Jan 20 2011
Huakan International Mining Inc. (TSX VENTURE:HK) announces results from the next eight holes of an underground drilling program on its 100% owned gold-silver-lead-zinc J&L property, located near Revelstoke, BC.
The initial drill program of 2,000 metres has been increased to 7,800 metres due to better than anticipated results and the Company's desire to aggressively advance the project towards pre-feasibility. The Company has completed 49 holes in 6,035 metres to date. The program is expected to be completed by early February 2011 and is aimed at verifying historic drilling and expanding limits of the known mineralization of the Main Zone so that a National Instrument 43-101 compliant resource estimate can be completed in the spring of 2011.
The J&L property is one of the largest undeveloped polymetallic deposits in British Columbia. The 2,325 hectare property hosts the significant precious metal and polymetallic Main Zone deposit. The Main Zone is a stratiform, structurally deformed massive sulphide deposit. Surface exploration has traced the Main Zone for 3 kilometres and historic drilling has identified the Main Zone for 1.4 kilometres in strike length and a down dip extent of 800 metres. The Main Zone averages 2.5 metres thick. The Main Zone is the focus of the current drill program.
The current drill program consistently intercepts Main Zone type mineralization of alternating bands of massive sulphide mineralization, stringer sulphide mineralization, and lesser mineralized sections hosted in phyllite and limestone. Results include 8.77 metres (true thickness estimated) grading 4.24 g/t Au, 78.38 g/t Ag, 2.79% Pb and 7.16% Zn, and 1.33 metres (true thickness estimated) grading 13.92 g/t Au, 94.42 g/t Ag, 3.05% Pb and 6.83% Zn.
To date, a high density drill pattern (approximately 30 metre drill centres) defines the Main Zone on longitudinal section over an area of 800 metres long by 200 metres down dip. The deposit is open along strike and both up dip and down dip. Hole MM10-11 was drilled in the same northwest cluster previously announced in NR11-1 and holes MM10-12, 14, 16 and 18 extend the Main Zone down dip over a longitudinal surface area of 120 metres by 50 metres. Holes MM10-13, 15 and 17 were drilled approximately 420 metres to the southeast and over a longitudinal surface area of 60 metres by 60 metres.
The results are in line with historic drilling on the Main Zone. For comparison, the Main Zone has an historic resource, which was prepared by Equinox Resources Ltd. in 1991 as "Proven and Probable Ore Reserves" of 1.7 million tonnes grading 7.38 g/t gold, 75.9 g/t silver, 2.64% lead and 4.43% zinc and an historic "Possible Ore Reserve" of 1.9 million tonnes grading 7.12 g/t gold, 85.5 g/t silver, 3.32% lead and 3.48% zinc. Huakan has not prepared nor confirmed this resource estimation and as it pre-dates National Instrument 43-101, it does not comply with NI 43-101 requirements for mineral resource estimation. Huakan does not treat these numbers as a current resource on the property and the resource should not be relied upon, but remains a historic figure. Mr. David Makepeace, P.Eng. prepared a NI 43-101 geological report for Merit (now Huakan) dated April 13, 2007. In Mr. Makepeace's report, the historic "Proven and Probable Ore Reserve" category would likely be equivalent to an "Indicated Mineral Resource" category and the historic "Possible Ore Reserve" category would likely be equivalent to an "Inferred Mineral Resource" category under the current CIM classification (CIM Definition Standards, 2004).
The current drill program is under the supervision of Paul Cowley, P.Geo., the Company's Qualified Person and VP Exploration. BQTW-sized core samples are cut in half and sent to Eco Tech Laboratory Ltd. (Stewart Group) in Kamloops, BC. Samples are assayed for gold by fire assay (50 gram charge) as well as assayed for silver, lead and zinc. The Company inserts standards, blanks and duplicate samples throughout the sample sequence as quality control checks.
Source: Huakan International Mining Inc.