Great Atlantic begins drilling Keymet property
Great Atlantic begins drilling Keymet property
2018-07-30 06:51 PT - News Release
Mr. Christopher Anderson reports
GREAT ATLANTIC BEGINS 2018 DIAMOND DRILLING PROGRAM AT ITS - 100 per cent OWNED KEYMET BASE - PRECIOUS METAL PROJECT - BATHURST, NEW BRUNSWICK
Great Atlantic Resources Corp. has begun the 2018 diamond drilling program at its Keymet precious -- base metal property, located near Bathurst, northeast New Brunswick. The program is being conducted in the northwest region of the property with the objective of defining polymetallic veins (zinc, lead, copper and silver bearing) and exploring a gold-bearing zone discovered during 2017 drilling. Great Atlantic's 2017 drilling highlights from this region included 38.96 per cent zinc equivalent over 1.27-metre core length (new vein discovery) and 8.10 per cent zinc equivalent over 12.05-metre core length at the Elmtree 12 vein system (using metal prices as of July 26, 2018) plus 0.64 gram per tonne gold over 19.96-metre core length (new gold discovery adjacent to the Elmtree 12 vein system). The 2018 drilling program will focus in the Elmtree 12 vein system to provide additional data for a planned maiden resource estimate. The program is being partially financed by a $40,000 exploration grant from the New Brunswick government junior mining assistance program.
Great Atlantic has drilled six holes in the Elmtree 12 veins system since 2015. The current drill program will provide additional data for a planned maiden resource estimate on the Elmtree 12 vein system. The company also discovered a new gold-bearing zone adjacent to the Elmtree 12 vein system during 2017 drilling, being hosted in arsenopyrite-bearing metasedimentary rocks. The drilling program will also test this zone. Highlights of 2015 and 2017 diamond drilling by the company in this area include the following (as reported in news releases of Oct. 29, 2015, Feb. 23, 2016, Dec. 20, 2017, and March 2, 2018) with updated zinc equivalent based on metal prices at July 26, 2018:
- Hole Ky-15-3 (Elmtree 12): 16.68 per cent zinc, 1.11 per cent copper, 0.44 per cent lead and 152 grams per tonne Ag over 1.80-metre core length (22.53 per cent Zn equiv./1.80-metre core length);
- Hole Ky-15-4 (Elmtree 12): 8.68 per cent Zn, 0.29 per cent Cu, 0.20 per cent Pb and 44.8 g/t Ag over 4.28-metre core length;
- Hole Ky-17-5 (Elmtree 12): 5.43 per cent Zn, 0.45 per cent Cu, 0.19 per cent Pb and 60 g/t Ag over 2.75-metre core length (7.76 per cent Zn equiv. over 2.75-metre core length);
- Hole Ky-17-6 (Elmtree 12): 3.54 per cent Zn, 0.92 per cent Cu, 0.28 per cent Pb and 115 g/t Ag over 12.05-metre core length (8.10 per cent Zn equiv. over 12.05-metre core length) and 0.64 g/t Au over 19.96-metre core length (new gold discovery);
- Hole Ky-17-8 (2017 discovery): 18.80 per cent Zn, 3.55 per cent Cu, 1.16 per cent Pb and 576 g/t Ag over 1.27-metre core length (38.96 per cent Zn equiv. over 1.27-metre core length);
- True thickness of these intersections is unknown at this time.
The company's focus since acquiring the Keymet property has been the northwest region of the property in the area of reported polymetallic veins with most work in the area of the Elmtree 12 copper-lead-zinc-silver-bearing vein system. At least seven vein occurrences with lead, zinc and plus or minus copper, silver and gold are reported in this region of the property in addition to the polymetallic veins reported at the historic Keymet mine (source: New Brunswick Department of Energy and Resource Development mineral occurrence database). The Keymet mine operated during the mid-1950s, producing copper, lead, zinc and silver. Production at this mine was terminated due to a fire at the site.
