Metalore Resources Limited

Metalore Resources Limited

December 20, 2013 17:02 ET

Metalore Resources Limited: Copper Discovery and Continued Wide Gold Intersections

SIMCOE, ONTARIO--(Marketwired - Dec. 20, 2013) - In February, 2013, Metalore completed five kilometers of bush cutting, chaining and GPS establishment of the "Sunfish Lake" grid. This new grid is located in pristine, relatively unexplored wilderness, located over one km southeast of the Company's main Gold Resource (NI 43-101 compliant) on its 100 % owned Cedartree Lake Property, Northwestern Ontario. Immediately thereafter, in March and April, the Company completed a "deep" IP (Induced Polarization) / Resistivity geophysical survey on the new grid. The Resistivity component of this type of geophysical survey is capable of differentiating between water and metallic minerals, both of which may be conductive in mass; whereas, the Chargeability component of the survey can specifically identify the presence of metallic minerals, even in progressively deeper, disseminated settings. The Sunfish Lake survey identified at least six moderate to strong Chargeability targets in various rock types at the sixty meter depth and four, consistent, very high intensity targets at 100 meter+ depths.

The primary objective of this grid was to investigate geophysical conductors associated with a geological contact between a prominent felsic intrusive (north limb of the Stephen Lake Pluton) and adjacent volcanic rocks. The contact area is masked by a kilometer long watershed-muskeg bog, which meanders along a 200 meter wide topographic low, with steep (40 meter high) rocky slopes on both sides.

In September and October, 2013, twelve diamond drill holes, totaling 1,555 meters were completed. The drill contract was purposely restricted to a forty meter maximum production per day to enable careful examination of drill core before the rig could be moved any distance to subsequent set-ups.

Drilling commenced on the farthest, most remote location on the east extremity of the Sunfish grid and concluded over 1 km to the north on the main gold zone. Six of the eight holes drilled on the new grid tested both geophysical and geological target concepts and intersected variable amounts of disseminated "barren" sulphides (mostly pyrite and minor pyrite). Only three of these holes actually pierced the felsic intrusive/volcanic contact. One of these holes (13-05) drilled due north at 43 degrees dip on Line 31E from 125 S (see map 2013 Annual Report), intersected a 17 meter wide section of disseminated chalcopyrite mineralization within a wider band of fragmental volcanics at the felsic intrusive contact. contact.

To view Table 1, click on the following link:

Hole 13-07 was subsequently drilled 40m to the east of 13-05 but had only slightly elevated copper and zinc values. It has to be noted that the mineralized zone is represented by a nominal chargeability anomaly that fades immediately east of Hole 13-05 intersection but strengthens dramatically [off scale] at depth, to the west, for over 500 meters in length to the extremity of the grid [crossline 26E].

Since this does represent a copper discovery on the property - it was decided that extensions of this zone (both lateral and deep) could be more effectively drilled from the muskeg after freeze-up with skidoo and skidder equipment. In that regard, we are planning to return for a follow-up drill program early in 2014, conditions permitting. "Forward" Natural Gas contracts (previously in place) averaging $4.49 USD + proprietary contract bonuses and recent overall strengthening of the gas market, will provide adequate cash flow for the anticipated 2014 drill program.

One kilometer northwest of the Sunfish grid two short holes were drilled westerly at -45 dip, across a granodioritic unit which lies "on strike" 350 meters southwest of the main (NI 43-101) Gold Resource, and yielded as follows:

Drillhole From (m) To (m) Core
Length (m)
Au g/t
13-09 4.70 61.60 56.60 0.564
including 7.40 21.60 14.20 1.15
including 18.60 21.60 3.0 2.56
13-10 10.00 70.70 60.70 0.501

Although Hole 13-09 and 13-10 did not return high assays, surface sampling yielded only trace amounts from numerous selected grab samples. Therefore, further enrichment is possible at depth. It must be emphasized that two hundred meters still farther south along this same trend, two of Metalore's holes drilled in 2003 intersected coarse, visible gold with higher assays. Therefore, this wide corridor of gold enrichment in the assemblage of felsic intrusive and volcanic tuff has now been traced and verified for over one kilometer and certainly warrants further extensive exploration.

The final hole was drilled across the extreme northerly flank into the footwall of the main Gold Resource (as recommended by Claude Larouche, P Eng, author of the 2012 NI 43-101 compliant report). The purpose of this hole was to verify and extend the width and possible resource tonnage. It yielded as follows:

Hole 13-12 (Az 154, Dip -55):

Drillhole From (m) To (m) Core
Length (m)
Au g/t
13-12 48.3 109.2 60.90 2.71
including 64.4 71.7 7.30 4.34
including 100.5 105.76 5.25 10.00
also: 167.8 168.6 0.80 62.02

Following detailed geological logging, drill core samples were split on-site by diamond sawing. A total of 414 NQ sized half-core samples were submitted for assay results. As part of the Company's QA/QC protocol, sawn core samples were sent to either Accurassay an accredited laboratory in Thunder Bay, Ontario or Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario. Following preparation, all gold assaying was performed using a 30g standard fire assay with an Atomic Absorption finish. All base metal and trace element assaying was performed using an aqua regia digestion with ICP finish. The QA-QC program includes the insertion of certified reference standards as part of the strict sampling protocol. Pulps and rejects are held in long term storage at both assay facilities.

Armen Chilian, P.Geo, a qualified person as defined in National Instrument 43-101, supervised the drill program and QA-QC procedures, and has reviewed the contents of this news release.

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