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VR Resources Ltd
Symbol VRR
Shares Issued 83,701,942
Close 2022-07-21 C$ 0.15
Recent Sedar Documents

VR Resources drills 243 m of 1% TREO at Hecla-Kilmer

2022-07-21 11:27 ET - News Release

Dr. Michael Gunning reports

VR INTERSECTS 243 M @ 1% TREO, INCLUDING 15 M @ 2.14%, TO DISCOVER THE BROADEST AND HIGHEST GRADE CRITICAL METAL MINERALIZATION TO DATE AT HECLA KILMER.

VR Resources Ltd. has drilled the broadest and strongest intersection to date of high-grade rare earth elements (REEs) and critical metals in hole 13 from its Hecla-Kilmer (H-K) property located in Northern Ontario.

  • 243 metres at 1.01 per cent TREO (total rare earth oxides), of which 19 per cent are PMREO*, within 290 metres at 0.91 per cent TREO starting at surface and continuous from top to bottom in hole HK22-013, and including:
    • 65 metres at 1.66 per cent TREO, starting at 155 metres, and including:
      • 39 metres at 2.01 per cent TREO starting at 155 metres;
      • 15 metres at 2.14 per cent TREO starting at 311 metres.
  • The 65-metre interval of 1.66 per cent TREO is made up of 24 per cent PMREO;
  • The 15-metre interval with 2.14 per cent TREO contains 15.71 per cent P2O5 (phosphorus pentoxide).

*PMREO: Sum of the high-value rare earth oxides praseodymium oxide (Pr2O3) plus neodymium oxide (Nd203) plus terbium oxide (Tb2O3) plus dysprosium oxide (Dy2O3) used in permanent magnets for wind turbines and electric vehicles. PMREO percentage is the PMREO sum divided by TREO, and expressed as a percentage.

Of importance toward the economic potential of this discovery:

  1. Depth: Mineralization comes to bedrock surface at the base of till (44 metres; overburden);
  2. Continuous mineralization in potassic alteration over the entire 287-metre vertical hole;
  3. Open to depth, with no geological limits such as vertical zonation in alteration or mineralization; similar mineralization spans more than 500 vertical metres between the top of drill hole 004 and the bottom of drill hole 002;
  4. Strike length potential exceeds 1,000 metres along the east-west structure which controls mineralization;
  5. Infrastructure: This drill hole is located 23 kilometres northwest of the active Ontario Northern Railroad, Provincial Highway 634 and provincial grid power at the Otter Rapids hydroelectricity facility.

Data are expected imminently for hole 14, and in the next two weeks for the remaining five holes.

Drill core photos show alteration and mineralization textures in core intervals with assays of greater than 2 per cent TREO. Protolith alkaline igneous rocks, including nepheline syenite porphyry dikes, are completely overprinted by potassic alteration dominated by hydrothermal biotite, magnetite and apatite. Critical metal mineralization is most commonly associated with sulphide-bearing fluorite-carbonate-apatite veins and carbonatite dikes (phoscorite and sovite), hosted in magnetite-biotite-amphibole-rich fenite. Based on the QEMSCAN analysis of the mineralization at surface in drill hole 004, the REEs are contained mainly in monazite, bastnaesite and apatite.

From VR's chief executive officer Dr. Michael Gunning: "This new intersection from top to bottom in hole 13 confirms the economic potential of the REE and critical metal discovery made by VR within the polymetallic, hydrothermal vein and breccia system at Hecla-Kilmer in 2020.

"What are the value metrics for a 291-metre intersection of rare earth elements. Firstly, the ratio of up to 24 per cent PMREO at Hecla-Kilmer is high. That is important. The light and heavy REEs neodymium, dysprosium, terbium and praseodymium are the most valuable because they are essential in the manufacturing of permanent magnets necessary for the electric vehicle and wind energy turbine industries. That demand-based value is amplified by scarcity; that is, PMREO's are absent in most REE deposits globally. As such, and based solely on the presence of these four heavy rare earth elements, the 290 metre REE intersection in hole 13 at Hecla-Kilmer has a value of $172 per kilogram using exchange and index prices of today, which on face value is comparable to 9.2 per cent copper, also at the current index price of today.

