Seafield Resources Drills 152.6 m at 1.03 g/t Au including 12 m at 3.66 g/t Au at its Miraflores Deposit in the Quinchia District, Colombia
TORONTO, ONTARIO -- (Marketwire) -- 11/07/12 -- Seafield Resources Ltd. ("Seafield" or "the Company") (TSX VENTURE: SFF) is pleased to announce further results from the completed 4,697-metre diamond drill program at the Company's Miraflores Deposit ("the Deposit") in the Quinchia District, Department of Risaralda, Colombia. The Company's infill drilling program returned moderate to high-grade mineralization in significant intervals. Seafield plans to gain more confidence in the high-grade veins identified within the Deposit to further delineate its resource as it moves its project towards feasibility level.
Highlights:
-- Drill hole QM-DH-37 intersected 152.6 m at 1.03 g/t Au, including 12 m
of 3.66 g/t Au;
-- Drill hole QM-DH-36 intersected 65.8 m at 1.01 g/t Au, including 25.3 m
at 1.63 g/t Au and 14 m at 3.2 g/t Au and 141 m of 0.89 g/t Au,
including 4.35 m at 7.93 g/t Au;
-- QM-DH-37 was drilled from northeast of the Miraflores breccia pipe as
part of Seafield's infill drill program aimed at improving the
confidence in the Deposit's current resource. This drill hole confirms
that mineralization extends 50 metres northeast from what was
intersected in drill hole QM-DH-15 (0.8 g/t Au over 261.9 m, including
1.45 g/t over 43.1 m and 1.35 g/t over 41.7 m, press released on October
31, 2011);
-- QM-DH-36 was drilled from northeast border of the breccia pipe and
confirms the extension and continuity of mineralization intercepted 30 m
to the south of drill-hole QM-DH-13 (1.71 g/t Au over 17.4, 1.43 g/t
over 16.3 m and 0.83 g/t over 20.45 m, press released October 31, 2011);
-- To further delineate the resource as the project moves towards
feasibility level, an 8,000-metre drill program consisting of 1,500
metres of underground drilling and 6,500 metres of surface infill
drilling has recently been initiated.
Details:
Seafield's Miraflores Deposit is situated in the Company's 6,757-hectare, Quinchia Gold Project. Miraflores is a low sulphidation epithermal deposit located in Colombia's mineral-prolific Mid-Cauca gold belt. The Deposit's mineralization is characterized by a hydrothermal breccia pipe with free gold associated with cement materials (the matrix) and high-grade structures where gold is associated with zinc, lead, copper and iron. At surface, the breccia pipe has a drill-tested diameter of 250 metres by 280 metres. The breccia pipe widens and remains open at depth with a drill-tested vertical extent of 600 metres.
The Deposit currently hosts a NI 43-101 compliant Measured and Indicated resource of 77.8 million tonnes averaging 0.8 g/t Au for contained gold of 1.9 million ounces and an inferred resource of 5.5 million tonnes averaging 0.6 g/t Au for 103,043 ounces of contained gold. A 0.3 g/t Au cut-off grade was used for the estimate as reported in the Company's press release on January 31, 2012.
Miraflores presents robust economics as indicated in a Preliminary Economic Assessment ("PEA") on the Deposit that was completed by SRK Consulting in Denver on April 23, 2012. The indicated economics for the Deposit include a pre-tax IRR of 50%, an NPV (8%) of $249 million and a payback period of 1.8 years. SRK considers that portions of the Miraflores gold deposit are amenable to open pit mining, while other portions are amenable to underground mining methods. The proposed mine development in the PEA was prepared to best fit Seafield's corporate strategy focused on a medium sized operation that results in solid value accretion (as measured by NPV), moderate capital usage, and manageable environmental and social programs.
The Company cautions that the PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in more advanced studies. The PEA is based on a resource model that contains Measured, Indicated and Inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
The assays reported in this press release represents the results from three diamond drill holes, which accounts for 1,065 m of a total 4,697 m drilled since January 2012 (See Figure 1).
"We are excited to move in the next stages of bringing Miraflores towards feasibility level," commented Cesar Lopez, CEO of Seafield. "We have commenced our next phase of drilling, which will provide a consistent flow of news to our shareholders in the next few months and give us more information on the high-grade structures within the breccia pipe."
QM-DH-35, QM-DH-36 (See Figure 2) and QM-DH-37 (See Figure 3) were completed as part of Seafield's infill and breccia definition drilling program at Miraflores. The Company's completed 4,697-metre drill program was aimed at further verifying the geometry and continuity of the breccia pipe as well as the high-grade structures within it. All information from the completed drill program and the recently initiated 8,000 metres of drilling will be used to develop a more robust geological model for Miraflores' resource at feasibility level.
