Mr. Michael Williams reports
VENDETTA REPORTS FINAL RESULTS FROM 2018 PEGMONT LEAD-ZINC PROJECT PROGRAM WITH HIGH GRADE INTERSECTIONS IN NEW ZONE 3 STRUCTURE
Vendetta Mining Corp. has provided the last batch of drill results from the 2018 resource development program on the Pegmont lead-zinc project in Queensland.
New zone 3 structure pit highlights:
- PVRD170: 6.00 metres of 11.43 per cent lead plus zinc (8.50 per cent Pb and 2.93 per cent Zn);
- PVD194: 9.02 metres of 12.85 per cent Pb plus Zn (9.05 per cent Pb and 3.80 per cent Zn).
BHZ/Bridge zone highlights:
- PVD171: 5.30 metres of 9.05 per cent Pb plus Zn (6.60 per cent Pb and 2.46 per cent Zn);
- PVRD191: 4.33 metres of 11.97 per cent Pb plus Zn (9.73 per cent Pb and 2.24 per cent Zn).
Significant results from the last batches of samples from Vendetta's 2018 drilling program are summarized in the attached table.
Michael Williams, Vendetta's president and chief executive officer, commented: "The discovery of the new fold structure in the shadow of the planned open pit highlights the upside potential that remains at Pegmont. The corporate strategy to date has been to focus efforts on the development of mineral resources to support a 10-year mining inventory, we anticipate the PEA will demonstrate the economic potential of that. We will now start to broaden our approach to Pegmont, looking to identify and testing brownfield exploration targets, the recently completed mapping exercise is the first step towards that."
Zone 3 -- new fold structure drilling
Several holes were drilled to better scope the geometry of a structure discovered in late 2017 following an intersection in geotechnical hole PVRD154. It is interpreted that PVD154 drilled through the upper fold of a recumbent fold intersecting 15.92 m at 12.12 per cent Pb plus Zn (9.07 per cent Pb and 3.04 per cent Zn).
Holes PVRD168 and PVD193 were drilled approximately 60 m along strike to the northeast of PVRD154. PVRD168 deviated excessively in the RC precollar, the hole was abandoned. The target was later redrilled with PVD193, cored from surface to aid targeting, intersecting the upper fold at a low angle and the steep limb.
Holes PVRD169 and PVD170 were drilled 160 and 100 m respectively along strike the southwest of PVRD154. PVRD169 deviated excessively in the RC precollar and the hole was abandoned. Due to the deviation in PVRD169, the next hole PVRD170 was drilled in core from surface and intersected the upper, flat-laying limb of the new fold structure.
Having successfully scoped the geometry of this new fold a program of 15 holes for 4,400 m has been designed to bring this new structure into a resource, this drilling is planned as part of the next program.
Zones 2 and 3 -- Z fold drilling
The fold that separates zones 2 and 3 is a recumbent fold, called the Z fold. In the latter part of 2017 hole PVRD156 intersected 5.80 m of 10.31 per cent Pb plus Zn (7.36 per cent Pb and 3.03 per cent Zn) in the upper flat-dipping limb and 36.61 m of 12.99 per cent Pb plus Zn (9.48 per cent Pb and 3.51 per cent Zn) passing through the steeply dipping limb at an acute angle and through the lower fold. These intersections were the most northerly intersection in the Z fold.
A series of four holes was drilled to better define the geometry of the Z fold on this section. On one section PVD192 intersected the lower flat limb, PVD193 first intersected 15 m of the top fold subparallel to layering in the low-grade halo before intersecting the steeply dipping limb also subparallel to layering and PVD194 successfully intersected the top flat limb of the Z fold. PVRD190 deviated excessively and intersected an area modelled as being attenuated (stretched and low grade). Structural work on PVD195 is not complete however the hole may have intersected the steep limb of the Z fold.
BHZ and Bridge zone drilling
Two holes, PVRD165 and 166, were drilled on the southern end of BHZ to test for the extension to the Bridge zone outside of the mineral resource; both holes intersected BHZ mineralization as planned but did not intersect the host lithology at depth. The amphibolite dike was intersected about 30 m lower than projected, suggesting that a fold may have dropped the Bridge zone host beds down and that the holes should be deepened too investigate below the amphibolite dike.
PVRD164 drilled up dip of the Bridge zone. The hole intersected 3.3 m of barren host banded ironstone, with classic garnet selvages on both hangingwall and footwall. The intersection is about half the average thickness for the Bridge zone and implies that the up-dip connection back to zone 2 is an attenuated area.
PVD171 was a shallow cored hole, drilled to confirm transition material types at BHZ, in an area previously drilled with RC.
Exploration drilling
Two vertical RC holes were drilled to test for host bed extensions at the northern and southern end of the pit main. PVR189, drilled in the northeast of the main pit was investigating the presence of the host lithology between along strike from zone 3 toward a projected position of Bridge zone. The hole intersected two mineralized host units: one m at 2.17 per cent Pb plus Zn and one m at 3.64 per cent Pb plus Zn. This is an encouraging intersection and is not dissimilar to the results seen elsewhere in the attenuated host units between zone 2 and the Bridge zone. PVR185, drilled to the south of the main pit in zone 4, is now understood not to have drilled deep enough to intersect the host unit; deepening this hole will be considered in future programs. Both of these holes were subsequently developed for groundwater monitoring with the installation of gravel packed slotted PVC casing.
