News Releases

Sun Metals Reports More High-Grade Results at Stardust Intersecting 3.40% Copper Equivalent Over 17.45 Metres Grading 1.37% Copper, 1.70 G/t Gold and 39.7 G/t Silver

Canada NewsWire

VANCOUVER, BC , Nov. 11, 2020 /CNW/ - Sun Metals Corp. (TSXV: SUNM)  ("Sun Metals" or "we" or the "Company") is pleased to announce additional positive drill results from the Stardust project that include high-grade mineralization returned from an open area within the established 900 metre (m) plunge-length corridor of high-grade copper-gold mineralization. The 100% owned Stardust project is located in northcentral British Columbia .

Figure 1– Mineralized drill core from 389.5 metres in DDH20-SD-466 showing high-grade massive sulphide copper replacement style mineralization. The 1.25m sample ran 15.03% CuEq (CNW Group/Sun Metals)

Drill hole DDH20-SD-466 was drilled into an area near historic drill hole LD2002-09 which was significantly enriched in gold relative to copper (Figures 2 and 3). The mineralization returned was more conventional regarding metals ratios with similar value in copper and gold, but remains a strong high-grade intercept in an area that is much closer to surface than other recently reported intercepts. The hole intercepted:

    • 3.40% Copper Equivalent (CuEq) 1 over 17.45m 2 grading 1.37% Copper (Cu), 1.70 grams per tonne (g/t) Gold (Au) and 39.7 g/t Silver (Ag), from 373.35m
    • Including 7.56% CuEq over 5.50m grading 3.02% Cu, 3.83 g/t Au and 87.2 g/t Ag, from 384.35m

"As we explore the detailed nature of the Stardust mineralized system, the thickness and grade of the intercepts continue to impress. However, equally impressive is the strength of the hydrothermal system driving it. For instance, drill hole DDH20-SD-463 returned 78.15 m of 0.28% CuEq from a 150 m zone of hydrothermal alteration. The drill hole targeted a significant step out, below a lens in the Canyon Creek zone and provided some valuable insight into the larger-scale plumbing system that contains the higher-grade mineralization. Additional work will be needed to zero in on the high-grade in this area but we know the environment is ripe for a massive sulphide with all of the hydrothermal preparation in the area." states Sun Metals President & CEO Steve Robertson .

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1 Assumptions used in USD for the copper equivalent calculation were metal prices of $3.00/lb. Copper, $1,900/oz Gold, $23/oz Silver, $1.10/lb. Zinc and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Gold (g/t) x 0.9240) + (Silver (g/t) x 0.0112) + (Zinc (%) x 0.3667).

2 True widths of the reported mineralized intervals have not been determined.

Other Drill holes

DDH20-SD-461M tested for a southern extension of the 421 zone.  The hole intersected a 170 m interval of hydrothermal alteration along the mineralized trend.  Drilling intercepted 22.10m of lower grade mineralization in the projected lower extension of two lenses of the Canyon Creek zone, with one section returning 1.72% CuEq over 5.05m .  The hole intersected numerous porphyritic quartz diorite intervals at the projected intersection depth of the 421 zone, suggesting that some of the mineralization may have been displaced.

DDH20-SD-462 was drilled into a fold target to the east of the 421 zone. The target for this hole was the projected hinge zone of folded limestone, prospective for hosting additional 421 style mineralization.  The hole intersected limestone at a depth of 610m with hydrothermal alteration and a small base and precious metal vein containing elevated zinc, lead and silver. The Sun Metals exploration team was encouraged to see that the fold was subjected to hydrothermal fluids carrying base and precious metals, making this area a target for further exploration.

DDH20-SD-463 was drilled below the Canyon Creek zone where mineralization remains open at depth. The hole intersected a 150m interval of elevated base and precious metal values within altered sedimentary and intrusive rocks that typically form the hanging wall of the zone.  The hole then intersected a deeper interval of mineralization grading 1.04 CuEq over 9.60m (0.58% Cu, 0.36 g/t Au, 11.0 g/t Ag) from 823.80m .  This interval does not correlate well to any known zones and may represent an additional mineralized pathway (Figures 2 and 4).

Table 1: Significant Drill Results From This News Release

Drill Hole Name

From

(m)

To

(m)

Length

(m)²

Copper

(%)

Gold

(g/t)

Silver

(g/t)

Zinc

(%)

Cu Eq

(%)¹

DDH20-SD-466

373.35

390.80

17.45

1.37

1.70

39.7

0.01

3.40

Including

384.35

389.85

5.50

3.02

3.83

87.2

0.01

7.56

DDH20-SD-461M

493.40

498.45

5.05

0.90

0.74

11.3

0.01

1.72

 

Quality Assurance / Quality Control

Drilling completed on the project in 2020 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 control 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 (ICPES/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, with gold overlimits completed with a gravimetric finish. A silica wash was used between high–grade samples to ensure no sample carry over.

