Rokmaster Resources Corp. is pleased to announce that on August 7, 2019 it has executed a non-binding Indicative Term Sheet with Huakan International Mining Inc.
Rokmaster Resources Corp. (“Rokmaster” or the “Company”) is pleased to announce that on August 7, 2019 it has executed a non-binding Indicative Term Sheet (the “Term Sheet”) with Huakan International Mining Inc. (“Huakan”) in respect of Huakan’s grant to Rokmaster of an option (the “Option”) to acquire a 100% interest in the J&L Project, one of the larger undeveloped precious and polymetallic deposits in British Columbia (the “J&L Property” or “J&L”), including mineral claims, surface lands, crown grants, equipment, improvements and all associated assets, which Rokmaster can exercise by paying Huakan an aggregate of Cdn$44,200,000 in cash on the following schedule:
- Cdn$200,000 on the date of execution (the “Execution Date”) of a Definitive Agreement in respect of the Option;
- an additional Cdn$1,000,000 on or before the date which falls 12 months from the Execution Date;
- an additional Cdn$4,000,000 on or before the date which falls 24 months from the Execution Date;
- an additional Cdn$6,000,000 on or before the date which falls 36 months from the Execution Date;
- an additional Cdn$13,000,000 on or before the date which falls 48 months from the Execution Date; and
- an additional Cdn$20,000,000 on or before the date which falls 60 months from the Execution Date.
In addition, to maintain the Option, Rokmaster is to complete an updated Preliminary Economic Assessment on the J&L Property during the first year following the Execution Date.
Rokmaster is to have the right and option, upon 4 months prior written notice to Huakan of Rokmaster’s intention to exercise the Option, to require Huakan’s shareholders to transfer all of Huakan’s shares to Rokmaster upon Rokmaster having paid the Aggregate Option Price to Huakan.
Rokmaster has been granted exclusivity for a 60-day period commencing August 7, 2019, during which it shall complete due diligence and the parties are to negotiate the Definitive Agreement.
The J&L Property
The J&L Property consists of 18 mineral tenure claims and 10 crown granted claims for a total of 3,150.74 hectares. Huakan currently owns a 100% interest in the J&L Property and assets thereon without any underlying royalties.
The J&L Property is located 35 km north of Revelstoke within the Selkirk Mountains near the north end of the Kootenay Arc, a complex sequence of east dipping Neoproterozoic to Lower Paleozoic metasedimentary and metavolcanic rocks. The belt is characterized by tight to isoclinal folds and generally west verging thrust faults and greenschist grade regional metamorphism. The J&L Property is underlain by north to northwest striking, moderate to steeply east dipping metasediments and metavolcanic rocks of the Hamill and Lardeau Group and Badshot and Mohican Formation rocks.
The J&L Property has two known and significant precious and polymetallic mineral deposits. The Main Zone is a structurally controlled replacement deposit overprinting a pre-existing silver-lead-zinc deposit known as the Yellowjacket Zone. The Main Zone sheeted sulphide system is composed of banded massive and stringer arsenopyrite-pyrite-sphalerite-galena mineralization with appreciable content of gold and silver. The Main Zone has been traced on surface by geological mapping, prospecting, trenching and soil sampling for a strike length of over 3 km and traced by drilling for 1,500 meters in strike length and 800 meters down dip, generally dipping approximately 60 degrees to the northeast with an average true thickness of 2.5 metres, however, in places it reaches 15 metres in true thickness.
The silver-lead-zinc-rich Yellowjacket Zone is considered to be an Irish type carbonate replacement deposit composed of multiple parallel siliceous sphalerite-galena bearing zones. The individual mineralized zones making up the Yellowjacket Zone occur as lenticular bodies each up to 8 metres thick at the contact between alternating units of volcanic rocks and limestone. The Yellowjacket Zone sub parallels and is in the immediate hanging wall of the Main Zone, and has higher silver, lead, and zinc grades than the Main Zone.
Numerous exploration companies including several major mining companies have explored and advanced the J&L Property deposits since the Main Zone’s discovery in 1912, including Selco – BP Exploration Canada Limited, Pan American Minerals, Equinox Resources Ltd., Cheni Gold Mines Inc. and Huakan (then known as Merit Mining Ltd. (“Merit”)). At least 315 diamond drill holes have been completed on the J&L Property since 1983, totaling 41,076 metres of drilling. 3.1 km of underground workings are present on the J&L Property. The 1.4 km long 830 track drift (2.4m x 2.4mprofile) has exposed the Main Zone for approximately 800 metres in length. The 550-metre-long (5m x 5m profile) 832 trackless drift installed by Merit in 2008, connects to the track drift and can provide underground access to the 830 drift. Five cross-cuts totaling 1.15 km provided access to drill stations that were utilized to drill-define the deposits. Several raises have aided in the extraction of several bulk samples.
