White Metal Receives Channel Sample Results from the Gunners Cove Gold Project
White Metal Receives Channel Sample Results from the
Gunners Cove Gold Project
Thunder Bay, Ontario--(Newsfile Corp. - October 22, 2018) -
W
hite
Metal Resources Corp. (TSX
V: WHM)
("White Metal" or
the "Company") announces that it has received the assay results from the recently completed channel sampling program at its
Gunners Cove Gold Property (the "Property" or "Project"), located in northwestern Newfoundland. The Company is compiling all
the work to date including mapping, prospecting samples, trench samples and airborne geophysical data to determine the best
way to advance the project. The majority of the 689 channel samples returned below detection gold (<5 ppb Au) with only a few
anomalous gold concentrations ranging from 5 to 209 ppb Au. Although disappointing as a first pass of detailed channel
sampling, management's technical team remains encouraged about the Property and is committed to continued exploration and
examining alternatives to furthering development at Gunners Cove.
The Gunners Cove Gold Property is an exceptional new discovery of an unexplored gold system that has been traced
intermittingly for approximately 18 kilometres along strike (north-south) and from 1.3 to 3.0 kilometres in width (east-west). To
date, 16 gold zones have been identified as target areas on the basis of prospecting and grab sampling, returning anomalous
gold (>100 ppb Au) in more than 50% of the grab samples and up to 5.86 g/t Au, 8.0 g/t Ag, and 0.13% Cu. These early results
were encouraging enough to initiate the detailed channel sampling program at the following zones (from north to south) East
Gunners, Mossberg, Gunners Hidden Pit, Stevens, and Bazooka Island zones (see Press Release dated October 4, 2018).
Selected detailed gold zone coverage by this first channel sampling program examined a very small percentage of the Project
area, having an initial look at 5 of the 16 gold zones discovered to date by prospecting. There is still much to learn about the
geological environment of the Property, but there are undoubtedly theories that the gold-bearing trends occur in a unique and
areal extensive geological environment and defining, interpreting, and targeting will take considerable time and effort.
Other examples of black shale hosted gold environments which share some broad similarities to the Project include Kalgoorlie
Goldfields, Australia, where anomalous gold is associated with nodular pyrite in black shales, and Shukio Log, Russia, where
gold-rich pyrite nodules in black shales host resources of 384 million tonnes, grading 2.5 to 2.7 g/t Au, lower grade resources of
165 million tonnes at 2.0-2.3 g/t Au, and a further 205 million tonnes at 0.8 g/t Au (
www.smedg.org.au/apr03BryceWood.pdf
).
These two examples represent very complex systems which took many years of exploration, sampling and drilling to understand
and vector in on the principal areas of mineralization.
The black shale-hosted gold environment on the Property, with an enrichment of +25 ppb Au, is highly anomalous, and technical
experts indicate that much more work is warranted. The Company will continue to evaluate all of the results to date and the
known gold showings and look to engage other experts with respect to this type of gold environment.
Since the initial gold discovery in September 2017, the Company has had excellent success at the Gunners Cove Gold Property
and geological controls of known gold mineralization can be summarized as follows:
Anomalous and moderate grade gold assays are associated with 2% to 10% pyrite nodules, discontinuous stringers,
fragments and cubic crystals.
The gold zones are hosted in a geological distinctive unit of chaotic, multi-lithic breccia with a predominately graphitic and
mudstone matrix. This unit is associated with regional thrust faulting and referred to as a melange.
The higher pyrite content appears to be associated with well-foliated (sheared) graphitic melange.
This melange can be mapped over horizontal widths of up to 1.3km, however the full extent of the melange is not
understood at this time.
The unit appears to be located at the base of a sedimentary-ultramafic package and has been
extended as a discontinuous unit over an area measuring approximately 18km by 3km.
Anomalous silver, copper and molybdenum are also associated with the gold mineralization.
In furtherance of the advancement of the Gunners cove Gold Poject, White Metal is very pleased to engage Robert Middleton,
P.Eng as the senior consulting geologist on the Gunners Cove Gold Project. Robert Middleton, P.Eng is a seasoned geologist
who has reviewed numerous gold producers in North America and many other deposits worldwide and has observed many
different geological gold settings. He has also worked on gold deposits in South Africa, Kyrgestan and Europe and, as a result,
he has wide knowledge of many geological settings for gold.
