Canada Fluorspar Inc.

Canada Fluorspar Inc.

July 02, 2013 14:52 ET

CFI Announces Assay Results from Drill Holes on Director Vein, South Extension, and Include DS-13-110; 111; 112; 136; One Hole Having an Average Assay of 91.3% CaF2 over 2.42 Metres Measured

ST. JOHN'S, NEWFOUNDLAND--(Marketwired - July 2, 2013) - Canada Fluorspar Inc. (TSX VENTURE:CFI) ("CFI" or the "Company") is pleased to announce assay results from four (4) holes on its Phase 2 diamond drilling program along the southern extension of the Director Vein. The assay results from the previous eleven (11) drill holes from the Company's Phase 1 and Phase 2 diamond drilling program were disclosed by press releases on March 12, 2013, April 24, 2013, and May 8, 2013 and June 5, 2013.

All four drillholes, DS-13-110, DS-13-111, DS-13-112 and DS-13-136, are located on the same cross-section at 1,500 metres south of the old Aluminum Company of Canada ("Alcan") shaft and 223 metres north of the previously reported holes from the June 5, 2013 press release. Hole DS-13-110, the shallow hole, was collared with an azimuth of 050° (GN) and an inclination of -60°, and intersected the Director Vein structure returning average assay values of 65.8% CaF2 over 3.17 metres from 44.23 metres to 47.40 metres measured depth. Drill hole DS-13-111 was collared with an azimuth of 050° (GN) and an inclination of -65° and intersected the Director Vein structure returning average assay values of 91.3% CaF2 over 2.42 metres from 79.80 metres to 82.22 metres measured depth. Hole DS-13-112, the 3rd deepest hole in the plane, was collared with an azimuth of 050° (GN) and an inclination of -80° and intersected the Director Vein structure returning average assay values of 43.0% CaF2 over 2.95 metres from 135.77 metres to 138.72 metres measured depth. Drillhole DS-13-136, drilled from east to west and the deepest of the four holes in the plane, was collared with an azimuth of 228° (GN) and an inclination of -57° and intersected the Director Vein structure returning average assay values of 81.3% CaF2 over 0.70 metres from 207.80 metres to 208.50 metres measured depth and a second vein was intersected in the structure returning average assays of 37.0% CaF2 over 6.16 metres from 216.50 metres to 224.66 metres measured depth, not including 0.30 metres of lost core in the intersection.

"The assays from these four holes as well as previously reported holes, DS-13-115, DS-13-116, DS-13-120, DS-13-121 and DS-13-122 are encouraging in that the southern extension of the Director Vein in this area is now known to extend from surface to a projected depth that range from 75 to 150 metres and along a projected north-south strike over 320 metres with grades and widths that would categorize the mineral resources as mineable," stated Lindsay E Gorrill, President & CEO of Canada Fluorspar Inc.

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. Drill hole DS-13-136 successfully intersected the Director Vein structure; however, due to the fine nature of some of the vein material, core recovery in the structure was 95%. Past underground mine operations document the high grade, fine, sandy fluorite mineralization in the vein structure.

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Assay Results

CFI has received assay results for samples collected from drill holes DS-13-110, DS-13-111, DS-13-112 and DS-13-136 located along the southern extension of the Director Vein. Three of the four drill holes (DS-13-110/111/112) were drilled from west to east and located 100 metres south of a previously reported hole, DS-13-116, which was reported in a press release dated May 8, 2013. Drill holes DS-13-110, DS-13-111, DS-13-112 and DS-13-136 are located on the same plane and were drilled to intersect the Director Vein structure below a previously reported trench, Trench No. 2, which was reported in two press releases, dated March 1, 2012 and April 16, 2012. Trench No. 2 was reported to have exposed 10.3% CaF2 over 3.4 m of gouge, and 13.3% CaF2 over 1.0 m of wall rock on the west side of the vein. The combined grade over 4.4 m was 11.0% CaF2.

All four drill holes intersected the Director Vein structure, which trends north-northwest and dips steeply from east to west. Drill hole DS-13-110 intersected the Director Vein structure at 41 metres vertically from surface and below Trench No. 2. Drill hole DS-13-111, drilled below DS-13-110, intersected the Director Vein structure at 73 metres from surface and below Trench No. 2. Drill hole DS-13-112, drilled below DS-13-111, intersected the Director Vein structure at 117 metres from surface and below Trench No. 2. Drill hole DS-13-136, drilled below DS-13-112, intersected the Director Vein structure at 154 metres vertically from surface and below Trench No. 2. A second vein was intersected on the hanging wall side of the Director structure and was located about 150 metres vertically from surface. The four drill holes completed at this location indicate that the structure maintains a relatively uniform width with depth although the grade indicates a slight overall decrease with depth. The results of the drilling under Trench No. 2 are similar to the information from the previously reported results from Trench No. 3 area to the south and indicates that the structure continues to be mineralized both along strike and with depth. Parallel veins such as the vein identified in the hanging wall in drill hole DS-13-136 have been known to develop into mineable veins in other locations in the St. Lawrence area. The significance of this hanging wall vein remains to be evaluated.

The following table details the results of the fifth set of drill holes completed by CFI on the Director Vein Phase 1 and Phase 2 2013 diamond drill program:

2013 Diamond-Drill Hole Assay Results
Canada Fluorspar Inc.
St. Lawrence Project, NL
Drill hole DS-13-110
Sample No. From (m) To (m) Length (m) % CaF2
65261 44.23 45.17 0.94 90.48
65262 45.17 46.11 0.94 82.19
65263 46.11 46.75 0.64 47.79
65264 46.75 47.40 0.65 24.30
Drill hole DS-13-111
Sample No. From (m) To (m) Length (m) % CaF2
65271 79.80 80.78 0.98 89.61
65272 80.78 81.35 0.57 97.30
65273 81.35 82.22 0.87 89.30
Drill hole DS-13-112
Sample No. From (m) To (m) Length (m) % CaF2
65303 135.77 136.55 0.78 49.80
65304 136.55 137.00 0.45 56.56
65306 137.00 137.90 0.90 40.21
65307 137.90 138.72 0.82 32.11
Drill hole DS-13-136
Sample No. From (m) To (m) Length (m) % CaF2
Vein #1
65312 207.80 208.50 0.70 81.27
Vein #2
65392 216.50 217.50 1.00 38.59
65313 217.50 218.50 1.00 30.06
65314 218.50 219.00 0.50 59.94
65315 219.00 220.00 1.00 48.90
65316 220.00 223.00 1.00 31.18
65317 223.00 224.00 1.00 31.33
65318 224.00 224.66 0.66 26.70

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 1,000 metres. 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 26 additional drill holes in Phase 2 (19 holes in south extension Director Vein and 7 holes at Hares Ears Vein) of the 2013 exploration program. Assay results for remaining completed 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 Company's 2012 and 2013 exploration program have been disclosed in the Company's press releases dated March 1, 13 and 30, 2012, April 16 and 24, 2012 and January 16, 2013, March 12, 2013, April 24, 2013, May 8, 2013, and June 5, 2013.

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.

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 forward‐looking 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.

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