Apex Resources Announces Updated Resource Estimate for its Jersey-Emerald Tungsten Project

2021-09-10 / @thenewswire

(TheNewswire)

September 10, 2021 - TheNewswire - Vancouver, BC - Apex Resources Inc. ("Apex”) (TSXV:APX) (OTC:SLMLF) announces an updated NI43-101 resource estimate for its Jersey-Emerald Tungsten Project located in the Nelson Mining District of southeastern British Columbia. The current resource estimate was triggered by a statement in Apex’s MD&A filed on May 26, 2016.

In its MD&A filed on May 26, 2016 the Company disclosed an increase in tungsten resources on its Jersey Emerald Project related to a resource update filed by Apex’s current joint venture partner. That 2016 disclosure was not supported by an independent technical report issued by Apex.

The present updated report was completed by independent qualified person (“QP”) Sue Bird, P.Eng, of Moose Mountain Technical Services (“MMTS”). The study was a total deposit resource that included the Emerald, East Emerald, Invincible, Dodger, East Dodger and Dodger 4200 tungsten zones. The study involved reviewing 28,997 metres of diamond drilling in 241 holes on the property. Table 1 below summarizes the total model resource for the Jersey-Emerald Project which has an effective date of July 26, 2021.

Table 1 Jersey-Emerald Mineral Resource Estimate – Total Project

Source	Class	Cut-off	Tonnage	NSR	Wo3	Mo	Au	Wo3 Metal	Mo Metal	Au Metal
Source	Class	(CDN$/t)	(tonnes)	(CDN$)	(%)	(%)	(gpt)	('000 lbs)	('000 lbs)	(ounces)
Open Pit	Indicated	25	1,045,153	55.04	0.157	0.015	0.029	3,618	334	958
		30	970,440	57.14	0.163	0.015	0.031	3,483	323	958
		35	864,486	60.16	0.171	0.016	0.034	3,255	311	945
		40	739,976	63.93	0.181	0.018	0.039	2,950	289	925
		50	461,891	75.51	0.211	0.024	0.042	2,148	246	628
	Inferred	25	1,472,801	63.06	0.175	0.025	0.012	5,689	802	559
		30	1,398,473	64.94	0.180	0.026	0.011	5,559	792	504
		35	1,285,247	67.78	0.188	0.028	0.011	5,313	782	471
		40	1,095,164	72.98	0.201	0.031	0.012	4,853	741	412
		50	797,312	83.52	0.227	0.039	0.009	3,994	680	231
Underground	Indicated	within CDN$60 shape	427,650	82.40	0.213	0.036	0.101	2,007	342	1,387
Underground	Inferred	within CDN$60 shape	3,655,244	90.79	0.248	0.026	0.109	20,017	2,087	12,857
Open Pit & Underground at Base Case	Indicated	varies as above	1,472,803	62.99	0.173	0.021	0.050	5,625	676	2,345
Open Pit & Underground at Base Case	Inferred	varies as above	5,128,045	82.82	0.227	0.026	0.081	25,706	2,889	13,415

Notes for Table 1:

1.Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines.
2.Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3.The Mineral Resource has been confined by a “reasonable prospects of eventual economic extraction” pit using the following assumptions: 150% pit case using an Wo3 price of US$300/tonne, an Mo price ofUS$15.00/lb and an Au price of US$1600/oz at a currency exchange rate of 0.77 US$ per $CDN; 90% payable Au, 99% Mo payable, 3% conversion to APT of Wo3; and typical roasting, refining, transport, and insurance costs. A 1.5% royalty is applied to the NSR calculation.
4.Metallurgical recoveries of 85%, 80% and 75% Tungsten, Molybdenum, and gold respectively.
5.Pit slope angles are assumed at 45º. Mining costs are CDN$5.00/tonne, and Processing plus General and Administration (G&A) costs of $25/tonne milled.
6.The specific gravity of the deposit has been assigned as 3.55 in mineralized domains and 3.21 outside domains
7.Numbers may not add due to rounding.

The total model resource for the tungsten project at current metal prices assuming cut-off grades of CDN$25 for open pit and CDN$60 for underground is highlighted in the above table.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The following factors, among others, could affect the Mineral Resource estimate: commodity price and exchange rate assumptions; pit slope angles; assumptions used in generating the LG pit shell, including metal recoveries, and mining and process cost assumptions. The QP is not aware of any environmental, permitting, legal, title, taxation, socioeconomic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate.

The results of the current MMTS study confirm a significant increase in tonnage resulting from the 2014 drill program, but do not support the resource estimate reported in 2016. The present Inferred Resource of 5,128,045 tonnes at a tungsten grade of 0.227% WO3 is 6.4% lower than the 2016 estimate of 5,480,000 tonnes grading 0.273% WO3. The present Indicated Resource of 1,472,803 tonnes at a tungsten grade of 0.173% WO3 is less than 50.0% of the 2016 estimate of 3,071,000 tonnes grading 0.341% WO3. The difference between the two studies is partially due to the fact that remnant mineralization in the historic workings was not considered in the recent study due to concerns regarding eventual economic extraction.

The previously reported Pb-Zn in the Jersey-Emerald deposit of the property is not included in this Resource Estimate due to uncertainties in the location of previous underground mining voids, assay interval locations, incomplete Pb-Zn assay database, and uncertainties in “reasonable prospects of eventual economic extraction” due to proximity to the existing openings.

The report concludes that the mineral resource estimate warrants further exploration. The QP recommends additional work to infill the WO3 mineralized zones and potentially add to the Mo and Au zones. The recommended exploration program will include two phases with Phase 1 to upgrade the Classification of known zones. It is recommended that for potential remaining Pb-Zn mineralization, the underground openings be re-surveyed, with follow-up re-assaying and drilling dependent on the result of the survey. The total recommended budget for these two phases of exploration is CDN$1.2M

The following recommendations are made by the QP:

- Future drilling programs employ QAQC sample inclusion rates consistent with current practice to include blanks, field duplicates, coarse duplicates, and CRMs, and that certified blank material be sourced for future assaying.

- Re-assaying of significant intervals in holes from 2014 and 2017 is recommended due to lower-than-expected results in CRMs and overlimit assays for tungsten not being done.

- Check assays for gold in 2014 drilling is recommended due to issues with a provisional standard that was used.

- A collar survey is recommended to remove any questions regarding drillhole locations that have been changed to reconcile with topography or errors induced during conversion from mine grid coordinates.

- For drilling outside of the resource area, there is a significant amount of assay values of metals that could be of interest that are not included in the resource database from both historic and non historic drilling. It is recommended that a full review of the assay database be accomplished to take advantage of all existing data prior to further resource modeling.

The updated Technical Report was prepared by Sue Bird, P.Eng., a Geological Engineer with Moose Mountain Technical Services. Sue Bird is a Qualified Person as defined in National Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101) and has reviewed and approved the contents of this news release.

Arthur G. Troup, P.Eng., Geological

President and CEO

For further information please contact:

Marc Lee, Investor and Corporate Communications

Tel: (604) 628-0519 Fax: (604) 628-0446

This release was prepared by Apex's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Apex expects are forward-looking statements. Although Apex 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Apex, investors should review Apex's filings that are available at www.sedar.com or Apex's website at www.apxresources.com.