DELREY METALS CORP. (CSE:DLRY, FSE:1OZ, OTC:DLRYF) (“Delrey” or the “Company”) is pleased to provide a corporate update regarding 2019 exploration activities on its flagship Fe-Ti-V Four Corners Project, located near Stephenville, Newfoundland and Labrador, as well as its wholly-owned Peneece property, located near Port Hardy, British Columbia.
- Delrey to complete up to 5,000m of drilling over a proposed 20 drill holes, and 1,600m of trenches on the Four Corners Project during the 2019 exploration season, with work focusing on the Keating Hill East, Four Corners, and Bullseye Zones.
- 2019 drilling designed to complete infill and step out drill targets as necessary to advance project towards a maiden NI 43-101 resource calculation.
- 2012 initial SRK Consulting (Canada) Inc.’s metallurgical results returned a magnetic concentrate grading 63.10% Fe, and 0.643% V205, as well as a low intensity magnetic concentrate returning an impressive 26.80% Ti02, at an 80% recovery.
The Company has submitted an application to the Newfoundland and Labrador Department of Natural Resources to establish up to 20 drill sites, and 1,600m of trenches over the Projects Four Corners, Bullseye, and flagship Keating Hill East Zones. The Newfoundland and Labrador Department of Natural Resources are well known for their expediency with respect to permitting applications and Delrey anticipates receiving permits over the coming weeks with a planned drilling start date of July 15, 2019. The Company also recently submitted an application form to the province’s Junior Exploration Assistance Program which provides financial support of 40-75% of approved exploration costs, to a maximum of $150,000/year, for projects located on the island of Newfoundland.
Recent Surge in Iron Prices
The Company is very pleased with the recent surge in iron prices above $100USD/tonne which adds significant value to the Four Corners Project, highlighted by SRK Consulting (Canada) Inc.’s initial metallurgical results, which returned a magnetic concentrate grading an impressive 63.10% Fe, and 0.643% V205. The Company also believes the Projects Ti02 potential has been overlooked at this point, with the same report returning a composite sample head grade of 9.8% Ti02, with a Wet High Intensity Magnetic Separation (WHIMS) of the initial magnetic rejects returning an impressive 26.80% Ti02, at an 80% recovery.
Delrey’s President and Chief Executive Officer Morgan Good stated, “We are delighted with the recent movement of iron prices to more than $100USD/tonne making new 5 year highs. Other companies such as Champion Iron Ltd (TSE:CIA), and ML Gold (TSXV:MLG) with their iron assets in eastern Canada have both seen a dramatic appreciation to their share prices and valuations of late, which simply cannot be ignored as the iron sector continues heating up. Originally Delrey focused much of its attention on the Four Corners Project’s vanadium potential, which will still be the case, but with the recent surge in iron ore prices, Delrey has adjusted its focus to include more planning and strategy around the iron and titanium to better maximize the true potential value of all three metals (Fe-Ti-V) found on the Project."
Four Corners Project Update
As press released on May 21, 2019, Delrey has entered into a definitive agreement to acquire an 80% interest in the flagship Four Corners VTM (Vanadium, Titanium and Iron) Project. The Four Corners Project comprises 7,655.0 hectares and is located in southwestern Newfoundland and Labrador, 25km east of the town of Stephenville. The project boasts excellent infrastructure and is transected along its entire length by the Burgeo Highway (Route 480) and a 33-megawatt power line. It is located less than 40km (along Route 480) east of the deep-water ice-free Port Harmon complex.
The Four Corners project has five prospective Fe-Ti-V zones, based on anomalous selective surface grab samples and geophysical signatures, four of which have never been drill tested. The current dimensions of the Project’s flagship target, the Keating Hill East Zone, from historic drilling and government surface mapping delineates a zone upwards of 4,500m in length, varying in width between 400m and 1,100m, and extends from surface to 590m where it remains open.
An airborne EM (electromagnetic) survey conducted in 2011 by Geotech Ltd. greatly added to the potential of the Project with the identification of four new targets, increasing the potential mineralized strike length to greater than 16km. Preliminary surface sampling confirms the same style of mineralization found at the Keating Hill East Zone is producing the geophysical anomalies and follow-up work is planned for 2019. Selective samples across the mineralized strike length assayed >40% Fe, 8% Ti02, and 0.30% V205 with individual assays returning as high as 56.92% Fe, 25.24% Ti02, and 0.39% V2051.
1Grab samples are selective in nature and not necessarily representative of the mineralization hosted on the property.
Peneece Phase I Geophysical Results
Delrey is also pleased to announce that it has completed a Phase I airborne geophysics survey across its wholly-owned Fe-Ti-V Peneece property located near Port Hardy, British Columbia. The results are very encouraging and outline a sizeable, ~4.5km x ~3.5km, strong northwest-southeast trending magnetic anomaly, approximately 7,000nT in amplitude (Fig. 1). The survey was completed by Ridgeline Exploration Services Inc. out of Kelowna, British Columbia, and was flown in a systematic low-level grid pattern at 150m line spacing. The average terrain clearance was 75m across the entire survey area and a total of 402 line-km were flown.
Based on the results from the survey, the Company is pleased to announce that it has increased the size of the Peneece property by 482.9-hectares to 1983.3-hectares, to fully encompass the newly discovered strong magnetic anomaly. The results from the survey will be used in helping Delrey’s technical team plan a Phase II work program which will include prospecting, mapping and rock sampling over the geophysical anomalies.
The Company has granted stock options to certain consultants of the Company for the purchase of up to 600,000 common shares of the Company, pursuant to the Company's stock option plan. The options are exercisable for a period of five years at an exercise price of 13 cents per share. All of the options vest immediately as of the date of grant.
Delrey is a mineral exploration company focused on the acquisition, exploration and development of mineral resource properties, specifically in the strategic energy minerals space. The Company has an option to earn an 80% interest in the Four Corners Project located in Newfoundland and Labrador. The Four Corners Project is a Fe-Ti-V exploration project with positive historical drilling, metallurgy, and development economics. The Company also wholly owns the Star, Porcher, Peneece and Blackie Fe-Ti-V properties located along tidewater in western British Columbia. Delrey will continue to review and acquire projects showing potential for materials used in the energy storage and electric vehicle markets. The Company is based in Vancouver, British Columbia, and is listed on the CSE under the symbol “DLRY”.
Scott Dorion, P.Geo., is the designated Qualified Person of the Company as defined by NI 43-101 and has reviewed and approved the technical information contained in this release.
ON BEHALF OF THE BOARD OF DIRECTORS OF
DELREY METALS CORP.
President and Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, but are not limited to, general business and economic uncertainties. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, which could result in delays, or cessation in planned work, that the Company's financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's Management's Discussion and Analysis reports filed under the Company's profile at www.sedar.com. There can be no assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release).
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