Technical Report on Silver Queen Project Provides Significant Increase in Ag-Au-Zn Mineral Resources for Equity Metals Corporation
Technical Report on Silver Queen Project
Provides Significant Increase in Ag-Au-Zn
Mineral Resources for Equity Metals
Corporation
Vancouver, British Columbia--(Newsfile Corp. - January 16, 2023) -
Equity Metals Corporation
(TSXV: EQTY) ("Equity Metals" or "Company")
reported today that it has filed a technical Report
(the "Report") prepared in accordance with Canadian Securities Administrators' National Instrument 43-
101 ("NI 43-101"). The Report may be found under the Company's profile at
www.sedar.com
and on
Equity's website
www.equitymetalscorporation.com
.
The Report dated January 16, 2023 and titled
"Technical Report and Updated Mineral Resource
Estimate of the Silver Queen Property, Omineca Mining Division, British Columbia"
was
prepared by P&E Mining Consultants Inc. ("P&E"), Kirkham Geosystems Ltd ("KGL") and Metallurgical
Process Consultants Ltd. (MPC).
The updated Mineral Resource Estimate ("MRE") features lateral and down-dip extensions of the
previously modelled No. 3 and NG-3 Veins, originally included in a previous 2019 MRE, and new,
previously unmodelled mineralization from the Camp and Sveinson Targets. The current MRE utilizes a
Net Smelter Return ("NSR") cut-off at C$100/t with updated metal pricing. The Report supports the
disclosure made by the Company in its news release dated December 1, 2022 titled
"Equity Metals
Announces a Significant Increase to the Mineral Resource Estimate at the Silver Queen
Project, BC".
There are no material differences in the Mineral Resources contained in the Report from those disclosed
in the December 1, 2022 news release.
Silver Queen Resource Model highlights:
Indicated Mineral Resources
of
3.46Mt averaging 189g/t Silver, 2.13g/t Gold, 0.24%
Copper, 0.6% Lead and 3.5% Zinc (565g/t AgEq or 6.9g/t AuEq)
equating
to
62.8 million
ounces silver equivalent or 765 thousand ounces of gold equivalent;
and
Inferred Mineral Resources
of
1.92Mt averaging 167g/t Silver, 0.82g/t Gold, 0.23% Copper,
0.5% Lead and 2.0% Zinc (365g/t AgEq or 4.4g/t AuEq)
equating to
22.5 million ounces
silver equivalent or 273 thousand ounces of gold equivalent.
The updated MRE incorporates an additional 25,659 metres of drilling in 78 core holes completed in
2020-22 and updated metal recoveries and pricing.
President Joe Kizis comments,
"At the time we assumed management of the Company in Q3 of 2019,
we felt there were clear opportunities to quickly add significantly to the 2019 MRE at Silver Queen, and
we are proud to report our success at a very low cost of $0.15/oz of added AgEq or $11/oz of added
AuEq. The MRE remains open for additional delineation west of the Camp Resource and within the
Sveinson Resource. In addition, there are several targets that have only been tested by a few drill
holes and remain very attractive areas for new discoveries and MRE increase."
Silver Queen Project Highlights
Five separate target areas have been tested in part and thick intervals of high-grade gold, silver
and base-metal mineralization have been identified in each of the Camp Vein, the Sveinson
Target, No. 3 Vein, and NG-3 Vein systems.
Figure 1: Plan map of targets and deposits on the Silver Queen vein system, BC
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/5566/151468_b5c1dabbc4433ada_002full.jpg
The updated NI 43-101 Mineral Resource Estimate increases the tonnage by approximately
240%
with approximately
64%
of the Mineral Resources are classified as
Indicated
on a per
tonnage
basis
and
74%
of the total on a
AgEq basis
reflecting the overall higher average grade
(565g/t
Ag Eq)
of the MRE in the
Indicated
category
.
The Mineral Resource has a strong precious-metal bias with gold and silver accounting for
approximately
64%
of the total value and features a significant increase in contained silver ounces
in both the Indicated
(+297%)
and Inferred
(+117%)
categories, which is supported in large part by
the addition of strongly silver enriched mineralization from the Camp Veins.
The Company has expended
C$6.75 million
on exploration of the Silver Queen project since
2019
resulting in a
cash-discovery-cost
of only
C$0.15/oz per AgEq
added or
C$11/oz AuEq
added.
Tabulation of grades and tonnages sensitivities (Table 2) demonstrate an excellent retention of
higher-grade mineralization at increasing C$NSR cut-offs with
84%
of the
Base-case Mineral
Resource
when expressed on a
AgEq basis
remaining at a
C$200 NSR
cut-off.
