Minfocus Exploration Grows MVT Zinc Portfolio with Agreement to Earn 100% Interest in Daniel’s Harbour Zinc Project in Newfoundland covering the Former Teck Corporation Newfoundland Zinc Mine
Minfocus Exploration Grows MVT Zinc Portfolio with Agreement to Earn
100% Interest in Daniel’s Harbour Zinc Project in Newfoundland covering
the Former Teck Corporation Newfoundland Zinc Mine
February 13, 2018 - Minfocus Exploration Corp. (TSXV: MFX) (“Minfocus” or “Company”)
announces the signing of a letter of intent with Kapuskasing Gold Corp. (TSXV: KAP) to acquire a 100%
interest in 72 claims (1,800 hectares) including 42 claims covering the former Teck Corporation
Newfoundland Zinc Mine located about 10 km northeast from the community of Daniel’s Harbour,
Newfoundland (see attached map). Altius Minerals Corporation has acquired two licenses comprising
360 claims (9,000 hectares) immediately adjacent to the former Daniel’s Harbour Zinc Project. There has
been no significant exploration in the area for almost 30 years. The Daniel’s Harbour Zinc project is
accessible via paved highway and has well-developed infrastructure including a nearby deep-water port
and a major power transmission line. The agreement is still subject to TSXV approval.
Importance of Mississippi-Valley-Type Deposits
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). The zinc mineral, sphalerite, is a
zinc-iron sulphide, which has variable proportions of the zinc and iron from mine to mine. At the
Newfoundland Zinc Mine, much of the sphalerite contained very little iron, <2.5% Fe in all but one early
phase of ore deposition, which resulted in a classic honey yellow-coloured sphalerite.
Former Teck Newfoundland Zinc Mine
In 1975, Teck started commercial production 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. For most of the life of the mine, the price of zinc averaged annually
about $0.40 USD per pound ($880 USD per tonne). On Feb 1, zinc prices hit a new multi-year high of
$1.64 USD per pound (+$3,600 USD per tonne).
Exploration Potential at Daniel’s Harbour Zinc Project
“I remain convinced to this day that there is more beautiful, iron-free yellow zinc ore buried
there somewhere…”, Norman B. Keevil, Chairman of the Board, Teck Resources Limited1
Zinc mineralization at the Daniel’s Harbour Zinc Project generally occurs in long, narrow,
northeast-trending bodies. In the mine area, a total of 21 “zones” were recognized and named
alphabetically from ‘A’ to ‘W’. MVT deposits do characteristically occur in clusters, referred to
as ‘districts’. The ‘L’ zone was among the largest of these ore bodies which produced 3.8
1 Never Rest on Your Ores, Building a Mining Company, One Stone at a Time (2017), Norman B. Keevil
million tons at 8.5% zinc, which was comprised of several long tabular bodies which roughly
trend NE-SW and plung gently to the SW. The ‘L’ zone reached a depth of 135 metres and a
length of 3000 metres that was accessed from surface by an incline.
Kenneth de Graaf, President and CEO of Minfocus, noted, “Minfocus has assembled a tier one
group of global MVT experts and experienced on-the-ground MVT explorers in western
Newfoundland. We believe it is likely that the Daniel’s Harbour Zinc Project may have the
potential to host several more high-grade zones within the upper stratigraphic horizon
historically associated with the Newfoundland Zinc Mine deposit, as recent announced drilling in
the nearby mine areas has demonstrated. Minfocus can also see that there has been little
attention given to lower stratigraphic horizons at Daniel’s Harbour that should still be easily
accessible from surface and have equal potential for discovery of new mineralized zones.”
The Daniel’s Harbour Zinc Project is prospective for further MVT sphalerite zinc deposits.
There remains potential in the area of the old mine workings of the historic ore bodies continuing
at depth or along known mineralized breccia horizons.
Dr. Francis T. Manns, P.Geo (ON), Minfocus MVT Specialist, has observed that, “Exploration
during the development and life of the Newfoundland Zinc Mine operated by Teck was
concentrated on outcropping mineralisation found in soil surveys, and geological mapping
underground, which was driven by necessity due to the low zinc prices prevalent at the time and
the fact that Teck was never particularly flush with capital. Exploration was limited to the
mineralized horizons originally discovered. We know from our own experiences in western
Newfoundland that there are mineralized horizons less than 100 metres below the zones mined at
Daniel’s Harbour, however, little exploration has been directed at the lower units which could
have similar potential to the previously exploited deposits at the Newfoundland Zinc Mine.”
Agreement with Kapuskasing Gold to Acquire a 100% Interest in Daniel’s Harbour
Minfocus has signed a letter of intent agreement with Kapuskasing Gold Corp. (“KAP”) to
acquire a 100% interest in the Daniel’s Harbour Zinc Project from KAP over a two-year period
for total consideration of 10 million Minfocus shares and a work commitment of $200,000
within the first 24 months. Under the option agreement that KAP acquired its interest in the
project, it shall be responsible for the next cash payment of $10,000 and issue 750,000 KAP
shares to the original optionees. Minfocus will be responsible for the remaining $40,000 cash
payment to the optionee due on or before September 9, 2021. KAP shall retain a 1.0% NSR
interest, which Minfocus retains the option to buy back 0.75% of the NSR interest for $1.5
million until 2025 or $3.0 million thereafter. In addition, the original optionees shall retain a
3.0% NSR, which Minfocus shall have the option to buy back 2.0% of that NSR interest for $2.0
million. A formal option agreement should follow.
Jonathan Armes, President of Kapuskasing, stated, “We are pleased to be combining our
Daniel’s Harbour Zinc Project with the Minfocus MVT Zinc portfolio. This agreement is with
an exceptional MVT exploration group with direct experience in western Newfoundland and
provides KAP with a substantial interest in Minfocus’s other MVT zinc projects in Canada. In
the hands of Minfocus, the Daniel’s Harbour project should get the benefit of their expertise and
experience while allowing KAP to focus on the advancement of its Lady Pond Copper Project
near Springdale, Newfoundland.”
Minfocus Corporate Update
Minfocus announces the appointment of Neil V. Froc, P.Eng. to the Board of Directors of
Minfocus. He is replacing Phil D’Mello who has recently resigned to pursue other business
interests. We thank Mr. D’Mello for his valuable contributions and service to the Board and the
shareholders.
GreenBank Capital Inc. (CSE:GBC) recently announced it has agreed to acquire 14,300,000
Minfocus shares from Gerald Harper, former director of Minfocus, representing 19.62% of the
outstanding shares of Minfocus. The GreenBank Capital portfolio of equity investments
includes 27% of Ubique Minerals Limited, a private zinc exploration company in Newfoundland
with properties in the Daniel’s Harbour area.
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 P latinum 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.