EMC Metals Corp.

EMC Metals Corp.

May 21, 2009 10:00 ET

EMC Metals Receives Resource Estimate and Work Recommendations for Springer from SRK Consulting Inc. U.S.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 21, 2009) - EMC Metals Corp. (TSX:EMC) ("the Company") is pleased to announce that it has received a mineral resource estimate from Dr. Bart Stryhas of SRK Consulting Engineers and Scientists of Lakewood, CO. Dr. Stryhas calculates Indicated and Inferred resources from the Sutton 1 and Sutton 2 historic mines at the Company's Springer Facility as follows:

Resource WO3% Total Average Contained
Category Cut-off Tons (kt) Grade STU's WO3
Indicated 0.30 274 0.619 169,606
Inferred 0.30 1,097 0.562 616,514

This estimate compares favorably with a 1984 historic resource estimate by James Park of the General Electric Company, who estimated 3.59 million tons grading 0.446% WO3 at a 0.2% WO3 cutoff grade for tungsten mineralization at the Sutton 1 and Sutton 2 zones, the O'Byrne mine and a run of mine, mill surge stockpile. The SRK estimate contains fewer resource tons and hence contained STUs of WO3 because the bottom 850 feet of mine workings are flooded, inaccessible and contained less verifiable sampling and drilling than developed levels that are closer to surface. The Company is confident that the SRK recommended program of mine dewatering, additional channel sampling and drilling will deliver additional resource tons that bring the total closer to the historic GE estimates.

Dr. Stryhas is a Principal Resource Geologist with SRK Consulting's Denver Mining Group and a Qualified Person as defined by National Instrument 43-101. He is independent of EMC Metals by all tests of NI 43-101. He has verified the data disclosed in the Technical Report as described below and has reviewed the information contained in this news release.

The following descriptions of resource drilling, data verification, and discussion on the assumptions and interpretations related to the mineral resource estimation are based on the Stryhas report entitled "NI 43-101 Technical Report on Resources, EMC Metals Corp, Springer Facility - Sutton Beds, Nevada, USA" dated May 15, 2009.

EMC Metals Drilling

During 2007 and 2008, EMC Metals completed 7 core and 251 RC holes on the Springer Facility. The drilling program was designed to serve several purposes. The seven core holes were targeted on resource confirmation and expansion in the Sutton I and Sutton II areas. The RC holes were pre-collars for some core holes and general exploration drilling at several targets on the property.

The core drilling was all conducted from surface by Major Drilling Company using HQ size drill pipe. The holes were all drilled from the hanging wall side of the mineralization oriented along an east-southeast azimuth and dipping -45 degrees to -75 degrees. All of the holes were surveyed for down hole deviation, generally at 150 foot intervals. Seven drill holes were completed for 3,592 feet. The core was processed and logged on site.

The RC drilling was all conducted by Eklund Drilling Company using a standard buggy-mounted drill and 5-1/5 inch diameter holes. The drilling was conducted at six different prospects including; Sutton I and II, George Beds, Mill Beds, Moly Pit, Orphan Pit and Uncle Sam. The majority of the drilling was conducted in the first three areas listed above. The holes were arranged in a wide variety of orientations, typically with at least two holes drilled in a fan pattern from the same location.

Drilling Results

A total of 377 drill holes totaling 144,171ft were completed in two major drilling campaigns. General Electric and Utah International completed 119 diamond core drill holes totaling to 58,046ft in the 1970's whereas EMC Metals completed 7-diamond core and 251 RC holes totaling to 86,125ft in 2007-2008. The interpretation of all drilling results indicates that anomalous tungsten mineralization is located within several planar, west-dipping beds, which average 3 feet in true thickness along 5,600 feet of strike length and 1,500 feet of down dip extent. In some locations, the tungsten mineralization thickens to a maximum true thickness of 10 feet. The drill holes are arranged in a variety of orientations and most of the drill sample lengths do not represent true thickness of mineralization.

SRK is of the opinion that the drilling operations were conducted by professionals, the core or cuttings were handled, logged and sampled in an acceptable manner by professional geologists, and the results are suitable for support of a NI 43-101 compliant resource estimation.

Data Verification

The mineralization and data of the Springer Facility has been verified in two ways. A Technical Report by Simpson and Sandberg (2008) and filed on www.SEDAR.com describes verification of the mineralization with re-sampling of core drilled by GE and UII. The data verification conducted by SRK focused entirely on the electronic database used to support the resource estimate.

SRK's data verification focused on comparing the electronic database's drill collar locations, orientations and assay results to the original source data. The electronic database was compiled by EMC Metals as follows. The original drill logs and a listing of collar coordinates were used to compile the X, Y and Z locations of the drill collars. These were all entered in local GE, mine grid coordinates. A licensed surveyor from Aero-Graphics provided a translation solution to convert the mine grid to State Plane Nevada West, NAD83 Conus Cors96 coordinates. The mine grid coordinates and translation solution were then input to the Blue Marble™, geo-calculator software and the State Plane Nevada coordinates were generated. The drillhole orientations were input from individual drill logs and the down hole survey readings. The assay database was compiled from each individual drill log file. The assays were input directly from the hand recorded sample log sheets generated by GE and UII. About 50% of the drill collar locations in local grid were verified to the scanned copies of the original drill logs or collar coordinates lists. The same amount of down hole surveys in the electronic database were also verified to the scanned copies of the drill logs. No errors were found in either data set. SRK was able to locate original signed assay certificates from RMGC and assay lab reports from GE and UII for approximately 86% of the core drilling and channel sampling results. These were spot checked against the electronic drill hole database and no errors were found.

