VR Resources Ltd. (TSX.V: VRR, FSE: 5VR; OTCQB: VRRCF), the
"Company", or “VR”, is pleased to provide an update on its ongoing
exploration of the multi-phase carbonatite complex and IOCG breccia
system at its Hecla-Kilmer property (“H-K”) located in Northern
Ontario:
- New data from
the re-assay of sample pulps from drill hole HK20-002 confirm rare
earth element (“REE”) concentrations exceeding 0.5% TREO (total
rare earth oxide) over widths exceeding 50 m in high density
mineralization zones within hydrothermal breccia.
- The key logistical aspects for the
follow-up drill program have been finalized and mobilization is
currently planned for late August.
From VR’s CEO Dr. Michael Gunning: “It is an
important step forward to see that the re-assay of our sample pulps
for Hole 2 using a sodium peroxide fusion designed to optimize the
analytical detection for all rare earth elements confirms their
presence in the high density breccia zones intersected last fall.
The >0.5% TREO concentrations meet the cut-off grade commonly
applied to rare earth element mineral deposits, and the > 50 m
widths attest to the scale that the H-K hydrothermal system is
working at.
Beyond the details provided in the next section,
I encourage readers to appreciate that the REE mineralization shown
in Figure 3 at 580 m depth in Hole 2 is similar to
that which occurs at surface in Hole 4 and shown in Figure
4; the explicit vertical extent of REE mineralization
between the two drill holes speaks to the volume potential of the
overall copper-gold IOCG hydrothermal breccia system at H-K.
Looking forward, the point of Figure
1 is to illustrate the obvious vector for follow up
drilling this fall, towards the center of the 400 x 800m, 3.5 mGal
gravity anomaly given the correlation of the REE mineralization to
high density profiles in XRF data. That said, I remind our
shareholders of the additional correlation in our XRF drill hole
density data to local copper mineralization, which we illustrated
in the previous news release. To be certain, follow-up drilling
this fall will target the center of the large density anomaly to
evaluate the potential for significant copper and gold within the
fluorite-apatite-carbonate hydrothermal breccia system at
Hecla-Kilmer for which an IOCG chemical affinity is clear in our
data, including rare earth elements.
We have been working with the same key service
providers from last year’s program with regard to camp, helicopter
and drill for the past three months, and we are narrowing in on
mobilization for late August. The goal is to replicate the strong
daily production and overall cost efficiency of the 2020 program.
As you can see in Figure 1, our framework for this
follow-up drilling is for up to six holes and up to 3,000 m in
total, which we anticipate to take 4-6 weeks to complete based on
production last year.
We look forward to providing further updates as
our exploration at H-K advances.”
REE Data and Mineralogy
REE mineralization was intersected in two drill
holes in 2020, HK20-002 and 004, located on the eastern margin of a
large gravity anomaly identified subsequent to drilling by a winter
survey in March, 2021. The mineralization correlates with high
density zones in XRF density profiles and occurs within
potassic-altered hydrothermal breccia which comes to surface at the
top of Hole 4, and in sodic alteration 550 m below surface at the
bottom of Hole 2. Composite data for Hole HK20-002 are summarized
in the table below.
Drillhole |
From (m) |
To (m) |
Length(m) |
TREO(1)(%) |
MHREO(2)(%) |
MH-T(3) |
Li2O(ppm) |
Nb2O5(ppm) |
Ta2O5(ppm) |
ThO2(ppm) |
HK20-002 |
159.60 |
183.00 |
23.40 |
0.628 |
0.060 |
11.3 |
% |
42.95 |
51.41 |
9.15 |
153 |
|
553.00 |
606.00 |
53.00 |
0.514 |
0.048 |
9.1 |
% |
12.99 |
123.64 |
17.08 |
401 |
including |
566.65 |
585.00 |
18.35 |
0.666 |
0.066 |
9.4 |
% |
11.39 |
141.02 |
18.76 |
510 |
(1) TREO is
the summation of Ce2O3 + La2O3 + Pr2O3 + Nd2O3 + Sm2O3 + Eu2O3 +
Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 +
Y2O3 (2) MHREO
is the sum of the middle and heavy rare earth oxides (Sm2O3 + Eu2O3
+ Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 +
Y2O3) (3) MH-T
is MHREO divided by TREO, expressed as a percent.Drill core photos
and corresponding QEMSCAN images (Quantitative Evaluation of
Materials by Scanning Electron Microscopy) are shown for each drill
hole in Figure 3 and Figure 4.
They reveal the differing mineralogy and habit of REE
mineralization within the peripheral high temperature sodic
alteration assemblage in Hole 002 and the more proximal, higher
temperature potassic alteration in Hole 004. The potassic
alteration style which comes to surface in Hole 004 (base of till)
provides a strong chemical vector towards IOCG-type mineralization,
and is the priority target for the drilling planned for this
fall.
Hole 004 will be re-logged and sampled prior to
the planned upcoming drill program in order to provide a complete
characterization of REE mineralization intersected last fall on the
eastern margin of the new gravity anomaly, and to provide a more
complete correlation and calibration of geochemical data with XRF
data, which is already apparent in the two data sets for drill hole
002.
Figure 2 is important. The high
density gravity anomaly is discordant to the magnetic boundaries
evident on the RTP total magnetic intensity map for H-K, and it
overlaps with, but is offset from the center of the MVI anomaly
(total magnetic vectorization inversion) at H-K derived from the
3-D inversion of the high resolution airborne data from 1993. As
such, the high density mineralization at H-K, whether it is from
copper, gold and/or rare earth elements relates to an evolved
hydrothermal fluid that formed after the formation of primary
magnetite during crystallization of the original igneous phases of
the multi-phase alkaline igneous complex, and after secondary
hydrothermal magnetite which itself is related to high temperature
potassic alteration of the extensive, sulfide-bearing,
fluorite-carbonate hydrothermal breccia system that is hosted
within, but is destructive to the primary igneous complex.
