SMR Shine Minerals Corporation

TSX.V : SMR

 Drilling confirms high-grade mineralization from surface to >100m

KELOWNA, BC, July 8, 2019 /CNW/ - SHINE MINERALS CORP. (TSX.V:SMR) ("Shine" or the "Company")  is pleased to announce assay results from the seven hole (907m), drill program at its Watts Lake property (the "Property"), located in north-central Saskatchewan, Canada. This was the Company's first drill program and all seven holes targeted a 50m section of the historically drill defined Main Zone of the Bory's Lake mineralized complex, leaving 4.5km still to be tested by current drilling. Six holes hit wide zinc and silver mineralization, including high-grade intervals in multiple holes.  Of particular note, hole WL19-006 (line 050W) returned 30.5m of total composite mineralization, including intervals such as 11.44% Zn+Pb and 15.76g/t Ag over 6.0m. Importantly, the results confirm that mineralization shows continuity and extends from surface to a depth of >100m.

Borys Lake Mineralized Complex Highlights

• The Bory's Lake Conductive Corridor "BLCC" is a large, property-scale feature and has been traced over 14km in strike length. 
• High-grade mineralization has been historically drill tested in 5 discrete zones over a 4.5km trend within the BLCC, including the 975m strike-length Main Zone.
• Shine's first program has tested only a small part (50m strike length) of a single zone (Main Zone)
• Multiple parallel conductive corridors have been identified on the property that will require future drill testing
• Project is very close to highway and major infrastructure
• The Government of Saskatchewan announced 2019/20 Targeted Mineral Exploration Incentive program available to companies who undertake drilling for base metals and precious metals and diamonds in certain defined regions of the province.  The program offers a rebate of 25% of eligible direct drillings costs, up to $50,000 per company. Watts Lake is located within this defined region.

Next Phase of Drilling the 4.5km mineralized trend: The seven holes targeted a 50m section of the south part of the Borys Lake mineralized complex on the Main Zone, below surface Trench 4 (see News Release Nov 12, 2018). This area has seen limited historical drilling and although some historic core exists, no historical hole collar locations could be confirmed. Planning is already underway for the next phase of drilling, which will continue to extend along strike and depth for continuity and grade along the Bory's Lake trend.  

Ross McElroy, President, COO and Chief Geologist, said, "We are delighted by the strength of the zinc and silver assays from our maiden drill program at Watts Lake. We have wide intervals of mineralization in multiple holes and we have also confirmed that mineralization extends from surface to a depth of >100m and remains open. Plans for the next round of drilling include testing along strike and at further depth. Watts Lake has multiple parallel conductive corridors, including the 14km long Borys Lake Corridor, which hosts an impressive 4.5km mineralized trend outlined by historical drilling. Based on the level of results so far, we have a clear path forward and we are excited about the prospects of our next program."

Assay Highlights:
WL19-006 (line 050W) returned 30.5m of total composite mineralization over a 45.0m section. Key intervals include:

• 13.5m @ 7.83% Zn+Pb and 13.23g/t Ag (24.5m to 38.0m), including
• • 6.0m @ 11.44% Zn+Pb and 15.76g/t Ag (24.5m to 30.5m)
  • 2.5m @ 8.51% Zn+Pb and 16.28g/t Ag (35.5m to 38.0m)

WL19-005 (line 050W) returned 28.0m of total composite mineralization over a 31.0m section. Key intervals include:

• 27.0m @ 4.84% Zn+Pb and 11.78g/t Ag (16.0m to 43.0m), including
• • 3.0m @ 9.71% Zn+Pb and 24.53g/t Ag (16.5m to 19.5m)
  • 4.5m @ 7.84% Zn+Pb and 14.92g/t Ag (23.0m to 27.5m)
  • 1.0m @ 6.16% Zn+Pb and 10.05g/t Ag (38.5m to 39.5m)

WL19-002 (line 00E) returned 23.5m of total composite mineralization over a 25.5m section. Key intervals include:

• 8.0m @ 3.67% Zn+Pb and 15.21g/t Ag (79.5m to 87.5m), including
• • 3.0m @ 5.99% Zn+Pb and 14.02g/t Ag (84.0m to 87.0m)
• 14.0m @ 4.76% Zn and 10.04gt Ag (90.5m to 104.5m)
• • 3.5m @ 6.17% Zn+Pb and 13.34g/t Ag (92.0m to 95.5m)
  • 3.5m @ 8.80% Zn+Pb and 18.74g/t Ag (97.0m to 100.5m)

Samples from the drill core are split in half sections on site. Where possible, samples are standardized at 0.5m down-hole intervals. One-half of the split sample is sent to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) in Saskatoon, SK for analysis, while the other half remains on site for reference. All drill core samples are analyzed using the ICP3 35 element base metal exploration package. Mineralized samples are also analyzed using the base metal assay (wt%) and Gold, Platinum and Palladium by fire assay and ICP OES finish (ppb) packages. Platinum and Palladium results are still outstanding.  All depths reported of core interval measurements including sample and interval widths are down-hole and are not always representative of true thickness.

