Era Resources Inc.
TSX VENTURE : ERX

Era Resources Inc.

October 31, 2016 10:34 ET

Era Resources Announces Concluding Drill Results for Its Successful 2016 Program at Yandera Project

TORONTO, ONTARIO--(Marketwired - Oct. 31, 2016) -

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Era Resources Inc. ("Era" or the "Company") (TSX VENTURE:ERX) is pleased to announce the final batch of assay results from the highly successful 2016 Infill and Proximal Drill Campaign at the Yandera Project. The program's goal was to advance a large porphyry copper system in the highlands of Papua New Guinea, and the results have been very positive for identifying additional copper mineralization that is likely to convert new material to resource.

The 2016 resource drilling program encountered good additional copper mineralization in gaps within the footprint of the 2015 resource model and intercepted good mineralization outside of the boundaries of the 2015 resources. Drilling results within the 2015 resource, such as the 196.7 metres averaging 0.278% Cu from YD578 in the Dengru area (see release dated September 7, 2016), the 78.0 metres averaging 0.374% Cu from YD593 in the South Dimbi area and the 144.9 metres averaging 0.296% Cu from YD596 in the Dimbi area, should convert significant volumes of waste to good grade resource. Drilling results at the periphery of the 2015 resource, such as the 218.7 metres averaging 0.201% Cu (including 33.0 metres averaging 0.526% Cu) from YD569 in the South Dimbi area (see release dated July 27, 2016), the 78.0 metres averaging 0.432% Cu from YD 582 in the Benbenubu area and the 69.0 metres averaging 0.284% Cu from YD583 in the East Gremi area (see release dated September 7, 2016), are likely to add resource and suggest excellent potential for resource growth to the southeast with future exploration. Collectively, the 2016 drilling results are expected to expand the resource estimate and improve the internal waste to resource ration in portions of the modelled open pit shells.

Era Resources CEO Pieter Britz added that, "We are very pleased to see results of this caliber. The work in 2016 has produced valuable data for refining and expanding the resource. We remain very excited about the potential at Yandera."

An updated resource estimate for the Yandera Project incorporating all the results from the drill campaign is planned to be completed by the end of 2016. Prefeasibility work on the project is planned to begin in 2017.

Yandera 2016 Drilling Summary

The 2016 diamond drilling program was designed to infill and expand the Yandera resource, testing opportunities both within and around the margin of the known resource where discovery of additional mineralization would have potential to significantly impact the 2015 resource estimate and positively affect potential open pit designs. The infill work focused in the Dengru, Dimbi, South Dimbi, Gremi, Imbruminda, Gamagu and Kauwo areas. The proximal work tested targets east of South Dimbi, east of Omora, at East Gremi and within the Benbenubu areas (Figure 1).

After completion of the resource drilling, the company drilled an additional six diamond drill holes to collect geotechnical information from within the resource. Data from the geotechnical program will provide further constraints on rock strength and assist with future modeling for possible mine designs.

Results

The company has received assay results for the final 18 drill holes (see locations on Figures 1-9). Hole locations and significant intersections are shown below in Tables 1 and 2 for these last 18 holes.

Benbenubu

In addition to previous results in the Benbenubu area (see releases dated July 27, 2016, and September 7, 2016), drilling at YD588, YD590, and YD592 intersected copper mineralization well outside the southeastern limits of the 2015 resource estimate that is likely to add resource (Figures 2 and 3). Collectively, these results appear to show a continuation of near-surface mineralization to the southeast that remains largely open to exploration for further resource expansion to the southeast.

East Gremi

The results of YD589 and YD591 show additional copper mineralization in the East Gremi area. Drilling in this area is likely to add resource to the southeast of South Dimbi, outside the 2015 resource estimate (Figure 4). The southeasterly striking mineralized trend in the East Gremi area is open to southeast and future exploration may show continuation of this trend.

South Dimbi

Previous results from the South Dimbi showed higher grade copper mineralization, and YD593 intersected copper mineralization that is likely to extend the zone of higher grade copper mineralization observed in YD572 (Figure 5). Results from drilling in the South Dimbi area suggest that the zones of structurally controlled mineralization may have continuity along a northwesterly strike. The additional copper mineralization intercepted here may increase confidence in the possible connectivity with other mineralized zones along trend as well as adding resource by conversion of volumes classified as waste in the 2015 resource model.

