MARIFIL REPORTS SAN ROQUE DRILLING PRELIMINARY RESULTS
Vancouver, British Columbia (September 11, 2018) – Marifil Mines Limited (TSXV: MFM) (“Marifil” or the “Company“) announces that it has received preliminary assay results for its diamond core drilling program announced in the Company’s press release titled “Marifil Mines Successfully Completes San Roque Drilling Program”, dated June 28, 2018. The San Roque property (the “Property“) is located near the Atlantic coast in the Province of Rio Negro, Argentina. The Property is held by Minas San Roque S.A., which is jointly owned by Marifil’s wholly owned subsidiary Marifil Mines S.A. (51%) and NOVAGOLD RESOURCES Inc.’s (TSX: NG) wholly-owned subsidiary NovaGold Argentina Inc. (49%). Marifil is the project operator.
Four HQ-size core holes were drilled for a total of 846 meters. Table 1 shows location and main features of the four drill holes in both local coordinate datum: Gauss Kruger and Campo Inchauspe systems:
|HOLE I.D.||LOCATION (POSGAR, Zone 3)||BEARING||DIPPING||TOTAL DEPTH (m)|
|HOLE I.D.||LOCATION (C. Inchauspe, Zone 3)||BEARING||DIPPING||TOTAL DEPTH (m)|
The drill core assay results for gold and silver are shown in Table 2. Base metal assays are incomplete and will follow, with a drill hole location map, in a subsequent news release.
|Drill Hole||From||To||Interval||Au||Ag g/t||Au Eq.|
|I.D.||(m)||(m)||(m)||g/t *||g/t *||g/t**|
|*Calculated weighted average grades based on a cut-off of 1.5 m @ 0.30 g/t Au|
|**LME Prices||10-Sep-18||Price US$|
Drill holes MF-DDH 56 and MF-DDH 59 continued delineation of the Zone 34 gold zone as step-outs off of DDHMSR0034 (-60°), which was the last hole drilled on the Property in 2011. It intercepted 35 meters of 2.27 g/t Au with 42.6 g/t Ag, as announced in the Company’s press release titled “Marifil Reports Positive Drill Results From San Roque Project In Argentina”, dated February14, 2012. The true width of this cored mineralization is unknown. MF-DDH 56 is 50 meters from DDHMSR0034 along the structural strike of the mineralization, and MF-DDH 59 is 50 meters from DDHMSR0034 at a right angle to the strike of the mineralization positioned as a downward extension or down dip test. Both new holes have assay runs of correlative gold mineralization, which add significantly to the prospectiveness of Zone 34.
Drill hole MF-DDH 57 is a 600 meter exploratory step-out along a linear geophysical (induced potential (I.P.)) anomaly off of, or connecting to, Zone 33, a gold bearing base metal zone. This drilling discovered that the I.P. anomaly is caused by a pyrite rich rock formation of schist within the Precambrian age basement strata upon which the mineralized Jurassic age rhyolitic volcanic rocks sit. Pyrite is a metallic sulfide that reacts to induced electrical current and is of no economic value. Nonetheless, the first 50 meters of this hole crossing that geologic boundary intersected noteworthy zinc mineralization with some associated low gold values. A follow-up step back drill hole designed to intersect the volcanic rock sequence further above the basement is justified.
Drill hole MF-DDH 58 was drilled as a 50 meter step-off from DDHMSR0033, which was also drilled in 2011, and shows two intercepts with a weighted average of 93.9 meters at 0.80 g/t Au, 9.0 g/t Ag, 0.31 % Pb and 0.58% Zn, as also announced in the Company’s press release titled “Marifil Reports Positive Drill Results From San Roque Project In Argentina”, dated February14, 2012. Lead and zinc mineralization is seen in all 148 meters of the MF-DDH 58 drill cores, for which complete lead and zinc assays are pending. The hole shows an impressive intercept of 83 meters of a half gram per tonne gold. The mineralization in the Zone 33 area is open ended in several directions.
Down hole surveys were completed on all four holes, and all the drill cores have been geologically logged and geotechnical data has been obtained as well, including numerous specific gravity determinations. Five hundred eighty two core samples were sent and are being processed and assayed by Alex Stewart Argentina S.A. (ISO 9001:2015 certified) in Mendoza, Argentina.
