(TheNewswire)
October 29, 2018 / TheNewswire / Vancouver, B.C. – Lorraine Copper Corp. (“Lorraine Copper” or the “Company”) (TSXV: LLC) (OTCQB: LRCPF) is pleased to advise that Sun Metals Corp. (“Sun Metals” or the “Company”) (TSXV: SUNM), who have the Stardust Property under option, has announced that drilling has resulted in the discovery of a new and high grade extension of the Canyon Creek Skarn zone on the Stardust project in north-central British Columbia. Sun Metals believes that the drilling is successfully tracking a major mineralizing fluid pathway into the heart of this high-grade system.
Diamond drill hole 18-SD-421 intersected 36.50 metres of mineralization, grading 3.89% copper, 4.47 grams per tonne (g/t) gold and 84.6 g/t silver (Table 1). This includes higher grade intervals of 5.55 metres grading 6.28% copper, 7.01 g/t gold and 202.1 g/t silver and a second interval of 6.80 metres grading 8.52% copper, 11.17 g/t gold and 162.0 g/t silver. Downhole from this intercept, drilling intersected another zone of skarn alteration with visible sulphide mineralization. Assays from the lower section of the mineralized skarn extension are pending.
Table 1. Tabulated results from DDH18-SD-421
----------------------------------------------------------------------- |Hole |From |To |Length|Copper|Gold |Silver|Zinc|Copper | | |(m) |(m) |(m) |(%) |(g/t)|(g/t) |(%) |Equivalent| | | | | | | | | |(%)(1) | |---------------------------------------------------------------------| |DDH18-SD-421|539.80|576.30|36.50 |3.89 |4.47 |84.6 |1.06|7.80 | |---------------------------------------------------------------------| |Incl. |540.65|546.20|5.55 |6.28 |7.01 |202.1 |5.09|14.42 | |---------------------------------------------------------------------| |Incl. |558.80|565.60|6.80 |8.52 |11.17|162.0 |1.39|17.36 | -----------------------------------------------------------------------(1) Assumptions used in USD for the copper equivalent calculation were metal prices of $2.80/lb Cu, $1,200/oz Au, $15/oz Ag, $1.20/lb Zn and recovery is assumed to be 100% as no metallurgical data is available. The following equation was used to calculate copper equivalence: Copper Equivalent = Cu (%) + (Au (g/t) x 0.6252) + (Ag (g/t) x 0.007815) + (Zn (%) x 0.4286).The drill hole intersections reported are not true widths, the true widths cannot be determined from the information currently available.
“We have intersected the strongest mineralization ever observed at Stardust and this drill hole is a game changer for the project and the district. We have crossed into a new area of mineralization that has not been tested previously. The mineralization is stronger and more pervasive providing support that we are moving in the right direction to find more of these longer intercepts of consistently higher-grade mineralization. The Canyon Creek Skarn zone is clearly open for expansion,” said Steve Robertson, President and CEO, Sun Metals.
Other drilling reported includes hole DDH18-SD-411, which targeted extension to an open area in the resource model and returned 14.40 metres grading 1.32% copper, 1.03 g/t gold and 2.12% zinc from the 101 Lens and 2.15 metres grading 3.81% copper, 0.75 g/t gold and 498.4 g/t silver from an extension of the 113 Lens. Drill hole DDH18-SD-412 targeted geophysical anomaly C, a VTEM anomaly identified in the 2018 airborne survey. The hole intersected a zone of mineralization that was separated into gold rich and silver/zinc rich mineralization. Together, this zone returned 7.65 metres grading 1.31 g/t gold and 62.3 g/t silver. Along strike from hole DDH18-SD-412, targeting a geochemical response, hole DDH18-SD-417 intersected 7.30 metres grading 0.48 g/t gold and 7.42% zinc.
Table 2. Select significant results, 2018 Stardust drill program
-------------------------------------------------------------------------------------------------------- | | | | |Copper(%)|Gold(g/t)|Silver|Zinc(%)|Lead|CopperEquivalent| | |Hole |From |To |Interval| | |(g/t) | |(%) |(1) |Zone | | |(m) |(m) |(m) | | | | | | | | |------------------------------------------------------------------------------------------------------| |DDH18-SD-411|174.70|189.10|14.40 |1.32 |1.03 |22.9 |2.12 | |3.05% |Canyon | | | | | | | | | |- | |Creek | | | | | | | | | | | |Skarn | |------------------------------------------------------------------------------------------------------| |Incl |178.20|183.90|5.70 |1.57 |1.38 |33.1 |5.20 | |4.92% |Canyon | | | | | | | | | |- | |Creek | | | | | | | | | | | |Skarn | |------------------------------------------------------------------------------------------------------| |DDH18-SD-411|226.75|228.90|2.15 |3.81 |0.75 |498.4 |23.31 |3.71|19.35% |Canyon | | | | | | | | | | | |Creek | | | | | | | | | | | |Skarn | |------------------------------------------------------------------------------------------------------| |DDH18-SD-412|42.75 |50.40 |7.65 |0.03 |1.31 |62.3 |0.78 |0.45|1.81% |GD/Anom-C| |------------------------------------------------------------------------------------------------------| |DDH18-SD-417|50.50 |57.80 |7.30 |0.04 |0.48 |7.7 |7.42 |0.06|3.61% |GD Zone | --------------------------------------------------------------------------------------------------------(1) Assumptions used in USD for the copper equivalent calculation were metal prices of $2.80/lb Cu, $1,200/oz Au, $15/oz Ag, $1.20/lb Zn and recovery is assumed to be 100% as no metallurgical data is available. The following equation was used to calculate copper equivalence:Copper Equivalent = Cu (%) + (Au (g/t) x 0.6252) + (Ag (g/t) x 0.007815) + (Zn (%) x 0.4286). The drill hole intersections reported are not true widths, the true widths cannot be determined from the information currently available.
