GWR Provides Update - New Drilling Underway, Assays Pending
LAC LA HACHE, BRITISH COLUMBIA - GWR Resources Inc. (“GWR”) (TSX Venture: GWQ) is pleased to provide a progress update for the Lac La Hache Copper-Magnetite-Gold-Silver Project in central British Columbia.
GWR Resources Inc.’s Annual General Meeting held Aug 12 in 108 Mile, BC, was a success, with over 50 shareholders in attendance. The new Board was introduced, shareholder-approved and positive feedback was received regarding exploration progress, technical presentations, and core displays. A field trip Aug 13 to the Aurizon South SuperGold Zone and Spout
Magnetite-Copper-Gold-Silver Zones was attended by 25 people.
Spout Zones Resource Report
SRK Consulting (Canada) Inc.’s preliminary resource estimate for a portion of the Spout Lake Copper-Magnetite-Gold-Silver ore zones will soon be completed and a report is expected before the end of August, for review by GWR’s technical and advisory teams.
GWR recognizes the report has been delayed, but this is because additional testing was completed by G&T Metallurgical Service Limited in Kamloops, to improve results. These tests were completed Aug 3, 2010 and results were provided immediately to SRK.
The G&T magnetic separation tests were conducted using the Davis Tube on 100 core-pulp samples from the Spout North and South Zones, to determine recoverable magnetic content. The average magnetic fraction of the samples was 30 % by weight, and the average iron content of the concentrates was 55 % by weight iron. Note that average feeding size of the samples was 53 microns: a finer feed sizing is expected to produce higher grade concentrates. The 100 samples were carefully selected by GWR to span Fe assay values (Ecotech Labs, Kamloops) ranging from 4 to 66 per cent. The G&T tests show that a very high degree of correlation (R2=0.9765) between the Fe assay and the magnetite content supports estimate of magnetite grade using our extensive Fe assay database.
Summer/Fall 2011 Drilling Program
The Board-approved 15,000 meter drilling program commenced July 22 2011, under contract to Atlas Drilling. The focus of this Program is to extend the shallow, open-pitable ores (within upper 100-125 meters) laterally beyond currently drilled extents. This drilling is expected to significantly increase the footprint of the sub-horizontal Spout South Zone, thus increasing anticipated tonnage estimates provided in the pending SRK resource report. Our geological modelling also indicated strong potential to extend the upper, shallower portions of the sub-vertical Spout North Zone, to the southeast, and this has proven to be correct (see below).
To date 10 holes (~2000 meters) have been drilled. Descriptive core logging is ongoing. Drill cores for the first three holes have been sampled and sent via bonded carrier to Ecotech Labs for assay. Results are expected by month-end and will be reported following confirmation and interpretation by our technical staff.
DDH SL11-116 was drilled at -70 dip towards 040 degrees to test both South and North Zone styles of mineralization near the junction of the two zones. It successfully intersected the South Zone mineralization from 60 to 114 meters (all meterages stated here are down-hole), several copper-rich (chalcopyrite) veins between 114 to 243 meters, and deep North Zone mineralization from 302 to 369 meters. The latter included massive chalcopyrite and magnetite with traces of molybdenite and bornite from 360 to 365 meters. This exciting result has extended the North Zone by an additional 100 meters to the southeast (beyond both historical and the pending new SRK resource volumes), for a new, drill-confirmed strike length of 500 meters.
Drill holes SL11-117, 118, 119, 120, 131, 133, 134 and 135 were all drilled vertically as significant step-outs to intersect and extend the South Zone mineralization, guided by the proven reliable, ground magnetic patterns. Holes SL11-120 and 131 intersected the host alteration but with only narrow (2m) magnetite-copper mineralization, as predicted by the ground survey. All other holes, however, intersected moderate to strong mineralization over true widths up to 12 meters. Results confirm extension of the South Zone to the east and south, either at deeper elevations or thinning where the magnetic survey weakens.
DDH SL11-132 (-60 to 040 degrees) was drilled above SL11-116 and successfully cut the upper part of the North Zone, confirming the 500 m extension at shallower depths.
DDH SL11-134 represents the farthest departure from the core of the “Peanut” magnetic anomaly within the South Zone, collared 350 meters to the southeast. It intersected discontinuous disseminated chalcopyrite-magnetite mineralization from 138 to 177 meters, including stockwork veins containing magnetite, chalcopyrite, epidote and pink potassic alteration. The latter suggest porphyry style mineralization may be superposed on an earlier magnetite-copper event, and our technical team will investigate this encouraging possibility further. Again, these results lie outside historical and current resource estimate boundaries.
As previously reported, recent exploration success on our Lac La Hache, BC Skarn/Porphyry Property in 2010 and 2011 followed our strategic decision to test historical copper-magnetite-gold-silver located within the Spout Zones (www.gwrresources.com). These typically contain high copper, with 2-meter cut NQ core assays commonly returning grades better than 0.7 % and frequently exceeding 1 % Cu. Associated high magnetite generates iron assays ranging from 20% to 50% or more (see http://www.gwrresources.com/i/pdf/Spout_Lake_Assays.pdf). The magnetite itself provides significant value in addition to the copper, gold and silver.
Drilling to date within the magnetite-copper zones has focused entirely on the Spout Zones. However, new ground magnetic surveys in the Peach area located east of the Spout Zones have produced very positive high-magnetic targets indicative of similar magnetite-skarn potential over an area completely untested and with much larger magnetic anomalies. (see details in the Technical Presentation at http://www.gwrresources.com/s/Presentations.asp). GWR awaits approval from the BC government to proceed with exploration in this area, including bedrock sampling and drill testing of the Peach anomalies in the current summer/fall drilling program.
As previously reported (May 30, 2011 News Release) the Company has initiated several changes to management, administration, accountability, to reduce overhead costs and improve shareholder value. New President/CEO John van Driesum states he is “extremely pleased with the transformation that GWR has undergone in the past two months to ensure accountability and direction of corporate resources for shareholder benefit particularly through maximization of return from the current discovery and drilling program.”
R. Shives (VP Exploration) and D. Reimer remain as Directors, joined by new Directors John Brown (Chairman of the Board) and Gregory McKelvey (Technical Advisor). The Company has consolidated all office and field functions under one roof at Lac La Hache.
GWR is an active mineral exploration company currently exploring for gold and base metals on two properties within Canada. The Lac La Hache copper-gold porphyry/skarn project hosts multiple zones containing commercial grades of gold, copper, silver and magnetite. The project is located in British Columbia’s prolific Quesnel Trough between producing mines at Imperial Metals’ Mt. Polley Copper-Gold Mine and New Gold Inc.’s New Afton Copper Gold project (Teck-Cominco’s legendary Afton mine). The Lac La Hache project is well-served by rail, road and power infrastructure. The Sainte Sabine gold (+Ag, Zn, Cu) property is located within the Bellechasse Mineral Belt in southeastern Quebec, adjacent to known zones on Golden Hope Mines’ Bellechasse Project.
For further information, please contact:
John van Driesum, President/CEO
Telephone Number: 778 440 4472
Rob Shives, VP Exploration
Telephone Number: office 250-396-4978 / cell 613-882-1755
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