Canada Fluorspar Inc.

Canada Fluorspar Inc.

May 08, 2013 08:46 ET

CFI Announces Assay Results From Diamond-Drill Holes Completed on the Director Vein

CFI announces assay results from diamond-drill holes completed on the Director Vein. In the north DS-13-105 and DS-13-115 & DS-13-116 in the South Extension including one hole having an average assay of 59.9% CaF2 over 13.00 metres measured

ST. JOHN'S, NEWFOUNDLAND--(Marketwired - May 8, 2013) - Canada Fluorspar Inc. (TSX VENTURE:CFI) ("CFI" or the "Company") is pleased to announce the third set of assay results from three holes on its Phase 1 and Phase 2 diamond drilling program along the northern section of the Director Vein beneath the Aluminium Company of Canada's (Alcan) old mine workings and southern extension of the Director Vein. The assay results from the previous five drill holes of the Company's Phase 1 and Phase 2 diamond drilling program were disclosed by press releases on March 12, 2013 and April 24, 2013.

One of the three drill holes, DS-13-105, is located 974 metres south of the old Alcan shaft. This drill hole was collared with an azimuth of 053.4° (GN) and an inclination of -60°, and intersected the Director Vein structure returning an average assay value of 15.7% CaF2 over 5.00 metres with 1.14 metres of lost core for a total of 6.84 metres. Drill holes DS-13-115 and DS-13-116 are both located approximately 1,600 metres south of the Alcan shaft and 626 metres south of drill hole DS-13-105. Both drill holes collared with azimuths of 053.4°(GN) and inclinations of -60°, intersected the Director Vein structure and returned assay values of 36.6% CaF2 over 5.72 metres in hole DS-13-115 and 59.9% CaF2 over 13.00 metres with 1.40 metres of lost core for a total 14.40 metres in hole DS-13-116.

Lindsay E. Gorrill, CEO of Canada Fluorspar Inc., stated, "The assays from the first two holes on the south extension at shallow depths are very encouraging. This is the area where we saw high assays results from trenching done in 2012. DS-13-116 showing almost 60% grade with 13 metres width is a significant intersection and validates the trenching done in 2012."

The fluorite mineralization in the north-south trending veins at the St. Lawrence Project and the Company's 100% owned mineral license occur in the form of massive mineralization and as fault gouge. Historically, core drilling of the massive mineralization has resulted in good core recovery. The areas of faulted mineralization generally contain finely ground fluorite and larger fragments of the harder siliceous material. Drilling through the faulted gouge zones commonly results in poor core recovery as the fine grained fluorite material in the vein is washed out by the drill fluid. Both drill holes DS-13-105 and DS-13-116 successfully intersected the Director Vein structure, however, due to the fine nature of some of the vein material, core recoveries in the structure ranged from 83-84% and 90-91% in DS-13-105 and DS-13-116, respectively. Past underground mine operations document the high grade, fine, sandy fluorite mineralization in the vein structure.

To view "Director Vein Phase 1 & 2 Drilling" please visit the following link:

Assay Results

CFI has received assay results for samples collected from drill holes DS-13-105, DS-13-115 and DS-13-116 located along the southern extension of the Director Vein. Drill hole DS-13-105 was drilled from west to east and 146 metres south of a previous drill hole, DS-13-104, which was reported in a press release dated April 24, 2013. Drill holes DS-13-115 and DS-13-116 are located on the same plane and 772 metres south of drill hole DS-13-104 and 626 metres south of DS-13-105. All three drill holes were drilled from west to east intersecting the Director Vein structure, which trends north-northwest and dips steeply from east to west. Drill hole DS-13-105 intersected the Director Vein at 262 metres (225 metres vertically from surface) and 120 metres below the nearest old Alcan workings (120m Level). The vein structure was weakly mineralized as demonstrated in the table below. The drill hole is believed to have intersected a pinched zone. Drill holes DS-13-115 and DS-13-116, located underneath Trench No. 3 which was reported in an earlier press release on April 16, 2012 to contain massive fluorspar mineralization with a fluorspar vein measuring 9.4 metres wide and grading 90.7% CaF2, intersected the Director Vein approximately 65 metres and 39 metres, respectively, down the hole (70 metres and 40 metres, respectively, below surface). Drill hole DS-13-116, the shallower of the two holes, intersected a strongly mineralized structure as demonstrated by the 13.00 metre long intersection carrying a grade of 59.9% CaF2. Drill hole DS-13-115, the deepest of the two holes, intersected fluorite mineralization similar to DS-13-116 above but with a decrease in width and grade as demonstrated in the table below. The Director Vein structure appears to be narrowing and reducing in grade as it gets deeper.

The following table details the results of the third set of drill holes completed by CFI on the Director Vein to the north below the old Alcan workings and two drill holes on the south extension of the Director Vein.

2013 Diamond Drill Hole Assay Results

Canada Fluorspar Inc.

