Sun Metals Corp. (TSX-V: SUNM) is pleased to announce it has entered into a purchase agreement with Teck Resources Limited to acquire Teck’s 51% joint venture interest in the Lorraine copper-gold project. On satisfaction of the terms of the Agreement, Sun Metals will own 100% of the Lorraine project which is located just 40 kilometres north of the Company’s 100% owned Stardust project in northcentral B.C.
The Lorraine project is host to a precious metal enriched, porphyry copper system. Examples of deposits with this style of mineralization in British Columbia include Galore Creek, New Afton, and Mount Polley.
“Consolidating ownership of Lorraine gives shareholders 100% exposure to two high-quality copper-gold projects in a Tier 1 jurisdiction we know very well. Like the nearby Stardust project, Lorraine demonstrates high grades for its deposit type and shows excellent exploration potential. This acquisition gives shareholders full ownership of two quality copper-gold assets in British Columbia with proximity, creating a larger regional footprint and the potential for future operational advantages,” stated Steve Robertson, Sun Metals’ President and CEO.
Pursuant to the Agreement, Sun Metals will:
Closing is expected to take place in November 2020 and is subject to receipt of all required regulatory and third-party consents and satisfaction of customary closing conditions and documentation.
Lorraine Project Overview
The Upper Main, Lower Main and Bishop zones at Lorraine were the subject of a 2012, National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) resource estimate published by Lorraine Copper Corp. titled “Summary Report on the Lorraine-Jajay Property Omineca Mining Division, B.C.”1 with an effective date of December 16, 2015. In that report, Gary Giroux, P.Eng. a qualified person as defined under NI 43-101 provided the following estimate:
A qualified person as defined under NI 43-101 has not completed sufficient work to classify the above historical estimate as a current mineral resource. Sun Metals is not treating the historical estimate as a current mineral resource.
The property is underlain by the Hogem batholith within the Quesnel Trough. The Duckling Creek syenite occurs in the Lorraine area as a multiple-stage dyke swarms emplaced into the older Hogem calc-alkaline intrusive rocks and Takla volcanic rocks. Copper gold mineralization at Lorraine is associated with the Duckling Creek alkaline magmatism.
The mineralization at Lorraine is typical of alkalic porphyry copper systems characterized by:
Some of the highlight results from past drilling at the Lorraine property include:
Table 1: Significant Historic Drill Results1
Technical aspects of this news release have been reviewed, verified and approved by Ian Neill P.Geo., Vice President Exploration of Sun Metals, who is a qualified person as defined by NI 43-101.
An updated interactive corporate presentation is available on Sun Metals’ website at https://www.sunmetals.ca/investors/presentation/.
About Sun Metals
Sun Metals is advancing its 100% owned flagship, high-grade Stardust Project located in northcentral British Columbia, Canada. Stardust is a high-grade polymetallic Carbonate Replacement Deposit with a rich history. Sun Metals also now owns the Lorraine copper-gold project, and the OK copper-molybdenum project.
The Canyon Creek copper-gold skarn zone at Stardust was the subject of a 2018, NI 43-101 resource estimate published by the Company titled “Stardust Project NI 43-101 Technical Report Omineca Mining Division, British Columbia” with an effective date of January 8, 2018. In that report, GeoSim Services Inc. provided the following estimate. Stardust Project – Canyon Creek zone Mineral Resource Estimate3:
|RESOURCE CATEGORY||TONNES||COPPER %||ZINC %||GOLD G/T||SILVER G/T||% CU EQ3|
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We acknowledge the [financial] support of the Government of Canada.