Table 1 below summarizes the results of diamond drill holes QM-DH-35, QM-DH-36 and QM-DH-37:
Table 1 - Drill Results:
From To Interval Au
Drill Hole (m) (m) (m) (g/t)
----------------------------------------------------------------------------
QM-DH-35 0 24.5 24.5 0.38
AND 60.4 87.5 27.1 0.66
AND 92.2 108.6 16.4 0.54
AND 118.5 144.8 26.3 0.56
AND 150.2 177 26.8 0.44
AND 191.6 207.6 16 0.35
AND 219.6 239.6 20 0.35
AND 265.6 275.6 10 0.39
QM-DH-36 22 163 141 0.89
Including 67.75 72.1 4.35 7.93
AND 173 238.8 65.8 1.01
Including 194.8 220.1 25.3 1.63
AND 244.8 265.1 20.3 0.71
AND 312.8 326.8 14 3.20
QM-DH-37 101 107 6 0.90
AND 180 193.85 13.85 0.35
AND 198.4 234.8 36.4 0.81
AND 238.8 391.4 152.6 1.03
Including 281.6 293.6 12 3.66
Including 341.6 351.2 9.6 1.54
Note: Only continual intervals of mineralization above 6 metres with a cut-
off grade of 0.2 g/t Au are reported. One sample reported gold over the
capping level of 20 g/t Au, Hole QM-DH-36 includes a sample of 24.76 g/t Au
over 2.00 m at an interval from 312.8 to 326.8 m.
QM-DH-35 was drilled from a collar within the breccia pipe and was drilled with azimuth 244 degrees, intersecting low-grade mineralization.
QM-DH-36 was drilled from the northeast contact of the breccia pipe with azimuth 241 degrees and confirmed the extension and continuity of mineralization intercepted 30 m to the south by hole QM-DH-13 (1.71 g/t Au over 17.4 m, 1.43 g/t over 16.3 m and 0.83 g/t over 20.45 m) press released October 31, 2011.
QM-DH-37 was drilled from north of the Miraflores breccia pipe with azimuth 234 degrees and confirms extension 50 m to the north of the mineralization intersected in drill hole QM-DH-15 (261.9 m at 0.8 g/t Au, including 1.45 g/t over 43.1 m and 1.35 g/t over 41.7 m) press released October 31, 2011.
To view Figures 1 - 3, please visit the following link: http://media3.marketwire.com/docs/SFF-1107-FIGS1-3.pdf.
Review by Qualified Person, Quality Control and Reports
Giovanny Ortiz, Vice President of Exploration for Seafield Resources Ltd., is a qualified person as defined by National Instrument 43-101 and prepared or reviewed the preparation of the scientific and technical information in this press release with respect to the assay results from the drilling program. Mr. Ortiz is a Fellow of the Australasian Institute of Mining and Metallurgy (Membership # 304612) a professional association and designation recognized by the Canadian regulatory authorities. Mr. Ortiz verified the data disclosed in this release, including the sampling, analytical and test data underlying the information contained in this release. Verification included a review and validation of the applicable assay databases and reviews of assay certificates.
The core samples were split by rock saw, and half of the core was sampled. Core samples were prepared by SGS laboratory in Medellin and were assayed at the SGS laboratory in Lima, Peru. Gold was analyzed by fire assay on a 30 gram sample with atomic adsorption spectrophotometer (AAS) finish. Samples above 5.0 g/t Au were repeated by fire assay on a 30 gram sample with gravimetric finish. Multi-elements were analyzed by inductively coupled plasma mass spectroscopy (ICP-MS) following multi-acid digestion. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.
For additional technical information on the Miraflores Deposit, please refer to the Company's technical report (the "Technical Report") entitled "Technical Report, Seafield Resources Ltd., Quinchia Project, Quinchia District, Republic Colombia" dated January 31, 2012, prepared by Scott E. Wilson, C.P.G., of Scott E. Wilson Consulting, Inc., available on SEDAR at www.sedar.com and on the Company website at www.sffresources.com.
About Seafield Resources Ltd.
Seafield Resources Ltd. (TSX VENTURE: SFF) is a mineral exploration company currently focused on advancing its Miraflores Gold Deposit towards feasibility level. Seafield's 6,757-hectare Quinchia Gold Project is located in the Department of Risaralda of Colombia. SRK Consulting Inc.'s (Denver) Preliminary Economic Assessment on the Miraflores Deposit indicates robust economics with a pre-tax internal rate of return of 50% and a pre-tax net present value (8%) of $249M (see corporate PEA presentation at http://bit.ly/MFeL7q). Miraflores currently has a NI 43-101 compliant Measured and Indicated resource estimate of 1,925,542 ounces gold at 0.8 g/t Au and an Inferred resource estimate of 103,043 ounces gold at 0.6 g/t Au. Additionally, the Company has a NI 43-101 compliant resource estimate for its Dosquebradas Deposit, also part of the Quinchia Gold Project, with an Inferred resource estimate totalling 920,772 ounces gold at 0.5 g/t Au. Seafield Resources Ltd. trades its shares on the Toronto Venture Exchange (TSX-V) under the symbol SFF and in the United States using CUSIP 81173R101. For more details on the Company, please visit www.sffresources.com.
Forward-Looking Statement
This news release includes certain "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward-looking statements.
Neither 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.
Contacts:
Seafield Resources Ltd.
David MacMillan
Investor Relations
(416) 361-3434 ext. 202
dmacmillan@sffresources.com
www.sffresources.com