Drilling significantly expands L65 deposit at Pine Point
Pine Point Mining Limited (TSX VENTURE:ZINC) (the “Company“) is pleased to announce that the portion of exploration designed to expand the existing resource at the L65 open pit deposit at its Pine Point project in the Northwest Territories has significantly expanded the potential size and grade of the deposit. A total of 56 holes for a total of 5,906 metres have been drilled at L65 so far in 2017, in addition to the 29 holes previously drilled by former operators Cominco and Tamerlane.
“It is encouraging that the drilling to date at L65 has intersected grades well above the average grade of the deposit while at the same time expanding the size significantly. L65 had the lowest grade of the 10 deposits included in our Preliminary Economic Assessment released in April, and these higher assays in the western zone should help with the economics of the project,” says Jamie Levy, President and Chief Executive Officer of the Company. “It should be noted that L65 is just the first of several deposits which have the potential for expansion.”
Assays have been received for the first 38 drill holes. Several L65 holes have intersected significant mineralization as listed in Table 1 and a complete listing of all assays received to date is attached. (click here for complete composites).
The L65 deposit area is located in between four deposits previously outlined by Cominco: the M62/63, M64, M67 and K68 deposits (click here to see map). The current resource or past production of the deposits are listed in Table 2.
The program has been successful in extending the deposit to the west towards the K68 and M67 deposits, and the mineralization now extends for over 1,300 metres along strike as shown on the attached map. The mineralization is separated into two areas by a zone of weak mineralization into a smaller eastern zone and a larger western zone. It now appears that the L65 zone mineralization is part of a continuous system connecting all four deposits (M62/63, M64, M67 and K68) although areas of weaker mineralization exist between deposits.
Mineralization at L65 remains open in several directions (see map):
- The area north of holes 29, 35, 36, 37, 40, 41, 42, 53 and 54 and south of holes 46, 47 and 48 remains open including the area south of Cominco hole 6120 that intersected 1.57% lead and 13.69% zinc over 8.23 metres. The two K66 holes drilled north of 6120 were unsuccessful in extending the mineralization to the north. The open area extends for 600 metres along strike and is 150 to 200 metres wide. Assays for holes 40, 41, 42,46, 47, 48, 53, and 54 are pending.
- The area south of holes 51 and 52 remains untested towards the M67 deposit.
- The connection to the K68 deposit was tested by holes 50 and 51 (assays pending). Of note is Cominco hole 3192 located at the west edge of the K68 zone. The hole assayed 3.3% lead and 12.9% zinc over 7.62 metres. The hole is separated from the main deposit area by two low grade holes and Cominco never tested to the east of 3192.
- A large area southeast of holes 19 and 23 is untested.
- The area south of hole 28 is open.
- The area east of hole 12 remains open towards the M62/63 and M64 pit. The mineralization may swing to the M64 pit rather than towards M62/63.
Almost all the gaps and open areas noted here are underlain by swampy ground and future drilling will have to await the 2018 January to March winter drill program. A new resource will be calculated for the deposit at after the next phase of drilling.
The L65 drilling was part of a larger program which has so far included a total of 111 drill holes completed by the Company in 2017 at Pine Point. Drilling has been suspended to allow crews to get caught up with a backlog of drill core waiting for logging and assaying, and is expected to continue in September. The other main focus of drilling has been confirming historical deposits in order to include them in the upcoming feasibility study. Results will be released when a significant number of additional assays have been received.
Pine Point Mining runs an industry standard QA/QC program of blanks, standards and duplicates to ensure quality control.
Stanley Clemmer, a Qualified Person under NI 43-101, reviewed and approved the scientific and technical information presented in this press release.
About Pine Point Mining Limited
Pine Point Mining acquired a 100% interest in the Pine Point lead-zinc project in December, 2016. Since that time a positive Preliminary Economic Assessment (PEA) on the project showing a robust mining operation which, over a 13-year mine life, would have an after-tax net present value of $C210.5 million and internal rate of return of 34.5%, with a payback of 1.8 years. The study assumed a zinc price of US$1.10 per pound and a lead price of US$1.00 per pound, and used an exchange rate $C:$US of 0.75. The PEA was prepared by JDS Energy and Mining and is based on a mineral resource estimate for the Pine Point project published as a National Instrument 43-101 technical report with an effective date of April 18, 2017. To view further details of the study, please see the press release of April 18, 2017.
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Darnley Bay expects are forward-looking statements. Although Darnley Bay believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Darnley Bay, investors should review registered filings at www.sedar.com.
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.
Pine Point Mining Limited
President and Chief Executive Officer
Renmark Financial Communications Inc.
(416) 644-2020 or (514) 939-3989
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