Technical Information
Summary technical and geological information for
the Company’s various exploration properties is available at the
Company’s website at www.vrr.ca.
For the first phase of drilling at Hecla-Kilmer
project, VR submitted drill core for Minalyze XRF scanning and sawn
drill core samples for geochemical assay to the SGS Canada Inc.
(“SGS”) laboratory facilities in Sudbury, Ontario, with final
geochemical analytical work done at the SGS laboratory located in
Burnaby, BC., including ICP-MS and ICP-AES analyses for base
metals, trace elements and full-suite REE analysis, and gold
determination by atomic absorption assay. Analytical results are
subject to industry-standard
and NI 43-101 compliant QAQC sample procedures
externally by the Company and internally at the laboratory as
described by SGS.
Technical information for this news release has
been prepared in accordance with the Canadian regulatory
requirements set out in National Instrument 43-101. Justin Daley,
P.Geo., Exploration Manager and Chief Geologist at VR and a
non-independent Qualified Person oversees and/or participates in
all aspects of the Company’s mineral exploration projects, and the
content of this news release has been reviewed on behalf of the
Company by the CEO, Dr. Michael Gunning, P.Geo., a non-independent
Qualified Person.
About Hecla-Kilmer
The Hecla-Kilmer complex is located 35 kms
southwest of the Company’s Ranoke property in northern Ontario. It
is located 23 km’s northwest of the Ontario hydro-electric facility
at Otter Rapids, the Ontario Northland Railway, and the northern
terminus of Highway 634 which links the region to the towns of
Cochrane and Kapuskasing along the northern Trans-Canada Highway
located some 100 km’s to the south.
The H-K property is large. It
consists of 224 mineral claims in one contiguous block
approximately 6 x 7 km’s in size and covering 4,617 hectares. The
property is owned 100% by VR. There are no underlying annual lease
payments on the property, nor are there any joint venture or
back-in interests. There is an industry-standard royalty attached
to the property, including a buy-back provision to VR.
Like the Ranoke property, H-K is located on
provincial crown land, with mineral rights administered by the
provincial Ontario Ministry of Energy, Northern Development and
Mines (MENDM). There are no annual payments, but the MENDM requires
certain annual exploration expenditures and reporting. The property
falls within the Moose Cree and Taykwa Tagamou First Nations
traditional territories.
Hecla-Kilmer (“H-K”) is a multi-phase alkaline
intrusive complex with carbonatite approximately 4 x 6 km’s in size
and emplaced along the western margin of the crustal-scale
Kapuskasing structural zone which bisects the Archean Superior
Craton in northern Ontario. The opportunity for VR is to apply
modern IOCG and carbonatite mineral deposit models and exploration
technologies to H-K for the first time, ever. A shallow, six-hole
diamond drill program was completed in 1970 as part of a regional
base metal exploration program by Ashland Oil and Elgin Petroleum.
One hole was abandoned, and only 854 m were completed in total in 5
holes, all on magnetic highs in the outer concentric zones of the
complex. Selco Exploration Company completed two drill holes in
1981 on peripheral magnetic highs as part of a regional diamond
exploration program, and intersected ultra-basic rocks and breccias
in the outer, concentric zones of the multi-phase H-K complex. A
high resolution airborne magnetic survey was completed in the
region for diamond exploration in 1993, after the aforementioned
drilling.
About VR Resources
VR is an established junior exploration company
focused on greenfields opportunities in copper and
gold (TSX.V: VRR; Frankfurt: 5VR; OTCQB: VRRCF).
VR is the continuance of 4 years of active exploration in Nevada by
a Vancouver-based private company. The diverse experience and
proven track record of its Board in early-stage exploration,
discovery and M&A is the foundation of VR. The Company focuses
on underexplored, large-footprint mineral systems in the western
United States and Canada, and is well financed for its exploration
strategies and corporate obligations. VR owns its properties
outright, and evaluates new opportunities on an ongoing basis,
whether by staking or acquisition.
ON BEHALF OF THE BOARD OF DIRECTORS:
“Michael H.
Gunning”_____________________________Dr. Michael H.
Gunning, PhD, PGeoPresident & CEO
For general information please use the following:
Website: |
www.vrr.ca |
Email: |
info@vrr.ca |
Phone: |
604-262-1104 |
Forward Looking Statements
This press release contains forward-looking
statements. Forward-looking statements are typically identified by
words such as: believe, expect, plans, anticipates, intends,
estimate, and similar expressions or are those which, by their
nature, refer to future events. Forward looking statements in this
release include but are not limited to: “The key aspects for the
follow-up drill program are finalized, with mobilization currently
planned for late August …”, and … “VR evaluates new opportunities
on an ongoing basis, whether by staking or acquisition.”
This news release contains statements and/or
information with respect to mineral properties and/or deposits
which are adjacent to and/or potentially similar to the Company’s
mineral properties, but which the Company has no interest or rights
to explore. Readers are cautioned that mineral deposits on adjacent
or similar properties are not necessarily indicative of mineral
deposits on the Company’s properties.
Although the Company believes that the use of
such statements is reasonable, there can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. The Company cautions investors that any forward-looking
statements by the Company are not guarantees of future performance,
and that actual results may differ materially from those in
forward-looking statements. Trading in the securities of the
Company should be considered highly speculative. All of the
Company’s public disclosure filings are available at www.sedar.com;
readers are urged to review these materials.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in Policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
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