SOURCE: Genesis Metals Corp

Genesis Metals Corp

December 12, 2016 09:00 ET

Genesis Metals announces further assay results from re-sampling of the Chevrier Deposit - Results include 6.83 g/t Au / 5.4 m including 11.08 g/t Au / 3.4 m

VANCOUVER, BC--(Marketwired - December 12, 2016) - Genesis Metals Corp (TSX VENTURE: GIS) ("Genesis" or the "Company") is pleased to announce further results from resampling of drill core from programs previously conducted by other companies between 1989 to 2008 at its 100% owned Chevrier gold project (the "Project") near Chibougamau, Quebec. These new results complement news issued by the Company on November 17, 2016 and December 6, 2016.

The Company resampled 14 core drill holes from the Chevrier main zone to validate both higher and lower gold grades. A total of 574 samples were analysed. The reassayed intervals from 9 holes drilled by Geonova between 1996 and 1997 were previously reported by the Company. Results from re-sampling and re-assaying of 5 holes drilled by Minnova between 1989 to 1991 are presented herein. Hole locations are presented on a map that may be found on the website of the Company. Assay highlights include;

  • 6.83 g/t Au / 5.4 m including 11.08 g/t Au / 3.4 m and 17.97 g/t Au / 0.65 m in Hole FA-51
  • 3.02 g/t Au / 12.3 m including 6.67 g/t Au / 1.5 m in Hole DO-43
  • 2.46 g/t Au / 14 m including 4.56 g/t Au / 3.5 m in Hole DO-43
  • 2.38 g/t Au / 9.2 m including 4.01 g/t Au / 1.1 m in Hole DO-20

The table and X-Y chart below provide further comparison of the results of the re-assay program. The 14 resampled drill holes represent some 12% of a total of 123 holes that have been previously drilled in the Chevrier main zone by other companies. The X-Y chart shows very close agreement between original core assays and the Company's resampling and assaying.

The new assay data support the results from this earlier drilling and aid the Company's objective of establishing the veracity of assay results that were reported prior to the implementation of National Instrument 43-101.

Genesis' CEO Brian Groves commented, "These final results from our resampling and analysis of existing drill core from work by other companies carried out prior to National Instrument 43-101 provide a high level of confidence in the results of previous work. We will now focus on understanding the controls to gold mineralization in the main zone and elsewhere on our large property within this prospective greenstone belt. This understanding will enable us to plan future drilling programs on the property."

Future Activities

The Company anticipates the following activities next year:

  1. Geological modeling of the main zone to enable an understanding of controls on mineralization; this will allow more efficient targeting for further evaluation by drilling
  2. Evaluation of priority targets arising from the compilation, now nearing completion, of all data for the entire Chevrier property.
  3. Geophysical surveys in early 2017 to better define potential drill targets within priority areas.
  4. Dependent upon the results of geophysical surveys, geological mapping and sampling of the new target areas, a commitment to drill test ranked targets.
 
CORE RESAMPLING RESULTS
New assays from Genesis Metals sampling compared to original Minnova assays
HOLE  FROM  TO  BEST INTERVALS
   (m)  (m)   
DO-43  174  174.6  Genesis: 9.28 g/t Au/0.6 m
         Minnova: 5.10 g/t Au/0.6 m
DO-43  179.1  191.4  Genesis: 3.02 g/t Au/12.3 m including 6.67 g/t Au/1.5 m
         Minnova: 2.56 g/t Au/12.3 m including 4.92 g/t Au/1.5 m
DO-43  207.2  221.2  Genesis: 2.46 g/t Au/14 m including 4.56 g/t Au/3.5 m
         Minnova: 2.62 g/t Au/14 m including 4.90 g/t Au/3.5 m
FA-51  184.1  189.5  Genesis: 6.83 g/t Au/5.4 m including 11.08 g/t Au/3.4 m and 17.97 g/t Au/0.65 m
         Minnova: 6.98 g/t Au/5.4 m including 9.71 g/t Au/3.4 m and 11.00 g/t Au/0.65 m
FA-51  209.7  211.95  Genesis: 2.56 g/t Au/2.25 m including 4.52 g/t Au/0.75m
         Minnova: 3.34 g/t Au/2.25 m including 4.23 g/t Au/0.75m
FA-51  214.9  215.7  Genesis: 4.66 g/t Au/0.8 m
         Minnova: 3.43 g/t Au/0.8 m
FA-51  254.25  255.3  Genesis: 2.03 g/t Au/1.05 m
         Minnova: 2.23 g/t Au/1.05 m
FA-51  264.6  270.05  Genesis: 1.14 g/t Au/5.45 m
         Minnova: 1.74 g/t Au/5.45 m
FA-51  271.3  272.8  Genesis: 3.84 g/t Au/1.5 m
         Minnova: 3.05 g/t Au/1.5 m
FA-51  317.9  322.5  Genesis: 1.53 g/t Au/4.6 m
         Minnova: 1.78 g/t Au/4.6m
FA-51  326.35  327.9  Genesis: 3.14 g/t Au/1.55 m
         Minnova: 3.27 g/t Au/1.55 m
DO-20  131.2  132.65  Genesis: 2.94 g/t Au/1.45 m
         Minnova: 1.85 g/t Au/1.45 m
DO-20  143.75  144.6  Genesis: 2.87 g/t Au/0.85 m
         Minnova: 4.17 g/t Au/0.85 m
DO-20  150.7  159.9  Genesis: 2.38 g/t Au/9.2 m including 4.01 g/t Au/1.1 m
         Minnova: 2.87 g/t Au/9.2 m including 4.35 g/t Au/1.1 m
       

