VANCOUVER, BC / ACCESSWIRE / January 26, 2023 / Emergent Metals Corp. (TSXV:EMR)(OTCQB:EGMCF)(FRA:EML)(BSE:EML) ('Emergent' or the 'Company') announces the discovery (the 'Discovery') of a new porphyry and skarn exploration target at its New York Canyon Property, Nevada ('NYC' or the 'Property'). The Discovery, made by Kennecott Exploration Company ('KEX'), a subsidiary of Rio Tinto plc (RIO), is located on Emergent's north block ('North Block') of claims. Named the Emma ('Emma') exploration target, it is about 1,650 m (5,400 ft) long (north-south) by 1,400 m (4,600 ft) wide (east-west) and is open in all directions.
Emma represents an addition to three known copper porphyry and skarn exploration targets located on Emergent's south block ('South Block') of claims at NYC. The South Block, located four miles south of the North Block, hosts the Copper Queen, Longshot Ridge, and Champion exploration targets. Emergent has an Earn-in with Option to Joint Venture Agreement (the 'Agreement') with KEX whereby KEX has three options to earn up to a 75% interest in NYC by completing exploration expenditures of US$22.5 million on the North and South Block.
Emma was identified by a combination of rock chip, soil sampling, a UAV orthophoto survey, and a UAV magnetic geophysical survey done by KEX as part of its annual exploration work completed at NYC in 2022 (the '2022 Exploration Program'). Significant rock chip samples (greater or equal to 1.00% Cu) from this field work are shown in Table 1 below:
Significant Rock Chip Samples
(>= 1.00% Cu)
Twenty of 41 rock chip samples taken had grades greater than or equal to 1.00% Cu. Three samples had gold grades greater than or equal to 1.00 g/t Au. Fifteen samples had silver grades greater than or equal to 10 g/t Ag. Note that 1.0 ppm Au or Ag equals 1.0 g/t Au or Ag respectively.
Significant soil samples (greater or equal to 500 ppm Cu) from this field work are shown in Table 2 below. Seventeen of the 41 soil samples taken had grades greater than equal to 500 ppm Cu. Five samples had grades greater than or equal to 1,000.0 ppm Cu. Four samples had Ag grades greater than or equal to 1.0 g/t silver. Note that 10,000 ppm Cu equals 1.0% Cu.
Signifcant Soil Samples
(>= 500 ppm Cu)
Details of the rock chip and soil sampling programs are outlined below, including QA/QC procedures.
The geology at the Emma exploration target is similar to the Copper Queen, Longshot Ridge and Champion exploration targets, where copper skarn mineralization is present in Mesozoic limestone, including Luning Formation. Porphyry copper mineralization is also present in igneous intrusive rocks of Cretaceous age. At Emma quartz monzonite, porphyritic quartz monzonite, and quartz eye porphyry have been identified.
David Watkinson, President and CEO of Emergent, states, 'Emergent is extremely excited by KEX's discovery of the Emma target at NYC. The rock chip and soil sampling results, along with alteration mapping and geophysics, indicate potential for a porphyry and skarn deposits to be found on the North Block, which has previously been unexplored by either Emergent or KEX. KEX has already completed permitting to test this target, with diamond core drilling planned in the first quarter of 2023. They also plan to further test the extension of the Copper Queen deposit to the southeast on the South Block, with diamond core drilling also planned in the first quarter of 2023.'
About the Emergent-Kennecott Earn-in with Option to Joint Venture Agreement
As announced on February 11, 2020, Emergent signed an Earn-in with Option to Joint Venture Agreement (the 'Agreement') with KEX at NYC. Key points of the Agreement include:
- KEX has an option (the 'First Option') to acquire a 55% undivided interest in the Property by incurring US$5.0 million in expenditures over a 5-year period, of which US$1.0 million is a committed expenditure that must be completed prior to the 18-month anniversary of the Agreement.
