Oceanus Resources Corporation (TSXV:OCN) (OTCQB:OCNSF) ("Oceanus"
or the “Company”) has completed the 2017 fall drill program at its
wholly owned El Tigre Gold-Silver Property located in northern
Sonora, Mexico. The fall 2017 program comprised 600 meters of
diamond drilling to define the strike and dip of the high-grade
Caleigh vein and the low-grade alteration zone in the hanging
wall. Due to a backlog at the lab, assay results for holes
ET-17-146 to ET-17-151 are pending and are expected to be released
in January 2018 once the Company receives them.
Q1 2018 Outlook
During the first quarter of 2018, exploration
will continue at the El Tigre property with the focus continuing to
be on locating and defining other high-grade vein systems on the
property. The Company will also begin testing the potential
of the favourable El Tigre formation along strike to the south of
the El Tigre mine with geological and prospecting teams mapping and
collecting rock and geochemical samples over a distance of 5
kilometers to the south between Gold Hill and the Lluvia de Oro
prospect.
2017 Highlights
- September 2017 Resource Estimate
Oceanus completed the 2017 infill drilling
program at El Tigre in May 2017 having drilled a total of 62
diamond drill holes totaling 11,923.1 metres. These drill
results demonstrated wide oxidized zones of precious-metals
mineralization at El Tigre that outcrop at surface. The results
from this drill program supported a National Instrument 43-101
Mineral Resource Estimate which was released on September 13,
2017. The Mineral Resource Estimate included a total
indicated resource of 661,000 gold equivalent ounces and a total
inferred resource of 341,000 gold equivalent ounces and is detailed
in Appendix ”A”. A copy of the Technical Report is available
on the Company’s website and on SEDAR under the Company’s
profile.
- Bonanza Silver and Gold Grades to the
North
Step-out hole ET-17-144 was the last hole
drilled in May 2017 and it intersected high-grade gold and silver
mineralization in the Protectora vein, located approximately 800
meters north of the old El Tigre mine. Hole ET-17-144 returned 3.15
meters of 36.6 grams per tonne gold equivalent from a depth of
88.25 meters to 91.40 meters consisting of 10.1 grams per tonne
gold and 1,990.9 grams per tonne silver. This intercept included
0.85 meter of 135.1 grams per tonne gold equivalent consisting of
37.2 grams per tonne gold and 7,338.9 grams per tonne silver. Hole
ET-144 also returned 1,107.36 grams per tonne silver and 0.024 gram
per tonne gold over 1.5 meters from a depth of 188.65 metres to
190.15 meters.
Hole ET-17-145, the first hole in the fall 2017
program, as previously released returned 0.75 meters of 48.7 grams
per tonne gold equivalent from a depth of 28.50 to 29.25 meters
consisting of 10.91 g/t gold and 2,830.4 g/t silver. This
hole also encountered the low-grade hanging wall alteration zone
adjacent to the Caleigh vein. The overall intersection returned
25.75 m of 1.88 g/t gold equivalent from a depth of 3.50 to 29.25
meters consisting of 0.65 g/t gold and 91.9 g/t silver. The true
width has not been calculated for the intercepts, however true
width is generally estimated at 75 per cent to 90 per cent of
drilled width. The gold equivalent ratio is based on a
gold-to-silver price ratio of 1:75.
The high gold and silver grades intersected in
drill holes ET-17-144 and ET-17-145 are reminiscent of the bonanza
silver and gold grades mined underground in the 1920’s and 1930’s
at the old El Tigre mine which is 800 meters to the south.
Surface mapping shows that the Protectora vein and alteration
zone, that has not been mined, extends along strike to the north
from the old El Tigre mine for 2,000 meters. This 2,000 meter long
extension presents a new exploration target to find additional near
surface mineralization
- Significant Drill Results to the South
Drill hole ET-17-140, a step out hole located
approximately 500 meters to the south of the Main Deposit past Gold
Hill, returned 9.0 meters of 1.86 g/t gold equivalent from 35.0
meters to 44.0 meters consisting of 0.18 g/t gold and 125.5 g/t
silver, including 1.5 meters of 9.54 g/t gold equivalent consisting
of 0.43 g/t gold and 683.2 g/t silver. The vein and alteration zone
remains open along strike to the south, north and at depth.
