Rupert Resources Ltd.
TSX VENTURE : RUP
FRANKFURT : R05

Rupert Resources Ltd.

March 01, 2017 07:00 ET

New Drilling Confirms Mineralization at Depth at Karoliina and on North Flank West - Including 6.9 g/t Gold Over 12.0m; Mobilization of Contractors Underground

TORONTO, ONTARIO--(Marketwired - March 1, 2017) - Rupert Resources Ltd. ("Rupert" or the "Company") (TSX VENTURE:RUP)(FRANKFURT:R05) reports results from a further 9,666m of diamond drilling from 41 holes from surface and 42 holes from underground. This drilling, which was undertaken through November 2016 to January 2017, targeted step-out mineralisation of the Karoliina zone on the south flank of Pahtavaara and infill and step-out drilling of the North Flank West of the permitted Pahtavaara Mine in Northern Finland's emerging Central Lapland Greenstone Belt.

"These new drilling results have successfully extended the mineralized envelope at Karoliina to the west, to depth, and to surface, and drilling along the North Flank is delineating multiple mineralized horizons," said Mike Sutton, Director. "The North Flank zones provide immediately accessible mineralization."

"We are pleased to have launched this week, infrastructure projects that will modernize the pumping system and deploy a low cost communication system underground at Pahtavaara that will have near fiber optic capability," added Brian Hinchcliffe, CEO. "The first mining contractors started up this week as well, with development mining to commence April 1. We are also pleased to report that the licenses for the Pahtavaara mine and concessions have been officially transferred into the name of the Company by the Finland mining authorities."

North Flank West is located to the northwest of the northern most open pit at Pahtavaara where mineralization has been identified in the pit walls. This northwest extension was tested with 29 holes from underground (2,529m) and 16 holes from surface (2,265m). Intersections include holes 116231 with 34.3 grams per ton of gold ("g/t Au") over 2.75m (including 89.4 g/t Au over 1.0m), 116232 with 6.9 g/t Au over 12.0m (including 58 g/t Au over 1.0m) and 116234 yielding 4.8 g/t Au over 11.6m (including 9 g/t Au over 5.0m). The first two intersections are located only 30m from an access drift.

The remaining 4515m of drilling reported herein today, tested the large Karoliina block area that was discovered west of the mine at the time of its closure. Hole 116080, located on the western edge of the currently defined mineralized envelope, intersected 5.3 g/t Au over 6.8m (including 24.0 g/t Au over 1.0m). Two holes, 116075 (2.5 g/t Au over 4.0m) and 116076 (2.6 g/t Au over 3.0m), confirmed mineralisation 50m below the previously wireframed mineralized zone. Two holes drilled in the lower middle region of Karoliina, returned 4.3 g/t Au over 16.0m (hole 117003), and 4.1 g/t Au over 16.0m (hole 117004), located on either side of a previous hole that returned 2.6 g/t Au over 14.0m (hole 113810). In addition, two holes drilled in the upper region of Karoliina, returned 5.0 g/t Au over 14.2m (hole 117006), and 2.6 g/t Au over 15.4m (hole 117005), while hole 117018 intersected 23.3 g/t Au over 2.2m above the wireframed zone and the 42m to surface is open. Rupert will study if this zone could be accessible by ramp from surface and this would aid in possible future mining, ventilation, secondary egress, and most importantly, shorten the timeline to production plus trucking distance, for mineralisation that has been delineated westwards of existing mine development.

The 2017 drill program will continue to focus on defining and expanding known resource blocks, and to drill off potential near surface prospects on the north and south flanks. Of immediate interest is the drilling of the recently-discovered high grade zone at North Flank East where intersections include 432 g/t Au over 1.0m, 245 g/t Au over 1.0m, 295 g/t Au over 1.65m (hole 199316 which was drilled by previous operators), and 52.1 g/t Au over 1.0m (hole 105176 which was drilled by previous operators) (see the Company's September 8, 2016 and January 18, 2017 press releases).