- KEX has a second option (the 'Second Option') to earn an additional 10% undivided interest in the Property (for a total of 65%) by incurring an additional US$7.5 million in expenditures over a 3-year period.
- KEX has a third option (the 'Third Option') to earn an additional 10% undivided interest in the Property (for a total of 75%) by incurring an additional US$10 million in expenditures over a 3-year period.
- For clarity, KEX can earn up to a 75% interest in the Property by completing up to US$22.5 million in total exploration expenditures under the First, Second, and Third Options.
- Any expenditure in excess of an option expenditure requirement in a given time period will be credited against subsequent option expenditure requirements. KEX may, at any time or from time to time, accelerate its satisfaction of the First, Second, or Third Option by paying Emergent money in lieu of incurring expenditures.
- While earning in, KEX has the right to make exploration and development decisions.
- KEX must maintain the Property in good standing during the option period(s), including payment of BLM and County maintenance fees.
- KEX will have the right to elect to form a joint venture (the 'Joint Venture') with Emergent upon completion of either the First, Second, or Third Option. Upon establishing a Joint Venture each participant will fund the joint venture according to its participating interest, with KEX acting as the Manager of the joint venture. If a party's participating interest falls below 10%, then such parties participating interest will be converted to a 1% Net Smelter Royalty, capped at US$25 million.
To date, KEX has spent an estimated US$5.24M as exploration expenditures on the Property to year-end 2022. Based on the Agreement, they have until February 7, 2025, to exercise the First Option under the Agreement.
About the NYC Property
NYC is located 30 miles east of Hawthorne, Nevada. The Property, subject to the Agreement, consists of 21 patented claims and 152 unpatented claims owned by Emergent and 265 unpatented claims owned by KEX., for a total of 21 patented claims and 417 unpatented claims (3,520 ha or 8,700 acres in size). The claims are located in two blocks, North and South. The North Block, subject to the Agreement, consists of 27 unpatented claims. The South Block, subject to the Agreement, consists of 21 patented claims and 390 unpatented claims. To date, all the exploration targets at NYC have been found on claims subject to the Agreement.
KEX has staked an additional 257 unpatented claims around the North Block (the 'North Buffer Claims') and 110 unpatented claims around the South Block (the 'South Buffer Claims'), for an additional 367 unpatented claims. These additional claims do not fall under the Agreement and are outside the Area of Influence that is part of the Agreement. This brings the total number of claims that make up the New York Canyon Property to 21 patented claims and 784 unpatented claims, or approximately 6,350 ha (15,700 acres).
About the 2022 Exploration Program at NYC
North Block (Emma Target)
The Emma exploration target, located on the North Block, is one mile south of the historic Santa Fe Mine. The Santa Fe gold-silver deposit was discovered in the late 1970's and mined by Corona Gold in the late 1980's and early 1990's. Historic production estimated from Santa Fe Mine is 345,499 ounces of gold and 710,629 ounces of silver between 1989 and 1995 (source: The Nevada Mineral Industry, Special Publication MI-2017, Nevada Bureau of Mines and Geology). Santa Fe Mine is controlled and being explored by Lahontan Gold Corp. (TSXV:LG). Note that the vicinity of the Property to a past producing mine is not necessarily indicative of the mineralization that may be hosted at NYC, and does not mean that a similar deposit will be found However, the rock chip sampling completed to date at Emma appears to indicate higher gold and silver grades may be found in the North Block as compared to the South Block at NYC, which might be related to mineralization associated with the nearby Santa Fe Mine.
