VANCOUVER, BC, May 1, 2023
/CNW/ - Zacapa Resources Ltd. ("Zacapa") (TSXV: ZACA)
(OTCQB: ZACAF) (DE: BH0) is pleased to announce the
acquisition of the Kramer Hills gold project centered on the past
producing Shaharald oxide gold mine. The historic mine is located
on patented claims and U.S. Bureau of Land Management ground in
San Bernardino County, California,
which is also home to Equinox Gold's Castle Mountain Mine.
Historical resources include five near-surface open pit oxide gold
deposits that were permitted for exploitation in the late-1980's
and contained approximately 7,500,000 tons at reported grades of
1.65 g/t gold for 375,000 ounces of oxide gold, at a stripping
ratio of 0.55:1 (Figure 1) 1,2.
HIGHLIGHTS
- Kramer Hills includes patented claims at the historic
Shaharald mine and 634 BLM claims in the surrounding area for a
total project size of approximately 5,200 hectares.
- The historic Shaharald mine deposits permitted in 1986
included an historical resource of approximately 7,500,000 tons at
reported grades of 1.65 g/t gold for 375,000 ounces of oxide gold
in five pits1,2,3,4.
- Historical drill results include KRH-38 which intersected
19.5 metres at 8.6 g/t gold from 9.14 metres depth3.
- Gold occurrences at Kramer Hills extend over an area
measuring 7.5 kilometres (northeast-southwest) by 8.5 kilometres
(northwest-southeast) with a concentrated central area containing
more than 54 historic shafts, 2.4 kilometres of tunnels, and
numerous pits and trenches1,5,6.
- Thin alluvial cover and shallow historical drilling (most
holes to only 30 metres or less) suggest good potential that the
Shaharald deposits can be expanded by drilling below established
mineralized zones, along strike (east-west), and by identifying new
mineralization within the district.
"Kramer Hills contains historical resources with robust oxide
gold grades and has excellent potential for expansion along strike
and at depth. The greater than two kilometre strike length of
historic mineralization under thin cover along with widely
distributed gold occurrences in the Kramer Hills district suggests
there is good potential to add additional oxide gold mineralization
to the deposits and make new discoveries," comments Ian Slater, Executive Chairman. "Zacapa plans to
conduct low-cost RC drilling to efficiently verify and expand the
historical resource to convert it to a current resource consistent
with modern standards. Kramer Hills is an outstanding addition to
our growing portfolio of gold projects in the southwest
United States including our
flagship South Bullfrog project."
Kramer Hills is easily road accessible and located on patented
claims and U.S. Bureau of Land Management ("BLM") ground in
mining friendly San Bernardino
County, 21 kilometres southeast of Rio Tinto's Boron Mine.
San Bernardino County also hosts
Equinox Gold's Castle Mountain Mine and MP Materials' Mountain Pass
Mine.
Exploration History
Exploration and mining at Kramer Hills dates to the early 1900s.
During a gold rush in 1926 numerous pits and shafts were excavated
exploiting gold hosted in strongly altered and fractured bedrock
and in nearby placer deposits1. At least 54 shafts had
been completed by 1932 and by 1934 a small open cut surface
operation had been constructed to a depth of 7.6 metres and 5,000
tons of ore was milled5,6. The historic Shaharald mine
shut down in 1942 with Order L-208 which prohibited precious metal
mining during World War II. Several evaluations were made of the
property in 1945-46 but no significant advancements are recorded
until 1981 when Amselco Minerals started sampling and in 1983
obtained a permit for a pilot gold processing
operation1,5,6.
By 1986 Beaver Resources had acquired the property and conducted
a drill program which delineated a series of mineralized zones
comprising four new pits west of the historic pit. In total these
five pits included approximately 7,500,000 tons of ore with a
stripping ratio of 0.55:1 and a reported grade of 1.65 g/ton gold,
totaling 375,000 ounces of oxide gold in a historical resource
(Figure 1)1,2,4. In 1988 Beaver Resources commenced heap
leach production but ran into problems due to swelling of clays
associated with the ore. Operations ceased in 1990 and an estimated
200,000 tons of mined ore remains on the leach
pads7.