Karoliina

Drilling tested the large Karoliina block area that was discovered west of the mine at the time of its closure (see the Company's September 8, 2016 press release). The extension of the zone to depth is significant because it opens up the potential for a increase in resource in that direction and the 50m vertical increase in mineralization may allow for several more sublevels and therefore more stopes. The drilling has also supported continuity of the zone over a strike of 400m and a vertical dimension of 100m. Drilling will now step out to the west and to depth. The infill holes have been drilled by Rupert at approximately 25m centres, which is significantly less than the 40m centres on average used by previous operators. An orientation soil sampling program using multiple methods was carried out over this area in the fall; it successfully delineated the zone, and another known to exist to the north. The sampling also showed equally anomalous results along strike 150m to the west of Karoliina. As well, an I.P. geophysical program also showed anomalies to the west along strike and west along the locations where the north flank should be.

North Flank West

Three blocks that were included in the historical resources for Pahtavaara were targeted because of their relative large ounce content and proximity to mine development. North Flank West is located to the northwest of the northern most open pit at Pahtavaara where mineralization has been identified in the pit walls. Intersections include 34.3 g/t Au over 2.75m (including 89.4g/t over 1.0m - hole 116231) and 6.9 g/t Au over 12.0m (including 58 g/t Au over 1.0m - hole 116232) that are located immediately north of, and outside the resource limits of one of the blocks. Both intersections are located only 30m from an access drift.

A drill hole yielding 4.8 g/t Au over 11.6m (including 9 g/t Au over 5.0m) is located immediately west of, and outside the resource limits of another block (hole 116234). This zone is open to the west along the north flank, and above along the west side of the pit.

Two holes intersected a new zone, returning 5.2g/t gold over 1.0m (hole 116059), and 5.1g/t gold over 1.0m (hole 116062), located 60m above the nearest historic hole, that returned 9.1g/t gold over 3.0m (hole 110868). This zone is open in all directions and comes to surface. It may contribute to a study of the pushback of the pit.

The third resource block returned 1.1 g/t Au over 7.0m (hole 116059), with the block open below, above and to the west. Below the block are two holes 50 metres apart that have intersections of 9.0 g/t Au over 2.0m (hole 111876), and 12.6 g/t Au over 1.0m (hole 107307) .

These results support the continuity of the zones and indicates the potential to increase the size of the blocks. The infill holes have been drilled by Rupert at approximately 12.5 to 25m centres at a better angle to the zones than the drilling by previous operators. The closer spacing of holes should better aid in quantifying the resource.

