Claim Post Resources Inc.
TSX VENTURE : CPS

Claim Post Resources Inc.

November 03, 2016 15:22 ET

Claim Post Has Acquired a Timmins District Property That Has 3 Wide Gold Zones Near Surface

The Best Gold Intersection Has a Grade of 3.3g/t Over 22 Meters With Drill Cuttings Averaging 11.0g/t Cut to 31.1g/t

TORONTO, ONTARIO--(Marketwired - Nov. 3, 2016) - Claim Post Resources Inc. (TSX VENTURE:CPS) ("Claim Post" or the "Company") is pleased to announce that Claim Post has expanded its Main Timmins Camp gold exploration land in Deloro Township by acquiring 23 claim units for $5,000 cash plus 400,000 CPS common shares and no royalty. The new property is parallel to the 100% owned Dayton Racetrack Property that consists of 165 patented and staked claims; about 10 square miles.

The new 23 unit property was historically part of the "Dictore Porcupine Property" which was patented in 1910.* This property was explored by SGX Minerals as the LYNX Project in 2010. The Dictore diamond drilled 5 holes in the 1940s; several articles were published on the drill program in the Toronto Globe and Mail newspaper. The western 4 holes drilled an iron formation-quartz vein which is on strike to the Dayton Porcupine Zone. (See Claim Post 2012 Press Releases on SEDAR.)

The Dictore DDH #5 was drilled 1.5km to the east, below an outcrop of andesite and porphyry intersected 3 gold zones. See attached Table of the drill log with assays expressed at $35 per ounce gold converted to grams/tonne. The upper gold zone averaged 2.2g/t over 11.0m, the center zone 1.8 g/t over 12.2m, and the third zone 3.3g/t over 22 meters. Drill cuttings for the entire 22m section were also sampled. The cuttings averaged 16.3g/t gold or 11.0g/t cut to 31.1g/t over the entire 22m of core length. The true width of the gold zone is unknown as there is only 1 drill hole.

The cuttings come from the area cut by the diamond drill bit plus ground core. Cuttings assays cannot be used for NI 43-101 type calculations; they are used only to indicate that the drill core assays may be low. DDH #5 ended in mineralization. The SGX LX-10-2 hole passed about 75m south of the DDH #5 mineralization; intersected 2.23g/t gold over 1 meter, then the next 45 meters assayed, very anomalous 0.15g/t gold in both the porphyry and volcanic rock units.

Charles Gryba, President of Claim Post, stated: "From an exploration gold discovery viewpoint, DDH #5 is equivalent to the 420m deep Holmer hole that discovered the high grade Lakeshore/Tahoe gold system. The SGX drilling supports the same geology as DDH #5 with gold values on the opposite, south side of an E-W mag low anomaly. Our next step will be to twin DDH #5. It will take 4 to 6 holes to map the direction of this very exciting good grade gold mineralization which starts less than 90m below surface and may outcrop. The gold grades in DDH #5 core assays are 2 to 3 times higher than the 1.07g/t, 4.5 million ounce, 130.6 million tonne Dome Mine Century Open Pit expansion just announced by Goldcorp, 8km to the north**."

The two major historical gold systems in the Timmins Camp, the Hollinger system and the Dome to Delnite gold systems, both stop abruptly and then restart 10km further west as the Tahoe and Teck series of gold zones. Claim Post is focused on finding the "missing" 10 km sections of gold mineralization. The Dome gold system stops in Deloro Township where the gold system turns south and then runs directly into the main Porcupine Destor Fault System. DDH#5 is located only 8 claims or 2 miles directly south of the Delnite mine site which is at the south end of the system.

There are a number of factors that contributed to DDH #5 being overlooked for 75 years. The principal reasons include: DDH#5 was drilled in 1940 just as the mobilization of WW2 began, corporate infighting during the original drill program (described in a series of Globe and Mail articles) and the fact that the gold mineralization is not accompanied by quartz veining. Historically, quartz veining was viewed as a critical indicator of an extensive gold system in the Timmins Camp; this has since been disproved with the discovery of the West Timmins deposits.

Further, exploration in this part of Deloro Township is difficult with modern geophysics. There are at least 30 kilometers of 1 to 5m wide, oxide/magnetic/sulphide facies iron formations weaving back and forth through the area. Variable iron formations distort ground geophysics and cause so many "false positive" anomalies that geologists are totally discouraged from drilling any anomaly.

