TORONTO, Sept. 11, 2017 /CNW/ - Kerr Mines Inc. ("Kerr"
or the "Company") (TSX: KER, OTC: KERMF, FRA: 7AZ1) is pleased
to announce that it has commenced with the underground exploration
and development drilling campaign for the 2017 Copperstone Mine
pre-feasibility study and exploration program. Approximately 4,600
meters (15,000 feet) of drilling is allocated to the first phase
with the goals of increasing the confidence levels and ounces of
the existing resource in the Copperstone Zone, and further defining
the parallel Footwall Zone.
The Copperstone Zone produced over 500,000 ounces of gold
between 1987 and 1993 when the pit reached economic limits at the
time and when gold prices averaged under $400/troy ounce. The down-dip extension of
the Copperstone Zone, located primarily east of and below the
bottom of the open pit, has a mineral resource of 313,000 ounces at
0.302 ounce per ton (measured + indicated), estimated in 2010*.
The first phase of the underground drilling program will test
targets along approximately 520 meters (1,700 feet) of this
resource which has a total strike length of 1,250 meters (4,100
feet).
First phase targets in the Copperstone Zone total 4,600 meters
(15,000 feet) of drilling and are designed to enhance the existing
resource and add more ounces. The exploration drilling
strategy includes testing the down dip extensions of the resource
and untested areas within the resource, along strike. Many
untested areas will be made accessible by the new 365 meter (1,200
feet) exploration drift. The new underground drift will be
accessed from existing underground workings and will extend the
overall extents of mine access by approximately 365 meters (1,200
feet) to the South East, along the strike of the Copperstone
Zone. This access is placed in between the Copperstone Zone
and the parallel Footwall Zone, giving simultaneous exploration
drilling access to both zones. The drift is also
strategically placed to provide access to the Copperstone Zone for
potential future mining purposes.
"The underground portion of the 2017 Copperstone exploration
program allows for fast access to drilling targets in the
Copperstone Zone. We are very excited to commence the first
phase of this program. This underground program, combined
with the previously announced surface program, is the cornerstone
for the forthcoming pre-feasibility study and is a key component to
the strategy of advancing the Copperstone Mine project towards a
production decision, " said Martin
Kostuik, President Kerr
Mines.
The technical information in this news release has been prepared
in accordance with the Canadian regulatory requirements set out in
NI 43-101 and reviewed and approved by Michael R. Smith, Registered Geologist., a
"Qualified Person" as defined by NI 43-101 for this project.
*Mineral Resource Tabulation – Model capped at 5.0 oz Au/t with
a 0.15 oz Au/t cutoff grade, 1,038,000 tons (measured +
indicated) - NI 43-101 Technical Feasibility Report, Copperstone
Project, February 2, 2010.
Limited mining of this resource occurred in the period between Q4
2012 and Q3 2013 and will be tabulated when a new resource is
estimated in early 2018.
About Kerr Mines Inc.
Kerr
Mines is a North American gold development and exploration
company currently advancing the 100% owned, fully permitted
past-producing Copperstone Mine project. Copperstone is a
high-grade gold project located along the Walker Lane mineral belt
in mining-friendly Arizona. The
project demonstrates significant upside exploration potential
within a 3,600 hectare (12,000 acre) land package that includes a
production history of over 500,000 ounces of gold. The Company's
current focus is on maximizing Copperstone's potential by defining
and expanding current resources and strengthening the mine's
economics leading to a production decision.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements, including
current expectations on the timing of the commencement of
production and the rate of production, if commenced. These
forward-looking statements entail various risks and uncertainties
that could cause actual results to differ materially from those
reflected in these forward-looking statements. Such statements are
based on current expectations, are subject to a number of
uncertainties and risks, and actual results may differ materially
from those contained in such statements. These uncertainties and
risks include, but are not limited to, the strength of the Canadian
economy; the price of gold; operational, funding, and liquidity
risks; the degree to which mineral resource estimates are
reflective of actual mineral resources; and the degree to which
factors which would make a mineral deposit commercially viable are
present; the risks and hazards associated with underground
operations. Risks and uncertainties about Kerr Mines' business are more fully discussed in
the Company's disclosure materials, including its annual
information form and MD&A, filed with the securities regulatory
authorities in Canada and
available at www.sedar.com and readers are urged to read these
materials. Kerr Mines assumes no
obligation to update any forward-looking statement or to update the
reasons why actual results could differ from such statements unless
required by law.
Neither TSX nor its Regulation Services Provider (as that term
is defined in the policies of the TSX) accepts responsibility for
the adequacy or accuracy of this release and no stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
SOURCE Kerr Mines Inc.