The widths of mineralized intervals are not true widths as these cannot be determined with the information available

The assay results obtained by Minnova are historic in nature. The Company believes that the comparison of results presented in the preceding Table do support the veracity of the historic results and that these results are relevant and reliable. The Company further believes that the presence of free gold grains which can be randomly distributed in the sampled cores contribute to the variance in assay values between those obtained by Minnova and Genesis.

Quality Control and Quality Assurance

All drill core examined and resampled was stored at the former Copper Rand mine site in Chibougamau. Due diligence undertaken by the Company to ascertain and confirm the provenance of the core included: 1) confirmation of drill hole numbers on core boxes with those numbers cited within assessment reports filed by each of Minnova and Geonova with the Quebec government (MERN - Ministère de l'Energie et des Ressources naturelles), 2) comparison of drill logs within said assessment reports to visual inspection of the core by representatives of the Company and 3) confirmation of assay sample intervals, assay tags and assay certificates with those cited within assessment reports.

Core from drilling completed by Minnova was sawn in halves and one half was shipped for analysis. The remaining half in the core boxes and available to the Company and entirely sampled by Genesis with strict adherence to the sampling intervals originally utilized by Minnova. Prior to the collection of these samples, the split core was re-logged and systematically photographed.

All samples collected from the existing core and new trench were sent to SGS laboratories in Quebec City for sample preparation and then to Lakefield, Ontario for analysis. Upon arrival, all samples were sorted and checked against the sample submission form before entering the preparation laboratory. All samples received by SGS were logged in and sorted with their LIMS system. The samples were verified against the Company's submission list. If needed the samples were then dried at 60 degrees C. All samples were then crushed to better than 90% passing -10 mesh. The samples were then riffle split and an approximately 1000-1500 grams aliquot were pulverized to 85% passing -150 mesh and analyzed for gold by fire assay on a fraction of 50 grams with an AES finish and a gravimetric finish for values greater than 10 g / t Au. For quality control, in each submission, certified standards and blanks were inserted at regular intervals throughout the sequence of samples. The data were reviewed by Robert Banville, eng., Qualified Person as defined by National Instrument 43-101.

Mr. Andre Liboiron, P. Geo, Exploration Manager for the Company and the Qualified Person as defined within National Instrument 43-101 for the Chevrier Project, has supervised the preparation of and has approved the scientific and technical disclosure in this news release.

About Genesis Metals
The Company is focused on advancing the Chevrier Gold Project located 35 km southwest of Chibougamau, Quebec. The Project is located along the Fancamp Deformation Zone, 15 km northeast of the high-grade Monster Lake gold discovery.

Genesis also owns 100% the 203 km2 October Gold project located in the southern Swayze greenstone belt in Benton Township, Ontario. This project is located 35 km northwest of IAMGold's Cote Lake deposit and 50km southeast of Goldcorp's Borden gold deposit.

ON BEHALF OF THE BOARD

"Brian Groves"
Brian Groves
CEO and Director

"Jeff Sundar"
Jeff Sundar
Executive Vice-President and Director

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.

Certain disclosure in this release, including statements regarding the intended use of proceeds from the private placement, constitute forward-looking information or statements (collectively, "forward-looking statements") for the purpose of applicable securities laws. In making the forward-looking statements, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals required to complete the Company's planned exploration and development activities, that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that the Company will be unable to obtain required regulatory approvals on a timely basis or at all, that actual results of the Company's exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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