Mineral Resource Estimate Blende Zinc-Lead-Silver Deposit 32.98mt at 5.03% Zinc Eq Inferred Plus 3.65mt at 5.18% Zinc Eq Indicated

 

VANCOUVER, April 11, 2018 /CNW/ - (TSX-V: BCK) – Blind Creek Resources Ltd. ("Blind Creek" or the "Company") wishes to report the maiden open pit constrained NI 43-101 Resource Estimates for the Company's 100%-owned Blende Zn-Pb-Ag Project, situated 64 kilometres northeast of Keno Hill, Yukon, Canada. The Base Case Mineral Resource is reported in Table 1.

Table 1.  Base Case Mineral Resource (at NSR cutoff grade of $CDN39.35 (ZnEq=2%))

 

"The Blind Creek Board and Management are pleased with the new NI 43-101 Blende Deposit Resource Estimate," states President Brian P. Fowler, P.Geo. "While a direct comparison with the historic 1991 Billiton resource estimate* is not possible owing to differences in the drill hole database, cutoff grade, metal prices, estimated metal recoveries, payables and resource classification, it is clear that subsequent infill and extensional drilling by Blind Creek, coupled with recent metallurgical results and have had a very positive effect on the Blende Mineral Resource."

"The Blende Project is a potential bulk tonnage, open pit approach that offers some distinct cost advantages to other advanced Pb/Zn projects in Canada, which are typically underground. Blende Resource mineralization outcrops at surface, is confined to 2 pit shapes approximately 2 kilometres apart (view map) and remains open in areas northwest, southeast and below the "reasonable prospects of economic extraction" open pit shapes. Blind Creek is positioning to conduct a significant drill program in 2018 to test these potential open pit extensions and step out from mineralized drill hole intercepts at the adjacent Far West, Central, Far East and Shanghai Zones within the 8 kilometre-long Blende mineralized corridor. Further metallurgical testing and sampling will be undertaken to provide for a near-term Preliminary Economic Assessment to evaluate future mine planning, metallurgy and project economics."

*Table 2.  Historic 1991 Billiton Resource Estimate (at NSR cutoff of $CDN25)

 

The Historic Estimate*

• is based on 100m spaced sectional interpretation by linear projection
• uses metal prices and exchange rate of: Zn=$US0.50/lb, Pb =$US0.28/lb, Ag=$US4.25/oz, $US:$CDN=0.80
• uses recoveries for the sulfide material only of Zn=60%, Pb=85% (west) and 80% (east) Ag=80%
• applies internal dilution based on one adjacent 3m sample of waste
• is confined within a pit shape using a cutoff grade of $CDN25.00 and pit slopes of 50 degrees
• is the most recent previous resource estimate
• did not have sufficient work done by the author to establish it as a current resource
• is not treated by Blind Creek as a current resource

For additional detail on the historic resource please see our website. (view historic resource details)

Tables 3 and 4 below summarize the Blende deposit Indicated and Inferred Resource, respectively, at varying ZnEq cutoffs with the Base Case highlighted at 2% ZnEq (NSR=$CDN39.35).

Table 3. Blende Deposit Indicated Mineral Resource

 

Table 4. Blende Deposit Inferred Mineral Resource

 

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources will be converted into mineral reserves.

Mineral Resource Estimate ZnEq Cutoff Sensitivity (Base Case 2% ZnEq)
Notes for Tables 1, 3 and 4

1. The Mineral Resource Estimate in this disclosure is estimated by Moose Mountain Technical Services (MMTS), an independent mining consulting company.
2. The effective date of this Mineral Resource Estimate is March 27, 2018 and includes all Blende Property drill and trench results to the end of 2017. 
3. This Mineral Resource Estimate represents an increase over the previous Historic (1991) Billiton resource estimate.  This is primarily due to additional drilling and increased metal prices, as well as higher confidence in the recoveries due to recent metallurgical testing of both oxide and sulfide material.  This deposit has an average oxide content of 21% which allows for recovery of both sulfides and oxides at the recoveries used in this Resource Estimate
4. The Historic (1991) Billiton resource estimate was based upon 80 diamond drill holes with assay data.  A total of 119 diamond drill holes with assay data and 11 trenches with channel sampling were used in the MMTS Blende NI 43-101 Mineral Resource Estimate.  An additional 13 holes drilled in 1991 in the periphery of the deposit were not used in the Mineral Resource Estimate.
5. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
6. The Mineral Resource Estimate follows Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards definitions and guidelines.  
7. There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource Estimate.
8. The Resource has been constrained by "reasonable prospects for eventual economic extraction" open pits. This was done by creating a Lerchs-Grossman optimized pit using the prices, recoveries, payables and costs as stated below. No penalties were included.
9. The Equivalent Zn and NSR metal price assumptions of: $US1.20/lb Zn, $US1.00/lb Pb, and $US19.00/oz Ag and an exchange rate of US$0.80 = $1CDN. Metal recoveries are based on metallurgical studies done in 2017 on both the oxide and sulfides material, and are: 70% Zn, 85% Pb and 90% Ag (10% to Zn concentrate and 80% to Pb concentrate). Payables based on comparable smelter terms and a 3% Net Smelter Return (NSR) Royalty are; 85% Zn, 95% Pb and 80% Ag.
10. Mining costs used for the "reasonable prospects of economic extraction" pit shapes are $CDN1.88/tonne for all material within the potential open pits.  Processing, G&A, Surface Services and Tailings costs used have a total of $CDN37.50/tonne material milled.  Costs are based on comparable Zn-Pb-Ag projects in North America.  The exchange rate is US$0.80 = $1CDN.  Open pit slopes are 45 degrees.
11. The Zinc Equivalent (ZnEq) calculation uses the assumed prices, recoveries and payables resulting in the following equation:
    
