Minfocus Exploration Extends MVT Zinc Portfolio in Newfoundland with Agreement to Earn 100% Interest in Round Pond Zinc Project
Minfocus Exploration Extends MVT Zinc Portfolio in Newfoundland
with Agreement to Earn 100% Interest in Round Pond Zinc Project
March 4, 2018 - Minfocus Exploration Corp. (TSXV: MFX) (“Minfocus” or “Company”) announces
an agreement to acquire a 100% interest in the Round Pond Zinc Project comprising 30 claims (750
hectares) covering the former Cominco Round Pond Prospect located on the Northern Peninsula in
Western Newfoundland about 13 km south of Hwy 430. The Round Pond Prospect has an historic
resource of 400,000 tons grading 2.0% zinc. Also, within the Round Pond Zinc Project is the Phillips
Prospect which also has an historic resource of 89,000 tons grading 1.5% zinc, which is about 700 metres
southwest of the Round Pond Prospect. The Round Pond Zinc Project is situated close to paved highway
and has infrastructure including power transmission lines and nearby tidal water. The agreement is still
subject to TSXV approval.
Kenneth de Graaf, President and CEO of Minfocus, noted, “The addition of the Round Pond
Zinc Project to the Minfocus portfolio of MVT projects in Newfoundland is an indication that we
believe that the Northern Peninsula of Newfoundland could still hold significant potential to host
zinc discoveries similar to the former Teck Newfoundland Zinc Mines.”
Mississippi-Valley-Type Deposits in Newfoundland
Minfocus continues to target Mississippi-Valley-Type (“MVT”) carbonate-hosted zinc and lead deposits.
These MVT deposits, compared to other types of zinc deposits (Sedex and VMS), are typically
metallurgically simpler to process and are the source of the higher quality zinc concentrates that are
preferred by custom zinc smelters due to the exceptionally pure high-grade zinc concentrates produced
(up to 63% zinc in concentrates and low-iron with minor impurities).
In 1975, Teck started commercial production at the Newfoundland Zinc Mines from an initial proven
deposit with 4.45 million tons of 8.78% zinc ore. The ore was exposed at the surface and was accessed
by open pits and inclined ramps which combined to result in an initial low-cost 1,500 ton per day mining
and milling operation that operated until 1990 after producing a total of 7.22 million tons of ore averaging
7.93% zinc over the life of the Newfoundland Zinc Mine.
Round Pond Zinc Project
In 1970, Cominco identified “widespread zinc geochemical anomalies over a 13 square-mile area
with “the highest grade and greatest concentration of values … in the vicinity of the Round
Pond.” Subsequent drilling of the anomalies by Cominco reported extensive zinc mineralization
with 59 of 82 drill holes intersecting visible sphalerite. The best holes found by Cominco
included 22 feet grading 3.3% zinc and 10 feet grading 6.4% zinc. Following up on the Cominco
work, Narex Ore Consultants completed a drill program in 1983 at Round Pond comprising 26
holes of just under 2,100 feet of drilling. The Narex drilling, combined with the previous
Cominco work, indicated the presence of a “pod” of zinc mineralization of approximately
400,000 tons grading 2.0% zinc. Based on the presence of “… sections of solution breccia
together with minor sphalerite in many holes”, Narex suggested, “that several similar sized or
larger “pods” could well be found in the vicinity of Round Pond.”
Dr. Francis T. Manns, P.Geo (ON), Minfocus MVT Specialist, has observed that, “We think the
mineralization at the Round Pond Zinc Project is at the same stratigraphic level as at the former
Newfoundland Zinc Mines at Daniel’s Harbour.”
Agreement to Acquire a 100% Interest in Round Pond
Minfocus has signed an agreement to acquire a 100% interest in the Round Pond Zinc Project
over a two-year period for total consideration of up to 5.25 million Minfocus shares plus the
grant of a 2.0% NSR royalty. Minfocus shall retain the option to buy back 1.25% of the NSR
royalty for $1.5 million to reduce the royalty to a 0.75% NSR interest.
About Minfocus Exploration Corp.
Minfocus Exploration Corp. is a Canadian company currently advancing a portfolio of base metal projects
including zinc and nickel projects in British Columbia and a Platinum Group Element (“PGE”) rich nickel
project in N.W. Ontario. Minfocus has a successful management group with a record of multiple
discoveries of deposits worldwide, including gold and uranium deposits in Mongolia and PGE -rich
resources in Ontario, i ncluding the discovery of the first Platinum -rich Pt-Pd-Cu-Ni deposit in the
Midcontinent Rift, the Current Lake deposit (+700,000 oz. Pt-Eq).
For further information, please contact:
Kenneth B. de Graaf
President & Chief Executive Officer
Email: [email protected]
The Qualified Person who has reviewed and approved the technical content contained in this release is Dr. G raham C. Wilson ,
P.Geo.(Ont), a director of Minfocus.
Neither the TSX Venture Exchange nor its Regulatory Services Provider (a s that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release includes certain forward -looking statements concerning the future performance of the Company’s business and
operations as well as management’s objectives, strategies, beliefs and intentions. Forward -looking statements are often identifiable
by the use of words such as “may”, “will”, “might”, “would”, “plan”, “believe”, “expect”, “anticipate”, “int end”, “estimate”,
“scheduled”, “forecasts” and similar expressions or variations (including negative variations) of such words and phrases.
Forward-looking statements are based on the current opinions and expectations of management and are subject to a nu mber of risks
and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from t hose
currently anticipated by such statements. Factors that could cause actual results or events to differ materiall y from current
expectations include, among other things, the possibility that future exploration results will not be consistent with the Com pany’s
expectations, fluctuating commodity prices, delays in commencing the Company’s proposed drilling program, exp loration costs
varying significantly from estimates, the availability of financing, and other risks identified in the Company’s documents fi led with
the Canadian securities regulatory authorities at www.sedar.com. Any forward-looking statement speaks only of the date on which it
is made, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to updat e any
forward-looking statement.