Polaris Provides Black Bear Update
June 7, 2016
VANCOUVER, British Columbia – Polaris Materials Corporation (TSX:PLS) (the “Company”, “Polaris” or “we”) is pleased to provide an update on exploration and development activities at its Black Bear Project (“Black Bear” or the “Project”).
Extensive surface sampling was completed on the Black Bear Project in late 2015 and early 2016, which confirmed the location of the deposit as well as assisted in the identification of potential target sites for exploration in support of an initial resource. On the basis of favourable topography, surface sampling, and site access, a target location for was selected for an initial drill program which was completed in Q1 2016. The drill program comprised 5 HQ core holes totaling 366.4 meters, and was focused on confirming the preliminary findings of the surface sampling program and establishing continuity of the geology underlying the project site. The laterally continuous nature of the mineralization supports relatively wide-spaced drilling. The target location has good access for evaluation work and is well situated for eventual development and production activities, should a mining study establish the economic viability and technical feasibility of the project.
Material samples from both drilling and surface testing were submitted to Golder Associates’ laboratories, located in Burnaby and Surrey, BC, as well as the Kleinfelder laboratory in Hayward, CA in order to evaluate relevant physical and chemical properties, with a focus on confirmation of suitability of materials for use in construction. Testing completed to date includes absorption, LA Abrasion, film stripping, alkali-silica reactivity, rock strength, sulphate soundness, specific gravity, 30-element ICP, petrographic analysis, and neutralization potential. Drill core not used in testing is retained at the Company’s offices in Port McNeill.
Testing has confirmed that samples from the Black Bear Project demonstrate properties consistent with the materials at our Orca Quarry, and, subject to completion of further testing are expected to be suitable for use in a number of applications, including concrete and hot mix asphalt. Preliminary site investigations are ongoing for the completion of a technical report by Beck & Associates GeoConsultants Inc. which is intended to support an inaugural mineral resource estimate for the project and is targeted for mid-2016.
BLACK BEAR GEOLOGY AND DRILLING
The Black Bear Project is located approximately 6km southwest in a straight line from Port McNeill and covers approximately 27 hectares of land contained within the bounds of the Company’s License of Occupation and surrounding mineral claims. The project area covers a large outcrop of relatively flat-lying and laterally continuous Karmutsen basaltic volcanic rock, with the exploration target located on the western edge of the outcrop and easily accessible by logging road. A map of the Black Bear Project and exploration target location can be found in Figure 1, as well as a cross-section of the target zone in Figure 2.
Figure 1: Initial Exploration Target and Drill Hole Locations
Figure 2: Exploration Target Cross Section
Table 1: Drill Results
All holes comprised basalt rock commencing immediately below a few meters of overburden and continuing until end of hole.
SUMMARY OF TEST RESULTS
Material samples were selected from the drill core and provided to Golder Associates’ laboratories in Burnaby and Surrey, BC for the majority of the testing. Samples were also provided to the Kleinfelder laboratory in Hayward, CA for California hot mix asphalt adhesion tests.
Table 2: Summary Test Results
|Test||Test purpose||# of Samples||Average Result||Relevant Standard(1)||Test Reference|
|Absorption||Mix design||15||0.77% +/- 0.37%||n/a||ASTM C127|
|LA Abrasion for large coarse aggregates||Hardness||15||16.4% +/- 4.9%||<50%||ASTM C535|
|Film Stripping||Asphalt adhesion||3(2)||0-10%||<25%||CT302|
|Relative Density||Mix design||15||2.94 +/- 0.04||n/a||ASTM C127|
|Magnesium Sulphate Soundness||Durability||15||1.9% +/- 3.7%||<15%||ASTM C88|
|Point Load||Strength||15||158 +/- 57 MPa||n/a||Deere and Miller, 1966|
|Accelerated Mortar Bar||Alkali Silica Reactivity||3(2)||0.05%||<0.1%||ASTM C1260|
|Neutralization Potential Ratio||Acid Rock Drainage||15||22.3||>4||Price et al., 1997b|
(1) Standards for construction aggregate performance other than Neutralization Potential Ratio, which is relevant to evaluation of the deposit for potential risk of acid rock drainage.
(2) Testing performed on composites of holes 02-16, 04-16 and 05-16.
In addition to the favourable material performance results noted above, the Black Bear deposit’s Neutralization Potential Ratio indicates that the rock is not acid generating, which supports Polaris’ objectives of socially and environmentally responsible operations. Other testing includes 30-element ICP testing and petrographic analysis, both of which confirmed that the material tested did not contain any deleterious elements. The Company plans to undertake additional material testing to confirm suitability of the Black Bear material for use in construction concurrently with partnership consultations, permitting, and studies in support of mineral resource estimation.
Ken Palko, President and CEO, commented: “We are very pleased by the results of testing completed to date, which indicates that the rock from Black Bear should be competent, clean, and suitable for our intended markets, and we will provide additional details upon completion of the initial technical report on the project later this year. The project represents an attractive opportunity for Polaris to augment the products provided from the Orca Quarry, and we look forward to sharing future developments on the Project with our First Nations partners, local stakeholders and investors.”
About Polaris Materials Corporation:
Polaris Materials Corporation is engaged in the development and operation of construction aggregate quarries in Canada to supply distribution facilities in the United States through coastal shipping. The Company's active construction aggregate interests consist of its Orca Sand and Gravel Quarry in British Columbia and two associated receiving terminals in Richmond and Long Beach, California. The Company also owns the Black Bear Project located in close proximity to the Orca Quarry, and a controlling interest in the Eagle Rock Quarry Project, located on the south coast of Vancouver Island.
For further information, please contact:
Nicholas Van Dyk
Vice President, Investor Relations and Corporate Development
Polaris Materials Corporation
Tel: (604) 915-5000 Ext. 111
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information appear in this document and include estimates, forecasts, information and statements as to management's expectations with respect to, among other things, further results from exploration activities on the Black Bear Project, resource estimates at the Black Bear Project, the future financial or operating performance of the Company, including increases in gross margins, increases in sales volumes (including in the Long Beach market), shipments and selling prices, costs of production, capital and operating expenditures, requirements for additional capital, government regulation of quarrying operations, environmental risks, reclamation expenses, and title disputes, the Canadian dollar compared to the US dollar, increases in Californian construction activity and US infrastructure funding, statements regarding potential new customers and the development of Black Bear. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's continuous disclosure documents which are filed with Canadian regulators on SEDAR (www.sedar.com), including under the heading “Risks and Uncertainties” in the Company’s Annual Report and under the heading “Risk Factors” in the Company’s Annual Information Form. Such factors include, amongst others, the effects of general economic conditions, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures, mineral resource and reserve estimates and the timing and development of the Black Bear project. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise, except as required by applicable law. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.