Canada Fluorspar Inc.
TSX VENTURE : CFI

April 16, 2012 08:25 ET

CFI Announces Assay Results on Trench #2 and Trench #3, Including a Structure of High Grade Fluorspar Over 9.4 Metres Grading 90.7% CaF2

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - April 16, 2012) - Canada Fluorspar Inc. (TSX VENTURE:CFI) ("CFI" or the "Company") is pleased to announce encouraging progress on its trenching program along the southern extension of the Director Vein with current assays showing high grade fluorspar mineralization.

Assay Results

CFI has received assay results for samples collected from Trenches #2 and #3 along the interpreted trace of the Director Vein structure, which trends north-northwest and is subvertical. The two trenches are 123 m apart and the excavation at the two sites exposed significant fluorspar (or fluorite) mineralization within the southern extension of the Director Vein. The mineralized fault zones in the two trenches are as follows:

  • Trench #2: 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 is 11.0% CaF2.

  • Trench #3: Contains a vein of massive CaF2 with a grade of 90.7% CaF2 over a vein width of 9.4 m. The grade of the wall rock on the west side of the vein is 28.5% over a vein width of 1.0 m. The combined grade over a vein width of 10.4 m is 84.8% CaF2. A second narrower vein, 6.3 m to the west of the larger vein, returned assay values of 86.8% CaF2 over a vein width of 0.8 m. One metre samples of wall rock on either side of this vein returned assay values of 17.5% and 14.8% CaF2. The combined grade over a vein width of 2.8 m is 36.3% CaF2.

Detailed results are presented in the table below (east to west).
2012 Trench Assay Results
Canada Fluorspar Inc. - St. Lawrence Project, NL
Trench No. 2
Sample No. From (m) To (m) Length (m) % Ca F2
65001 0 1.0 1.0 9.5
65002 1.0 4.4 3.4 10.3
65003 4.4 5.4 1.0 13.3
Trench No. 3
Sample No. From (m) To (m) Length (m) % Ca F2
65004 0 1.0 1.0 3.3
65005 1.0 10.4 9.4 90.7
65006 10.4 11.4 1.0 28.5
65007 15.7 16.7 1.0 17.5
65008 16.7 17.5 0.8 86.8
65009 17.5 18.5 1.0 14.8

Assays on samples from these and other trenches collected during the Company's 2012 trench sampling program are carried out at SGS Minerals Inc. (SGS) laboratory of Lakefield, Ontario, using the Ion Selective Electrode (ISE) method to determine the fluorite content in the low-grade samples and the Dual Calcium method for high-grade values. Routine internal check assay work is done at SGS and results are reviewed and verified by CFI personnel.

Lindsay Gorrill, President & CEO of Canada Fluorspar Inc. stated that, "we knew from the information we had gathered from past mining that the Director Vein had been a high grade vein but we did not expect to find such a high grade and such potential for a significant-sized structure. We are eagerly awaiting assay results on the remaining trenches and will provide further updates as they become available."

Initial exploration information regarding these trenches was included in the Company's press release dated March 1, 2012.

Assay results from samples collected in the additional trench work completed on this mineralized structure are pending.

The current exploration program is designed to assess the southern extension of the structure hosting the Director Vein by surface trenching. Nine trenches have been completed to date. The trenching has successfully traced the Director Vein structure over a distance of 700 m.

Historic mining operations by Aluminum Company of Canada Limited (Alcan) on the property produced in excess of 4.2 million tonnes of fluorite during a 44 year continuous production from 1942 to 1977. At the time of the mine closure, however, the Director Vein Structure still contained a certain amount of mineralized material. 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 mineralized material from a small open pit.

Historic exploration data indicate 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 m 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 Terefare veins can be found in a NI 43-101 Technical Report prepared by the Roscoe Postle Associates Inc. (RPA) dated April 29 2011, which has been filed by the Company on SEDAR (www.sedar.com).

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.

For more information please see: www.canadafluorspar.com.

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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