Pacifica Resources drills 16.5 m of 5.95% Zn at Selwyn

2007-05-28 10:05 ET - News Release

Dr. Harlan Meade reports

PACIFICA RESOURCES ANNOUNCES SIGNIFICANT EXPANSION OF HIGH-GRADE MINERAL POTENTIAL IN DON VALLEY

Pacifica Resources Ltd. has provided an update on recent drilling activities in the Don Valley for the Selwyn project. The results of these first drill holes of 2007 are very encouraging and significantly advance the understanding of the mineral potential for larger tonnages of higher grade zinc-lead mineralization at depth in Don Valley. The initial drilling in Don Valley is focusing on the 4,200-metre length of active member between the Don and HC West deposits. Currently there are four diamond drills from two contractors working on the Selwyn project. All diamond drills are currently based out of the newly established Don camp in the Don Valley. The location of the new drill holes can be found on drill plan maps available at the company's website.

Highlights:

  • DON-051 intersecting 16.50 metres true thickness grading 5.95 per cent zinc and 1.90 per cent lead including 2.50 metres grading 9.07 per cent zinc and 4.64 per cent lead;
  • DON-053 intersecting 5.40 metres true thickness grading 6.55 per cent zinc and 1.51 per cent lead including 2.20 metres grading 14.53 per cent zinc and 3.61 per cent lead;
  • DON-055 intersecting 33.90 metres true thickness grading 5.11 per cent zinc and 1.37 per cent lead including 6.25 metres grading 11.39 per cent zinc and 3.10 per cent lead; and
  • nine drill holes have been completed year to date for a total of 3,184.0 metres. Four drill holes are in progress for an additional total of 1,159.2 metres.

Higher grade mineral potential of the Selwyn project

Drilling in late 2006 defined higher grade mineralization beneath open-pit zinc-lead targets in the Don, Don East and HC West deposits in Don Valley (see news in Stockwatch on Feb. 6, 2007). The higher grade mineralization is very similar to that encountered in deep drilling in the XY Central deposit, approximately 16 kilometres along strike to the southeast. The higher grade mineralization differs in character from the finely laminated zinc-lead mineralized active member that typifies the majority of the open-pit mineral resource targets (see news in Stockwatch on April 2, 2007). In particular, it is characterized by higher lead grades greater than 3 per cent lead; which marks the transition into higher grade zinc-lead active member. This transition to higher grade mineralization was first identified at the XY Central deposit when drilling at depth defined extensive high-grade mineralization over an area of 1,000 by 600 metres that is open down dip and along strike.

Modelling of the new drill data indicates there is greater structural complexity in the Don Valley; however, the overall integrity of the active member remains very good as defined currently by the 11 holes in the Don deposit and 10 holes in the Don East deposit. Faulting locally truncates zinc-lead mineralized active member and rotates the stratigraphy within fault blocks. As drilling progresses in 2007, these geometries will be defined during additional infill drilling for mineral resource definition and mine planning. Initial drilling on the Don and Don East deposits is wide spaced to confirm the tonnage potential of these targets; with later infill drilling better defining the mineral resources for any future open pit and underground mining opportunities.

Don deposit deep drilling

One drill is drilling on the Don deposit where it is targeting an area of 600 by 600 metres of active member that is modelled to contain potential for approximately 22 million tonnes of which approximately 80 per cent of the tonnage occurs at a depth of 200 to 600 metres below surface. Drilling the Don deposit has successfully tested the steeply dipping active member to a depth of 600 metres below surface (see DON-051 and 056).

Deep drilling in the Don deposit has now tested an area of 400 by 600 metres to a vertical depth of 600 metres. Drill hole DON-051 is located 500 metres southeast from DON-044 and it is now the deepest intersection drilled to date in the Don deposit that hosts a thick sequence of higher grade zinc-lead mineralization within the active member. DON-051 is only one of several drill holes that have intersected higher grade mineralization over the 22 kilometres between the Anniv Central and XY Central deposits. The zinc-lead mineralization in DON-44 consists of 22.30 metres true thickness grading 8.94 per cent zinc and 3.10 per cent lead, including 3.30 metres grading 24.21 per cent zinc and 10.61 per cent lead (see news in Stockwatch on Jan. 24, 2007) remains the highest grade intersection outside of the XY Central deposit; however, DON-051 clearly shows there remains an opportunity to significantly expand the underground target mineral potential in the Don deposit. The Don deposit remains open to expansion along strike and at depth.