Recommendations and 2023 Exploration
The Report concludes that the Silver Queen Property hosts significant high-grade mineralization that may
potentially be amenable to underground economic extraction and warrants further exploration with a
focus on the identification and delineation of the vein system.
The recommended work budgets for up to 5000m of core drilling and includes:
Step-out drilling to the west and down-dip of the Camp Vein Resource;
Further delineation of veins within the Sveinson Resource;
Continued confirmation and delineation of historical veins identified on the Property by previous
workers, including the George Lake, George Lake South and the Cole Lake veins where historical
drilling has identified significant exploration potential. Surface work may include soil and rock chip
sampling to assist in establishing vein orientations to be followed by confirmation drilling;
Metallurgical test work to resolve base metal displacement in the copper and lead concentrates;
and
Further test work to optimize gold deportment within the floatation circuit.
The budget for the proposed work program is $1.69M.
Equity Metals is fully financed for the proposed work program and will start exploration activities at Silver
Queen during Q2 2023. Exploration will initially test extensions of the Camp and Sveinson Resources as
identified in the Report. Further work will concentrate on the confirmation and extension of mineralization
on the George Lake, George Lake South Targets and Cole Lake Targets and continued metallurgical
test work to resolve metal displacement within the flotation circuit.
Qualified Persons
The independent Qualified Persons ("QP") for the Report are Garth Kirkham, P.Geo., Principal, Kirkham
Geosystems Ltd., Eugene Puritch, P. Eng., FEC, CET. William Stone, Ph.D., PGeo, Antoine Yassa,
P.Geo., Jarita Bary, P.Geo. and Fred Brown, P.Geo, of P&E Mining Consultants Inc., Arthur Barnes
P.Eng., FSAIMM. M.Sc. of Metallurgical Process Consultants Limited and James Hutter, P.Geo., as
defined by National Instrument 43-101 who have reviewed and approved the technical contents of this
news release. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral
Projects, Robert Macdonald, P.Geo, Vice President Exploration, is the Qualified Person for the
Company and has reviewed and approved the technical content of this news release.
Risk Factors
Equity Metals Corporation is aware that this project is subject to the same types of risks that large
precious metal projects experience at an early stage of development in British Columbia. The Company
has engaged experienced management and specialized consultants to identify, manage and mitigate
those risks; however, the types of risks will change as the project evolves and more information
becomes available.
Further details regarding the foregoing Mineral Resource Estimate, including the estimation methods
and procedures, are detailed in the Report, now filed on SEDAR (
www.sedar.com
) under the Company's
profile and on the Company's website.
Table 1: Base Case Mineral Resource Estimate for the Silver Queen Project Utilizing a C$100/t
NSR cut-off value
To view an enhanced version of Table 1, please visit:
https://images.newsfilecorp.com/files/5566/151468_b5c1dabbc4433ada_001bfull.jpg
1)
The current Mineral Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd and Eugene Puritch, P.
Eng., FEC, CET and Fred Brown, P, Geo. of P&E Mining Consultants Inc. ("P&E"), Independent Qualified Persons ("QP"), as defined by
National Instrument 43-101.
2)
All Mineral Resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum ("CIM")
definitions, as required under National Instrument 43-101 ("NI43-101").
3)
Mineral Resources were constrained using continuous mining units demonstrating reasonable prospects of eventual economic
extraction.
4)
Silver and Gold Equivalents were calculated from the interpolated block values using relative process recoveries and
prices between
the component metals and silver to determine a final AgEq and AuEq values.
5)
Silver and Gold Equivalents and NSR$/t values were calculated using average long-term prices of $20/oz silver, $1,700/oz gold,
$3.50/lb copper, $0.95/lb lead and $1.45/lb zinc.
All metal prices are stated in $USD.
The C$100/tonne NSR cut-off grade value for the
underground Mineral Resource was derived from mining costs of C$70/t, with process costs of C$20/t and G&A of C$10/t. Process
recoveries used were
Au 70%, Ag 80%, Cu 80%, Pb 81% and Zn 90%.
6)
Grade capping was performed on 1m composites for the No. 3 and NG-3 veins and whole vein composites for the Camp and Sveinson
veins. For the No. 3 and NG-3 veins Inverse distance cubed (I/d3) was utilized for grade interpolation for Au and Ag and inverse distance
squared (I/d2) was utilized for Cu, Pb and Zn. Inverse distance squared (I/d2) was used for all metals in the Camp and Sveinson veins.
7)
A bulk density of 3.56t/m
3
was used for all tonnage calculations in the No. 3 and NG-3 veins. A variable density with a 3.15t/m
3
average
was used for the Camp and Sveinson veins.
