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Genesis Metals Corp
Symbol C : GIS
Shares Issued 101,842,273
Close 2019-02-05 C$ 0.08
Recent Sedar Documents

Genesis Metals releases Chevrier resource estimate

2019-02-06 10:05 ET - News Release

Mr. Brian Groves reports

GENESIS ANNOUNCES NEW RESOURCE ESTIMATE FOR CHEVRIER; 423,000 OUNCES INDICATED AT 1.22 G/T GOLD AND 303,000 OUNCES INFERRED AT 1.27 G/T GOLD

Genesis Metals Corp. has released a new resource estimate for the 100-per-cent-owned Chevrier gold project located near Chibougamau, Que. This resource estimate is for both the Main zone and the East zone on the Chevrier project. The East zone is located approximately 10 kilometres northeast of the Main zone. Both zones are located within the Fancamp deformation corridor, a major structural break that appears to control the location of gold mineralization.

Highlights -- totals for each category:

  • 423,000 ounces of gold averaging 1.22 grams per tonne gold in the indicated resource category;
  • 303,000 ounces of gold averaging 1.27 grams per tonne gold in the inferred resource category.

Note: The mineral resource estimate is for a combined pit-constrained and underground scenario at a cut-off of 0.3 gram per tonne in pit and 0.95 gram per tonne underground.

Brian Groves, chief executive officer of Genesis, commented: "We are pleased with the results of this resource estimate as it represents a significant milestone in the history of Chevrier. Our drilling to date within the Main zone has been for confirmation purposes and this has allowed us to develop a robust model for gold mineralization. Recommendations arising from this estimate and input from our recently strengthened technical team will help us to explore the potential for expansion of the mineralized envelopes as well as other targets on the 130-square-kilometre property."

The estimate was completed by Marc Jutras, PEng, MASc, of Ginto Consulting Inc. and complies with National Instrument 43-101 and guidelines developed in 2014 by the Canadian Institute of Mining and Metallurgy (CIM). Mr. Jutras is a registered professional engineer in the provinces of British Columbia, Quebec and Newfoundland. Geological data were modelled for each of the Main zone and the East zone by Daniel Gaudreault, PEng, of Geologica Inc. Mr. Jutras and Mr. Gaudreault are qualified persons as defined by NI 43-101 and are independent of Genesis.

The mineral resource statement for each of the Main zone and the East zone are presented in an attached table, while assumptions used to derive the optimized pit shells and additional underground mining costs are presented in another attached table. The mineral resources are stated at various gold cut-offs in further attached tables for the indicated resources and for the inferred resources.

               MINERAL RESOURCE FOR THE MAIN ZONE AND EAST ZONE

      INDICATED RESOURCES (1) -- CHEVRIER PROJECT -- EFFECTIVE FEB. 4, 2019

Zone                                 Tonnes        Grade      Cut-off    Contained Au
                                                 (g/t Au)     (g/t Au)            (oz)

Main zone pit constrained         8,903,000         1.13          0.3         323,000
Main zone underground             1,890,000         1.64         0.95         100,000
Total Main zone                  10,793,000         1.22                      423,000

      INFERRED RESOURCES (1) -- CHEVRIER PROJECT -- EFFECTIVE FEB. 4, 2019

Zone                                 Tonnes        Grade      Cut-off    Contained Au
                                                 (g/t Au)     (g/t Au)            (oz)

Main zone pit constrained         1,684,000         1.12          0.3          61,000
Main zone underground             4,622,000         1.33         0.95         198,000
Total Main zone                   6,306,000         1.27                      259,000
East zone pit constrained           399,000         1.28          0.3          16,000
East zone underground               732,000         1.19         0.95          28,000
Total East zone                   1,131,000         1.22                       44,000

(1) Mineral resources are not mineral reserves and do not have demonstrated 
economic viability. There is no certainty that all or any part of the mineral 
resources estimated will be converted into mineral reserves. The estimate of 
mineral resources may be materially affected by environmental, permitting, 
legal, title, taxation, socio-political, marketing or other relevant issues. 
The CIM definitions were followed for the classification of indicated and 
inferred mineral resources. The quantity and grade of reported inferred 
mineral resources in this estimation are uncertain in nature, and there has 
been insufficient exploration to define these inferred mineral resources 
as an indicated mineral resource and it is uncertain if further exploration 
will result in upgrading them to an indicated mineral resource category. 

          PIT-CONSTRAINED AND 
        UNDERGROUND ASSUMPTIONS 
            (in U.S. dollars)

Price of gold                    $1,400
CAD:USD exchange rate              1.25
Open-pit mining cost (per ton)    $2.20
Processing cost (per ton)        $12.00
G&A cost (per ton)                $2.50
Mill recovery                       95%
Pit slope (degrees)                  50
Underground mining costs 
(per ton)                         $7.50

                INDICATED MINERAL RESOURCES -- CHEVRIER PROJECT 
                       -- SENSITIVITIES TO CUT-OFF GRADE
          
                          Cut-off grade          Tonnage      Average   Contained Au
                                (g/t Au)         (tonnes)    Au grade        (ounces)
                                                                 (g/t) 
                       
Pit constrained                     0.3        8,903,000         1.13        323,000
                                    0.4        7,684,000         1.26        311,000
                                    0.5        6,602,000         1.39        295,000
Underground                         0.9        2,133,000         1.56        107,000
                                   0.95        1,890,000         1.64        100,000
                                      1        1,682,000         1.72         93,000
Pit constrained   
plus underground         0.3 PC, 0.9 UG      110,360,000         1.21        430,000
                        0.3 PC, 0.95 UG       10,793,000         1.22        423,000
                         0.3 PC, 1.0 UG       10,585,000         1.22        416,000

