Mr. Michael Williams reports
VENDETTA REPORTS NEAR SURFACE HIGH GRADE RESULTS FROM PLANNED START UP PIT AREA AND ANNOUNCES A $1.5 MILLION FINANCING
Vendetta Mining Corp. has provided the first batch of drill results from the 2018 resource development program on the Pegmont lead-zinc project in Queensland, Australia, and has arranged a private placement of $1.5-million.
Zone 1 start-up pit highlights:
- PVRD176: 5.38 metres of 10.94 per cent Pb plus Zn (6.98 per cent Pb, 3.96 per cent Zn);
- PVD181: 5.98 metres of 11.29 per cent Pb plus Zn (7.21 per cent Pb, 4.09 per cent Zn);
- PVD182: 9.32 metres of 12.50 per cent Pb plus Zn (10.46 per cent Pb, 2.04 per cent Zn);
- PVD183: 5.80 metres of 16.35 per cent Pb plus Zn (10.17 per cent Pb, 6.18 per cent Zn);
- PVD184: 4.55 metres of 13.25 per cent Pb plus Zn (9.85 per cent Pb, 3.40 per cent Zn).
Zone 1 -- start-up pit drilling
The initial 2018 drill program included a total of 32 holes and one hole from 2017 was extended, for a total of 4,670 m.
An important component of that program included the drilling of 12 diamond holes in an area that is being considered as the initial site for open-pit development at Pegmont. This portion of the planned open pit was drilled predominately with reverse circulation (RC) drilling prior to 2008. Vendetta's diamond program was designed to verify grades, expand mineralization, confirm material types and obtain metallurgical samples. Vendetta also conducted a small RC program of five holes to try confirm geological interpretations outside of the mineral resource area.
Based on geological logging the mineralized intersections were classed as oxide, transition or sulphide, results are reported based on the logging classification. Metallurgical test work will now be performed on the intersections classed as transition or sulphide to verify the flotation performance of each hole in a variability metallurgical test program.
Peter Voulgaris, director and Pegmont project manager, commented: "As part of the advanced planning for the preliminary economic assessment (PEA) the company had been considering start-up pit locations suitable for in-pit tails disposal, the planned locations offer significant advantages to the project including a simplified permitting process, the capital savings of not needing to build a tails dam storage facility and limiting the projects footprint. While these drill results will not be incorporated into the PEA, they and the metallurgical results that will follow are a significant step in derisking the start-up period at Pegmont."
A series of holes was drilled to test both areas modelled as oxide and transition mineralization. In general, it has been possible to expand the transition mineralization in the area tested. Transition mineralization at Pegmont is defined as predominately sulphide lead-zinc mineralization in variably weathered, usually moderate to slightly weathered country rocks. Zone 1 transition mineralization was the subject of locked cycle flotation metallurgical test work in 2017 (see Vendetta news release, March 5, 2018), excellent recoveries having been obtained, equivalent to that of mineralization in unweathered rocks.
SUMMARY OF OPEN-PIT TARGET ZONE 1 TRANSITION ASSAY RESULTS
True Vertical depth Grade**
Borehole From (m) To (m) Interval (m) thickness* (m) below surface Pb+Zn % Pb % Zn % Ag g/t
PVD172 40.20 46.10 5.90 5.9 36.68 8.02 4.49 3.53 7.11
including 40.20 43.10 2.90 2.9 36.68 13.87 8.30 5.57 8.86
PVRD174 No significant result
PVRD175 31.63 39.13 7.50 5.2 21.18 7.53 3.61 3.92 6.63
including 33.36 39.13 5.77 2.1 29.85 8.86 4.40 4.46 7.08
PVRD176 41.32 47.70 6.38 6.3 41.09 9.65 6.19 3.46 11.20
including 41.32 46.70 5.38 5.3 41.09 10.94 6.98 3.96 12.55
PVR177 No significant result
PVR178 No significant result -- needs to be deepened
PVD181 41.32 47.30 7.98 5.1 32.05 9.06 5.81 3.25 9.24
including 41.32 47.30 5.98 3.3 32.05 11.29 7.21 4.09 11.47
PVD182 29.68 43.00 13.32 12.8 23.16 9.15 7.48 1.67 17.23
including 30.68 40.00 9.32 8.0 23.94 12.50 10.46 2.04 23.53
PVD183 16.80 24.85 8.05 6.4 16.70 7.69 5.05 2.64 9.53
including 19.45 23.87 4.42 3.8 19.34 12.68 8.80 3.88 16.45
and 29.65 37.20 7.55 5.5 29.48 10.52 7.55 5.87 9.95
including 30.40 36.20 5.80 4.2 30.22 16.35 10.17 6.18 17.42
PVD184 25.90 32.27 6.37 5.1 25.76 9.86 7.11 2.75 14.94
including 25.90 30.45 4.55 3.6 25.76 13.25 9.85 3.40 20.59
* True thickness is estimated using structural measurements and 3-D geological modelling.
