Explor Resources Inc.

Explor Resources Inc.

July 19, 2016 09:45 ET

First Year's Earn-In Commitments Completed for Explor's Timmins Porcupine West Property

ROUYN-NORANDA, QUEBEC--(Marketwired - July 19, 2016) - Explor Resources Inc. ("Explor" or "the Corporation") (TSX VENTURE:EXS)(OTCQX:EXSFF)(FRANKFURT:E1H1)(BERLIN:E1H1) is pleased to announce that Teck Resources Limited ("Teck") has met its first year commitments under the Earn-in Option agreement for the Timmins Porcupine West Property ("TPW Property" or the "Property") by completing exploration expenditures of at least $1,500,000 prior to May 1st, 2016. They are currently working on the next phase of their earn-in.

In December 2014, the Corporation signed an agreement with Teck under which Teck can acquire an initial 55% interest in the Timmins Porcupine West property by completing exploration work expenditures totalling $8,000,000 by May 1st, 2019.

During the 2015-2016 exploration program on Timmins Porcupine West Property, Teck completed five diamond drill holes (as per the attached drill hole location plan) preceded by TerraSpec (Short Wave Infrared) analyses on coarse reject material to assist in mapping of alteration patterns and vectors to assist with diamond drill hole targeting. Additional work included sampling, whole rock geochemistry, magnetic susceptibility and TerraSpec scanning on holes TPW-10-09 and BRS 02-17 to characterize mineralization styles.

A summary of the work completed by Teck is as follows:

Work completed in 2015 included multi-element geochemical analyses of historic diamond drill core and coarse reject material; collection of short wave infrared ("SWIR") spectral data on historic core and reject material; completion of five new diamond drill holes; collection of portable X-ray fluorescence (pXRF) data on new drill core, completion of a geological and structural review of historic drill core and available geological data. An initial environmental baseline study was also completed on the Timmins Porcupine West Project by Teck.

Phase I of the 2015 exploration program was focused on data acquisition of geochemical, geological and alteration vectors towards mineralization, starting in April of 2015 and culminating in target selection for the Phase II drill program in September. Details of work completed during Phase I include:

  • 2,831 samples (including QAQC samples) from historic core were sent to Bureau Veritas Laboratories for multi-element and fire-assay analyses. In addition, 141 samples were also sent for litho-geochemical analysis (including QAQC samples). Sample medium included halved-core of previously un-sampled intervals, quarter-cut core, and coarse reject material;

  • 20,399 core and coarse reject samples (including QAQC samples) were scanned using SWIR;

  • 2,246 meters of core were logged in detail, and an additional 13 holes were reviewed to confirm deposit geology, structure, alteration, and mineralization.

The Phase I geochemical and spectral program was successful in the development of an alteration and geochemical model for select areas of the project, defining gold-bearing corridors which were subsequently incorporated into drill target selection. The 2015 Phase II program tested five targets around the West Deep zone with one 250 meters step-out, two 150 meters step-outs and two 60 meters step-outs from historic drilling. Details of the Phase II program include:

  • 4,706.5 meters of core were drilled testing five targets;

  • 2,704 meters of core was cut and sampled, totaling 2,094 samples (including QAQC samples) were sent to Bureau Veritas Laboratories for multi-element and fire-assay analyses. In addition, 60 samples were also sent for lithogeochemical analysis (including QAQC samples);

  • 1,777 spot-analyses (including QAQC) on core were analyzed with SWIR, and 1,969 spot analyses (including QAQC) on core were taken using a pXRF for geochemical pathfinders, at a rate of approximately 1 measurement per 3 meters run block;

  • 4,706.5 meters of core was logged in detail.

Lithology intersected from the 2015 drill program includes approximately 25 meters of overburden consisting of glacial till and boulders, with bedrock dominated by sandstones, mudstones, and siltstones, and conglomerates of the Porcupine assemblage, with several relatively short intervals of quartz feldspar porphyry sills and dykes ("PQF") of the Bristol Stock, and occasional Proterozoic diabase related to the Matachewan large igneous province. Where observed, fining directions in the sedimentary pile generally support a steep to overturned bedding interpretation, younging to the south which is consistent with observations from historic core in this part of the property.

Alteration consists of wide zones of weak to moderate sericite, locally pervasive, focused on portions of the holes with PQF or PQF-associated rocks such as massive sandstone and PQF-clast conglomerate. Zones of moderate to strong sericite alteration are closely associated with areas of white quartz-carbonate vein stockwork and quartz-tourmaline veining in a number of the PQF units intersected in the upper portions of TPW-15-123A and TPW15-122W1. Alteration associated with sulphide mineralization in the West Deep zone includes strong muscovite (sericite), Fe-chlorite, and Fe-carbonate (siderite) as identified visually and through SWIR analysis.

