Kermode releases historical drill results from Eastgate
2022-01-11 12:17 ET - News Release
Mr. Peter Bell reports
KERMODE ANNOUNCES 1986 DRILLING & CONCEPTUAL ESTIMATE FOR EASTGATE
Kermode Resources Ltd. has released historical results from drilling at the Eastgate gold project in Nevada that were not previously made public and a conceptual estimate for a disseminated gold system based on this drilling.
Kermode recently obtained assay tables, rock chip logs, cross-section diagrams, drill collar locations, and azimuth information for five (5) drill holes completed in 1986 by Freeport-McMoRan Inc. at Eastgate. Kermode reports one interval drilled adjacent to the Schweis Mine below, which in management's view provides the basis for a preliminary Conceptual Estimate for disseminated gold around the vein at Eastgate. The historical drilling lacked surface control or downhole survey control, and the true width of the intercept reported here is unknown. Also, Kermode notes potential for downward bias in assays because of the drilling technology used at the time.
Peter Bell continued, "The highlight intercept from hole #1 that returned 0.4g/t Au over 53m from 55m depth was collared near the past-producing Schweis Mine and the pierce point for this interval is located in what appears to be the down-dip extension of the mine. This drill result suggests the potential for significant disseminated gold around the high-grade vein that was mined historically. The RC drilling technology used in 1986 commonly under-reported gold grades where high-grade, coarse free gold was present as at Eastgate due to "winnowing" of the heavier coarse gold from the cuttings as the they are blown up the hole, on the outside of the drill pipe, from the drill bit until entering the interchange and the inner tube, often a distance of 1.5 meters."
Hole #3 was collared between the Schweis Mine and the Gold Ledge Mine. It appears to have intersected the down dip projection of the high-grade vein with 4.5m at 1.19g/t Au and 31.3g/t Ag starting at 45.72m depth within a broader zone of anomalous gold mineralization extending from 35.06 to 57.93 meters, which gives another example of disseminated gold around the vein.
Hole #5 was drilled more than 340 meters east of hole 1. The Company only has assays for the top 36.5 meters and does not have a log of this hole. Importantly 33.5 meters of the top 36.5 meters of this hole contain anomalous gold with the last available interval assaying 0.036g/t gold. The Company has no logs or assay data for holes 6 and 7 apparently drilled well to the north and east of the Schweis Mine.
Hole #2 appears to be on strike to the south of Schweis Mine, but is situated on the south side of a northwest striking fault. As most of the old mine workings in the area are north of the Schweis Mine, it is possible the vein may be offset by a slip fault or buried under cover to the south.
All of the historical work and conclusions described above were carried out by arm's length third parties prior to the enactment of NI43-101. Kermode has no information about the mining or assay methods used, or whether the work was carried out under the supervision of a Qualified Person as that term is defined in NI43-101. These historical records should not be relied upon without further work being carried out at and around Eastgate under the supervision of a Qualified Person.
Conceptual Estimate for the Eastgate Project
This exploration target is not a mineral resource estimate and is conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource.
The basis for the exploration target ranges includes the following:
- One mineralized zone has been mined historically and tested with limited drilling in 1986 by Freeport Minerals Company, now Freeport-McMoRan Inc. The zone has a sufficient surface footprint to potentially host a disseminated gold system around the vein.
- It is assumed that the vein systems will have a similar width and vertical extent to the oxide gold veins in the area. This is supported by the presence of historical underground mining, 1 reverse circulation drill hole from 1986 by Freeport, and a small amount of recent channel samples.
- A series of drill programs not included in conceptual estimate here. There are additional drill holes from 1986 by Freeport that are not contained in envelope of conceptual estimate reported here. Also, results by Cabot Resources in 1990 only included assays from rock chips in the vein and not the footwall or hangingwall, so that drill program does not have relevant information results to contribute to conceptual estimate of a disseminated gold target as described here. Drilling by Southern Empire in 2020 meant to twin Cabot's drilling returned no significant assay, but the public records from this drilling do not report collar, azimuth, or details on which intervals were assayed so they are not included in this conceptual estimate.
- The grade range is considered reasonable based on grades from similar deposits in the region and the 1986 drill hole #1, which returned 0.4g/t Au from approximately 50-100m around the vein at the Schweis Mine.
- The tonnage range is based on a zone of disseminated gold extending approximately 25m into the hangingwall from surface to 100m down-dip along the vein and for 500m strike. The strike estimate is based on the distance between the Schweis Mine to the Gold Ledge, where the vein was mined historically with unknown production. The 100m depth is based on the lower extent of the intercept from Freeport hole #1. The 25m height of the ore zone is based on the estimated true width, assuming the Freeport hole #1 was drilled at -75 degrees pointed NW and the vein is dipping -75 degrees to the SW leaving the angle of intersection between the vein and the drill hole as 30 degrees (true width is 25m=sin(30)*50m). The upper range is based on the parameters above (25m by 100m by 500m with 2.7 specific gravity) and the lower range for tonnage is based on 80% of each spatial dimension (20x80x400x2.7).
The exploration target consists of approximately:
CEO Peter Bell comments, "The Eastgate project has no mineral resource at this time and much more work is required to determine if the range of tonnage and grade described in this conceptual estimate can be proven, but I am grateful for the opportunity to provide an Exploration Target as per section 2.3(2) of the National Instruments 43-101 to start to show the potential gold endowment at the Eastgate project. The ability to hunt for 'free ounces' by historical data compilation is an important part of the modern exploration toolkit."
The Eastgate Project
The Company holds at least an undivided 15% interest in the Eastgate Project, situated in the Eastgate Mining District, Churchill County, Nevada which covers the historic Eastgate, Double Eagle, Sunny Jim, and Gold Ledge Mines and lesser prospects.
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Robert G. Carrington, P. Geo, a Qualified Person responsible for the scientific and technical information contained herein under National Instrument 43-101 standards.
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