2018 diamond drilling at Stardust focused on three types of targets as shown in Figure 1:
-Extensional targets which were designed to test for expansion of areas of known mineralization and define a larger resource.
-Geophysical targets which tested prospective areas based on results from the 2018 VTEM survey.
-Geologic targets which tested prospective areas based on geologic modelling.
The 2018 exploration program at Stardust, initiated in early June, consisted of mapping and prospecting, over 2,800 soil samples, a structural geology study, an airborne Lidar with photogrammetry survey and 1,103 line kilometers of 100-metre line spaced Heli-borne VTEM and Magnetics survey. Diamond drilling was initiated in early August with a second drill joining the program in mid-August. The drilling contractor completed 6,838 metres in 22 holes. Post drilling, a geophysical contractor was employed to complete a downhole EM survey using a Volterra Borehole EM system. Results from that survey are in process. Twelve holes and the lower portion of hole SD-18-421 have results pending.
The Company is very pleased with the quality of work undertaken by the field crews under the direction of Sun Metals’ VP Exploration Ian Neill. The program accomplished the main goal of identifying the path forward. Although all results will need to be received and analyzed, further exploration of the Canyon Creek Skarn in the area of hole DDH18-SD-421 will dominate the next stage of exploration at Stardust.
Much of the text and information in this news release was supplied to Lorraine Copper by Sun Metals and all technical aspects of this news release have been reviewed and approved by Ian Neill P.Geo., Vice President Exploration of Sun Metals, who is a qualified person as defined by National Instrument 43-101. G. L. Garratt, P.Geo., is the qualified person, as defined by NI 43-101, who has reviewed and takes responsibility for this news release.
Glen Garratt, P.Geo., VP, Director
Lorraine Copper Corp.
FOR FURTHER INFORMATION REGARDING LORRAINE COPPER PLEASE CONTACT: (604) 681-7913 or (888) 656-6611 (Toll Free) or go to our website: www.lorrainecopper.com
About Lorraine Copper: Lorraine Copper is a Canadian mineral exploration company that is acquiring and advancing copper, gold and molybdenum projects at intermediate to advanced stages that hold significant resources. Lorraine Copper currently owns three properties all of which have defined resources: Lorraine copper-gold (Joint Ventured with Teck Limited), OK copper-molybdenum and Stardust (under option to Sun Metals Corp.). For more information please visit the Company's website at www.lorrainecopper.com.
The Option Agreement
Pursuant to the terms of the Option, Sun Metals has the right to earn a 100% ownership interest in the Project by making five staged annual instalments of 500,000 Sun Metals common shares, and annual cash payments of a total of $375,000. Sun Metals must also spend $6 million on the Project by December 31, 2021. Sun Metals is the operator of the Project during the Option and must spend $500,000 before the end of 2017 (incurred) and $1,000,000 annually thereafter until the earn-in is completed. Upon earn-in, Sun Metals will issue top-up Sun Metal shares, up to a maximum of 51,873,599 Sun Metals Shares, in order for Lorraine Copper to own a total 30% interest in Sun Metals. Lorraine Copper will also hold a 2% NSR on precious metals and a 1% NSR on base metals, each of which may be bought down by Sun Metals by one half, with payment of $1.5 million per royalty.
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.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward‐looking statements”. Forward‐looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.
The Stardust Resource
Stardust is a high grade polymetallic Carbonate Replacement Deposit with a rich history. The Canyon Creek copper-gold skarn zone at Stardust was the subject of a 2018, 43-101 compliant resource estimate published by the Company in January 2018. GeoSim Services Inc. provided the following estimate.
Stardust Project - Canyon Creek zone Mineral Resource Estimate(1):
-------------------------------------------------- |Resource |Tonnes |Copper|Zinc|Gold|Silver|% | |Category | |% |% |g/t |g/t |Cu | | | | | | | |Eq | |------------------------------------------------| |Indicated|985,000 |1.34 |0.62|1.59|36.8 |2.92| |------------------------------------------------| |Inferred |1,985,000|1.24 |0.14|1.72|30.5 |2.65| --------------------------------------------------(1)The cut-off grade used in the resource estimate was 1.5% copper equivalent. Metal price assumptions for the copper equivalent calculation were $3.00/lb Cu, $1.25/lb Zn, $1,300/oz Au and $18/oz Ag. Adjustment factors to account for differences in relative metallurgical recoveries of the constituents will depend upon completion of definitive metallurgical testing. The following equation was used to calculate copper equivalence: Cu Eq = Cu + (Zn x 0.4167) + (Au x 0.6319) + (Ag x 0.0087). A cut-off grade of 1.5% Cu Equivalent represents an in-situ metal value of approximately $100/tonne which is believed to represent a reasonable break-even cost for underground mining and processing. These are not mineral reserves and no work has been completed that demonstrates economic viability at the Project.
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