Anconia Resources Corp.
TSX VENTURE : ARA

Anconia Resources Corp.

April 12, 2012 12:58 ET

Anconia Reports Results of Downhole Geophysics at Melchett Lake And Provides Property Overview

TORONTO, ONTARIO--(Marketwire - April 12, 2012) - Anconia Resources Corp. (TSX VENTURE:ARA) ("Anconia" or the "Company") is pleased to provide an overview of the Melchett Lake Property (the "Property") as well as the results of a recent down the hole BHTEM survey. As announced in the Company's press release dated December 21, 2011, Anconia has an option to acquire a 100% interest in 17 unpatented mining claims located approximately 60 km north of Nakina, Ontario comprising the Property. The Property covers a strike length of 16 km of highly prospective sulphide bearing volcanogenic massive sulphide (VMS) stratigraphy. A whole rock geochemical survey of the Property has identified two areas situated along this strike length that maintain major element alteration and anomalous minor element (Zn, Pb, Ag, & Cu) concentrations characteristically associated with VMS deposits and more specifically with being proximal to a source vent within a VMS genetic model. These two areas are referred to as the Relf Zone (North and South areas) and the Nakina Zone. Of these two areas of interest, the most extensive and detailed exploration has historically been carried out over the Relf South Zone.

Jason Brewster, President of Anconia commented "The down the hole BHTEM survey that we have recently completed has supported the exploration model developed on the Melchett Lake Property. This survey encourages Anconia to continue exploration on this property, as it indicates potential proximity to a VMS source".

At the Relf South Zone, which was initially detailed by surface geologic mapping and whole rock geochemistry, stratiform Zn mineralization and intense hydrothermal alteration characteristically associated with VMS deposits has been documented. In 1983 a shallow drill hole (KAR-03) was completed to intersect the down dip extension of the Relf South Zone. This drilling identified a "mineralized sequence", approximately 150m in true thickness, of intensely altered and mineralized (Zn) felsic volcanics. The center of the intersection of KAR-03 with the "mineralized sequence" is approximately 150m below surface. Within the "mineralized sequence" 5 distinct Zn rich stratigraphic horizons (Units 1 through 5) were identified (KAR-03 in Table 1). There was no geophysical, airborne or ground magnetics or EM, over the surface expression of the Relf South Zone, however, whole rock geochemistry indicated that alteration and mineralization were increasing down dip.

In 2007 one drill hole (SB-07-01 619m in length) was completed to investigate the apparent down dip extension of the increasing alteration and mineralization. The drill hole was spotted to intersect the center of the "mineralized sequence" directly underneath the Relf South Zone, at approximately 375m below surface. The whole rock geochemistry of the felsic volcanics indicated that alteration within the "mineralized sequence" in this hole was more intense than that reported in the near surface drillhole KAR-03. Within the "mineralized sequence" the 5 stratigraphically controlled geochemically Zn enriched horizons were again identified. Concentration of Zn in these horizons was more anomalous than in drill hole KAR-03 (see SB-07-01 in Table 1). Geochemically anomalous Cu mineralization was also reported sporadically within the immediate footwall to the "mineralized sequence". A down the hole BHTEM survey was completed on hole SB-07-01. There were no in hole conductors, either related to the Zn horizons within the "mineralized sequence" nor the Cu mineralization in the immediate footwall felsic volcanics were identified. However, one significant moderate intensity anomaly was detected off the bottom of hole SB-07-01 and was interpreted to be located 100m to the east.

A follow up drill hole (SB-08-02 688m in length) was completed in 2008 to investigate the causative source of the off hole conductor previously identified, which intersected the center of the "mineralized sequence" at approximately 350m below surface. Whole rock geochemistry of the felsic volcanics "mineralized sequence" were found to be more intense than either KAR-03 or SB-07-01 indicating a possibly increasing proximity to a source vent. The richest Zn mineralization intersected to date was reported in drill hole SB-08-02 (Table 1), which also indicates an increasing proximity to a source vent. Anomalous Cu mineralization was also reported within the immediate footwall to the "mineralized sequence" in drillhole SB-08-02 (Table 1). The Cu mineralization within the footwall felsic volcanics was characterized by fine interconnected veinlets of chalcopyrite, which is consistent with a stockwork zone found to underlie VMS deposits. This drill hole was not investigated by down the hole BHTEM at the time, so the causative source of the off hole conductor identified in hole SB-07-01 remained unresolved.