                                                                       True  Drill hole     From       To   Thickness     Pb      Zn    Pb+Zn  thickness                   (m)      (m)         (m)    (%)     (%)      (%)        (m)    DON-051      643.20   675.20       32.00   1.90    5.95     7.85      16.50  Including    661.20   664.90        3.70   2.78   13.84    16.62       1.91  Including    661.20   675.20       14.00   2.93    3.66     6.58       7.20  Including    664.40   675.20       10.80   2.95    6.83     9.78       5.60  Including    670.30   675.20        4.90   4.64    9.07    13.70       2.50  Including    673.10   675.20        2.10   7.28   11.23    18.51       1.10  DON-056      405.50   436.00     30.50(3)  Assays pending for active member  DON-058      330.80   446.40    115.60(3)  assays pending for active member    (3) Denotes apparent thickness with true thickness reported upon receipt and      processing of assay results

The high-grade intercept in DON-051 is the down-dip extension of the active member in DON-004 and DON-044 and is 500 and 300 metres lower in elevation than those holes, respectively. DON-051 is also approximately 300 metres lower in elevation than any other drill intercept of the active member anywhere on the Selwyn project; thereby continuing to show there remains significant higher grade mineralization potential at depth throughout the property. Following up on the highly successful DON-051, DON-056 was collared from the same drill pad and has intersected zinc-lead mineralized active member 280 metres up dip from DON-051. DON-058 was collared from the same drill pad as DON-044 and is an up dip extension that intersected a very wide, fault repeated thickness of zinc-lead mineralized active member. Both DON-056 and DON-058 continue to confirm the continuity of the active member in terms of its distribution and overall thickness within the Don Valley. DON-062 is currently being drilled from the same drill pad as DON-058 and is testing the down dip extension of DON-044.

Don East deposit open-pit target

Three drills are drilling on the Don East deposit approximately 2,000 metres southeast of the Don deposit. This drilling has also been successful in tracing the active member to depth and along strike. The active member in the Don East deposit is modelled over an area of at least 1,600 by 600 metres with the potential to host mineral resources of approximately 50 million tonnes of which about 50 per cent is within 200 metres of surface. The target for higher grade zinc-lead mineralization is focused on an approximate 500 metres of down dip extension of the deposit and represents a mineral potential of approximately 26 million tonnes of higher grade zinc-lead mineralization in the active member.

DON-053 was following up on the highly successful drilling of 2006 and intersected a high-grade zinc-lead mineralized interval of active member that is located 640 metres northwest of the discovery drill hole DON-036 (see news in Stockwatch on Nov. 30, 2006) and 1,600 metres southeast of DON-051. The most recent drilling in DON-053 and DON-055 has extended the western extent of the deposit by 200 metres within the shallow open pit environment that remains open for expansion. The intercept in DON-053 is bounded by faults along both the hangingwall and footwall contacts suggesting structural complication along the western margin of the Don East deposit; however, prior to reaching any possible fault repeat, as seen in DON-049 418 metres to the southeast, the drill hole was lost in a fault.

