Radcliff Property Update 5510 Level Mineralized Zone Channel Sample Assays
Vancouver, B.C. / TheNewswire / July 25 2015 - CMC Metals Ltd. (the "Company") wishes to provide a further update on the status at the Radcliff Mine which forms part of the World Beater Property. The Company holds a 100% interest in the Bishop Mill and owns a 50% interest in the World Beater Property and Radcliff Mine.
As per the Company's press release dated April 15, 2015, Pruett Ballarat Inc., ("Pruett") (the current operator of the Radcliff project), advised the Company in early April that underground development work on the 5510 Level adit had intersected the targeted high grade mineralized zone. The mineralized zone was partially defined by previous drilling and the 5510 Level adit was driven roughly perpendicular to the strike of the mineralized zone. According to Pruett, mineralization occurs over a drift length of approximately 20 feet (6.1 meters) from Station 1+20 to Station 1+40. The mineralized zone appears to be inclined at approximately 45 degrees and the true width of the zone is estimated at 12 feet (3.7 meters).
According to CMC staff onsite, the channel samples were collected from diamond saw cut intervals along both sides of the 5510 Level drift. A total of 20 samples were collected. Each sample reportedly represents a two foot (0.60 meter) horizontal distance along the drift wall. Within the mineralized zone, an 8.0 foot (2.40 meter) interval returned 0.617 oz/ton gold (21.18 g/t). The following table lists the sample results received from ALS Global. Samples from the North side of the drift are labelled N-001 to N-010 and samples from the South side are labelled S-001 to S-010.
Table 1: Radcliff Mine 5510 Drift Channel Samples
North Side 5510 Level Drift South Side 5510 Level Drift
Sample No. Grade (g/t) Grade (oz/ton) Sample No. Grade (g/t) Grade (oz/ton)
N-001 9.34 .27 S-001 3.55 .10
N-002 55.40 1.62 S-002 16.50 .48
N-003 5.71 .17 S-003 7.56 .22
N-004 14.25 .42 S-004 2.02 .06
N-005 6.51 .19 S-005 17.65 .51
N-006 3.38 .10 S-006 43.60 1.27
N-007 3.81 .11 S-007 8.51 .25
N-008 7.94 .23 S-008 3.44 .10
N-009 4.36 .13 S-009 1.02 .03
N-010 4.65 .14 S-010 0.12 .004
It is important to note that the assays reported in Table 1 represent preliminary assays only. Additional assays designed to test for the presence of coarse metallic gold are in progress. In the event that the presence of coarse gold is confirmed, the average grade of the mineralized zone could be higher than reported. It is also important to note that no systematic QA and QC program has been implemented by a Qualified Person (as that terms is defined in 43-101F1 requirements) to verify the assay results reported in this release. Results from the 10 muck samples referenced in the Company's press release dated April 15, 2015 have not yet been received.
Material from the mineralized zone is currently being stockpiled adjacent to the Radcliff Mine workings pending final approval of the operating permit for the Company's Bishop Mill. The Company's current business plan is to selectively mine portions of the high grade indicated resource (reference Ristorcelli, 2015) by underground mining methods and process this material at its wholly owned mill located near the town of Bishop approximately 150 kilometers North of the mine. Pruett, the current operator of the Radcliff project, continues to work with a local smelter within trucking distance to secure a contract to direct ship mineralized material from the current underground workings.
The Company advises that management has not based its production decision on a feasibility study of mineral reserves, demonstrating economic and technical viability, and as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
The scientific and technical data contained in this news release pertaining to the World Beater / Radcliff Mine Project was prepared under the supervision of Carl von Einsiedel, PGeo. who is responsible for ensuring that the geologic information provided in this news release is accurate. Mr. von Einsiedel is a "non-independent qualified person" as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Jack Bal, CEO of the Company, states "Systematic channel sampling at Radcliff has confirmed the presence of high grade material at Radcliff and management is actively reviewing processing options, including shipping directly to a smelter. Final permitting is progressing at the Bishop Mill and the Company expects completion shortly".
On behalf of the Board:
"Jack Bal" __
Jack Bal, President & CEO
CMC METALS LTD.
