VR Resources Ltd. (TSX.V: VRR, FSE: 5VR; OTCQB: VRRCF), the
"
Company", or “
VR”, announces
that the fall 2021 drill program has been completed at its
Hecla-Kilmer (“H-K”) project in northern Ontario, with 5 holes
completed to target depths for a total of 2,604 m.
Figure 1 shows the four drill
holes completed in 2020 which targeted the northern MVI anomaly
(total magnetic vectorization) at H-K, derived from the 3D
inversion of the high resolution airborne magnetic survey over the
entire H-K complex, and which resulted in the discovery of
significant widths of rare earth element (“REE”) and critical metal
mineralization (see Table 1 below, and
NR-21-17). The five follow-up drill holes which
have just been completed focused on a large and high contrast, 3.5
mGal gravity anomaly that is co-spatial with, but offset from, the
MVI magnetic anomaly, as shown in Figure 1.
- XRF scanning is currently being
done on each drill hole in its entirety in order to better
integrate mineralogy and geochemistry, and to obtain continuous
density and magnetic readings.
- Geochemical sampling of drill core
is also ongoing, and the Company expects to have all mineral and
geochemical data in hand by calendar year-end.
H-K is Confirmed as a new REE and
Critical Metal System in Canada
The Company has also received final geochemical
data from its expanded sampling of drill core from the
2020 drill program at H-K. The new data confirm
the discovery reported in July (see NR-21-17) of
rare earth elements (“REE”) and critical metals, for example,
lithium and niobium, at H-K, hosted in sulfide-bearing carbonatite
dykes, fluorite-carbonate vein breccia and hydrothermal
breccia.
Drill hole HK20-004 from 2020 was re-logged and
sampled prior to the start-up of the current drill program in order
to obtain accurate data using a lithium borate fusion assay
technique designed to optimize the analytical detection for all
rare earth elements. Table 1 below provides the
new data, together with the previously reported data for hole
HK20-002 which was obtained by the same analytical method.
Drillhole |
Status |
From (m) |
To(m) |
Length (m) |
TREO(1) (%) |
MHREO(2) (%) |
MH-T(3) |
Li2O (ppm) |
Nb2O5 (%) |
Ta2O5 (ppm) |
ThO2 (ppm) |
HK20-002 |
Reported |
159.60 |
183.00 |
23.40 |
0.628 |
0.060 |
11.3% |
42.95 |
0.005 |
9.15 |
153 |
HK20-002 |
Reported |
553.00 |
606.00 |
53.00 |
0.514 |
0.048 |
9.1% |
12.99 |
0.012 |
17.08 |
401 |
including |
Reported |
566.65 |
585.00 |
18.35 |
0.666 |
0.066 |
9.4% |
11.39 |
0.014 |
18.76 |
510 |
|
|
|
|
|
|
|
|
|
|
|
|
HK20-004 |
New |
40.30 |
98.40 |
58.10 |
0.38 |
0.04 |
11% |
0.01 |
0.15 |
25.37 |
155 |
including |
New |
56.00 |
83.00 |
27.00 |
0.48 |
0.05 |
12% |
0.01 |
0.17 |
31.06 |
231 |
including |
New |
57.00 |
60.21 |
3.21 |
1.44 |
0.15 |
10% |
0.01 |
0.17 |
25.20 |
438 |
including |
New |
67.23 |
78.00 |
10.77 |
0.35 |
0.04 |
0.11 |
0.01 |
0.27 |
50.12 |
259 |
(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. |
Figure 2 and Figure
3 provide geochemical drill hole strip logs for both
HK20-002 and -004.
The new data from HK20-004
confirm the REE and critical metals intersected in carbonatite
dykes and hydrothermal fluorite-carbonate vein breccia in hole 002.
Key aspects of the new data include:
- Total rare earth oxide
concentrations (TREO) exceed 0.5% TREO over widths greater than 50
m;
- TREO up to 1.44 % over 3.21 m;
- Middle and Heavy rare earth oxides (HREO) of up to 0.15% over
3.21 m;
- Concentrations of the critical metal niobium
of 0.15% Nb2O5 over widths greater than 50m,
including 10.77m at 0.27% Nb2O5; this is a full order of magnitude
greater than the niobium concentrations in carbonatite with REE
mineralization in hole 002;
Figure 4 and Figure
5 have drill core photos and corresponding QEMSCAN images
(Quantitative Evaluation of Materials by Scanning Electron
Microscopy) that reveal the differing mineralogy and habit of REE
mineralization within the peripheral high temperature sodic
alteration assemblage in HK20-002, and the more
proximal, higher temperature potassic alteration that is
near-surface in HK20-004.
From VR’s CEO Dr. Michael Gunning “These new
data from hole 004 last year confirm the REE and critical metal
component of the hydrothermal fluid system at H-K as first
identified in hole 002. The importance of the new data is that the
REE concentrations exceed the cut-off grades commonly used in
mineral resource estimates for REE deposits globally, and niobium
and lithium are not far off, even though these drill hole
intersections are located on what we believe to be the peripheral
margins of the system.”
