VANCOUVER, April 29, 2015 /CNW/ - Flinders Resources
Limited ("Flinders" or the "Company") (TSXV: FDR) is pleased to
announce a near three times expansion of flake graphite mineral
resources at the Company's Woxna graphite project in Sweden. All mineral resources lie upon
fully granted Mining Leases, within the vicinity of the operational
Woxna graphite mine.
This significantly expanded mineral resource, calculated in
accordance with Canadian Institute of Mining, Metallurgy, and
Petroleum ("CIM") guidelines, includes for the first time two
100%-owned flake graphite deposits at Gropabo and Mattsmyra. These
resources lie upon fully granted Mining Leases, located 18km and
22km respectively from the Woxna mine and processing plant.
These new resources add to the previously announced mineral
resource at the Kringelgruvan mining lease (refer to Flinders'
release dated September 3, 2013
Tables 1 and 2). Flinders' 100% Woxna project is comprised of four
separate mining concessions.
Blair Way, President & CEO
states, "Woxna's measured and indicated graphite resources have
increased approximately three-fold from 2.8Mt @ 10.7% Cg to 7.7Mt @
9.3% Cg with this updated measured and indicated resource
calculation. All resources are contained within granted
mining leases. Expanding the resource base so close to our fully
operational processing plant at Woxna, will provide more
flexibility and confidence when planning for future expansions from
the current 13,000t/yr graphite production capacity.
This is a significant milestone for our business in Sweden."
The updated resource estimates are as follows:
Table 1: Total
Measured and Indicated Mineral Resources at the Woxna Graphite
Project, Sweden.
|
Effective date March
24, 2015
|
|
|
|
|
Mining
Lease
|
Classification
|
Tonnes x
1,000,000 (Mt)
|
Graphite ("Cg")
%
|
Gropabo
|
Indicated
|
1.5
|
8.8
|
Mattsmyra
|
Indicated
|
3.4
|
8.4
|
Kringelgruvan*
|
Measured
|
1.0
|
10.7
|
Kringelgruvan*
|
Indicated
|
1.8
|
10.7
|
TOTAL
|
Measured +
Indicated
|
7.7
|
9.3
|
*Previously
reported, refer to Company's press release September 3, 2013 and
November 5, 2013 with an effective date of October 11,
2013.
|
Table 2: Total
Inferred Mineral Resources at the Woxna Graphite Project,
Sweden.
|
Effective date March
24, 2015
|
|
|
|
|
Mining
Lease
|
Classification
|
Tonnes
(Mt)
|
Cg
%
|
Gropabo
|
Inferred
|
0.7
|
8.7
|
Mattsmyra
|
Inferred
|
1.2
|
8.4
|
TOTAL
|
Inferred
|
1.9
|
8.5
|
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral
resources may be materially affected by environmental, permitting,
legal, title, socio-political, marketing or other relevant
issues.
As a result of the new estimated mineral resources for the
Woxna Project, effective March 24,
2015, there is no longer a current preliminary economic
analysis ("PEA") for the Woxna Project and the previous PEA
released by the Company in 2013 is no longer current or valid as it
does not consider these additional mineral resources.
Flinders restarted the Woxna plant and mine in 2014 and is
currently mining the Kringelgruvan resource and producing graphite
products for the European market. Flinders continues to
operate the Woxna facility and grow the customer base for Flinders'
products.
The mineral resource at Mattsmyra was drilled within an area
approximately 2000m length by 100m width.
Mineralization was intersected on all drill sections and is known
to a depth of at least 180m below the surface and remains
open. Mineralization strikes northwest-southeast, and dips
varies between 70 and 80 degrees to the southwest.
Mineralization is present as a five main mineralized bodies and ten
smaller mineralized bodies. The thickness in the section of
the plane was usually more than 23m, but varied between 8m and more
than 155m. Mineralization at Mattsmyra remains open along
strike and at depth, and geophysical data suggests potential for
significant expansion.