                                                                       True  Drill hole     From       To   Thickness      Pb     Zn    Pb+Zn  thickness                   (m)      (m)         (m)     (%)    (%)      (%)        (m)    DON-053       75.60    81.20        5.60    1.51   6.55     8.06       5.40  Including     78.90    81.20        2.30    3.61  14.53    18.13       2.20  Including     80.20    81.10        0.90    5.84  25.77    31.61       0.90  DON-055       38.40   118.60       80.20    1.37   5.11     6.48      33.90  Including     45.30   118.60       73.30    1.48   5.48     6.96      31.00  Including     45.30    67.70       22.40    2.33   8.88    11.21       9.50  Including     51.90    66.70       14.80    3.10  11.39    14.49       6.25  Including    112.30   118.30        6.00    2.52  10.34    12.86       2.50  

DON-055 is the up dip follow-up to the high-grade intercept in DON-053 and intersected 33.90 metres true thickness of well-mineralized active member. Assay sample from drill holes DON-054 and DON-057 are at the laboratory; noting that further information will be released pending quality assurance/quality control procedures in the near future. DON-059, DON-060 and DON-061 are currently being drilled.

At this time, the strong continuity of the open-pit targets indicates excellent opportunity for expansion of potential mineral resources. Deep drilling will commence on the HC West deposit in the coming weeks. The HC West deposit is located approximately 2,200 metres southwest of Don East deposit and represents the southeast portion of the 4,200-metre trend of higher grade mineralization currently being explored.

Other targets

Resumption of drilling to test the potential of other deposits in the core of the synclinal structure is planned for mid-June as additional drills are added. The XY Central deposit lies on the southwest limb of a regional synclinal fold structure; whereas drilling in Don Valley occurs on the opposite or northeast limb of this regional fold structure. Drilling in the XY Central deposit defined a high-grade, underground mineral resource of 7,394,860 tonnes of indicated mineral resources grading 9.88 per cent zinc and 4.32 per cent lead, which is flanked by 1,856,500 tonnes of inferred mineral resources grading 10.41 per cent zinc and 3.71 per cent lead (April 2, 2007). The high-grade underground mineralization at XY Central is open both along strike and down dip with potential for expansion of mineral resources over an area of more than 1,000 by 600 metres that represents potential for approximately 12 million tonnes. The XY Central deposit area is one of two prime targets for defining higher grade mineral resources for integration into a revised mining plan that will be developed in the latter part of 2007 as an amendment to the preliminary assessment report filed on SEDAR on May 2, 2007.

The Selwyn project exploration program is being reviewed by vice-president of exploration, Jason Dunning, MSc, PGeo. The on-site activities for the Selwyn project are directed by exploration manager, John J. O'Donnell, PGeo. Both Mr. Dunning and Mr. O'Donnell are qualified persons within the meaning of National Instrument 43-101. All assay data have been through internal validation of quality assurance and quality control. Pacifica has established a sampling and assay control program with blind insertion of assay blanks, standards and duplicates for the Selwyn project; however, it should be noted that there is also a quality control and quality assurance program in at ACME Analytical Laboratories Ltd. that includes blanks, duplicates and standards. At ACME, silver and base metal analyses are conducted by a 17-element, four-acid digestion, ore-grade ICP-AES technique.

Pacifica's main focus is the exploration of its properties that compose the Selwyn project in the Yukon, which hosts large tonnages of zinc-lead mineralization. The known deposits have the potential for the large-scale production of zinc and lead, at a time when world zinc mine supply is in deficit and there are few new mines under development. As follow-up to the highly successful 2006 exploration program, Pacifica Resources is planning a $25-million exploration program in 2007 to continue definition drilling of the XY, Anniv and Don Valley (HC, HC West, Don East, and Don) deposits.

Note that all discussion of previous National Instrument 43-101-compliant indicated and inferred mineral resources are referenced in the March, 2007, NI 43-101 report for the Selwyn project. In reviewing historical resources, all discussion of indicated mineral resources that predate introduction of NI 43-101 should be considered as inferred mineral resources. All historical inferred mineral resources that predate NI 43-101 should be considered as areas of mineral potential requiring further definition through drilling. Historical mineral resources are referenced in the June, 2005, NI 43-101 report for Howard's Pass. Copies of the reports can be viewed at SEDAR. Any areas discussed as possessing mineral potential are not defined through drilling and are conceptual based upon a detailed geological model. Further definition drilling is required prior to discussing potential mineral resources as an accepted NI 43-101 mineral resource classification.

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