Pacifica spots new zinc-lead zones at Selwyn; drones on
Pacifica Resources Ltd (C:PAX)
Shares Issued 89,489,881
Last Close 7/7/2006 $0.89
Monday July 10 2006 - News Release
Dr. Harlan Meade reports
THREE NEW DISCOVERIES EXPAND MINERAL POTENTIAL OF SELWYN PROJECT, YUKON
Pacifica Resources Ltd. confirms the discovery of three new zones of zinc-lead sulphide mineralization. The HC zone is in Don Valley between the Brodel zone and the Anniv deposits. The Pelly North and OP West occur on the northwest end of the mineralized trend. Discovery of the HC, Pelly North and OP West zones reaffirms the continuity of the mineralized active member over more than 30 kilometres of the known extent of the Howard's Pass district and extends this length to 37.5 kilometres. Drilling is occurring on known mineralized zones on 96 square kilometres of Howard's Pass joint venture (HPJV claims) under purchase agreement and new target evaluation on the more than 209 square kilometres of wholly owned mineral claims (Pacifica claims).
Highlights:
The company discovered zinc-lead mineralized active member in the HC zone, with drill hole DON-11 intersecting an estimated true thickness of 36.15 metres of zinc-lead sulphide mineralization. Follow-up drill hole DON-13 to the discovery drill hole DON-11 has also intersected zinc-lead mineralized active member with an estimated true thickness of 29.60 metres.
The discovery of zinc-lead mineralized active member 4.5 kilometres northwest of OP zone in drill hole OP-17 (now named OP West zone) extends known trend of mineralization to the northwest toward newly staked Abbey occurrence, a farther nine kilometres.
Mineralized active member has also been intercepted in PN-3, in what has been termed the Pelly North zone. The distance between Pelly North and Nose zone in the XY deposit increases the length of known mineralization in the active member from 30 to 37.5 kilometres.
Drilling is progressing with eight diamond drill rigs conducting confirmatory drilling in the known resource areas and testing new exploration targets. To date, 33 drill holes have been completed for a total of 6,082 metres.
Surficial geochemical surveys were completed over favourable stratigraphy in the Howard's Pass strata, including the newly staked Abbey occurrence, to guide stratigraphic drilling.
Pacifica has expanded the exploration budget from $8-million to $10-million for the 2006 field season, with increased definition drilling on the new zones.
Note that all discussion of NI 43-101 compliant indicated and inferred mineral resources are referenced in the March, 2006, NI 43-101 report for Howard's Pass. All discussion of historical indicated mineral resources that predate introduction of NI 43-101 should be considered as inferred mineral resources. All historical inferred mineral resources that predate NI 43-101 should be considered as areas of mineral potential requiring further definition through drilling. Historical mineral resources are referenced in the June, 2005, NI 43-101 report for Howard's Pass. Copies of the reports can be viewed on SEDAR. Location of the new zones is available at the company's website.
HC zone
The newly discovered HC zone straddles the boundary between Pacifica's wholly owned NOD claims and the HPJV claims in the Don Valley. The NOD claims cover a nine-kilometre strike length of the favourable strata that was not previously drilled. As reported in Stockwatch in 2005, Pacifica confirmed the discovery of the Don zone at the northwest end of the valley. New drill holes DON-11, DON-12 and Don 13 have intersected similar mineralization in the active member in the southeast portion of Don Valley.
This new discovery is 2.5 kilometres northwest of the Brodel zone and 6.5 kilometres southeast of the Don zone. Drilling is planned to test the 6.5 kilometres of untested favourable stratigraphy between the two zones. Soil geochemical surveying and geological mapping are in progress to better define the location of the active member prior to commencement of systematic fill-in stratigraphic drilling in the gap between the two discoveries.
