Canada Fluorspar (CVE:CFI) has unveiled the results of three holes from its phase 2 diamond drilling program along the southern extension of the Director Vein at its St. Lawrence project in Newfoundland, saying the results are encouraging as they show the vein extends to a projected depth of 75 metres.
The first eight holes from the phase 1 and 2 program were released earlier this year. The phase 1 program covered the northern extension of the Director Vein, while phase 2 covers the southern extension.
The company said that all three of the holes released Wednesday are located on the same cross section, at 1,700 metres south of the old Aluminium Company of Canada (Alcan) shaft.
The St. Lawrence property has a history, having been mined by Alcan for 44 years until 1977, producing in excess of 4.2 million tonnes of fluorspar.
Of the latest Director Vein drill results, hole DS-13-120 returned average values of 26.9% fluorspar over 3.72 metres from 57.28 metres to 61.00 metres measured depth, and 59.63% fluorspar over 1.68 metres from 74.40 metres to 76.08 metres measured depth.
The next hole DS-13-121, a shallow hole as noted by the company, returned 47.9% fluorspar over 2.42 metres, while the deepest hole, hole DS-13-122 intersected 35.3% fluorspar over 12.25 metres between 81.75 metres and 94 metres downhole.
"The assays from these three holes as well as previously reported holes, DS-13-115 and DS-13-116, are encouraging in that the southern extension of the Director Vein in this area is now known to extend from surface to a projected depth of 75 metres and along a projected north-south strike for approximately 200 metres with grades and widths that would categorize the mineral resources as mineable", said president and CEO Lindsay E Gorrill in the release.
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 company’s Tarefare vein – which is now part of the Arkema joint venture - along with “the middle part” of the Director Vein, were the veins mined previously by Alcan.
All three drill holes reported Wednesday at Director run from west to east, and are located 100 metres south of a hole previously reported last month, which returned a whopping 59.9% fluorspar over 13.00 metres.
So far this year, as part of Canada Fluorspar's exploration program, six phase 1 drill holes were completed and 26 phase 2 holes were drilled, with results still pending for the remaining holes in the phase 2 campaign.
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.
Shares of Canada Fluorspar are trading at around 26 cents on the TSX Venture Exchange, with a market cap of $26.9 million.
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