BonTerra Completes Positive 2015 Phase 1 Drill Program, Announces Results and Commences Expanded 2016 Drill Program of up to 25,000 Meters
Vancouver, BC – January 12, 2016: BonTerra Resources Inc. (TSX-V: BTR, US: BONXF) (the “Company” or “BonTerra”) is pleased to report that it has received final assay results from hole BA-15-03 and BA-15-04 of its 2015 Phase 1 Four Hole Exploration Program on its 100% owned West Arena Gold Property, within the Gladiator Gold Project located north of Val d’Or, Québec.
Nav Dhaliwal, President and CEO of BonTerra, stated: “The Phase 1 four-hole drill program was a tremendous success with not only the interception of several higher-grade gold vein intersections and the expansion of the mineralized zones along strike and depth, but more interestingly the identification of a large intrusive gold system. The encouraging drill results to date, combined with subsequent positive market reaction resulted in an over-subscribed financing in late 2015. We are now fully financed to continue our aggressive exploration with an expanded 2016 drill program scheduled to commence immediately.”
Dale Ginn, VP of Exploration of BonTerra also commented: “This newly discovered intrusive, possibly porphyritic gold system was identified by intercepts of up to 155 m in length and grading between 0.4 g/t and 0.9 g/t Au. These large greenstone belt vein/porphyry associations are recognized in many gold deposits in the Abitibi Belt and around the world. Typically, the higher-grade, minable concentrations are localized by fold structures and this association will figure prominently in future drill hole placement.”
All results from the 2015 Phase 1 Drill Program are tabled below:
*Width is expressed as core width, true width has not yet been determined.
Note: Please see sections depicting the geology and intersections at the Company’s website.
Hole BA-15-03, located approximately 75 meters to the west of drill hole BA-15-02, encountered a number and range of gold intersections. High grade was discovered in the FW Zone, and broad lower gold grades were intersected within a mineralized felsic porphyritic intrusive in the lower half of the hole. Hole BA-15-04, which intersected 1.3 m of 8.0 g/t Au, was located approximately 50 meters to the east of drill hole BA-15-01, and even though the hole was placed much higher in the system and above plunge, it hit the Main Zone with similar higher-grade mineralization as seen in BA-15-01 and BA-15-02.
Project Overview and Phase 1 Summary
The 2015 Phase 1 drill program targeted the plunge and strike extensions the Company’s newly discovered Gladiator Zone located on the Spartacus Trend within the West Arena Property. To date, the deposit has been drilled over a 500-meter strike length from surface and consists of a number of parallel, anastomosing and intersecting steeply dipping shear zones. The Phase 1 drill program, essentially a reconnaissance effort using drills, met and exceeded expectations by localizing impressive gold bearing veins and also confirming the presence of a massive intrusive body, possibly porphyritic, defined by intercepts of up to 155 m with gold values between approximately 0.4 g/t and 0.9 g/t.
In the Archean-age Abitibi greenstone belts well known current and historic gold deposits contain similar vein/intrusive/volcanic associations. The nearby Windfall Deposit, located about 13 km northwest of our recent drilling, has a strong shear vein/intrusive relationship. A Preliminary Evaluation Assessment issued in 2015 attributes the bulk of the inferred Windfall gold resource to a clear causal and spatial relationship between the gold-bearing quartz stockwork host rock and quartz rich dykes which are in turn derived from the intrusion of the large, thick Red Dog quartz monzonite dyke that seems to have played a major role in the genesis of the Windfall Deposit. Typically, such as in the nearby Barry Deposit, about 20 km west of BonTerra’s Phase 1 drilling, the gold “halo” is actually of lower grade than the intrusive grades identified in BonTerra’s recent drill results reported here. At Barry, the economic gold is confined to a structurally controlled +2 g/t mineralization envelope dominated by a local anticlinal fold axis. BonTerra’s 2016 drill program will factor these structural considerations when planning drill hole locations.
The Spartacus Trend has been identified as a northeast trending shear zone primarily within mafic volcanic units that host local intrusions of syenite and gabbro. Gold mineralization is predominantly contained within quartz-carbonate veining and associated alteration related to shearing, faults, folds and other typical structural controls. The Main Zone is highly silicified and altered sheared contact between mafic volcanics and an altered and mineralized syenite, locally exhibiting quartz porphyritic textures. Smoky quartz veining also occurs locally both in the contact zones and the larger felsic intrusive syenite unit. These veins contain the bulk of the mineralization and free gold, as well as tourmaline and chlorite occupying fractures. A third upper or Footwall Zone occurs at the sheared contact between the mafic volcanics and a mafic intrusive sill or gabbro and displays similar mineralization and alteration as the Main Zone. Mineralization consists of minor (trace to 2%) pyrite, chalcopyrite and yellow sphalerite throughout, but mostly in and near the contacts with the quartz veining.
Within the West Arena Property, two additional parallel trends have been identified by geophysical signature and limited drilling, namely the Crixus to the north and the Gannicus to the south, each trend is separated by approximately 500 meters. The Coliseum Property is situated immediately to the west along strike from the Spartacus and Crixus trends. The Barry Deposit and open pit are located along strike immediately to the west of the Coliseum property.
2016 Exploration Program
Based on results from the 2015 Phase 1 Drill Program and the recent successful financing in late 2015, the 2016 Exploration and Drill Program has been expanded to consist of up to 25,000 meters with a minimum of two drill rigs to extend and expand the known Gladiator zones. The Company will also explore the known and newly-discovered mineralized trends along strike, which have been further defined and extended by a recently completed ground geophysical program. The Program will focus on expanding the Main Zone and expand mineralization into the new strike extensions recently generated by ground geophysics. The geophysical strike extensions have shown new identical signatures as the Main Zone’s approximately 5km along strike to the west into the Coliseum Property.
Dale Ginn, P.Geo. has approved the information contained in this release. Mr. Ginn is a Director and Vice President of Explorion for BonTerra and is a Qualified Person as defined by NI 43-101.
Drill core is split, with half sent for assay at ALS Canada Ltd. located in Val d’Or, Québec. The other half is secured and retained on site. A program of blank and standard insertion into the sample stream is also conducted. The samples are processed using fire assay with an aa finish, gravimetrics and screen metallics are performed on samples with assays of 10 g/t or higher.
BonTerra Resources Quick Facts:
- Currently drilling at its 100% owned Gladiator Gold Project to expand current gold resource.
- Located in the Abitibi Greenstone Belt in mining-friendly Québec.
- Using a 4 g/t cut-off grade, the project currently contains an inferred resource of 905,000 tonnes, grading 9.37 g/t for 273,000 ounces of gold. Of note, ~90% of the worlds operating mines have an average gold grade less than 8 g/t.
- ~51 million shares outstanding, ~$3.5 million in cash and debt free as at January 1, 2016.
ON BEHALF OF THE BOARD OF DIRECTORS,
Nav Dhaliwal, President & CEO
BonTerra Resources Inc.
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This press release contains "forward-looking information" that is based on BonTerra’’s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to BonTerra’s exploration and development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause BonTerra’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. BonTerra disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.