VR discovers Lithium – REE mineralization at Hecla-Kilmer copper-gold project in northern Ontario, stakes new properties and commences gravity survey. NR-21-08
VR RESOURCES LTD.
2300 – 1177 West Hastings St.
Vancouver, BC, Canada, V6E 2K3
Tel: 604-262-1104; [email protected]
TSX.V: VRR; www.vrr.ca
VR discovers Lithium – REE mineralization at Hecla-Kilmer copper-gold project in
northern Ontario, stakes new properties and commences gravity survey.
NR-21-08
March 1 1, 2021, Vancouver, B.C.: VR Resources Ltd. (TSX.V: VRR, FSE: 5VR; OTCQB: VRRCF ), the
"Company", or “VR”, is pleased to provide an update on compiled and integrated geochemical data from
the recent four-hole reconnaissance drill program completed late in 2020 at its Hecla-Kilmer carbonatite
property and copper-gold breccia target in northern Ontario (“H-K”). Results include:
• A broad intersection of lithium mineralization discovered in drill hole HK20-002;
• Broad intersections of critical minerals, niobium-thorium-REE (rare earth elements), discovered in
drill holes HK20-002 and 004, with corresponding high density profiles confirmed in XRF scanning;
• Detailed ground-based gravity survey is now underway to identify potential high density anomalies
related to either copper-sulfide mineralization, and/or niobium-REE concentrations (Figure 1).
Context
As described in the previous news release dated December 17th, 2020, fluorite-rich hydrothermal breccia
and iron sulfides were intersected within a high temperature, potassic alteration s ystem which comes to
surface and has more than 600 m of continuous vertical extent in two drill holes, HK20-002 and 004. The
Company has now received, integrated and interpreted all geochemical assay data and XRF mineral
scanning data obtained from the four holes totalling 1,971 metres completed last fall.
Key Results
• Chalcopyrite mineralization is confirmed in veinlets and scattered semi-solid sulfide replacement
zones within hydrothermal breccia, with 1m assays of up to 0.12% copper (Photo 1). It occurs with
hematite, magnetite , pyrite and apatite in zones of intense fenitization (potassic alteration)
around and within phonolite dykes which are themselves elevated in gold, with 15-184 ppb gold
over several + 40 metre intervals in drill hole HK20 -002. A high density profile of 3.46 g/cm3 is
confirmed by XRF specific gravity scanning across the zone of copper mineralization.
Complete geochemical and XRF (X-ray fluorescence) analytical datasets demonstrate two significant new
aspects to the mineral system at H-K:
• Intersections of critical mineral and REE mineralization span 49 m etres starting at 50 m depth in
HK20-004 and more than 20 metres at 574m depth in HK20-002 (Figure 2). They contain:
o Up to 0.56 % combined La2O3, Ce2O3, and Y2O3 ;
o Elevated thorium up to 0.15 % ThO2 ;
o Anomalous niobium up to 0.13 % Nb2O5 ;
o As much as 33.7 ppm terbium, a heavy REE.
The mineralization occurs in red-hued hydrothermal breccia with digested clasts of sovite dykes
(Photo 3 ) and intense potassic alteration overprint ( Photo 4 ). The two intersections have
anomalous specific gravity profiles of 3.12 g/cc and 3.21 g/cc respectively , and their correlation
across two drill holes some 200 m apart implies that the critical metal and REE mineralizing system
at H-K has a vertical extent of more than 600 metres (see graphic logs in Figure 2).
VR RESOURCES LTD.
2300 – 1177 West Hastings St.
Vancouver, BC, Canada, V6E 2K3
Tel: 604-262-1104; [email protected]
TSX.V: VRR; www.vrr.ca
• Lithium mineralization occurs in a broad interval of fluorite-carbonate hydrothermal breccia with
0.045 % LiO2 over 19.4 metres in drill hole HK20-002 (Figure 3). Light blue-gray alteration hues in
the breccia is attributed to minerals such as spodumene. Fragmented and partially digested
sovite-carbonatite dykes are common in these breccia zones ( Photo 2 ). Heavy REE’s such as
terbium are also anomalous in this zone alongside the HREE indicator yttrium.