This area represents another high priority exploration target for
discovering additional mineralization.
Media Update
In November 2017, during the Cambridge House
Silver and Gold Summit in San Francisco, Oceanus’ President and
CEO, Glenn Jessome, was interviewed by Mickey Fulp. The full
interview can be viewed here: https://youtu.be/z02ldLXqi54.
Stock Options Granted
The Board of Directors of Oceanus has approved
the issuance of 250,000 incentive stock options to its recently
hired Vice President of Investor Relations of the Company.
The options are exercisable on or before December 20, 2027 at a
strike price of $0.27.
El Tigre Property
The El Tigre Property lies at the northern end
of the Sierra Madre gold belt which hosts many of the larger
multi-million ounce epithermal gold and silver deposits including
Ocampo, Pinos Altos, Dolores and Palmarejo. In 1896, gold was first
discovered on the property in the Gold Hill area and mining started
with the Brown Shaft in 1903. The focus soon changed to mining
high-grade silver veins in the area with the majority of the
production coming from the El Tigre vein. Underground mining on the
El Tigre vein extended 1,450 meters along strike and mined on 14
levels to a depth of 450 meters. By the time the mine closed in
1938, it is reported to have produced a total of 353,000 ounces of
gold and 67.4 million ounces of silver from 1.87 million tons
(Craig, 2012).
The El Tigre Property is approximately 35
kilometers long and comprises 21,842.78 hectares. The El Tigre gold
and silver deposit is related to a series of high-grade epithermal
veins controlled by a north-south trending structure cutting across
the andesitic and rhyolitic tuffs of the Sierra Madre Volcanic
Complex within a broad gold and silver mineralized prophylitic
alternation zone. The veins dip steeply to the west and are
typically 1 meter wide but locally can be up to 5 meters in width.
The veins, structures and mineralized zones outcrop on surface and
have been traced for a distance of 5.3 kilometers along
strike. Historical mining and exploration activities focused
on a 1.5 kilometer portion of the southern end of the deposits,
principally on the El Tigre, Seitz Kelly and Sooy veins. Four veins
in the north (Aguila, Escondida, Fundadora and Protectora) were
explored with only limited amounts of production.
Qualified Person
David R. Duncan, P. Geo, vice-president,
exploration, of the corporation, is the qualified person for
Oceanus as defined under NI 43-101. Mr. Duncan has reviewed and
approved the scientific and technical information in this press
release.
About Oceanus Resources
Corporation
Oceanus Resources Corporation is a gold
exploration company operating in Mexico. Oceanus is managed by a
team of mine finders with extensive experience in exploring and
developing large hydrothermal gold projects in Mexico.
Oceanus is currently drilling and exploring the El Tigre Property
in the Sierra Madre Occidental.
For further information, please
contact:
Tania ShawVice President, Investor Relations416
419 2750tshaw@oceanusresources.ca
CAUTIONARY STATEMENT: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 accuracy of this release. This
News Release includes certain “forward-looking statements”.
All statements other than statements of historical fact included in
this release, including, without limitation, statements regarding
potential mineralization, resources and reserves, the ability to
convert inferred resources to indicated resources, the ability to
complete future drilling programs and infill sampling, the ability
to extend resource blocks, the similarity of mineralization at El
Tigre to the Ocampo mine, exploration results, and future plans and
objectives of Oceanus, are forward-looking statements that involve
various risks and uncertainties. Forward-looking statements are
frequently characterized by words such as “may”, “is expected to”,
“anticipates”, “estimates”, “intends”, “plans”, “projection”,
“could”, “vision”, “goals”, “objective” and “outlook” and other
similar words. Although Oceanus believes the expectations expressed
in such forward-looking statements are based on reasonable
assumptions, 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.
Important factors that could cause actual results to differ
materially from Oceanus’s expectations include risks and
uncertainties related to exploration, development, operations,
commodity prices and global financial volatility, risk and
uncertainties of operating in a foreign jurisdiction as well as
additional risks described from time to time in the filings made by
Oceanus with securities regulators.
