Equity Metals Corporation (the “Company” or “Equity Metals”) reports today that it has closed its previously reported $1,000,000 non-brokered private placement by issuing in two tranches, a total of 13,135,000 units at a price of $0.08 per unit for gross proceeds of $1,050,800. Each unit consists of one common share and one share purchase warrant exercisable to purchase one additional common share for a period of three years at an exercise price of $0.12 per share. Securities issued pursuant to the final tranche of the private placement include common shares and share purchase warrants, all of which carry a legend restricting trading of the securities until March 26, 2020. Equity Metals made provisions for an over-allotment option (Greenshoe) of up to 10% additional units beyond the initially announced 12,500,000 units for this Offering.
Net proceeds from the private placement will be used to fund proposed work programs at the Silver Queen and Monument properties and to defray corporate expenses.
Silver Queen Project
The Silver Queen Project is a premier gold-silver property with over 100 years of historic exploration and development. An initial NI43-101 Mineral Resource Estimate issued on July 16th, 2019, and using a CDN$100 NSR cut-off, returned:
- Indicated – 244,000ozs AuEq: 85,000ozs Au, 5.2Mozs Ag, 5Mlbs Cu, 17Mlbs Pb and 114Mlbs Zn; and
- Inferred – 193,000ozs AuEq: 64,000ozs Au, 4.7Mozs Ag, 5Mlbs Cu, 16Mlbs Pb and 819Mlbs Zn(1)
Over 20 different epithermal veins have been identified on the property, forming an extensive network of zoned, Tertiary-age epithermal veins. The system remains largely underexplored and forms the basis for the Company’s near to mid-term exploration plans.
The initial focus on the Silver Queen Project is the systematic resource expansion of known, open-ended mineralized zones within the vein system as well as the identification of new mineral discoveries to further increase resources. Targeting to date has identified three separate veins for exploration drilling in 2020, with the near- to mid-term objective of doubling the existing mineral resource on the property. The focus will be to offset high-grade “ore-shoots” in the No. 3 Camp and NG-3 veins followed by fast-tracking the expanded mineral resources into an economic study.
The Silver Queen project features a high-grade, high-margin, Au-Ag-Zn mineral resource that is accessed by road from the community of Houston, BC. It is adjacent to power, roads and rail with significant mining infrastructure that was developed under previous operators: Bradina JV (Bralorne Mines); and Houston Metals Corp. (a Hunt Brothers company). Included are an historic decline into the No. 3 Vein, camp infrastructure and a maintained Tailings Facility.
Permitting applications and consultation with First Nations is underway in advance of a 2019/2020 Winter/Spring drilling program. Currently, a detailed review of historical metallurgical and engineering studies is proceeding, with evaluation of surface-sampling data for follow-up exploration programs during the Spring /Summer field program.
Monument Diamond and DHK JV (WO Project)
Equity Metals owns an interest in two diamond properties in the prolific Lac de Gras district, NWT, which currently hosts two of Canada’s five producing diamond mines.
- a 57.3% interest in the Monument Diamond Project, located about 40km from both the Diavik and Ekati diamond mines. The property hosts eight different diamond-bearing kimberlites with a total of 2,437 microdiamonds recovered; the largest discovered to date being 0.445 carats. The company has recently received notice of approval of its 2019 exploration permit, pending posting of a bond.
- a minority interest in the WO Diamond property, which immediately adjoins the Diavik Diamond Mine claims. Joint Venture-ownership consists of DeBeers Canada (72.13%), Archon Minerals Limited (17.57%) and DHK Diamonds Inc. (10.30%). Equity Metals owns a 43.37% interest in DHK Diamonds Inc. A 2007 bulk sample produced individual rough diamonds up to 9.45 carats.
About Equity Metals Corporation
Equity Metals Corporation is a Manex Resource Group Company. The Group provides expertise in exploration, administration, and corporate development services for Equity Metals’ two major mineral properties, the Silver Queen Au-Ag-Zn-Cu project, located in central B.C., and the Monument Diamond project, located in Lac De Gras, NWT.
The Company owns 100% interest, with no underlying royalty, in the 18,892ha Silver Queen project, located in the Omineca Mining Division near Owen Lake, British Columbia. The property hosts a series of high-grade, precious- and base-metal veins related to a buried porphyry system, which was only recently discovered and has been only partially delineated. The Company also has a JV interest in the Monument Diamond project, strategically located on the south shore of Lac De Gras, NWT. Diamond-bearing kimberlites of the Monument Property form part of the Lac de Gras cluster and occur within 40 km of both the Ekati Diamond Mine and the Diavik Diamond Mine. The project owners are Equity Metals Corporation (57.49%); Chris and Jeanne Jennings (22.11%); and Archon Minerals Ltd. (20.4%). Equity Metals is the operator of the project.
The Company also has royalty and working interests in other Canadian properties, which are being evaluated further to determine their value to the Company.
- The 2019 Silver Queen Resource Estimate was prepared following CIM definitions for classification of Mineral Resources and identified at a CDN$100/NSR cut-off, an indicated resource of 815Kt averaging 3.2g/t Au, 201g/t Ag, 1.0% Pb, 6.4% Zn and 0.26% Cu and an inferred resource of 801Kt averaging 2.5g/t Au, 184g/t Ag, 0.9% Pb, 5.2% Zn and 0.31% Cu. Grade capping on Ag and Zn was performed on 0.75m to 1.24m length composites. Au, Cu and Pb required no capping. ID3 was utilized for grade interpolation for Au and Ag while ID2 was utilized for Cu, Pb and Zn. Grade blocks were interpreted within constraining mineralized domains using and array of 3m x 1m x 3m blocks in the model. A bulk density of 3.56 t/m³ was used for all tonnage calculations. Approximate US$ two-year trailing average metal prices as follows were used: Au $1,300/oz, Ag $17/oz, Cu $3/lb, Pb $1.05/lb and Zn $1.35/lb with an exchange rate of US$0.77=C$1.00.
The C$100/tonne NSR cut-off grade value for the underground Mineral Resource was derived from mining costs of C$70/t, with process costs of C$20/t and G&A of C$10/t. Process recoveries used were Au 79%, Ag 80%, Cu 81%, Pb 75% and Zn 94%. AuEq and AgEq are based on the formula: NSR (CDN) = (Cu% * $57.58) + (Pb% * $19.16) + (Zn% * $30.88) +(Au g/t * $39.40) + (Ag g/t * $0.44) - $78.76.
Mineral Resources are not Mineral Reserves, do not have demonstrated economic viability and may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. Inferred Mineral Resources have a lower level of confidence than Indicated Mineral Resources and may not be converted to a Mineral Reserve but may be upgraded to an Indicated Mineral Resource with continued exploration. The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines.
The Mineral Resource Estimate was prepared by Eugene Puritch, P.Eng., FEC, CET and Yungang Wu, P.Geo., of P&E Mining Consultants Inc. (“P&E”) of Brampton, Ontario, Independent Qualified Persons (“QP”), as defined by National Instrument 43-101. P&E Mining suggests that an underground mining scenario is appropriate for the project at this stage and has recommended a CDN$100/tonne NSR cut-off value for the base-case resource estimate.
Robert Macdonald, MSc. P.Geo, is VP Exploration of Equity Metals Corporation and a Qualified Person as defined by National Instrument 43-101. He is responsible for the supervision of the exploration on the Silver Queen and Monument Projects and for the preparation of the technical information in this disclosure.
On behalf of the Board of Directors
Lawrence Page, Q.C.
Chairman, Director, Equity Metals Corporation
Neither 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. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. 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 the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Equity Metals Corporation does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.