Halifax, Nova Scotia (March 3, 2011) -- Silvore Fox Minerals Corp. (the "Corporation" or "Silvore Fox" -- TSX Venture -- "SFX") is pleased to report additional information on the Pick Lake deposit and the Winston Lake Property for which the Corporation has entered into a Letter of Intent with Orebot Inc., as disclosed in the Corporation's news release of February 8th, 2011.
Highlights of the Property and current terms of the Letter of Intent:
1. The developed portion of the Pick Lake Deposit has an historical reserve quote of 600,000 tonnes at 21.2% Zinc, 1% Copper, from Inmet Mining Corp in 1998 making this the highest grade zinc resource known in Ontario (see link to report below). This historical quote would require verification by modern NI 43-101 standards.
2. The size of the resource mined at Winston Lake (see table below), and the inferred measurements at Pick Lake, serve as potential indicators to the size of additional potential deposits that may exist in the Winston Lake belt. The Pick Lake deposit is a remobilized deposit within the Big Duck Lake volcanic belt.
3. Inmet discontinued production in 1998 due to depressed metals prices. Improved prices for Zinc, Copper, Silver and Gold since then, along with the existing infrastructure from Inmet Mining's past operations and the potential for discovery of additional deposits, combine to make this property an attractive prospect for the Corporation.
4. The letter of intent Silvore Fox has signed with Orebot, Inc. will allow the Corporation to earn 100% interest by paying Cdn$1.2 million in cash over a period of 48 months from the date of signing the Formal Agreement with Orebot, Inc. There will not be a net smelter royalty to Orebot, Inc.
Mr. Harold Cabrita, President of Silvore Fox Minerals Corp describes the company's interest in the Pick Lake deposit as follows: "We were attracted to this land package because of the high grade zinc deposits known to exist there and some compelling geological theories about the property." He went on to say, "Current price levels for base metals have experienced attractive increases since Inmet's Winston Lake Mine was shutdown, providing us with the economic incentive to re-evaluate this area and further explore its potential for additional high grade deposits."
The Corporation expects to announce its initial plans for the Winston Lake Property in April of 2011.
Geology and Background
The Winston Lake Property under consideration for option by Silvore Fox is contiguous with, but does not include, the former Winston Lake mine itself and proximal leases currently held by Inmet Mining Corp. who shut down operations there in 1998.
Of the valued holdings in the Winston Lake area, the Pick Lake deposit which the Corporation intends to option provides a unique exploration opportunity. Current interpretation is that the Pick Lake deposit is the product of large-scale sulphide remobilization after primary VMS deposition occurred in the Big Duck Lake volcanic belt. The Pick Lake deposit consists of several thin, continuous massive sulphide sheets, 100-400m in strike, with a down-plunge length of 1000m. The location, size and characteristics of the primary sulphide deposit(s) from which Pick Lake ore was derived are, as yet, unknown.
The greenstone belt including Pick Lake and Winston Lake deposits has been exposed to extensive hydrothermal activity and VMS style deposition. Current data indicates the hydrothermal activity is more pronounced in the Pick Lake area. Within the Pick Lake area, there remains significant untested potential for additional Zn-Cu-Ag-Au VMS style mineralization.
Amongst many undetermined trends relating/differentiating the Pick Lake deposit to/from the Winston Lake trend (see Map Figure WL-1) a key unresolved regional understanding centers on delineating the Pick Lake alteration trend versus the Winston Lake alteration trend. An exploration strategy focusing on this uncertainty will enhance potential for additional discoveries of mineralization in these alteration trends.
Map Figure WL-1
An important exploration aspect under review is locating the source for the Pick Lake mineralization and additional deposits within its proximity. Pick Lake, like many other remobilized VMS deposits, illustrates similar significant upgrading of precious metal content. As has been the case for other VMS deposits, the potential for additional precious metal credits at Pick Lake further promotes the location as an exploration target.
Detailed mapping conducted in the area indicates reasonable continuity of favourable VMS style stratigraphy at Winston Lake and at Pick Lake. Exhalative style sedimentary packages and associated favourable VMS style alteration extend for a minimum of 800 meters on surface at Pick Lake and a minimum of 1 km on the Winston Lake trend. Although both areas have been drilled from surface in local detail, there still remains untested potential.
Current resource estimates as calculated and compiled by Inmet Mining Corp. are tabled below. This listing compares tonnage and grade resource calculations between Winston Lake Mine (historical mine credits) and the existing Pick Lake deposit. It should be noted a portion of the Pick Lake Upper zone has been mined out. Production was discontinued in 1998 due to lower Zinc prices.
