Canasil Resources' JV Partner Orex Minerals Announces Inferred Resource Estimate of 33.3 Million Ounces of Silver at Boleras Deposit
TSX VENTURE: CLZ
VANCOUVER, Oct. 31, 2016 - Canasil Resources Inc. – (TSX-V: CLZ ) ("Canasil" or the "Company") is pleased to report that Orex Minerals Inc. (TSX-V: REX, "Orex") has announced a first resource estimate for the Boleras Silver Deposit on the Sandra-Escobar Project in Durango, Mexico, prepared by the consulting firm Mining Plus. The project is being advanced by Orex under an option agreement with Canasil announced on September 15, 2015. .
At a "Base Case" of 45 g/t Ag cut-off, the Inferred Resource Estimate yields 9.8 million tonnes grading 106 g/t Ag for a total of 33.3 million ounces of silver.
|Boleras Silver Deposit – Inferred Resource Estimate by Cut-Off Grade|
|Ag (g/t)||(Mt)||Ag (g/t)||Ag (oz/t)||(M-g)||(M-oz)|
|45 – BASE CASE||9.8||106||3.4||1,040||33.3|
Note: Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
The Mineral Resource was estimated by Dr. A. Fowler, MAusIMM, CP (Geo), Independent Qualified Person under NI 43-101. Data was verified by Mr. Michael Collins P.Geo., Independent Qualified Person under NI 43-101., of Mining Plus Consultants. The Mineral Resource was estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the Standards Committee on Reserve Definitions and adopted by the CIM Council on May 10, 2014. The Mineral Resource is sub-horizontal, outcropping or close to surface, and is therefore expected to be mineable by open pit methods with a low strip ratio. It has reasonable prospects of economic extraction at a cut-off grade of 45 g/t silver. The cut-off grade of 45 g/t silver was estimated using a silver price of $17.50
Drilling results as of 7 October 2016 are included. The numbers may not add due to rounding.
Orex's President, Gary Cope says, "A first Resource Estimate is a major step in an exploration project. We have achieved this benchmark in less than a year from the start of diamond drilling and we believe that this initial resource is the first of many to come."
Mining Plus is a mining engineering consultancy, established in 2006, consisting of skilled experts specializing in mining engineering, geoscience and mining operation management.
The resource estimate is based on the results from diamond drilling up to and including drill hole SA-16-059 for a total of 7432 metres. The data cut off date was October 7, 2016 and the "Effective Date" for the Inferred Resource Estimate is October 25, 2016. The 45 g/t Ag cut-off was chosen as a robust base case with consideration to the current spot price of $17.50/oz Ag and production cost at Mexican mines with deposits of a similar scale with low strip ratios. The resource is not pit constrained as this is an initial resource and the deposit limits are not fully constrained.
Two discrete domain types were modelled; D1 – disseminated silver mineralization in a horizontal rhyolite crystal tuff, and D2 – disseminated and stockwork veinlet hosted silver mineralization crosscutting the horizontal tuff horizon. D1 is of average grade material and includes a top capping of values at 225 g/t Ag. D2 is of higher grade material and includes a top capping of values at 1,500 g/t Ag.
The block model was run at different block sizes of 5x5x3 metres and at 20x20x3 metres. Sub-blocking was used to model the D2 high grade domain. The Blended D1 and D2 model was regularized to a Block size of 10x10X6. Grades were assigned to the blocks by the Ordinary Kriging (OK) method, which correlated well with the Inverse Distance Squared (ID2) method. The bulk density was estimated with ID2 due to insufficient sample pairs for meaningful variography and OK estimation.
The following graph illustrates the "Grade – Tonnage Curves" which are nearly identical.
Orex expects that a detailed, National Instrument 43-101-compliant "Technical Report" on the Boleras Silver Deposit's resource estimate will be filed on its SEDAR profile within the next 45 days.
Silver mineralization is hosted in a rhyolite volcanic dome. An altered and highly permeable crystal lithic tuff unit contains disseminations of silver bearing minerals and domains with broadly spaced stockwork veinlets. The current working model has a porphyritic rhyolite unit, with andesite sills, as an impermeable cap, which may have focused mineralizing fluids into the host permeable volcaniclastic unit.
Orex maintains a QA/QC sampling protocol for the diamond drilling program, including the insertion of commercial analytical standards and blank samples. Analytical testing has been performed by SGS Minerals Services and Bureau Veritas. Silver values are determined by fire assay with a gravimetric finish. Multi-element analyses are also determined using a 4-acid digestion and ICP-MS (Inductively Coupled Plasma Mass Spectrometry).
Sandra Escobar Silver-Gold Project, Durango, Mexico
Sandra Escobar is situated north of the town of Tepehuanes, Durango, in the heart of the "Mexican Silver Trend", midway between the mining districts of Tovar and Guanacevi and is 75 km west of Silver Standard's La Pitarrilla. This prolific trend hosts some of the world's largest silver camps and deposits, including Fresnillo, Guanajuato, La Pitarrilla, La Preciosa, Real de Angeles and Zacatecas.
The project consists of 6,333 hectares of mineral concessions and covers multiple mineralized epithermal quartz veins and breccia structures. These veins form a high level silver-gold-base metals system, hosted in andesitic and rhyolitic rocks, centered on a large rhyolite dome complex in the north and silver systems in smaller rhyolite dome complexes to the southeast. All within a large caldera complex. Intense alteration zones and fluid flooding in permeable formations indicates the presence of bulk tonnage targets. Excellent infrastructure exists in the Sandra Escobar area, including paved road access, electrical power, water and manpower from nearby communities.
The technical disclosures contained in this news release have been approved by Ben Whiting, P.Geo. and Dale Brittliffe, P.Geo., each being "Qualified Persons" as defined in NI 43-101 on behalf of Orex. Michael Collins, P.Geo. and Dr. Andrew Fowler, full time Mining Plus Consulting employees, have consented to applicable disclosure contained herein regarding the Mineral Resource estimate and Mr. Collins and Dr. Fowler are an "Independent Qualified Persons", within the meaning of NI 43-101, from Orex Minerals Inc., Canasil Resources Inc. and their subsidiary companies.
Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver-gold-copper-lead-zinc projects in Durango and Zacatecas States, Mexico, and in British Columbia, Canada. The Company's directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects through to discovery and further development. The Company is actively engaged in the exploration of its mineral properties, and maintains an operating subsidiary in Durango, Mexico, with full time geological and support staff for its operations in Mexico.
SOURCE Canasil Resources