The high density profiles of the niobium – REE mineralization correlate with high phosophate and are
therefor attributed to minerals such as pyrochlore, monazite and potentially allanite. Such minerals are
favourable for REE recovery and are common within the niobium deposits at Oka in Quebec and Argor in
northern Ontario, but they are also present in association with copper-gold mineralization in IOCG
deposits such as Palabora in South Africa and Olympic Dam in Australia.
Follow Up
A detailed ground-based gravity survey is now underway. It covers a roughly 3.5 x 1.5 km area over all of
the magnetic and EM targets previously outlined, and is focussed on the margins of the syenite intrusion
that cores the polyphase carbon atite complex at H-K (Figure 1). The survey will include between 600 to
700 stations on an equant 100m grid, and is anticipated to take two weeks to complete. The company
will complete 3D inversion processing and modeling of the data upon completion of the field survey. The
goal of the gravity survey is to identify high density copper sulfide or niobium – thorium – REE zones within
the iron-sulfide bearing, fluorite hydrothermal breccia system and dyke swarm at H-K.
Immediate Action
The Company has staked two additional properties totalling 89 claims based on the newly recognized
strategic metal mineralization evident in the integrated data sets from the drill program last fall. The
properties are approximately 15 km to the northeast and 5 km southeast of H-K, respectively. The targets
are derived from a regional GIS workspace compiled and refined by VR during the past two years, since
starting on the Ranoke copper-gold generative project in 2018.
Comment
From VR’s CEO Dr. Michael Gunning “ Our goal at Hecla-Kilmer is to pursue the discovery potential for a
new, large-scale copper-gold hydrothermal breccia mineral deposit in Canada. But the point of this news
release is to confirm that the potential for discovery of a copper -gold breccia deposit at H-K is now
expanded to include the discovery potential of strategic rare earth elements (REE’s) and critical battery
metals such as lithium. Importantly, the La, Ce, Y and P signature now evident in our fully integrated
geochemical data sets confirm the IOCG-affinity of the hydrothermal breccia system at H-K.
The strong correlation between density and critical metal mineralization that we can also now see in our
integrated XRF and geochemical assay data sets reinforces our conviction for the ability of the current
ground gravity survey to improve our targeting for the follow-up drilling that is planned for H-K based on
these new results from the maiden drill program last fall.”
H-K has scale, both the overall complex itself , and the hydrothermal breccia system discovered within it,
and it is that scale which I encourage our shareholders to appreciate when considering the potential
significance and value of the newly recognized strategic minerals . The REE oxide concentrations in assay
approach those in known deposits, but what is most significant is the scale, that is, their occurrence in
VR RESOURCES LTD.
2300 – 1177 West Hastings St.
Vancouver, BC, Canada, V6E 2K3
Tel: 604-262-1104; [email protected]
TSX.V: VRR; www.vrr.ca
hydrothermal breccia which dominate s through two drill intersections each spanning more than 600
vertical metres and located 200 metres apart within the core of a polyphase complex some 5 km’s across
for which our reconnaissance drilling for copper and gold has only just begun to test.
We have a high degree of confidence in this lithium and REE discovery because of the correlation between
independent XRF and geochemical assay data, as exemplified by yttrium, terbium and thorium. To further
our understanding of this discovery, VR has initiated a second round of geochemical analyses to focus on
full-suite REE detection, above and beyond the trace element indicator data currently in hand.
As with the drill program completed this past fall, VR will work continuously with the helicopter and
geophysical companies now on site at H-K to ensure for the safety of all workers during the current gravity
survey with regard to the evolving and ongoing COVID-19 global pandemic.
We look forward to providing future updates as we continue to advance our exploration at H-K.”
