Victory Metals Identifies Larger and Higher- grade Vanadium Zone at Iron Point - Plans Maiden Resource Estimate
Victory Metals Identifies Larger and Higher-
grade Vanadium Zone at Iron Point - Plans
Maiden Resource Estimate
VANCOUVER
,
April 2, 2020
/CNW/ - Victory Metals Inc. ("
TSX-V: VMX
") ("
Victory
" or the
"
Company"
) is pleased to announce assay results from the third and final set of drill holes as part of
its 10,532 meter, 52 hole Phase II drilling program at the Iron Point Vanadium Project,
Nevada
.
Today's release includes 27 holes (21 reverse circulation and 6 PQ diamond drill holes) targeting the
southern portion of the Iron Point mineralized vanadium zone. These vertical and angle holes were
recommended by Mine Development Associates (
Sparks, NV
) to better define the outer limits of
mineralization and add definition to areas within last year's Phase I drill program where low hole
density and/or insufficient depth penetration hindered accurate correlation of mineralized zones. With
Phase II drilling completed the Company plans to initiate a maiden resource estimate.
The collar locations of the 27 holes released today are shown in Figure 1. Seventeen of these holes
are shown in two cross sections oriented in northwest striking (Figure 2, Section L-L) and north
striking (Figure 3, Section M-M) directions. This area is below the southern portion of the Historical
Vanadium Mineralized Zone and encompasses a rectangular area roughly
800m
NW-SE and
300m
wide. The deeper Phase II holes drilled within this area significantly expanded the extent of known
vanadium mineralization at Iron Point to an area measuring
1500m
in a NW-SE direction and
300m
to
500m
in width. Mineralization remains open to the west, east, south, and to depth in several
places.
Paul Matysek
, Executive Chairman of Victory, stated, "Phase II drilling returned surprisingly high-
grade results in the southern portion of our vanadium rich target area. Most notable is a shallow and
relatively uniform zone of vanadium mineralization that is a prime candidate for our initial
developmental focus. Furthermore, the increased drill density in the southern portion of the deposit
has revealed larger and higher-grade zones of vanadium mineralization than previously identified
from Phase I drilling. In summary, the Phase II drill program sought to close-off the lateral and
vertical extent of mineralization; it instead confirmed that the deposit remains open in most directions
and to depth. Our team is excited to move forward with a resource calculation."
Highlights
New high-grade RC drill results, reported as estimated true thicknesses comprised of
aggregate intercept lengths (see note above Table 1 for definition of aggregate length), include:
30.0 meters grading 0.42%
V
2
O
5
(including 4.9 meters grading 0.64%
V
2
O
5
) in VM-
106
29.0 meters grading 0.46%
V
2
O
5
(including 6.1 meters grading 0.70%
V
2
O
5
) in VM-
114
17.5 meters grading 0.54%
V
2
O
5
(including 8.1 meters grading 0.71%
V
2
O
5
) in VM-
122
61.0 meters grading 0.47%
V
2
O
5
(including 10.7 meters grading 0.90%
V
2
O
5
) in VM-
1C
30.5 meters grading 0.50%
V
2
O
5
(including 9.3 meters grading 0.78%
V
2
O
5
) in VM-3C
27.0 meters grading 0.53%
V
2
O
5
(including 15.0 meters grading 0.61%
V
2
O
5
) in VM-
9C
35.1 meters grading 0.41%
V
2
O
5
(including 7.6 meters grading 0.78%
V
2
O
5
) in EG-2
As observed in Phase I drilling, these latest intercepts are consistent with two sub-horizontal
higher grade vanadiferous horizons, referred to as the Upper High Grade and New High Grade
Zones. Both of these horizons continue to exhibit a high degree of lateral grade continuity
between holes. These high grade zones occur within a broader, extensive envelope of lower
grade mineralization extending from the surface down to a depth of at least 175 meters.
Intercepts of this broader envelope (reported as estimated true thicknesses, see the note
above Table 1 for definition of Overall Length) include:
175.3 meters grading 0.26%
V
2
O
5
in hole VM-1C
173.2 meters grading 0.28%
V
2
O
5
in hole VM-8C
167.7 meters grading 0.24%
V
2
O
5
in VM-114
Most of these new holes tested a large area south of the Historical Vanadium Mineralized Zone,
where shallow Phase I drilling did not fully penetrate the entire mineralized sequence. The
greater depth and higher hole density of this Phase II drilling program significantly extended
vanadium mineralization at depth, thus increasing confidence in the mineralization in advance of
a maiden resource estimate.