Dimbi, Gamagu and Kauwo

Results from drilling in the Dimbi, Gamagu and Kauwo areas show previously unrecognized copper mineralization that may add resource and improve local connectivity of resources in these areas (as observed in YD594, YD596, YD598, YD600, YD602, YD603, YD604, YD605). Results in YD596 showed strong copper mineralization near the previously interpreted gap between Dimbi and Gamagu, and these results may both add resource and increase likelihood of possibly connecting resources from these two areas (Figure 6). Results in YD603 show copper mineralization within a gap in historical data, which may add resource in the Gamagu area (Figure 7).

Gremi and Imbruminda

Drilling at YD595, YD597, YD599 and YD601 in the area between Gremi and Imbruminda intersected copper mineralization that may convert material to resource (Figures 8 and 9). These results show the presence of copper mineralization in a gap in the historical data and may improve the possibility of connecting resources from Gremi and Imbruminda, which could improve the strip ratio in future resource models.

Table 1. Drill Hole Collars. Below are drill hole collar locations, inclination, azimuth and total depth for the remaining 18 holes as outlined above, with completed assays. Locations are UTM coordinates in reference to Australian Geodetic Datum 1966. These locations were measured with handheld GPS and have not yet been surveyed to greater resolution. The azimuth for each hole has been corrected for magnetic declination.

HOLE Easting
(m)
Northing
(m)
Elevation
(m)
Azimuth Inclination Total
Depth (m)
YD588 293880 9363719 1861 301.1° -60.6° 258.0
YD589 293715 9365157 1821 203.5° -72.7° 201.9
YD590 293667 9363501 1853 135.1° -76.6° 236.0
YD591 293805 9364903 1661 040.5° -70.5° 210.2
YD592 294077 9364404 1769 255.7° -66.0° 211.5
YD593 293262 9365499 1826 220.5° -75.6° 232.5
YD594 293124 9365887 1931 163.3° -70.3° 204.5
YD595 292472 9365150 1964 031.7° -69.9° 209.4
YD596 292654 9366247 2026 037.1° -65.1° 204.9
YD597 292472 9365152 1963 211.9° -75.7° 201.2
YD598 292746 9366183 2073 187.2° -69.6° 202.6
YD599 292606 9365029 1871 298.9° -61.0° 206.9
YD600 292485 9366010 1978 047.9° -70.4° 215.4
YD601 292176 9365029 2069 031.7° -59.6° 200.9
YD602 292494 9366311 1970 207.4° -75.4° 200.1
YD603 292138 9366257 2014 185.5° -60.1° 206.9
YD604 292657 9365749 1936 015.6° -70.6° 253.1
YD605 291994 9366260 1966 325.0° -60.5° 166.5

Table 2. Significant intersections from assay results of the last 18 holes of drilling at Yandera. Results are grouped by area. Composites were based on a 0.150% Cu cut-off, as used in the 2015 resource estimation and may include up to 10 metres internal waste. Intervals are based on drilled thicknesses and may not reflect true thickness. Note that ppm is parts per million and 1ppm = 1 gram per tonne.

