December 16, 2015 – Equitas Resources Corp. (TSXv: EQT; FSE: T6UN; US: EQTRF) (“Equitas” or the “Company”) is pleased to provide an update of the Phase One drill program at the Garland Property in Labrador, Canada.
- Borehole GP15-005 at the Cominco Showing intersected disseminated pyrrhotite-chalcopyrite-pyrite over a 69m interval from surface.
- Crone Pulse Electromagnetic (PEM) surveying of borehole GP15-004 has produced a complex anomalous response that may indicate a significant good quality conductor near the hole, in the modelled depth range for buried Voisey’s Bay type deposits.
- Regional and property scale data synthesis has interpreted the major E-W lineament in the northern portion of the property to represent the southern margin of the graben structure hosting the Voisey’s Bay mine.
The autumn program completed five diamond drill holes totaling 1678m. A total of 281 core samples were submitted to Activation Laboratories. Crone PEM surveying has been completed at nine of the thirteen target areas. The field camp and drill rig have been stored onsite in anticipation of start-up of operations in early 2016 when safe lake ice conditions are present.
BH GP15-005 (collar at X_NAD27 585525, Y_NAD27 6218100N, elev. 240m, Az. 000, Dip -88) drilled in an area known as the Cominco Showing, was completed to a depth of 163.0m to sample an historic showing of Ni-Cu-Co in gabbro-norite. Values of up to 0.15% nickel and 0.10% copper were reported by Cominco Ltd. in 1995 from surface sampling of a NE trending area of gossan 125m in length and up to 20m wide. No sulphur or precious metal analyses were reported for this work.
From collar to 69.0m a zone of weakly mineralized variably textured medium to coarse grained norite was encountered. The section contains trace to 1% interstitial to locally blebby pyrrhotite-pyrite-chalcopyrite, with decimeter sections estimated to contain up to 10% sulphide. A granitic unit was encountered between 69.0 m and 118.0m. From 118.0m to 163.0m an un-mineralized norite was encountered.
The two best length-weighted intervals are as follows:
|From (m)||To (m)||Interval (m)||Ni%||Cu%||Co (ppm)||S%|
Analyses for palladium, platinum and gold returned background values for the mineralized interval.
Commenting on the results of BH GP15-005, VP Exploration Everett Makela stated “Although no semi-quantitative estimates for grade potential can be made due to the relatively low sulphide concentrations, results to date lend some encouragement for the possibility of there being an economic deposit associated with this mineralization. Observations of the core indicate a dynamic component to emplacement, including recognizable inclusions, textural and compositional variations. Isolated plagioclase feldspar megacrysts display rounding, possibly indicative of transport from an underlying chamber, an environment favourable for massive sulphide deposition. The area warrants further examination, and a detailed surface Crone PEM survey is planned as a top priority for the 2016 exploration program.”
BH GP15-004 (collar at X_NAD27 579221, Y_NAD27 6217311, elev. 272m, Az. 000, Dip -88) was cored to a depth of 495m, designed to intersect VTEM anomaly Q, at an interpreted depth to top of 425m. This anomaly has been interpreted as a broad, slowly decaying response in the B-Field Tau product of the VTEM data. Anomalies of this type can represent signature of large massive sulphide systems.
The hole encountered diorite from collar to 230.5m, hosting a younger granitic sheet between 35.6m to 114.4m. Below 230.5 to end of the hole drilling encountered a sequence of granite gradational to diorite. Crone PEM survey of this hole detected a possibly very significant off-hole response at around 230m depth.
Geophysical consultant Alan King commented “A Crone PEM survey of BH GP15-004 at the end of the field season produced a complex anomalous response that could indicate a good quality conductor in or near the hole. Nothing intersected in the hole is indicative of a strong conductive source although a structurally disturbed zone is located at about the same depth. The contractor indicated that there may have been some problems with the BHEM data after the hole was logged in two passes to overcome poor downhole conditions. Best fit quantitative modeling suggested the possibility of two off-hole NW striking, steeply NE dipping plates with a combined target dimension of 250m along strike and 300m down-dip. Depth to the top of the modeled bodies is estimated at 230m and conductance at about 1000S. However this model was a poor fit in some components of the data suggesting that there may some problem with the data. It is possible that this apparent anomaly could also be entirely due to problems with the data collected or some combination of data problems and real conductors. A detailed PEM re-survey of the hole will be conducted to validate the response in advance of drill testing when the field program resumes in Q2 2016.”
Commenting on the results of the Crone survey of GP15-004, VP Exploration Everett Makela said “while by no means a sure thing, the interpreted size, conductivity and depth accords well with our model for buried Voisey’s Bay analogues. This will be a first priority for the next phase of exploration in Q2 of 2016. We plan to re-position the drill rig on the hole and complete a detailed Crone PEM downhole survey to confirm the response before drill testing.”