White Metal's technical consultants and geologists and its board believe that this widespread geological knowledge of Robert
Middleton, P.Eng. is one of possibly several additions that is required at this stage to comprehend the Gunners Cove Gold
Project in order to have a better undertstanding of potential opportunities and potential follow-up work. Of significance, Robert
Middleton was chief geophysicist and Vice President of Rosario Resources and in this capacity he worked on many gold
settings in North America and Central America and the Carribean and, in particular, worked very extensively on the Pueblo Viejo
gold deposit in the Dominican Republic, which is situated on a major thrust fault on a plate boundary with deformed
metasediments such as argillites and graphitic sediments containing sulphides with low grade .14 oz per tonne gold values. This
setting is believed by some technical experts to be similar to the Gunner Cove Gold Project in that there is an extensive
deformation zone consisting of deformed metasediments and graphitic rocks with sulphides.
At Pueblo Viejo, for example, these sediments occur beneath a tropical weathered zone that was mined as oxide ore and work
has continued to this date by Barrick Gold Corporation (TSX: ABX) mining the graphitic sulphide zone. The Pueblo Viejo mine
was originally developed by Rosario Resources Corp. and brought forward in 1975. It was nationalized in 1979 and continued to
operate and being managed by Rosario Dominicana until it was taken on by Placer Dome which was subsequently bought by
Barrick Gold Corporation which now operates the mine in a JV with Goldcorp Inc. (TSX:G). Pueblo Viejo are mining the footwall
sediments with sulphides and low grade gold values of approximately .13 oz per tonne. Robert Middleton believes that the gold
is locked up in the graphite and sulphides similar to
pyrite and sphalerite at Pueblo Viejo and the Gunners Cove Gold Project is
hypothesized by him to be similar to the Pueblo Viejo foot wall zone and the Russian deposit of Sukhoi Log mine, the Austraian
Kargoorlie mines associated with black shale or the Paracatu mine in Brazil, operated by Kinross Gold Inc. (TSE:K).
Jean-Pierre Colin, President & CEO of White Metals, commented, "Previous assay results from our prospecting grab sampling
programs do not compare well with results from our recently completed channel sampling program. Nonetheless, our board of
directors is confident that given further exploration and interpretation, including possible additional sampling programs, White
Metal can possiby demonstrate the prospectivity of the Project. Our short-term plan is to engage several geologists and to
promote the creation of an advisory board to study in more detail what is now better known about the Gunners Cove Gold
Property and discuss requirements for future exploration. We look toward early 2019 for the implementation of additional work
on the Property, if warranted by our geologists and consultants. In the meantime, White Metal continues to examine and
negotiate alternative properties of merit to add to its portfolio. On behalf of the entire board of directors of White Metal, we
recognize and thank our employees, our consultants and all our loyal shareholders for their continued support."
Technical information in this news release has been reviewed and approved by Dr. Scott Jobin-Bevans (P.Geo.), Vice President
Exploration and a Director of White Metal, who is a Qualified Person under the definitions established by the National Instrument
43-101.
For more information in regards to the Gunners Cove Property you can visit the company's Web Page at
www.whitemetalres.com
.
About White Metal Resources Corp
(TSXV: WHM):
White Metal Resources Corp is a junior exploration company exploring in Canada and currently has 35,691,073 common shares
issued and outstanding.
On behalf of the Board of Directors of White Metal Resources Corp.
"Michael Stares"
Michael Stares,
Director
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ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities
legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of
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Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to
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and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks
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completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill
results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost
estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the
possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks
related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's
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risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from
those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking
statements.
These forward
-
looking statements are made as of the date hereof and the Company does not assume any
obligation to update or revise them to reflect new events or circumstances.
Actual events or results could differ materially
from the Company
's expectations or projection.
For further information contact:
Michael Stares
684 Squier Street
Thunder Bay, Ontario, Canada, P7B 4A8
Phone: (807) 628-7836 Fax (807) 475 7200