Economic Geology and Exploration Upside
Gold occurrences are noted in the Kramer Hills district over an
area measuring 7.5 kilometers (northeast-southwest) by 8.5
kilometers (northwest-southeast), which includes at least 54
shafts, 72 trenches, and a historic open pit. Five mineralized
zones have been defined by previous exploration within an east-west
trending structural corridor of fractured and altered gold bearing
rock that extends at least 2.7 kilometres5,6. Gold
mineralization at Kramer Hills is spatially associated with this
broadly east-west trending, moderately south dipping (50°) brittle
fault zone that transects the property and aligns gold showings,
pits, and other workings (Figure 1). This structural zone parallels
the contact of a mapped inlier of metavolcanic rocks in a quartz
monzonite pluton that intruded into Mesozoic basement rocks. This
contact zone appears to have been the focus for mid-Tertiary
intrusions and hydrothermal activity1. The fault zones
measure 9-15 meters wide and are spatially associated with
rhyolite-dacite dykes, bleached and layered volcanic rocks and late
manganiferous jasperioid interpreted to be hydrothermal in
origin1. The fault is intensely silica-clay +/- sericite
altered to more than 60 metres wide with moderate to intense
goethite-jarosite (after pyrite). Oxide gold mineralization at
Kramer Hills is spatially associated with these iron oxides
generated from weathering pyrite which has occurred to depths of 36
to 42 metres1,2. Zacapa interprets this alteration as
indications of a high-sulfidation epithermal gold system associated
with Tertiary volcanism in the region.
Most of the historical drill information has been lost however a
total of 36 drill hole intercepts have been recovered from a
drilling program conducted by Amselco in 1984 which provide some
insight into the gold grade and gold continuity in the Shaharald
mine pit (Table 1)3.
DRILL
HOLE
|
FROM
(m)
|
TO
(m)
|
LENGTH
(m)
|
GOLD
(g/t)
|
|
|
|
|
DRILL
HOLE
|
FROM
(m)
|
TO
(m)
|
LENGTH
(m)
|
GOLD
(g/t)
|
|
|
|
|
KRH-15
|
21.34
|
30.48
|
9.14
|
6.53
|
|
|
|
|
KRH-37
|
9.14
|
12.19
|
3.05
|
0.55
|
KRH-16
|
NSR
|
|
|
|
|
KRH-38
|
9.14
|
28.65
|
19.51
|
8.60
|
KRH-17
|
18.29
|
21.34
|
3.05
|
1.34
|
|
|
|
|
incl.
|
15.24
|
27.43
|
12.19
|
13.17
|
KRH-18
|
0.00
|
22.86
|
22.86
|
1.66
|
|
|
|
|
KRH-39
|
6.10
|
12.19
|
6.10
|
0.70
|
KRH-20
|
0.00
|
18.29
|
18.29
|
1.60
|
|
|
|
|
and
|
15.24
|
30.48
|
15.24
|
2.19
|
and
|
21.34
|
24.38
|
3.05
|
1.71
|
|
|
|
|
KRH-40
|
9.14
|
15.24
|
6.10
|
2.95
|
KRH-21
|
NSR
|
|
|
|
|
KRH-41
|
3.05
|
6.10
|
3.05
|
1.92
|
KRH-22
|
3.05
|
12.19
|
9.14
|
1.20
|
|
|
|
|
and
|
12.19
|
18.29
|
6.10
|
2.81
|
KRH-23
|
3.05
|
9.14
|
6.10
|
1.01
|
|
|
|
|
KRH-44
|
6.10
|
12.19
|
6.10
|
2.26
|
KRH-24
|
0.00
|
15.24
|
15.24
|
4.99
|
|
|
|
|
KRH-45
|
NSR
|
incl
|
0.00
|
9.14
|
9.14
|
6.63
|
|
|
|
|
KH-46
|
0.00
|
18.29
|
18.29
|
1.50
|
KRH-25
|
0.00
|
13.72
|
13.72
|
2.11
|
|
|
|
|
and
|
21.34
|
27.43
|
6.10
|
1.25
|
KRH-26
|
9.14
|
13.72
|
4.57
|
1.77
|
|
|
|
|
KRH-47
|
NSR
|
KRH-27
|
15.24
|
18.29
|
3.05
|
11.69
|
|
|
|
|
KRH-48
|
0.00
|
3.05
|
3.05
|
0.58
|
KRH-28
|
12.19
|
18.29
|
6.10
|
0.62
|
|
|
|
|
KRH-49
|
0.00
|
25.60
|
25.60
|
2.71
|
KRH-29
|
0.00
|
9.14
|
9.14
|
0.93
|
|
|
|
|
incl.
|
15.24
|
25.60
|
10.36
|
5.29
|
KRH-31
|
3.05
|
18.29
|
15.24
|
3.89
|
|
|
|
|
KRH-50
|
0.00
|
9.14
|
9.14
|
2.41
|
incl.
|
3.05
|
12.19
|
9.14
|
5.54
|
|
|
|
|
KRH-51
|
9.14
|
12.19
|
3.05
|
0.79
|
and
|
21.34
|
30.48
|
9.14
|
0.83
|
|
|
|
|
KRH-52
|
NSR
|
KRH-32
|
3.05
|
24.38
|
21.34
|
1.51
|
|
|
|
|
KRH-53
|
NSR
|
and
|
27.43
|
30.48
|
3.05
|
0.51
|
|
|
|
|
KRH-54
|
NSR
|
KRH-33
|
3.05
|
12.19
|
9.14
|
0.86
|
|
|
|
|
KRH-55
|
NSR
|
KRH-36?