A third focus for further exploration was defined by synthesis of regional and property scale magnetics, ground gravity and geological data. The major E-W lineament in the northern portion of the property has been interpreted by consulting geophysicist Alan King as representing the southern margin of the graben structure hosting the Voisey’s Bay mine, considered to have been emplaced along the northern wall of the graben. This structure on the Garland property is coincident with VTEM anomalies D, O and P, as well as a Ni-Cu-Co lake sediment anomaly comparable to the anomalies adjacent the Voisey’s Bay mineralization.
Commenting on results to date, VP Exploration Everett Makela said “The mineralization intersected at the Cominco Showing, the interpretation of PEM data from borehole GP15-004 at anomaly Q, and recent highlighting of the possible major significance of the E-W lineament adjacent anomalies D, O and P have provided us with three solid exploration focus areas for the next program, anticipated to commence as soon as safe lake ice and optimal late winter conditions are present. We are fully funded for the next phase and have the economic and logistical advantages of a camp and drill rig already at site.”
During the 2015 program, exploration has eliminated several of the targets as follows:
Crone surface PEM surveys at anomalies A, B and G did not locate significant conductivity. These response signatures have been explained by highly magnetic lithologies coupled with low receiver bird height, creating an apparent VTEM conductivity anomaly termed Super Para-Magnetic effect (SPM). These targets are of no further exploration interest.
Crone surface PEM surveying at anomalies H, I, and K did not detect any conductive anomalies, and these targets are also considered of no further interest.
BH GP15-002 (collar at X_NAD27 576548, Y_NAD27 6217988, elev. 145m, Az. 000, Dip -90) completed to a depth of 150m, was designed to test coincident VTEM and Crone PEM responses at anomaly C. Drilling encountered diorite from collar to 76.1m, and norite to end of hole. A zone of disseminated to locally stringer graphite encountered between 62.2m to 71.6m is the likely cause of the anomaly. No significant sulphides were encountered. A Crone PEM survey of the borehole did not locate an off-hole response worthy of further drill testing. No further work is planned for the anomaly.
BH GP15-003 (collar at X_NAD27 583420, Y_NAD27 6217214, elev. 241m, Az. 000, Dip -75) was completed to a depth of 494m. Designed to test VTEM anomaly J, the borehole encountered norite with subordinate granitic dykes from collar to 155.3m. This upper sequence of norite contains trace pyrrhotite +- chalcopyrite throughout, locally reaching concentrations to 1% over 20 cm in associated with coarse patches of magnetite. Analyses revealed only low Ni-Cu-Co values associated with the sulphide. Below 155.3m to end of hole geology encountered is norite with lesser granite. Crone PEM survey of the borehole did not locate a probable source of the VTEM anomaly. This target is of no further interest.
The drill core samples were cut in half by diamond core saw under Company supervision at the Garland field camp. Generally, 0.5 to 1.0 metre sample intervals were selected. Individual halved core samples were labeled, placed in plastic sample bags, and sealed. Groups of samples were then placed into durable rice bags and shipped out on two occasions. Chain of Custody was maintained throughout transportation of the samples from the Garland field camp to Activation Laboratories (Actlabs).
All core samples were prepared and analyzed at the Actlabs, ISO 17025 accredited facility in Ancaster, Ontario. Base metals and major elements were tested with the four-acid (near-total) digestion with ICP finish (1F Method). The samples were also tested by fire assay with ICP/OES finish for gold, platinum and palladium (IC-expl Method). Analytical QC for the digestion is 14% for each batch, 5 method reagent blanks, 10 in-house controls, 10 samples duplicates, and 8 certified reference materials. Additional field duplicates were included.
NI 43-101 Disclosure
Everett Makela, P. Geo., VP Exploration for Equitas Resources Corp., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
For further information on Equitas, please see the Company’s website www.equitasresources.com or contact:
Sean Kingsley, Manager, Corporate Communications at 604-681-1568 or toll free 1-877-377-6222.
About Equitas Resources Corp.
Equitas Resources is a Canadian-based mineral exploration company with a focus on nickel, copper, platinum group metals (PGM) and cobalt. The Company’s Garland Property is 23,386 hectares and located in the Voisey’s Bay district of Labrador, Canada.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
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.
It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Examples of forward looking statements in this news release include, but are not limited to all references to exploration plans for 2016; indication that PEM surveying of bore hole BH GP15-004 could indicate a significant good quality conductor near the hole; any references to there being an economic deposit associated with results of BH GP15-005; the statements that these areas are favourable for massive sulphide systems; the PEM survey of BH GP15-004 indicates a good quality conductor is near the hole and suggestions that the apparent anomaly could be due to problems with the data. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company’s operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our properties; that we may not complete environmental programs in a timely manner or at all; that market prices for nickel may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties.
Readers should refer to the risk disclosures outlined in the Company’s Management Discussion & Analysis of its audited financial statements filed with the British Columbia Securities Commission.