The below resource table is NON-COMPLIANT by National Instrument 43-101, and additional work is therefore required to properly quantify a probable resource category under the current guidelines. The information contained in the table was supplied to the Corporation by Orebot, Inc. Orebot, Inc. disclosed to the Corporation that the Corporation should not rely on this information and should perform its own verification during the due diligence period of the Letter of Intent. Further, the Deposit "Winston Lake" within the table refers to the Inmet Mining Corp "Winston Lake Mine". The Winston Lake resources stated within this table are not part of the Winston Lake Property that Silvore Fox intends to option.
It should be noted the resource estimates for the existing Pick Lake resource are encouraging as they represent the highest zinc grade deposit currently defined in Ontario.(http://www.mndm.gov.on.ca/mines/ogs/resgeol/rfe/documents/zinc.pdf)
Deposit Ore (all categories) Metal Grades Dilution
Million Tonnes Zn (%) Cu (%) Ag (g/t) Au (g/t) (%)
Winston Lake 3.1 15.9 1 30.3 1.02 20
(Inmet Mine-mined out)
Upper and Middle 0.26 * 11.21 0.77 31.5 0.65 30
Lower 1.2 15.9 0.86 38 0.46 25
Source: Inmet Mining Corp. 1997
*Note: Of this 0.26 million tonnes it is undetermined what percentage is remaining.
Although ore contacts at both deposits were reported to vary and undulate greatly along the hanging wall, published historical mine production listed ore dilution at 20 to 30%. Accordingly, estimated grades of metal listed above at both deposits are downgraded with 20 to 30% dilution at zero grade. Given historical production was achieved with a combination of conventional mechanical cut and fill plus various long hole methods, modernized bulk mining methods would likely improve and increase grade productivity on any future discoveries in the area with similar geological settings.
The economics of future deposits are enhanced by easy access to the area.
The Corporation will re-assess the Pick Lake deposit and intends to rejuvenate exploration in the Pick Lake - Winston Lake area. Untested viable ground in the Pick Lake area has potential to host additional hydrothermal Zinc - Copper deposits. Extensive hydrothermal alteration proximal to the Pick Lake deposit also indicates potential for additional Silver and Gold mineralization. These additional potential mineral economics provide additional cause for re-assessment of current data and further exploration of the area. There is potentially 600,000 tonnes at 21.2% Zinc and 1% Copper remaining at the old Pick Lake Mine, based on final figures provided to the Ontario government, but this requires further verification.
Mr. Dave Owens P.Geo, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release.
Grant of Options
Silvore Fox Minerals Corp. also announces that it has granted to an officer of the Corporation options to purchase a total of 100,000 Common Shares at an exercise price of $0.10 per share, which options will expire on February 29, 2016.
About Silvore Fox Minerals Corp.
Silvore Fox Minerals Corp. is a Bedford, Nova Scotia, Canada based public mineral exploration company with 100% mineral rights to the claims at Coxheath, Cape Breton Island, Nova Scotia (known as the 'Coxheath Deposit'). On November 17th, 2010, Silvore Fox entered into a Strategic Agreement with Beijing Donia Resources at the China International Mining Conference, 2010. Donia is the parent company of Sino Minerals Corp., which currently owns 40.27% of the Corporation. These strategic partnerships provide the Corporation with a strong platform for growth through mineral exploration expertise, funding and strategic acquisitions. SFX has an experienced management and geological team.
The Coxheath deposit model is believed to be analogous to Pacific Rim volcanogenic porphyry copper deposits. Alteration patterns in association with the regional geological setting further suggest a possible model linking the diorite-hosted porphyry-style mineralization at Coxheath and an epithermal system approximately 4km to the east.
President and CEO
Dr. Jingbin Wang
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (as that term is defined in the Policies of the TSX Venture Exchange) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This announcement contains forward-looking information and forward-looking statements (collectively "forward-looking information") under applicable securities laws, relating, but not limited to the Corporation's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'potential', 'plan', 'intend', 'estimate', 'may' 'likely' and 'will' or similar words suggesting future outcomes or other expectations including with respect to the signing of a Formal Agreement to option the Winston Lake area claims from Orebot, Inc., and any future exploration activity that could take place on those lands. Such forward-looking information is based on current expectations that involve a number of known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that could cause actual results to differ materially from any forward-looking information include, but are not limited to, the risks that the parties will not proceed with the transaction, the actual terms of the transaction will differ from those currently contemplated and the transaction will not be successfully completed for any reason, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, delays in the development of projects, uncertainties relating to the interpretation of the geology, and unanticipated operational or technical difficulties and other factors. Such forward-looking information is based on a number of assumptions, including but not limited to, the availability of skilled labour, availability of equipment, and future capital and operating costs. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information and accordingly, readers are cautioned not to place undue reliance on this forward-looking information. The Corporation does not assume the obligation to revise or update this forward-looking information after the date of this announcement or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Harry Cabrita, President & CEO
Telephone: (902) 832-1060
Facsimile: (902) 422-9208