TriMetals Mining Inc. Continues to Increase the Resource Estimate for its Gold Springs Project on the Nevada-Utah Border
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 3, 2015) - TriMetals Mining Inc. (TSX:TMI)(TSX:TMI.B)(OTCQX:TMIAF)(OTCQX:TMIBF), (the "Company") is pleased to announce the completion of an updated resource estimate for the Jumbo Zone and the Grey Eagle Zone at the Gold Springs gold-silver project that straddles the Nevada-Utah border (the "2015 Resource") with an effective date of June 3, 2015.
The 2015 Resource builds on the 2014 resource estimate (see TMI News Release dated July 8, 2014) and includes the assay information from 31 additional reverse circulation (RC) drill holes and 4 diamond (Core) drill holes. This included 22 RC holes and 2 Core holes from the Jumbo Zone and 9 RC holes and 2 Core holes from the Grey Eagle Zone.
| Resource Category | Increase in 2015 | Total |
| Gold Equivalent oz * | Gold Equivalent oz * | |
| Measured & Indicated | 141,000 | 597,000 |
| Inferred | 7,000 | 306,000 |
Ralph Fitch, President and CEO of TriMetals Mining Inc., stated "Again this updated resource shows the steady increase in resource that the Company is achieving through drilling. With focused, cost effective, annual exploration programs we have been able to add ounces (AuEq*) to the resource consistently every year since 2011. Management continues to believe the property holds substantial upside potential for resource growth".
The 2015 Resource includes measured, indicated and inferred resource categories which were estimated for the Jumbo Zone in Utah and the Grey Eagle Zone in Nevada, both of which remain open to expansion. These two targets represent only two of the twenty six targets with outcropping gold mineralization identified so far in the 74 sq. km Gold Springs property.
Using a gold cutoff 0.2 g/t, the AuEq* oz in the measured and indicated resource category increased by 141,000, from 456,000 oz AuEq* reported in 2014 to 597,000 oz AuEq* in 2015. Using the same gold cutoff, the AuEq* oz in the inferred resource category increased by 7,000, from 299,000 oz AuEq* reported in 2014 to 306,000 oz AuEq* in 2015.
The table below shows the increase in the resource between 2014 and this 2015 Resource estimate:
| Comparison between 2014 and 2015 Resource Estimates | ||||||
| 2014 | 2015 | Change | ||||
| Gold Equivalence | Gold Equivalence | Gold Equivalence | ||||
| Cutoff Au g/t | Troy oz AuEq* | Grade g/t AuEq* | Troy oz AuEq* | Grade g/t AuEq* | Troy oz AuEq* | Grade g/t AuEq* |
| Measured plus Indicated | ||||||
| 0.2 | 456,000 | 0.67 | 597,000 | 0.62 | 141,000 | -0.05 |
| 0.3 | 369,000 | 0.84 | 469,000 | 0.77 | 100,000 | -0.07 |
| Inferred ** | ||||||
| 0.2 | 299,000 | 0.56 | 306,000 | 0.46 | 7,000 | -0.1 |
| 0.3 | 208,000 | 0.74 | 188,000 | 0.59 | -20,000 | -0.15 |
| * | Gold equivalent (AuEq) calculations reflect gross metal content using the following gold/silver ratio of 57.14, and have not been adjusted for metallurgical recoveries. |
| ** | The Inferred resource is in addition to the measured and indicated resource. |
| Grey Eagle plus Jumbo Mineral Resource (Effective at June 3, 2015) | |||||||
| Resource | Gold | Silver | Gold Equivalence | ||||
| Cutoff Au g/t | Tonnes | Troy oz | Grade g/t | Troy oz | Grade g/t | Troy oz AuEq* | Grade g/t AuEq* |
| Measured plus Indicated | |||||||
| 0.2 | 30,046,000 | 434,000 | 0.45 | 9,297,000 | 9.6 | 597,000 | 0.62 |
| 0.3 | 19,003,000 | 348,000 | 0.57 | 6,956,000 | 11.4 | 469,000 | 0.77 |
| Inferred ** | |||||||
| 0.2 | 20,887,000 | 225,000 | 0.34 | 4,614,000 | 6.9 | 306,000 | 0.46 |
| 0.3 | 9,889,000 | 140,000 | 0.44 | 2,766,000 | 8.7 | 188,000 | 0.59 |
| Numbers have been rounded, which may lead to some numbers not adding up exactly. | |
| * | Gold equivalent (AuEq) calculations reflect gross metal content using the following gold/silver ratio of 57.14, and have not been adjusted for metallurgical recoveries. |
| ** | The Inferred resource is in addition to the measured and indicated resource. |
The gold-silver mineralization at both the Jumbo and Grey Eagle Zones remains open to expansion laterally and to depth as the drilling to date has typically only penetrated the top 130 metres vertically below the surface at Jumbo (maximum drilled depth of 233 metres) and 130 metres vertically below the surface at Grey Eagle (maximum drilled depth of 262 metres).