New Pahtavaara drill results

Hole ID Zone Azimuth Dip Northing Easting Elevation
From To Core Length TW Grade
(m) (m) (m) (m) (m) (g/t Au)
116059 NFW 180 -55 4910 5181 250 16 17 1 5.3
116059 NFW 66 67 1 3.5
116059 NFW 180 -55 4910 5181 250 91 93 2 2.3
116059 NFW 180 -55 4910 5181 250 59 62 3 2.6
97 98 1 2.1
116060 NFW 160 -50 4910 5181 250 59 62 3 2.6
59 60 1 1.2
61 62 1 6.0
84 87 3 1.8
88 89 1 1.1
107 108 1 1.5
112 114 2 2.0
116061 NFW 180 -55 4910 5156 250 59.2 60.3 1.1 4.1
117 118 1 2.1
116062 NFW 146 -51 4916 5186 250 22 23 1 5.1
112 113 1 9.1
116 117.2 1.2 4.1
116067 NFW 136 -53 4847 5127 250 95 96 1 1.4
112 113 1 1.4
116070 NFW 152 -45 4835 5195 250 167 168 1 1.4
116070 NFW 152 -45 4835 5195 250 178.5 180.4 1.95 2.7
5
116071 NFW 157 -52 4865 5224 250 75 76 1 2.5
92.2 93.4 1.2 1.1
96.65 97.75 1.1 4.2
114 115 1 2.4
116073 NFW 130 -46 4844 5156 249 116.4 117 0.6 1.0
116074 NFW 169 -50 4915 5168 249 53 55 2 2.5
116074 NFW 169 -50 4915 5168 249 60 61 1 1.8
80 82 2 2.2
97 98 1 1.5
103 105 2 6.9
116075 Karoliina 200 -60 4407 4929 252 212.8 214 1.2 1.1 1.1
West
219 223 4 3.6 2.5
116076 Karoliina 205 -52 4389 4974 251.5 225 228 3 2.7 2.6
West
230 231 1 0.9 2.2
116077 Karoliina 200 -53 4285 4970 252 144.1 144.6 0.5 0.5 1.0
West
147 151 4 3.6 3.9
inc. 148 149 1 0.9 12.2
116078 Karoliina 207 -48 4285 4970 252 121.25 123 1.75 1.6 2.5
West
116080 Karoliina 200 -51 4247 4945 254 130 136.7 6.75 6.1 5.3
West 5
inc. 131 132 1 3.6 24.0
116200 Karoliina 357 42 4532.2 4754.2 66.8 29.9 30.65 0.75 1.0
East
116204 Karoliina 348 37 4607.5 4753.7 60.7 33.4 34.4 1 3.7
East
116218 NFW 229 6 5030.6 5084.6 112.4 35 45 10 3.9
inc. 35.77 37 1.23 6.2
inc. 39 40 1 5.4
inc. 43 44 1 20.9
53 54 1 1.4
116219 NFW 229 -9 5030.6 5084.6 112.4 56 59 3 1.4
70 71 1 2.3
116221 NFW 231 6 5020.9 5094.2 112.1 43 44 1 3.7
116222 NFW 229 -10 5020.9 5094.2 112.1 56.45 58.08 1.63 4.6
inc. 56.45 57.18 0.73 8.4
116222 NFW 229 -10 5020.9 5094.2 112.1 57.18 58.08 0.9 1.6
116223 NFW 229 -34 5020.9 5094.2 112.1 55.04 56 0.96 1.3
116224 NFW 236 20.5 5020.9 5094.2 112.1 44 45 1 1.9
116226 NFW 240 27.5 5002.8 5111.1 108.6 30 31 1 1.3
116226 NFW 240 27.5 5002.8 5111.1 108.6 37 39.6 2.6 34.3
inc. 38 39 1 63.0
116227 NFW 228 39 5002.8 5111.1 108.6 34 35 1 3.2
116227 NFW 228 39 5002.8 5111.1 108.6 40 43 3 4.2
inc. 41 42 1 9.4
116228 NFW 228 14 5002.8 5111.1 108.6 36 37.11 1.11 1.3
40.84 42 1.16 5.6
44 45 1 1.5
46 48 2 1.7
49 50 1 1.2
51 52 1 2.1
116230 NFW 219 -21.5 5002.8 5111.1 108.6 61 62 1 1.2
63 65 2 2.6
116231 NFW 228 18 4981.6 5122.3 109.4 33.75 36.5 2.75 34.3
inc. 33.75 34.75 1 89.4
116232 NFW 227 -10 4981.6 5122.3 109.4 27 39 12 6.9
inc. 34 35 1 58.0
46 47 1 1.0
116234 NFW 241 23 4971.7 5122.6 109.4 70 71 1 1.2
90 101.6 11.6 4.8
inc. 95.97 101 5.03 9.0
116235 NFW 241 -15 4971.7 5122.6 109.4 63.75 65 1.25 1.6
116237 NFW 348 2 5017.5 5104 108.29 42 42.55 0.55 1.6
116240 NFW 348 30 5017.5 5104 108.29 54 55 1 1.9
67.4 68.38 0.98 1.2
116241 NFW 229 21 5030.6 5084.6 112.4 39.15 39.75 0.6 3.6
43 45 2 5.1
48 49 1 4.4
117003 Karoliina 208 -55 4373 4886 252.06 102 106 4.0 3.6 2.9
West
117003 Karoliina 208 -55 4373 4886 252.06 153 169 16.0 14.3 4.3
West
117003 Karoliina 208 -55 4373 4886 inc 153 156 3.0 2.7 16.6
West
117003 Karoliina 208 -55 4373 4886 inc 166 167 1.0 0.9 14.8
West
117004 Karoliina 202 -55 4400 4891 252.38 27.15 28.3 1.2 1.0 6.3
West
117004 Karoliina 202 -55 4400 4891 252.38 155 171 16.0 14.4 4.1
West
117004 Karoliina 202 -55 4400 4891 inc 159.85 160.8 2.2 1.9 24.1
West 5
117004 Karoliina 202 -55 4400 4891 252.38 177.75 178.7 1.0 0.9 1.6
West 5
117005 Karoliina 203 -66 4288 4878 252.3 83.65 99 15.4 12.4 2.6
West
117005 Karoliina 203 -66 4288 4878 inc 97.3 97.85 0.5 0.4 40.9
West
117005 Karoliina 203 -66 4288 4878 252.3 111 114 3.0 2.4 1.4
West
117006 Karoliina 203 -66 4295 4874 251.3 88 102.2 14.2 11.4 5.0
West
117006 Karoliina 203 -66 4295 4874 inc 95 96 1.0 0.8 33.5
West
117006 Karoliina 203 -66 4295 4874 inc 100.25 101.4 1.2 0.9 10.7
West
117006 Karoliina 203 -66 4295 4874 inc 101.4 102.2 0.8 0.6 15.3
West
117010 Karoliina 180 -55 4495 4809 250.8 78.35 79 0.7 0.6 3.5
West
117010 Karoliina 180 -55 4495 4809 250.8 100 102 2.0 1.8 2.4
West
117012 Karoliina 180 -60 4445 4803 249.3 71 72 1.0 0.9 4.0
West
117014 Karoliina 180 -62 4395 4811 251.5 71 72 1.0 0.8 1.0
West
117018 Karoliina 202 -50 4296 4818 252 54.8 56 2.2 2.1 23.3
West
117018 Karoliina 202 -50 4296 4818 inc 54.8 55 1.2 1.1 42.0
West
117300 NFW 342 -50 4958.38 5126.86 110.21 8 9.67 1.7 1.8