Exploration on the North Block in 2022 consisted of soil sampling, rock chip sampling, a UAV magnetics geophysics survey, and a UAV orthophoto survey. Table 3 itemizes results from 43 rock chip samples taken on the North Block. Rock samples were taken in monzonite, quartz monzonite, granite, limestone, marble, and skarn bedrock. Results show elevated copper and other indicator minerals as listed. Copper grades ranged from 0.012% Cu to 14.750% Cu. Average grade of the 41 samples was 1.735% Cu, 300 ppb Au, 39.74 g/t Ag, 49.9 ppm Mo, 24.7 ppm Pb, and 1,007.1 ppm Zn. Twenty of the 41 rock chip samples taken had grades greater than or equal to 1.00% Cu. Three samples had gold grades greater than or equal to 1.00 g/t Au. Fifteen samples had silver grades greater than or equal to 10 g/t Ag.
Rock Chip Sampling Results - Key Indicator Minerals
North Claim Block Sampling
*Northing, Easting, and Elevation in WGS84 coordinate system
Table 4 itemizes results from 42 soil samples taken on the North Block. Results show elevated copper and other indicator minerals as listed. Cu grades ranged from 61 ppm to 2,040 ppm (0.204% Cu). Average Cu grade of the 41 samples was 519.5 ppm, with five samples greater than or equal to 1,000 ppm Cu. Average Au and Ag grades were 0.012 ppm and 0.540 ppm respectively. The soil samples were taken over monzonite, granite, limestone, marble, and skarn bedrock.
Soil Sampling Results - Key Indicator Minerals
North Claim Block Sampling
*Northing, Easting, and Elevation in WGS84 coordinate system
The locations of the rock chip and soil samples for Cu are shown in Figures 1 and 2 below, respectively.
Copper in Rock Chips - Sample Locations
North Block, NYC
Copper in Soils - Sample Locations
North Block, NYC
Results from the soil and rock chip sampling indicate that both skarn and porphyry copper exploration targets exist on the North Block that may have significant byproduct metals including gold and silver.
The UAV orthophoto was used to map alteration on the North Block. The UAV magnetic survey was used to compare resistivity/conductivity of the rock and has been reviewed in combination with geological mapping, alteration mapping, soil sampling, and rock chip sampling. There appears to be a magnetic low associated with an area in an area mapped with mineralized porphyry dykes that has been named the Emma exploration target.
As part of their work in 2022, KEX permitted upgrading of existing access roads, new road construction where needed, and construction of nine drill pads under a Notice of Intent ('NOI') with the Bureau of Land Management ('BLM') on the North Block of claims. This will allow drilling to commence on the North Block, focussed on the Emma exploration target in 2023.
Soil samples were taken by KEX's geologists in September 2022. Samples were taken to depths of 10-30 cm and had weights ranging from one to two pounds. Samples were sieved in the field to collect the less than 2 mm size fraction. A standard was inserted at every 20 samples.
Rock chip samples were taken by KEX's geologists in July and September 2022. Sample weights ranged from three to eight pounds. All rock samples were taken as outcrop grab samples. Standards were inserted at every 30-40 samples.
Rock chip and soil samples were assayed by ALS Geochemistry in Elko and Reno Nevada. The analysis methods included ALS-ME-MS61L multielement ICP method plus gold by 30g fire assay (Au-ICP21).
South Block (New York Canyon, Longshot Ridge, Champion Targets)
In 2021, KEX completed the following work on the South Block at NYC:
- Geological and alteration mapping;
- Re-assaying of selected intervals of 10 historic core holes;
- Surface rock chip sampling;
- UAV magnetic geophysics survey and DEM survey;
- Passive seismic geophysics survey;
- Carbon-oxygen isotope analysis for historic holes MN-202 and MN-222; and
- 4,481 m of diamond core drilling in 10 holes.
Results from this work can be found in press releases dated October 4, 2021, January 26, 2022, and March 7, 2022, press releases. In 2022, KEX worked on analyzing this data and completing a 3-D geological/geophysical models of the exploration targets on the South Block from historic and 2021 drilling and other data collected.
In 2022, after completing of modelling and analysis of data from 2021 exploration, KEX amended its existing NOI, originally obtained in 2021, to allow the company to do additional drilling on the South Block in 2023.