8)
Mineral Resources are not Mineral Reserves until they have demonstrated economic viability. Mineral Resource Estimates do not
account for a Mineral Resource's mineability, selectivity, mining loss, or dilution.
9)
An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be
converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated
Mineral Resources with continued exploration.
10)
All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.
Table 2: Resource Model Sensitivities at Various C$NSR/t cut-offs
To view an enhanced version of Table 2, please visit:
https://images.newsfilecorp.com/files/5566/151468_b5c1dabbc4433ada_002bfull.jpg
1)
Sensitivities were calculated at progressive C$NSR/t cut-off utilizing the same parameters and metal pricing as the Base Case
scenario described in Table 1.
Silver, Gold Equivalencies and C$NSR Calculations
Silver and Gold Equivalents and NSR$/t values were calculated using approximate average long-term
prices of $20/oz silver, $1,700/oz gold, $3.50/lb copper, $0.95/lb lead and $1.45/lb zinc.
All metal prices
are stated in $USD with a conversion to $CAD of 0.77. See below the equivalency and C$NSR
calculations:
AgEq = (Ag g/t x 1) + (Au g/t x 81.41) + (Cu% x 116.35) + (Pb% x 28.77) + (Zn% x 44.80)
AuEq = (Ag g/t x 0.012) + (Au g/t x 1) + (Cu% x 1.43) + (Pb% x 0.35) + (Zn% x 0.55)
C$NSR = (Ag g/t x 0.57) + (Au g/t x 46.79) + (Cu% x 66.87) + (Pb% x 16.54) + (Zn% x 25.74)
About Silver Queen Project
The Silver Queen Project is a premier gold-silver property with over 100 years of historical exploration
and development and is located adjacent to a power line, roads and nearby rail with significant mining
infrastructure that was developed under previous operators Bradina JV (Bralorne Mines) and Houston
Metals Corp. (a Hunt Brothers company). The Property contains two historical declines into the No. 3
Vein, camp infrastructure, and a maintained Tailings Facility.
The Silver Queen Property consists of 45 mineral claims, 17 crown grants, and two surface crown grants
totalling 18,852ha with no underlying royalties. Mineralization is hosted by a series of epithermal veins
distributed over a 6 sq km area. The initial NI43-101 Mineral Resource Estimate was detailed in a News
Release issued on July 16th, 2019 and is hosted by the No. 3 Vein, which is traced by drilling for
approximately 1.2km and then to the southeast where it transitions into the NG-3 Vein close to the buried
Itsit copper-molybdenum porphyry.
More than 20 different veins have been identified on the Property, forming an extensive network of zoned
Cretaceous- to Tertiary-age epithermal veins. The Property remains largely under explored.
About Equity Metals Corporation
Equity Metals Corporation is a Manex Resource Group Company. Manex provides exploration,
administration, and corporate development services for Equity Metals' two major mineral properties, the
Silver Queen Au-Ag-Zn-Cu project,
located in central B.C., and the
Monument Diamond project
,
located in Lac De Gras, NWT. The Company also has a 1% royalty (Greenwood Royalty) and a 100%
working interest in the La Ronge Silica Project.
The Company owns 100% interest, with no underlying royalty, in the
Silver Queen Project,
located
along the Skeena Arch in the Omineca Mining Division, British Columbia. The Property hosts high-
grade, precious- and base-metal veins related to a buried porphyry system, which has been only partially
delineated. The Company also has a controlling JV interest in the
Monument Diamond project
,
NWT
,
strategically located in the Lac De Gras district within 40 km of both the Ekati and Diavik Diamond
Mines. The Project owners are Equity Metals Corporation (57.49%), Chris and Jeanne Jennings
(22.11%); and Archon Minerals Ltd. (20.4%). Equity Metals is the operator of the Project.
The 100% controlled La Ronge Silica Project is an historical sand quarry located in central
Saskatchewan, approximately 60 kilometers south-southeast of La Ronge, Saskatchewan and 210
kilometers west of Flin Flon, Manitoba. Preliminary studies indicate the silica deposit may be developed
into a simple and profitable, low-cost mining and washing operation to produce high-purity silica (>98%
SiO2), a specialty product for the EV battery industry.
On behalf of the Board of Directors
"Joseph Anthony Kizis, Jr."
Joseph Anthony Kizis, Jr., P.Geo
President, Director, Equity Metals Corporation
For further information, visit the website at
https://www.equitymetalscorporation.com
; or contact us at
604.641.2759 or by email at
.
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 may contain forward-looking statements. Forward-looking
statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from
those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements
include the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic,
market or business conditions.
Equity Metals Corporation does not assume any obligation to update or revise its forward-looking statements,
whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/151468