There are now 112 holes totaling 16,683 meters drilled on the San Roque property. Every one of these drill holes intercepted mineralization, although some of the holes are well below the grade cut-off grade used in Table 1, indicating an extensive system of mineralization over several square kilometers. Mineralization is open in all directions and at depth. Equally important, mineralization frequently starts at surface and has been followed to the bottom of the deepest holes. San Roque is an advanced stage exploration property showing generally encouraging drilling results supporting a discovery of a large disseminated precious metal rich polymetallic deposit which may be amenable to low-cost bulk mining.
In addition, the Company announces that, subject to regulatory approval, it has arranged a non-brokered private placement financing (the “Financing”) of up to 10,000,000 units (each, a “Unit”) at a price of $0.10 per Unit for gross proceeds of up to $1,000,000. Each Unit consists of one common share of the Company (each, a “Share”) and one share purchase warrant (each, a “Warrant”). One Warrant entitles the holder thereof to purchase one additional Share of the Company at a price of $0.15 per Share for a period of two years from closing of the Financing. The Financing may be considered a related party transaction pursuant to applicable securities laws due to the fact that certain insiders of the Company may participate in the Financing.
All securities issued in connection with the Financing will be subject to a statutory hold period expiring four months and one day after closing of the Financing. Completion of the Financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange.
Quality Control – Quality Assurance
Marifil adheres to rigorous Quality Assurance – Quality Control (QA/QC) standards. The Company carried out very careful and systematic Quality Assurance/Quality Control program of the San Roque property drilling. Drill core samples were kept in a secure location at all times. Representative half core samples were collected and shipped in sealed tamper proof bags to Alex Stewart Argentina S.A. (ASL) (ISO 9001:2015 certified) in Mendoza, Argentina for assaying. All samples were analyzed under ASL code ALS 48 element four acid ICP-AAS (ME-MS61) followed for gold by either ALS Au 30 gram fire assays with AA finish(Au-AA23) or ALS Au 50 gram fire assay with gravimetric finish (ME-GRA22); and for silver by ALS Ag 50 gram fire assay with gravimetric finish (Ag-GRA22).
The following QA/QC protocols were adopted for San Roque drilling campaign: 1) Blank samples and Standards – Certified Reference Material (CRM’s) account for approximately 5% of core samples submitted to the laboratory, 2) QA/QC samples are spaced no more than twenty samples apart, 3) geologists instruct the lab to run clean rock through equipment immediately following samples containing visible native gold, and 4) the laboratory prepares coarse crush and fine pulverized duplicate samples and analyzes the duplicates.
An independent consulting geochemist has reviewed the Company’s control samples results and has reported: “This review of quality control results from the 2018 San Roque drilling program confirms that Marifil’s QC procedures mostly conform with best practices but some minor adjustments are required to make them fully compliant. QC results indicate that the assay results are generally within acceptable limits for accuracy and precision.” The Company has addressed those “minor adjustments” to be incorporated into the next drilling program, one of which involves submitting half the sawn core to be assayed instead of the quarter core procedure which it used.
The Qualified Person received certified assay reports directly from ASL, and is of the opinion that the results reported in this press release are reliable.
The scientific and technical information disclosed within this document has been prepared, reviewed and approved by Richard R. Walters, Executive Vice President, Exploration and a director of Marifil Mines Ltd. The data presented herein was reviewed as part of a Quality Assurance/Quality Control (QA/QC) program under the direction of Mr. Walters. Mr. Walters is a Qualified Person as defined in NI 43-101 Standards of Disclosure for Mineral Projects, and is the person under whose directions the San Roque, Argentina exploration program has been and is being carried out. Mr. Walters is a certified Professional Geologist by the American Institute of Professional Geologists (AIPG).
This press release has been reviewed and approved by Robert Abenante, CEO of Marifil.
ON BEHALF OF MARIFIL MINES LIMITED
Robert Abenante, President & CEO
For further information regarding Marifil Mines Limited, please refer to the Company’s filings available on SEDAR (http://www.sedar.com) or at Marifil’s Website (http://www.marifilmines.com).
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