TMI Sharpens its Focus on Gold and Provides Update on Exploration & Business Development Progress
April 26, 2018, Vancouver, British Columbia—TriMetals Mining Inc. (TSX: TMI), (“TMI” or “the Company”), is pleased to announce that exploration and permitting activities have commenced for the field season at its flagship Gold Springs Project in the western U.S.A. and that several site visits with prospective strategic partners have been completed at the Escalones copper-gold project in Chile.
- Positive rock chip sampling results from the South Jumbo and new Homestake targets at TMI’s Gold Springs Project;
- Field exploration work and permitting activities have commenced at the Gold Springs Project; and
- Site visits to Escalones Project completed with potential strategic partners.
Eric Edwards, President and CEO of TMI, said, “At the Gold Springs Project, we have commenced our field exploration activities for 2018, including surface sampling, mapping, refining the resource model and continuing the structural analysis to connect the North Jumbo and South Jumbo targets. Our long-term cultural assessment and permitting activities initiated last year are continuing in order to satisfy requirements for future district-wide permits”.
“In summer 2018, we will focus our program on the 5.5 kilometer long Jumbo Trend, examining the structural offsets and lithological complexities to determine potential continuity of the north and south resources areas. We are working toward our goal to identify 3.0 million oz of gold in Jumbo mineral resources.”
Turning to the Escalones Project, Mr. Edwards continued: “We are pleased with the level of interest from prospective, high-quality potential partners for our Escalones copper-gold project. The current exciting copper market has provided a window of opportunity to TMI to seek a value-accretive partnership from a cross section of mid-tier producers and explorers with experience, teams and skills in the South American copper belt. While the process of evaluation is ongoing, the positive response has reinforced our view of the potential at Escalones and that the project can be more rapidly advanced and contribute value to TMI shareholders by combining efforts in a potential partnership.”
In other matters, regarding the international arbitration case on the Company’s former Bolivian asset, TMI anticipates that a ruling of the International Court of Arbitration may be issued within the next few months. Following the delivery of the ruling, Bolivia will have two levels of appeal process available, and those appeals could take up to two years after receiving the ruling. Mr. Edwards commented, “We remain optimistic of a favorable outcome.”
Gold Springs Project Exploration Update
Encouraging results were received from a surface sampling program completed at the end of 2017 on the South Jumbo and the Homestake Target, newly acquired in 2017. See Appendix 1, 2, 3 following.
The Gold Springs Project straddles Nevada and Utah, located approximately 120 air km northeast of Las Vegas and 75 air km northwest of Cedar City, Utah.
The exploration staff is evaluating past drilling and the recent surface sampling results to better understand the controls for the higher-grade gold mineralization and to refine the geologic model to optimize future drill programs. These programs would be designed to locate additional + 1 g/t gold mineralization and to expand the existing resources at the North and South Jumbo targets.
In addition to the Jumbo targets, sampling has confirmed high-grade gold mineralization at the newly acquired Homestake Target. These results are being incorporated into the geologic mapping in order to develop priority drill targets at Homestake. The scope of the exploration program and any drilling for 2018 will be subject to availability of financing.
Gold Springs Project – South Jumbo Target
The South Jumbo Target lies along the 5.5 km long Jumbo Trend, within the eastern portion of the Gold Springs Project in Utah.
TMI has identified at the South Jumbo Target measured resources of 2.1 million tonnes at 0.64 g/t gold and 6.91 g/t silver; indicated resources of 3.2 million tonnes at 0.58 g/t gold and 6.24 g/t silver; and inferred resources of 1.4 million tonnes at 0.50 g/t gold and 5.27 g/t silver. Please refer to the technical report titled: “Amended Technical Report and 2017 Mineral Resource – Gold Spring Project” dated July 27, 2017 and with an effective date of March 29, 2017 which has been filed at www.SEDAR.com (the “Gold Springs Technical Report”) for important Qualified Person, technical and other disclosures.
South Jumbo resource is a shallow mineralized zone which has been tested to a depth of 150 meters (“m”) and over a north-south strike length of 600 m. The resource remains open at depth and along strike in both directions.
The rock chip sampling demonstrates the mineralization can be traced along strike for almost a kilometer beyond the current defined resource before being obscured by post mineral cover.
The 178 surface samples were designed to test for surface projections of the higher-grade material seen in the 2016 and 2017 drill results at South Jumbo, and to test for projections of this material into areas outside of the defined resource. The sampling was successful in achieving both these goals with the rock chip sampling results highlighted by high-grade values as high as 53 g/t gold with 106.9 g/t silver and 35.4 g/t gold with 316.0 g/t silver as well as demonstrating evidence of mineralization across the entire 1.5 km of exposed strike length at South Jumbo. Multiple samples of greater than 10 g/t gold highlight the potential for high-grade zones within a broad, lower-grade shell that was identified from drilling in 2016 and 2017 (samples ranged from <0.005g/t gold and <0.5 g/t silver to 53.0 g/t gold and 316.0 g/t silver).
It will require follow-up drilling to test that the high-grade gold and silver mineralization is continuous from surface to depth and to expand the current defined resource.
Gold Springs Project – Homestake Target
Surface sampling results from the Homestake Target confirm the high-grade nature of the gold mineralization and its continuation from the veins into the surrounding breccia and stockwork zones. Gold mineralization has now been traced for 1.8 km along the north-south strike with some portions projected under post- mineral cover.
