Zephyr Postpones Drilling Until Late July
Trading Symbol: TSXV: ZFR OTC: ZPHYF
Shares Outstanding: 64,646,905
HALIFAX, NS, June 17, 2020 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Corporation") (TSXV: ZFR) has postponed drilling on the El Plomo section of its Dawson - Green Mountain project in Colorado pending anticipated approval of a Notice of Intent (NOI) application by the Colorado Mined Land Reclamation Board (MLRB) in late July. The Colorado Division of Reclamation, Mining and Safety (DRMS) confirmed acceptance of Zephyr's NOI application which outlines the planned exploration program, operating procedures and reclamation of surface disturbances along with the required financial bond determined by DRMS. An appeal to the acceptance of the NOI (the "Appeal") was filed by an independent group at 5:47 Eastern time, June 12, 2020. Zephyr received a letter after the close of business on June 16, 2020 from DRMS stating the Appeal will be heard by the MLRB on July 22 or 23, 2020.
The Appeal alleges that Zephyr's compliance with the Minerals Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials is incomplete in the NOI. Zephyr disputes this and is confident the information supplied in the NOI is complete and fully satisfies DRMS requirements. DRMS reviewed and accepted Zephyr's NOI as complete with all procedures pertaining to the planned exploration program and reclamation being satisfactorily addressed as per the applicable rules and regulations. As such, Zephyr firmly believes the Appeal is totally without merit. A decision by the MLRB is expected at the board hearing on July 22 or 23, 2020. Zephyr is highly confident the detailed information provided in the NOI to DRMS will support a favourable decision by MLRB. In this event, a late July start-up of the drilling program would represent approximately a three week delay from the original planned July 6 start-up.
Loren Komperdo, President and CEO stated "I believe this unexpected Appeal to the NOI application is frivolous and totally without merit, and that Zephyr has met all requirements for the NOI approval. Shareholders' patience in this matter is appreciated. Our focus is on drilling the high potential BHT silver-lead-zinc target as expeditiously as possible. Management is highly confident of checking off this final box."
Zephyr has since 2013 always received approval on its NOI applications which centers on environmentally acceptable exploration procedures and practices within the regulatory guidelines and the determination of the amount of the cash bond to be lodged with DRMS for reclamation of surface disturbances. These surface disturbances are very low level, minor disturbances which are easily and effectively mitigated and corrected post program at very low cost. Zephyr has been, and is in compliance with DRMS rules and regulations since commencing its exploration programs under various NOI's since 2013.
Zephyr has all other permits and approvals in place from Fremont County, the Federal Bureau of Land Management (BLM), and the Colorado Division of Water Resources needed to begin drilling at El Plomo. In addition, the mining lease on State Section 16, representing a large portion of the area in the El Plomo section was issued to Zephyr by the Colorado State Land Board in close consultation and agreement by the Colorado Parks & Wildlife.
About Zephyr Minerals Ltd.
Zephyr Minerals Ltd. continues to advance its 100% owned high grade Dawson-Green Mountain Project in Colorado, USA. After expanding its land package to 1,385 hectares (3,430 acres) the Company now controls a 12.2 km long Dawson-Green Mountain mineralized trend. The central 3.2 km long El Plomo section is the focus for potential Broken Hill Type silver-lead-zinc mineralization and the east and west sections, Dawson and Green Mountain respectively are being targeted for gold. The Dawson section is currently host to a high grade inferred gold resource. The Company believes the combined Dawson and Green Mountain sections encompassing approximately 9 km of mineralized trend provide excellent resource expansion potential.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The forward-looking statements contained in this document relating to the anticipated timing and outcome of the appeal and the anticipated timing of drilling are based on certain key expectations and assumptions made by the Company, including, with respect to the Company's submitted NOI and timing for disposition of the Appeal and availability and readiness of contractors and equipment required for drilling, expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the exploration work on the Dawson-Green Mountain Property. The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Zephyr Minerals Ltd.
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