Huakan International Mining Inc.
TSX VENTURE : HK

Huakan International Mining Inc.

January 19, 2011 08:30 ET

Huakan Intercepts 8.77 Metres Grading 4.24 g/t Au, 78.38 g/t Ag, 2.79% Pb and 7.16% Zn at J&L

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2011) - Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company") announces results from the next eight holes of an underground drilling program on its 100% owned gold-silver-lead-zinc J&L property, located near Revelstoke, BC. The initial drill program of 2,000 metres has been increased to 7,800 metres due to better than anticipated results and the Company's desire to aggressively advance the project towards pre-feasibility. The Company has completed 49 holes in 6,035 metres to date. The program is expected to be completed by early February 2011 and is aimed at verifying historic drilling and expanding limits of the known mineralization of the Main Zone so that a National Instrument 43-101 compliant resource estimate can be completed in the spring of 2011.

The J&L property is one of the largest undeveloped polymetallic deposits in British Columbia. The 2,325 hectare property hosts the significant precious metal and polymetallic Main Zone deposit. The Main Zone is a stratiform, structurally deformed massive sulphide deposit. Surface exploration has traced the Main Zone for 3 kilometres and historic drilling has identified the Main Zone for 1.4 kilometres in strike length and a down dip extent of 800 metres. The Main Zone averages 2.5 metres thick. The Main Zone is the focus of the current drill program.

The current drill program consistently intercepts Main Zone type mineralization of alternating bands of massive sulphide mineralization, stringer sulphide mineralization, and lesser mineralized sections hosted in phyllite and limestone. Results include 8.77 metres (true thickness estimated) grading 4.24 g/t Au, 78.38 g/t Ag, 2.79% Pb and 7.16% Zn, and 1.33 metres (true thickness estimated) grading 13.92 g/t Au, 94.42 g/t Ag, 3.05% Pb and 6.83% Zn. Highlights from holes MM10-11 to MM10-18 are tabled below.

Highlights
Hole ID From (m) To (m) Length (m) Est. True Thickness (m) Au (g/t) Ag (g/t) Pb (%) Zn (%)
MM10-11 47.85 49.91 2.06 1.82 4.66 36.62 1.50 0.88
MM10-12 88.98 91.93 2.95 2.09 0.09 28.14 1.96 5.40
  105.80 118.20 12.40 8.77 4.24 78.38 2.79 7.16
including 105.80 111.60 5.80 4.10 4.89 112.35 3.74 8.10
including 112.60 115.15 2.55 1.80 0.99 62.24 3.74 12.87
including 115.15 118.20 3.05 2.16 7.39 64.23 1.75 2.90
  127.20 130.20 3.01 2.13 2.52 181.47 0.96 0.51
  138.20 139.70 1.50 1.06 3.01 24.87 0.36 0.39
MM10-13 97.18 98.79 1.61 1.46 6.77 49.99 1.65 2.25
MM10-14 141.33 143.54 2.21 1.20 4.98 68.89 2.98 2.88
MM10-15 111.08 112.28 1.20 1.04 3.94 188.23 1.55 1.83
MM10-16 126.18 130.71 4.53 2.27 5.55 82.92 2.18 3.64
MM10-17 88.37 91.48 3.11 2.69 6.08 52.48 1.71 2.38
MM10-18 100.65 103.30 2.65 1.33 13.92 94.42 3.05 6.83

To date, a high density drill pattern (approximately 30 metre drill centres) defines the Main Zone on longitudinal section over an area of 800 metres long by 200 metres down dip. The deposit is open along strike and both up dip and down dip. Hole MM10-11 was drilled in the same northwest cluster previously announced in NR11-1 and holes MM10-12, 14, 16 and 18 extend the Main Zone down dip over a longitudinal surface area of 120 metres by 50 metres. Holes MM10-13, 15 and 17 were drilled approximately 420 metres to the southeast and over a longitudinal surface area of 60 metres by 60 metres.

The results are in line with historic drilling on the Main Zone. For comparison, the Main Zone has an historic resource, which was prepared by Equinox Resources Ltd. in 1991 as "Proven and Probable Ore Reserves" of 1.7 million tonnes grading 7.38 g/t gold, 75.9 g/t silver, 2.64% lead and 4.43% zinc and an historic "Possible Ore Reserve" of 1.9 million tonnes grading 7.12 g/t gold, 85.5 g/t silver, 3.32% lead and 3.48% zinc. Huakan has not prepared nor confirmed this resource estimation and as it pre-dates National Instrument 43-101, it does not comply with NI 43-101 requirements for mineral resource estimation. Huakan does not treat these numbers as a current resource on the property and the resource should not be relied upon, but remains a historic figure. Mr. David Makepeace, P.Eng. prepared a NI 43-101 geological report for Merit (now Huakan) dated April 13, 2007. In Mr. Makepeace's report, the historic "Proven and Probable Ore Reserve" category would likely be equivalent to an "Indicated Mineral Resource" category and the historic "Possible Ore Reserve" category would likely be equivalent to an "Inferred Mineral Resource" category under the current CIM classification (CIM Definition Standards, 2004).

The current drill program is under the supervision of Paul Cowley, P.Geo., the Company's Qualified Person and VP Exploration. BQTW-sized core samples are cut in half and sent to Eco Tech Laboratory Ltd. (Stewart Group) in Kamloops, BC. Samples are assayed for gold by fire assay (50 gram charge) as well as assayed for silver, lead and zinc. The Company inserts standards, blanks and duplicate samples throughout the sample sequence as quality control checks.

Assays on the remaining drill holes are pending.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to, statements concerning: the results of the Company's drill program at the J&L project and the Company's exploration plans. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Huakan International Mining Inc.
    Paul Cowley
    P.Geo.
    (604) 694-2344
    or
    Huakan International Mining Inc.
    Jeffrey Ren
    Chief Financial Officer
    (604) 694-2344