ST. JOHN'S, NEWFOUNDLAND -- (Marketwired) -- 07/11/13 -- Canada Fluorspar Inc. (TSX VENTURE: CFI) ("CFI" or the "Company") is pleased to announce first assay results from three holes drilled under the Company's Phase 3 diamond drilling program at its Grebes Nest property. This new mineralized structure is situated approximately 4 kilometers from the former Tarefare mine and less than 6 kilometers from the former Blue Beach North mine (see location map below). All three drill holes are located on the western part of the Grebes Nest grid area. Ground geophysical (magnetometer and EM) survey results indicate that the mineralized structure has potential to extend for more than 4,000 metres along strike. The drill holes completed identified as GS-13-08, GS-13-03, and GS-13-07, with one hole (GS-13-08) intersecting 48.68% CaF2 over 16.85 m.
All three drill holes are inclined at -55 degrees and oriented at Azimuth 034 degrees.
A map is available at the following address: http://media3.marketwire.com/docs/n711cfi1.pdf.
Drill hole GS-13-08 tested the down-dip extension of the Grebes Nest Vein at an old exploration shaft (GN Shaft) approximately 20 metres below the surface. This shaft, which was sunk in the 1940s, is located within an existing open-cut that was mined by a previous operator during the early 1990s. Drill hole GS-13-08 intersected a significant vein structure, with an average grade of 48.68% CaF2over 16.85 m.
Drill hole GS-13-03 intersected two vein structures, the first vein structure intersection had an average grade of 46.57% CaF2 over 1.90 metres, and the second vein structure intersection had an average grade of 68.08 CaF2 over 6.23 m.
Drillhole GS-13-07 intersected the Grebes Nest Vein structure with an average grade of 41.67% CaF2 over 5.58 m.
A map is available at the following address: http://media3.marketwire.com/docs/n711cfi2.pdf.
"This is very exciting news", stated Lindsay Gorrill, President & CEO of Canada Fluorspar Inc., "Based on the 21 holes we have drilled to-date on the Grebes Nest property we have identified fluorspar mineralization along a strike length of approximately 1.5 kilometers and extending to more than 170 metres at depth. We have received assays for only three of the 21 holes, but based on visual observations on drill core by our qualified persons, we are optimistic about the assay results. We look forward to releasing the assays on the remaining drill holes as they become available and plan to continue drilling to confirm the richness of this vein at depth and along strike."
CFI has received assay results for samples collected from drill holes GS-13-08, GS-13-03, and GS-13-07 located along the western part of the Grebes Nest target area. These holes are spaced approximately 100 metres apart, cover a strike length of approximately 425 metres of the total approximately 4,000 metres long Grebes Nest mineralized structure. These holes intersected the Grebes Nest Vein at depths ranging from 90 metres to 110 metres vertically below the surface. In addition, hole GS-13-08, intersected the vein below the old shaft and recent trenching, and has revealed mineralized vein material which is interpreted to be the projection of the Grebes Nest Vein intersected in drill hole GS-13-03.
All three drill holes intersected what is interpreted to be the Grebes Nest main vein which trends northwest and is subvertical. Drill hole GS-13-08 intersected the Grebes Nest vein structure at approximately 100 metres vertically below the surface and tested the mineralization below the old shaft and the pre-existing open-cut on surface.
Drill hole GS-13-03, located approximately 325 metres east of drill hole GS-13-08, intersected a vein structure at 90 metres vertically below the surface as well as the Grebes Nest Vein structure approximately 105 metres vertically below the surface.
Drill hole GS-13-07, tested the Grebes Nest structure below drill hole GS-13-10, and intersected the Grebes Nest vein structure at approximately 110 metres below the surface.
Drill hole GS-13-10, intersected the Grebes Nest Vein approximately 50 metres below the surface, midway between surface and the drill hole GS-13-07 intersection. Assays for this hole are pending.
Preliminary interpretation of the drill results to date indicates that at the western part of the Grebes Nest target area the mineralized structure maintains a relatively uniform strike and width within a depth of 100 metres vertically below the surface. The drill intersections also indicate very competent core and good continuity of mineralized material at depth. CFI notes that most of the mineralized material is hosted by metasedimentary rocks (interbedded siltstones and slates, whereas most of the mineralized material at the major fluorspar veins in the general area - the historic Director, Tarefare, and Blue Beach North Mines - are hosted by the St. Lawrence Granite ("SLG"). The metasedimentary rocks in the St. Lawrence area are older than the SLG and early geological mapping indicates that the Grebes Nest area is underlain by interlayered pink rhyolite sills, similar in composition to the SLG, which have intruded the metasedimentary rocks. The structure that has been identified by the drill program is a late phase event that cuts both the metasedimentary rocks and the sills. The parallel veins, such as the vein identified in the drill hole GS-13-03 have been known to develop into significant mineable veins in other locations in the St Lawrence area. The significance of parallel veins remains to be evaluated.