“The re-logging of drill core from hole 004 in
concert with these new geochemical data make it clear that the
carbonatite dykes (sovite and phoscorite) are key players for the
REE and niobium mineralization in the multiphase complex at H-K,
and potentially for copper and gold as well. The drill core photo
in Figure 3 shows just this; a brecciated,
carbonatite dyke with black REE minerals and semi-massive iron
sulfide which is anomalous in copper and gold.”
“In Holes 002 and 004 from last year, copper,
lithium and REE + niobium mineralization occur in different areas,
at different depths, and in different types of hydrothermal
breccia, carbonatite dykes and fluorite-carbonate veins. Geology
similar to that which hosts the REE + niobium style of
mineralization is evident in at least three of the five drill holes
just completed. We will be able to convey a more accurate picture
for the potential of all three styles of mineralization described
above when we have all of the mineral and geochemical data in hand
later this fall.”
“The two drill hole intersections from 2020 are
200 m apart laterally, and span more than 500 vertical meters
within the hydrothermal breccia system, starting at surface. These
dimensions underscore the scale of the REE mineralizing system at
H-K and its importance to the upside potential of the project.
Further, I want to remind our shareholders that drilling is still
at the very earliest stage at H-K. In addition to waiting until all
data are in hand from the nine holes completed to date in order to
fully understand the potential of mineralization in the northern
MVI and gravity anomaly, we have yet to complete permitted,
first-pass drill holes located on the larger MVI magnetic anomaly
located 2-3 km to the south, overlapping the boundary with the
southern marginal phases of the complex.”
“Overall, H-K has already proven itself as a
REE-bearing hydrothermal system of potential significance to the
current discussions across industry and government alike regarding
the critical metals sector in North America. We look forward to
providing further updates as we receive final data from this
program.”
Background
Hecla-Kilmer (“H-K”) is a large and multiphase
alkaline intrusive complex with carbonatite some 4 – 6 km across.
It is Proterozoic in age, emplaced along the western margin of the
crustal-scale Kapuskasing structural zone which bisects the Archean
Superior Craton in northern Ontario.
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 a scant 854 m were completed in total in the other 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; they intersected ultra-basic rocks and breccias peripheral
to the outer, concentric zones of the multiphase H-K complex. A
regional airborne magnetic survey covering H-K was completed in
1993 for diamond exploration, after the early drilling at H-K; it
provides high resolution detail of a concentrically zoned magnetic
anomaly at H-K.
The opportunity for VR is to be the first
company to apply modern IOCG and carbonatite mineral deposit models
to explore the H-K complex as a whole, and to use new exploration
technologies not previously available when the historic drilling
was done. VR completed the first airborne EM survey over H-K in
June, 2020, using the state-of-the-art VTEM+ system of Geotech Ltd.
Flown at 100 m line spacing over a 6 x 7 km survey block for a
total of 450 line-km, the data provide a high resolution of detail.
The Company also had an independent, 3-D inversion of both magnetic
and EM data completed for improved modeling. Finally, a
ground-based gravity survey covering an area of 1.5 x 3.5 km was
completed in the winter season of 2021, with high-resolution data
generated from 597 stations on an equant grid spacing of 100 m.
The reader is referred to NR-20-08 dated
June 18th, 2020,
for photographs of magnetite-copper-fluorite vein and vein breccia
replacement in core from the historic 1970 drill holes located
around the periphery of the new gravity anomaly delineated by VR,
and gold grains retrieved from drill core rubble. Current
exploration by VR is utilizing the newly acquired geophysical data
to explore for the source of the copper and gold, and the center of
a hydrothermal breccia system within the large carbonatite complex
at H-K.
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.
VR submitted all drill core for Minalyze XRF
scanning and sawn drill core samples from HK20-004 for geochemical
assay to the ALS Global Ltd. (“ALS”) laboratory facilities in
Timmins, Ontario, with final geochemical analytical work done at
the ALS laboratory located in North Vancouver, BC, including ICP-MS
and ICP-AES analyses for base metals, trace elements and full-suite
REE analysis, and gold determination by atomic absorption on fire
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 ALS. Samples from
HK20-002 reported on July 22nd, 2021 were sent to SGS Canada Inc.
with a comparable procedure and analysis, as described in previous
news releases.
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-KilmerThe
Hecla-Kilmer complex is located 35 kms southwest of the Company’s
Ranoke property in northern Ontario. It is located 23 km 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 to the south.
The H-K property is large. It
consists of 224 mineral claims in one contiguous block
approximately 6 x 7 km 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 Northern Development and Mines
(MNDM). There are no annual payments, but the MNDM requires certain
annual exploration expenditures and reporting. The property falls
within the traditional territories of the Moose Cree and Taykwa
Tagamou First Nations.
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.
The Company continues its normal course of
business in 2021 within the framework of modified exploration
programs in response to the COVID-19 pandemic, with the goal of
ensuring the health and safety of staff and project personnel.
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, anticipate, intend, estimate,
postulate and similar expressions or those which, by their nature,
refer to future events. Forward looking statements in this release
include “the Company expects to have all geochemical data in hand
by calendar year-end”, “These dimensions underscore the scale of
the REE mineralizing system at H-K, and its importance to the
upside potential of the project” 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 in nor
rights to explore. Readers are cautioned that mineral deposits on
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 may be accessed via
www.sedar.com and 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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Figure 3 accompanying this
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Figure 4 accompanying this
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