                 INFERRED MINERAL RESOURCES -- CHEVRIER PROJECT 
                        -- SENSITIVITIES TO CUT-OFF GRADE
                       (includes Main zone and East zone)

                          Cut-off grade          Tonnage      Average   Contained Au
                                (g/t Au)         (tonnes)    Au grade        (ounces)
                                                                 (g/t)

Pit constrained                     0.3        2,083,000         1.15         77,000
                                    0.4        1,799,000         1.28         74,000
                                    0.5        1,605,000         1.38         71,000
Underground                         0.9        5,695,000         1.29        236,000
                                   0.95        5,354,000         1.31        226,000
                                      1        4,687,000         1.36        205,000
Pit constrained 
plus underground         0.3 PC, 0.9 UG        7,778,000         1.25        313,000
                        0.3 PC, 0.95 UG        7,438,000         1.27        303,000
                         0.3 PC, 1.0 UG        6,770,000         1.29        282,000

The resource estimate was prepared by utilizing Geotic and Vulcan software. Geotic was used to model five subzones of the Main zone and six subzones of the East zone. The models resulted in polygons defined by using a 0.3-gram-per-tonne-gold cut-off and geological controls to establish continuity of gold mineralization. Vulcan was employed for grade estimation, block modelling and pit optimization. Three-dimensional block modelling employed ordinary kriging and inverse distance squared for interpolation within the Main zone and inverse distance squared for interpolation within the East zone due to the smaller number of composite samples within the mineralized envelopes of the latter.

For the Main zone, the drill hole database comprises 205 holes with 56,718.7 metres of drilling. The mineral resource estimate is based on 163 drill holes intersecting the mineralized orebodies with 8,801 one-metre composites. The composites were capped with thresholds selected from the probability plots and a cutting statistics utility for each of the five subzones. Variograms were modelled to assess the gold grade continuity of each subzone. Gold grade estimates were calculated with ordinary kriging for four of the subzones, while inverse distance squared was utilized for the grade estimation of the other subzone. A rotated block model (X axis at an azimuth of 43 degrees) was discretized on five-metre-by-2.5-metre-by-5.0-metre (strike by across strike by vertical) blocks over the area of interest. The estimates were validated and classified based on the gold grade continuity and drill density for the indicated portion.

For the East zone, the drill hole database comprises 34 drill holes with 8,520.1 metres of drilling and 280 surface channel with 201.5 metres of sampling. The mineral resource estimate is based on 34 drill holes and 170 surface channels intersecting the orebodies with a total of 643 1.5-metre composites. The composites were capped for four of the six subzones. Variograms were carried out on all data to assess the general continuity of gold grades and to help in dimensioning the search ellipsoids. An inverse distance squared approach was selected for the gold grade interpolation of the six subzones. An orthogonal block model was discretized on 5.0-metre-by-2.5-metre-by-5.0-metre (strike by across strike by vertical) blocks over the area of interest. The estimates were validated and classified as inferred.

The resource estimates for the Main zone and the East zone are constrained within optimized Lerchs-Grossmann constrained pits calculated within Vulcan. Additionally, mineralized material below the optimized open-pit shells was considered as amenable to bulk underground mining. The company believes that the wider intervals of mineralization encountered in drilling at depth would support such a conceptual underground mining method. Relevant underground mining cost assumptions are based on current operating mines.

Quality assurance/quality control

The company maintains a rigorous quality assurance/quality control program with respect to the preparation, shipping, analysis and checking of all samples and data from the property. Quality control for field sampling and drill samples at the company's projects covers the complete chain of custody of samples, including sample handling procedures and analytical-related work, plus the insertion of standard and blank materials. The quality assurance/quality control program also includes data verification procedures. Actlabs in Ancaster, Ont., Canada (ISO 17025 certification), assayed all rock and core samples from the current field program using fire assay and atomic absorption finish for gold and gravimetric finish if gold grades exceeded five grams per tonne gold. Andre Liboiron, PGeo, exploration manager for the company and a qualified person as defined within NI 43-101 for the Chevrier project, has overseen the quality assurance/quality control program of the company.

An independent sampling of mineralized intercepts was carried out by Ginto Consulting and consisted of 22 samples in Main zone and 11 samples in East zone. Results have confirmed the presence and grade of gold mineralization within these intercepts.

Mr. Jutras, Mr. Gaudreault and Mr. Liboiron have reviewed the contents of this release and approve the information contained herein. The full report detailing the results of this resource estimate will be filed under the profile of the company on SEDAR within 45 days.

About Genesis Metals Corp.

The company is focused on advancing the Chevrier gold project located 35 kilometres southwest of Chibougamau, Que. The project is located along the Fancamp deformation zone, 15 kilometres northeast of the high-grade Monster Lake gold deposit and 15 kilometres northwest of the past-producing high-grade Joe Mann gold mine.

Genesis also owns 100 per cent of the 203-square-kilometre October gold project located in the southern Swayze greenstone belt in Benton township, Ontario. This project is located 35 kilometres northwest of Iamgold and Sumitomo Mining's Cote Lake deposit and 50 kilometres southeast of Goldcorp's Borden gold deposit.

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