Thicker zones of higher-grade mineralization are clustered around core hole VM-8C within an
area measuring
300m
in a N-S direction and
130m
wide, in places extending from the surface
down to a maximum depth of
170m
. The shallow nature of this relatively uniform and vertically
continuous mineralization provides Victory with an attractive open pit target.
Mineralization remains open to the west, east, and south.
The new PQ diamond drill holes released today allow for a better comparison of vanadium
mineralization recovery in core holes versus recovery in surrounding RC holes. Across the
deposit, the vanadium grade of samples recovered from core holes is equal to or slightly
greater than samples recovered from adjacent RC drilling when comparing Overall Length
mineralization. The intercept in core hole VM-5C (
181m
@ 0.157% V
2
O
5
is slightly higher than
the
181m
@ 0.143% V
2
O
5
in twin RC hole VM-38. However, when compared to the adjacent
angle RC holes, the
196m
@ 0.155% V
2
O
5
in VM-5C is identical to the
209m
@ 0.155% V
2
O
5
returned in VM-100+VM-104. Similarly, the Overall Length intercept in core hole VM-8C (
100m
@ 0.222% V
2
O
5
) is only slightly higher than the
99m
@ 0.218% V
2
O
5
returned in twin RC hole
VM-58, while the combined intercepts in adjacent angle RC holes VM-97 and VM-110 (
106m
@
0.191% V
2
O
5
) is slightly lower. Other comparisons include:
Core hole VM-2C (
103m
@ 0.244% V
2
O
5
) is clearly higher than angle RC hole VM-109
(
103m
@ 0.197% V
2
O
5
).
Core hole VM-3C (
100m
@ 0.234% V
2
O
5
) is slightly higher than angle RC hole VM-
106 (
91m
@ 0.217% V
2
O
5
).
Core hole VM-9C (
120m
@ 0.274% V
2
O
5
) is somewhat higher than RC hole VM-60 (
116m
@ 0.239% V
2
O
5
).
Figure 1: Victory’s final set of confirmation RC and diamond drill holes from Phase II are shown by
orange stars and squares, in relation to the already released Phase II drill holes in red and yellow.
Phase I drilling (grey stars and squares) are shown from 2018 program, as well as historical
Newmont and Aur Resource (USA) Inc. drill holes (grey circles and diamonds). (CNW Group/Victory
Metals Inc)
Figure 2. Cross section L-L’ showing distribution of vanadium mineralization in relation to the current
geologic interpretation. (CNW Group/Victory Metals Inc)
Figure 3. Cross section M-M’ showing distribution of vanadium mineralization in relation to the current
geologic interpretation. (CNW Group/Victory Metals Inc)
Drill Results
Assay results released today are reported in % V
2
O
5,
and intercept lengths within mineralized
horizons have been reduced to true thickness. Intercepts are reported as an Overall Length, which
includes all contiguous assay intervals within the low-grade vanadium blanket zone (at a 0.09% V
2
O
5
minimum grade), while higher grade individual zone intercepts reported as aggregate lengths are
comprised of samples grading 0.20% V
2
O
5
and greater.
Table 1.
