Surge Provides An Update On Recent Gold Property Activity In BC And Reports On Additional Assay Results From Its Ontario Cobalt Exploration Program
Vancouver, BC – February 12, 2019 – Surge Exploration Inc. (the “Company” or “Surge”) (TSX‐V: SUR, OTCQB:SURJF, FRA: DJ5C)is pleased to provide an update on various corporate activity nearby its Mineral Mountain gold-copper properties in the Omineca Region of British Columbia, as well as, providing interim assay results from drill holes GB18-22 to GB18-30, drilled on its Glencore Bucke Cobalt Property (Cobalt, Ontario, Canada).
Omineca Region Update:
Prominent among early discoveries in British Columbia’s Omineca region were the nearby Lustdust/Stardust property (Sun Metals Corp. TSXV: SUNM) covering a large, coherent integrated porphyry-skarn, epithermal system; the Kwanika property (Serengeti Resources Inc./POSCO Daewoo TSXV: SIR) a promising advanced stage copper-gold project; the Lorraine property (Lorraine Copper Corp. TSXV: LLC) host to a large copper/gold NI 43-101 compliant resource. The tenures are located between the Kemess North project being developed by Centerra Gold Inc.’s (TSX: CG) subsidiary Aurico Metals and Centerra Gold’s current mining operation – the Mt Milligan mine.
On November 14, 2018, Sun Metals Corp. announced the intersection of 100 meters grading 4.99% Copper equivalent and with 3.03 grams per tonne (g/t) Gold, 2.51% Copper and 52.5 g/t Silver on the Stardust Property owned by Lorraine Copper Corp. and optioned by Sun Metals. On December 20, 2018, Sun Metals announced the completion of a non-brokered private placement of CAD$5,162,500 with the intention to use the proceeds to continue its exploration of the Stardust Property. As a part of this private placement, Teck Resources Limited (NYSE: TECK.B) invested a total of CAD$3,500,000 for a 13.8% equity stake in Sun Metals. More recently, and on February 4, 2019,Sun Metals announced an arrangement agreement with Lorraine Copper Corp. providing for the indirect merger of the companies.
On January 19, 2019, Centerra Gold Inc. announced that the Mount Milligan Mine (located 110 km from Mineral Mountain) produced 194,993 ounces of Gold and 47.1 million pounds of Copper during the calendar year of 2018, and gave guidance for 155,000 – 175,000 ounces of Gold and 65 million – 75 million pounds of Copper for the calendar year 2019. Centerra Gold has calculated that the Mount Milligan Mine has proven and probable reserves of 5.8 million ounces of Gold and 2.1 billion pounds of Copper and has estimated Mount Milligan to have a 22 year mine life.
The Honourable Bill Bennett, Surge director and three-time former BC Energy & Mines Minister comments “The Omineca Region of the Province has already generated several promising projects, and our approximate 200 km2land package is strategically situated to exploit the high copper-gold values of the region. BC is a mining-friendly jurisdiction with reasonable processes, good infrastructure and potential First Nation partners.”
About Surge’s Mineral Mountain Property
Surge Exploration’s Omineca Group of 9 claim blocks (see map) lie in the Omineca Mining Division of north-central British Columbia, approximately 150 km north of Fort St. James. The claims are not subject to any royalty terms, back-in rights, payments or any other agreements and encumbrances.
Management plans to prepare and announce a plan and budget for an exploration program to be carried out once the field season starts in mid-2019.
Ontario Cobalt Property Update:
During the late fall of 2018, Surge completed a total of 4,272 m / 14,016 ft. of diamond drilling in 33 holes on both the Glencore-Bucke and Teledyne Cobalt Properties: 2,559 m / 8,396 ft. were completed in 24 drill holes on the Glencore Bucke Property, and 1,713 m / 5,620 ft. in 9 drill holes on the Teledyne Cobalt Property.
On the Glencore-Bucke Property, drill holes GB18-22 to GB18-30 tested the Northwest and Main Zones with the intent of intersecting mineralized zones along strike and vertically above and below previous intersections reported in the 2017 drilling program completed by LiCo Energy Metals.
Highlights from diamond drill holes GB18-22 to GB18-30 include:
- GB18-26 0.29 % Co over 0.25 m from 79.25 to 79.50 m.
- GB18-27 0.47 % Co, 33.1 ppm Ag, 0.82% Cu over 2.33 m from 94.42 to 96.75 m, including 1.3% Co, 65.8 ppm Ag, 0.97% Cu over 0.83 m from 94.42 to 95.25 m.
- GB18-29 1.28% Cu over 3.75 m from 61.75 to 65.50 m, including 0.24% Co, 0.43% Cu from 63.00 to 63.40 m.