Finally, the patchwork of old patented claims in Deloro Township means that some of the ground has been explored numerous times but adjoining blocks may not have been explored since 1910. The claims covering DDH #5 have had 2 modern programs of outcrop stripping, line cutting, magnetic, VLF, and IP ground surveys. SGX also drilled 4 holes in the general area. (2012, SGX Diamond Drilling Assessment Report on the LYNX Project in MNDM files.)

Claim Post Going Forward: Based on the extensive corroborating evidence, it is management's opinion that there is a very high probability that DDH #5 is a "discovery hole" that has identified a major gold system in Deloro Township. The drill hole will anchor further exploration of the gold system with geophysics and drilling. The SGX drill program only targeted shallow IP anomalies.

SGX drill holes intersected all of the Timmins Camp gold pathfinders - mineralized porphyry, green carbonate zones, ankerite alteration, visible amounts of pyrite, pyrrotite, chalcopyrite, sphalerite and most importantly 45 meters of very anomalous .15g/t gold; 75m south and at the same depth and geology as DDH #5. The geology in this part of Deloro Township runs east west. DDH#5 is on the north side of a magnetic low anomaly whereas the SGX #2 drill hole intersected gold values on the south side of the same anomaly. The mag anomaly runs east west for 2 to 3 km.

Claim Post has a very simple plan going forward. Setup and re-drill DDH #5; modern diamond drills with NQ sized core, gets close to 100% core recovery thus core assays are much more accurate. DDH #5 terminated in gold mineralized volcanic rock thus the hole will be drilled to a minimum 400m depth. At the same drill setup, steepen the drill to 60 degrees and drill a second hole. Based on those results - a drill program of appropriate scope will be designed to confirm the size and shape of the high grade gold mineralized zones indicated by DDH #5.***

* Historic drill intercepts and mining data from the Dictore Property were sourced from historic files and assay logs - Assessment File 444 of Deloro Township; Timmins MNDM Office. QA/QC procedures and processes have not been audited by Claim Post. Historical results are not necessarily indicative of future results.

** The Dome gold system is continuous from the Dome Mine south through the historical Paymaster/ Buffalo Ankerite/Aunor to the Delnite Mine. The Dome system has mined about 25 million ounces to date. The Century Pit plus Lexam's mineralization around the historical Buffalo Ankerite mine will add at least 5m ounces to the system total. DDH #5 has indicated that there are reasonably wide, 2-3g/t gold intersections in DDH #5 on the south side of the PDFZ. The intersections in no way suggest a mineral resource and/or mineral reserve of a similar size will be hosted on the Company's property.

*** Further drilling would be required to upgrade or verify the historical assay results. Claim Post is unaware of the existence of any technical report prepared in connection with the scientific and technical information in this news release. A Qualified Person (within the meaning of NI 43-101) has not done sufficient work to confirm the historical assay results reported.

Claim Post Resources Inc. Is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. Claim Post has focused on acquiring land and exploring for gold in the Main Timmins gold camp; targeting only the western extension of both the Dome and Hollinger gold systems. Claim Post is the third largest land holder in the main camp after Goldcorp and Tahoe.

To offset the market risks of solely focusing on Timmins gold exploration, Claim Post purchased 100% interest in a frack sand project located 200km NE of Winnipeg, Manitoba subject only to the final payment for the Gossan Resources leases which is currently being re-negotiated. In 2014, a NI 43 101 Report and a positive PEA were published on the Seymourville Tier 1 Frack sand deposit indicating an after tax ROI of 21% and an after tax NPV of $151,000,000 (SEDAR, June 20th, 2014). There are 125,583,908 common shares of the Company currently issued and outstanding.

Charles Gryba, President, P. Eng. is the Qualified Person that prepared the content of the news release in compliance with National Instrument 43-101 with respect to this release.

Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly.

The Company does not assume the obligation to update any forward-looking statement. 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

  • Claim Post Resources Inc.
    Charles Gryba
    President and Director
    416-801-6366

    Claim Post Resources Inc.
    Peter Gryba
    Corporate Affairs
    416-203-3776
    www.claimpostresources.com