New Energy Metals Corp. Announces Results of VIP/MT Survey at Exploradora North; Porphyry Copper-Gold Prospect, Chile; 25+ Square Kilometer High Chargeability Anomaly Trending to Codelco Boundary on the South
Vancouver, British Columbia--(Newsfile Corp. - August 19, 2019) - New Energy Metals Corp. (TSXV: ENRG) (OTC Pink: NEMCF) ("New Energy Metals" or the "Company") is pleased to announce results from the initial 3D Vector Induced Polarization ("VIP") and Magneto-Telluric ("MT") geophysical survey carried out on the Exploradora North porphyry copper-gold prospect ("Exploradora North" or the "Property") (Figure 1) along the West Fissure branch of the regional Domeyko Fault system, northern Chile.
Exploradora North covers approximately 85,000 hectares and is directly north of the on-going deep drilling at CODELCO's Exploradora project, which previously reported near surface drill results of 100 metres grading 0.3% copper and 0.2 g/t gold (Society of Economist Geologists, Special Publication 11, 2004, pages 97-111) (Figure 2). New Energy holds an option over the lands of Exploradora North with the expressed purpose of discovering and delineating potentially near surface and deep porphyry copper-gold and skarn mineralization. Due to the depth of potential deposits (below 600 meters) and the presence of post-mineral cover, deep-seeking geophysical methods have been utilized in the first phase of exploration at Exploradora North. Previous drilling on Exploradora North has not been carried out below a depth of 600 meters, which is the approximate depth to the top of mineralization at CODELCO's El Salvador copper mine, 70 kilometers to the south. The El Salvador Mine had an original resource of approximately 300 Mt of 1.5% copper that started underground mining production in 1959 and is currently in operation.
New Energy has defined a number of prospects on the southern border of Exploradora North as shown in Figure 3, including the Chorreado prospect, a porphyry-type exposure with more than 25 square kilometres of intensely leached intrusions and breccias and limonite, which is indicative of leaching of chalcocite, and copper-bearing skarns.
Cautionary Note Regarding Adjacent Properties - CODELCO's underground El Salvador mine is an adjacent property, which the Company has no interest in or right to acquire. Mineral deposits on adjacent or similar properties, and any production therefore or economics with respect thereto, are not in any way indicative of mineral deposits on New Energy Metals' properties or the potential production from or cost or economics of, any future mining of any of New Energy Metals' mineral properties.
Southernrock Geophysics ("Southernrock") completed VIP and MT surveys over approximately 150 stations at Exploradora North on a one kilometre per station grid with the objective of characterizing the chargeability and resistivity parameters that might be associated with buried sulphide mineralization in the area (Figures 4 & 5).
Results of the VIP survey have identified and broadly delineated an extensive and deep (approximately 5 km by 5 km area, at a depth of at least 750 m) zone of anomalously elevated IP-response (chargeability) characteristic of the presence of sulphide mineralization (Figure 6). A 3D IP-Resistivity model created by Southernrock (Figure 7), shows the potential for sulphide mineralization is predicted below 750 meters and has not been drill tested to date. However, skarn and contact-type copper has been viewed in surface trenching in the southeast area of this new defined anomaly. The complete report with all the survey details is located on the Company's website (https://www.newenergymetals.ca/). The principal anomalous zone is open to the south toward the adjoining CODELCO Exploradora project, currently being drilled by CODELCO near the border. The information collected to date suggests a potential for continuous sulphide mineralization onto the adjacent CODELCO ground, as well as to the north within the 40+ kilometers north-south length of the Exploradora North property.
Results of the MR survey show a zone of moderate-to-low resistivity, broadly coincident with the lateral extent of the main zone of the IP anomaly such that this is flanked by zones of high resistivity. Within this zone of moderate-to-low resistivity there is a south-north trending core zone of low resistivity roughly coincident with the central portion of the main IP anomaly. The central portion of this core zone may be partially ringed by overlying-flanking zones of particularly high IP response. High resistivity is often interpreted as a combination of disseminated sulphides and abundant quartz veining, or barren intrusions and fault zones.
Part of the deep low resistivity response in this area could represent the core of a system of mineralization with the higher IP responses flanking and overlying it, representing relative increases in pyrite content with respect to other metallic sulphide minerals. Furthermore, such an extensive anomaly may harbour more than one target and/or target types (both porphyry copper-molybdenum-gold and skarn mineralization) that will be determined from drilling.
Exploradora North exhibits excellent targets, both geologically and geophysically, for discovering and delineating a porphyry copper-gold deposit in an emerging new district in Chile. The large land holdings are all within and along 40 kilometers of the productive West Fissure fault zone between BHP's Escondida mine to the north and CODELCO's El Salvador mine to the south. Ground Magnetics are currently being carried out by Southernrock on the same area and a full integrated report will be available in the next several weeks.
Figure 1. Location Map Exploradora District
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Figure 2. New Energy Metals Holdings at Exploradora North
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Figure 3. Potential Drill Targets on Exploradora North Project of New Energy Metals
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Figure 6. 750 meter Plan View Depth Slice of 3D Vector IP/Resistivity High Chargeability at Chorreado, Exploradora North
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Figure 7. 3D Model of High IP/MT Response at Chorreado, Exploradora North, Continues Below 1000 meters Depth
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Dr. Thomas A. Henricksen, a qualified person as defined by National Instrument 43-101 has reviewed the scientific and technical information that forms the basis of this news release and has approved the disclosure herein. Dr. Henricksen is not independent of the Company as he is the Company's chief geologist and holds incentive stock options of the Company.
About the Company
New Energy Metals is focused on the exploration and development of energy metals in Chile. The Company's assets include several prospective cobalt projects in Chile's past producing San Juan cobalt district.
On behalf of New Energy Metals Corp.
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Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, the anticipated exploration program results from exploration activities on the Company's mineral projects, including work completed under the Geophysics Contract on the Exploradora North Project, the discovery and delineation of mineral deposits/resources/reserves and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "will", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation: the ability of the surveys conducted under the Geophysics Contract to assist in the better definition of drill targets for the Exploradora North Project, that market fundamentals will result in sustained precious metals, cobalt and copper demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Company's Chilean mineral projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Company's projects and the Company's ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, operating and technical difficulties in connection with the exploration activities undertaken by SRG under the Geophysics Contract, actual results of exploration activities, the fact that the Company's interests in its mineral properties (including the Exploradora North Project) are only options and there is no guarantee that the interests, if earned, will be certain, requirements for additional capital, future prices of precious metals, cobalt and copper, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, other risks of the mining industry, the inability to obtain any necessary governmental and regulatory approvals, changes in laws, regulations and policies affecting mining operations, hedging practices and currency fluctuations, as well as those factors discussed under the heading "Risks and Uncertainties" in the Company's most recent management's discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. Except as otherwise required by law, the Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein.
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