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Wednesday, 8 May 2013
Canada Fluorspar's Director vein drilling validates massive fluorspar mineralization seen through trenching
Canada Fluorspar (CVE:CFI) has unveiled Wednesday the third set of drill results from its diamond drilling program at its Director Vein on the company's St. Lawrence project in Newfoundland, saying it is encouraged by the data that validates the trenching results from last year.
The third set of results are from three holes, with one drilled along the northern section of the Director Vein, beneath the Aluminium Company of Canada's (Alcan) old mine workings, and two holes from the southern extension of the vein.
The first five holes from the program were released earlier this year.
One of the three latest drill holes, DS-13-105, is located 974 metres south of the old Alcan shaft, the company said. This hole returned an average assay value of 15.7% fluorspar over 5.00 metres with 1.14 metres of lost core for a total of 6.84 metres.
Meanwhile, drill holes DS-13-115 and DS-13-116, which is located roughly 1,600 metres south of the Alcan shaft, returned assay values of 36.6% fluorpsar over 5.72 metres and whopping 59.9% fluorspar over 13.00 metres, respectively.
The company said hole DS-13-116 was drilled beneath trench No. 3, which was reported in an April to contain massive fluorspar mineralization with a fluorspar vein measuring 9.4 metres wide and grading 90.7% fluorspar.
"The assays from the first two holes on the south extension at shallow depths are very encouraging," said company CEO Lindsay E. Gorrill in a statement released Wednesday.
"This is the area where we saw high assays results from trenching done in 2012. DS-13-116 showing almost 60% grade with 13 metres width is a significant intersection and validates the trenching done in 2012."
The company's 100 per cent owned St. Lawrence veins sit just outside of its Newspar joint venture in Newfoundland - part of the Canadian junior's two-prong strategy.
The Newspar joint venture is owned 50/50 split by Canada Fluorspar (CFI) and French chemical giant Arkema Inc. (Arkema), which has funded a total of $75 million for its half, through a direct investment in Newspar of $60 million and a $15.5 million investment in CFI at $0.75 per share.
The junior company also has $17 million in available financing from the Newfoundland government, with an average 1.2 percent interest rate. The partnership currently has approximately $65 million in the bank.
Though Gorrill told Proactive Investors that the Newspar venture is fully permitted with the ability to start construction once final engineering is finished and current cost reviews are completed, the company's 100 percent-owned Director Vein is the key, he says, to unlocking the "bigger dollars".
The company has 41 known mineralized veins on its fluorspar assets in St. Lawrence, two of which – Blue Beach and Tarefare - have been drilled and vended into the partnership with Arkema, while drill rigs started working at its own Director Vein in January.
So far, six phase 1 drill holes, which focused on the northern extension of the Director Vein, have been completed, together with 20 additional drill holes in phase 2 - focused on the south extension of the vein. Results from 18 of the 20 drill holes in phase 2 are still pending.
The company’s Tarefare vein – which is now part of the Arkema joint venture - along with “the middle part” of the Director Vein, were mined previously by Alcan, and produced more than 4.2 million tonnes of fluorspar during a 44 year period from 1942 to 1977.
Canada Fluorspar said Wednesday it appears that the Director Vein structure is narrowing and reducing in grade as it gets deeper.