The electronic database of the 2007 and 2008 drilling completed by EMC Metals was also verified to the original source data on a limited basis. Because all of the drill collar locations were read directly from a GPS unit into electronic data files, the database is considered as the source data. The drill hole orientations were also read directly from electronic down hole survey files or from the proposed/actual orientations of the drill hole. The assay database was also generated directly by electronic data file. SRK did spot check the electronic assay database to .pdf copies of the signed assay certificates and no discrepancies were found.

The database prepared by EMC Metals and verified by SRK relies on the industry professionalism of information supplied by the General Electric Company, Utah International Inc., Rocky Mountain Geochemical Corp, EMC Metals and ALS Canada. No discrepancies were noted to source data indicating that EMC Metals has obviously taken significant internal QA/QC while compiling it.

Mineral Resource Classification and Cut-off Grade

The Mineral Resources are classified under the categories of Indicated and Inferred Mineral Resources according to CIM guidelines. Classification of the resources reflects the relative confidence of the grade estimates. This classification is based on several factors including; sample spacing relative to geological and geo-statistical observations regarding the continuity of mineralization, data verification to original sources, specific gravity determinations, accuracy of drill collar locations, accuracy of topographic surface, quality of the assay data and many other factors, which influence the confidence of the mineral estimation. No single factor controls the resource classification rather each factor influences the result. Generally, most of the factors influencing the resource classification in the Springer Facility are positive. The resources have been classified as Indicated and Inferred based primarily on sample spacing as indicated by drilling and sample density. For the resource classification, solid shapes were constructed around the parts of the beds where most drill holes are spaced approximately 100 feet apart and where abundant channel samples were taken. All blocks located within these areas were classified as Indicated resource. All blocks located outside of these areas, about the periphery of the denser drilling pattern and channel sampling were classified as Inferred resource.

The 0.30 WO3% cut-off grade was chosen for resource reporting based on an approximated mining cost of $40/t, processing cost of $17/t, administration cost of $13/t, mill recovery of 82% and a WO3 price of $11.50/lb. The results reported in the resource statement have been rounded to reflect the approximation of grade and quantity, which can be achieved at this level of resource estimation.


SRK recommends that EMC Metals conduct further underground, infill and step-out diamond drilling and channel sampling within the un-mined portions of the deposit. This will require dewatering and rehabilitating the existing underground development. EMC Metals reports that their internal scoping has shown that dewatering and shaft rehabilitation could be accomplished within approximately eight months at a cost of about $4,113,000.

A significant portion of the underground development along the beds mapped as mineralized, remains un-sampled in the current database. At Sutton I there are approximately 2,900 feet of un-sampled drifts in the un-mined portions of the beds. At Sutton II there are approximately 5,400 feet of un-sampled drifts in the un-mined portions of the beds. If these were sampled at stations, spaced 15 feet apart and three samples were taken at each station, this would require approximately 1,800 samples including QA/QC. Based on the results of the channel sampling, the existing underground drill stations could be utilized for in fill and step-out diamond drilling. Approximately 50 drill holes averaging 450 feet in length would require 25,000 feet of recommended diamond drilling. Upon completion of the recommended exploration work an updated resource estimation should be done; this will likely result in upgrading much of the Inferred Resource to an Indicated category to qualify for potential reserve estimation.

A budget of $12,029 million is recommended for the above program and includes dewatering, channel sampling, underground diamond drilling and updated resource estimation. Sampling and drilling costs include all assaying, labor, logistics, mobilization, site work etc typically associated with programs of these types. It is estimated that this work will take 20 months to complete. Detailed program costs are as follows:

Summary of Proposed Activities and Approximate Costs
Activity Duration Cost
Dewatering and Shaft Rehabilitation
Eight Months $ 4,113,000
Drift and Escapeway Rehabilitation
Included Above $ 3,807,000
Development For Sampling and Drilling
Four Months $ 1,000,000
Underground Sampling Program
1,800 samples at $30/each Included Above $ 54,000
Underground Drilling Program
Step-out drilling, 50 holes
totaling 25,000ft,
includes analytical Six Months $ 1,875,000
Administration and Overhead
Eighteen Months $ 1,150,000
Resource Estimation
Two Months $ 30,000
Grand Total Twenty Months $ 12,029,000

About EMC Metals Corp.

EMC Metals is a specialty metals and alloys company focusing on tungsten, molybdenum, vanadium, uranium and other specialty metals within North America. The company is continuing the advancement of existing projects; specifically the company's flagship property the Springer Tungsten Facility in northwestern Nevada where the General Electric Company built a 1,000 tpd underground mine and mill facility in the early 1980's for its sole domestic supply of tungsten. Springer operated for less than a year when it was shut down due depressed tungsten prices stemming from China's aggressive selling into the market. Since GE placed this operation on care and maintenance in 1982, tungsten has enjoyed an expansive growth in its applications and China has indicated it is receding from its position as the dominant supplier of metal to the world. EMC Metals acquired Springer in late 2006 and has spent approximately $38 million to date on its rehabilitation and expansion.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.

Contact Information

  • EMC Metals Corp.
    Peter Bosse
    (604) 648-4653
    EMC Metals Corp.
    Art Ettlinger
    Chief Technical Officer
    (604) 685-1964