Veins on the project are typically intensely deformed, partially to completely transposed into the dominant foliation, and commonly isoclinally folded. Due to this deformation, it is not possible to fully ascertain the origin or paragenesis of the vein sets on the project with observations to date. During the 2015 exploration program, a coarse classification was used, which consisted of 3 primary vein types: quartz ± carbonate ± tourmaline veins; pyrite ("pyr") + gangue (chlorite, tourmaline, calcite) veins; and pyrite ± sphalerite ("sph") (honey colored to reddish) ± pyrrhotite ("poh") ± chalcopyrite veins. The pyr-sph-poh veins are interpreted to be the primary mineralization assemblage in the West Deep zone.

Mineralization in the West Deep zone is associated with deformed bands of pyrite, sphalerite, pyrrhotite, and chalcopyrite. These bands are interpreted as veins or lenses which have been transposed into the dominant foliation, and can be seen isoclinally folded in many sections of core. Sulphide contents in mineralized zones can range from 1-15%, with gold grades generally correlated to visual estimates of sulphide content. Outside of mineralized zones, pyrite can be found disseminated up to 1-2%, however is not associated with significant gold grades, and usually does not contain chalcopyrite, pyrrhotite, or sphalerite.

All five of the completed 2015 drill holes returned sporadic multi-gram gold grades in the hanging wall to the West Deep zone. Only hole TPW-15-120 returned significant mineralization along strike of the West Deep zone, with assay results of 8.379 g/t Au over 2.4 meters from 710.2 to 712.6 meters including one section of 17.9 g/t Au over 0.7 meters.

Teck is currently integrating results from 2015 with ongoing work, in order to optimize exploration plans moving forward.

The Timmins Porcupine West Gold Property consists of 185 unpatented mining units and 3 patented claims located in the Bristol and Ogden Townships in the Timmins-Porcupine Mining Camp for a total 3,200 hectares. The highway 101 bisects the property and provides access from the city of Timmins located 13 km to the east. The 3-D geological model may be viewed on our website: www.explorresources.com. The property has been explored since 1927 by numerous ground geophysical surveys and diamond drilling of up to 111 holes. In 1984, Dome Exploration discovered and delineated a gold mineralized zone that was approximately 350 meters long and 45 meters wide and open below 350 meters of vertical depth.

The Timmins Porcupine West Project has a structural target model developed by Explor based on the "Hollinger-McIntyre-Coniaurum System". The Hollinger-McIntyre-Coniaurum (HMC) System has produced a total of over 30 million oz of gold and is spatially associated with the Pearl Lake Porphyry.

Chris Dupont, P.Eng is the qualified person responsible for the technical information contained in this release.

Explor Resources Inc. is a publicly listed company trading on the TSX Venture (EXS), on the OTCQX (EXSFF) and on the Frankfurt and Berlin Stock Exchanges (E1H1).

This Press Release was prepared by Explor. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

About Explor Resources Inc.

Explor Resources Inc. is a Canadian-based natural resources company with mineral holdings in Ontario, Québec, Saskatchewan and New Brunswick. Explor is currently focused on exploration in the Abitibi Greenstone Belt. The belt is found in both provinces of Ontario and Québec with approximately 33% in Ontario and 67% in Québec. The Belt has produced in excess of 180,000,000 ounces of gold and 450,000,000 tonnes of Cu-Zn ore over the last 100 years. The Corporation was continued under the laws of Alberta in 1986 and has had its main office in Québec since 2006.

Explor Resources Flagship project is the Timmins Porcupine West (TPW) Project located in the Porcupine mining camp, in the Province of Ontario. Teck Resources Limited is currently conducting an exploration program as part of an earn-in on the TPW property. The TPW mineral resource (Press Release dated August 27, 2013) includes the following:

Open Pit Mineral Resources at a 0.30 g/t Au cut-off grade are as follows:
Indicated: 213,000 oz (4,283,000 tonnes at 1.55 g/t Au)
Inferred: 77,000 oz (1,140,000 tonnes at 2.09 g/t Au)
Underground Mineral Resources at a 1.70 g/t Au cut-off grade are as follows:
Indicated: 396,000 oz (4,420,000 tonnes at 2.79 g/t Au)
Inferred: 393,000 oz (5,185,000 tonnes at 2.36 g/t Au)

This document may contain forward-looking statements relating to Explor's operations or to the environment in which it operates. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and may be beyond Explor's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth in other public filling. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Explor disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

A map of TECK RESOURCES LIMITED - TIMMINS PORPUCINE WEST 2015 DRILLING is available at the following address: http://media3.marketwire.com/docs/160719_EXS_Map.pdf

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