Victory Metals Commences Phase II, 10,000 Meter Drill Program at its Iron Point Vanadium Project, Nevada
Victory Metals Commences Phase II, 10,000 Meter Drill Program at its Iron
Point Vanadium Project, Nevada
VANCOUVER
,
May 27, 2019
/CNW/ -
Victory Metals
("
TSX-V:VMX
") ("
Victory
" or the "
Company
") is pleased to announce commencement of a Phase II,
10,000 meter drill program to further define vanadium mineralization at its Iron Point Vanadium Project in
Nevada
.
Highlights:
The Phase II program will consist of 49 holes (approximately 10,000 meters) utilizing two reverse circulation rigs and one diamond drill rig. These rigs have
been mobilized to the project.
The program is designed to infill zones of vanadium mineralization defined in the Company's Phase I maiden drill campaign, as well as to test lateral and
downward extensions of these zones.
The program will also provide sample material for the next phase of metallurgical test work. The diamond drill will be utilized for approximately 10 of the 49
planned holes, and these 10 core holes will be distributed over the project area to provide representative metallurgical samples of the vanadium
mineralization.
Mine Development Associates ("
MDA
"), a highly respected resource estimation and engineering firm based in
Sparks, Nevada
, has designed the Phase II
program based on preliminary geostatistical analysis of the Phase I results, with the objective of ensuring the drill spacing after Phase II will be sufficient for a
resource estimate predominantly in the measured and indicated category.
Collin Kettell
, Chief Executive Officer, stated: "Our team's rapid advancement at Iron Point continues at full steam with the commencement of our Phase II drill
program. In a span of nine months, we will have completed over 18,000 meters of drilling in addition to positive preliminary metallurgical testwork. The Phase II
program will provide representative samples from throughout the zones of mineralization, allowing us to more comprehensively define the metallurgical
characteristics to support advancement of the engineering work and for economic studies."
Overview of Maiden Phase I Drilling
In the Fall of 2018, Victory Metals began an 8,400-meter drill program to follow up on historical drilling completed by Newmont in 1966 and by Aur Resources in
1996. Both companies were exploring for gold but also assayed for vanadium. The vanadium results clearly demonstrated the potential for a sizeable vanadium
resource. Victory's recently completed Phase I maiden drill program included 69 reverse circulation and 4 diamond drill holes, which focused on delineating the
historically identified mineralized zone, and also tested expansion potential.
Key findings from the Phase I drill program include:
Significantly higher vanadium concentrations than indicated from historical drilling
. Victory Metals twinning of Newmont and Aur Resources drill holes
showed consistently higher vanadium concentrations. Victory believes that this can be largely attributed to the better sample recovery achieved with modern
RC drilling technology.
Discovery of the New High Grade Zone
. The presence of a shallow, higher grade zone (the "
Upper High Grade Zone
") was inferred in historical drilling at
Iron Point and was the basis for Victory's initial interest of the project's resource potential. Victory's recent drilling confirmed the Upper High Grade Zone and
importantly added a deeper high grade zone (the "
New High Grade Zo
ne"), which has yielded some of the highest-grade drill intersections to date.
Continuity of mineralized zones throughout the deposit
. Victory drill results show relatively flat-lying mineralized zones with good correlation between
holes. A high degree of continuity was not apparent from historical drilling and the Company believes this significant improvement in zone correlation can be
attributed to the higher sample recoveries and greater depth of drill penetration achieved in the current program. Victory believes that the positive correlation
of mineralized zones between holes considerably simplifies the interpretation of boundaries for the vanadium mineralization, facilitating a higher degree of
confidence in a future resource estimate.
Significant increase in the overall mineralized footprint
. The mineralized zone laid out from historical drilling showed an area roughly 700 meters in an
east-west direction by 700 meters north-south. Following Victory's Phase I drilling, this footprint has grown significantly to over 1,200 meters in the north-
south direction.
Expansion potential in almost all directions
. Vanadium mineralization at Iron Point is hosted within the Vinini formation which is exposed for 4,500 meters
in a north-south direction. Based on the exploration work to date, the Company believes that there is good potential in the Phase II drill program to expand
the vanadium mineralization with step-out drilling particularly in the north-south direction.
Property size increased
. Based on the continuing footprint expansion of vanadium mineralization and on a review of additional target areas for potential
resource definition, Victory recently added 96 claims for 1,800 acres to the Iron Point project. The extent of the property area now totals 690 claims for
13,300 acres.