** Drill intersections are summarized intersection lengths of less than 2.0 m, using a combined 1 per cent lead and
zinc grade with maximum one m internal dilution. Included intervals are at a combined 3 per cent Pb and Zn grade
with no internal dilution.Lead-zinc oxide mineralization at Pegmont is not included in the mineral resource as it is not considered economic to process using the planned sequential lead and zinc flotation flow sheet. Oxide drill intersections are given in the "Summary of open-pit target zone 1 oxide assay results" table for completeness, but they will not contribute to future updates of the mineral resource estimate. Characteristic of the oxide mineralization at Pegmont is the relative depletion of zinc compared with levels seen in adjacent transition mineralization.
SUMMARY OF OPEN-PIT TARGET ZONE 1 OXIDE ASSAY RESULTS
True Vertical depth Grade**
Borehole From (m) To (m) Interval (m) thickness* (m) below surface Pb+Zn % Pb % Zn % Ag g/t
PVD172 15.90 21.10 5.20 Fold nose 14.50 7.39 5.97 1.42 8.35
including 16.77 21.10 4.33 Fold nose 15.30 8.60 7.16 1.44 9.51
PVRD173 21.30 36.30 15.00 10.4 18.69 6.06 5.03 1.03 5.39
including 24.70 33.00 8.30 6.7 19.48 9.88 8.49 1.39 7.68
PVD179 6.33 14.94 8.61 7.7 4.88 4.28 3.25 1.03 5.95
including 6.33 10.94 4.61 4.1 4.88 6.71 5.44 1.27 8.99
PVD180 20.40 27.90 7.50 7.5 20.00 7.57 5.42 2.15 9.25
including 20.40 23.88 3.48 3.5 20.00 17.94 13.57 4.37 23.38
PVD183 5.10 8.85 3.75 3.7 5.07 8.14 7.28 0.85 12.46
including 5.10 8.10 3.00 2.9 5.07 9.69 8.90 0.79 15.00
PVR186 No significant result
PVR187 No significant result
PVR188 0.00 3.00 3.00 3.0 0.00 1.43 1.24 0.19 0.42
* True thickness is estimated using structural measurements and 3-D geological modelling.
** Drill intersections are summarized intersection lengths of less than 2.0 m, using a combined 1 per cent lead and
zinc grade with maximum one m internal dilution. Included intervals are at a combined 3 per cent Pb and Zn grade
with no internal dilution.More results from the 2018 program will be released as they are received and interpretations completed.
Private placement
The company plans to issue up to 8.4 million units at 18 cents per unit to raise gross proceeds of $1.5-million (subject to TSX Venture Exchange approval). Each unit will comprise one common share and one-half common share purchase warrant at an exercise price of 30 cents for a period of two years following the closing of the financing. The common share purchase warrants are subject to acceleration at the company's discretion in the event the company's common shares trade on a volume-weighted average price (VWAP) basis of 60 cents or more for a period of 10 consecutive trading days. All shares to be issued pursuant to the offering will be subject to a four-month hold period under applicable securities laws in Canada. All or a portion of this placement could be subject to finder's fees or commissions.
The net proceeds of the private placement will be used to advance the development of the Pegmont lead-zinc project and general working capital.
Michael Williams, Vendetta's president and chief executive officer, commented, "This financing will allow the company to complete the PEA, plan and execute the next phase of its Pegmont development program, while the company works toward concluding the option agreement."
About Pegmont
Pegmont is a stratiform, Broken Hill-type deposit that outcrops with an overall shallow dip to the southeast and is hosted in a magnetite-rich banded iron formation within high-grade metamorphic rocks. The project consists of three granted mining leases and one exploration permit that cover an area of approximately 8,290 hectares.
Pegmont is situated in the Mount Isa and McArthur mineral province, which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several world-class lead-zinc-silver mines.
Pegmont is located 25 km west of South 32's Cannington silver-lead-zinc operation, one of the world's largest producers of lead and silver and 28 km north of Chinova Resources' Osborne copper-gold operations. Pegmont is proximal to existing infrastructure including public roads, mine haul roads, rail and a natural gas pipeline for power generation.
About Vendetta Mining Corp.
Vendetta Mining is a Canadian junior exploration company focused on advanced stage exploration and development at the Pegmont lead-zinc project in Australia. Vendetta has an option to acquire a 100-per-cent interest by completing certain work requirements and making option and advance royalty payments. Additional information on the company can be found at its website.
Qualified person
Peter Voulgaris, MAIG, MAusIMM, a director of Vendetta, is a non-independent qualified person as defined by National Instrument 43-101. Mr. Voulgaris has reviewed the technical content of this press release, and consents to the information provided in the form and context in which it appears.
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