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Oceanus Resources Corp
Symbol C : OCN
Shares Issued 135,523,530
Close 2017-09-12 C$ 0.345
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Oceanus releases NI 43-101 El Tigre resource estimate

2017-09-13 11:29 ET - News Release

Mr. Glenn Jessome reports

OCEANUS REPORTS MINERAL RESOURCE ESTIMATE FOR THE EL TIGRE PROPERTY IN SONORA, MEXICO

Oceanus Resources Corp. has released an independent mineral resource estimate for the El Tigre property completed by P&E Mining Consultants Inc., which is detailed in the attached table. The El Tigre property, located in Sonora, Mexico, is owned and operated by Oceanus Resources, and includes the El Tigre, Fundadora and El Tigre tailings deposits.

Mineral resource estimate

The El Tigre mineral resource estimate includes extensions of the historical El Tigre and Seitz Kelly veins, as well as the mineralized breccia halo around the El Tigre vein. The Fundadora mineral resource estimate includes the Aquila, Fundadora, Protectora and Caleigh veins.

                                    EL TIGRE PROJECT MINERAL RESOURCE ESTIMATE                                                    
                                                                                      
Resource area                   Class       AuEq cut-off   Tonnes     Ag    Ag oz     Au   Au oz   AuEq   AuEq oz
                                                    (g/t)   (000s)  (g/t)   (000s)  (g/t)  (000s)  (g/t)    (000s)
    
El Tigre constrained pit    Indicated               0.20   25,170     15   11,906   0.51     416   0.69       559
                             Inferred               0.20    2,791     12    1,093   0.38      34   0.52        47
El Tigre underground        Indicated               1.50      207    156    1,041   0.46       3   2.33        16 
                             Inferred               1.50       11     82       29   1.27       0   2.26         1   
Fundadora constrained pit   Indicated               0.20      451    167    2,428   0.93      14   2.94        43 
                             Inferred               0.20    1,774    150    8,554   0.69      39   2.49       142  
Fundadora underground       Indicated               1.50       80    118      306   1.03       3   2.45         6  
                             Inferred               1.50    2,003    140    9,044   0.60      38   2.28       147  
Subtotal indicated                            0.20, 1.50   25,908     19   15,681   0.52     436   0.75       624  
Subtotal inferred                             0.20, 1.50    6,579     89   18,720   0.52     111   1.59       337 
El Tigre tailings           Indicated               0.37      939     78    2,345   0.27       8   1.21        37  
                             Inferred               0.37      101     79      254   0.27       1   1.22         4 
Total indicated                         0.20, 0.37, 1.50   26,847     21   18,026   0.51     444   0.77       661
Total inferred                          0.20, 0.37, 1.50    6,680     88   18,974   0.52     112   1.59       341

Glenn Jessome, president and chief executive officer of Oceanus, commented: "This NI 43-101 mineral resource estimate is an important milestone for Oceanus and further supports our belief that we have identified a new precious metals district in the Sierra Madre. Our technical team deserves to be commended for the excellent work they have completed in the past 16 months since we commenced exploring El Tigre. We are going to aggressively continue exploration work this fall and into the 2018 season."

El Tigre hard-rock mineral resource estimate

Information and data used for the El Tigre and Fundadora mineral resource estimate take into account a total of 140 drill holes and 752 underground chip samples available as of Sept. 1, 2017. Assay data available for the mineral resource estimate included silver and gold sample grades. Assay sample lengths within the El Tigre deposit average 1.24 metres. Approximately 40 per cent of the samples are 1.5 metres or longer in length, and assay sample lengths were therefore composited to 1.5 metres prior to estimation. Summary statistics, histograms and probability plots of the resulting composite data were examined for extreme values. In order to reduce the influence of high-grade outliers, all composite grades were capped to 10 g/t (grams per tonne) gold and 1,000 g/t silver prior to grade estimation. An additional range restriction of 50 metres was implemented for gold grades of one g/t or greater and for silver grades of 100 g/t or greater.

Assay sample lengths for the Fundadora deposits average 0.65 metre, and assay sample lengths were composited to one metre prior to estimation. In order to reduce the influence of high-grade outliers, all composite grades were capped to 12 g/t gold and 1,000 g/t silver prior to grade estimation. An additional range restriction of 100 metres was implemented for gold grades of 12 g/t or greater and for silver grades of 1,000 g/t or greater

A bulk density of 2.44 tonnes per cubic metre was applied to the mineral resource estimate, based on 947 measurements taken from drill hole core by Oceanus. A volume per cent model was used to accurately report the total mineral resource volumes. All grade blocks were estimated using inverse-distance-cubed linear weighting of the nearest four to 12 capped assay samples from two or more drill holes. Silver and gold grades were estimated separately, and a gold-equivalent value was calculated from the block estimated values. The reasonableness of the grade block estimates was checked by a visual comparison of block and assay grades on cross-section. In addition, summary statistics for the grade block estimates were calculated and compared with assay grades, and a nearest neighbour model was also estimated. No significant discrepancies were noted.