Technical Information
Summary technical and geological info rmation for the Company’s various exploration properties is
available at the Company’s website at www.vrr.ca.
For the Hecla-Kilmer project, VR submits drill core for Minalyze XRF scanning and sawn drill core samples
for geochemical assay to the SGS Canada Inc. (“SGS”) laboratory facilities in Sudbury, Ontario, with final
geochemical analytical work done at the SGS laboratory located in Burnaby , BC., including ICP -MS and
ICP-AES analyses for base metals and trace elements, and gold determination by atomic absorption assay.
Analytical results are subject to industry -standard and NI 43 -101 compliant QAQC sample procedures
externally by the Company and internally at the laboratory, as described by SGS.
Technical information for this news release has been prepared in accordance with the Canadian regulatory
requirements set out in National Instrument 43-101. Justin Daley, P.Geo., Exploration Manager and Chief
Geologist at VR and a non-independent Qualified Person oversees and/or participates in all aspects of the
Company’s mineral exploration projects, and the content of this news release has been reviewed on
behalf of the Company by the CEO, Dr. Michael Gunning, P.Geo., a non-independent Qualified Person.
About Hecla-Kilmer
The Hecla-Kilmer complex is located 35 k ms southwest of the Company’s Ranoke property in northern
Ontario. It is located 23 km’s northwest of the Ontario hydro-electric facility at Otter Rapids, the Ontario
Northland Railway, and the northern terminus of Highway 634 which links the region to the towns of
Cochrane and Kapuskasing along the northern Trans-Canada Highway located some 100 km’s to the south.
The H-K property is large. It consists of 224 mineral claims in one contiguous block approximately 6 x 7
km’s in size and covering 4,617 hectares. The property is owned 100% by VR. There are no underlying
annual lease payments on the property, nor are there any joint venture or back -in interests. There is an
industry-standard royalty attached to the property, including a buy-back provision to VR. Like the Ranoke
property, H-K is located on provincial crown land, with mineral rights administered by the provincial
Ontario Ministry of Energy, Northern Development and Mines (MENDM). There are no annual
VR RESOURCES LTD.
2300 – 1177 West Hastings St.
Vancouver, BC, Canada, V6E 2K3
Tel: 604-262-1104; [email protected]
TSX.V: VRR; www.vrr.ca
payments, but the MENDM requires certain annual exploration expenditures and reporting. The property
falls within the Moose Cree and Taykwa Tagamou First Nations traditional territories.
Hecla-Kilmer (“H-K”) is a polyphase alkaline intrusive complex with c arbonatite 4 – 6 km ’s across,
emplaced along the western margin of the crustal -scale Kapuskasing structural zone which bisects the
Archean Superior Craton in northern Ontario. The opportunity for VR is to apply modern IOCG and
carbonatite mineral deposit models and exploration technologies to H-K for the first time, ever. A shallow,
six-hole diamond drill program was completed in 19 70 as part of a regional base metal exploration
program by Ashland Oil and Elgin Petroleum. One hole was abandoned, and only 854 m were completed
in total in 5 holes, all on magnetic highs in the outer concentric zones of the complex. Selco Exploration
Company completed two drill holes in 1981 on peripheral magnetic highs as part of a regional diamond
exploration program, and intersected ultra-basic rocks and breccias in the outer, concentric zones of the
polyphase H-K complex. A high resolution airborne magnetic survey was completed in the region for
diamond exploration in 1993, after the afore-mentioned drilling.
About VR Resources
VR is an established junior exploration company focused on greenfields opportunities in copper and gold
(TSX.V: VRR; Frankfurt: 5VR; OTCBB: VRRCF). VR is the continuance of 4 years of active exploration in
Nevada by a Vancouver -based private company. The diverse experience and proven track record of its
Board in early-stage exploration, discovery and M&A is the foundation of VR. The Company focuses on
underexplored, large-footprint mineral systems in the western United States and Canada, and is well
financed for its exploration strategies and corporate obligations. VR owns its properties outright, and
evaluates new opportunities on an ongoing basis, whether by staking or acquisition.
