ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - March 13, 2012) - Canada Fluorspar Inc. (TSX VENTURE:CFI) ("CFI" or the "Company") is pleased to announce an update of its exploration activity on the Director Vein located on the Company's 100% owned development properties at St. Lawrence, Newfoundland.
CFI has undertaken surface trenching of the Director Vein over the past 60 days and to date has uncovered fluorspar mineralization at five locations. The trenches are currently located over an area that extends more than 650 m to the south of the old workings of the Director Vein, and indicate surface mineralization in width varying from 3.4 m to 16.5 m. Trenching operations are planned to continue over the next month and the Company expects to commence a drilling program on the Director Vein during the second quarter of 2012. Assay work on the trench samples is currently underway, and results will be provided as they become available.
Based on the positive results from the fourth and fifth trenches the Company is moving to complete a minimum of 2 more trenches on the Director Vein under the current program.
Lindsay Gorrill, President & CEO of Canada Fluorspar Inc. stated that, "we are very encouraged by the ongoing trenching results which could indicate an extension of the Director Vein of over 650 meters south of the old workings. We look forward to providing further updates on exploration results and the assays when the results become available."
Background Information for the Director Vein.
Canada Fluorspar Inc., through its wholly owned subsidiary, Canada Fluorspar (NL) Inc. (CFI-NL), holds 100% of the mineral rights to property in the St Lawrence area of Newfoundland on which the Director Vein is located. The Director Vein was previously mined by the Aluminum Company of Canada (Alcan) from 1942 to 1977. The mine shut down in September 1977, after Alcan decided to curtail operations permanently. Prior to the shutdown, Alcan estimated that significant mineralized material was left at the existing Director Mine. The Director Vein was reported by Alcan to be open along strike and at depth. Both the north and south extremities of the Director Vein are believed to contain significant fluorspar mineralization, with the south end of Director Vein, known as Director South Extension, considered to have the greatest potential, in part due to the fact that it is exposed at the surface, and is close to an existing mill, proposed tailings facility and deep harbour wharf. Historically, the Director Vein widths exceeded the generally normal widths and the grades exceeded the grades for a north-south vein in the St. Lawrence area. CFI designed a program to trace the mineralized structure of Director Vein to the south along strike through a series of surface trenches which started in January 2012. Five trenches have been completed to-date with additional trenching planned over the following 4 to 6 weeks. See the attached map for the location of the existing area of the trenching program.
Results to-date from Trenches 4 and 5 are as follows:
Trench #4, completed 100 meters to the south of Trench #3, successfully identified the Director Vein/Structure along the projected strike. The trenching exposed a 16.1 meter wide fault structure containing brecciated granite with thin veinlets of fluorite and a 2.9 meter wide vein of massive fluorite. Although the overall width of the structure remained about the same (16 meters), the vein of massive fluorite within the structure had decreased from 9.4 meters wide in Trench #3 to 2.9 meters wide in Trench #4. The fluorite vein observed in Trenches #3 and #4 confirms continuity of the mineralization over a strike length in excess of 100 meters. The trench was mapped and the vein material was sampled for analyses.
Trench #5 was located 148 meters to the south of Trench #4 along the projected strike of the Director structure and was adjacent to two trenches completed by Alcan in 1974-75. Trenching identified a 13 meter wide fault zone that was considered to be the Director Vein structure. The zone at this location was comprised of primarily sand sized fragments of faulted granite, rounded quartz grains and traces of fluorite. The trend of the mineralized zones in Trenches #3 and #4 indicated that a pinch zone was developing to the south along strike and this pinching out of the massive fluorite mineralization in Trench #5 confirmed this trend. Assuming the pinch and swell nature of the vein system continues along strike to the south, the development of a wider zone of fluorite mineralization might be expected to occur to the south of Trench #5. The trench was mapped and the Director Vein structure was sampled for analyses.
About the Company
The Company is a specialty mineral resource company engaged in the development of fluorspar deposits located in St. Lawrence, Newfoundland, Canada, and is reactivating the existing Blue Beach and Tarefare underground fluorspar mines, expanding the existing mill, constructing a new, environmentally-sound Tailings Management Facility through its 50/50 joint venture with Arkema, called Newspar. The Company is also building a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product.
Previous fluorspar operators, Alcan and Minworth, who operated on Blue Beach North and Tarefare veins, produced in excess of 4.6 million tonnes of fluorite (CaF2) in a 47 year history of production ending in 1991.
At a cut-off grade of 20% CaF2 and a minimum horizontal thickness of two meters, the Mineral Resources of Blue Beach North and Tarefare veins total approximately 9.1 million tonnes of Indicated Mineral resources at an average grade of 42.0% CaF2, and 950,000 tonnes of Inferred Mineral Resources at an average grade of 31.1% CaF2, in each case, estimated by the Roscoe Postle Associates Inc. 43-101 technical report dated April 29 2011 (the "43-101 Report"). At a cut-off grade of 30% CaF2 and a minimum horizontal thickness of two meters, the Probable Mineral Reserves of the Blue Beach North and Tarefare veins total approximately 5.4 million tonnes at an average grade of approximately 39.8% CaF2. The Mineral Reserves are part of the Mineral Resources. The key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, as well as other relevant information, including data verification, with respect to the Blue Beach North and Tarefare veins can be found in the 43-101 Report which has been filed under the Company's profile on Sedar (www.sedar.com). The Blue Beach North and Tarefare veins have overall average widths of 5 m and 3.5 m respectively.
Jim Reeves, Senior Geologist with CFI, who is Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Properties, reviewed and approved the technical content of this release. The historic production information provided has not been verified by the Company and is provided for reference only.
Jim Reeves was on site during the trenching at the Director Vein and verified the data collected. The trenched area of the Director Vein was washed down to remove as much till material as possible to expose the bedrock and to permit geological mapping and sampling. Each of the trenches was mapped in detail, including the lithologic units and the structures. Continuous chip samples across each of the designated mineralized intervals were collected, bagged, labeled and sealed. Chip samples of the wall rock, one meter on each side of the mineralized zones, were also collected, bagged, labeled and sealed.
For more information please see: www.canadafluorspar.com.
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