Bonanza Mining Corporation announces Shag Property National Instrument 43-101 Report and IP survey commencement
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Bonanza Mining Corporation
Suite 2201 – 8 Smithe Mews
Vancouver, B.C.
V6B 0A5
Trading Symbol: TSX-V: BNZ Telephone: 604-619-0225
Fax: 604-980-6264
Email: [email protected]
Bonanza Mining Corporation announces Shag Property
National Instrument 43-101 Report and IP survey commencement
September 22, 2021 – Vancouver, British Columbia : Bonanza Mining Corporation (“Bonanza”) (TSX-V:
BNZ) is pleased to report that a recently prepared Shag property National Instrument 43-101 report has been
accepted for filing by the TSX Venture Exchange and can be viewed on Bonanza’s SEDAR profile. As well,
Bonanza has commenced an IP survey on the Shag property which is expected to be completed in approximately 2
weeks. The Shag property is located in the Rocky Mountains of southeastern B ritish Columbia approximately 24
km due east of Radium Hot Springs and 35 km northeast of the town of Canal Flats and can be readily accessed by
good logging roads from both of those towns.
There are two active mines in the area : Baymag Inc. mines magnesite at its Baymag mine on the Cross River
approximately 20 km north of Shag and CertainTeed Corp. mines gypsum at its Kootenay West mine
approximately 45 km southwest of Shag, near Canal Flats.
There are numerous lead/zinc occurrences similar to Shag in the southern Rocky Mountains, including the past
producing Monarch and Kicking Horse lead–zinc mines near Field, British Columbia, and the Paint Pots and Hawk
Creek zinc occurrences in Kootenay National Park to the north. South of Shag, similar zinc occurrences include
Munroe Lake, Alpine, Boivin and the Oldman River (Bearspaw). As well t he Fen claims cover a lead/zinc project
at the head of Fenwick Creek, approximately 20 km southwest of Shag. See the attached map.
The Shag property contains twenty separate lead, zinc and silver stratabound MVT style mineral occurrences
hosted within three separate horizons in middle Cambrian age dolostone rocks. Since 1977 there ha ve been
numerous historical exploration programs conducted on the property including soil and rock sampling surveys, IP
and VLF-EM geophysical surveys, geological mapping and four separate diamond drilling programs.
Rio Tinto Ltd. conducted two small, shallow drilling programs in 1978 and 1979 , the 1978 drill program having
consisted of drilling 159.5 met res in 3 drill holes along the BM mineralized horizon , and the 1979 drill program ,
which was also small and consisted of drilling 6 shallow drill holes totaling 460.6 metres along the C-4 mineralized
horizon.
Esso Minerals also conducted two small, shallow drill programs in 1981 and 1982, both along th e Red Bed
mineralized horizon. The 1981 drill program having consisted of drilling 152 met res in 4 drill holes and the 1982
drill program, which was also small and consisted of drilling 6 shallow drill holes totaling 460.1 metres.
The G eological Survey of Canada has conducted a regional airborne magnetic survey over southeastern B ritish
Columbia and southwestern Alberta that outlined a 30 km wide magnetic low anomaly trending northeasterly for
approximately 200 km from Canal Flats, British Columbia to Red Deer, Alberta. This anomaly is a major basement
fault zone that trends under the Shag property and is named the Red Deer lineament. The style of lead -zinc
mineralization on the Shag property is a similar style as the MVT lead -zinc mineralization at Pine Point, Northwest
Territories where numerous deposits were located and mined in Devonian age carbonate rocks along a similar
basement fault zone named the Great Slave Shear Zone.
Cominco Ltd. found that IP surveys were the most effective geophysical technique for locating lead-zinc deposits
within the Pine Point mining district and is the reason why Bonanza has chosen to conduct an IP survey along the
Albert river valley on the northern portion of the Shag property.
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The three zinc-lead mineralized horizons on the Shag property occur in the Eldon and Waterfowl formations which
are higher in the stratigraphic section than the Cathedral formation which hosts the past producing Monarch and
Kicking Horse mines along strike near Field, British Columbia and is the most prospective formation in the district.
On the Shag property only the uppermost beds of the prospective Cathedral formation are exposed in the Albert
river valley where the IP survey is being conducted, the main purpose of which is to locate zinc-lead mineralization
targets in the Cathedral formation for drill testing in 2022. As well, deeper drilling along the previously, shallowly
drilled BM, C -4 and Red Bed horizons is also planned for 2022 and an application for a drill permit has been
prepared.
Qualified Person
Technical information in this news release has been approved by Christopher Graf, P. Eng., the Vice -President
exploration, as well as a Director of the Company and a Qualified Person for the purposes of National Instrument
43-101.
For further information, please contact:
Bonanza Mining Corporation
Suite 2201 – 8 Smithe Mews
Vancouver, B.C. V6B 0A5
Attention: Alfredo De Lucrezia, President,
CEO and Director
Tel: (604) 619-0225
Email: [email protected]
Cautionary Statements
This press release contains "forward -looking information" within the meaning of applicable securities laws .
Readers are cautioned to not place undue reliance on forward -looking information. Actual results and
developments may differ materially from those contemplated by these statements. The statements in this press
release are made as of the date of this press release. The C ompany undertakes no obligation to update forward-
looking information, except as required by securities law.
Neither the 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 press release.
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