The Mineral Resource in more detail:
| Grey Eagle plus Jumbo | |||||||
| Resource | Gold | Silver | Gold Equivalence | ||||
| Cutoff Au g/t | Tonnes | Troy oz | Grade g/t | Troy oz | Grade g/t | Troy oz AuEq* | Grade g/t AuEq* |
| Measured | |||||||
| 0.2 | 9,577,000 | 153,000 | 0.50 | 3,204,000 | 10.4 | 209,000 | 0.68 |
| 0.3 | 6,484,000 | 129,000 | 0.62 | 2,518,000 | 12.1 | 173,000 | 0.83 |
| 0.5 | 2,968,000 | 85,000 | 0.89 | 1,349,000 | 14.1 | 109,000 | 1.14 |
| Indicated | |||||||
| 0.2 | 20,469,000 | 281,000 | 0.43 | 6,092,000 | 9.3 | 388,000 | 0.59 |
| 0.3 | 12,519,000 | 219,000 | 0.54 | 4,439,000 | 11.0 | 296,000 | 0.74 |
| 0.5 | 4,632,000 | 121,000 | 0.81 | 2,044,000 | 13.7 | 156,000 | 1.05 |
| Measured plus Indicated | |||||||
| 0.2 | 30,046,000 | 434,000 | 0.45 | 9,297,000 | 9.6 | 597,000 | 0.62 |
| 0.3 | 19,003,000 | 348,000 | 0.57 | 6,956,000 | 11.4 | 469,000 | 0.77 |
| 0.5 | 7,600,000 | 206,000 | 0.84 | 3,394,000 | 13.9 | 265,000 | 1.09 |
| Inferred ** | |||||||
| 0.2 | 20,887,000 | 225,000 | 0.34 | 4,614,000 | 6.9 | 306,000 | 0.46 |
| 0.3 | 9,889,000 | 140,000 | 0.44 | 2,766,000 | 8.7 | 188,000 | 0.59 |
| 0.5 | 1,842,000 | 39,000 | 0.65 | 692,000 | 11.7 | 51,000 | 0.86 |
| Numbers have been rounded, which may lead to some numbers not adding up exactly. | |
| * | Gold equivalent (AuEq) calculations reflect gross metal content using the following gold/silver ratio of 57.14, and have not been adjusted for metallurgical recoveries. |
| ** | The Inferred resource is in addition to the measured and indicated resource. |
| Grey Eagle | |||||||
| Resource | Gold | Silver | Gold Equivalence | ||||
| Cutoff Au g/t | Tonnes | Troy oz | Grade g/t | Troy oz | Grade g/t | Troy oz AuEq* | Grade g/t AuEq* |
| Measured | |||||||
| 0.2 | 3,368,000 | 63,000 | 0.58 | 736,000 | 6.8 | 76,000 | 0.70 |
| 0.3 | 2,489,000 | 56,000 | 0.70 | 605,000 | 7.6 | 67,000 | 0.84 |
| 0.5 | 1,379,000 | 42,000 | 0.95 | 403,000 | 9.1 | 49,000 | 1.11 |
| Indicated | |||||||
| 0.2 | 5,751,000 | 96,000 | 0.52 | 1,165,000 | 6.3 | 116,000 | 0.63 |
| 0.3 | 4,187,000 | 83,000 | 0.62 | 950,000 | 7.1 | 100,000 | 0.74 |
| 0.5 | 1,938,000 | 55,000 | 0.88 | 565,000 | 9.1 | 65,000 | 1.04 |
| Measured plus Indicated | |||||||
| 0.2 | 9,119,000 | 159,000 | 0.54 | 1,901,000 | 6.5 | 192,000 | 0.66 |
| 0.3 | 6,676,000 | 140,000 | 0.65 | 1,554,000 | 7.2 | 167,000 | 0.78 |
| 0.5 | 3,317,000 | 97,000 | 0.91 | 968,000 | 9.1 | 114,000 | 1.07 |
| Inferred ** | |||||||
| 0.2 | 2,193,000 | 25,000 | 0.36 | 339,000 | 4.8 | 31,000 | 0.44 |
| 0.3 | 1,337,000 | 19,000 | 0.44 | 223,000 | 5.2 | 23,000 | 0.53 |
| 0.5 | 237,000 | 5,000 | 0.65 | 58,000 | 7.6 | 6,000 | 0.78 |
| Numbers have been rounded, which may lead to some numbers not adding up exactly. | |
| * | Gold equivalent (AuEq) calculations reflect gross metal content using the following gold/silver ratio of 57.14, and have not been adjusted for metallurgical recoveries. |
| ** | The Inferred resource is in addition to the measured and indicated resource. |
