Fact Sheet | Company Presentation

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TORONTOOct. 24, 2017 /CNW/ – Kerr Mines Inc. (“Kerr” or the “Company”) (TSX: KER, OTC: KERMF, FRA: 7AZ1) is pleased to announce the discovery of a new mineralized zone at the Copperstone Project. The newly realized Footwall Zone has been established as a mineralized zone by combining the drilling results of the 2017 Phase one surface exploration program with historical drilling results.

  • The new Footwall Zone is currently 500 feet along strike by 800 feet along dip and parallel to the Copperstone Zone.
  • The Copperstone Zone has a strike length greater than 4,500 feet.
  • Select intervals include:
    • CSR-143 is 30 feet at 11.7 g/tonne
    • DCU-8 is 15 feet at 22.1 g/tonne
    • KER-15-02 is 6 feet at 13.9 g/tonne
    • KER-17S-04 is 12 feet at 7.3 g/tonne
  • Provides a pathway to increase gold resources at the Copperstone Project.
  • Footwall Zone open for expansion along strike and dip.

“Establishing the Footwall Zone is a fundamental step forward towards achieving our long term strategic growth vision. The Footwall Zone represents a significant opportunity expand our resource growth profile,” said Claudio Ciavarella, CEO Kerr Mines.

Over 60 drill holes were compiled, and mineralized intervals were grouped and composited to form grade shells in this new Footwall Zone. The grade shells of historic origin were identified and combined with new grade shells formed by the phase one drill program to establish a zone of continuity.

The Footwall Zone provides a focused area within which to continue exploration drilling efforts with the goal of adding to the Copperstone Project gold resources. In addition, the discovery of this Footwall Zone allows a more focused allocation of exploration drilling outside of the Footwall Zone with the goal of expanding it along strike and dip.

The geology, including lithology, alteration and inclination, is the same as the Copperstone Zone.  The mineralized areas include intersections of quartz latite porphyry in the detachment fault brecciated sediments with chlorite and hematite alteration.

The Footwall Zone is a parallel system to the west side of the Copperstone Zone, which historically produced over 500,000 ounces of gold and has a current mineral resource of 313,000 ounces at 10.35 gram per tonne (0.302 ounce per ton) (measured + indicated), estimated in 2010*.

Figure 1 – Cross Section View (CNW Group/Kerr Mines Inc.)

Figure 2 – Oblique View (CNW Group/Kerr Mines Inc.)

Footwall Zone Drilling Selected Intervals

Drill Hole #

Depth From
(ft)

Depth To
(ft)

Assay Value
g/tonne Au

Total Interval1

A00-10 (Historical)

479

485

51.6

A00-10

485

489.5

6.7

10.5 ft @ 32.3 g/tonne Au

CS-185 (Historical)

280

285

6.0

CS-185

285

290

5.1

10.0 ft @ 5.6 g/tonne Au

CSD-67 (Historical)

395

400

11.4

CSD-67

400

405

6.7

10.0 ft @ 9.0 g/tonne Au

CSR-143 (Historical)

270

280

11.3

CSR-143

280

290

20.2

CSR-143

290

300

3.5

30.0 ft @ 11.7 g/tonne Au

DCU-8 (Historical)

550

565

15.0

15.0 ft @ 22.1 g/tonne Au

F4-1 (Historical)

574

579

14.0

5.0 ft @ 14.0 g/tonne Au

H5-147 (Historical)

25

35

6.6

10.0 ft @ 6.6 g/tonne Au

H5-147

85

95

6.7

10.0 ft @ 6.7 g/tonne Au

H5-147

278

283.5

8.0

5.5 ft @ 8.0 g/tonne Au

H5-147

299

304

7.1

5.0 ft @ 7.1 g/tonne Au

KER-15-02 (Historical)

635

641

13.9

6.0 ft @ 13.9 g/tonne

KER-15-03 (Historical)

350

355

11.1

5.0 ft @ 11.1 g/tonne

KER-17S-02 

56.5

60

9.1

3.5 ft @ 9.1 g/tonne Au

KER-17S-02

78

80.1

5.4

2.1 ft @ 5.4 g/tonne Au

KER-17S-04 

594

606

7.3

12 ft @ 7.3 g/tonne Au

KER-17S-07 

494

497

4.1

3.0 ft @ 4.1 g/tonne Au

Table 1 – Select Intervals within Footwall Zone.
1 Interval not true thickness

 

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Michael R. Smith, Registered Geologist., a “Qualified Person” as defined by NI 43-101 for this project.

About Kerr Mines Inc. 
Kerr Mines is a North American gold development and exploration company currently advancing the 100% owned, fully permitted past-producing Copperstone Mine project. Copperstone is a high-grade gold project located along a detachment fault mineral belt in mining-friendly Arizona. The project demonstrates significant upside exploration potential within a 4,775 hectare (11,800 acres) land package that includes a production history of over 500,000 ounces of gold. The Company’s current focus is on maximizing Copperstone’s potential by defining and expanding current resources and strengthening the mine’s economics leading to a production decision.

Quality Assurance and Quality Control Statement
Procedures have been implemented to assure Quality Assurance Quality Control (QAQC) of drill hole assaying being done at American Assay Laboratories (American), which is ISO Accredited.  All portions of drill holes are being assayed and samples are securely stored for shipment to American, with chain of custody documentation through delivery. Mineralized commercial reference standards and coarse blank standards are inserted every 20th sample in sequence and results are graphed to assure acceptable results, resulting in high confidence of the drill hole assay results.  When laboratory assays are received, the QAQC results are immediately evaluated and graphed to analyze dependability of the drill hole assays. As the Copperstone Project advances, additional QAQC measures will be implemented including 1) selected duplicate assaying being done at a second accredited assay laboratory, 2) duplicate assaying of selected intervals of core (quarter splits) and reverse circulation drilling samples, and 3) metallic screen assays of selected remaining laboratory rejects. All results will be analyzed for consistency.

*Mineral Resource Tabulation – Model capped at 5.0 oz Au/t with a 0.15 oz Au/t cutoff grade,   1,038,000 tons (measured + indicated) – NI 43-101 Technical Feasibility Report, Copperstone Project, February 11, 2010. Limited mining of this resource occurred in the period between Q4 2012 and Q3 2013 and updated tons will be tabulated when a new resource is estimated in early 2018.

Cautionary Note Regarding Forward Looking Statements

This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Kerr Mines’ business are more fully discussed in the Company’s disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Kerr Mines assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release and no stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

SOURCE Kerr Mines Inc.

Kerr Mines

390 Bay Street, Suite 806
Toronto Ontario
M5H 2Y2

Tel: +1 (416) 855-9305
Email: info@kerrmines.com

TSX: KER