*Unless specified in this press release, true widths (TW) cannot be determined from the information available. No upper cut-off grade was applied. 11 out of 13 holes recommended by Micon, the previous owners geological consultant, to be drilled into a zone parallel to Karoliina, did not intersect significant mineralization (holes 116201 - 116213). Holes 116063 - 116066, 116068, 116069, 116072, 116079, 116081 - 116083, 116214 - 116217, 116220, 116025, 116229, 116233, 116236, 116238, 116239, 117001, 117002, 117007, 117008 and 117013 did not return assays of more than 1 g/t Au. These holes were drilled out of the plunge of the mineralization. Assays from 117011 and 117015 were submitted out of sequence and are pending.

Mineralization

Intercepts reported above are hosted by amphibolitized komatiites. The principal geologic control in the area is a linear structural corridor that trends east-west, forms multiple folds, and dips steeply to the north on the south side and steeply south on the north side. The mineralized zone identified on Rupert's Pahtavaara property is characterized by hydrothermal alteration and mineralization within various phases of pervasively altered komatiites. Mineralization remains open at depth along the entire zone. The hydrothermal alteration and the Au-bearing veins associated with it are deformed. Because they were competent rocks (massive amphibole), they resisted deformation. They are therefore less deformed than the adjacent talc-chlorite schists. This implies early brittle deformation followed by ductile deformation. Hydrothermal fluids entered by fractures and faults, which explains why some alteration fronts are almost perpendicular to the schistosity. Gold occurs mostly as free gold, a smaller part is associated with magnetite.

Review by Qualified Person, Quality Control and Reports

In compliance with National Instrument 43-101, Mr. Mike Sutton, P.Geo. is the Qualified Person who supervised the preparation of the scientific and technical disclosure in this news release. Samples are assayed by CRS/Actlabs Finland at Takatie 6, 90440 Kempele Finland, who have ISO9001 sample prep and ALS Minerals at Sodankyla, Finland and Pitea, Sweden. All core is under watch from the drill site to the core processing facility. Samples are assayed using cyanide leach methods with AAS detection of Au. The Company's QA/QC program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at appropriate intervals. Approximately five percent (5%) of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99%.

About Rupert

Rupert is a Canadian based gold exploration and development company that is listed on the TSX Venture Exchange under the symbol "RUP". The Company owns the Pahtavaara gold mine, mill, and exploration permits and concessions located in the Central Lapland Greenstone Belt in Northern Finland (see the Company's November 9, 2016 press release). The Company also holds a 100% interest in the Gold Centre property, which consists of mineral claims located in the Balmer Township, Red Lake Mining Division of Ontario.

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.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements which constitute "forward-looking statements", including the statements with respect to those that address potential quantity and/or grade of minerals, potential for minerals and statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the general risks of the mining industry, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis for the year ended February 29, 2016 available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

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