Fact Sheet | Company Presentation

TSX:KER 0.21 VOL:  4.5K

|

US:KERMF 0.16 VOL:  19.5K

Subscribe for updates

Subscribe for Updates

TORONTONov. 2, 2017 /CNW/ – Kerr Mines Inc. (TSX: KER, OTC: KERMF, FRA: 7AZ1) (“Kerr” or the “Company”) is pleased to announce initial results of its Phase I underground drilling program with 10 of 12 drill holes intersecting significant gold mineralization and increasing the confidence in expanding the resource at the Company’s Copperstone project in Arizona.

Highlights

  • Results extend down-dip and up-dip gold grade and extend mineralized areas along strike in 2 sections of the Copperstone Zone
  • Historical drilling results confirmed
  • New intervals drilled from underground through the D Zone include:
    • 32 feet @ 16.2 g/t Au (KER-17U-12)
    • 20 feet @ 8.6 g/t Au (KER-17U-06)
    • 15 feet @ 5.1 g/t Au (KER-17U-04)
    • 10 feet @ 7.9 g/t Au (KER-17U-05)
    • 13 feet @ 6.2 g/t Au (KER-17U-11) and
    • 9 feet @ 5.4 g/t Au (KER-17U-11)

Martin Kostuik, President, stated, “with these initial Copperstone Zone results and the previously announced Footwall Zone results, (see press release dated 24 October 2017), we remain confident in delivering on our target of producing an updated resource estimate under NI 43-101 guidelines and delivering a Prefeasibility study in Q1 2018.”

The Copperstone Zone detachment fault system historically produced over 500,000 ounces of gold from an open pit.  Continuing below the open pit, the down-dip extension of the Copperstone Zone has a mineral resource of 313,000 oz Au at 10.35 g/t Au (0.302 ounce per ton) (measured + indicated), estimated in 2010* is being further enhanced by the Phase 1 underground drilling program. The Phase I 15,000 feet underground program is currently using two drills to test along strike and up/down-dip in the D and C zones of the Copperstone Zone. The program is confirming altered detachment fault breccia continuity from existing underground workings at depths from 100 to 400 feet below the open pit bottom.

Figure 1. Plan View (CNW Group/Kerr Mines Inc.)

730 Access

KER-17U-04 was designed to explore the down-dip extension of the Copperstone Zone and resulted in an intercept of 15 feet @ 5.1 g/t Au.  This complements the historic results shown by DU4-41, CUDH-04-25 and CUDH-04-26 by extending D zone mineralization down-dip by approximately 75 feet, and confirms continuity along strike.

KER-17U-05 was designed to test continuity between two historic holes and resulted in an intercept of 10 feet @ 7.9 g/t Au. This confirms historic intercepts along strike in D zone mineralization previously indicated by CUDH-04-25,  and DU4-41, and extends intervals down dip by approximately 35 feet.

KER-17U-06 was designed to both confirm an historic drill hole interval and test an area between two historic holes.  This resulted in two separate intervals of 20 feet @ 8.6 g/t Au and 21 feet @ 3.1 g/t Au.  The first interval confirms continuity of grades and thickness along strike as it intersects an area between intervals reported in DU4-41 and CUDH-04-25. The second interval reported confirms continuity in a lower lens of D zone mineralization defined by intercepts in CUDH-04-26.

Figure 2.  730 Access Drilling Area Cross Section View (CNW Group/Kerr Mines Inc.)

650 Access

KER-17U-08 was designed to test the up-dip extension of this portion of the D zone and resulted in an intercept of 7.1 feet @ 4.8 g/t Au. This result is encouraging as it provides new up-dip potential of this area which has existing access for mining.

KER-17U-11 was a zone confirmation hole and was intended to fill an area between historic holes and resulted two intercepts of 13 feet @ 6.2 g/t Au. and 9 feet @ 5.4 g/t Au.  The first interval is 140 feet from the that reported in DU4-51, extending continuity of Copperstone mineralization in the D zone along strike by 30 feet. In addition, the second interval is 60 feet from that reported in DU5-64, and confirms down-dip continuity of D zone mineralization in the Copperstone Zone.

KER-17U-12 was designed to confirm previous results and  resulted in 32 feet @ 16.2 g/t Au while increasing the historic zone.  This interval is 15 feet from and confirms the grade results reported in DU5-64. In addition, it confirms down dip continuity of D zone mineralization being 115 feet from reported intervals in DU4-51. Furthermore, it confirms continuity along strike being 75 feet from reported intervals in DU5-56.

Figure 3. 650 Access Drilling Area Cross Section View (CNW Group/Kerr Mines Inc.)

 

Table 1.  Selected Drill Results

Hole  ID

From

To

Interval*

Interval*

Gold

ft

ft

ft

m

g/tonne Au

KER-17U-04

80.0

95.0

15.0

4.6

5.1

includes

84.5

95.0

10.5

3.2

5.7

KER-17U-05

112.0

122.0

10.0

3.0

7.9

includes

114.0

122.0

8.0

2.4

9.0

KER-17U-06

83.0

103.5

20.5

6.2

8.6

includes

83.0

95.5

12.5

3.8

12.9

and

147.5

168.5

21.0

6.4

3.1

includes

154.0

168.5

14.5

4.4

3.2

KER-17U-08

19.0

26.1

7.1

2.2

4.8

includes

19.0

23.0

4.0

1.2

8.1

KER-17U-11

48.0

61.0

13.0

4.0

6.2

includes

48.0

58.5

10.5

3.2

7.6

and

197.5

206.5

9.0

2.7

5.4

includes

200.0

206.5

6.5

2.0

7.2

KER-17U-12

153.0

185.0

32.0

9.8

16.2

includes

163.0

185.0

22.0

6.7

22.9

* not true width

 

 

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., who is 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