Highlights of Phase I Drilling:
Key high-grade intercepts
(previously reported)
from Victory's maiden drill campaign include -
21 meters grading 0.54%
V
2
O
5
(including 6 meters grading 0.67%
V
2
O
5
) in VM-6
27 meters grading 0.56%
V
2
O
5
in VM-07
23 meters grading 0.63%
V
2
O
5
(including 6 meters grading 0.88%
V
2
O
5
) in VM-23
20 meters grading 0.54%
V
2
O
5
(including 9 meters grading 0.68%
V
2
O
5
) in VM-26
37 meters grading 0.55%
V
2
O
5
(including 5 meters grading 0.80%
V
2
O
5
) in VM-26i
14 meters grading 0.63%
V
2
O
5
(including 4 meters grading 1.00%
V
2
O
5
) in VM-26j
6 meters grading 0.72%
V
2
O
5
in VM-51
18 meters grading 0.53%
V
2
O
5
(including 2 meters grading 1.14%
V
2
O
5
) in VM-76
These intercepts are contained in two flat-lying higher grade vanadiferous horizons, referred to as the Upper and New High Grade Zones, which occur within a
broader and extensive envelope of vanadium mineralization within the Vinini Formation. This lower grade envelope of vanadium generally starts at surface and
extends down to a depth of 175 meters in places. Key intercepts include –
175 meters grading 0.25%
V
2
O
5
in hole VM-02
(from surface)
168 meters grading 0.21%
V
2
O
5
in hole VM-4 (from surface)
139 meters grading 0.28%
V
2
O
5
in hole VM-07
(from surface)
110 meters grading 0.27%
V
2
O
5
in hole VM-33
125m
grading 0.22%
V
2
O
5
in VM-34, and
151 meters grading 0.21%
V
2
O
5
in hole VM-76 (from surface)
.
Phase II Drilling
Following the results of the Phase I maiden drilling campaign, Victory worked with MDA to evaluate the overall extent of the vanadium mineralization at Iron Point,
and to position holes to support the planned maiden resource estimation work. With this objective MDA has developed the Phase II drill program of 49 holes (39
RC and 10 core holes). The drill pattern covers a northwesterly trending zone measuring
1800m
long by
550m
wide. Hole depths range from
130m
to
280m
with
angles ranging from -50o to vertical. Most of the holes are concentrated within the southern half of the property, where the previous drill holes were more widely
spaced and where holes failed to fully penetrate both mineralized horizons.
Two RC drills, one buggy-mounted and the other track-mounted, operated by New Frontier Drilling are currently engaged in perimeter definition drilling. The core
drill is operated by National and is currently drilling PQ-size core that will provide samples for metallurgical testing. The RC drilling operates on a day-shift basis,
while the core drill utilizes 24-hour drilling.
The proposed holes will be collared from existing historical drill roads, with several holes being drilled at an angle, allowing for minimal surface disturbance,
importantly allowing Victory to complete the program on its existing state-bonded Notice. The Company has been working closely with the Bureau of Land
Management,
Humboldt County
, to ensure that ongoing drilling complies closely with the Notice area.
Figure 1: Drill map at Iron Point outlining the holes drilled during Phase I (in dark grey) and new holes being drilled in Phase II (in green and blue). Diamond drill
holes are shown as squares, whereas the reverse circulation holes are shown as stars. Historical holes drilled by Newmont and Aur are represented by light grey
diamonds and circles, respectively. (CNW Group/Victory Metals Inc)
About Victory Metals
Victory owns a 100% interest in the Iron Point Vanadium Project, located 22 miles east of
Winnemucca, Nevada
. The project is located within a few miles of
Interstate 80, has high voltage electric power lines running through the project area and a railroad line passing across the northern property boundary. The
Company is well financed to advance the project through resource estimation and initial feasibility study work. Victory has a proven capital markets and mining
team led by Executive Chairman
Paul Matysek
. Major shareholders include Casino Gold (46%), and management, directors and founders (27%). Approximately
48% of the Company's issued and outstanding shares are subject to an escrow release over three years.
Qualified Person
The scientific and technical information in this news release has been review and approved by
Calvin R. Herron
, P.Geo., who is a Qualified Person as defined by
National Instrument 43-101.
Please see the Company's website at
www.victorymetals.ca
.
On Behalf of the Board of Directors of
VICTORY METALS INC.
Paul Matysek
Executive Chairman and Director
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 release.
Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation
(collectively "forward-looking statements"). Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "aims to", "plans to" or
"intends to" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on
the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by
such forward-looking statements or forward-looking information, including the business of the Company, the
speculative nature of mineral exploration and
development, fluctuating commodity prices, competitive risks, and
delay, inability to complete a financing or failure to receive regulatory approvals. Although
management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-
looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not
undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable
securities laws.
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SOURCE
Victory Metals Inc
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For further information:
Collin Kettell at [email protected] or (301) 744-8744.
CO: Victory Metals Inc
CNW 08:30e 27-MAY-19