In 2012, Anconia completed a down the hole BHTEM survey of drill hole SB-08-02. That survey identified numerous conductive zones. Within the "mineralized sequence" conductive zones were found to be directly related to Zn enriched horizons Unit 1, 2, 3 and 4 (see SB-08-02 in Table 1). These findings are the first reported incidence of increased conductivity related to the Zn stratiform mineralization. Within the footwall felsic volcanics 5 conductive zones were identified. Of these, 4 are directly related to increased Cu mineralization (veinlets of chalcopyrite) (Table 1). One of these conductive zones, Conductor 8, situated between 550m and 560m is believed to be the causative source of the off hole conductor previously identified in drill hole SB-07-01. One final conductor (Conductor 10 Table 1) was identified as lying off the end of drillhole SB-08-02. The causative source of this conductor is believed to be to the east of the hole.

In summary, the intensity of hydrothermal alteration characteristically associated with VMS deposits is increasing with depth down plunge below SB-08-02 as is the concentration and thickness of the Zn enriched stratigraphic units found within the "mineralized sequence". The increased Cu concentration within the footwall felsic volcanic sequence and reports of veinlets of chalcopyrite are further indicators of an increasing proximity to a source vent stockwork zone. Contouring of the depositional basin defined by the footwall and "mineralized sequence" contact indicates that the basin is also increasing in depth down plunge, a location where economic concentrations of massive sulphides would typically be found. Further investigation of the mineralization, both the Zn rich stratigraphic Units 1 through 5 as well as the footwall "stockwork" like Cu mineralization down plunge, is planned for 2012.

To view Table 1 please visit the following link: http://media3.marketwire.com/docs/AnconiaTable1.pdf.

Sample QA/QC

At total of 233 composite geochemical core samples were collected from diamond drill holes KAR-03 (33 samples) SB-07-01 (92 samples) and from SB-08-02 (107 samples). Each sample consisted of 5 pieces of whole core, each approximately 7cm in length, that were collected at regular intervals across a 1m sample section. The 5 pieces of drill core comprising each sample were bagged, tagged and sealed in the field. Samples were transferred from the field to Thunder Bay by secure transport where transfer to bonded transport for delivery to SGS Canada Inc.'s laboratory in Toronto, Ontario was arranged. At SGS the samples were subsequently crushed, ground and analyzed by ICP methods for 40 elements. As the core sampling program was geochemical in nature, i.e. to provide vector information, elements reporting concentrations greater than their respective upper limits were not rerun for assay concentrations.

David G. Wahl, P. Eng., P.Geo., Chairman of Southampton Associates Inc. and a "Qualified Person" pursuant to NI 43-101 has reviewed and approved the technical information in this press release on behalf of the Company.

About Anconia

Anconia is a base and precious metals exploration and development company, which is focused on providing shareholder value through the advancement of its properties in the Nunavut Territory and Ontario, Canada. Anconia is undertaking a comprehensive exploration program to determine the potential of the projects currently in its portfolio.

Forward-Looking Information

This news release contains forward looking statements within the meaning of applicable Canadian securities laws including with respect to the potential of the Melchett Lake greenstone belt to host additional VMS concentrations along strike. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management of Anconia in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to: the speculative nature of mineral exploration and development, including the uncertainty of mineral reserve and resource estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities; exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which Anconia has an interest; unexpected geological or hydrological conditions; operational and technical difficulties; fluctuations in commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of Anconia; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; as well as other risks and uncertainties which are more fully described in Anconia's annual and quarterly Management's Discussion and Analysis and in other filings made by Anconia with Canadian securities regulatory authorities and available at www.sedar.com.

Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, Anconia disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although Anconia believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Anconia Resources Corp.
    Jason Brewster
    President and CEO
    416-815-9777