DON-11 intersected zinc-lead mineralized active member from 171.4 to 214.1 metres (42.7 metres, estimated true thickness of 36.1 metres) and DON-13, drilled 225 metres northwest of DON-11, also intersected zinc-lead mineralized active member from 53.0 to 87.2 metres (34.2 metres, estimated true thickness of 29.6 metres). DON-12 is located 500 metres southeast of Don-11 and drilling is continuing in active member. The mineralized interval from DON-11 has been sampled and shipped for assay. The HC deposit appears to be the faulted extension of the Brodel zone located on the northeast limb of the XY synclinal structure. Two drills have now been allocated to commence systematic definition drilling of the new discovery. Drilling is also planned to test the stratigraphy to the southwest toward the anticlinal hinge.
Drill hole From (m) To (m) Interval (m) True thickness (m)
Don 11 171.4 214.1 42.7 36.1
Don 12 400.8 in progress over 31.7 over 27.5
Don 13 53.0 87.2 34.2 29.6
Don 14 collared in footwall
Pelly North zone
Drill hole PN-03 was drilled 7.5 kilometres northwest of the OP zone to follow up anomalous soil geochemistry defined in the 2005 reconnaissance sampling program. The drill hole has intersected 16.8 metres mineralized active member and is continuing in active member. This drill hole extends the length of mineralized active member to 37.5 kilometres.
Drill hole From (m) To (m) Interval (m) True thickness (m)
PN-01 abandoned in hangingwall
PN-02 abandoned in hangingwall
PN-03 149.4 in progress over 16.8
OP zone
Two new drill holes have been completed following up on mineralized strata in the OP zone. Drill hole OP-17 is a 4.5-kilometre step-out to the northwest along the favourable strata. The new zone is referred to as OP West. This hole intersected 7.6 metres of active member from 115.85 to 123.48 metres. Hole OP-19, located immediately north of the OP zone, was lost in a fault in hangingwall strata to the active member.
Previous operators completed nine drill holes, with one of the holes intersecting 5.13 per cent combined zinc-lead over 4.7 metres. Pacifica completed four drill holes in 2005, on the OP zone, intersecting up to 14.2 metres of mineralized active member grading 2.84 per cent zinc and 0.97 per cent lead, which included 8.3 metres grading 4.24 per cent zinc and 1.51 per cent lead. Strata in the OP area are complicated by imbricate faults. However, the mineralization remains open for expansion of mineral potential. The gap between OP West and the OP zone is being assessed for additional drilling.
Drill hole From (m) To (m) Interval (m) True thickness (m)
OP-17 115.8 123.5 8.7 7.6
OP-19 hole lost in hangingwall strata
Anniv Central zone
The Anniv Central zone is located within the central part of the Anniv deposit, all of which is within HPJV claims, and is one of the zones being assessed for initial open-pit development. The zone has a strike length of approximately seven kilometres. Nine new drill holes have been completed in the Anniv Central zone, four of which (AN-95, AN-96, AN-103, and AN-106) have intersected zinc-lead mineralized active member typical of the Anniv Central zone. AN-97 was abandoned in the overlying hangingwall strata to the active member and did not reach target depth, whereas AN-98, AN-100, AN-101 and AN-105 were collared in footwall strata and abandoned.
Previous drilling defined a near-surface open-pit NI 43-101 compliant indicated mineral resource of 12.59 million tonnes grading 4.46 per cent zinc and 1.66 per cent lead, and an NI 43-101 compliant inferred resource of 20.97 million tonnes grading 5.38 per cent zinc and 1.79 per cent lead. Additional drilling is planned to define the trace of the shallow portion of the zinc-lead mineralized active member along strike to the northwest toward the Anniv West zone. The Anniv West zone has only been drilled on wide-spaced centres with prior operators noting that the active member is steeply dipping. Successful fill-in drilling between the Anniv Central and Anniv West zones has the opportunity to convert the mineral potential into either indicated or inferred resource categories, thereby expanding open-pit mineral resources in this area. Assays for the Anniv Central zone drill holes are expected shortly.