- GB18-30 0.70 % Co over 0.50 m from 40.00 to 40.50 m.
The results for diamond drill holes GB18-23 to GB18-30are summarized below in Tables 1 and 2. There were no significant results for drill hole GB18-22.
Table 1: Summary of Diamond Drill Results
Note: Intervals reported in Table 1 represent core lengths and not true widths.
Table 2: Drill hole Collar Information
Surge Exploration Inc. has implemented a quality assurance/quality control (QA/QC) program for both the Glencore-Bucke and Teledyne Property drill programs.
Diamond drill cores were logged, and where marked for sampling, split in half, with one half placed in a labelled sample bag, and the remaining half placed back into the core tray and stored in a secured compound. A blank and a standard were inserted in the assay sampling sequence at every 26thand 27thplace respectively. All samples were shipped to Activation Laboratories in Ancaster, Ontario. Each sample was coarsely crushed and a 250 g aliquot is then pulverized and made ready for analysis. A 0.25g portion of the pulverised material is digested with a near total digestion (4 acid) and then analyzed using an ICP. QC for the digestion is 14% for each batch, 5 method reagent blanks, 10 in‐house controls, 10 samples duplicates, and 8 certified reference materials. An additional 13% QC is performed as part of the instrumental analysis to ensure quality in the areas of instrumental drift. If over limits for Cu, Pb, Zn, and Co are encountered, a sodium peroxide fusion, acid dissolution followed by ICP‐OES is completed. Where Ag over limits, a four‐acid digestion is completed followed by ICP‐OES.
The technical content of this news release has been reviewed and approved by Joerg Kleinboeck, P.Geo., an independent consulting geologist and a qualified person as defined in NI 43-101.
About Surge Exploration Inc. https://surgeexploration.com/
The Company is a Canadian-based mineral exploration company which has been active in the resource sector in British Columbia and elsewhere in Canada. The Company has an exploration office in Santiago, Chile to review mineral exploration opportunities in Chile and elsewhere in South America.
Atacama Cobalto Project (Cobalt):
The Atacama Cobalto Project is located in the Atacama Province in northern Chile, 15 km northwest of the town of Copiapó, where mining is the largest economic activity,and the mining industry is one of the region’s major employers. The Atacama Cobalto Project consists of 1,059 hectares and is located only 3 km East of the Cerro Iman Mine. To date, CAP Mineríahas drilled over 20,250 m on the Atacama Coblato Project.
The area of interest hosts several other mining companies and is situated near the mylonitic corridor that is part of the Atacama Fault System that hosts many of the IOCG deposits in northern Chile. The Atacama Cobalto Project corresponds to a “cobalt anomalous IOCG” associated with the geographic area.
The Atacama Cobalto Project benefits from access to excellent infrastructure, including port access, energy supply, and access through the Pan American Highway.
Ontario Cobalt Properties (Cobalt):
The Company has an option to earn an undivided 60% interest in the Glencore Bucke Property and the Teledyne Cobalt Property, located in Cobalt, Ontario Canada.
Incahuasi Lithium Project (Lithium Brine):
The property is located on the northernmost section of the Incahuasi salar, 75 km southeast from both the town of Tilomonte, Chile and the Salar de Atacama, where mining is the largest economic activity,and the mining industry is one of the region’s major employers. The Incahuasi salar is located on the national border between Chile and Argentina at an elevation of 3,260 m. The Incahuasi Lithium Project consists of 10 mineral exploration concessions totalling 2,300 hectares. Bordering this property, in Argentina, is a 9,843 hectare lithium exploration property held by Advantage Lithium (TSXV: AAL OTCQB: AVLIF). The option on this project is subject to TSX-V approval.
Mineral Mountain Property (Gold, Copper) British Columbia
As announced on November 28, 2018, Surge has acquired a 100% interest in9 claim blocks comprising 19,665 hectares (197 sq km)in the Omineca region of north-central British Columbia, approximately 150 km north of Fort St. James. The claims are not subject to any royalty terms, back-in rights, payments or any other agreements and encumbrances. The region is host to numerous operating mines, good infrastructure including experienced exploration and supporting services.
Hedge Hog Property, (Gold, Copper) British Columbia
The Company has an option to earn an undivided 60% interest seven mineral tenure covering 2,418 hectares (5,972 acres) located approximately 80 km northeast of the town of Quesnel, BC and 20 km north of the historic gold mining towns of Wells and Barkerville.
On Behalf of the Board of Directors
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward‐looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward‐looking. Forward‐looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward‐looking statements.