VANCOUVER, British Columbia, Nov. 01, 2018 (GLOBE NEWSWIRE) -- Rockridge Resources Ltd. (TSX-V: ROCK) (“Rockridge”) (the “Company”) has entered into an Option Agreement (the “Agreement”) with Eagle Plains Resources Ltd. (TSX-V: EPL) to acquire a 100% interest in a property that covers the majority of the historic Knife Lake Cu-Co-Zn-Ag VMS deposit. The contiguous claims total approximately 85,196 hectares and are located approximately 50 km northwest of Sandy Bay, Saskatchewan (the “Knife Lake Project” or “Property”).
Knife Lake VMS Project Map:
- The Knife Lake Project area is an advanced-stage copper, silver, zinc and cobalt exploration property in Saskatchewan that has had extensive exploration from the late 1960’s to the 1990’s with the last documented work program completed in 2001.
- Late in 1998, Leader Mining published a historical estimate of the shallow Knife Lake deposit, reporting a drill-indicated, historical resource of 20.3 million tonnes grading 0.6% Cu, 0.1 g/t Au, 3.0 g/t Ag, 0.06% Co and 0.11% Zn.
- Higher grade zone of 11.0 million tonnes grading 0.95% Cu within this historical estimate.
- Historical drill results include 1.37% Cu, 5.07 g/t Ag, 115 ppm Co, 1182 ppm Zn over 60.13 m beginning at a depth of 2.37 m in hole K-96-02 as well as 0.99% Cu, 4.73 g/t Ag, 103 ppm Co over 38.83 m beginning at a depth of 6.11 m in hole K-96-36.
- There is strong discovery potential in and around the deposit as well as at regional targets on the Property.
- The Company is planning for an initial diamond drill program in early 2019 with drill permits having been received; details of the drill program are forthcoming.
Rockridge’s President and CEO, Jordan Trimble commented: “This is a significant milestone for Rockridge as we look to position the Company as a go-to copper and battery metal exploration and development company. The Knife Lake Project is located in a top mining jurisdiction, has seen extensive exploration and drilling, and boasts a near-surface historical resource which is open along strike and at depth. There is robust discovery potential in and around the deposit as well as on regional targets on the property. Worth noting is that most of the historic exploration was carried out in the 90’s and ceased due to low metal prices. Rockridge is planning for a winter drill program to commence early in 2019 as we look to unlock value at the project with a new look at the exploration and drilling going forward.”
Knife Lake Geology and History:
The Knife Lake Project is interpreted to be a remobilized VMS deposit. The stratabound mineralized zone is approximately 15 m thick and contains copper, silver, zinc and cobalt mineralization which dips 30° to 45° eastward over a strike-length of 4,500 m, with an average horizontal width of approximately 300 m. Over 400 diamond drill-holes have been completed in and around the current property boundaries, with much of the drill core stored under cover and in very good condition.
The deposit is hosted by felsic to intermediate volcanic and volcaniclastic rocks which have been metamorphosed to upper amphibolite facies. The deposit is typical of VMS mineralogy which has been significantly modified and partially remobilized during the emplacement of granitic rocks. The mineralization straddles the boundary between two rock units and occurs on both limbs of an overturned fold.
The Knife Lake area saw extensive exploration from the late 1960’s to the 1990’s with the last documented work program completed in 2001. Drilling has outlined a series of stratabound mineralized lenses which are controlled by complex geological structures. In the copper mineralized zone, significant thickening of the mineralization occurs near the central portion of the deposit. Sulphides and rare native copper are visible in outcrop. Massive sulphides consist of 25% to 60% pyrrhotite and 0.2% to 10% chalcopyrite mineralization. Pyrite is present as irregular disseminations and masses. Locally, up to 8% sphalerite (zinc mineralization) is present.
