Toronto, Ontario, Canada Listed: RUP-TSX–V
January 10, 2017
Rupert Resources Ltd. (“Rupert” or the “Company”) (TSX Venture Exchange: RUP) is pleased to announce assay results from an additional 26 surface diamond holes (3,528m) drilled into the large, open Karoliina zone that was discovered prior to mine’s closing in May 2014. The permitted Pahtavaara gold mine is located in Northern Finland in the emerging Central Lapland Greenstone Belt. In 2016, Rupert drilled 12,293m from surface and 3,209m from underground, balancing the requirements for production infill drilling and exploration. The results of additional holes from the 8,951m of drilling will be released in the next few weeks as assays are received and interpreted. The areas of focus at Pahtavaara and location of drilling in Karoliina can be found in the accompanying figures 1 and 2.
“This round of drilling advanced the 500,000t Karoliina zone and importantly, indicated the emergence of a thick plunge zone parallel to previously mined deposits and in close proximity to the Karoliina development,” said Brian Hinchcliffe, CEO of Rupert Resources. “Of particular significance in these results however, is that this closer spaced drilling indicated higher grade potential at Pahtavaara. We have also had further success at the western extremity of the Karoliina zone which remains open at depth and to the west.”
This drilling program of the Karoliina zone has been carried out as per recommendations by Micon International, the prior mine owner’s geological consultant, who estimated two holes in a 30m search radius were required to delineate resources into the indicated mineral resources category. The 2016 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. Initial observations suggest that this 2016 drilling appears to have been successful in converting approximately 75% of the previously defined inferred mineral resource area to indicated mineral resources.
Of the 26 holes drilled from surface, 19 intersected mineralisation and have confirmed continuity of the zone over a strike of 400m and a vertical dimension of 75m to 100m. The positive results remain open to the west and east and at depth with potential extended 75m below the latest drilling by the previously reported hole 116001 (1.71g/t Au over 8m). Results from the 2016 campaign testing to the west and this deeper mineralisation (9 holes totalling 1,796m) are expected in the next few weeks and the continuity of this zone will be tested further in 2017.
Highlights from the program include hole 116026 yielding 2.1 g/t Au over 18.0m (11.2m TW, including 7.1g/t Au over 1.0m, and 5.0g/t Au over 4.0m) suggesting the potential of a emergence of a thicker plunge zone parallel to Pahtavaara’s main deposits. This intersection is aligned with hole 114701, drilled by the previous owner which intersected 2.3g/t Au over 21.4m along this trend. This area is located 25m above existing infrastructure. Other significant results included 116025 returning 14.5g/t Au over 1.6m (1.4m TW), and 116023 returning 7.5g/t Au over 3.0m (2.3m TW), in the same area. Hole 116041 on the western edge of the currently defined area of mineralisation yielded an intersection of 32.8g/t Au over 2.0m (1.9m TW) at a vertical depth from surface of 169m. Holes 116040 with an intersection of 22.1g/t Au over 1.0m (0.8m TW) and 116036 with an intersection of 5.4g/t Au over 3.0m (2.6m TW) indicate the potential for higher grade material in the upper levels of the zone.
The Pahtavaara mine produced 350koz of gold between 1996 and 2014 and is part of a 124km2 land package located in Northern Finland in the emerging Central Lapland Greenstone Belt. Other mines in the area include Boliden’s polymetallic Kevitsa mine, Anglo-American’s Sakatti project and a joint venture between Aurion Resources and B2Gold who are exploring the same gold mineralisation trend, furthermore, the mine is approximately 100km from Agnico Eagle’s 8Moz Kittila deposit, Europe’s largest gold mine.
No upper cut-off grade was applied. Unless specified, true widths (TW) cannot be determined from the information available.
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 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%.
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