Hole #
Zone
From (m)
To (m)
Interval (m)
% V2O5
% V
New Holes Located ALONG Section Lines L-L' & M-M'
VM 93^
Overall*
19.6
169.9
150.3
0.19
0.11
Upper Zone
31.4
84.9
11.8
0.21
0.12
New Zone
94.1
169.9
54.9
0.25
0.14
VM 97^
Overall*
20.9
142.5
121.6
0.15
0.08
Upper Zone
57.9
75.0
9.2
0.23
0.13
New Zone
99.4
139.5
23.2
0.28
0.16
VM 100^
Overall*
0.0
208.3
208.3
0.16
0.09
Upper Zone
0.0
87.2
53.4
0.28
0.15
New Zone
154.9
195.3
18.2
0.24
0.13
VM 102^
Overall*
16.0
125.5
109.5
0.16
0.09
Upper Zone
20.9
66.4
18.5
0.24
0.13
New Zone
93.5
124.3
11.1
0.24
0.13
VM 106^
Overall*
0.0
91.3
91.3
0.22
0.12
Upper Zone
2.5
37.0
3.7
0.22
0.12
New Zone
46.9
82.6
30.0
0.42
0.23
Includes
62.9
67.8
4.9
0.64
0.36
VM 109^
Overall*
0.0
185.9
185.9
0.19
0.11
Upper Zone
14.2
58.1
10.3
0.22
0.12
New Zone
82.6
179.5
47.8
0.32
0.18
VM 113^
Overall*
32.9
165.4
132.5
0.17
0.10
Upper Zone
53.2
62.3
2.3
0.21
0.11
New Zone
91.8
164.3
26.1
0.25
0.14
VM 114
Overall*
6.1
173.8
167.7
0.24
0.13
Upper Zone
6.1
54.9
29.0
0.46
0.26
Includes
33.5
39.6
6.1
0.70
0.39
New Zone
67.1
164.6
51.8
0.28
0.16
VM 120^
Overall*
0.0
163.6
163.6
0.12
0.07
Upper Zone
0.0
27.5
12.5
0.23
0.13
New Zone
101.1
162.3
32.5
0.24
0.14
VM 122^
Overall*
14.8
188.4
173.6
0.21
0.12
Upper Zone
17.5
36.3
17.5
0.54
0.30
Includes
25.6
33.6
8.1
0.71
0.40
New Zone
39.0
185.7
52.5
0.27
0.15
VM 1C
Overall*
6.1
181.4
175.3
0.26
0.15
Upper Zone
6.1
41.2
13.7
0.29
0.16
New Zone
44.2
123.5
61.0
0.47
0.26
Includes
54.9
65.5
10.7
0.90
0.50
VM 2C
Overall*
64.4
167.6
103.2
0.24
0.14
New Zone
75.6
167.6
53.1
0.35
0.19
VM 3C
Overall*
4.0
103.7
99.7
0.23
0.13
Upper Zone
4.0
32.6
7.8
0.27
0.15
New Zone
44.2
89.9
30.5
0.50
0.28
Includes
56.7
66.0
9.3
0.78
0.44
VM 5C
Overall*
0.0
196.5
196.5
0.16
0.09
Upper Zone
0.0
98.8
20.6
0.30
0.17
New Zone
109.5
184.0
30.0
0.32
0.18
VM 8C
Overall*
6.1
179.3
173.2
0.28
0.16
Upper Zone
6.1
74.4
28.4
0.34
0.19
New Zone
79.9
176.5
79.9
0.37
0.21
VM 9C
Overall*
0.0
120.4
120.4
0.27
0.15
Upper Zone
4.3
69.5
37.2
0.31
0.17
New Zone
87.7
119.2
27.0
0.53
0.28
Includes
87.7
102.7
15.0
0.61
0.34
New Holes Located OUTSIDE Section Lines L-L' & M-M'
VM 99^
Overall*
0.0
190.3
190.3
0.12
0.07
Upper Zone
0.0
7.7
7.7
0.26
0.14
New Zone
132.4
186.4
12.9
0.32
0.18
VM 101^
Overall*
0.0
184.0
184.0
0.13
0.08
Upper Zone
5.7
9.9
4.2
0.21
0.12
New Zone
100.5
179.7
45.3
0.30
0.17
VM 103^
Overall*
13.2
109.3
96.1
0.16
0.09
Upper Zone
24.0
70.9
21.6
0.25
0.14
VM 104^
Overall*
0.0
210.9
210.9
0.15
0.08
Upper Zone
0.0
51.4
43.7
0.29
0.16
New Zone
165.9
181.3
11.6
0.37
0.21
VM 107^
Overall*
2.5
80.9
78.5
0.14
0.08
Upper Zone
39.2
77.3
4.9
0.21
0.12
New Zone
100.6
101.8
1.2
0.26
0.14
VM 110^
Overall*
2.3
92.3
89.9
0.25
0.14
Upper Zone
24.5
35.0
9.3
0.28
0.16
New Zone
38.5
82.9
26.9
0.49
0.27
Includes
40.9
50.2
9.3
0.71
0.40
VM 111
Overall*
1.5
183.2
181.6
0.15
0.08
Upper Zone
`
22.5
52.5
27.0
0.25
0.14
New Zone
172.6
174.1
1.5
0.24
0.13
VM 112^
Overall*
1.3
205.4
204.1
0.08
0.04
Upper Zone
16.9
37.7
10.4
0.25
0.14
New Zone
183.3
184.6
1.3
0.23
0.13
VM 115^
Overall*
0.0
98.7
98.7
0.30
0.17
Upper Zone
6.2
38.2
28.4
0.47
0.26
Includes
6.2
14.8
8.6
0.70
0.39
New Zone
58.0
96.2
24.7
0.35
0.19
VM 116^
Overall*
2.3
94.3
92.0
0.17
0.09
Upper Zone
11.5
35.7
16.1
0.32
0.18
New Zone
57.5
93.2
10.4
0.36
0.20
EG 2
Overall*
1.5
170.7
169.2
0.23
0.13
Upper Zone
1.5
57.9
35.1
0.41
0.23
Includes
48.8
56.4
7.6
0.78
0.44
New Zone
67.1
166.2
61.0
0.24
0.14