The following table shows the detailed the results of the first set of drill holes completed by CFI on the Grebes Nest Vein know in Phase 3 of the Company's 2013 exploration diamond drill program.
2013 Diamond- Drill Hole Assay Results Grebes Nest Canada Fluorspar Inc. St. Lawrence Project, NL Drill hole GS-13-08Sample No. From (m) To (m) Length (m) % CaF265473 112.40 113.49 1.09 43.9365474 113.49 114.49 1.00 54.9365475 114.49 115.49 1.00 65.7465476 115.49 115.92 0.43 46.2865477 115.92 116.68 0.76 30.1065478 116.68 117.68 1.00 67.0865479 117.68 118.68 1.00 62.7365480 118.68 119.41 0.73 66.2965481 119.41 120.17 0.76 8.9565482 120.17 121.93 0.76 13.0065483 120.93 121.93 1.00 73.0965484 121.93 122.56 0.63 66.8865485 122.56 123.26 0.70 75.8965486 123.26 124.26 1.00 37.3665487 124.26 124.84 0.58 57.6965488 124.84 125.84 1.00 30.2065489 125.84 126.84 1.00 19.8065490 126.84 127.84 1.00 41.0765491 127.84 128.46 0.62 41.5065492 128.46 129.25 0.79 73.53 Drill hole GS-13-03Sample No. From (m) To (m) Length (m) % CaF2Vein #165407 91.06 91.96 0.90 63.1965408 91.96 92.96 1.00 31.61Vein #265416 103.92 105.07 1.15 16.1065417 105.07 106.06 0.99 45.8465418 106.06 106.54 0.48 70.4965419 106.54 107.54 1.00 92.0264520 107.54 108.54 1.00 96.4365421 108.54 109.54 1.00 91.4865422 109.54 110.15 0.61 76.15 Drill hole DS-13-07Sample No. From (m) To (m) Length (m) % CaF265078 462.30 463.00 0.70 39.6965455 115.42 115.69 0.17 86.6565457 116.10 116.95 0.85 95.6865458 116.95 117.90 0.95 38.3865459 117.90 118.32 0.42 6.6065460 118.32 118.95 0.63 48.5865461 118.95 120.00 1.05 19.5065462 120.00 121.00 1.00 41.97
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 2013 exploration program was designed to assess the northern extension of the Director Vein structure. The six 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.
Phase 2 of the 2013 exploration program was designed to evaluate the southern extension of the Director Vein. A trenching program and a geophysical survey conducted in the area during 2012 identified the structure over a strike length of 1,000 metres. The current drill program was planned to evaluate the mineral potential, at depth, of the southern extension of Director Structure and to test the north extension of the adjacent Hares Ears Vein to the west.
Phase 3 of the 2013 exploration program was designed to evaluate the Grebes Nest mineral property, namely the Grebes Nest vein which was identified in the 1940s, The vein was exposed on the east side of Little Lawn Harbour where the structure is approximately 1.0 metre wide and dips to the north at -70 degrees. Prospecting in the late 1940's traced the structure, through a series of trenches, to the southeast for a reported distance of 3.2 kilometers. In the late 1940's, a 20 metre deep exploration shaft was sunk on the vein about 500 metres east of the coast. A drift was driven along the vein for 60 metres and a number of short cross-cuts were developed. In 1949, five short drill holes were completed approximately one kilometer southeast of the shaft and to the south of the projected strike of the structure. These drill holes identified a number of narrow veins in the metasediments. Due to the remote location of the showing and the adequate reserves at the operating mines owned by the Aluminum Company of Canada ("Alcan") no additional work was undertaken.
Historic mining operations by Alcan on the St. Lawrence 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, six (6) Phase 1 drill holes have been completed together with 26 additional drill holes in Phase 2 (19 holes in south extension Director Vein and 7 holes at Hares Ears Vein) and 21 drill holes in Phase 3 (Grebes Nest area) of the 2013 exploration program. Assay results for remaining completed drill holes in Phase 2 and Phase 3 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 Company's 2012 and 2013 exploration program have been disclosed in the Company's press releases dated March 1, 13 and 30, 2012, April 16 and 24, 2012 and January 16, 2013, March 12, 2013, April 24, 2013, May 8, 2013, June 5, 2013 and July 2, 2013, including assay results from fifteen previous drill holes under the Company's diamond drilling program which were disclosed in the Company's press releases dated March 12, 2013, April 24, 2013, May 8, 2013, June 5, 2013 and July 2, 2013.
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.
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.
Canada Fluorspar Inc.
President and CEO