TORONTO, ONTARIO–(Marketwired – Sept. 8, 2016) – Rupert Resources Ltd. (“Rupert” or the “Company“) (TSX VENTURE:RUP) carried out a summer drilling and exploration campaign on the permitted Pahtavaara gold mine in Northern Finland and last week exercised its option to acquire the mine, mill and exploration permits (see the Company’s March 17, 2016, June 9, 2016 and Aug 30, 2016 press releases).
“The drilling success we have seen at the west end of the mine is now complimented by the high grade intersection in the east along what we are calling the new North Flank which is located some 200m from existing ramp development underground,” said Brian Hinchcliffe, Rupert’s President and CEO.
The Company announces the results of assays returned from 8 holes (1253m), including holes 116011 in a new discovery in the northeast of the mine, which contained abundant fine visible gold and returned 432.0 grams per ton of gold (“g/t Au“) over 1.0m at a depth of 136-137m, and 116007 in the west of the mine (Karoliina) which intersected 7.3 g/t Au over 4.0m at a depth of 145-149m. Two follow-up drill holes encountered visible gold in area, but assays have not yet been received. Eleven of 20 drill hole results have been received from the 3023m, 20 hole summer drilling campaign designed to test various areas in the Pahtavaara open pit and underground mine areas and to test “wildcat” targets.
The second phase of exploration has begun, with drilling, chip sampling of open pits, trenches, and underground horizons, IP geophysics, soil sampling, and till work either underway or soon to be implemented.
|116011||North Flank East||39.8||-66.5||7505098||3475202||251.5||136||137||1||432|
No upper cut-off grade was applied. Unless specified, true widths (TW) cannot be determined from the information available. Holes 116015 and 116014 did not intersect their target due to deviation; holes 116004, 8, 9 did not return significant assays.
The 116007 intersection of 7.3 g/t Au over 4.0m is located 29m west of previously-drilled hole 114809 that returned 8.1 g/t Au over 5.0m, and 44m below and west of the previously released hole 116005 that returned 32.74 g/t Au over 5m, including 159.4 g/t Au over 1.0 m.
The 116011 intersection of 432.0 g/t Au over 1.0m is located 16.5m below previously drilled hole 105176 that returned 52.1 g/t Au over 1.0 m. These intersections are located along the North Flank East zone within a 400m gap that is a newly-recognized limb of a large fold structure, the south limb of which constitutes the vast majority of mining to date. The North Flank West has not been drilled. They are separated by an area of mining where the fold is evident on both sides and where an open pit has been mined. The 432.0 grams per ton of gold over 1.0m contained abundant coarse visible gold in a strongly sheared, dolomite veined rock, is surrounded by intersections and located 200m from existing mine development. The hole also intersected 4.8 g/t Au over 2.0m at 65-67m (including 7.8 g/t Au over 1.0m) in a separate zone and is notable for its relatively shallow depth.
Next phase of exploration
An infill drilling campaign of 27 surface holes has now commenced on the Karoliina zone on reduced 25m centres to delineate new potential blocks. In addition, a program of IP, soil sampling is planned over the remainder of the year to define new areas of potential underground and near surface mineralisation close to the mine with RC drilling of till planned over the wider 124km2 Pahtavaara property. Drilling of these targets will commence after conclusion of the Karoliina infill program. Scoping work for new exploration and production development has also commenced with underground drilling expected to commence in Q4 2016.
Intercepts reported above are hosted by amphibolitized komatiites. The principal geologic control in the area is a linear structural corridor that trends east-west, forms multiple folds, and dips steeply to the north on the south side and steeply south on the north side. The mineralized zone identified on Rupert’s property is characterized by hydrothermal alteration and mineralization within various phases of pervasively altered komatiites. Mineralization remains open at depth along the entire zone. The hydrothermal alteration and the Au-bearing veins associated with it are deformed. Because they were competent rocks (massive amphibole), they resisted deformation. They are therefore less deformed than the adjacent talc-chlorite schists. This implies early brittle deformation followed by ductile deformation. Hydrothermal fluids entered by fractures and faults, which explains why some alteration fronts are almost perpendicular to the schistosity.
The Pahtavaara gold deposit is hosted by the Sattasvaara komatiites. There are three major rock types that have been intercalated with one another; amphibole-chlorite schist, biotite schist and coarse-grained amphibole rocks with associated quartz-barite lenses, veins and irregular pods.
Talc-carbonate veins with pyrite are common in all lithologies, but particularly in the biotite schist. Amphibole chlorite schists are the dominant rock type outside the Pahtavaara alteration zone. They represent the regional greenschist facies metamorphic mineral assemblage and therefore correspond with the most typical and least altered rock type of the Sattasvaara komatiites.
