samples expected to contain high-grade values (i.e., those with significant visible fluorspar in the drill core).
Quality Assurance and Quality Control ("QA/QC")
Check assay work by CFI includes insertion of duplicate samples and blanks with regular batches of mineralized samples of drill core. QA/QC work is also done at SGS, and results are reviewed and verified by CFI personnel. An independent geological consultant (Qualified Person) has submitted additional samples collected from the drill core for analyses.
Phase 1 of the current exploration program is designed to assess the northern extension of the Director Vein structure. The five drill holes with assay results to date have shown that the fluorspar mineralization at the Director Vein extends further along strike and at depth from the old Alcan workings.
Historic mining operations by Alcan on the property produced in excess of 4.2 million tonnes of fluorspar during a 44 year continuous production from 1942 to 1977. Production resumed in 1986 and continued until 1991, when St. Lawrence Fluorspar Limited reopened the nearby Blue Beach North Mine and processed 440,000 tonnes of fluorspar ore from small open pits, one of which was located in a surface pillar at the Director Mine near the main shaft.
Initial exploration information regarding the 2013 exploration program at Director Vein was included in the Company's press releases dated January 16, 2013 and March 12, 2013.
To date, one additional drill hole have been completed in Phase 1 and 16 additional drill holes in Phase 2 (South Extension of the Director Vein) of the 2013 exploration program. Assay results from these holes are pending.
Historic exploration data indicates that there are more than forty mineralized veins within the CFI property. The three prominent vein structures, however, are the Director Vein, Blue Beach North Vein, and the Tarefare Vein. Probable Reserves of the Blue Beach North and Tarefare veins total approximately 5.4 million tonnes at an average grade of 39.8% CaF2. These Mineral Reserves have been outlined to a vertical depth of 300 metres below the surface, but fluorspar mineralization extends further at depth. The key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, as well as other relevant information, including data verification, with respect to the Blue Beach North and Tarefare veins can be found in a NI 43-101 Technical Report prepared by the Roscoe Postle Associates Inc. dated March 6, 2013, which has been filed by the Company on SEDAR (www.sedar.com).
About the Company
The Company is a specialty mineral resource company engaged in the development of fluorspar deposits located in St. Lawrence, Newfoundland, Canada, and is reactivating the existing Blue Beach North and Tarefare underground fluorspar mines, expanding the existing mill, constructing a new, environmentally-sound Tailings Management Facility through Newspar, which it's a 50/50 joint venture with Arkema. The Company is also building a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product.
Mr. James H. Reeves, Senior Geologist with CFI, who is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Properties, reviewed and approved the technical content of this news release. The information regarding historic production has not been verified by the Company and is provided for reference only.
Material results of the Director Vein exploration program have been disclosed in the Company's press releases dated March 1, 13 and 30, 2012, April 16 and 24, 2012 and March 12, 2013.
For more information please see: www.canadafluorspar.com.
Cautionary Note and Forward-Looking Statements
This press release contains forward-looking statements which include, but are not limited to: resource estimates, proposed mining techniques required to construct and produce at expected levels, anticipated timing for completion of metallurgical testing, the commencement of the drilling program, current development and operating objectives and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development including: loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities, the estimated timeline for the development of the project at St. Lawrence, the supply and demand for, and the level and volatility of the price of fluorspar, the assumptions on which resource estimates are based, the receipt of necessary permit, market competition, ongoing relations with employees and impacted communities, and general business and economic conditions. Should one or more of the risks or uncertainties involved in forward-looking statements materialize, or should the assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements are qualified entirely by this cautionary statement and are given only as at the date of this press release. The Company disclaims any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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.
Canada Fluorspar Inc.
President and CEO