| Jumbo | |||||||
| Resource | Gold | Silver | Gold Equivalence | ||||
| Cutoff Au g/t | Tonnes | Troy oz | Grade g/t | Troy oz | Grade g/t | Troy oz AuEq* | Grade g/t AuEq* |
| Measured | |||||||
| 0.2 | 6,209,000 | 90,000 | 0.45 | 2,468,000 | 12.4 | 133,000 | 0.67 |
| 0.3 | 3,995,000 | 73,000 | 0.57 | 1,913,000 | 14.9 | 106,000 | 0.83 |
| 0.5 | 1,589,000 | 43,000 | 0.84 | 946,000 | 18.5 | 59,000 | 1.16 |
| Indicated | |||||||
| 0.2 | 14,718,000 | 185,000 | 0.39 | 4,927,000 | 10.4 | 272,000 | 0.57 |
| 0.3 | 8,332,000 | 135,000 | 0.51 | 3,489,000 | 13.0 | 196,000 | 0.73 |
| 0.5 | 2,694,000 | 66,000 | 0.76 | 1,480,000 | 17.1 | 92,000 | 1.06 |
| Measured plus Indicated | |||||||
| 0.2 | 20,927,000 | 276,000 | 0.41 | 7,395,000 | 11.0 | 405,000 | 0.60 |
| 0.3 | 12,327,000 | 208,000 | 0.53 | 5,402,000 | 13.6 | 303,000 | 0.76 |
| 0.5 | 4,283,000 | 108,000 | 0.79 | 2,426,000 | 17.6 | 151,000 | 1.10 |
| Inferred ** | |||||||
| 0.2 | 18,694,000 | 200,000 | 0.33 | 4,274,000 | 7.1 | 275,000 | 0.46 |
| 0.3 | 8,552,000 | 121,000 | 0.44 | 2,543,000 | 9.3 | 166,000 | 0.60 |
| 0.5 | 1,605,000 | 34,000 | 0.65 | 633,000 | 12.3 | 45,000 | 0.87 |
| Numbers have been rounded, which may lead to some numbers not adding up exactly. | |
| * | Gold equivalent (AuEq) calculations reflect gross metal content using the following gold/silver ratio of 57.14, and have not been adjusted for metallurgical recoveries. |
| ** | The Inferred resource is in addition to the measured and indicated resource. |
Global Resource Engineering (GRE) estimated the mineral resources for each of the two mineral deposits within Gold Springs, Grey Eagle and Jumbo, by constructing a model representing the mineral deposits and statistically and geostatistically analyzing the drill hole data. This information was used to define the parameters used to estimate gold and silver grades into the 3-dimensional block model. Three algorithms were used to estimate grade for both gold and silver within each block model: Geologic solid model of the ore zone in each deposit was created in Leap Frog and the grade for those solids was estimated using inverse distance cubed (ID3), ordinary kriging (OK), and nearest neighbor (NN) algorithms using Techbase. The results from each method were very similar, validating the estimate. The ID3 estimate is most comparable to prior estimates, is the preferred estimate, and is reported here.
The data includes 94 exploration holes and trenches in the Grey Eagle deposit totaling 12,401 metres and 86 exploration holes and trenches in the Jumbo deposit totaling 11,023 metres. The drill holes in the Grey Eagle deposit penetrate up to 262 metres below surface, and all of them are within the block model limits. The drill holes in the Jumbo deposit penetrate up to 233 metres below the surface, and all but four of them are within the block model limits. Information from channel and trench samples was included to better define mineralization near surface.