Gold occurs mostly as free gold, a smaller part is associated with magnetite.
Historical resources and reserves
The previous owners, Lappland Goldminers disclosed a NI 43-101 resources and reserve estimates dated 1 January 2013. Based on a cut-off grade of 0.5 g/t Au, Measured Mineral Resources totaled 618kt at an average grade of 1.97 g/t Au and contained 39koz of gold. Indicated Mineral Resources totaled 656kt at an average grade of 2.16 g/t Au and containing 45koz of gold. An additional 1,482 thousand tonnes at an average grade of 1.77 g/t Au containing 84koz were categorised as Inferred Mineral Resources. In the same report Proven Mineral Reserves were derived from Measured Mineral Resources and Probable Mineral Reserves were derived from Indicated Mineral Resources. Inferred Mineral Resources were not included in the mineral reserve estimate. Dilution of 25%, ore losses of 5%, and total projected onsite operating costs of EUR31.62/t ore milled were used. Based on the gold price at the time of approximately US$1,650/oz, an exchange rate of 1.3556 US$/EUR and assuming 87% gold recovery, the cut-off grade was calculated to be 1.0 g/t Au. On this basis Proven Reserves were reported as 676kt grading 1.62g/t Au and Probable Resources as 721 grading 1.77g/t Au for total contained gold of 76koz. A qualified person has not done sufficient work to classify these historical estimates as current mineral resources or mineral reserves and Rupert is not treating the historical estimate as current mineral resources or mineral reserves.
Subsequent to the aforementioned report 16,008m of diamond drilling was completed by Lappland Goldminers in 2013 and 2014, and 3,023m by Rupert in 2016. Revised estimate calculated using: more recent estimates of exchange rate and gold price, drilling from 2013 to 2016, and a new survey to account for depletion from production totaling 16,847koz in 2013 and 2014, will be calculated and disclosed in due course.
Review by Qualified Person, Quality Control and Reports
In compliance with National Instrument 43-101, Mr. Mike Sutton, P.Geo. is the Qualified Person who supervised the preparation the scientific and technical disclosure in this news release. All samples are assayed by CRS/Actlabs Finland at Takatie 6, 90440 Kempele Finland, who have ISO9001 sample prep and an ISO 17025 lab certification. All core is under watch from the drill site to the core processing facility. Samples are assayed with LeachWell process. The Company’s QA/QC program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at one per 20 samples. Approximately five percent (5%) of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99%.
Rupert is a Canadian based gold exploration and development company that is listed on the TSX Venture Exchange under the symbol “RUP”. The Company has exercised an option to acquire the Pahtavaara gold mine, mill and exploration permits and concessions located in the Central Lapland Greenstone Belt in Northern Finland (see the Company’s August 30, 2016 press release). The purchase price for the acquisition is US$2,500,000, structured as a US$500,000 cash payment upon the exercise of the option (less the US$100,000 deposit payments already made). A 1.5% production royalty, capped at US$2,000,000, is also payable on go-forward revenues generated when gold production resumes. The Company also holds a 100% interest in the Gold Centre property, which consists of mineral claims located in the Balmer Township, Red Lake Mining Division of Ontario.
Neither the 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.
Cautionary Note Regarding Forward Looking Statements
This press release contains statements which may constitute “forward-looking statements”, including statements with respect to those that address potential quantity and/or grade of minerals, potential for minerals and statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities, operating performance of the Company and with respect to the Pahtavaara gold mine, mill and exploration claims during the six month option period. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the general risks of the mining industry, as well as those risk factors discussed or referred to in the Company’s annual Management’s Discussion and Analysis for the year ended February 29, 2016 available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
National Instrument 43-101, Standards of Disclosure for Mineral Projects
The above historical mineral resource estimate used “Measured Mineral Resource”, “Indicated Mineral Resource”, “Proven Mineral Reserves”, “Probable Mineral Reserves” and “Inferred Mineral Resource”, which are categories set out in National Instrument 43-101, Standards of Disclosure for Mineral Projects.
This news release or other disclosure provided by the Company may use the terms “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. While these terms are recognized and required by Canadian regulations (under National Instrument 43-101, Standards of Disclosure for Mineral Projects), the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted to reserves.
In addition, “Inferred Mineral Resources” have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian securities legislation, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, although they may form, in certain circumstances, the basis of a “preliminary economic assessment” as that term is defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. U.S. investors are cautioned not to assume that part or all of an Inferred Mineral Resource exists, or is economically or legally mineable.