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New Nadina Explorations Ltd (2)
Symbol NNA
Shares Issued 15,054,433
Close 2019-07-15 C$ 0.065
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New Nadina releases NI 43-101 estimate for Silver Queen

2019-07-15 14:32 ET - News Release

Mr. John Jewitt reports


New Nadina Explorations Ltd. has completed its initial National Instrument 43-101 mineral resource estimate for the Silver Queen No. 3 vein located in north-central British Columbia 36 kilometres south of Houston. The property is located 30 km southwest of the former-producing Equity silver mine.

Underground mineral resource estimate at a $100/tonne net smelter return cut-off value is as follows:

  • Indicated: 815,000 tonnes 3.2 grams per tonne gold, 201 g/t silver, 0.3 per cent coppper, 1 per cent lead, 6.4 per cent zinc;
  • Inferred: 801,000 tonnes 2.5 g/t Au, 184 g/t Ag, 0.3 per cent Cu, 0.9 per cent Pb, 5.2 per cent Zn.

John Jewitt, director, president and chief executive officer of New Nadina, commented: "We are extremely pleased and encouraged by this initial mineral resource estimate. A follow-up summer 2019 drill program and late Q4 2019 preliminary economic assessment are planned. The No. 3 vein continuity from hole to hole as well as the grades encountered to date are very significant in terms of establishing a potentially extractable mineral resource."

The included table summarizes the sensitivity to the mineral resource estimate in the indicated and inferred mineral resource classifications at various NSR cut-off values. For the purpose of this press release, New Nadina is reporting the No. 3 vein underground mineral resource at the $100/tonne NSR cut-off value.

  1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues, although the company is not aware of any such issues.
  2. The inferred mineral resource in this estimate has a lower level of confidence than that applied to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of the inferred mineral resource could be upgraded to an indicated mineral resource with continued exploration.
  3. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum standards on mineral resources and reserves, definitions and guidelines prepared by the CIM standing committee on reserve definitions and adopted by CIM council.
  4. Grade capping on Ag and Zn was performed on 0.75 metre to 1.24 m length composites. Au, Cu and Pb required no capping. Inverse distance cubed was utilized for grade interpolation for Au and Ag while inverse distance squared was utilized for Cu, Pb and Zn. Grade blocks were interpreted within constraining mineralized domains and a three m long by one m wide by three m high block model.
  5. A bulk density of 3.56 tonnes per cubed metre was used for all tonnage calculations.
  6. Approximate U.S. dollar two-year trailing average metal prices as follows were used: Au $1,300 (U.S.) per ounce, Ag $17 (U.S.) per ounce, Cu $3 (U.S.) per pound, Pb $1.05 (U.S.) per pound and Zn $1.35 (U.S.) per pound, with an exchange rate of 77 U.S. cents per $1. The $100/tonne NSR cut-off grade value for the underground mineral resource costs of $70/t, with process costs of $20/t, and general and administrative expenses of $10/t. Process recoveries used were Au 79 per cent, Ag 80 per cent, Cu 81 per cent, Pb 75 per cent and Zn 94 per cent.

The mineralized No. 3 vein and three smaller associated veins, confirmed through mineral resource modelling, strike northwest to southeast and dip to the northeast at approximately 60 degrees. The average width of the veins is 0.9 m to 1.2 m with local increases up to about 4.6 m. In general the veins occupy northwest-striking fractures that cut the volcanics, the microdiorite, and the felsite porphyry and the basalt dikes. Widespread alteration on the property is present. The alteration is manifested in the development of numerous limonite and jarosite gossans, and appears to be the result of pervasive kaolinization-pyritization. It is thought that the alteration is greater than would normally be if associated with the emplacement of known vein systems. A deep and broad source of mineralizing solutions is suspected and a replacement-type sulphide body is suspected.

Several exploration programs have been carried out on the property since its initial discovery in 1912. The Bradina joint venture took the property into production during 1972-1973. In the late 1980s an extensive development and exploration project was conducted consisting of surface and underground diamond drilling, and lateral development on three levels.

New Nadina is focused on developing a potentially extractable mineral resource based on the drill results that have been obtained to date and the inclusion of an upcoming summer 2019 drill program. A preliminary economic assessment is planned for late calendar Q4 2019.

The mineral resource estimate was prepared by Eugene Puritch, PEng, FEC, CET, and Yungang Wu, PGeo, of P&E Mining Consultants Inc. of Brampton, Ont., independent qualified persons, as defined by NI 43-101.

An NI 43-101 technical report supporting this mineral resource estimate will be completed by P&E Mining Consultants and filed on SEDAR within 45 days of the date of this press release. Mr. Puritch and Mr. Wu have reviewed and approved the technical contents of this news release.

We seek Safe Harbor.

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