|Table 1- Significant Drill Intercepts-Knife Lake Project*|
|Hole ID||Width (m)||From (m)||To (m)||Cu (%)||Au (ppb)||Ag (ppm)||Co (ppm)||Zn (ppm)|
* Intercepts in the above table refer to actual drilled thickness in metres and may not represent the true thickness of the intercept
The first documented work in the Knife Lake showing area occurred between 1969-1973, consisting of ground and airborne geophysical surveys and extensive soil geochemical sampling. The discovery drill-hole, collared in September, 1969, returned 2.37% Cu over 4.48 m from 19.96-24.44 m, including 3.5% Cu over 2.5 m from 20.27-22.77 m. A total of 96 diamond drill holes (8,232 m) were completed between 1969-1971 and in 1973 Straus Exploration announced a maiden resource on the Knife Lake Deposit.
Hudson Bay Exploration and Development Company Ltd. later carried out a regional Airborne EM geophysical survey in the Knife Lake – Scimitar Lake area, followed up by geological mapping, prospecting, ground geophysics and diamond drilling. The property was subsequently optioned to Copperquest Incorporated in 1989, who carried out further geophysical and geochemical surveys and optioned the property to Leader Mining International in 1996. Between 1996 and 2001, Leader flew various airborne geophysical surveys in the area, including electromagnetic (“EM”), magnetic, and gravity surveys. This was followed up with stripping and trenching of the outcropping deposit area. Ground TEM, magnetic, ground IP/Resistivity and VLF-EM surveys were completed over and adjacent to the main deposit area.
Between 1996 and 1998, Leader completed 315 diamond drill holes, outlining a broad zone of mineralization occurring at less than 100 meters depth (AF 63M-0006, Report 10). Late in 1998, Leader published a historical estimate for the deposit, reporting a drill-indicated resource of 20.3 million tonnes grading 0.6% Cu, 0.1 g/t Au, 3.0 g/t Ag, 0.06% Co and 0.11% Zn. Within the historical estimate, there is a higher grade zone containing 11.0 million tonnes grading 0.95% Cu. (SMDI 0406). Rockridge Resources’ management considers these estimates to be historical in nature and cautions that a Qualified Person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves in accordance with National Instrument 43-101. These estimates do not comply with current definitions prescribed by National Instrument 43-101 or the Canadian Institute of Mining, and are disclosed only as indications of the presence of mineralization and are considered a target estimate to help guide additional work. The historical models and data sets used to prepare these historical estimates are not available to Rockridge, nor are any more recent resource estimates or drill information on the Property.
In 1997, Leader International shipped a 2.4 tonne bulk sample of mineralized material excavated from the surface outcrop of the Knife Lake deposit to Lakefield Research Limited for metallurgical test-work. Lakefield concluded that the copper metallurgy was straightforward. Following a simple flowsheet, greater than 90% copper recovery was achieved at a concentrate grade of 28% Cu. Gold recovery in the copper concentrate was 80%. The cobalt recovery in the copper cleaner concentrate was 13%, with 28% of the cobalt present in cleaner tailing products. Another 48% of the cobalt was present in the sulphide concentrate.
A 357kV powerline has recently been completed to within 16 km of the Knife Lake Deposit area, greatly enhancing the project’s infrastructure.
Future Exploration and Development Plans:
The Knife Lake Project has a drill permit in place and the Company is planning for an initial diamond drill program in early 2019. Details of the drill program are forthcoming.
Terms of Option Agreement:
Under the terms of the Agreement, which is subject to TSX Venture Exchange (the “Exchange”) approval, Rockridge may acquire a 100% interest in the Knife Lake Project by making cash payments to Eagle Plains Resources totalling CDN $150,000, issue up to 5,250,000 common shares of Rockridge, and incur exploration expenditures of up to CDN $3,250,000, over a four year period as follows:
- On Exchange acceptance: issuing 2,000,000 shares of which 1,000,000 shall be held in escrow with an escrow agent for 6 months and the remaining 1,000,000 shall be held in escrow with an escrow agent for 12 months; cash payment of $150,000;
- By the first anniversary date: issuing 750,000 shares and incurring exploration expenditures of $750,000;
- By the second anniversary date: issuing 750,000 shares and incurring additional exploration expenditures of $750,000;
- By the third anniversary date: issuing 750,000 shares and incurring additional exploration expenditures of $750,000; and
- By the fourth anniversary date: issuing 1,000,000 shares and incurring additional exploration expenditures of $1,000,000.