ON BEHALF OF THE BOARD OF DIRECTORS:
“Michael H. Gunning”
____________________________
Dr. Michael H. Gunning, PhD, PGeo
President & CEO
For general information please use the following:
Website: www.vrr.ca
Email: [email protected]
Phone: 604-262-1104
Forward Looking Statements
This press release contains forward -looking statements. Forward-looking statements are typically
identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions
or are those which, by their nature, refer to future events. Forward looking statements in this release
VR RESOURCES LTD.
2300 – 1177 West Hastings St.
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include “The goal of the gravity survey is to identify high density copper sulfide and/or niobium - thorium
- REE zones. “, “the potential relevance of the IOCG copper-gold breccia system at H-K is now expanded to
include the strategic minerals”, and “VR evaluates new opportunities on an ongoing basis.”
This news release may contain statements and/or information with respect to mineral properties and/or
deposits which are near by to and/or are potentially similar to the Company’s mineral properties, but which
the Company has no interest or rights to explore. Readers are cautioned that mineral deposits on near by
or similar properties are not necessarily indicative of mineral deposits on the Company’s properties.
Although the Company believes that the use of such statements is reasonable, there can be no assurance
that such statements will prove to be accurate, and actual results and future events could differ materially
from those anticipated in such statements. Th e Company cautions investors that any forward-looking
statements by the Company are not guarantees of future performance, and that actual results may differ
materially from those in forward-looking statements. Trading in the securities of the Company should be
considered highly speculative. All of the Company’s public disclosure filings may be accessed via
www.sedar.com and readers are urged to review these materials.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in Policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
VR RESOURCES LTD.
2300 – 1177 West Hastings St.
Vancouver, BC, Canada, V6E 2K3
Tel: 604-262-1104; [email protected]
TSX.V: VRR; www.vrr.ca
Figure 1. Outline of detailed, ground-based gravity survey underway at Heckla-kilmer as of March 9th, 2021. The
survey covers the RTP magnetic anomalies delineated in the core of the large, polyphase carbonatite complex.
Drill holes HK20-001 – 004 completed in October, 2020, are shown in red triangles with yellow hole traces.
Locations shown in white are additional drill holes already permitted.
Drill core photos in the following figures show the high density mineralization and alteration zones which the
gravity survey is designed to map in order to prioritize follow up drilling
VR RESOURCES LTD.
2300 – 1177 West Hastings St.
Vancouver, BC, Canada, V6E 2K3
Tel: 604-262-1104; [email protected]
TSX.V: VRR; www.vrr.ca
Photo 1. Upper photo: 334 m depth in HK20-002; wholesale replacement of host rock by hematite, carbonate,
apatite, chalcopyrite and pyrite, with a density of 3.46 g/cm3 and 0.12 % Cu in top row of box. This type of
alteration is elevated in the LREEs La and Ce as well as Y and P, and exemplifies copper deposition by IOCG-affinity
fluids and cross cuts the intensely potassic altered sovite carbonate-fluorite dykes in the bottom two rows or core.
Lower photo: 380 m depth in HK20-002 with 0.11% copper over 1 m; a 2 cm clot of chalcopyrite in calcite-fluorite
veining within host rock phonolite which is completely replaced by fine hydrothermal biotite, carbonate,
magnetite and fluorite.
VR RESOURCES LTD.
2300 – 1177 West Hastings St.
Vancouver, BC, Canada, V6E 2K3
Tel: 604-262-1104; [email protected]
TSX.V: VRR; www.vrr.ca
Figure 2. Correlation of specific gravity and ThO2 content in drill holes HK20-002 and -004. The density spikes also
correlate with elevated rare earth elements (REE’s) and critical minerals such as niobium, lanthanum, cerium,
terbium and yttrium.