In late 2010, Merit completed a 60 hole, 7,897 metre underground diamond drill focused on the Main Zone with the objective of verifying historic drilling and sampling and infilling a 800 metre strike by 200 metre dip of the Main Zone on 30 metre drill centers. This program supported the first NI 43-101 Mineral Resource Estimate in September 2011 and a subsequent Preliminary Economic Assessment (the “PEA”) in May 2012. This was followed in 2012 by a 450-metre drifting and 45-hole, 9,725 metre underground drill program to expand the Mineral Resource Estimate of the Main Zone. The 2012 program was successful in more than doubling the Indicated Mineral resource tonnes of the Main Zone and for the first time produced an NI 43-101 Mineral Resource Estimate on the Yellowjacket Zone. An updated PEA was not completed to include the 2012 updated Mineral Resource. No physical work has been done on the J&L Property since then.
On March 14, 2018, Golden Dawn Minerals Inc. (“Golden Dawn”) filed a National Instrument 43-101 Technical Report on SEDAR entitled “Technical Report and Updated Mineral Resource Estimate on the J&L Property, Revelstoke, British Columbia, Canada” with an effective date of January 23, 2018 and authorized by Eugene Puritch, P.Eng, FEC, CET; Fred Brown, P.Geo.; Alfred Hayden, P.Eng.; Jarita Barry, P.Geo.; and Richard Routledge, P.Geo. (the “Prior Technical Report”). The Prior Technical Report contained an update of the Mineral Resource Estimate on J&L, which results are shown in the table below (the “Historical Estimate”). A qualified person has not, on behalf of Rokmaster, done sufficient work to classify the Historical Estimate as current mineral resources or mineral reserves, and Rokmaster is not treating the Historical Estimate as current mineral resources or mineral reserves. Rokmaster considers the Historical Estimate to be relevant, as they were reported by Golden Dawn on the basis of the recently prepared Prior Technical Report. To the best of Rokmaster’s knowledge and belief, there is no new material scientific or technical information that would make this disclosure of the Historical Estimate inaccurate or misleading.
|J&L HISTORICAL MINERAL RESOURCE
|Meas & Ind||4,115||5.67||751||54.2||7,172||1.9||3.47||8.65||1,144|
While preparing and publishing the above resource estimate, Huakan made the following cautionary statements:
- Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
- The following parameters were used to derive the NSR block model cut-off values used to define the Mineral Resource:
Dec 31, 2017 US$ two-year trailing avg. metal prices:
- Pb $0.95/lb, Zn $1.13/lb, Au $1,253/oz, Ag $17.08/oz
- Exchange rate of US$0.76 = CDN$1.00
- Process recoveries of Pb 74%, Zn 75%, Au 91%, Ag 80%
- Smelter payables of Pb 95%, Zn 85%, Au 96%, Ag 91%
- Refining charges of Au US$10/oz, Ag US$0.50/o
- Concentrate freight charges of C$65/t and Smelter treatment charge of US185/
- Mass pull of 5% and 8% concentrate moisture content
- NSR cut-off of CDN$110 per tonne was derived from $75/t mining, $25/t processing, $10/t G&A.
- AuEq= Au g/t + (Ag g/t x 0.011) + (Pb % x 0.422) + (Zn % x 0.455)
Underground bulk samples have been taken from the Main Zone to conduct metallurgical test work. The Main Zone is a complex polymetallic deposit high in arsenic concentrations which create a challenge in the production of saleable zinc and lead concentrates and the economic recovery of gold. Comprehensive metallurgical testing between the mid 1980’s and 2014 have considered various options and have produced a number of effective options for acceptable recoveries of gold, silver, zinc and lead by making 3 separate concentrates, including using heavy media separation. Based on the currently envisioned circuit and corresponding laboratory test response, the overall process recoveries for the Main Zone are expected to be approximately 93% Au, 70% Ag, 74% Pb, and 80% Zn. Limited metallurgical test work from drill core has been performed on the Yellowjacket Zone which appears to have less complex metallurgy than the Main Zone. The expected process recoveries for the Yellowjacket Zone are 94% Ag, 88% Pb, and 93% Zn.
Rokmaster believes that both the Main Zone and the Yellowjacket Zone have potential for expansions, remaining open in a number of directions. The Main Zone particularly has a tabular predictable geometry and grade distribution and is laterally extensive as defined by drilling to date. Its surface strike length has been established to be in excess of 3 km, of which only a portion has been drill-tested.
The grant of the Option to Rokmaster is subject to receipt of regulatory approval.
A finder’s fee, subject to regulatory approval may be paid to certain arm’s length parties.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101 and reviewed and approved by
Mark Rebagliati, P. Eng. Mr. Rebagliati is independent of Rokmaster.
On behalf of the Board of Directors of
ROKMASTER RESOURCES CORP.
John Mirko, President & Chief Executive Officer
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release may contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” ‘projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Information inferred from the interpretation of drilling results may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: the risk that Rokmaster and Huakan may not successfully negotiate a Definitive Agreement; risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company’s properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Rokmaster’s operations and other risks and uncertainties. Any forward-looking statement speaks only as of the date it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
SOURCE Rokmaster Resources Corp.