Huakan Intersects 3.12m @ 99 g/t Ag, 4.8% Pb and 14.5% Zn in Yellowjacket Zone at J&L
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/06/12 -- Huakan International Mining Inc. (TSX VENTURE: HK) (the "Company") announces additional silver-lead-zinc mineralization intersected from the first 7 holes of its 2012 planned 40 hole, 8,000 metre underground diamond drill program that is in progress at its J&L precious and polymetallic (gold-silver-lead-zinc) project, located near Revelstoke, British Columbia. The aim of the drill program is to increase the indicated resource category for the Main Zone deposit. During the drilling of the Main Zone, some holes have also intersected Yellowjacket silver-lead-zinc mineralization, which is locally developed in the immediate hangingwall of the Main Zone.
Besides the Main Zone intercepts reported in NR 12-07 dated June 4, 2012, the first seven holes (DDH12-01 through DDH12-07) also encountered Yellowjacket silver-lead-zinc mineralization. The highlights of the Yellowjacket Zone intercepts are tabled below. These intercepts extend the limits of the Yellowjacket a further 200 metres southeast from the previously known Yellowjacket historic resource.
Table 1: Drilling Highlights of Yellowjacket Zone
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Hole ID From (m) To (m) Length (m) Ag (g/t) Pb (%) Zn (%)
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DDH12-01 103.81 105.50 1.69 92.0 3.40 13.50
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DDH12-01 115.86 117.46 1.60 98.0 4.90 8.80
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DDH12-02 116.41 117.5 1.09 52.2 3.07 16.91
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DDH12-02 129.16 132.28 3.12 99.4 4.75 14.51
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DDH12-03 93.68 95.19 1.51 51.7 1.88 13.79
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DDH12-03 103.89 105.92 2.03 75.9 3.91 14.53
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DDH12-04 120.83 121.92 1.09 59.9 3.28 4.66
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DDH12-05 131.94 134.28 2.34 31.3 1.20 10.44
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DDH12-06 103.91 105.93 2.02 106.7 2.90 10.57
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DDH12-06 143.35 146.4 3.05 43.3 2.75 9.40
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DDH12-06 158.05 159.09 1.04 78.3 3.05 3.29
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DDH12-07 179.78 181.05 1.27 119.0 7.90 7.70
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DDH12-07 197.2 200.45 3.25 100.0 5.50 2.60
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The Yellowjacket historic resource estimate was completed by Equinox Resources Ltd. in 1991. The historic 1991 "Probable Ore Reserve" category estimate was 693,000 tonnes grading 52.3 g/t silver, 2.45% lead and 7.06% zinc and the historic "Possible Ore Reserve" category estimate was 337,000 tonnes grading 53.1 g/t silver, 2.50% lead and 7.15% zinc. Huakan has not prepared nor confirmed this resource estimation and as it pre-dates National Instrument 43-101, it does not comply with NI 43-101 requirements for mineral resource estimation. Huakan does not treat these numbers as a current resource on the property and the resource should not be relied upon, but remains a historic figure. The Company had received a technical report titled "J & L Property Technical Report", dated April 13, 2007, authored by David K. Makepeace, P.Eng., independent Qualified Person, of Geospectrum Engineering. In that report, Mr. Makepeace stated, the historic "Proven and Probable Ore Reserve" category would likely be equivalent to an "Indicated Mineral Resource" category and the historic "Possible Ore Reserve" category would likely be equivalent to an "Inferred Mineral Resource" category under the current CIMM classification (CIM Definition Standards, 2004).
The Company will consider conducting an NI43-101 compliant resource estimate for the Yellowjacket Zone in the fall.
The 2012 diamond drill program is under the supervision of Paul Cowley, P.Geo., the Company's Qualified Person and VP Exploration. BQTW-sized core samples have been cut in half and sent to ALS Laboratory Group in Kamloops, BC. Samples are assayed for gold by fire assay (50 gram charge) as well as assayed for silver, lead and zinc. The Company inserted standards, blanks and duplicate samples throughout the sample sequence as quality control checks.
The Company also reports that it has SEDAR filed the technical report entitled "A Preliminary Economic Assessment Of The Main Zone, J&L Deposit, Revelstoke, B.C., Canada" (see NR 12-04 dated April 24, 2012). A link to the report will be provided through the Company's website shortly.
Paul Cowley, P.Geo., Vice President Exploration for the Company, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to statements concerning the J&L underground drill program. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.
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Contacts:
Huakan International Mining Inc.
Wilson Jin
President
(604) 694-2344
www.huakanmining.com