Drill hole From (m) To (m) Interval (m) True thickness (m)
AN-95 173.6 197.6 24.0 21.8
AN-96 203.0 218.9 15.9 9.12
AN-97 abandoned in hangingwall strata
AN-98 collared in footwall strata
AN-100 collared in footwall strata
AN-101 113.1 189.4 121.1 192.4
8.0 3.0 7.8
AN-103 66.6 103.2 36.4 34.2
AN-105 collared in footwall strata
AN-106 68.7 116.7 48.0 36.8
Anniv East zone
Three new drill holes have been completed on the Anniv East zone, where there is an NI 43-101 compliant inferred mineral resource of 18.38 million tonnes grading 4.46 per cent zinc and 1.28 per cent lead. AN-99, AN-102 and AN-104 all intersected zinc-lead mineralized active member. These new drill holes and other planned drilling will provide detailed information for upgrading the mineral resource estimate for initial planning studies and further define mineral resource potential that will be evaluated for open-pit development. Samples have been shipped to ALS Chemex and assay results for these holes are expected shortly.
Drill hole From (m) To (m) Interval (m) True thickness (m)
AN-99 83.6 94.5 10.9 4.6
AN-102 83.7 136.5 52.8 35.0
AN-104 69.2 128.0 58.8 48.1
XY Central zone
The XY Central Zone is within the area of the Selwyn project that has seen the most extensive exploration work. The zone is part of the XY deposit that is located approximately 12 kilometres southeast of the Anniv deposit. The XY deposit is one of several areas being evaluated for initial open-pit development.
Drilling in the XY Central zone has defined an NI 43-101 compliant indicated mineral resource of 20.51 million tonnes grading 5.90 per cent zinc and 2.37 per cent lead, and an NI 43-101 compliant inferred resource of 54.13 million tonnes grading 6.15 per cent zinc and 2.77 per cent lead. Three new drill holes have been completed, with XY-110 intersecting only a narrow width of zinc-lead mineralized active member. XY-112 appears to have been drilled in an unmineralized fault block off the eastern boundary of the mineralized sedimentary basin hosting the Howard's Pass deposits. Drill hole XY-113 was collared in footwall strata and shutdown immediately defining the near-surface boundary in this area. Additional fill-in drilling is planned on the shallow part of this zone to better define resources in the potential open-pit part of this resource. Assays for these holes are expected shortly.
One new drill hole has also been completed as part of additional follow-up of the historical, high-grade underground diluted mineral reserve defined by detailed drilling in the underground work program undertaken from 1979 to 1981. The HPJV defined a historical diluted mining reserved of 8.9 million tonnes grading 10.6 per cent zinc and 5.5 per cent lead. This historical diluted mining reserve estimate predates NI 43-101 and used economic parameters that only have limited or no relevance today. Although such estimates were considered relevant at the time, they are not today due to changing economics and mining methods, and they are not based upon an NI 43-101 compliant feasibility study that indicated economic viability. XY-111 intersected zinc-lead-rich mineralized active member with results to be released after review by Pacifica's technical team.
Drill hole From (m) To (m) Interval (m) True thickness (m)
XY-110 123.8 124.0 0.2
XY-111 332.9 358.1 25.2 24.5
XY-112 active member faulted out
XY-113 fault displacement of Active Member
XY-114 collared in footwall strata
XY-115 57.5 83.0 25.5 24.6
HP zone
One new drill hole was drilled on the HP zone. However, HP-04 was lost in poor ground conditions within the overlying hangingwall strata to the active member. Previous drilling on the HP claims intersected thin zones of active member over a strike length of 900 metres. However, there remains an undrilled gap between the HP zone and the Brodel zone to the northwest. The active member in this area is located on the east limb of the synclinal structure that hosts the XY deposit and is approximately 1.6 kilometres to the east of XY Central zone. Drill hole HP-03 has provided the highest-grade mineralization with 9.4 metres grading 5.35 per cent zinc and 1.44 per cent lead. Drilling indicated that the HP zone appears to define a gradational boundary of what is being interpreted as the eastern edge of the XY deposit.
