Sun Metals Intersects 100 Metres Grading 5% Copper Equivalent in Drill Hole at Stardust Project
November 14, 2018
Vancouver, B.C. - Sun Metals Corp. (“Sun Metals” or the “Company”) (TSXV: SUNM) announces the full mineralized intersection from diamond drill hole DDH18-SD-421 at its Stardust project in northcentral British Columbia has now been completely assayed and has returned a total 100-metre intersection grading 2.51% copper, 3.03 grams per tonne (g/t) gold, and 52.5 g/t silver for a 4.99% copper equivalent (CuEq).
The completed results from DDH18-SD-421 reinforce that drilling has intersected consistently stronger and more pervasive mineralization than historically encountered at Stardust by previous operators. The results further validate the Company is successfully tracking a major mineralizing fluid pathway toward the heart of this high-grade system.
New results include 29.1 metres of mineralization, grading 3.35% copper, 4.29 g/t gold and 65.7 g/t silver (See Table 1 and Figure 2). This intersect is downhole from Stardust’s previously reported best ever intercept, (see press release at https://sunmetals.ca/news/2018/). The 100-metre intersect also includes 22.8 metres of mineralized skarn alteration in the hanging wall of the massive sulphide that averages more than 1% copper equivalent. The mineralized interval in drill hole DDH18-SD-421 is in a newly identified mineralized area, outside of the current 43-101 resource estimate. See detail on the resource estimate at the end of this news release. Mineralization in this Canyon Creek Skarn zone extension remains open in all directions (See Figure 3).
The Company believes this drilling has revealed the distinct pattern of encountering larger bodies of more persistent and higher-grade mineralization closer to the source of the mineralizing fluids that formed the skarn system.
Table 1. Tabulated results from DDH18-SD-421
(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).
(2) True widths of the reported mineralized intervals are not known
(3) Previously Reported
Further results for an additional 14 drill holes from the 2018 program are pending and are expected to be available for release by year end.
Graphics & Table
A plan map (Figure 1: https://sunmetals.ca/site/assets/files/3691/figure_1.pdf) of the 22-hole 2018 drill program, cross-section (Figure 2: https://sunmetals.ca/site/assets/files/3691/figure_2.pdf) and long-section (Figure 3: https://sunmetals.ca/site/assets/files/3691/figure_3.pdf) of the updated interpretation of the Canyon Creek Skarn zone are provided here and displayed on the Company’s website. A table of results received to date from the 2018 drill program is available on the company website: https://sunmetals.ca/site/assets/files/3691/table_1_2018_stardust_diamond_drill_hole_results.pdf
- President & CEO Steve Robertson and Dr. Peter Megaw, Chair of Sun Metals’ Technical Advisory Committee, at the drill site of DDH18-SD-421 discussing the implications of this hole’s results on future exploration: https://vimeo.com/296060585
- At the Canyon Creek Skarn discovery outcrop, Steve Robertson and Peter Megaw show its relation to core found in DDH18-SD-421: https://vimeo.com/296064780
- For other new videos providing commentary on Stardust, click here: https://vimeo.com/user85397329
Quality Assurance / Quality Control
Drilling completed on the project in 2018 was supervised by on-site Sun Metals personnel who collected and tracked samples and implemented a full QA/QC program using blanks, standards and duplicates to monitor analytical accuracy and precision. The samples were sealed on site and shipped to Bureau Veritas (“BV”) in Vancouver BC for analysis. BV’s quality system complies with global certifications for Quality ISO9001:2008. Core samples were analyzed using a combination of BV’s AQ270 process for low level concentrations (ICP-ES/MS aqua regia) and the MA270 process for higher level concentrations (ICP-ES/MS 4 acid digestion). Gold assaying was completed with FA330, a 30-gram fire assay with ICP-ES finish. Base metal overlimits were finalized with titration and a silica wash was used between high grade samples to ensure no sample carry over.
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.
For more information, please contact Susie Bell, Investor Relations for Sun Metals at email@example.com, 604-697-4953, or Steve Robertson, President and CEO of Sun Metals, at firstname.lastname@example.org, (604) 697-4952.
On Behalf of the Board of Directors of
SUN METALS CORP.
Chief Executive Officer
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.
Pursuant to an option agreement between Sun Metals and Lorraine Copper Corp. (“Lorraine Copper”), an Exchange listed issuer, Sun Metals has an option to earn a 100% interest in the Stardust project, located in northcentral British Columbia by making annual instalments of Sun Metals common shares and cash payments. Sun Metals must also spend $6,000,000 on the Stardust project by December 31, 2021.
About Sun Metals
Sun Metals is advancing its flagship, high-grade Stardust project located in northcentral British Columbia, Canada. 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(4):
|Resource Category||Tonnes||Copper %||Zinc %||Gold g/t||Silver g/t||% Cu Eq|
(4)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.
Sun Metals believes B.C. is a reliable jurisdiction with excellent exposure to capital markets, a deep pool of exploration professionals, a wealth of supporting services, and exceptional infrastructure with direct access to Pacific markets.
A corporate presentation is available on Sun Metals’ website at www.Sunmetals.ca.
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.