P&E considers that the quantity and quality of the drilling are sufficient to estimate a mineral resource for the El Tigre and Fundadora zones. Indicated mineral resources at El Tigre required two drill holes within 90 metres, equal to 50 per cent of the gold semi-variogram range for the breccia zone. Indicated mineral resources at Fundadora required two drill holes within 50 metres, equal to the gold average horizontal semi-variogram range. Mineral resources outside this threshold were classified as inferred.

The gold mineral resource estimate hosted in the El Tigre gold and silver deposit is related to a series of high-grade epithermal veins controlled by a north-south-trending structure cutting across the andesitic and rhyolitic tuffs of the Sierra Madre volcanic complex within a broad gold- and silver-mineralized prophylitic alternation zone. The veins dip steeply to the west and are typically one metre wide, however, locally can be up to five metres in width.

The veins, structures and mineralized zones outcrop on surface and have been traced for a distance of 5.3 kilometres along strike. Historical mining and exploration activities focused on a 1.5-kilometre portion of the southern end of the deposits, principally on the El Tigre, Seitz Kelly and Sooy veins. Four veins in the north (Aguilas, Escondida, Fundadora and Protectora) were explored with only limited amounts of production.

The statistical analysis, geological modelling and mineral resource estimate were prepared by Fred Brown, PGeo, and Eugene Puritch, PEng, FEC, CET, both with P&E Mining Consultants. Both are independent qualified persons as defined by National Instrument 43-101. Mineral resource modelling and grade estimation were carried out using a 3-D block model based on geostatistical applications using Gemcom software.

Modelling was conducted in Universal Transverse Mercator (UTM) co-ordinate space relative to the WGS 1984 and UTM Zone 12. A block size of five metres by five metres by five metres was used. The El Tigre mineral resource grade model utilized 140 drill holes that were completed from 1982 to 2017. Mr. Brown visited the property in June, 2016, and June, 2017, in order to verify and validate the historical drill hole data set and to verify the drilling of the recently completed 2016 and 2017 diamond drilling campaigns completed by Oceanus. Over the period of the last two years, P&E personnel were intimately involved in the verification, validation, drill hole collar surveying and QA/QC (quality assurance/quality control) analysis of the El Tigre drill hole database. The current drill hole database is deemed to be in good condition and suitable to use in continuing mineral resource estimates.

El Tigre tailings mineral resource estimate

Information and data used for the El Tigre tailings mineral resource estimate take into account a total of 53 hollow-stem auger drill holes completed across the tailings deposit. From the supplied survey, lithology and drilling data, a 3-D representation of the tailings deposit was constructed, delineating the surface and base of the deposit, as well as three internal subdivisions. Assay data available for the tailings mineral resource estimate included silver and gold sample grades. Assay sample lengths within the deposit average 1.61 metres. A total of 71 per cent of the samples are 1.5 metres in length, and assay sample lengths were therefore not composited prior to estimation. Summary statistics, histograms and probability plots of the assay data were examined for extreme values. In order to reduce the influence of high-grade outliers, all assay samples were capped to one g/t gold and 100 g/t silver prior to estimation. A range restriction of 40 metres was implemented for gold grades of 0.6 g/t or greater and for silver grades of 120 g/t or greater.

A bulk density of 1.6 tonnes per cubic metre was applied for the El Tigre tailings mineral resource estimate. A volume per cent model was used to accurately report the total mineral resource estimate volume. All blocks in the tailings mineral resource were estimated using inverse-distance-squared linear weighting of the nearest four to 12 capped assay samples from two or more drill holes. Silver and gold grades were estimated separately, and a silver-equivalent value was calculated from the block estimates. The reasonableness of the grade block estimates was checked by a visual comparison of block and assay grades in section. In addition, summary statistics for the grade block estimates were calculated and compared with assay grades, and a nearest neighbour model was also estimated. No significant discrepancies were noted.

P&E considers that the quantity and quality of the drilling are sufficient to estimate a mineral resource estimate for the tailings deposit. Indicated mineral resources required two drill holes within 60 metres, equal to the horizontal silver semi-variogram range. Mineral resources outside this threshold were classified as inferred.

