Rupert Resources Ltd. (“Rupert” or the “Company”) (TSX Venture Exchange: RUP) announces that it has received the last drill results of its first exploration campaign on the permitted Pahtavaara gold mine in Northern Finland, which the Company recently exercised its option to acquire (see the Company’s August 30, 2016 press release).
“Our first 3000m of drilling at Pahtavaara yielded some significant high grade intersections to the west of the existing mine development in the recently discovered Karoliina zone and also in a new zone on the North Flank East, which is also within close proximity (200m) to underground mine development,” said Brian Hinchcliffe, Rupert’s President and CEO. “We are continuing with our recently launched extensive drilling campaign to infill historic resources – especially in the higher grade Karoliina zone – before commencing step out drilling along known structures by year end.”
The Company is pleased to announce the results of assays returned from 10 holes (1,319 m) including two holes in the known Karoliina zone containing abundant fine visible gold. Significantly, holes 116016 and 116017 returned intersections of 14.6 grams per ton of gold (“g/t Au”) over 4.1m and 8.3 g/t Au over 5.6m, respectively, including 1.0m of over 53.5 g/t Au in hole 116016 and 3.8m of 11.5 g/t Au for hole 116017. See the table below for more detailed results.
The second phase of exploration continues, with drilling, chip sampling of open pits, trenches, and underground horizons, IP geophysics, soil sampling, and till work either underway or soon to be implemented.
No upper cut-off grade was applied. Unless specified, true widths (TW) cannot be determined from the information available.
Wildcat holes 116018 and 116020 yielded no gold in assay, with hole 116019 located 2.3km west from mine (targeted because of coincidence of a magnetic low and base of till Au anomaly) intersecting four incidences of trace mineralization (0.15 to 0.32 g/t Au). Holes 116003 (Karoliina), 116006 (Karoliina), 116010 (North Flank East) and 116013 (North Flank East) did not return significant results.
The intersection from holes 116016 and 116017 are located 32m above and east and 31m east, respectively, from previously drilled hole 114809 that returned 8.1 g/t Au over 5.0m (4.8m TW). The mineralization is consistent with that seen previously.
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. All samples are assayed by CRS/Actlabs Finland at Takatie 6, 90440 Kempele Finland, who have ISO9001 sample prep. All core is under watch from the drill site to the core processing facility. Samples are assayed PAL1000 cyanide leach 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 one per 20 samples. 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 Resources
Rupert Resources is a Canadian based gold exploration and development company that is listed on the TSX Venture Exchange under the symbol “RUP”. The Company has exercised an option to acquire the Pahtavaara gold mine, mill, and exploration permits and concessions located in the Central Lapland Greenstone Belt in Northern Finland (see the Company’s August 30, 2016 press release). The purchase price for the acquisition is US$2,500,000, structured as a US$500,000 cash payment that was made upon the exercise of the option (less the US$100,000 deposit payments already made). A 1.5% production royalty, capped at US$2,000,000, is also payable on go-forward revenues generated when gold production resumes. 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.
For further information, please contact:
President and Chief Executive Officer
Tel. +1 (914) 815 2773
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 may constitute “forward-looking statements”, including statements with respect to those that address potential quantity and/or grade of minerals and statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities, operating performance of the Company and with respect to drilling, operations and results at the Pahtavaara gold mine, mill and exploration claims. 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.