Titan Mining Continues to Expand the #2D Historic Mineralized Zone and Establishes US$18.7 Million Credit Facility
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Titan Mining Continues to Expand the #2D Historic Mineralized Zone and
Establishes US$18.7 Million Credit Facility
Vancouver, B.C., January 16, 2019 – Titan Mining Corporation (TSX:TI) (“Titan” or the “Company”)
today provided an update on its exploration program at the Empire State Mine (“ESM”). In the fourth
quarter of 2018, the program focused on the down-plunge extension and infill drilling of the #2D zone.
This zone is an extension of the large #2 mine which accounted for approximately half of the tons mined
historically at ESM. The #2D zone and the #1D zone, which lies stratigraphically below, both contain
unmined historic mineralized material.
Significant mineralized intervals from the #2D and #1D zones include:
52.8 feet assaying 8.6% zinc (#2D)
o including 6.3 feet assaying 25.6% zinc
21.1 feet assaying 11.8% zinc (#2D)
o including 9.3 feet assaying 23.3% zinc
103.4 feet assaying 6.0% zinc (#2D)
o including 16.2 feet assaying 8.8% zinc
35.4 feet assaying 5.6% zinc (#2D)
o including 11.3 feet assaying 12.2% zinc
43 feet assaying 7.9% zinc (#2D)
o including 10 feet assaying 15.4% zinc and 7.6 feet assaying 18.0% zinc
9.2 feet assaying 25.7% zinc (#1D)
Exploration drilling continues to expand the #2D mineralized zone down-plunge to the northeast and
laterally. To date, the #2D zone has been extended by over 1,380 feet down-plunge from the historic
mineralization, including an additional 660 feet from the previously-announced major expansion of the
zone (refer to news release dated November 14, 2018). The assay results highlighted in this news
release are from both step-out and infill drill holes which intersected multiple mineralized horizons, and
demonstrate the continuity of mineralization along strike and laterally in the #2D zone. The location of
this zone, approximately 650 feet east of the #4 shaft and at an elevation above the bottom of the shaft,
is expected to provide strong operational advantages.
The recent drilling also intercepted high-grade mineralization in the #1D zone, located approximately
275 feet below the #2D zone, and in the same stratigraphic layer as the historic #1 mine. This
mineralization, believed to be the down-plunge portion of the #1D zone, is one of several targets that
are located close to the current mine infrastructure and have the potential to increase the near-mine
mineral resource base.
“The recent drilling has more than doubled the strike length of the historic #2D zone and confirmed the
continuity of mineralization,” said Scott Burkett, Vice President, Exploration. “Our drill results to date
clearly indicate that there is potential to double or even triple the tonnage of the #2D historic unmined
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mineralized material of 931,000 tons at a fully diluted grade of 6.6% zinc. We are also excited about the
2019 exploration program that will test a number of new district targets and near-mine zones that could
further extend the mine life at ESM.”
Donald Taylor, Chief Executive Officer of Titan, commented, “The #2D zone is a low cost development
opportunity which will allow mine production to be expanded at ESM, utilizing excess capacity in the
mill. Now that we have laid the foundation for near-term growth at ESM, we can focus more fully on our
numerous high priority exploration targets to drive longer-term growth and mine life extension in this
very prospective district.”