SUMMARY OF SIGNIFICANT ASSAY RESULTS
Depth
True below Grade#
Bore From To Int. thickness* surface Pb+Zn Pb Zn Ag
hole (m) (m) (m) (m) (m) (%) (%) (%) (g/t)
PVD171 (transition) 32.7 38 5.3 3.7 32.7 9.05 6.6 2.46 14
PVRD164 No significant result
PVRD165 82 85 3 3 66.9 8.25 4.75 3.51 8
PVRD166 44 46 2 1.9 36.3 5.46 1.93 3.53 5
PVRD191 251.1 255.43 4.33 4.2 219.2 11.97 9.73 2.24 34
Zone 3 -- new fold structure
PVD153 extension No significant result
PVD154 extension 298.6 300.65 2.05 1.8 276.1 4.58 2.08 2.5 8
PVRD168 Abandoned -- no significant result
PVRD169 No significant result
PVRD170 182 188 6 176.1 11.43 8.5 2.93 11
including 183 188 5 177.1 13.09 9.78 3.31 13
PVRD190 No significant result
PVD192 201.16 214.91 4.75 4.1 197.3 5.46 2.33 3.13 6
including 201.16 213.16 3 2.6 197.3 7.06 2.44 4.62 6
and 227.16 229.16 2 1.7 212.7 4.97 1.76 3.21 7
PVD193 262.14 267.14 5 3 261.2 5.72 5.26 0.46 11
including 263.14 266.14 3 1.8 262.2 7.48 6.95 0.54 15
and 278.93 280.93 2 1.1 277.9 4.51 4.23 0.28 10
and 282.93 284.93 2 1 281.8 5.66 5.11 0.56 10
PVD194 137.43 150.43 13 10.7 105.4 9.48 6.74 2.74 11
including 137.43 146.45 9.02 8.3 105.4 12.85 9.05 3.8 14
PVD195 205.36 207.4 2.04 -1 167.7 7.65 3.8 3.85 14
Exploration holes
PVR185 No significant result
PVR189 No significant result
* True thickness is estimated using structural measurements and three-dimensional geological modelling.
# Drill intersections are summarized intersection lengths greater than 2.0 m, using a combined 1 per
cent lead and zinc grade with maximum one m internal dilution. Intervals indicated as included are
at a combined 3-per-cent-lead-and-zinc grade with no internal dilution.Update on Pegmont option and prepaid royally agreements
The company would like to advise that it has made the final cash option payment totalling $1-million (Australian) to the vendor on the Nov. 6, 2018, in accordance with the terms of the option agreement.
The company has been granted an extension to the prepaid royalty agreement, the updated agreement terms are described below.
Extension terms
- The option is not exercised until the prepaid royalty and any additional payments, as defined below are made. In the event the prepaid royalty is paid between Nov. 1 and Nov. 30, 2018, the company will make an additional payment of $50,000 (Australian) and the company's credit against the future royalties will be reduced from $5.25-million (Australian) to $5-million (Australian).
- In the event the prepaid royalty is not paid by Nov. 30, 2018, the company will make a payment of $100,000 (Australian) on Dec. 31, 2018, and in doing so the vendor has been granted an extension to March 31, 2019.
- In the event the prepaid royalty is not paid by March 31, 2019, the company will pay an additional $300,000 (Australian) on April 1, 2019, and in doing do so the vendor has granted an extension to May 6, 2019.
- In the event the prepaid royalty is not paid by May 6, 2019, the company will pay an additional $350,000 (Australian) and the company's credit against the future royalty will be reduced from $5-million (Australian) to $4.5-million (Australian) and in doing do so the vendor has granted an extension to Nov. 6, 2019.
Applications for indicative approval for the transfer of the project to Vendetta from the Queensland Minister for Natural Resources, Mines and Energy are being prepared for lodging on Monday, Nov. 12, 2018.
Fieldwork complete
Fieldwork at Pegmont is now complete for 2018. A detailed mapping program has been completed and is currently being compiled. The company expects several exploration targets to be generated from this work.
Update on preliminary economic assessment (PEA)
The latest guidance provided to the company from the independent consultants is that the PEA will be complete in November.
Notes on drilling and assay quality assurance/quality control
The drilling involved holes either cored from surface PQ and HQ core sizes or with precollars drilled with reverse circulation (RC) 5.75-inch diameter face sampling bit to depth prior to casing and continuing the hole in HQ2 diamond core. Diamond core samples were taken on nominal one m lengths but varied to match geological contacts. Samples of the core are obtained using a diamond saw to half cut the core, retaining a half for a permanent core record.
Field duplicate samples were taken and blanks and commercially prepared certified reference materials (standards) were added into the sample sequence for every hole submitted. These were analyzed by the company and no issues were noted with analytical accuracy or precision.
Samples used for the results described herein were prepared and analyzed at ALS Laboratory Group in Townsville, Queensland. Analysis was undertaken using a four-acid digest and ICP (ALS method: ME-ICP61 for seven elements) with overlimit (greater than 10,000 parts per million lead and zinc and greater than 100 ppm silver) high-grade samples being read with an atomic absorption spectrometer (AAS) (ALS methods: Pb-OG62, Zn-OG62 and Ag-OG62).
All diamond core is orientated using digital core orientation systems, these data are incorporated into the 3-D interpretations. Assay intervals shown in the attached table are down hole intervals, and the true thickness noted are based on 3-D interpretations of the host lithology, structure and mineralization.
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-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 pipe line 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.
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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