     ZnEQ = Zn% + (Pb% * 1.0 * 0.85 * 0.95)/(1.2 * 0.70 * 0.85) + (Aggpt/31.1034 * 19 * 0.90 * 0.80)/(1.2 * 0.70 * 0.85 * 22.0462)
    
    
12. Internal dilution is accounted for in the block model by calculating whole block grades on 6mx6mx6m blocks.
13. Quality Assurance/Quality Control (QA/QC) has been reviewed in 2013 and again in 2018 by MMTS and is considered to industry standards. 
14. Geologic domains are modelled based on faulting, lithology and grade distribution.  Four domains have been modelled, with assays composted to 3m intervals honoring domain boundaries and capped by domain based on cumulative probability plots. Zn, Pb and Ag grades have been interpolated using Ordinary Kriging (OK).
15. Indicated Resources must contain at least two drill holes within 30m of the block.  Inferred Resources have at least 2 drill holes within 120% of the Variogram Range, with extrapolation of the data limited.
16. Density values are based on a correlation of (Zn+Pb) grades and re-assayed intervals from a sampling program undertaken in the summer of 2017.

A supporting Technical Report written in accordance with NI43-101 will be filed on SEDAR (www.sedar.com) and on the Blind Creek website (www.blindcreekresources.com) within 45 days.

Blende Deposit Model

The Blende deposit is a Proterozoic-aged carbonate-hosted massive sulphide deposit with features of both Irish-type and clastic-dominated Zn–Pb deposits (M.Moroskat et.al., Mineral Deposita 2014) and is the largest carbonate-hosted Zn-Pb-Ag deposit in Yukon (M. Robinson and C.I. Godwin, Economic Geology 1995).

Qualified Persons

Ms. Sue Bird, P.Eng., Principal at MMTS is independent of Blind Creek Ltd. and a 'Qualified Person' (Q.P.) as defined under Canadian National Instrument NI 43-101. Ms. Bird is responsible for the Mineral Resource Estimate and directly related information in this news release. Mr. Frank Wright, P.Eng., of F. Wright Consulting Inc. and a Qualified Person (Q.P.) as defined by National Instrument 43-101 is responsible for the Metallurgical Studies and directly related information in this news release.  Mr. Bob Morris, P.Geo, Principal Geologist of MMTS and a Qualified Person (Q.P.) as defined by National Instrument 43-101, is responsible for all other technical information (information not directly related to the Mineral Resource Estimate and Metallurgical studies) in this news release. Technical aspects of this news release have been reviewed and approved by Ms. Bird, Mr. Wright and Mr. Morris.

About Blind Creek Resources Ltd.

Blind Creek is a Vancouver-based junior resource company focused on Zn-Pb-Ag project acquisition, exploration and development in Yukon (Blende Property) and the Northwest Territories (AB Property). The Company's flagship property is the Blende Property in north-central Yukon, the largest carbonate-hosted Zn-Pb-Ag deposit in Yukon (M. Robinson and C.I. Godwin, Economic Geology 1995).  More recently the company has signed an agreement to acquire a 100% interest in the AB Property, a mid-stage Mississippi Valley Type (MVT) Zn-Pb exploration property in Northwest Territories and announced its intention to spin out its 100%-owned, historic and fully-permitted Engineer Gold Mine Property, situated 32 km southwest of Atlin, B.C. 

For additional information please visit the company website www.blindcreekresources.com.

On behalf of the Board of Directors,            

Mr. Brian P. Fowler, P.Geo.
President                                                        
bfowler@blindcreekresources.com                                                                

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.

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Blind Creek Resources Ltd. which may cause actual results, performance or achievements of Blind Creek Resources Ltd to be materially different from the results, performance or expectation implied by these forward looking statements. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Neither the 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.

SOURCE Blind Creek Resources Ltd.

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