The surrounding breccia and stockwork zones are exposed over an east-west width of 400 m before their projection under post-mineral cover. A total of 75 samples were collected over the 1.8 km strike of the Homestake system. This rock chip sampling produced several positive gold and silver values which included 62 g/t gold with 82 g/t silver and 8.0 g/t gold with 746.6 g/t silver in areas of brecciation outside of the veins (samples ranged from <0.005g/t gold and <0.5 g/t silver to 53.0 g/t gold and 316.0 g/t silver).
The surface sampling program was the first step in scoping an exploration program and drill targets for the Homestake Target, which is located 1 km northeast of the Grey Eagle Target where TMI has defined measured resources of 2.8 million tonnes at 0.65 g/t gold and 7.26 g/t silver; indicated resources of 4.3 million tonnes at 0.59 g/t gold and 7.11 g/t silver; and inferred resources of 0.9 million tonnes at 0.43 g/t gold and 6.37 g/t silver. Please refer to the Gold Springs Technical Report for important Qualified Person, technical and other disclosures.
Escalones Copper Project, Chile
In February 2018, TMI initiated a program to seek a strategic partner to advance the Escalones Project towards feasibility. The Company’s strategy is to a structure a strategic partnership by retaining a mineral royalty, a minority stake and/or an equity position in the partnership to share in the future success of the Escalones Project.
The Escalones Project is located 35 km east of Codelco’s El Teniente Mine, the largest copper underground mine with one of the largest copper reserves in the world. The Escalones Project was internally discovered by TMI through greenfield exploration work.
An Amended Technical Report prepared by Hard Rock Consulting, LLC titled “Resource Estimate on the Escalones Porphyry Copper Project” and dated July 11, 2014 with an effective date of June 28, 2013 (the “Escalones Technical Report”) stated that the project has:
- Indicated Resources of 232.6 million tonnes at average grades of 0.31% copper, 0.07 g/t gold, 0.66 g/t silver, and 0.006% molybdenum, containing approximately 1.6 million pounds of copper, 0.5 million ounces of gold, 4.9 million ounces of silver, and 31.9 million pounds of molybdenum, and
- Inferred Resources of 527.7 million tonnes at average grades of 0.34% copper, 0.04 g/t gold, 0.85 g/t silver, and 0.007% molybdenum, containing approximately 4.0 million pounds of copper, 0.6 million ounces of gold, 14.4 million ounces of silver and 79.5 million pounds of molybdenum.
Exploration work on Escalones was halted by the Company in 2014 due to low copper prices. Please refer to the Escalones Technical Report available on the Company’s website and on www.SEDAR.com for important Qualified Person, technical and other disclosures.
TriMetals Mining Inc. (TSX: TMI and OTCQX: TMIAF) is a growth-focused mineral exploration company creating value through the exploration and development of the near-surface Gold Springs gold-silver project in mining-friendly Nevada and Utah, U.S.A.
The Company’s Class B shares are listed on the Toronto Stock Exchange under “TMI.B”. Note that the Class B shares have no interest in the properties or assets of the Company other than a collective entitlement to 85% of the net cash after expenses, if any, received by TMI from award or settlement in relation to the Company’s subsidiary’s arbitration proceeding against Bolivia.
Assay Method for Surface Sampling Program
TMI Assays were performed by Bureau Veritas Mineral Laboratories, an ISO 9001:2000 Certified laboratory in Sparks, Nevada. Gold was analyzed by fire assay with an AAS finish, with higher-grade samples being re-assayed by fire assay with a gravity finish. All other elements were analyzed by a four-acid leach ICP method.
The Qualified Person on the Gold Springs Project is Randall Moore, Executive Vice President of Exploration – North America for TMI and he has reviewed and approved the content of this news release. Mr. Moore has more than 40 years of mineral exploration experience and is a Professional Geologist and Registered Member of the Society of Mining, Metallurgy, and Exploration.
Certain statements contained herein constitute “forward-looking information” under applicable Canadian securities laws (“forward-looking statements”). Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “continue”, “target”, “indicates”, “strengthening”, “process”, “will” and similar expressions. Interpretations of exploration results, including the strength of mineralization, are also forward-looking statements. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations if known and unknown risks or uncertainties affect our business or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, risks of the mineral exploration industry which may affect the advancement of the Gold Springs project, including possible variations in mineral resources, grade, recovery rates, metal prices, capital and operating costs, and the application of taxes; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, changes in project parameters, including water requirements for operations, as plans continue to be refined; regulatory, environmental and other risks of the mining industry more fully described in the Company’s Annual Information Form and continuous disclosure documents, which are available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the continuing support for mining by local governments in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold Springs project; execution of the Company’s existing plans and further exploration and development programs for Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, TMI assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this press release describe the Company’s expectations as of the date hereof.
President & CEO
Appendix Figure 1: Rock Chip Sampling Results at Homestake Target, Gold Springs Project, Nevada
Appendix Figure 2: Rock Chip Sampling Results at South Jumbo Target, Gold Springs Project, Utah
Appendix Figure 3: Gold Springs Plan Map Showing Soil Sampling Areas and Z-Axis Tipper Electromagnetic (ZTEM) Anomalies at 375 m below surface