Historic Keymet mine (1950s)
Significant precious metal -- base metals deposits are reported within four km of the Keymet property. The Elmtree gold deposits are located within three km west-southwest of the Keymet property. The historic Nigadoo River mine is located approximately four km south of the Keymet property. Polymetallic massive sulphide veins were mined at the Nigadoo River mine during the 1960s and 1970s with copper, lead, zinc and silver being produced. The New Brunswick Deptartment of Energy and Resource Development mineral occurrence database reports shaft depth and production totals at this historic mine. Production during 1967 to 1971 is reported as 1,126,000 tonnes at 2.2 per cent lead, 2.1 per cent Zn, 0.24 per cent Cu and 92.57 g/t Ag. Production during 1973 to 1977 (after a two-year closure) is reported to be 733,000 tonnes (only partial metal grades reported). The shaft is reported to at least 470 metres deep.
The Nash Creek zinc project of Callinex Mines Inc. is located approximately 15 kilometres northwest of the Keymet property. Callinex Mines recently filed a National Instrument 43-101 technical report (effective date of March 21, 2018) which was completed by Tetra Tech Canada Inc. The report includes updated mineral resource estimates for the Nash Creek zinc project (Hickey and Hayes zones) using a 1.5-per-cent ZnEq cut-off. This included 13,592,000 tonnes indicated estimated resources at 2.68 per cent Zn, 0.58 per cent Pb and 17.8 g/t Ag; and 5,929,000 inferred estimated resources at 2.68 per cent Zn, 0.47 per cent Pb and 13.9 g/t Ag (source: Callinex Mines website).
Readers are warned that mineralization at the Elmtree gold deposits, historic Nigadoo River mine and Nash Creek zinc project is not necessarily indicative of mineralization on the Keymet property.
Access to the Keymet property is excellent with paved roads transecting the property, including a provincial highway. The property covers an area of approximately 3,400 hectares and is 100 per cent owned by the company.
Readers are warned that historical records referred to in this news release have been examined but not verified by a qualified person. Further work is required to verify that historical records referred to in this news release are accurate.
David Martin, PGeo, a qualified person as defined by NI 43-101 and vice-president of exploration for Great Atlantic, is responsible for the technical information contained in this news release.
A qualified person has verified the 2015 and 2017 exploration data for Great Atlantic. The qualified person managed the 2015 and 2017 exploration programs for Great Atlantic at the Keymet property. A qualified person is managing the 2018 drilling program.
Zinc equivalent (per cent Zn equiv.) values for drill hole intersections are based on the following metal prices (as of July 26, 2018): zinc $2,653 (U.S.)/tonne ($1.2033 (U.S.)/pound), lead $2,132 (U.S.)/tonne (96.7 U.S. cents/lb), copper $6,251 (U.S.)/tonne ($2.8353 (U.S.)/lb) and silver $15.58 (U.S.) per troy ounce. Metal recoveries of 100 per cent were applied in the zinc equivalent calculations. The zinc equivalent calculation is as follows: ZnEq is equal to 100 multiplied by ((Ag price in grams multiplied by Ag grade) plus (Pb price multiplied by 2,204.6 multiplied by Pb grade (per cent) divided by 100) plus (Cu price multiplied by 2,204.6 multiplied by Cu grade (per cent) divided by 100) plus (Zn price multiplied by 2,204.6 multiplied by Zn grade (per cent) divided by 100)) divided by Zn price multiplied by 2,204.6.
The company is also pleased to announce that it has arranged a non-brokered private placement of five million units at a price of five cents per unit for gross proceeds of $250,000. The units of the financing will comprise one common share and a full share purchase warrant, which may be exercised for a period of two years at a price of 7.5 cents per share. The proceeds of the private placement will be used for general working capital and exploration work. A finder's fee may be paid to eligible finders in accordance to the TSX Venture Exchange policies. All securities issued pursuant to the offering will be subject to a hold period of four months and one day from the date of closing. The offerings and payment of finders' fees are both subject to approval by the TSX-V. Directors, officers or other insiders of the company may participate in the foregoing offerings, and such parties may sell securities of the company owned or controlled by them personally through the facilities of the TSX Venture Exchange to finance participation in such offerings.
About Great Atlantic Resources Corp.
Great Atlantic Resources is a Canadian exploration company focused on the discovery and development of mineral assets in the resource-rich and sovereign risk-free realm of Atlantic Canada, one of the No. 1 mining regions of the world. Great Atlantic is currently surging forward building the company utilizing a project generation model, with a special focus on the most critical elements on the planet that are prominent in Atlantic Canada, antimony, tungsten and gold.
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