Plans for the 2023 Exploration Program at NYC
KEX plans to continue geologic, structural, and alteration mapping on the North Block in 2023 as well as take additional soil and rock chip samples. Plans are to install the access roads and pads needed 2023 Exploration Program. KEX then plans to drill an initial core test hole of 700 m (2,300 ft) (subject to adjustment in the field) to test the Emma exploration porphyry-skarn target, with drilling expected to take place in the first quarter of 2023. Based on results from this core hole, KEX will assess the results and potentially drill additional holes to further test the Emma target during the remainder of the year.
KEX plans to initially test a target to the southeast of the Copper Queen area. Note in 2021, hole NYCN008 intersected 101.89 m (334.28 ft) of 0.35% CuEq, including 17.40 m 57,09 ft) of 0.734% CuEq, 4.76 m (15.62 ft) of 0.783 CuEq, and 3.00 m (9.84 ft) of 1.062% CuEq (see January 26, 2022, press release). It is believed the Copper Queen deposit may be extending to the southeast, with increasing grade, and drilling is planned to test this theory. Surface rock chip sampling has indicated increasing copper grades and an increased copper to zinc ratio as one look to the southeast of Copper Queen. The target is a moderate mag high and high chargeability anomaly under thin cover (<10.0 m or 32.8 ft) that hasn't been previously explored. Based on results from this core hole, planned to be drilled to a depth of 600 m (subject to adjustment in the field), KEX will assess the results and potentially drill additional holes to further test the potential extension of the Copper Queen target further during the remainder of the year.
Technical aspects of this press release have been reviewed and approved by Robert Pease, P.Geo., CPG., a non-independent consultant to Emergent and a designated Qualified Person (QP) under National Instrument 43-101.
Emergent is a gold and base metal exploration company focused on Nevada and Quebec. The Company's strategy is to look for quality acquisitions, add value to these assets through exploration, and monetize them through sale, joint ventures, option, royalty, and other transactions to create value for our shareholders (acquisition and divestiture (A&D) business model).
In Nevada, Emergent's Golden Arrow Property, the core asset of the Company, is an advanced stage gold and silver property with a well-defined measured and indicated resource. New York Canyon is a base metal property subject to an Earn-in with Option to Joint Venture Agreement with Kennecott Exploration, a subsidiary of Rio Tinto Plc (NYSE:RIO). The Mindora Property is a gold, silver, and base metal property located twelve miles from New York Canyon. Buckskin Rawhide East is a gold and silver property leased to Rawhide Mining LLC, operators of the adjacent Rawhide Mine.
In Quebec, the Casa South Property, is an early-stage gold property adjacent to Hecla Mining Corporation's (NYSE:HL) operating Casa Berardi Mine. The Trecesson Property is located about 50 km north of the Val d'Or mining camp. Emergent has a 1% NSR in the Troilus North Property, part of the Troilus Mine Property being explored by Troilus Gold Corporation (TSX:TLG). Emergent also has a 1% NSR in the East-West Property, owned by O3 Mining Corporation (TSX:OIII) and adjacent to their Marban Property.
Note that the location of Emergent's properties adjacent to producing or past producing mines does not guarantee exploration success at Emergent's properties or that mineral resources or reserves will be delineated.
For more information on the Company, investors should review the Company's website at www.emergentmining.com or view the Company's filings available at www.sedar.com.
On behalf of the Board of Directors
David G. Watkinson, P.Eng.
President & CEO
For further information, please contact:
David G. Watkinson, P.Eng.
Tel: 530-271-0679 Ext 101
Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note on Forward-Looking Statements
Certain statements made and information contained herein may constitute 'forward looking information' and 'forward looking statements' within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward-looking statements and information may be identified by such terms as 'anticipates', 'believes', 'targets', 'estimates', 'plans', 'expects', 'may', 'will', 'could' or 'would'. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws. The Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including any technical reports filed with respect to the Company's mineral properties.
SOURCE: Emergent Metals Corp.
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