Further Drilling Details

Table 1:  Watts Lake Project:  DDH Mineralized Interval Composites

Further Drilling Details

Bory's Lake mineralization is defined as a mineralized envelope where zinc grade is >1% Zn.  Higher grade intervals within the mineralized envelope have been broken out where overall grades are generally >5% Zn. 

Mineralization within the Main Zone generally has the following characteristics:

• Visually defined by intermittent Galena + Sphalerite + Chalcopyrite
• Zinc, lead and silver occur together.  Higher grade zinc values generally have associated higher grades of lead and silver
• Historically, the zinc to lead ratio has been reported at approximately 10:1.  Current drilling confirms this.
• Gold is often present, with occasional high values up to 16.1 g/t Au but grades are generally fairly low and highly anomalous values are sporadic.  Copper like-wise is anomalous but low grade.

WL19-001 was an angled drill hole (azimuth / dip of 150º / -50º, respectively) drilled on Section line 000E targeting the Borys Lake Main Zone No.1 lens in the vicinity of historic Trench #4, ~30m at depth.  Bedrock was intersected at a depth of 9m down hole and consisted primarily of a weakly to unaltered upper hornblende-biotite-chlorite gneiss and a lower quartz-feldspar gneiss. A hydrothermally altered biotite schist was cored from 23.4m to 65.7m down hole which hosted intermittent disseminated to banded, veinlet and net textured galena, sphalerite, pyrrhotite and pyrite mineralization.  Assay results in mineralization included peaks up to 13.9% Zn and 43.3 g/t Ag and 12.3 g/t Au. The drill hole was terminated at a final depth of 80m in fresh quartz-feldspar gneiss with no significant sulphide mineralization.

WL19-002 was an angled drill hole (azimuth / dip of 140º / -55º, respectively) drilled on Section line 000E targeting the Borys Lake Main Zone No.1 lens approximately 60m below the surface and 40m down-dip of WL19-001.  Bedrock was intersected at a depth of 8m down hole and consisted of weakly to unaltered hornblende-biotite-chlorite gneiss, calc-silicate, metapyroxenite and quartz-feldspar gneiss. Several lenses of biotite schist were intersected throughout the drill hole, with a thick, hydrothermally altered interval occurring between 58.9m to 112.2m.  This main lens of biotite schist hosted intermittent disseminated, banded, veinlet and net textured galena, sphalerite, pyrrhotite and chalcopyrite mineralization. Assay results in mineralization included peaks up to 13.5% Zn and 50.6 g/t Ag and 16.6 g/t Au. The drill hole was terminated at a final depth of 149m in fresh metapyroxenite with no significant sulphide mineralization.

WL19-003 was angled drill hole (azimuth / dip of 140º / -62º, respectively) drilled on Section line 000E targeting the Borys Lake Main Zone No. 1 lens approximately 30m down-dip of WL19-002 at ~80m below surface. Bedrock was intersected at a depth of 6.5m down hole and consisted of intercalated hornblende-biotite-chlorite gneiss, calc-silicate, biotite schist and metapyroxenite.  An intermittently galena, sphalerite and chalcopyrite hosting, hydrothermally altered biotite schist was intersected from approximately 82m to 108m down hole.  Assay results in mineralization included peaks up to 17.3% Zn and 63.2 g/t Ag.  The drill hole was terminated at a final depth of 176m in fresh hornblende-biotite-chlorite gneiss.

WL19-004 was an angled drill hole (azimuth / dip of 140º / -72º, respectively) drilled on Section line 000E targeting the Borys Lake Main Zone No.1 lens approximately 25m down dip of WL19-003 at ~110m below surface.  Bedrock was intersected at a depth of 6.5m down hole and consisted of intercalated hornblende-biotite-chlorite gneiss, calc-silicate, biotite schist and metapyroxenite.  A thin, galena, sphalerite and chalcopyrite hosting, hydrothermally altered biotite schist was intersected from approximately 106m to 111m down hole. Assay results in mineralization included peaks up to 18.5% Zn and 22.9 g/t Ag.  The drill hole was terminated at a final depth of 176m in fresh hornblende-biotite-chlorite gneiss.

WL19-005 was an angled drill hole (azimuth / dip of 140º / -50º, respectively) drilled on Section line 050W targeting the Borys Lake Main Zone 50m grid west of WL19-001 and ~25m west of historic drill hole 16-72 (25.9m averaging 3.36% Zn and 0.27% Pb).  Bedrock was intersected at a depth of 8.1m down hole and consisted of intercalated hornblende-biotite-chlorite gneiss and biotite schist. Visible galena, sphalerite and chalcopyrite mineralization was intermittently hosted in a hydrothermally altered biotite schist intersected from 16m to 48m down hole. Assay results in mineralization included peaks up to 12.3% Zn and 71.5 g/t Ag and 1 g/t Au.    The drill hole was terminated at a final depth of 71m in sheared quartz-feldspar gneiss.