APPENDIX “A”: El Tigre Project Mineral
Resource Estimate (1-11)
Resource Area |
Class |
AuEq g/tCut-Off |
Tonnes(000’s) |
Agg/t |
Ag ozs(000’s) |
Aug/t |
Au ozs(000’s) |
Au Eq g/t |
AuEq ozs(000’s) |
El TigreConstrained Pit1 |
Indicated |
0.20 |
25,170 |
15 |
11,906 |
0.51 |
416 |
0.69 |
559 |
Inferred |
0.20 |
2,791 |
12 |
1,093 |
0.38 |
34 |
0.52 |
47 |
El TigreUnderground1 |
Indicated |
1.50 |
207 |
156 |
1,041 |
0.46 |
3 |
2.33 |
16 |
Inferred |
1.50 |
11 |
82 |
29 |
1.27 |
0 |
2.26 |
1 |
Fundadora Constrained Pit2 |
Indicated |
0.20 |
451 |
167 |
2,428 |
0.93 |
14 |
2.94 |
43 |
Inferred |
0.20 |
1,774 |
150 |
8,554 |
0.69 |
39 |
2.49 |
142 |
Fundadora Underground2 |
Indicated |
1.50 |
80 |
118 |
306 |
1.03 |
3 |
2.45 |
6 |
Inferred |
1.50 |
2,003 |
140 |
9,044 |
0.60 |
38 |
2.28 |
147 |
Sub Total Indicated |
0.20, 1.50 |
25,908 |
19 |
15,681 |
0.52 |
436 |
0.75 |
624 |
Sub Total Inferred |
0.20, 1.50 |
6,579 |
89 |
18,720 |
0.52 |
111 |
1.59 |
337 |
El TigreTailings3 |
Indicated |
0.37 |
939 |
78 |
2,345 |
0.27 |
8 |
1.21 |
37 |
Inferred |
0.37 |
101 |
79 |
254 |
0.27 |
1 |
1.22 |
4 |
Total Indicated |
0.20,0.37,1.50 |
26,847 |
21 |
18,026 |
0.51 |
444 |
0.77 |
661 |
Total Inferred |
0.20,0.37,1.50 |
6,680 |
88 |
18,974 |
0.52 |
112 |
1.59 |
341 |
Notes to Table 1:
(1) El Tigre Deposit Mineral Resources are
comprised of the El Tigre and Seitz Kelly Veins.(2) Fundadora
Deposit Mineral Resources are comprised of the Aquila, Fundadora,
Protectora and Caleigh Veins.(3) El Tigre Tailings Deposit Mineral
Resources are comprised of the tailings from the former El Tigre
operation.(4) Mineral Resources are reported within a constraining
pit shell.(5) The Mineral Resource Estimate is reported in
accordance with the Canadian Securities
Administrators National Instrument 43-101 and has been
estimated using the CIM “Estimation of Mineral Resources and
Mineral Reserves Best Practice Guidelines and CIM “Definition
Standards for Mineral Resources and Mineral Reserves.(6) Au:Ag
ratio = ($1250/$17)/(70% Ag Rec/80% Au Rec)= 84:1 Therefore,
AuEq=(Ag/84) + Au.(7) Mineral Resources in this estimate are based
on approx. two year trailing average metal prices of US$1,250 oz Au
and US$17 /oz Ag, estimated process recoveries 80% Au and 70% Ag,
US$5.70/t process cost and US$0.80/t G&A cost. Mining costs of
US$1.55/t for open pit and $45/t for underground and tailings
mining costs of US$5.50/t were used to derive the respective
Mineral Resource Estimate AuEq cut-offs of 0.20 g/t and 1.5 g/t and
0.37g/t. Pit optimization slopes were 50 degrees.(8) The Mineral
Resource Estimate uses drill hole data available as of September 1,
2017. (9) Totals may not add correctly due to rounding.(10) An
Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted
to a Mineral Reserve. It is reasonably expected that the majority
of Inferred Mineral Resources could be upgraded to Indicated
Mineral Resources with continued exploration. (11) Mineral
Resources which are not Mineral Reserves do not have demonstrated
economic viability. The estimate of Mineral Resources may be
materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing or other relevant issues.
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