June 5th, 2017, Vancouver, BC, Canada – Canada Carbon Inc. (the “Company”) (TSX-V:CCB), (FF:U7N1) is pleased to announce it is planning for an approximately 3,000 metre (“m”) drill program on its Miller Project that is expected to begin in mid June 2017. The drill results should increase the confidence in the resource modeling beyond the boundaries of existing indicated resources (see news release dated December 14th 2016). The Company will then proceed to update its mineral resources, to be determined by SGS Canada, Blainville, Quebec.
The drill program will only be performed in selected areas away from wetlands and environmentally sensitive zones identified in our environmental assessments, to ensure that any further discoveries will also have a minimal impact on the environment as we continue to assess options for mine optimization. The map of the current indicated and inferred resources and the areas that could be drilled can be found at: https://www.canadacarbon.com/images/Miller_Drill_Map_Jun2017.jpg. One important goal of this drill program is to enhance the near-surface indicated graphite resource category which may allow the Company to maintain or improve its current economic projections (as stated in the Company’s Preliminary Economic Assessment filed April 14th, 2016 on SEDAR) within a smaller and shallower open pit operating plan.
The proposed 3,000 m drill program will include between 24 and 40 holes to variable depths between 75 and 125 m each. Depending on drill results, the Company may expand the drill program beyond 3,000 m. Downing Drilling from Hawkesbury, ON, and Foradrill from Gatineau, QC, were selected to perform the drill program, which will be managed by SL Exploration Inc. The core will be logged, split and prepared under the supervision of its geologists, who will also manage the QA/QC program. Samples will be sent to Actlabs, Ancaster, ON for graphite assaying using preparation code RX1-Graphitic (Samples undergo drying, crushing up to 90% passing through a #10 square-mesh screen, riffle splitting (250 gram) and pulverized by crushing to 95% passing a 105 micron square-mesh screen.) and assaying code 4F-C-Graphitic (Multistage furnace treatment and infrared absorption, with a 0.05% detection limit).
The drill targets and collar locations will be prepared by SGS Canada (Blainville) in the coming weeks. The existing geological model of the Miller deposit includes areas with open mineralization in all directions, including higher grade zones (1% Cg and over) that will be targets for this drill program. Additionally, in-fill drilling will be performed in areas where past drill sample density supported only inferred graphite resources (see news release dated December 14th 2016). SGS Canada will prioritize in-filling in higher grade zones before working in lower grade areas. The updated geological model developed to support the revised resource calculation in the Technical Report filed to SEDAR on January 27, 2017 revealed that higher graphite grades were hosted in marble and skarn units proximal to contact with paragneiss bands, which are themselves open along strike and to depth. These contact zones constitute a new type of drill target, and if confirmed by drilling, could lead to a significant increase in the number of holes completed during this summer’s drill program.
The Company also is planning further drilling to increase its knowledge of the continuity and quality of the white marble zone which is expected to be quarried to yield blocks and slabs of architectural stone. Both existing and newly acquired marble core samples will be digitally scanned for colour and consistency, which will be used to develop a three-dimensional model for quarry planning purposes.
Canada Carbon Executive Chairman and Chief Executive Officer Mr. R. Bruce Duncan remarked, “The Miller white marble has sparked interest in the dimensional stone industry, due to its unique characteristics. The marble has excellent colour and appearance, is easy to work, and polishes to a high lustre. We look forward to further developing marble interest as we conduct public consultations and advance in obtaining the required permits and environmental certificate of authorisation.”
Canada Carbon has established a dedicated page on its website to host final environmental and other assessment reports, which will be updated as new information becomes available. The Miller Project Reports page can be accessed from the website home page, or by opening this link: https://www.canadacarbon.com/miller-project-reports. The Company will provide periodic updates via newspaper ads and flyers delivered to GSLR residents, and will hold further public meetings from time to time as the results of the Project feasibility study are made public and the quarry and mine permit applications are considered.
Steven Lauzier, P.Geo. OGQ, a Qualified Person as defined by National Instrument 43-101 guidelines, has reviewed and approved the technical content of this news release.
CANADA CARBON INC.
CEO and Director
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FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).