The assay data contains a total of 16,512 gold sample results (including results outside of the two resource areas), ranging from 0 to 18,867 parts per billion (ppb), and 16,511 silver sample results, ranging from 0 to 190 parts per million (ppm). Within the Grey Eagle, deposit, there are 6,906 gold sample results, ranging from 0 to 15,181 ppb, and 6,905 silver sample results, ranging from 0 to 89.2 ppm. Within the Jumbo deposit, there are 6,476 gold sample results, ranging from 0 to 18,867 ppb, and 6,475 silver sample results, ranging from 0 - 190 ppm. The samples were taken at 1.52-metre (5-foot) intervals. Assays were composited to 4.57-metre (15-foot) intervals down hole. This resulted in 2,694 composites in the Grey Eagle deposit and 2,379 composites in the Jumbo zone.
The geologic solid model utilized a block model with 5 metre by 5 metre by 5 metre blocks (xyz) and the geological interpretation of the mineralized envelope to isolate the mineralized domain from non-mineralized rock and to control estimation of gold and silver near known faults. An inverse distance cubed algorithm was used with a minimum of 2 composites and a maximum of 10 composites.
GRE classified the Mineral Resource as Measured with an average distance of 25 meters from drill holes, Indicated with an average distance of up to 50 metres from holes, and Inferred with an average distance exceeding 50 metres but less than the maximum search distance of 100 meters. The Measured and Indicated categories use an average distance from a drill hole of less than half the variogram range.
GRE is not aware of any legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources at Gold Springs.
The Preliminary Economic Assessment based on this Resource Estimate is nearing completion, results will be released in coming weeks
Gold Equivalence: AuEq* was calculated using a gold/silver ratio of 57.14 to be consistent with that used for the previously reported resource estimate.
Qualified Person
The Mineral Resource has been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM by Ms. Terre Lane, Principal Mining Engineer for Global Resource Engineering, and Mr. Kurt Katsura, both Qualified Professionals as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), and are "independent" of the Company as defined in NI 43-101, and both have reviewed and approved the technical information regarding the resource estimate in this release.
Cautionary Statement on Mineral Resources
This news release uses the term 'measured resources', 'indicated resources' and 'inferred resources' which are terms recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), however, such terms are not defined terms under SEC Industry Guide 7 and are not permitted to be used in reports and registration statements filed with the United States Securities and Exchange Commission. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will be upgraded or converted into 'reserves' as defined under NI 43-101. Mineral resources that are not mineral reserves, do not have demonstrated economic viability. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that an inferred resource will be upgraded to a higher category. Under Canadian rules, estimates of inferred resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for preliminary economic assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
About TriMetals Mining Inc.
TriMetals Mining Inc. is a growth focused mineral exploration company creating value through the exploration and development of the near surface, Gold Springs gold-silver project in mining friendly Nevada and Utah in the U.S.A.; the advancement of the large scale Escalones copper-gold project in Chile; and realization of value from the expropriated Malku Khota project in Bolivia through an arbitration process.
The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.
The Company's common shares and Class B shares are listed on the Toronto Stock Exchange under the symbols "TMI" and "TMI.B" and the common shares and Class B shares also trade on the OTCQX market under the symbol "TMIAF" and "TMIBF". Additional information related to TriMetals Mining Inc. is available at www.trimetalsmining.com and on SEDAR at www.sedar.com.
Forward-looking Statements
Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "continues", "target", "expansion", "believe", "potential", "likely", "will" and similar expressions. Information concerning mineral resource estimates and the interpretation of drill, metallurgical testing and other exploration results may also be considered forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present if and when a mining project is actually developed. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade, metal prices; any delay in the completion by the independent qualified persons of a preliminary economic assessment based on the updated resource estimate for Gold Springs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; regulatory, environmental and other risks of the mining industry more fully described in the Company's Annual Information Form and continuous disclosure documents which are available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the timely receipt of required permits for the Gold Springs project; the continuing support for mining by local governments in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold Springs project; execution of the Company's existing plans and further exploration and development programs for Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs; and the timely completion by the independent qualified persons of a NI 43-101 compliant technical report containing a preliminary economic assessment and supporting the resource estimate in the coming weeks.
Readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this news release describe the Company's expectations as of June 3, 2015.
Contact
TriMetals Mining Inc.
Ralph Fitch
President & CEO
303.584.0606
ralphfitch@trimetalsmining.com
TriMetals Mining Inc.
Matias Herrero
Chief Financial Officer
303.584.0606
mherrero@trimetalsmining.com
www.trimetalsmining.com