SX18-2456 is a vertical infill hole drilled from surface. The drill hole intercepted three mineralized
zones – Sylvia Lake, #2D and #1D zones – and links the #2D mineralization from previously -
reported holes SX18-2441 and UX18-001 which are 550 feet apart (refer to news release dated
November 14, 2018 for information on these and other previously-reported drill holes). The hole
confirms the continuity of mineralization down-plunge to the north-northeast. Notable mineralized
intervals were:
52.8 feet assaying 8.6% zinc (#2D)
o including 6.3 feet assaying 25.6% zinc
21.1 feet assaying 11.8% zinc (#2D)
o including 9.3 feet assaying 23.3% zinc
SX18-2458 is a vertical infill hole drilled from surface. The drill hole had five intercepts in the #2D
zone, 360 feet to the north-northeast of the historic mineralization and 290 feet south-southeast
of hole SX18-2456. The hole demonstrates the continuity of mineralization laterally within the
mineralized zone. Significant mineralized intervals were:
43 feet assaying 7.9% zinc (#2D)
o including 10.0 feet assaying 15.4% zinc and 7.6 feet assaying 18% zinc
65 feet assaying 2.8% zinc (#2D)
o including 8.0 feet assaying 9.9% zinc
SX18-2449 is a vertical infill hole drilled from surface. The drill hole had three intercepts in two
horizons with significant mineralization in the #2D zone. The hole was drilled 280 feet to the north-
northeast of the historic mineralization and between previously -reported holes SX18 -2441 and
SX18-2442. A notable mineralized interval was:
103.4 feet assaying 6.0% zinc (#2D)
o including 16.2 feet assaying 8.8% zinc
SX18-2448 is a vertical step-out hole drilled from surface. The drill hole had five intercepts in two
mineralized horizons in the #2D zone, extending the historic mineralization 400 feet to the north-
northeast. A noteworthy mineralized interval was:
68 feet assaying 4.9% zinc (#2D)
o including 9.4 feet assaying 8.9% zinc
UX18-004 is an inclined infill underground drill hole. The drill hole had four intercepts in two
mineralized horizons in the #2D zone, linking the historic mineralized zone from the southwest to
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the previously-reported step-out drill holes UX18 -001 and UX18-002. A noteworthy mineralized
interval was:
35.4 feet assaying 5.6% zinc (#2D)
o including 11.3 feet assaying 12.2% zinc
UX18-005 is an inclined step-out underground drill hole. The drill hole had three intercepts in the
#2D zone, which extend the zone approximately 750 feet down -plunge from the historic drilling.
Notable mineralized intervals were:
36.1 feet assaying 3.7% zinc (#2D)
12.5 feet assaying 8.8% zinc (#2D)
o including 4.3 feet assaying 21.2% zinc
UX18-006 is an inclined step-out underground drill hole. The drill hole intercepted two mineralized
zones, extending the #2D mineralization 1,250 feet down-plunge from the historic drilling. It also
intercepted a high-grade zone below the #2D zone which is believed to be an extension of the
#1D historic mineralization. A significant mineralized interval was:
9.2 feet assaying 25.7% zinc (#1D)
For a full list of the #2 D, #1D and Sylvia Lake mineralized intervals from these holes, refer to
Table 1.
Figure 1 is a plan view of the #2D zone showing the location of the drill holes and selected
significant mineralized intervals.
Figure 2 is a schematic long section looking southwest, showing the #2D zone and other near -
mine mineralized zones at ESM.
2019 Exploration Program
The 2019 exploration budget at ESM is US$9 million. In the first quarter of the year, Titan plans
to spend approximately US$3 million on exploration drilling to test near-mine and district targets.
The district exploration program targets areas that have the potential to host deposits of at least
five million tons with an economic grade. High priority targets include Talcville and Cronus where
talc deposits have been mined historically and may be the alteration product of a mineralizing
event. In the area around the historic Edwards mine , untested targets occur in the favourable
marbles that host the mine. Drilling continues with five exploration drills.
During the first half of 2019, Titan expects to complete an updated mineral resource estimate and
development plan for the #2D zone.
Establishment of US$18.7 Million Credit Facility
As previously announced, Titan’s Executive Chairman comm itted to financing the Company’s
operations into 2019. In that regard, the Company and a company controlled by Titan’s Executive
Chairman (the “Lender”) entered into a second ranking secured credit facility of up to US$18.7
million, maturing in December 2020. US$3.7 million of such facility bears interest at 8% per annum
with the remaining US$15.0 million accruing interest at a floating rate equal to 7% plus LIBOR per
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annum. The Bank of Nova Scotia has consented to this facility provided it is subordinate t o its
existing first-ranking credit facility provided to the Company in the first half of 2018.