"Second. What about the niobium? The value analogue above for the 290-metre REE intersection in hole 13 does not include the 0.11 per cent grade in niobium. Further, drill holes 5 and 8 located to the west in the core of the gravity anomaly produced twice that grade over 299- and 120-metre intersections, respectively. The niobium price has risen fourfold in the past decade, to the $45/kg level, reflecting in part a demand related to its role as a superconductor to improve the performance of the aforementioned permanent magnets essential to the EV and wind turbine sectors. We will comment on the potential value-add of niobium to the REE discovery at H-K when we have data in hand for hole 17.

"Finally, how does hole 13 compare with the grade metrics for REE deposits globally? Firstly, all 10 of the top 10 REE deposits in the world are IOCG breccia systems and/or evolved hydrothermal breccia systems in carbonatite, akin to the IOA-affinity hydrothermal breccia system and host multiphase carbonatite complex at Hecla-Kilmer. In that sense, the intersection in hole 13 is in the same geological ballpark as most world-class REE mineral systems. Second, the 0.91 to 2.14 per cent range in TREO content in the various intervals within the 290-metre intersection in hole 13 is comparable to the range of 0.4 to 1.73 per cent TREO reported for the average resource grades of eight of the top 10 REE deposits globally. Further, the 1.01 per cent average TREO grade in hole 13 is maintained over 243 vertical metres and is open to depth, with no constraints to further depth extent such as vertical zonation in alteration or changes in mineralization.

"VR has now confirmed REE and critical metal intersections in eight of the 12 drill holes for which geochemical data have been received. Drilling is still at a very early stage at H-K, yet the 17 holes completed to date demonstrate the lateral and vertical breadth of the hydrothermal breccia and alteration system with critical metals. The economic potential of this discovery lies in the polymetallic nature of the intersections, the occurrence of the mineralization at surface and its proximity to infrastructure.

"This discovery contributes to the rapidly evolving critical metal strategies of governments across North America aimed at growing domestic EV and wind turbine sectors in order to sustain the growth of the green economy. This relevance underscores the potential value of H-K to our shareholders, and we look forward to providing further updates as we receive final data and commence exploration planning."

Background

Hecla-Kilmer is a large and multiphase alkaline intrusive complex with carbonatite. It is four to six km in size, Proterozoic in age and was emplaced along the western margin of the crustal-scale Kapuskasing structural zone which bisects the Archean Superior craton in Northern Ontario.

A shallow, six-hole diamond drill program was completed in 1970 as part of a regional base metal exploration program by Ashland Oil and Elgin Petroleum. One hole was abandoned, and a scant 854 metres were completed in total in the other five holes, all on magnetic highs in the outer concentric zones of the complex. There is no record of drill core sampling or geochemical data. Selco Exploration Company completed two drill holes in 1981 on peripheral magnetic highs as part of a regional diamond exploration program; it intersected altered ultrabasic rocks and black breccia in the outer, concentric zones of the multiphase complex at H-K. After this historical drilling, a regional-scale airborne magnetic survey was completed in 1993 for diamond exploration; it provided high-resolution data covering the H-K complex.

The opportunity for VR is to be the first company to apply modern IOCG (iron oxide/copper gold) and carbonatite mineral deposit models to explore the multiphase H-K complex and hydrothermal breccia system as a whole, and to use new exploration technologies not previously available when the historic drilling was done.

VR completed the first airborne electromagnetic survey over H-K in June, 2020, using the state-of-the-art VTEM+ system of Geotech Ltd. Flown at 100 m line spacing over a six by seven km survey block for a total of 450 line km, the data provide a high resolution of detail. The company also completed an independent, 3-D inversion of both magnetic and EM data, for improved modelling of the complex in three dimensions. A detailed, ground-based gravity survey covering an area of 1.5 by 3.5 km was completed in the winter season of 2021, with high-resolution data generated from 597 stations on an equant grid spacing of 100 m.

VR completed four drill holes for a total of 1,971 metres in October, 2020, targeting the northern MVI (magnetic inversion) anomaly at H-K. The company followed up that drilling in October, 2021, with the completion of five additional holes for a total of 2,604 metres, targeting the high-contrast, 3.5-milligal gravity anomaly that is co-spatial with, but slightly offset from, the MVI anomaly.

