TORONTO, ONTARIO--(Marketwire - June 25, 2012) - Strike Minerals Inc. ("Strike") (TSX VENTURE:STK) announces that the Company is continuing the underground development at the Edwards Mine project and commencing drilling at its Schreiber property.
The Edwards #1 vein extends from the surface. It is open in depth. On the 60 meter level, a drift length of 29.4 m has been driven on the Edwards #1 vein and has an average grade of 25 g/t over a 1.5 m width. This zone aligns with historical assays of 80 ft with an average grade of 0.4 oz/t over a 6.5 ft width at the 30 m level from the old Edwards shaft. The company is reviewing the results and assessing the feasibility of mining the block to generate revenue for further development of the project. On the 60 m level the company has intersected and has commenced drifting along the Edwards #5 zone. Assays are pending on the first few rounds that have been completed.
Strike is developing the 90 m level cross-cut to intersect the New North 1, New North 2, Edwards #3 and #5 veins, Rusty Weathered Zone and the Ploughman veins. We have advanced this crosscut beyond where we anticipated encountering the New North 2 zone.
Strike has established a mine refuge station on the 120 m level and has established explosives magazines underground. We are opening a drift on the 120 m level to connect with the Shaynee zone. It requires minor pumping to re-establish the level that historically has some significant volumes of high grade material remaining untouched from the mining that ceased in 2001.
Surface infrastructure at the site has been significantly updated. Overhead power lines from the main sub-station to a new secondary substation have been installed. Additional support equipment has been purchased including a stand by generator, an electric man carrier to provide transportation for supervision, engineering, geology/sampling and electrical personnel to areas of the mine to reduce the fan ventilation requirements so they can be focused as required in the areas where diesel powered equipment including a 17 ton underground haul truck, a 2.5 yard scoop tram, and a Long Tom, are operating.
At Schreiber the company has started road building to provide access to claims immediately to the West of the GTA Afric zone drilling. The first two holes have been spotted and a contract for a minimum of 1000m of drill has been agreed with Discovery Drilling. The holes are designed to test for the western extension of the Afric zone.
The Company has issued 625,000 shares as a payment for mining equipment to be used at the Edwards Mine property. The shares have been issued at $0.08 reflecting the share price at the time of the agreement. The shares were requested by the equipment provider. The equipment will be used to assist in the current underground development work being conducted by Strike at the Edwards mine.
All technical information in this press release has been reviewed and approved by Mike Newbury, P.Eng., who is a Qualified Person ("QP") under National Instrument 43-101. On site sampling was supervised by Bruce Staines, P. Eng.
Strike Minerals is a TSX-V listed company that is engaged in the exploration and development of precious metal properties in Canada. Its primary property is the former producing Edwards Gold Mine property in the Goudreau - Lochalsh Gold Camp near Wawa Ont. Historic production in the camp between 1930 and 2001 is estimated at 500,000 ounces. Between 1996 and 2001 underground development was completed through a decline to a depth of approximately 290 m and mining over the period resulted in 145,000 oz being produced from the Edwards property at an average grade of 0.39 opt. Subsequent drilling on the property has delineated an additional five zones that have significant gold mineralization. At present Strike is has dewatered the underground workings below the 120 m level and is now continuing underground drifting on both the 60 m and 90 m level and is drifting on both the Edwards #1 and #5 zones with the plan to be in production by the end of 2012.
Strike also has a large land position in the Hemlo West area near Schreiber, Ont. The property has a number of historic producers that produced small tonnages of very high grade gold mineralization, averaging approximately 18-25 g/t gold, between 1935 and 1937 generally associated with shear zones in the region. These shear systems have seen very little modern exploration, and drill testing at or near a prominent syenite volcanic contact is considered highly prospective for the discovery of additional gold mineralization. Strike will conduct an initial program of surface geological and alteration mapping on the Property with a goal of increasing the understanding of the geologic and structural relationships on the Property in preparation for drill testing to assess the extent and value of the mineralization.