TSXV: CFI
TORONTO, May 12 /CNW/ - Canada Fluorspar Inc. (the "Company") is pleased to announce that as a result of a new 43-101 compliant technical report completed by Scott Wilson Roscoe Postle Associates Inc. dated effective April 30, 2009 that the indicated mineral resources at the Company's St. Lawrence property have increased by 57% over their July 2008 estimate. "This is a significant development for the St. Lawrence project", said Lindsay Gorrill, President & CEO of the Company, "and is another major step forward in the re-activation of the Fluorspar mines on the Burin Peninsula."
The company's drilling was completed on two separate identifiable vein resources, each of which have a potential to become separate mines:
1. Blue Beach Vein, containing approximately 4.4 million tonnes of
Indicated Mineral Resources at an average grade of 39.0% CaF(2). In
addition, Blue Beach North Vein contains approximately 355,000 tonnes
of inferred Mineral Resources at an average grade of 30.0% CaF(2)
2. Tarefare Vein (and the associated Blowout Vein). Containing
approximately 4.7 million tonnes of Indicated Mineral Resources at an
average grade of 44.8% CaF(2). In addition, the Blowout Vein contains
approximately 595,000 tonnes of Inferred Mineral Resources at an
average grade of 31.8% CaF2.
Using a cut-off grade of 20% CaF(2) and minimum horizontal thickness of two metres, the Mineral Resources of the St. Lawrence property total approximately 9.1 million tonnes of Indicated Mineral Resources at an average grade of 42.0% CaF2 and 950,000 tonnes of Inferred Mineral Resources at an average grade of 31.0% CaF(2).
By comparison, the July 2008 estimate included Measured and Indicated Mineral Resources of 5.8 million tonnes at 47.6% CaF(2), and Inferred Mineral Resources of 160,000 tonnes at 36.0% CaF(2), with cut-off grades ranging from 26.4% to 35.0% CaF(2).
See table below
Vein Category Tonnes % CaF(2)
-------------------------------------------------------------------------
Blue Beach North Indicated 4,390,000 39.0
Tarefare Indicated 4,700,000 44.8
Total Blue Beach
North, Tarefare and
Blowout Veins Total Indicated 9,090,000 42.0
Blue Beach North Inferred 355,000 30.0
Blowout Inferred 595,000 31.8
Total Blue Beach
North and Blowout
Veins Total Inferred 950,000 31.1
Notes:
1. CIM definitions were followed for the resource estimate.
2. Mineral Resources are estimated at a cut-off grade of 20% CaF(2) and
a minimum horizontal width of 2.0 m.
3. Average density of mineralized rock is 2.9 t/m(3).
4. Tonnage and average grade numbers are rounded.
5. Mineral Resources exclude mined out areas from historical mining.
The mineral resource estimate is based on 169 surface drill holes, of which 60 holes were drilled in 2008. For the block model resource estimation, Scott Wilson Roscoe Postle Associates Inc. created 3D wireframes of the veins, based on geological interpretation on section. A block model was generated by interpolating CaF(2) grades into blocks within or partly within the vein wireframes, using an inverse distance cubed algorithm with 2m downhole composites within each vein. Block dimensions were 10m by 10m by 2m for Blue Beach North and 15m by 10m by 2 m for Tarefare. Resources of the main Blue Beach North and Tarefare veins were classified on the basis of drill hole spacing: 75m or less for Indicated and greater than 75m for Inferred. All of the smaller subsidiary veins were classified as Inferred.
The qualified person (QP) for Scott Wilson Roscoe Postle Associates Inc. who supervised the preparation of this technical information and estimate was Hrayr Agnerian, M. Sc.(Applied), P. Geo.
For more information please see: www.canadafluorspar.com
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Cautionary Note Regarding Forward-Looking Information:
This news release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact, in particular comments relating to estimates of the indicated and inferred mineral resources on the Company's properties, expectations relating to the possibility of reopening the Company's fluorspar mine, the development of the Company's assets and expansion of the Company's business plan; the timing for the Company's production of fluorspar; the quantity of fluorspar the Company is able to produce, the demand for fluorspar and the expectations regarding the Company's positioning for sales. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct.
Results of the Company, including its ability to reopen its mine and produce fluorspar and achieve the expected timelines and sales expectations, may be affected by a variety of variables and risks associated with the mining and mineral processing industry, such as, loss of market, competition, ability to access sufficient debt and equity capital from internal and external sources, ability to expand in the marketplace, exploration and development plans and results, anticipated capital expenditures and financing thereof, timing of applications and approvals as well as risks and variables associated in general with the Company's industry. As such the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in such statements. The Company has, in part, relied on information provided to it by its potential customers, as well as reports and forecasts provided by third parties involved in the industry and by the Company's own assessment of the market for fluorspar in order to develop its forward-looking statements and there is no assurance that the assumptions, forecasts or information relied upon by the Company are correct, or will not be affected by events or circumstances beyond the control of the Company. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.