CFI Announces Encouraging Assay Results from the First Two Diamond-Drill Holes Completed on the Director Vein Including One Hole Having an Average Assay of 80.12% CaF2 over 3.95 Metres Down Depth
ST. JOHN'S, NEWFOUNDLAND AND LABRADOR -- (Marketwire) -- 03/12/13 -- Canada Fluorspar Inc. (TSX VENTURE:CFI) ("CFI" or the "Company") is pleased to announce encouraging assay results from its Phase 1 diamond drilling program along the northern extension of the Director Vein. The first two drillholes are located approximately 500 metres and 315 metres north, respectively, of Aluminum Company of Canada's ("Alcan") old mine workings of the Director Vein. Both drillholes, collared with azimuths of 054 degrees (GN) and inclinations of -60 degrees, intersected the Director mineralized structure and returned assay values of 80.12 % CaF2 over 3.95 metres in hole DS-13-100 and 51.94% CaF2 over 13.39 metres in hole DS-13-101.
Lindsay E Gorrill, CEO of Canada Fluorspar Inc. stated, "It is significant to note that the average grade of DS-13-100 is approximately double that of the Tarefare Vein for the same width, and DS-13-101 has a higher grade and is more than double the width of the Blue Beach North Vein. We have now moved to the south extension of the Director Vein where the company announced success in its trenching program in 2012."
CFI has received assay results for samples collected from drillholes DS-13-100 and DS-13-101 located along the northern extension of the Director Vein. The two drillholes are 185 metres apart and were drilled from west to east intersecting the Director Vein structure, which trends north-northwest and dipping steeply from east to west. The mineralized structure has been intersected approximately 450 metres down the drill hole (375 metres vertically from surface) and 70 metres below the nearest Alcan workings (290m Level). The drill holes confirm that the Director Vein in this area extends well below the old Alcan workings and extends to the north of the old Alcan workings.
The following table details the results of the first two drillholes completed by CFI on the Director Vein to the north and below the old Alcan workings.
2013 Diamond-Drill Hole Assay Results Canada Fluorspar Inc. - St. Lawrence Project, NL Drillhole DS-13-100 Sample No. From (m) To (m) Length (m) % Ca F2 65068 404.20 405.00 0.80 78.89 65069 405.00 406.00 1.00 74.98 65070 406.00 406.85 0.85 81.24 65071 406.85 407.20 0.35 63.27 65072 407.20 408.15 0.95 91.79 Drillhole DS-13-101 Sample No. From (m) To (m) Length (m) % CaF2 65078 462.30 463.00 0.70 39.69 65079 463.00 464.00 1.00 65.52 65080 464.00 465.00 1.00 49.30 65082 465.00 466.00 1.00 48.68 65083 466.00 467.00 1.00 55.33 65084 467.00 467.91 0.91 44.50 65085 467.91 468.82 0.91 81.06 65086 468.82 469.79 0.97 61.82 65087 469.79 471.00 1.21 24.77 65088 471.00 472.00 1.00 22.44 65089 472.00 472.41 0.41 38.37 65090 472.41 473.41 1.00 84.55 65091 473.41 474.26 0.85 85.43 65092 474.26 475.13 0.87 37.62 65093 475.13 475.69 0.56 29.53
Assays on these trenches were carried out at SGS Lakefield Laboratories ("SGS") of Lakefield, Ontario, using the Ion Selective Electrode method to determine the fluorite content in the low-grade samples and the Dual Calcium method for samples expected to contain high-grade values (i.e., those with significant visible fluorspar in the drill core).
Quality Assurance and Quality Control ("QA/QC")
Check assay work by CFI includes insertion of duplicate samples and blanks with regular batches of mineralized samples of drill core. QA/QC work is also done at SGS, and results are reviewed and verified by CFI personnel. An independent geological consultant (Qualified Person) has submitted additional samples collected from the drill core for analyses.
Phase 1 of the current exploration program is designed to assess the northern extension of the Director Vein structure. The two drillholes with assay results to date have shown that the fluorspar mineralization at the Director Vein extends further along strike and at depth from the old Alcan workings.
Historic mining operations by Alcan on the property produced in excess of 4.2 million tonnes of fluorspar during a 44 year continuous production from 1942 to 1977. Production resumed in 1986 and continued until 1991, when St. Lawrence Fluorspar Limited reopened the nearby Blue Beach North Mine and processed 440,000 tonnes of fluorspar ore from small open pits, one of which was located in a surface pillar at the Director Mine near the main shaft.
Initial exploration information regarding the 2013 exploration program at Director Vein was included in the Company's press release dated January 16, 2013.
To date, four additional drill holes have been completed in Phase 1 of the 2013 exploration program. Assay results from these holes are pending.
Historic exploration data indicate that there are more than forty mineralized veins within the CFI property. The three prominent vein structures, however, are the Director Vein, Blue Beach North Vein, and the Tarefare Vein. Probable Reserves of the Blue Beach North and Tarefare veins total approximately 5.4 million tonnes at an average grade of 39.8% CaF2. These Mineral Reserves have been outlined to a vertical depth of 300 metres below the surface, but fluorspar mineralization extends further at depth. The key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, as well as other relevant information, including data verification, with respect to the Blue Beach North and Tarefare veins can be found in a NI 43-101 Technical Report prepared by the Roscoe Postle Associates Inc. dated April 29, 2011, which has been filed by the Company on SEDAR (www.sedar.com).
About the Company
The Company is a specialty mineral resource company engaged in the development of fluorspar deposits located in St. Lawrence, Newfoundland, Canada, and is reactivating the existing Blue Beach North and Tarefare underground fluorspar mines, expanding the existing mill, constructing a new, environmentally-sound Tailings Management Facility through Newspar, which is a 50/50 joint venture with Arkema. The Company is also building a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product.
Mr. James H. Reeves, Senior Geologist with CFI, who is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Properties, reviewed and approved the technical content of this news release. The information regarding historic production has not been verified by the Company and is provided for reference only.
Material results of the Director Vein exploration program have been disclosed in the Company's press releases dated March 1, 13 and 30, 2012 and April 16 and 24, 2012.
For more information please see: www.canadafluorspar.com.
Cautionary Note and Forward-Looking Statements
This press release contains forward-looking statements which include, but are not limited to: resource estimates, proposed mining techniques required to construct and produce at expected levels, anticipated timing for completion of metallurgical testing, the commencement of the drilling program, current development and operating objectives and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development including: loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities, the estimated timeline for the development of the project at St. Lawrence, the supply and demand for, and the level and volatility of the price of fluorspar, the assumptions on which resource estimates are based, the receipt of necessary permit, market competition, ongoing relations with employees and impacted communities, and general business and economic conditions. Should one or more of the risks or uncertainties involved in forward-looking statements materialize, or should the assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements are qualified entirely by this cautionary statement and are given only as at the date of this press release. The Company disclaims any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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.
Canada Fluorspar Inc.
President and CEO