The mineral resource at Gropabo was drilled within an area
approximately 500m length by 100m width. Mineralization
was intersected on all the drilling sections and is known to at
least a depth of 60m below the surface. Mineralization strikes
northwest-southeast, and dips varies between 65 and 85 degrees to
the southwest and is present as a four main mineralized
bodies. The thickness in the section of the plane was usually
more than 6m, but varied between 1m and a little more than
25m. Mineralization at Gropabo remains open along strike and
at depth.
The Mattsmyra and Gropabo mining leases are valid until 2025 at
which time they are automatically renewed for an additional 10
years if in production. The Kringelgruvan mining lease is
valid until the end of 2016 at which point it is automatically
renewed for an additional 10 years for as long as it remains in
production.
Geoffrey Reed of Reed Leyton
Consultants completed the verification of data on which the
Kringelgruvan, Mattsmrya and Gropabo Mineral Resource estimates are
based. Reed Leyton
viewed the paper records for Kringelgruvan, Mattsmyra and Gropabo
and compared 5% of the records with the Flinders Digital database.
Check samples were prepared by ALS Chemex in Pitea Sweden and
assayed in Vancouver Canada. The
Kringelgruvan re-sampling included 59 samples, the Mattsmyra
re-sampling included 26 samples and Gropabo re-sampling included 26
samples. The check samples were selected under the supervision of
Reedleyton. The verification included assessment of the digital
data, sample preparation and assay methodologies, density data,
data inputs and survey data used in the mineral resource estimates.
Data was validated by using field checks, statistical methods and
evaluating the Company's protocols.
Key Assumptions, Parameters and Methods Used to Estimate the
Mineral Resource
The mineral resource estimate was completed by qualified and
independent geologist, Mr. Geoffrey
Reed of Reed Leyton Consultants. A technical report with an
effective date of March 24, 2015 will
be available shortly on SEDAR and on the Company's website
(www.flindersresources.com).
The mineral resource estimate was calculated using Maptek's
Vulcan software based on the
following geological and resource modelling parameters:
- Thirty three diamond drill holes for 2,690m were drilled at
Mattsmyra from 1983, 1989, 1990 and 1992 and 38 diamond drill holes
for 1,789m were drilled at Gropabo from 1991 and 1992.
Twenty-nine and 35 holes respectively, were included in the current
mineral resource estimation.
- Hole spacing was completed generally on a 50 metre by 25 metre
drill pattern.
- A cut-off grade of 7% Cg was used as the base case to calculate
the mineral resource. This grade is considered conservative in the
current environment.
- Data relating to the collar locations, drill collar
orientations were sighted by Geoff
Reed in sections and plans of the day and Geoff Reed inspected the area with the Company's
personnel and was able to locate many drill hole collars from both
concessions.
- The analytical method used to assay Cg in drill core was
Leco-direct combustion and infrared absorption. Original assay
results exist in a database compiled by the Swedish Geological
Survey ("SGU") which was purchased by Woxna Graphite AB, the
Company's wholly-owned subsidiary, in 1992. Analysis was made by
the Leco furnace method. No information is currently
available as to specific quality assurance, quality control (QA/QC)
protocols used by the SGU in its drilling or analytical
programs. However, the work completed by the SGU is routinely
of a high standard.
- Check samples were prepared by ALS Chemex in Pitea Sweden and
assayed in Vancouver, Canada by
method code C-IR18 and S-IR08. Duplicates, repeats and blanks were
inserted on average for every 7 samples assayed.
- A total of 458 bulk density determinations have been completed
with a range of values between 2.48 g/cm³ and 3.86 g/cm³. The
majority of determinations range from 2.6 g/cm³ to 2.9 g/cm³.
ReedLeyton has also divided the 458 bulk density determination by
rock type. The density determinations were calculated wet and
dry weight volume determinations. Figure 33 confirms that the
majority of the determinations average 2.84 g/cm³. The
average for the waste rock determinations was 2.7 g/cm³.
- A total of 402 bulk density determinations have been completed
with a range of values between 2.39 g/cm³ and 3.05 t/m3.