In consideration for the facility, the Company also agreed to issue to the Lender an aggregate of
2,500,000 warrants (the “Warrants”) with each Warrant being exercisable for one common share
of the Company for a period of five years, at an exercise price of CAD$1.40.
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Table 1 – Recent Exploration Drill Results from ESM
Note: It is not possible to determine the true width of the zone (s) based on the drill density and no representation is
made here regarding true width of the zone(s).
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Figure 1 – Plan View of #2D Zone Showing Drill Hole Locations
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Figure 2 – Schematic Long Section Showing #2D and Other Near-Mine Mineralized Zones
at ESM
Qualified Person
The results of the Titan drilling have been reviewed, verified and compiled by Donald R. Taylor,
MSc., PG, Chief Executive Officer of Titan, a qualified person as defined by National Instrument
43-101 (NI 43-101). Mr. Taylor has 3 0 years of mineral exploration and mining experience, and
is a Registered Professional Geologist through the SME (registered member #4029597).
Assays and Quality Assurance/Quality Control
To ensure reliable sample results, the Company has a rigorous QA/Q C program in place that
monitors the chain -of-custody of samples and includes the insertion of blanks and certified
reference standards at statistically derived intervals within each batch of samples. Core is
photographed and split in half with one-half retained in a secured facility for verification purposes.
Sample preparation (crushing and pulverizing) has been performed at ALS Geochemistry, an
ISO/IEC accredited lab located in Sudbury, Ontario, Canada. ALS Minerals Laboratories prepares
a pulp of all samples and sends the pulps to their analytical laboratory in Vancouver, B.C. ,
Canada, for analysis. ALS analyzes the pulp sample by an aqua regia digestion (ME -ICP41 for
35 elements) with an ICP – AES finish including Cu (copper), Pb (lead), and Zn (zinc). All samples
in which Cu (copper), Pb (lead), or Zn (zinc) are greater than 10,000 ppm are re -run using aqua
regia digestion (Cu -OG46; Pb-OG46; and Zn -OG46) with the elements reported in percentage
(%). Silver values are determined by an aqua regia digestion with an ICP-AES finish (ME-ICP41)
with all samples with silver values greater than 100 ppm repeated using an aqua regia digestion
overlimit method (Ag -OG46) calibrated for higher levels of silve r contained. Gold values are
determined by a 30 g fire assay with an ICP-AES finish (Au-ICP21).
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About Titan Mining Corporation
Titan is an Augusta Group company which produces zinc concentrate at its 100%-owned Empire
State Mine (“ESM”) located in New Yor k State. ESM is a group of zinc mines which started
production in the early 1900s. Titan is built for growth, focused on value and committed to
excellence. The company’s shares are listed under the symbol "TI" on the Toronto Stock
Exchange. For more inform ation on the Company, please visit our web site at
www.titanminingcorp.com.
Contact
For further information, please contact:
Jerrold Annett – Senior Vice President, Corporate Development
Telephone: 416-366-5678 Ext. 207 | Email: [email protected]
Jacqueline Allison – Vice President, Investor Relations and Strategic Analysis
Telephone: 416-366-5678 Ext. 205 | Email: [email protected]
Cautionary Note Regarding Forward-Looking Information
This news release contains certain forward -looking statements. Words such as “expects”,
“anticipates” and “intends” or similar expressions are intended to identify forward -looking
statements. Forward -looking information is necessarily based on a number of opinions,
assumptions and estimates that, while considered reasonable by the Company as of the date of
this press release, are subject to known and unknown risks, uncertainties, assumptions and other
factors that may cause the actual results, use of proce eds or timing of events to be materially
different from those expressed or implied by such forward -looking information, including but not
limited to the factors described in greater detail in the “Risks and Uncertainties” section and other
sections of the Company’s Management’s Discussion and Analysis for the year ended December
31, 2017, available at www.sedar.com. No securities regulatory authority has expressed an
opinion about the securities described herein and it is an offence to claim otherwise. Tita n
undertakes no obligation to publicly update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise, except as may be required by law.