* Overall values represent contiguous averages that include V2O5 values ranging from 0% to 1.71%
+
Hole reported in previous release
^ Denotes angle hole
QA/QC and Qualified Person
The Victory drilling program was directly supervised in the field by the QP and other site geologists
working for Victory. All RC samples were split at the drill site using a Gilson bar splitter and Jones
riffle splitter, with two samples per 5-foot (
1.52m
) sample interval collected and placed into heavy
plastic bags together with sequentially numbered sample tags. A 2kg sample was collected for
assay, while a 4kg reference sample was kept on-site. All core sample intervals were marked by
Victory personnel in the field, while the intact core was shipped directly to American Assay Lab in
Reno, NV
, where it was cut and sampled by trained core technicians under controlled conditions.
Three different vanadium standards (71 ppm V, 320 ppm V, and 5172 ppm V) and coarse blank
samples were purchased from Minerals Exploration and Environmental Geochemistry (MEG) Inc. of
Reno, NV.
Victory site geologists inserted field blank, standard, and duplicate samples into the drill
sample stream per NI 43-101 guidelines, maintaining a 1-in-20 insertion rate for each of the field
blank, standard, and duplicate samples such that every 7
th
sample is a control sample. Field
duplicate samples were split from the 4kg reference samples using a Jones riffle splitter.
Drill samples were transported by Victory personnel to locked storage sheds rented by Victory and
located in
Golconda, NV
, about 14km west of the project area. Samples were picked up in
Golconda
by American Assay Laboratories utilizing its own truck and driver and transported directly
to American Assay's facility in
Reno, NV.
At American Assay Laboratories, the RC and core
samples were crushed to 70% passing 2mm, and then a 0.3km split was ground to 85% passing 75
micron. A 0.5gm split was digested in a 5 acid process (ICP-5A035 method uses HNO3, HF, HClO4,
HCl, H3BO3) and analyzed via ICP-OES. The detection limit for vanadium is 1ppm, the upper limit is
10,000ppm, and sample results are reported in PPM V. As a separate QAQC check, American
Assay inserted laboratory standards, blanks, and duplicates into the sample stream. American
Assay Laboratories is accredited by the International Accreditation Service, which conforms with
requirements of ISO/IEC 17025:2005.
Victory is currently using SGS Canada Inc. to perform umpire assays on 1-in-40 drill pulps obtained
from American Assay Laboratories and submitted to SGS Canada in
Burnaby, B.C.
Victory is re-
numbering the pulp samples and inserting the same field standard and blanks into the sample stream
in order to better compare results between the two labs.
The scientific and technical information in this news release has been reviewed and approved by
Calvin R. Herron
, P.Geo., who is a Qualified Person as defined by National Instrument 43-101.
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 Palisades Goldcorp (48%), and
management, directors and founders (27%). Approximately 28% of the Company's issued and
outstanding shares are subject to an escrow release over the next two years.
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.
SOURCE
Victory Metals Inc
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%SEDAR: 00015775E
For further information:
Collin Kettell at [email protected] or (301) 744-8744
CO: Victory Metals Inc
CNW 08:30e 02-APR-20