Area Hole From (m) To (m) Interval (m) Cu (%) Au (ppm) Mo (%)
YD588 81 90 9 0.177 0.010 0.002
102 111 9 0.307 0.015 0.001
135 150 15 0.190 0.011 0.002
Benbenubu YD590 18 45 27 0.196 0.013 0.001
87 123 36 0.218 0.009 0.005
135 186 51 0.184 0.010 0.005
201 234 33 0.169 0.012 0.007
YD592 87 102 15 0.158 0.011 0.007
YD589 15 57 42 0.238 0.015 0.001
75 105 30 0.285 0.048 0.002
including 93 105 12 0.481 0.084 0.004
135 201.9 66.9 0.216 0.050 0.004
including 165 201.9 36.9 0.261 0.075 0.004
East Gremi YD591 3 9 6 0.178 0.017 0.001
24 45 21 0.361 0.022 0.005
including 24 33 9 0.663 0.031 0.006
63 102 39 0.173 0.023 0.005
135 210.3 75.3 0.224 0.033 0.003
including 156 183 27 0.354 0.031 0.004
YD593 0 15 15 0.168 0.053 0.001
27 105 78 0.374 0.051 0.004
including 45 57 12 0.510 0.050 0.007
South Dimbi including 78 102 24 0.578 0.045 0.004
174 192 18 0.283 0.033 0.025
207 232.5 25.5 0.765 0.049 0.002
YD594 99 123 24 0.637 0.041 0.000
including 108 123 15 0.922 0.051 0.000
156 174 18 0.393 0.047 0.000
183 192 9 0.270 0.095 0.003
Dimbi YD596 60 204.9 144.9 0.296 0.065 0.007
including 105 123 18 0.640 0.050 0.007
including 159 174 15 0.361 0.042 0.008
YD598 69 84 15 0.207 0.056 0.002
YD600 108 114 6 0.243 0.171 0.008
195 201 6 0.237 0.129 0.013
YD604 153 171 18 0.173 0.029 0.004
192 204 12 0.764 0.177 0.005
YD595 18 45 27 0.151 0.047 0.001
114 147 33 0.204 0.157 0.006
Imbruminda 159 174 15 0.339 0.088 0.008
YD597 72 174 102 0.241 0.038 0.006
including 123 135 12 0.542 0.083 0.009
YD601 126 132 6 0.185 0.004 0.001
Gremi YD599 27 48 21 0.218 0.051 0.010
123 153 30 0.207 0.060 0.007
162 204 42 0.164 0.017 0.003
YD602 6 36 30 0.206 0.114 0.016
66 72 6 0.204 0.031 0.016
93 114 21 0.185 0.025 0.003
159 180 21 0.184 0.023 0.010
Gamagu including 171 180 9 0.270 0.035 0.017
YD603 18 72 54 0.188 0.233 0.017
including 51 72 21 0.240 0.135 0.028
84 117 33 0.232 0.668 0.010
Including 108 117 9 0.473 1.896 0.011
Kauwo YD605 36 42 6 0.167 0.062 0.002
66 78 12 0.361 0.107 0.004
99 105 6 0.162 0.073 0.002
117 123 6 0.198 0.028 0.001
135 144 9 0.165 0.041 0.003

Quality Control

Analyses were completed by ITS (PNG) Limited, a laboratory independent of the Company located at Lae, PNG, utilizing fire assay and multi-element ICP-AES methods with internal checks, blanks, duplicates and standards at various intervals in the sequence of samples. Era also inserted standards and blanks within the sequence of samples of halved core. The results of quality control samples indicate that the assays are reliable. Intervals of core sampled were generally 3 metres in length.

Qualified Person

Scientific and technical information herein was prepared and approved by Dr. Nathan Chutas, Exploration Manager of the Company, a certified professional geologist and a "qualified person" (as defined by National Instrument 43-101 ("NI 43-101")).

Cautionary Statement Regarding Forward-Looking Information

This news release contains forward looking information, including but not limited to statements with respect to ongoing exploration at Yandera and Pomiea. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could", or "might" occur or to be achieved and any other similar expressions.

In providing the forward-looking information in this news release, the Company has made numerous assumptions regarding: (i) the accuracy of exploration results received to date; (ii) anticipated costs and expenses; (iii) the accuracy of the Company's mineral resource estimate; (iv) the future price of copper and molybdenum; and (v) that the supply and demand for copper, molybdenum, and other metals develop as expected. Although management believes that the assumptions made and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information, including actual results of exploration activities, changes in market conditions, risks relating to international operations, fluctuating metal prices and currency exchange rates, and other risks of the mining industry. Some of these risks, uncertainties and other factors are described under the heading "Risks Factors" in the Company's annual information form available on the Company's profile on SEDAR at www.sedar.com. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by applicable securities laws, Era does not undertake any obligation to update forward-looking information even if circumstances or management's estimates or opinions should change. Readers should not place undue reliance on forward-looking information.

For further information on the Yandera Project and the resources contained therein, please refer to the Company's Canadian NI 43-101 technical report "NI 43-101 Technical Report: Updated Resource Estimate Yandera Copper Project, Papua New Guinea" dated June 19, 2015, and with an effective date of May 1, 2015, which is available on the Company's website and at the SEDAR website at www.sedar.com.

NEITHER THE 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.

To view Figures 1–9, please visit the following link: http://media3.marketwire.com/docs/1074449.pdf

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