From the second drill hole onward, VR discovered a hydrothermal vein and breccia system extending from bedrock surface to 500 m depth and containing broad intersections from 50 to 299 metres long of critical metal mineralization throughout (REE plus Nb), and elevated copper and gold locally. The intersections of fluorite-carbonate veins and hydrothermal breccia are pervaded by carbonatite dikes of sovite and phoscorite composition. The mineralization occurs within high-temperature, sulphide-bearing, calc-potassic and potassic alteration dominated by assemblages of magnetite, biotite, amphibole and apatite which completely replace original alkaline host rocks such as ijolite and nepheline syenite, and a myriad of porphyry dike phases.

A state-of-the-art, ultrahigh-resolution drone magnetic survey was completed in the fall of 2021, and expanded in March of 2022, in order to: 1. cover the entire complex at H-K, and; 2. identify vectors for how best to follow up on the hydrothermal breccia intersections with critical metals and gold in the first two drill programs. The final survey is 3.4 by 4.5 km in size, comprising 121 lines at both 25 and 50 m line spacing for a total of 410 line km. The survey produces a very high resolution of data because of the tight line spacing, the low treetop flight altitude of just 30 metres above ground, and a computerized flight control paired with a new, very-high-sensitivity potassium-vapour magnetometer.

A third diamond drill program of eight additional holes totalling 2,751 m was completed in the spring of 2022. Broad intersections of critical metal mineralization are now confirmed in 11 of 17 holes completed to date, with data from five holes still pending. Alteration and mineralization extend from surface to more than 500 metres of vertical extent, related to a vertical hydrothermal vein and breccia system that is anchored to well-defined structures in the northwestern part of the multiphase complex at H-K.

Technical information

Summary technical and geological information for the company's various exploration properties is available at the company's website.

VR submitted all drill core samples for geochemical assay to the ALS Global Ltd. laboratory facilities in Timmins, Ont., with final geochemical analytical work done at the ALS laboratory located in North Vancouver, B.C., including lithium borate fusion, inductively coupled plasma mass spectrometry and inductively coupled plasma atomic emission spectroscopy analyses for base metals, trace elements and full-suite REE analysis, and gold determination by atomic absorption on fire assay. Analytical results are subject to industry-standard and National Instrument 43-101-compliant quality assurance/quality control sample procedures externally by the company and internally at the laboratory as described by ALS.

Technical information for this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101. Justin Daley, PGeo, exploration manager and chief geologist at VR and a non-independent qualified person, oversees and/or participates in all aspects of the company's mineral exploration projects, and the content of this news release has been reviewed on behalf of the company by the CEO Dr. Gunning, PGeo, a non-independent qualified person.

About the Hecla-Kilmer property

The Hecla-Kilmer complex is located 23 km northwest of the Ontario hydroelectric facility at Otter Rapids, the Ontario Northland Railway and the northern terminus of Highway 634 which links the region to the towns of Cochrane and Kapuskasing to the south, located on the northern Trans-Canada Highway.

The H-K property is large. It consists of 224 mineral claims in one contiguous block approximately six by seven km in size and covering 4,617 hectares. The property is owned 100 per cent by VR. There are no underlying annual lease payments on the property, nor are there any joint venture or back-in interests. There is an industry-standard royalty attached to the property, including a buyback provision in favour of VR.

Like the Ranoke property, H-K is located on provincial Crown land, with mineral rights administered by the Ontario Ministry of Northern Development, Mines, Natural Resources and Forestry (MNDM). There are no annual payments, but the MNDM requires certain annual exploration expenditures and reporting. The property falls within the traditional territories of the Moose Cree and Taykwa Tagamou First Nations.

About VR Resources Ltd.

VR is an established junior exploration company focused on greenfields opportunities in copper, gold and critical metals. VR is the continuance of four years of active exploration in Nevada by a Vancouver-based private company. The diverse experience and proven record of its board in early-stage exploration, discovery, and mergers and acquisitions is the foundation of VR. The company focuses on underexplored, large-footprint mineral systems in the western United States and Canada. VR owns its properties outright and evaluates new opportunities on a continuing basis, whether by staking or acquisition. The company continues its normal course of business in 2022 within the framework of modified exploration programs in response to the COVID-19 pandemic, with the goal of ensuring the health and safety of staff and project personnel.

We seek Safe Harbor.

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