A total of 11,988m of drilling was completed in 17 drill holes with 3,147 samples shipped to the lab. Lab turnaround time has been significantly negatively impacted by the COVID-19 pandemic and consequently, results from ten drill holes have been received at the time of this release. Additional results from the program will be reported when they are received from the lab.

Prices used to calculate the CuEq values 1 in this project have been updated from previous reporting on the Stardust project to reflect the change in commodity prices.

Technical aspects of this news release have been reviewed, verified 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 – Standards of Disclosure for Minerals Projects .

An updated interactive corporate presentation is available on Sun Metals' website at https://www.sunmetals.ca/investors/presentation/ .

On Behalf of the Board of Directors of

SUN METALS CORP.

Steve Robertson

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.

About Sun Metals

Sun Metals is advancing its 100% owned flagship, high-grade Stardust Project located in northcentral British Columbia, Canada . Stardust is a high-grade polymetallic Carbonate Replacement Deposit with a rich history.  Sun Metals also owns the Lorraine copper-gold project, and the OK copper-molybdenum project.

The Canyon Creek copper-gold skarn zone at Stardust was the subject of a 2018, NI 43-101 resource estimate published by the Company titled "Stardust Project NI 43-101 Technical Report Omineca Mining Division, British Columbia " with an effective date of January 8, 2018 . In that report, GeoSim Services Inc. provided the following estimate.

Stardust Project - Canyon Creek zone Mineral Resource Estimate 3 :

RESOURCE CATEGORY

TONNES

COPPER %

ZINC %

GOLD G/T

SILVER G/T

% CU EQ 3

Indicated

985,000

1.34

0.62

1.59

36.8

2.92

Inferred

1,985,000

1.24

0.14

1.72

30.5

2.65

Cautionary Note Regarding Forward-Looking Statements

All statements in this news release, other than statements of historical fact, are "forward-looking information" with respect to Sun Metals within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address mineralization at the Stardust project; relative size of mineralization at the 421 zone, geophysical surveys, use of instrumentation data, and goals and expectations pertaining to metallurgical results; the 2020 program and the use of flow-through dollars; the potential quantity and/or grade of minerals; the growth potential of the Stardust project; planned mining methods and mineral processing; break-even cost for the Stardust project; British Columbia as a reliable jurisdiction for mining; proposed timing of exploration and development plans; potential conversion of inferred resources to measured and indicated resources; potential extension and expansion of mineral resources; negotiations with the Takla First Nation; the potential impact of the COVID-19 pandemic; and the focus of the Company in the coming months. Forward-looking information is often, but not always, identified by the use of words such as "seeks", "anticipates", "plans", "continues", "expects", "projects", "predicts", "potential", "targets", "intends", "believes", "potential", "budgets", "schedules", "estimates", "forecasts" and similar expressions (including the negative of such expressions), or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal process; currency exchange rates and interest rates; favourable operating conditions; political stability; obtaining governmental approvals and financing on time; obtaining renewals of existing licences and permits and obtaining required licences and permits; labour stability; stability in market conditions; availability of equipment; accuracy of mineral resources; successful resolution of disputes and anticipated costs and expenditures. Management believes these estimates and assumptions are reasonable. In addition, many assumptions are based on factors and events that are not within the control of Sun Metals and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the speculative nature of the Company's business; the Company's formative stage of development; the Company's financial position; possible variations in mineralization; conclusions of future economic evaluations; business integration risks; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; fluctuations in the securities market; fluctuations in currency markets; change in national and local government, legislation, taxation, controls, regulation and political or economic development; inability to obtain adequate insurance to cover risks and hazards; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour and employee disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or the completion of exploration; relationships with and claims by local communities and First Nations; negotiations with the Takla First Nation; assumptions about the effect of the Covid-19 pandemic; and title to properties as well as those factors discussed in the Annual Information Form of the Company dated April 1, 2020 in the section entitled "Risk Factors", under Sun Metals' SEDAR profile at www.sedar.com .

Although Sun Metals has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Sun Metals disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law. Accordingly, readers should not place undue reliance on forward-looking information.

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3 The cut-off grade used in the resource estimate was 1.5% copper equivalent (Cu Eq). Metal price assumptions for the Cu Eq calculation in this table were $3.00/lb Copper, $1.25/lb Zinc, $1,300/oz Gold and $18/oz Silver. 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 = Copper + (Zinc x 0.4167) + (Gold x 0.6319) + (Silver x 0.0087). A cut-off grade of 1.5% Cu Eq 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.

 

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SOURCE Sun Metals

 

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