Don zone
One new drill hole has been completed in the valley bottom as follow-up to the Don zone discovery drill hole DON-04. DON-10 remained in favourable stratigraphy that overlies the active member until it was shut down at 417.4 metres. In 2005, the first three holes were drilled in the floor of Don Valley to begin to test the then undrilled 11-kilometre strike length of favourable strata. The three holes all intersected favourable strata that overlies the active member and were abandoned before reaching the active member because the drill hole target depths were below open-pit range. DON-04 collared upslope from the first three drill holes and intersected 40.2 metres of active member that dips subparallel to the hill slope (estimated true thickness of 36.1 metres). The stratigraphy is complicated by faulting. Additional drilling is planned to understand the fault displacement of the active member and extend the zone along the slope. Zinc-lead sulphide mineralization remains open and follow-up is warranted.
East Panel
Two new stratigraphic drill holes, EP-01 and EP02, have been completed in the East Panel. Four other holes were lost in faults or broken ground. The East Panel covers a large area which lies to the east of the boundary fault that occurs to the east of all of the known mineralized zones in the West Panel. Drill hole EP-01 is located east of OP zone, whereas EP-02 is located east of the Don zone. Both holes tested a large stratigraphic interval and failed to intersect active member, suggesting a different basinal facies occurs east of the boundary fault. Further geological and structural assessments of the strata are required to gain a full understanding of changes in the basinal facies.
Geologic and stratigraphic modelling
With the discovery of well-mineralized active member in Don Valley in the Don zone and the newly discovered HC zone, as well as the Brodel zone, followed by Pelly North and OP West, it is now clear that there is a need to further define stratigraphy in each fault block to vector into the location of the active member, which is the host for zinc-lead mineralization. In 2005, the regional mapping team led by Dr. R.W. Hodder identified a new structural model for distribution of the local stratigraphy that is consistent with the current understanding of fold and thrust belts. This mapping also indicates that the strata in the vicinity of the Howard's Pass deposits are repeated as panels between moderate- to low-angle west-dipping thrust faults. These fault panels are in turn cut by latter steep normal faults that further juxtapose the strata. The second significant change in understanding is that the mineralized active member is part of a large continuous sheet of mineralization that occurs over a distance of perhaps 50 kilometres, rather than the known mineralized zones being related to restricted subbasins. The combination of these two interpretations significantly increases the areas for future exploration. Several large target areas are being readied for stratigraphic drilling.
Geochemical surveys
Pacifica has collected over 2,500 soil samples over a strike length of 42 kilometres across the Howard's Pass strata aimed at identifying new targets, as well as further defining favourable strata along strike from known zinc-lead zones, such as Brodel and Don. Soil grids continue to be established throughout the Don Valley, with field crews mobilizing to the vicinity of the newly discovered HC zone, as well as to the Abbey occurrence on the recently staked northwest 16-kilometre extension of the Selwyn project. Soil sampling in 2005, led to the discovery of the Pelly North zone.
Exploration and development plan for 2006
Pacifica's approved $8-million exploration program has been expanded to $10-million for the summer and fall of 2006. It consists of drilling, geological mapping, surficial geochemical surveys, additional metallurgical testing and an environmental baseline survey. Drilling is continuing with eight drill rigs. Four drills are testing stratigraphic targets with potential for new discoveries while the other four drills are undertaking fill-in drilling. The four drills undertaking fill-in drilling have two objectives -- firstly, to convert mineral potential into the inferred resource category and inferred into the indicated resource category, and secondly, to define an additional 100 million tonnes of shallow mineralization amenable for open-pit mining within the new discovery areas (see Stockwatch, Feb. 9, 2006).
The Selwyn project exploration program is being reviewed by the vice-president of exploration, Jason Dunning, MSc, PGeo. The activities on site for the Selwyn project are directed by the exploration manager, John J. O'Donnell, PGeo. Both Mr. Dunning and Mr. O'Donnell are qualified persons within the meaning of National Instrument 43-101. Pacifica's main focus is the exploration of its Selwyn project in eastern Yukon and Northwest Territories. The Selwyn project hosts very large tonnages of zinc-lead mineralization. The known deposits have the potential for large-scale production of zinc and lead at a time when the world's zinc mine supply is in deficit and there are few new zinc-lead mines under development.
© 2006 Canjex Publishing Ltd. |