The proposed transaction is subject to, among other things, the completion of a National Instrument 43-101 Technical Report on the Property, and obtaining all necessary regulatory approvals, including the Exchange. If complete, the proposed transaction will constitute a “Fundamental Acquisition” as such term is defined in Exchange Policy 5.3. The common shares of the Company will remain halted until the Exchange has reviewed the proposed transaction in accordance with Exchange Policy 5.3.
Private Placement Financing:
In connection with the Option Agreement, the Company announces that it has arranged a non-brokered private placement of up to 5,000,000 units (each a “Unit”) at a price of $0.20 per Unit to raise gross proceeds of up to $1,000,000. Each Unit will consist of one common share and one warrant exercisable to purchase one additional common share at a price of $0.35 each for a period of five (5) years from the date of issuance.
The Company intends to utilize the proceeds from the private placement on its initial work program at the Knife Lake Project and for general working capital purposes. The private placement is subject to Exchange approval, and all securities are subject to a four-month-and-one-day hold period. Finder’s fees may be payable in connection with the private placement, all in accordance with the policies of the Exchange.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Richard Kusmirski, P.Geo., M.Sc., a Director of Rockridge and a Qualified Person.
About Rockridge Resources Ltd.:
Rockridge is a new publicly listed mineral exploration company focused on the acquisition, exploration and development of mineral resource properties in North America. The Company has 12.7 million shares issued and outstanding.
Rockridge Resources Ltd.
President and CEO
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Rockridge Resources Ltd.
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This news release includes certain statements that constitute “forward-looking information” within the meaning of applicable securities law, including without limitation, statements that address the Property, obtaining a permit, comments regarding the timing and content of upcoming work programs, timing of future exploration and development, acquisition of other mineral properties, other statements relating to the financial and business prospects of the Company. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved), and variations of such words, and similar expressions are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of gold and other metals, anticipated costs and the ability to achieve goals. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: (i) risks related to gold, base metal and other commodity price fluctuations; (ii) risks and uncertainties relating to the interpretation of exploration results; (iii) risks related to the inherent uncertainty of exploration and cost estimates and the potential for unexpected costs and expenses; (iv) that resource exploration and development is a speculative business; (v) that the Company may lose or abandon its property interests or may fail to receive necessary licences and permits; (vi) that environmental laws and regulations may become more onerous; (vii) that the Company may not be able to raise additional funds when necessary; (viii) the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; (ix) exploration and development risks, including risks related to accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration and development; (x) competition; (xi) the potential for delays in exploration or development activities or the completion of geologic reports or studies; (xii) the uncertainty of profitability based upon the Company’s history of losses; (xiii) risks related to environmental regulation and liability; (xiv) risks associated with failure to maintain community acceptance, agreements and permissions (generally referred to as “social licence”); (xv) risks relating to obtaining and maintaining all necessary government permits, approvals and authorizations relating to the continued exploration and development of the Company’s projects; (xvi) risks related to the outcome of legal actions; (xvii) political and regulatory risks associated with mining and exploration; (xix) risks related to current global financial conditions; and (xx) other risks and uncertainties related to the Company’s prospects, properties and business strategy. These risks, as well as others, could cause actual results and events to vary significantly.
There can be no assurance that planned exploration will be completed as proposed or at all, or that economic resources will be discovered or developed at the Property; and there can be no assurance that the Company will acquire other mineral properties. Accordingly, actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, market prices, exploration and development successes or failures, the loss of key directors, employees, advisors or consultants and fees charged by service providers. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company 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 expressly required by applicable securities legislation.
Telephone: (604) 687-3376
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