Potential for resource expansion

As a direct effect of the 2016/2017 El Tigre drilling program and completion of an updated geologic model, additional target zones for mineral resource expansion have been identified in undrilled areas or areas of limited drill hole testing. Shallow and deeper oxide targets have been identified adjacent to existing mineral resources that have good potential to expand the current inferred mineral resources. Along with targets to potentially expand the mineral resource, areas within the existing inferred mineral resource estimate that are defined by widely spaced drilling but with reasonable grades provide the company with potential to convert and grow the indicated portion of the oxide mineral resource estimate. P&E recommends further drilling to test these drill targets in order to expand the existing mineral resources and convert inferred mineral resources to indicated mineral resources.

El Tigre property

Gold was first discovered on the El Tigre property in 1896 at the Gold Hill area, and mining started with the Brown shaft in 1903. The focus soon changed to mining high-grade silver veins in the area with the majority of the production coming from the El Tigre vein. Historical underground mining on the El Tigre vein extended 1,450 metres along strike and mined on 14 levels to a depth of 450 metres. By the time the mine closed in 1938, it was reported to have produced a total of 353,000 ounces of gold and 67.4 million ounces of silver from 1.87 million tonnes.

Oceanus acquired the El Tigre property in November, 2015, and during the first half of 2016, Oceanus carried out an infill gap sampling program on the legacy diamond drill core. Oceanus disclosed the results from this work for 53 drill holes over a strike length of 1,675 metres, located between sections 4975N and 3300N. Complete assay results for the infill gap sampling program are included in appendices to press releases dated March 7, 2016, May 16, 2016, and June 28, 2016, and included 127 metres of 2.16 g/t gold equivalent consisting of 1.8 g/t gold and 27.5 g/t silver, which included 33 metres of 4.73 g/t gold equivalent consisting of 4.48 g/t gold and 18.5 g/t silver from hole ET-13-051.

Oceanus subsequently completed the 2016/2017 infill drilling program at El Tigre in May, 2017, having drilled a total of 62 diamond drill holes totalling 11,923.1 metres. Assay results from this drilling program are included in press releases dated Sept. 14, 2016, Oct. 18, 2016, Dec. 14, 2016, March 6, 2017, May 25, 2017, June 7, 2017, and June 29, 2017. These drill results demonstrated wide oxidized zones of precious metals mineralization at El Tigre that outcrop at surface. The purpose of this drill program was to support a National Instrument 43-101 mineral resource estimate for the El Tigre property.

Technical report

A National Instrument 43-101 (Standards of Disclosure for Mineral Projects) technical report documenting the updated mineral resource estimate will be filed on SEDAR within 45 days from the date of this news release.

Lab preparation, assay, quality assurance/quality control and data verification

The diamond drill core (HQ size) is geologically logged, photographed and marked for sampling. When the sample lengths are determined, the full core is sawn with a diamond blade core saw with one-half of the core being bagged and tagged for assay. The remaining portion is returned to the core trays for storage and/or for metallurgical testwork.

The sealed and tagged sample bags are transported to the ActLabs facility in Zacatecas, Mexico. ActLabs crushes the samples and prepares 200- to 300-gram pulp samples with 90 per cent passing Tyler 150 mesh (106 micrometres). The pulps are assayed for gold using a 50-gram charge by fire assay, and overlimits greater than 10 grams per tonne are reassayed using a gravimetric finish. Silver and multielement analysis is completed using total digestion. Overlimits greater than 100 grams per tonne silver are reassayed using a gravimetric finish.

Quality assurance and quality control procedures monitor the chain of custody of the samples and include the systematic insertion and monitoring of appropriate reference materials (certified standards, blanks and duplicates) into the sample strings. The results of the assaying of the QA/QC material included in each batch are tracked to ensure the integrity of the assay data. All results stated in this press release have passed the Oceanus QA/QC protocols.

Qualified persons

All mineral resource estimation was carried out or reviewed by Mr. Brown and Mr. Puritch, both an independent qualified persons as defined by National Instrument 43-101 by reason of education, affiliation with a professional association and past relevant work experience, and independent of Oceanus Resources. Mr. Puritch has reviewed and approved the scientific and technical contents of this press release.

David R. Duncan, PGeo, vice-president of exploration of the company, is the qualified person for Oceanus as defined under National Instrument 43-101. Mr. Duncan has reviewed and approved the scientific and technical information in this press release.

About Oceanus Resources Corp.

Oceanus Resources is a gold exploration company operating in Mexico. It is currently focusing on the El Tigre property in the Sierra Madre Occidental.

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