The majority of determinations range from 2.6 g/cm³ to 2.9 g/cm³.
ReedLeyton has also divided the 402 bulk density determination by
rock type. The density determinations were calculated wet and
dry weight volume determinations. Figure 36 confirms that the
majority of the determinations average 2.79 g/cm³. The
average for the waste rock determinations was 2.7 g/cm³
- Grade interpolation was undertaken using inverse distance
defined by the domain wireframes.
- The allocations of composites were calculated using a hard
boundary at the domain wireframes. Composites of the drill hole
assays are generated using Maptek Vulcan software with run lengths
of 2 metre at Mattsmyra and 3 metre at Gropabo.
- Parent block size was 5m x 25m x 5m with sub blocks at 1m x 5m
x 1m.
- Grade interpolation was undertaken using inverse distance
defined by the domain wireframes. The allocations of composites
were calculated using a hard boundary at the domain
wireframes.
- No minimum width was applied.
- No assumptions were made as to future mining methods,
dimensions or dilution.
- No assumptions were made as to the metallurgical behaviour of
mineralization.
The qualified person in compliance with National Instrument
43-101 for the Woxna Project, Geoffrey
Charles Reed, B AppSc, MAusIMM (cp), has reviewed and
verified the contents of this release.
On behalf of the Board,
"Blair Way"
Blair
Way, President and CEO
Forward-Looking Information
Certain information in this news release may constitute
forward-looking statements or forward-looking information within
the meaning of applicable securities laws (collectively,
"Forward-Looking Statements"). All statements, other than
statements of historical fact that address activities, events or
developments that the Company believes, expects or anticipates will
or may occur in the future are Forward-Looking Statements.
Forward-Looking Statements are often, but not always, identified by
the use of words such as "seek," "anticipate," "believe," "plan,"
"estimate," "expect," and "intend" and statements that an event or
result "may," "will," "can," "should," "could," or "might" occur or
be achieved and other similar expressions. Forward-Looking
Statements are based upon the opinions and expectations of the
Company based on information currently available to the Company.
Forward-Looking Statements are subject to a number of factors,
risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the
Forward-Looking Statements including, among other things, the
Company has yet to generate a profit from its activities; there can
be no guarantee that the estimates of quantities or qualities of
minerals disclosed in the Company's public record will be
economically recoverable; uncertainties relating to the
availability and costs of financing needed in the future;
competition with other companies within the mining industry; the
success of the Company is largely dependent upon the performance of
its directors and officers and the Company's ability to attract and
train key personnel; changes in world metal markets and equity
markets beyond the Company's control; mineral resources are, in the
large part, estimates and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized; production rates and
capital and other costs may vary significantly from estimates; the
Company's preliminary economic assessment is no longer current or
valid and the Company has no plans to complete a new preliminary
economic assessment, a pre-feasibility or feasibility study on the
project, as a result there is an increased risk of technical and
economic failure for the Woxna graphite project; unexpected
geological conditions; delays in obtaining or failure to obtain
necessary permits and approvals from government authorities; all
phases of a mining business present environmental and safety risks
and hazards and are subject to environmental and safety regulation,
and rehabilitation and restitution costs; the Company does not
maintain insurance against environmental risks; and management of
the Company have experience in mineral exploration but may lack all
or some of the necessary technical training and experience to
successfully develop and operate a mine. Although the Company
believes that the expectations reflected in the Forward-Looking
Statements, and the assumptions on which such Forward-Looking
Statements are made, are reasonable, there can be no assurance that
such expectations will prove to be correct. Readers are cautioned
not to place undue reliance on Forward-Looking Statements, as there
can be no assurance that the plans, intentions or expectations upon
which the Forward-Looking Statements are based will occur.
Forward-Looking Statements herein are made as at the date hereof,
and unless otherwise required by law, the Company does not intend,
or assume any obligation, to update these Forward-Looking
Statements.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
the accuracy of this news release.
SOURCE Flinders Resources Limited