|
3.05
|
12.19
|
9.14
|
0.88
|
|
|
|
|
KRH-56
|
NSR
|
KRH-35
|
NSR
|
|
|
|
|
|
|
|
|
|
Table 1 - Historical drill intercepts
from the Kramer Hills project3. Note that collar
coordinates and drill hole orientations are not available for these
results. These holes were assayed in 1984 by Arizona Testing
Laboratories and are included in this news release to illustrate
the intensity and down hole continuity of gold mineralization
internal to mineralization in the past producing open pit. Zacapa
considers these historical drill results relevant as Zacapa is
using this data as a guide to plan exploration programs. Zacapa's
current and future exploration work includes verification of the
historical data through drilling. All intervals are drilled lengths
and true thicknesses cannot be determined.
Acquisition Terms
Zacapa purchased Lustrum Gold Corp., a privately held
British Columbia company
("Lustrum") for 33,600,000 common shares of Zacapa and a 2%
NSR royalty. Lustrum holds the Kramer Hills property through a 100%
owned US subsidiary.
About Zacapa Resources
Zacapa is a mineral exploration company engaged in gold and
copper exploration in world class jurisdictions in the southwest
United States, including
Arizona, Nevada, Idaho, and California. The portfolio includes epithermal
gold projects at South Bullfrog, Kramer Hills, Miller Mountain and Dewdrop, and porphyry copper
exploration at the Pearl project. These assets are being advanced
by a highly disciplined and seasoned professional team with
successful track records of discovery, resource development and
mine permitting.
References
1Ely II,
M. F., 1987. Shaharald Mine – A Proposed Amendment to the
Lahontan Board Order # 06-86-106 Beaver Resources Inc., San
Bernardino County, California, January 30,
1987.
|
|
2 Blair,
J.M., 1989. Beaver Minerals Inc. Public News Release, March
15th, 1989. J.M., Blair, President of Beaver
Resources Inc.
|
|
3 Drill
data disclosed in this news release is related to historical
drilling results. Zacapa has not undertaken any independent
investigation of the sampling, nor has it independently analyzed
the results of the historical exploration work to verify the
results. Zacapa considers these historical drill results relevant
as Zacapa is using this data as a guide to plan future exploration
programs and considers the data to be reliable for these purposes.
Zacapa's current and future exploration work includes verification
of the historical data through drilling. Zacapa does not consider
the historic information or economic realization of these numbers
as indicative of mineralization at Kramer Hills or the economics of
any such mineralization. All intervals are drilled lengths and true
thicknesses cannot be confidently determined. A
nominal cut-off grade of 0.5 g/t Au has been applied
to determine the boundaries of the intersections with no internal
dilution.
|
|
4 The
mineral resource estimates contained in this news release are
considered to be "historical estimates" under National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101"). A Qualified Person has not done sufficient work to
classify the historical estimate as a current mineral resource, and
Zacapa is not treating these historical estimates as current
Mineral Resources. Zacapa would need to verify historic hole
locations and conduct an exploration program, including twinning of
historical drill holes in order to confirm the estimates and
establish them as a current mineral resource.
|
|
5 Irving,
J., 1932, Mining Report on properties in the Kramer Hills District
[Consulting Report, July 18, 1932], 12 p.
|
|
6 Joslin,
G.A., 1945, Preliminary Report of the Shaherald Mine [Consulting
Report, November 23, 1945], 8 p.
|
|
7Musante,
J., 2006, Shaharald Mine, Final Pollution Report: United States
Environmental Protection Agency, 2 p.
|
|
All scientific and technical information in this news release
has been prepared by, or approved by Daniel
MacNeil, PGeo, and Technical Advisor of the Company. Mr.
MacNeil is a "Qualified Person" for the purposes of National
Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
For more information, please visit www.zacaparesources.com or
contact:
Ian Slater
|
Michelle
Borromeo
|
Executive
Chairman
|
Vice President Investor
Relations
|
+1 778 372
2551
|
+1 778 330
3835
|
slater@zacaparesources.com
|
borromeo@zacaparesources.com
|
|
|
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. Certain information set forth in this
news release may contain forward-looking statements that involve
substantial known and unknown risks and uncertainties. All
statements within, other than statements of historical fact, are to
be considered forward looking. Although Zacapa believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in forward-looking statements. Zacapa
cautions that all forward-looking statements are inherently
uncertain, and that actual performance may be affected by a number
of factors, many of which are beyond Zacapa's control. Accordingly,
actual and future events, conditions and results may differ
materially from the estimates, beliefs, intentions and expectations
expressed or implied in the forward-looking information. Readers
are advised to rely on their own evaluation of such uncertainties.
Except as required under applicable securities legislation, Zacapa
undertakes no obligation to publicly update or revise
forward-looking information.
SOURCE Zacapa Resources