St. Lawrence Project, NL

Drill hole DS-13-105
Sample No. From (m) To (m) Length (m) % CaF2
65148 262.00 263.00 1.00 22.00
65149 263.00 264.00 1.00 9.77
65150 264.00 265.00 1.00 12.70
65151 265.00 266.00 1.00 17.80
65152 266.00 267.00 1.00 16.10
Drill hole DS-13-115
Sample No. From (m) To (m) Length (m) % CaF2
65180 65.28 66.37 1.09 52.05
65181 66.37 67.00 0.63 45.44
65182 67.00 68.00 1.00 22.93
65183 68.00 69.00 1.00 35.08
65184 69.00 70.00 1.00 19.49
65185 70.00 70.59 0.59 16.62
65186 70.59 71.00 0.41 89.39
Drill hole DS-13-116
Sample No. From (m) To (m) Length (m) % CaF2
65160 39.96 41.00 1.04 76.38
65161 41.00 41.70 0.70 79.89
65163 42.30 43.00 0.70 15.20
65164 43.00 43.84 0.84 39.24
65165 43.84 44.92 1.08 94.08
65166 44.92 46.00 1.08 96.29
65167 46.00 47.00 1.00 96.78
65168 47.00 47.99 0.99 96.83
65169 47.99 49.00 1.01 29.45
65170 49.00 50.00 1.00 21.09
65171 50.00 51.00 1.00 28.86
65172 51.00 52.00 1.00 34.58
65173 52.00 52.59 0.59 17.37
65174 52.59 53.56 0.97 79.05

Assays on these drill holes were carried out at SGS Lakefield Laboratories ("SGS") of Lakefield, Ontario, using the Ion Selective Electrode method to determine the fluorite content in the low-grade samples and the Dual Calcium method for samples expected to contain high-grade values (i.e., those with significant visible fluorspar in the drill core).

Quality Assurance and Quality Control ("QA/QC")

Check assay work by CFI includes insertion of duplicate samples and blanks with regular batches of mineralized samples of drill core. QA/QC work is also done at SGS, and results are reviewed and verified by CFI personnel. An independent geological consultant (Qualified Person) has submitted additional samples collected from the drill core for analyses.

Phase 1 of the current exploration program is designed to assess the northern extension of the Director Vein structure. The six drill holes with assay results to date have shown that the fluorspar mineralization at the Director Vein extends further along strike and at depth from the old Alcan workings.

Phase 2 of the 2013 exploration program has been designed to evaluate the southern extension of the Director Vein. A trenching program and a geophysical survey conducted in the area during 2012 identified the structure over a strike length of 1000 meters. The current drill program was planned to evaluate the mineral potential, at depth, of the southern extension of Director Structure and to test the north extension of the adjacent Hares Ears Vein to the west.

Historic mining operations by Alcan on the property produced in excess of 4.2 million tonnes of fluorspar during a 44 year continuous production from 1942 to 1977. Production resumed in 1986 and continued until 1991, when St. Lawrence Fluorspar Limited reopened the nearby Blue Beach North Mine and processed 440,000 tonnes of fluorspar ore from small open pits, one of which was located in a surface pillar at the Director Mine near the main shaft.

Initial exploration information regarding the 2013 exploration program at Director Vein was included in the Company's press releases dated January 16, 2013 and March 12, 2013.

To date, six (6) Phase 1 drill holes have been completed together with 20 additional drill holes in Phase 2 (south extension of the Director Vein) of the 2013 exploration program. Assay results for 18 of the drill holes in Phase 2 are pending.

Historic exploration data indicates that there are more than forty mineralized veins within the CFI property. The three prominent vein structures, however, are the Director Vein, Blue Beach North Vein, and the Tarefare Vein. Probable Reserves of the Blue Beach North and Tarefare veins total approximately 5.4 million tonnes at an average grade of 39.8% CaF2. These Mineral Reserves have been outlined to a vertical depth of 300 metres below the surface, but fluorspar mineralization extends further at depth. The key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, as well as other relevant information, including data verification, with respect to the Blue Beach North and Tarefare veins can be found in a NI 43-101 Technical Report prepared by the Roscoe Postle Associates Inc. dated March 6, 2013, which has been filed by the Company on SEDAR (

About the Company

The Company is a specialty mineral resource company engaged in the development of fluorspar deposits located in St. Lawrence, Newfoundland, Canada, and is reactivating the existing Blue Beach North and Tarefare underground fluorspar mines, expanding the existing mill, constructing a new, environmentally-sound Tailings Management Facility through Newspar, which it's a 50/50 joint venture with Arkema. The Company is also building a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product.

Mr. James H. Reeves, Senior Geologist with CFI, who is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Properties, reviewed and approved the technical content of this news release. The information regarding historic production has not been verified by the Company and is provided for reference only.

Material results of the Director Vein exploration program have been disclosed in the Company's press releases dated March 1, 13 and 30, 2012, April 16 and 24, 2012 and March 12 and April 24, 2013.

For more information please see:

Cautionary Note and Forward-Looking Statements

This press release contains forward-looking statements which include, but are not limited to: resource estimates, proposed mining techniques required to construct and produce at expected levels, anticipated timing for completion of metallurgical testing, the commencement of the drilling program, current development and operating objectives and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development including: loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities, the estimated timeline for the development of the project at St. Lawrence, the supply and demand for, and the level and volatility of the price of fluorspar, the assumptions on which resource estimates are based, the receipt of necessary permit, market competition, ongoing relations with employees and impacted communities, and general business and economic conditions. Should one or more of the risks or uncertainties involved in forward-looking statements materialize, or should the assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forwardlooking statements.

Forward-looking statements are qualified entirely by this cautionary statement and are given only as at the date of this press release. The Company disclaims any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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.

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