WL19-006 was an angled drill hole (azimuth / dip of 140º / -72º, respectively) drilled on Section line 050W targeting the Borys Lake Main Zone 15m down dip of WL19-005.  Bedrock was intersected at a depth of 6.1m down hole and consisted of intercalated hornblende-biotite-chlorite gneiss and biotite schist. A broad zone of intermittent galena, sphalerite and chalcopyrite mineralization was intersected between approximately 25m to 68m down hole.  Assay results in mineralization included peaks up to 17.1% Zn and 35.2 g/t Ag.  The drill hole was terminated at a depth of 86m in fresh quartz feldspar gneiss.

WL19-007 was an angled drill hole ((azimuth / dip of 140º / -85º, respectively) drilled on Section line 050W targeting the Borys Lake Main Zone 15m down dip of WL19-006.  Bedrock was intersected at a depth of 5.1m down hole and consisted of calc-silicate, intercalated hornblende-biotite-chlorite gneiss and biotite schist, metapyroxenite and felsic gneisses. Intermittent weak sphalerite and galena mineralization was intersected in a hydrothermally altered biotite schist between 104m to 107m down hole.  Assay results in mineralization included peaks up to 0.7% Zn and 1.2 g/t Ag.The hole was terminated at a depth of 169m in strained quartz-feldspar gneiss.

About Watts Lake, including the Borys Lake Zone and Cominco Zone

Watts Lake is a large contiguous land package covering 13,248 hectares, in the established, deposit endowed La Ronge Domain, of Saskatchewan.  The project covers multiple, parallel basement conductive corridors, including the ~14km long Borys Lake Corridor, which hosts the historic Borys Lake lead-zinc deposit as well as numerous other mineralized occurrences. Watts Lake is located approximately 65 km north north-east of the town of La Ronge, SK and 20km northwest of the community of Missinipe, SK. The well-maintained gravel Provincial Highway 102 runs north from La Ronge, through Missinipe to Reindeer Lake and its closest point is approximately 12.5km east of the property. The Borys Lake deposit calculations are considered to be relevant, but are historical.  Historic documentation does not make reference to the estimate being an inferred mineral resource, indicated mineral resource nor measured mineral resource nor does it make reference to being a probable mineral reserve or proven mineral reserve as per NI 43-101 Standards of Disclosure for Mineral Projects.  The historic estimate is believed to be the most current available.  A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or current mineral reserves and Shine is not treating the historical estimate as current mineral resources or current mineral reserves.  Shine has not verified the calculations or the assay results supporting them, nor has Shine done the drilling and sampling necessary to verify the classification of the resource or reserve.

The property has been explored and developed sporadically since the mid 50's by several companies, most recently Claude Resources Inc. in the early 90's. Shine is compiling and verifying the considerable amount of historic work on the property. To date, the Company has located, surveyed and sampled 7 historic surface trenches, located several historic drill collars and has reviewed drill core as available. Historic drill hole and surface data is being compiled in a modern geological database. This allows for 3-Dimension spatial visualization to assist in modeling the historic deposit and the on-strike mineralized zones with the aim to understand the geometry, controls on mineralization and identifying areas of potential growth.

The Borys Lake trend follows a southwest-northeast orientation and is coincident with a ~14km long conductive trend as traced from a 2008 airborne versatile time-domain electromagnetic (VTEM) geophysical survey.  The Borys Lake trend includes five historic drill-confirmed mineralized zones (Can, Will A, Will B, Main and Mac) and numerous historic outcrop trenches over ~4.5km of strike. The historic resource estimate completed by Husky Oil Operations Ltd. in 1972, included only drill holes testing the Main zone, and to a depth of 30m.

The Cominco trend is located ~3km to the south along a parallel trend to Borys Lake.  The Cominco zones occur within a Greywacke-conglomerate and are underexplored compared to the Borys Lake zone.  Historically, two main areas of interest were discovered along this trend, referred to as the Cominco A and Cominco B zones respectively from SW to NE.  Overall, the Cominco trend appears to be more anomalous in Copper and silver and to a lesser degree in zinc and lead compared to the Borys Lake trend.

Qualified Person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ross McElroy, P.Geol., President and COO for Shine Minerals Corp., a qualified person.

About Shine Minerals Corp.

Shine Minerals Corp. is a Canadian based resource company specializing in the acquisition, exploration and development of mineral resource assets.  The company's primary asset is the Watts Lake project for which it has entered into an option agreement to acquire a 100% interest.  The company is headquartered in Kelowna, British Columbia.  Shine Minerals common shares are listed on the TSX Venture Exchange under the symbol "SMR".

ON BEHALF OF SHINE MINERALS

"Ross McElroy"                                                       

Ross McElroy, P. Geol., President and COO

Cautionary Statement:

Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to".  Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Shine Minerals which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

SOURCE Shine Minerals Corp